Atrium European Real Estate - SUSTAINABILITY …ATRIUM EUROPEAN REAL ESTATE’S SECOND SUSTAINABILITY REPORT. AS A LEADING OWNER AND MANAGER OF SHOPPING CENTRES THROUGHOUT CENTRAL

SUSTAINABILITY REPORT 2017

LEADER IN

SHOPPING CENTRES

IN CENTRAL EUROPE

IT MATTERS

WE’RE PLEASED TO PRESENT YOU WITH

ATRIUM EUROPEAN REAL ESTATE’S SECOND

SUSTAINABILITY REPORT. AS A LEADING

OWNER AND MANAGER OF SHOPPING

CENTRES THROUGHOUT CENTRAL EUROPE,

WE TAKE A LONG-TERM APPROACH TO OUR

OPERATIONS. FROM SUSTAINABILITY TO

EFFICIENCY AND FROM PLANNING SOCIAL

ACTIVITIES TO INVESTING IN THE LOCAL

COMMUNITIES.

05 ATRIUM AT A GLANCE 06 SUSTAINABILITY STRATEGY09 OUR CUSTOMERS15 OUR PLACES 25 OUR PEOPLE

Dear reader, I am very pleased to inform you that since our first sustainability report we have been making good progress in further implementing our sustainability strategy and meeting our stated commitments. Our second edition, this 2017 Sustainability Report, reflects the efforts that we have made in enhancing the environmental, social and governance features that our strategy is built on. Our marketing teams have since gained more insight into customers’ needs by utilising dedicated customer surveys. With that feedback in mind, we have organised several community events throughout 2018, and have provided high-quality shopping destinations, as well as spaces that contribute positively to society. Also, our focus on active technical management is clearly paying off. Resource consumption and the amount of waste at our assets is reducing. With state-of-the-art extensions and renovations completed or underway, we not only address the needs of our centres’ customers and tenants, we also ensure that our properties respect and are built to international green building certifications, which is a true demonstration of the sustainable qualities of our portfolio. Atrium’s ongoing investment into sustainability has not gone unnoticed. Our hard work and ambition has been recognised with an EPRA Silver award and the GRESB green star and we are determined to continue to improve our sustainability efforts and high performance in this important arena. I am confident that our second sustainability report will provide you with further transparency about our ongoing commitment to responsible investing and the positive actions we continue to take.

“OUR BUSINESS AND SUSTAINABILITY STRATEGIES HELP US DEVELOP AND MANAGE SUSTAINABLE SHOPPING CENTRES THAT ATTRACT CUSTOMERS AND PROVIDE A VALUABLE MEETING PLACE IN LOCAL COMMUNITIES.”

3 | SUSTAINABILITY REPORT 2017

MESSAGE FROM THE CEO

Liad BarzilaiCEO

4 | SUSTAINABILITY REPORT 2017 5 | SUSTAINABILITY REPORT 2017

ATRIUM AT A GLANCE

OUR CUSTOMERS

Atrium customers understand that we go out of our way for them. We care about their needs and continue to engage with them on many levels.

OUR PLACES

For us, it’s about owning, operating and developing shopping centres that offer the most sustainable performance, with minimal environmental impact.

OUR PEOPLE

We continue to take pride in our talented and diverse workforce! It’s our aim to support and develop our people, to help take them as far as their talents will allow.

STANDING INVESTMENTS1 OCCUPANCY2

Standing investments EPRA occupancy

€2,639m €2,631m €2,683m €2,591m

96.8% 96.6% 96.7% 97.4%

2017 2016 2015 2014

MARKET VALUE PER COUNTRY

Poland

Czech Republic

Slovakia

Russia

Romania

Hungary

57.7%

2.1%3.3%

11.0%

6.3%

19.6%

MV€2.6BN

A LEADING OWNER AND MANAGER OF FOOD, FASHION AND ENTERTAINMENT ANCHORED SHOPPING CENTRES IN CENTRAL EUROPE.

The Atrium brand We delight in seeing the Atrium brand become synonymous with quality for both consumers and retailers. To keep our “retail is detail” approach intact, we drive organic growth by employing proactive, hands-on asset management.

A noteworthy yearAtrium is the proud owner of a €2.6bn portfolio of 46 shopping centres, having produced €198.7m of rental income in 2017. Most of these shopping centres are located in Poland and the Czech Republic.

Revitalised performanceIn 2017 we focused on improving the quality and sustainability of our portfolio through selective asset rotation and by bolstering our focus on redevelopments and extensions. We were successful in this and gave outstanding operational and financial performances.

Vision & strategyWe aim to remain one of the leading owners and managers of locally dominant food, fashion and entertainment shopping centres. That is why we bring the Atrium brand to the best urban locations within Central Europe, to be the benchmark of high quality retail for consumers as well as retailers. The main points of our strategy focus on:• Give our customers the ultimate shopping

experience in convenient and exciting locations.

• Lead the market as an owner, manager and re-developer of food and fashion anchored shopping centres in Central Europe.

• Maintain long-term relationships with our tenants and optimise our tenant mix.

• Maximise long-term shareholder value by improving our operating performance and delivering solid, sustainable financial results.

Awards and recognitionAt Atrium we have strengthened both our sustainability strategy and our commitment to improving our reporting standards and transparency. Consequently, the industry has acknowledged us in the form of two awards: a silver EPRA Sustainability award for our sustainability reporting; and “Green Star” status by the Global Real Estate Sustainability Benchmark (GRESB). Again, we participated

successfully in this global benchmark and were listed as one of the industry leaders.

