France - Cofinimmo

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Transcript France - Cofinimmo

Finance Avenue- Cofinimmo 22 octobre 2011 Together in real estate

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Cofinimmo in a nutshell

Leading Belgian listed real estate investment company exposed to the office property market in Brussels, nursing homes in Belgium and France and pub properties in Belgium and the Netherlands Total portfolio fair value of >€3 billion SICAFI status in Belgium and SIIC status in France Internal real estate management platform with 110 employees Two longest shareholders (<5%) are Dexia Insurance and Allianz Belgium Included in major indices: BEL20, EPRA Europe, GPR 250 Total market capitalisation at 30.06.2011: €1.5 billion 2

Highly experienced senior management team

Serge Fautré, CEO since 2002, is Director of the Union Professionnelle du Secteur Immobilier (‘UPSI’) and former Chairman of the European Public Real Estate Association (‘EPRA’).

Jean-Edouard Carbonnelle, CFO, has joined Cofinimmo in 1998 and is Chairman of the EPRA Tax Committee.

Xavier Denis, COO, has joined Cofinimmo in 2002 and is in charge of the real estate operations of the company. He is the Chairman of the Investors Committee of UPSI.

Françoise Roels, Secretary General and Group Counsel, joined Cofinimmo in 2004 and is in charge of corporate governance matters. She is an independent Board member of “Women on Board”.

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Track record in the Belgian property market for >25 years

Listed on Brussels Stock Exchange Internalisation of property management platform Expansion into the nursing home segment Establishment in France in the healthcare sector 1983 1994 1996 1999 2000–2001 2005 2007 2008

2010-2011

Established with €6M capital SICAFI status adopted Primaedis SA acquisition of office portfolio Partnership with AB InBev regarding pub portfolio Reinforcement of the position of leading investment company in nursing homes on the European continent 4

Investment strategy

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Key operational indicators

Portfolio of investment properties - Fair value (x €1,000,000) Residual lease term in years -

Total

portfolio (years) Residual lease term in years -

Office

portfolio (years) Occupancy rate -

Total

portfolio (%) Occupancy rate -

Office

portfolio (%) 30.06.2011

3,157.6

11.4

6.3

95.20

91.66

31.12.2010

3,041.9

11.5

6.7

95.77

92.85

112,2 Acquisitions (€142.0 million) 29,9 Disposals (€41.1 million) Constructions/renovations (€20.4 million) Offices Nursing homes 4,2 0,3 Offices Nursing homes Pubstone 0,6 3,4 36,6

Realised gain on disposal of buildings: €5.0 million, i.e. €0.33 per share 6

12,4 4 Offices Nursing homes Pubstone Other

Global portfolio – Portfolio spread

Portfolio mix by segment 30.06.2011

Portfolio mix by country 30.06.2011

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Long term quality leases

Lease maturity by property type (years) 30.06.2011

Public sector contribution: 18% of total revenues 30.06.2011

Activity sector (305 clients) AB InBev Group Belgian public sector Korian Armonea Int’l public sector Top 5 clients Others

Total

Contractual revenues (% of total) 13.2% 11.4% 8.7% 6.4% 6.1% 45.8% 54.2%

100.0%

Lease length until first break (years) 19.3

13.3

8.4

22.9

6.3

14.5

8.8

11.4

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Cofinimmo’s role in healthcare real estate

Each party does what it does best: Cofinimmo builds/finances/maintains the facility, the healthcare operator provides care and accommodation Expand major experience of complex office management to other sectors in need for multifaceted expertise Diversify within segment: by country, social security system, operation type, operator, location Long-term partnership: Cofinimmo signs long-term leases and can commit to carry maintenance (structure of buildings, HVAC, equipment, …) Support the operators’ growth: finance, develop and build extensions to the existing buildings, carry out renovations, reposition existing facilities Contribution to sustainable development in this particular segment 9

Cofinimmo Healthcare Portfolio characteristics

117 nursing homes/clinics with 12,284 beds in Belgium and France Long-term contractual relationships • 27 years in Belgium • 12 years in France Fixed rents from operator indexed annually No risk relating to the management of the care homes Mostly triple net leases or limited maintenance obligation Credit risk on operator group, not on individual unit In-house Project Management Department specialised in this segment 10

Cofinimmo Healthcare Portfolio mix

Well-spread portfolio managed by first-rate operators 30.06.2011

30.06.2011

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Cofinimmo Healthcare Portfolio mix

Cofinimmo operators-partners Belgium

Armonea

• • • • • • Armonea (4,500 residents) is a joint venture of 2 family-owned companies with more than 30 years of experience in the nursing home sector.

Calidus

Calidus is an initiative of several independent nursing home operators, aimed to centralize and share support services.

Médibelge

Médibelge (1,800 residents) is a private nursing home operator owned for 49% by Orpéa.

Senior Assist

Senior Assist (2,500 residents) is an entrepreneurial group.

Senior Living Group

Senior Living Group (3,750 residents) was created in 2004 by Waterland Private Equity.

Le Noble Age

Belgian subsidiary (507 residents) of Le Noble Age, a French listed operator (5,107 beds) France

Orpéa

• • • Orpéa is the largest player in senior care in continental Europe, and is listed on the Paris Stock Exchange. The company manages a network of 33,000 beds.

