Results as at 31 December 2020: the most difficult year, but with several positive certainties

PRESS RELEASE

RESULTS AS AT 31 DECEMBER 2020: THE MOST DIFFICULT YEAR, BUT WITH SEVERAL POSITIVE CERTAINTIES

•  The appeal of IGD's format confirmed: in the periods when the restrictions were eased the average ticket rose + 17%, retailers' sales +0.3% better than in 20191

•  Rent collection at around 91% of net turnover in Italy and around 94% in Romania

•  Financial occupancy maintained at high levels: Italy 94.3%; Romania 93.6%

•  Net rental income: €109.5 million (-19.8%); FFO: €59.3 million (-28.8%). Both reflect the net direct impact of Covid-19 for €18.5 million in rent abatements of around 1.7 months' rent, expensed entirely in the year

•  Cash on hand at the end of the reporting period of around €117 million, in addition to €60 million in committed credit lines and about €151 in uncommitted lines

•  EPRA NAV and NRV at €10.38 p.s. (-8.9%)

•  With a view to reinforcing the financial structure and the investment grade profile, and as no mandatory dividend payment is required given the loss recorded in the year, the BoD has proposed that shareholders not approve distribution of a dividend for 2020;

•  Mandate granted to CBRE, a premiere international advisor, for the disposal of a portfolio of stand-alone hypermarkets/supermarkets for approximately €185 million

•  Corporate Sustainability Report Approved

Bologna, 25 February 2021. Today, in a meeting chaired by Elio Gasperoni, the Board of Directors of IGD - Immobiliare Grande Distribuzione SIIQ S.p.A. ("IGD" or the "Company") examined and approved the draft separate and consolidated financial statements at 31 December 2020.

Message from the Chief Executive Officer, Claudio Albertini

"2020 was undoubtedly the most difficult year in the Group' s history, with the severe repercussions of the pandemic weighing on the retail sector and, consequently, on property companies like ours.

We did not, however, remain inert in the face of the situation. To the contrary, we worked on all fronts with more determination than ever. To the extent that the law and the protection of health and safety allowed, all of our shopping centers were maintained operational. The centers were confirmed as points of reference for the communities served and demonstrated great resilience, as well as the ability to react quickly, in the months when the restrictions were eased. We worked on timely and extensive commercial initiatives with the tenants, providing support which made it possible to maintain high occupancy and rent collection. We also wanted to maintain a financial structure consistent with the investment grade profile, protecting cash flow and safeguarding the resources needed to cover financial needs in 2021. Toward this end, we

1 Figures refer to the period August - October 2020

began working on the disposal of a portfolio of stand-alone hypermarkets and supermarkets which would provide the Company with the financial resources to significantly reduce the LTV. The difficult decision to not distribute a dividend this year is in line with the same reasoning, fully aware that this is an unforeseen choice and that as soon conditions allow, IGD will resume providing its shareholders with the same attractive and sustainable remuneration it has provided in the past".

OPERATING PERFORMANCE: THE VALID POSITIONING OF IGD'S PORTFOLIO CONFIRMED

Italy

In 2020 IGD's performance was severely impacted by the various restrictive measures adopted by the Italian government, which are still in effect, in response to the Covid-19 crisis.

The Group's shopping centers recorded positive performances in the first two months of the year (retailers' sales were up 2.0% at the end of February) but, as the epidemic spread, operations were limited considerably and only stores selling "essential" goods (such as, for example, food products, pharmaceutical and parapharmaceutical items, etc.) were allowed to stay open in the period 12 March - 18 May (a total of 66 days of limitations and closures were recorded).

In the months from June to October there was a gradually easing of the restrictions and a return to almost full operation (though all the social distancing and sanitization measures used in the shopping centers were maintained and organized events and many leisure activities were still not allowed): in this period, the shopping centers showed strong signs of recovery with the retailers' sales back in positive territory. The shopper turnout was more cautious but characterized by a greater propensity to consume and a decided increase in the average ticket (+17%).

These dynamics confirm that consumers are still focused on shopping centers and highlight a significant capacity to move quickly once stores could open and foot traffic was allowed. The validity of IGD's format was also confirmed: medium sized assets, dominant in their catchment areas, experienced as the ideal place for safe, practical and convenient shopping. IGD

outperformed the market thanks mainly to a portfolio comprised of urban centers, with an attractive food anchor, capable of offering a complete range of goods and services under one roof which allows for ample choice while optimizing time.

In the wake, however, of the new surge in infections, beginning on 6 November the government enacted new restrictions which called for, among other things, the closure of all shopping centers on weekends and on holidays (for a total of 21 days in November and December) with the exception solely of "essential" categories which were allowed to operate. These restrictions, along with the limits on movement between cities placed periodically based on changes in infection rates, had a significant impact on the performance of our centers at a time of year that is usually very positive for shopping.

In light of the above, in 2020 the sales recorded by mall retailers were down by around 28% compared to the prior year, which was, however, better than the market average (Source: CNCC); conversely, despite the inevitable repercussions of the restrictive measures implemented (such as, for example, the closure of non-food areas and the limits on movement described above), sales at the Group's freehold hypermarkets and supermarkets were down only slightly against 2019 (-2.8%).