Atrium’s sustainability policyThrough it all, our sustainability vision remains clear: “to lead central and eastern Europe in creating sustainable value through our customers, our places and our people.”

At the end of the day, the ultimate accountability for policy implementation lies with the Board of Directors, while responsibility for governance and implementation lies with the Sustainability Committee.

1 Including a 75% stake in assets held in Joint Ventures and €58,4 million (representing 5 assets in Hungary and 1 asset in Czech Republic classified as held for sale as at 31 december 2017)

2 The Occupancy rate, shown above, is defined as 100% less EPRA vacancy


SUSTAINABILITY STRATEGY

WE BASED OUR ATRIUM SUSTAINABILITY ROADMAP ON A THOROUGH MATERIALITY ASSESSMENT. THE VERY CORE OF OUR SUSTAINABILITY STRATEGY AND LONG-TERM COMMITMENTS.

We last performed a materiality assessment in 2014 to reach a broader understanding of our stakeholders and priorities, and to assess our sustainability risks. Not just one or two groups, but all our stakeholders: customers, tenants, investors, management and employees. This feedback helped us to sharpen our focus and meet stakeholders’ expectations. From that 2014 assessment, we could publish the Atrium sustainability policy in 2015 and set up the Sustainability Committee. 2017 marked the roll out of our sustainability programme, which included: monitoring our environmental and social performance; communicating our first sustainability report; setting realistic yet ambitious value-added targets to reduce operational costs and minimise the impact of our operations; getting a better understanding of our customers; and creating a working environment that stimulates going above and beyond.

Our sustainability strategyOur sustainability vision stands on three pillars: Our Customers, Our Places, Our People. We use these pillars to guide us as we decrease our environmental impact and increase our social and economic impact. Simultaneously, we roll out our sustainability programme across our operations – actions that are aligned with our business strategy and that lead to long-term value creation.

We’re committed fully to transparency surrounding our environmental, social and governance performance. We understand how to both enhance the shopping centre experience and keep our operational costs low. How? By standardising our processes and internal polices, and through sharing best practices.

"AT ATRIUM WE ARE COMMITTED TO ENRICHING OUR GOVERNANCE, OPERATIONS AND PORTFOLIO. FURTHERMORE, WE HAVE CLEAR OBJECTIVES IN PLACE TO IMPROVE OUR SUSTAINABILITY PERFORMANCE."

Sustainability governanceAt the corporate level our Atrium sustainability committee defines the strategy, sets long term targets and monitors our company-wide environmental and social performance. Senior Management and various departments are represented in this committee (asset management, operations, HR and compliance), sending a clear message about Atrium’s commitment to actively manage the sustainability agenda.


WHAT OUR CUSTOMERS WANT AND NEED DRIVES OUR BUSINESS AND SHAPES OUR STRATEGIC DECISIONS. UNDERSTANDING AND ENGAGING WITH OUR CUSTOMERS IS CRUCIAL TO OUR BUSINESS.

OUR CUSTOMERS

AMBITIONS• Grow partnerships with retailers• Optimise customer experience and satisfaction• Connect, inform and delight customers and tenants

with our communication via social media• Engage pro-actively with the local communities

ACTIONS• Undertake customer satisfaction surveys• Perform detailed catchment area analysis• Optimise of tenant mix and customer experience

COMMITMENTS 2017 – 2020

Improve customer experience: undertake a customer satisfaction survey for 80% of our portfolio based on market value by 2018

Connect with our customers: launch a shopping centre app to connect Atrium’s customers with retailers in 2017

Create more social impact: Organise at least one local community event within our assets for at least 90% of our portfolio market value by 2018

IT MATTERS

achieved / ongoing target in progress


COOPERATING WITH KEY TENANTS IS VITAL TO OUR BUSINESS. WE ARE NOT JUST ABOUT REAL ESTATE; WE WORK TOGETHER WITH OUR TENANTS TO CREATE SUSTAINABLE, FUTURE-PROOF PROPERTIES.

Partnerships with tenantsTenants in today’s markets are focused on incorporating a multi-channel approach in their stores. And location is key. Atrium creates partnerships to better understand our tenants’ strategies and give their placement within our centres sufficient coverage and exposure to grow.

Our revised and more focussed portfolio includes larger and dominant shopping centres that can better serve our key tenants. This attracts top retailers to us, and their presence brings a broader range of customers to the other tenants in our shopping centres.

Understanding our customers’ needsOur customers’ increasing level of sophistication and the ever-changing technology landscape shapes the meaning of our “retail is detail” approach. Our customer's challenges us to excel, and we endeavour to meet their expectations. The Atrium marketing team carried out a customer satisfaction survey throughout 2017, across 20 of our large shopping centres. Over 15,000 customers were interviewed, providing valuable information about their shopping behaviour, needs and key information. The outcomes of the survey helped our teams to: tailor their events, marketing and promotions; improve the quality and services they provide; and boost the customer

experience. See the following pages for more detailed information about the survey outcomes.

Meeting tenant and customer expectationsDuring renovations and extensions of our shopping centres, we incorporate both the feedback of our customers and tenants and the changes in local demographics into the design. This helps our centres to stay at the heart of the local community and to be resilient throughout the coming years. We work together with our tenants and customers to ensure that future socio-economic and demographic changes are addressed and that Atrium stays in front of these changes. This helps us to anticipate any changes and adapt the properties as needed.

A recent survey we conducted revealed that our customers more and more look at our centres as a destination to spend their leisure time, besides buying groceries and clothes in a clean, accessible and pleasant environment. Visitors enjoy having a relaxing and quiet place to sit and rest, meet up with friends, enjoy a nice meal or see a movie. At Atrium we take these improvements and recommendations to heart and implement them during renovations and extensions.