Korian

Korian is the second largest nursing home operator in continental Europe, with over 21,400 beds. The company is also listed on the Paris Stock Exchange.

Medica Group

Medica Group is the fourth largest nursing home operator in France and is listed on the Paris Stock Exchange. The company manages a network of 14,300 beds.

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Key Features of the Healthcare sector

Healthcare segment Demographic trends (Example: Belgium) o Increase in life expectancy: 2007=83 ( ♀ ) and 77 ( ♂ ) – 2060=91 ( ♀ ) and 83 ( ♂ ) o Faster rise in numbers of 60+ and 80+ aged persons; growth perspective for 2050: +60% and 150% respectively o Dependency comes at later age o Increasing dependency rate (% of total population) due to aging but also disintegration of the family unit Elderly care needs Demographic trends (Example: Belgium) Elderly care needs 13

Source: Ageing Working Group/European Commission

Demand Potential in Healthcare sector

Focus on Belgium, Demand potential 280% 260% 240% 220% 200% 180% 160% 140% 120% 100% 80%

Projections for capacity needs in Residential Care

total population growth growth population over 80 forecast capacity needs by Bureau du Plan forecast capacity needs by FOD Economie 2007 2020 2040 2060 Needed capacity in 2050: • Bureau du Plan: + 180.000 beds • FOD Economie: + 74.000 beds Compensating factors : • Healthy life expectancy (+0.3 years per year 95 01) • Policies towards elderly and healthcare spending • Consumption patterns of elderly 14

Obligations and recommendations for Nursing Homes

Nursing homes – obligations (BE) Accommodation o Minimal room surface depending on Region o Additional equipment & services (living areas, sanitary, comfort, …) regulated by Region o Single/double room ratio to be respected Staffing o Depending on degree of care: 0.3-0.4 Full Time Equivalent (FTE)/resident Fire security o Federal rules regarding fire safety of all buildings o Regional rules by Health Care Administrations for nursing homes and service flats o Project approval and operational inspection by local Fire Department Building permits & environmental regulations o Building permits to be delivered by local Administration o Environmental permit to be delivered by the municipality (classified installations) , mostly limited validity in time o Soil pollution: certification of soil condition at acquisition of land or building Energy Performance of Buildings (EPB)-prescriptions o Regional specifications in accordance with EU Directive o Currently limited to insulation performances for nursing houses o Minimal energy performance for service flats o European tendency versus energy neutral buildings in 2020 15

Obligations and recommendations for Nursing Homes

Nursing homes – recommendations Building program o 20-30 beds per floor = efficient care unit o Minimum 80-120 beds per nursing home o Organisation in living groups leading to horizontal facilities o Tendency towards mainly single bedrooms (# of double bedrooms limited by regional prescriptions) o Tendency towards homes with mixture of nursing homes & service flats, possible extended with day centre or home care services 16

Recent Acquisitions in Nursing Homes

Belgium France De Nieuwe Seigneurie, Rumbeke – 3,460m² – 75 beds – €7.4 million 5 EHPAD, 1 SSR – 21,653m² – 475 beds – €44.5 million Saint-Charles, Bouillon – Le Chenoy, Ottignies – Le Grand Cerf, Spa – 9,300m² – 238 beds – €10.3 million Bethanie, Namur – Ten Prins, Brussels – Le Progrès, La Louvière – Paloke, Brussels – De Nootelaer, Keerbergen – 25,764m² – 592 beds – €47.0 million 17

Recent Transformation

Bellevue, Brussels: Transformation of 2 office buildings into a nursing home with 143 rooms 2 buildings: 3,056m² and 4,597m² Mission Cofinimmo: full Project Management Construction of a 1,000m² underground parking lot with 35 places Creation of a garden in between the 2 buildings on top of the parking Cost of works: €9,500,000 Delivery in January 2010 18

Recent New Construction

Weverbos, Gentbrugge: Construction of a new nursing home for 100 residents Total surface superstructure: 5,387m² Mission Cofinimmo: full Project Management & Development Optimisation of the operator’s project; construction next to the existing nursing home (instead of on top of it) Negotiation of the urban regulations & building program Cost of works: €12,900,000 Delivery in June 2011

D u r i n g A f t e r

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Conclusion

Cofinimmo - Investment Rationale in Healthcare Sector Significant potential due to demographic trends Strict authorisation and accreditation system of lessees/operators constitute a high entry barrier Revenues of the operators guaranteed by Social Security: 50% in Belgium and up to 30% in France Attractive residual value and redevelopment potential Some units are post-acute care or psychiatric facilities Cofinimmo is European leader in the nursing homes real estate market 20

Disclaimer:

This presentation is directed to financial analysts and institutional investors and is not to be considered as an incentive to invest or as an offer to acquire Cofinimmo shares. The information herein is extracted from Cofinimmo annual and half-yearly reports and press releases but does not reproduce the whole content of these documents. Only the French annual and half-yearly reports and press releases form legal evidence.

Together in real estate

For more information contact: Valérie Kibieta Tel.: +32 2 373 60 36 [email protected]

www.cofinimmo.com

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