At the start of the pandemic the Company implemented a series of initiatives consistent with its sustainability policies, beginning with the protection and safety of visitors, shopping center employees and its own employees. As for the mall retailers, one of the categories hit the hardest by this crisis, the Company spoke directly with the tenants in order todetermine the best way to provide support during the periods of mandatory closures and compensate for the loss in sales (also taking into account the relief mechanisms implemented by the Italian government).

The tenant negotiations relative to the first lockdown are currently almost completed and the negotiations relative to the November-December restrictions are beginning now.

No changes to existing leases were made as a result of the negotiations (with rare exceptions), while, depending on the specifics of each case, payments were reformulated during the year, lease expirations were extended and temporary discounts were granted.

These measures produced tangible and encouraging results.

The occupancy of the Italian portfolio was maintained at a high level (94.3%), albeit lower than the 96.9% reported at 31 December 2019.

Excellent results were also achieved in terms of rent collection which reached more than 91%2 at 31

December, net of the discounts granted.

Normal pre-letting continued at the same time as these negotiations which, despite the difficult context, was effective and brought good results: 101 leases (55 renewals and 46 attributable to turnover) were signed in the year at largely stable rents (-0.38%).

IGD's portfolio, with a couple of exceptions, was not subject to large retailer bankruptcies. Overall, only 5 tenants began bankruptcy proceedings.

There was, however, a considerable difference in the performances depending on the category of merchandise.

The demand for home comfort improvement solutions was high, as well as for consumer electronics and personal care products. At the moment restaurants, entertainment and clothing/footwear, however, continue to be penalized noticeably.

Romania

In Romania the government measures adopted also limited the operation of the Winmartk malls: between March and May only stores selling merchandise considered essential (food products, pharmaceuticals, veterinarian products...) were allowed to operate. In the summer the restrictions were then eased, but restaurants and entertainment businesses are still subject to local restrictions based on changes in the infection rates.

All of this affected the operating performance of the Winmarkt shopping centers: occupancy reached 93.6% which, while still excellent, is lower than the 97.6% recorded year-end 2019 including as a result of the exit of a tenant with an extensive store footprint/with multiple points of sale.

With regard to management of the lockdown, IGD opted to grant temporary discounts to the retailers during the two months of mandatory closures; the support provided facilitated rent collection. At 31 December, therefore, rent collection for FY 2020 amounted to more than 94% of the turnover. Normal pre-letting continued during the year and 370 leases were signed (290 renewals and 80 attributable to turnover) at largely stable rents (-0.47%).

2 Calculated based on rents payable net of the temporary discounts and abatements.

FINANCIAL-ECONOMIC RESULTS: THE PANDEMIC IMPACTS THE YEAR'S PERFORMANCE In 2020 rental income amounted to €150.0 million, a decrease of -3.4%, explained by:

•  for around -€0.8 million, lower revenue not like-for-like;

•  for around -€4.0 million, lower revenue like-for-like in Italy. The decrease is attributable entirely to malls due above all to the drop in variable and temporary revenue linked to the lockdown period and the subsequent restrictions; hypermarkets were up slightly;

•  for around -€0.5 million, lower revenue like-for-like in Romania due to lower variable revenue and the exit of a tenant with an extensive store footprint/with multiple points of sale.

Net rental income amounted to €109.5 million, down -19.8% against the same period of the prior year, due above

all to the one-off direct impact of Covid-19 (which will not impact subsequent reporting periods) amounting to €18.5 million (including discounts and credit losses, net the savings on rents payable) or approximately 1.7 months in rent abatements.

Core business Ebitda fell 20.6% to €99.4 million, with the margin at 65.4%. The freehold core business Ebitda margin (relative to freehold properties) came to 65.3%.

Financial charges amounted to €36.2 million; this figure, net of the accounting impact of the last bond issue completed in November 2019 and excluding the negative carry of roughly €3.8 million (linked to the refinancing of future maturities),

was 4.7% lower than at 31 December 2019.

Funds from Operations (FFO) amounted to €59.3 million, down with respect to 31 December 2019 (-28.8%), including the one-off provisions made for Covid-19.

ASSET MANAGEMENT AND PROJECTS

Given the difficult environment, during the year IGD deemed it opportune to postpone or cancel a few capex and investments, resulting in a reduction in the budgeted cash-out of circa €40 million.

This decision was made in order to limit the pandemic's impact on cash flow and maintain a solid and balanced financial structure.

The restyling of the Porto Grande (San Benedetto del Tronto) and La Favorita (Mantua) shopping centers was, therefore, postponed. Work on these two projects, along with the restyling and remodeling of the hypermarket at the Casilino Shopping Center (Rome), will resume in 2021 and should be completed the following year.

Work on Porta a Mare in Livorno and the development of the Officine Storiche section was also suspended, but resumed in the second half of 2020 and currently is expected to be completed by the end of first half 2022.

DISPOSALS

Consistent with the strategic objective to maintain an investment grade portfolio IGD has granted CBRE, a premiere international advisor, a mandate for the disposal of a portfolio of stand-alone hypermarkets and supermarkets for approximately €185 million.