Our local marketing teams work together and share insights with shopping centre managers and tenants, and the local teams bring that information back to the Group Head of Marketing to coordinate further. Best practices are then shared across all the Group’s marketing teams, making way for digitalisation within our marketing strategy.

Improving engagement and footfallRecent successful initiatives include an increased focus and presence on social media, mobile apps and new services. Our marketing teams have also organised fun events to entice more visitors to come to our shopping centres.

For example, we put up an outdoor rooftop cinema at one of our centres. We have hosted fashion shows, set up a loyalty programme that grants frequent visitors special offers and we always remember our littlest visitors: during construction, shopping centre Promenada created a large, child-friendly activity wall, and one centre organised a Sport Day for children who stayed at home during the winter break.

Not merely resting on our laurels, we introduced the ShopFun app pilot programme in 2017 in selected shopping centres. An all-round success with over 7,000 initial users, everyone can now install our app on their mobile phone. Thanks to free WiFi in all our shopping centres, app users can receive store suggestions or push notifications. Our tenants are promoted, and shopping has become a game.

Being part of the communityWe care about local issues and contribute positively to society by positioning Atrium shopping centres at the heart of the community. Take, for example, craft and farmers’ markets, supporting charities and fundraising initiatives like collecting money towards medical equipment for the Children’s Hospital. In 2017 we organised or hosted over 120 events in

our Polish shopping centres. Because almost all our shopping centres hosted a community event in 2017, the 80% SC target was met.

Another activity was the “Open Wardrobe”: a six-day event we put together specifically for Atrium Poland. The idea behind this event was to combine traffic, CSR and tenant cooperation goals with charity. During Open Wardrobe, customers traded their old clothes for a well-filled goodie bag; the clothes we collected went to local charity organisations. In the final days, Małgorzata Rozenek, a well-known Polish television presenter, came to discuss fashion tips and trends. A big success!


“ATRIUM SHOPPING CENTRE MANAGEMENT TEAMS GO ABOVE AND BEYOND TO CREATE THE BEST SHOPPING EXPERIENCE FOR OUR VISITORS.”

SOCIO-ECONOMIC PERFORMANCE MEASURES

Young living with parents

18-25 years

26-35 years

36-45 years

46-55 years

56-70 years

Single DINKS Families with kids Adults 46+

FREQUENCY OF VISITS

24%

35%

5%

28%

18%

16%

39%

11%

14%

9%

55% FEMALE

45%MALE 48% 35% 22% 3% 2% 1%

CAR PUBLICTRANSPORT

ON-FOOT BIKE MOTORBIKE OTHER

On a daily basis

2-3 times a week

Once a week

2-3 times a month

Once a month

Once in every few months

Once a half-year or less

It’s my first time here

Up to 10 minutes

11-20 minutes

21-30 minutes

31-40 minutes

41-60 minutes

From 1 hour to 1.5 hour

1.5-2 hours

Over 2 hours

TRANSPORT MODE – HOW TO GET TO ATRIUM SHOPPING CENTRES?

31% 28% 20% 18% 15% 14% 12%To shop in

hypermarket/supermarket/

DIY

To buy clothing/footwear

To visit particular stores/

brands

Because of the food offer (restaurant,

quick service restaurant, fast

food)

Window shopping, to fit on

products

To meet friends To spend time, rest, read

periodicals, surf the web, drink

coffee

TOP REASONS TO VISIT ATRIUM SHOPPING CENTRES

1 It’s nice and well kept, clean, nice smell

2 It’s easy to get there

3 It is well planned and easy to navigate

4 It has a pleasant atmosphere

5 The signage is well organized

1 Cloakroom

2 New brands, not available in other centres

3 Place with internet access and sockets

4 Convenient zones to hang out, meet friends

5 Free playground for children, with babysitters

TOP 5GENERAL POSITIVE FEEDBACK OF OUR CUSTOMERS

TOP 5WHAT NEW FACILITIES WOULD CUSTOMERS LIKE TO SEE?

SHOPPING BAG SIZES

36%SMALL

20%MEDIUM

21%BIG

24%BIGGEST

TIME SPEND IN OUR

CENTRES


A CUSTOMER SATISFACTION SURVEY WAS CARRIED OUT IN 2017, PROVIDING VALUABLE INFORMATION ABOUT THEIR SHOPPING BEHAVIOUR.

27%

4%2%

12%

11%12%

17%

17%

16%23% 16%

5%

9%

17%

2% 9%


AMBITIONS• Actively monitor and reduce energy and water

consumption and waste• Certify every major new development and extension• Provide safe and healthy spaces for customers

and tenants• Reduce environmental footprint

ACTIONS• Data collection and target setting• Increased external transparency through

our sustainability reporting• BREEAM certifications obtained• Sustainable procurement policy in place


REDUCE ENVIRONMENTAL IMPACT Aim to optimise energy and carbon intensity by 10% between 2016 and 2020, on a like-for-like basis

DEVELOP SUSTAINABLE ASSETS Achieve BREEAM certification or local equivalent for all new large-scale developments and extensions

FIND OPPORTUNITIES TO MINIMISE COSTS Organise night walks within our assets accounting for at least 50% of our portfolio market value by 2019

IT MATTERS

ATRIUM PROVIDES SAFE, RESILIENT SHOPPING CENTRE SPACES FOR RETAILERS TO SELL THEIR GOODS AND SERVICES. WE ENDEAVOUR TO RUN OUR PROPERTIES EFFICIENTLY THROUGH INNOVATION, KNOWLEDGE SHARING AND THE EMPLOYMENT OF SUSTAINABLE DESIGN CRITERIA.

OUR PLACES



AS A RESPONSIBLE REAL ESTATE OWNER, OPERATOR AND DEVELOPER, WE TAKE A PROACTIVE STANCE TOWARDS REDUCING OUR IMPACT ON THE ENVIRONMENT.

Environmental ManagementLocal technical managers, the head of technical management and third parties collaborate to both reduce the impact on the environment and lower operational costs for our tenants. We constantly monitor energy, carbon, water and waste figures and have set ambitious long-term targets to minimise our environmental footprint:• reduce energy and carbons by 10% between

2016-2020• reduce water intensity by 10% between 2015-

2020• stimulate on-site recycling• organise night walks to identify improvements• roll out green leases

Atrium has implemented an efficient Environmental Management System (EMS) in line with ISO 14001 guidelines. Our technical managers share their best practices during quarterly meetings. Furthermore, asset-specific action plans have been put into play to ensure maintenance and technical equipment improvement. This also helps to keep tenant working environments safe and healthy and assure clean and safe places for our customers to visit.

Energy consumption and climate changeActive monitoring of electricity is done via smart meters for all major properties. This enables management to analyse and benchmark performance. Through night walks, specific attention is paid to energy being consumed outside operating hours, and any issues are identified and followed up. Tenants are informed about their consumption when issues are noticed by the technical managers.

Actions taken by Atrium include but are not limited to: implementing foil on sky lights to reduce the heat coming inside (reduce cooling via air conditioning), cleaning of ventilations for improved operation and efficeincy, reducing cooling at night (turn down the heat at night), upgrading Building Management Systems, installing smart meters, etc.

Managing our energy consumption not only provides financial benefits. Atrium knows its shopping centres contribute to climate change. This is why we remain committed to reducing our carbon emissions, through minimising the energy we consume and optimising how we consume electricity and gas on site.

Water consumption We have limited control over the total water usage of the shopping centres, since tenants consume the majority of water on site. However, we incorporate water efficiency measures in our redevelopment programme; for example, dual flush toilets, landscaping that does not require a lot of water and actively monitoring the water consumed for all our standing investments, to more quickly identify abnormal consumption and leakages.

Waste managementOn-site waste management is another priority for Atrium. Visitors put their trash in waste bins throughout our shopping centres and smaller tenants use the general technical areas to sort their waste. We have seen clear improvements in our current waste management procedures and have introduced more waste separation possibilities on site. We also collaborate with tenants to effectively sort waste, which reduces overall future costs.

"WE EXPECT OUR PROPERTIES TO BE CLEAN, SAFE AND PROTECTED PLACES FOR TENANTS AND VISITORS TO USE AND ENJOY"

Building certificationsIn the coming years, we expect all our centres currently under development or refurbishment to receive BREEAM certifications. BREEAM is an internationally recognised and respected standard of assessing and rating building sustainability performance. We have an underlining commitment to certify all redevelopments and extensions. It is this commitment that will further enable Atrium to develop innovative and sustainable properties that are resilient, efficient and will meet the requirements of tenants and visitors in the future. For more information read the following pages about our extensions and redevelopments that are currently undergoing the BREEAM certification.

Issues that are addressed during the BREEAM building certification process include, biodiversity at and around the property, the use of sustainable building materials, eco-efficient retro-fits, pollution prevention and transportation. We integrate sustainability into every aspect of our building designs; for example, providing natural daylight to optimise indoor environments, and creating more attractive spaces that show our attention to detail and dedication to a healthy environment.

Atrium Flora in Prague was granted an Excellent score on its BREEAM certificate in 2014. Atrium Felicity and Atrium Copernicus (an extension project) have also received BREEAM certification.

Responsible supply chainOur valued suppliers contribute to the daily success of our business by facilitating an optimal shopping experience. Atrium is committed to the highest standards of sustainability, business integrity and legal compliance, and we look for suppliers who reflect the same.

In 2015 Atrium implemented a Corporate Social Responsibility Charter, detailing the strategy we use for our operations, new development projects and collaboration. This charter helps us to maintain environmental and social balance and clarifies the high standards we expect from our business partners. We monitor our suppliers and their employees regularly for ESG compliance and to ensure they respect business ethics, human rights and environmental best practices, and to ensure safe shopping environments are created even during technical works or cleaning.

We expect our properties to be clean, safe and protected places for tenants and visitors to use and enjoy. Our suppliers utilise high efficiency cleaning machines that use less water and non-harmful products. All guards must have first responder training, and all our shopping centres are equipped with defibrillators. If an animal is found within our premises, such as a bird, it is removed by our suppliers, alive and unharmed.


SUSTAINABLE AND INNOVATIVE DESIGNATRIUM IS COMMITTED TO OPERATING SUSTAINABLE SHOPPING CENTRES FOR THE FUTURE.

KEY FACTS• 49,600 sqm extension • Total GLA after extension: over 90,000 sqm• 21% energy reduction at its final stage• Up to 65% expected reduction in water consumption • Completion expected in 2021

SUSTAINABLE ASSET• Use of construction materials with low

environmental impact• Leak detection on building’s main water supply• Waste sorted in five groups to stimulate recycling• Using perlators in water taps• New modern parking control system combined with

a 'find my car' application• LED lighting installation to eliminate the use of

fluorescent lamps and to reduce energy consumption• Avoiding external light pollution by using a Building

Management System that controls external lighting • Linking Internal light sensors to a Building

Management System to reduce energy consumption• Revolving doors to reduce heat during winter• Thermal levels are designed to maintain comfort for

occupants within the building whilst conserving energy.• Upgraded thermal insulation around existing facade

to reduce the loss of heat• Installation of gas and oil separators to minimize

watercourse pollution

SUSTAINABLE ASSET• New modern parking control system combined with

a 'find my car' application• Next development stage will include BREAAM

certification

ATRIUM TARGOWEK EXTENSION, WARSAW

The centre has been extended over different stages. New brands will open in the fourth quarter 2018. The extension will increase the number and size of anchor tenants and refurbish the mall area within the existing scheme.

KEY FACTS• First-stage redevelopment began in Q3 of 2017• 5,700 sqm of new GLA • 2,700 sqm cinema ready by Q4 2018• Modern 1,700 sqm fitness centre ready by Q4 2018 • Updated hallways and corridors to public toilets • New event area• Overall redevelopment to be completed in 2019

ATRIUM REDUTA REDEVELOPMENT, WARSAW

The first stage of redevelopment works in Atrium Reduta started in the third quarter of 2017. The overall redevelopment project is currently planned to add 5,700 sqm of new GLA to the centre, which will include a 2,700 sqm cinema and a modern 1,700 sqm fitness centre, all of which are expected to be completed and opened in the fourth quarter of 2018.

SUSTAINABLE ASSET• Durable materials used• Ecologist-recommended land improvements to

impact long-term biodiversity• Water monitoring and leak prevention• Water-efficient irrigation systems • Using perlators in water taps• LED lighting zoning installed • Avoiding external light pollution by using a Building

Management System that controls external lighting• Installation of gas and oil separators to minimize

watercourse pollution • Revolving doors to reduce internal heat loss• Fresh drinking water to be provided to customers

to reduce single use of plastic• New cycle racks exceeding BREEAM recommendations• High percentage of construction waste recycled to

reduce waste

ABOUT THE EXTENSION

ATRIUM PROMENADA REDEVELOPMENT, WARSAW BREEAM Very Good

Our major extension and modernisation of the Atrium Promenada started in 2015 and is expected to be completed in 2021. The first stores with their new and desirable brands opened in 2016. Additional brands will open their doors during 2018.Many new customer amenities will be included in this property to keep up with the changing needs of Warsaw residents and the evolving requirements of retailers and consumers.

Expected BREEAM Very Good


ENERGY CONSUMPTION MWH X1,000

-3.1% Reduction of energy consumption for common areas on a like-for-like basis

GREENHOUSE GAS EMISSIONSTONNES CO2e IN 2017

SCOPE 1 SCOPE 2 SCOPE 3

2,542 74,158 86,845

GREEN BUILDING CERTIFICATIONS IN PLACE OR BUILDINGS UNDERGOING CERTIFICATION PROCESS Name asset Country Certificate descriptionCERT-Tot: Type and number of sustainably certified assets in 2017

Atrium Flora Czech Republic BREEAM in Use - ExcellentFelicity Poland BREEAM in Use - ExcellentCopernicus Poland BREEAM - Very GoodPromenada Poland BREEAM - Very GoodTargowek Poland BREEAM - Expected Very GoodBiala Poland BREEAM - Expected Very Good

Coverage: 26% of managed shopping centes are (to be) certified with BREEAM (based on GLA)

6 assets

HEALTH & SAFETY AND COMMUNITY ENGAGEMENT % of GAV % of GLAH&S-asset: Asset health and safety assessments 100% 100%H&S-Comp: Asset health and safety compliance 88.5% 87.5%Comty-Eng: Community engagement, impact assessments and development programmes 100% 100%

These performance indicators represents 92% of properties under management (GAV) equivalent to 85% of total GLACommunity engagement programmes refer to local stakeholder engagement activities that have been rolled out in 2017.

2016 2016

2017 2017

137.5 1017

137.7 870

110.4 660

106.9 665

Absolute consumption

Like-for-like performance

Absolute consumption

Like-for-like performance

WATER CONSUMPTION M3 X1,000

On a like-for-like basis, water consumption increased with 0.8% in 2016-2017

WASTE MANAGEMENTDISPOSAL ROUTES IN 2017

ENVIRONMENTAL PERFORMANCE MEASURES

AT ATRIUM, WE’RE COMMITTED TO PROVIDING FULL TRANSPARENCY ON OUR ENVIRONMENTAL AND SOCIAL PERFORMANCE. ENVIRONMENTAL PERFORMANCE INDICATORS ARE ALIGNED WITH THE EPRA BEST PRACTICES GUIDELINES ON SUSTAINABILITY REPORTING.

IT MATTERS

Recycling

Landfill

Incineration

Composting

Other disposal route

62.4%

5.7%

3.2%17.4%

11.5%


ENVIRONMENTAL PERFORMANCE INDICATORS ABSOLUTE LIKE FOR LIKE

POLAND CZECH REPUBLIC & SLOVAKIA ROMANIA RUSSIA TOTAL % 2016-

2017EPRA SUSTAINABILITY PERFORMANCE MEASURES EPRA INDICATOR UNITS 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017Electricity consumption for common areas Elec-Abs / Elec-LfL MWh 100,393 99,803 28,064 26,796 17,689 17,372 2026 1,687 32,138 31,311 79,917 77,165 -3.4%Electricity exclusively sub-metered to tenants Elec-Abs / Elec-LfL 122,472 116,693 30,374 28,373 10,874 9,336 5,510 6,127 55,607 53,895 102,366 97,730 -4.5%Total electricity consumption Elec-Abs / Elec-LfL 222,865 216,495 58,439 55,169 28,563 26,708 7,536 7,813 87,745 85,206 182,283 174,895 -4.1%District heating and cooling for common areas DH&C-Abs / DH&C-LfL 23,800 25,525 8,869 8,408 4,238 4,411 0 0 4,018 4,608 17,126 17,427 1.8%District heating and cooling sub-metered to tenants DH&C-Abs / DH&C-LfL 44,682 43,956 3,533 3,784 3,452 3,835 0 0 30,122 29,358 37,107 36,977 -0.3%Total district heating and cooling 68,481 69,481 12,402 12,192 7,690 8,246 0 0 34,140 33,966 54,232 54,405 0.3%Fuels consumed in common areas Fuels-Abs /Fuels-LfL 13,367 12,403 1,949 2,574 150 146 1,558 716 9,710 8,940 13,367 12,376 -7.4%Fuels exclusively sub-metered to tenants Fuels-Abs /Fuels-LfL 8,478 9,135 439 492 530 545 294 1,076 7,215 7,022 8,478 9,135 7.8%Total fuel consumption 21,845 21,538 2,388 3,066 680 691 1,852 1,792 16,925 15,962 21,845 21,511 -1.5%Total energy consumption from all sources 313,192 307,515 73,229 70,426 36,933 35,645 9,388 9,606 138,811 135,134 258,360 250,811 -2.9%Total direct GHG emissions GHG Protocol Scope 1 GHG-Dir-Abs Tonnes CO2e 2,739 2,542 399 528 31 30 319 147 1,990 1,832 2,739 2,536 -7.4%Total indirect GHG emissions GHG Protocol Scope 2 GHG-Indir-Abs 74,216 74,158 23,833 22,742 11,209 10,779 1,011 842 21,403 21,003 57,456 55,365 -3.6%Total indirect GHG emissions GHG Protocol Scope 3 GHG-Indir-Abs 90,928 86,845 24,575 23,077 6,850 5,997 2,810 3,278 43,513 42,214 77,747 74,566 -4.1%Total direct and indirect GHG emissions 167,884 163,544 48,807 46,346 18,089 16,806 4,140 4,266 66,906 65,049 137,943 132,468 -4.0%Water consumption for common areas Water-Abs / Water-LfL m3 582,428 400,232 137,733 124,418 94,080 66,748 12,602 24,640 67,610 61,663 312,025 277,469 -11.1%Water consumption exclusively sub-metered to tenants Water-Abs / Water-LfL 435,329 470,263 104,746 113,074 30,604 77,648 37,033 20,543 175,757 176,383 348,139 387,649 11.3%Total water consumption Water-Abs / Water-LfL 1,017,757 870,495 242,478 237,492 124,684 144,396 49,635 45,183 243,367 238,046 660,164 665,117 0.8%Total weight of waste Waste-Abs /Waste-LfL Tonnes 11,701 11,168 2,825 2,735 2,278 2,568 1,485 953 3,659 3,242 10,247 9,498 -7.3%Disposal route Waste-Abs /Waste-LfLRecycled Proportion

by weight (%)18.1% 17.4% 36.2% 25.2% 23.2% 24.2% 7.5% 12.5% 2.0% 2.0% 17.0% 15.7%

Landfill facility 64.8% 62.4% 52.2% 59.9% 40.0% 39.2% 92.5% 87.3% 97.0% 97.0% 71.3% 69.7%Incineration 9.1% 11.5% 0.0% 0.0% 18.9% 19.6% 0.0% 2.0% 0.0% 0.0% 4.2% 5.5%Composting/ anaerobic digestion facility 2.6% 3.2% 1.6% 2.2% 9.9% 10.1% 0.0% 0.0% 1.0% 1.0% 3.0% 3.7%Other disposal route 5.5% 5.7% 10.0% 12.7% 8.0% 6.9% 0.0% 0.0% 0.6% 0.0% 4.7% 5.5%

ENVIRONMENTAL INTENSITY INDICATORS ABSOLUTE LIKE FOR LIKE

POLAND CZECH REPUBLIC & SLOVAKIA ROMANIA RUSSIA TOTAL % 2016-

2017EPRA SUSTAINABILITY PERFORMANCE MEASURES EPRA INDICATOR UNITS 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017Building energy intensity Energy-Int kWh/m2/year 381.2 374.2 275.3 264.8 407.2 393.0 165.9 169.7 575.7 560.5 394.8 383.3 -2.9%

Energy-Int kWh/visitor/year 2.59 2.60 2.07 1.98 0.41 0.39 1.42 1.46 3.46 3.52 2.27 2.24 -1.6%Greenhouse gas intensity from building energy GHG-Int kgCO2e/m2/year 204.3 199.0 183.5 174.2 199.4 185.3 73.1 75.4 277.5 269.8 210.8 202.4 -4.0%

GHG-Int kgCO2e/visitor/year 1.39 1.38 1.38 1.30 0.57 0.53 0.63 0.65 1.67 1.69 1.21 1.18 -2.7%Building water intensity Water-Int m3/m2/year 1.24 1.06 0.91 0.89 1.37 1.59 0.88 0.80 1.01 0.99 1.01 1.02 0.8%

Water-Int liter/visitor/year 8.43 7.35 6.86 6.67 3.96 4.60 7.50 6.86 6.07 6.19 5.81 5.94 2.1%

The information in the tables above points to the fiscal years 2016 and 2017. Data is reported using the EPRA Sustainability Best Practices guidelines. The absolute data coverage disclosed for energy, carbon emissions, water and waste for 2016 through 2017 represents 85% of the Gross Lettable Area (GLA) or 92% of the Gross Asset Value (GAV). The absolute data for energy, GHG emissions, water and waste, represents 21 out of 21 shopping centres: nine in Poland, seven in Russia, three in the Czech Republic, one in Slovakia and one in Romania.

Four assets are excluded from the like-for-like figures. In one case Atrium was not the full owner for 24 months within the reporting period; in the other, significant (re)developments took place that influenced the performance of the property. Actual like-for-like figures include 17 out of 17 Atrium shopping centres.

On a like-for-like basis, Atrium has reduced it's energy consumption with 2.2% in 2016-2017. Water consumption increased with 0.8% on a like-for-like basis and the total amount of waste collected, decreased with 7.3% in the same reporting period.

Intensity figures recognise the numerator as the landlord-obtained consumption for common areas in the shopping centres and sub-metered tenant consumption. GLA makes up the denominator. As proposed by the EPRA Sustainability Best Practices guidelines, Atrium acknowledges that the intensity figures may be affected due to a mismatch between numerator and denominator. Going forward, Atrium will fine-tune intensity figures by measuring more accurately the surface area for which resources are consumed within the shopping centre.

QUALIFYING NOTES

Atrium reports data which has been purchased and used onsite for common areas or for tenant areas where sub meters are available. When separate meters are in place for tenants, consumption is provided separately in the tables above. Consumption of gas, district heating and cooling can be used for larger sections of the shopping centre. Energy consumption of local offices are includes in the data mentioned in the tables above under common areas.

Emissions factors are based on International Energy Agency data. Different emissions apply, depending on the shopping centre’s location. Scope one emissions refer to onsite natural gas consumption; scope two emissions, to landlord purchased and consumed energy, heating and cooling for common areas; and scope three emissions, to consumption that is purchased by Atrium and sub metered to tenants.


INTRODUCTIONXXXXX XXXXXXXX

LEADER IN SHOPPING CENTRES IN CENTRAL

AMBITIONS• Provide rewarding professional opportunities for

our employees• Create a strong corporate culture based on our

Atrium core values• Embed sound governance and high professional

standards• Enhance internal communication

ACTIONS• HR policies updated and rolled out• More training, development and internal events

to share best practices• Improve internal communications via intranet

and internal newsletter


SOUND GOVERNANCEEnsure everyone receives training on the code of conduct by 2019

STRENGTHEN CORE VALUESOrganise a workshop on Atrium’s core values for 100% of employees by 2019

CREATE AN INSPIRING PLACE TO WORKOrganise an employee engagement survey by 2019

IT MATTERS

WE DEVELOP AND ENGAGE EMPLOYEES WHO ARE PROUD TO WORK FOR US AND WHO EMBRACE THE ATRIUM VALUES. IT’S OUR PEOPLE WHO GIVE US THE COMPETITIVE ADVANTAGE. AT THE END OF THE DAY, THE BEST RESULTS COME FROM THOSE COLLEAGUES WHO ARE TALENTED AND ENGAGED. ATRIUM PROVIDES A SAFE, FAIR, RESPECTFUL AND FUN WORKING ENVIRONMENT.

OUR PEOPLE



HR developmentsFollowing the transformation of our portfolio, with a stronger focus on our Polish and Czech properties, we restructured our headquarters. Multiple teams were moved from Amsterdam to Warsaw, meaning that certain departments/employees had to exit Atrium. From there the teams were re-structured and new talents were hired in Poland. In December 2017 we had 394 employees working at Atrium, of which 65% were female workers.

New offices Our Czech, Warsaw and Amsterdam employees moved to new offices. When it came to the workspace designs, a high level of attention was given to creating a sustainable working environment. This included LED lighting, energy efficient climate systems and decreased paper use.

Employee policiesSeveral company-wide HR policies have been put in place, including a recruitment and selection process, a succession planning and talent identification process and a training and development policy that allows employees to develop themselves personally and professionally. In addition we implemented a Health and Safety policy, consisting of emergency evacuation plans, trained emergency response officers and clear instructions on how to deal with absence through illness. Our overall illness percentage for 2017 was 1.38% and no work-related injuries were reported. At Atrium we respect and follow national and international labour laws diligently.

Training and developmentWe believe that continuous learning and development, sharing of best practices and on-the-job experience keeps our employees motivated, engaged and future-ready.

In 2017 Atrium once again organised the Centre Management meeting in Warsaw,- gathering all the Atrium centre managers and operational staff. The topics focussed on: trends in the retail market and what to expect; an improved understanding of our tenants; and operational topics important for the company. To learn more about tenant expectations, we invited some tenants to come explain their brand, what they expect from the market and from landlords like us, what is important for them in collaboration and how they develop their brands and store concepts. The operational topics helped to prepare us when dealing with assets, guidelines, presentations and the sharing of best practices to establish a benchmark.

E-learning platform: The e-learning platform, which will become operational mid-2018, will be used to offer other future online training and development programmes, such as IT security training and health and safety training. All employees will have access to this e-learning platform.

Keeping an eye on performancePerformance Management at Atrium consists of an annual performance evaluation between manager and employee. Together they look at and discuss past results, personal performance and future targets, along with what might be needed to achieve future targets. In 2017 87% of employees participated in a performance review.

"ONE OF THE CORE VALUES OF ATRIUM IS TEAM WORK. WORKING TOGETHER AS A TEAM REQUIRES RELATIONSHIP BUILDING AND ENGAGING WITH EACH OTHER"

Employee engagement One of the core values of Atrium is Team Work. Working together as a team requires relationship building and engaging with each other. In 2017 a number of team events have taken place in all our offices. We have also introduced a volunteer day for all employees, which will debut later in 2018. Following the changes in 2017 with many employees entering and leaving our organisation, and the changes of the different offices, we will undertake an employee survey in 2019. People will have adjusted

to their new surroundings by then and we can use adequate data to further engage/manage one of our most important assets: our employees.

Sound governance: Compliance policiesOur business is built on trust and transparency. Atrium’s code of conduct, code of business conduct and ethics, and the whistle-blower procedure contain essential guidelines and rules on how Atrium wants to do business and how all employees should act with each other and with all our stakeholders.

All new employees will receive the related documents when joining the company, followed by an individual Code of Conduct training that covers the key points. All policies are available on our website and through AtriumNet, our intranet. Each year all employees are reminded to comply with these important policies.

Each employee and executive is encouraged to report any (suspected) breaches or violations. A secure external email address is available for these reporting purposes. Reports will be handled in accordance with the applicable data protection and other regulations. In 2017 no fraud, bribery or other breaches or violations were reported at Atrium.


SOCIAL AND GOVERNANCE PERFORMANCE MEASURES

We have a diverse workforce and are committed to rewarding people based on their merits, skills and contribution, regardless of nationality, gender, race, age, religion or sexual orientation. The information on these pages has been collected by local country

HR representatives and summed up by the corporate team. Social and governance performance indicators are aligned with the EPRA Best Practices guidelines on sustainability reporting.

<1 yr

1-5 yrs

5-10 yrs

> 10 yrs

< 25

25-34

35-44

45-54

55-64

Poland

Czech Republic

Slovakia

Russia

Romania

Hungary

Amsterdam / Jersey

EMPLOYEES PER REGION

NUMBER OF EMPLOYEES BY GENDER

NUMBER OF EMPLOYEES YEARS IN COMPANY

NUMBER OF EMPLOYEES BY AGE

0 100 200 300 400 500

2017

2016

2015131

21

243

33 5/1

136

33

13

58

137

69 38

2631

258

75

20

90

8/7

262

130 130

Female

Male

EMPLOYEE GENDER DIVERSITY (DIVERSITY-EMP) 2016 2017Headcount 399 394FTE's (full time equivalent) 397 391Male employees 137 136Female employees 262 258Indefinite contract 348 344Definite contract 52 51Percentage of female managers 57% 49%

NEW HIRES AND TURNOVER IN 2017 (EMP-TURNOVER) Male Female TotalTotal number of employees that left the company 22 40 62Total number of employees that joined the company 14 26 40Turnover percentage 16% 15% 16%

EMPLOYEE HEALTH AND SAFETY IN 2017 (H&S-EMP) Male Female TotalTotal number of illness/absence days (working days) 440 765 1205Illness percentage (absentee rate) 1.35% 1.39% 1.38%Number of work related injuries (injury rate) - - -Number of fatalities - - -

GOVERNANCE PERFORMANCE MEASURES Location Composition of the highest governance body (Gov-Board) View the 2017 corporate

governance report (page 2-7)Process for nominating and selecting the highest governance body (Gov-Selec)

View the 2017 corporate governance report (page 2-7)

Process for managing conflicts of interest (Gov-Col) View the memorandum (page 25) available on our corporate website

EMPLOYEE TRAINING AND DEVELOPMENT (EMP-TRAINING) 2016 2017Total number of training hours 3,008 1,764Average training hours per employee 7.69 4.47Total amount (in EUR) spent on training 138,114 81,000

EMPLOYEE PERFORMANCE APPRAISALS (EMP-DEV) 2016 2017% of employees that have received a performance evaluation 84.8% 87%

GENDER PAY RATIO (DIVERSITY-PAY) Female as % of male base salary in 2017Administrative and support staff 1.38Development team 0.99Finance team (controlling and accounting) 0.90Operations 0.92Senior management 0.93

7%

45%

11%

29%

3%

2%

3%

Atrium Group Services B.V.World Trade CenterI tower, 6th floorStrawinskylaan 1959 1077 XX AmsterdamThe Netherlands

[email protected]

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DISCLAIMER

This document has been prepared by Atrium (the “Company”). This document is not to be reproduced nor distributed, in whole or in part, by any person other than the Company. The Company takes no responsibility for the use of these materials by any person.

The information contained in this document has not been subject to independent verification and no representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Company, its shareholders, its advisors or representatives nor any other person shall have any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection with this document.

This document does not constitute an offer to sell or an invitation or solicitation of an offer to subscribe for or purchase any securities, and this shall not form the basis for or be used for any such offer or invitation or other contract or engagement in any jurisdiction.

This document includes statements that are, or may be deemed to be, “forward looking statements”. These forward looking statements can be identified by the use of forward looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” or, in each case their negative or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include statements regarding the intentions, beliefs or current expectations of the Company. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward looking statements are not guarantees of future performance. You should assume that the information appearing in this document is up to date only as of the date of this document. The business, financial condition, results of operations and prospects of the Company may change. Except as required by law, the Company do not undertake any obligation to update any forward looking statements, even though the situation of the Company may change in the future.

All of the information presented in this document, and particularly the forward looking statements, are qualified by these cautionary statements. You should read this document and the documents available for inspection completely and with the understanding that actual future results of the Company may be materially different from what the Company expects.

This presentation has been presented in € and €m’s. Certain totals and change movements are impacted by the effect of rounding.

mailto:[email protected]

http://www.aere.com

Documents

Atrium European Real Estate - SUSTAINABILITY …ATRIUM EUROPEAN REAL ESTATE’S SECOND SUSTAINABILITY REPORT. AS A LEADING OWNER AND MANAGER OF SHOPPING CENTRES THROUGHOUT CENTRAL