2009 Half-Year Results3 August 2009

2

John Nelson, Chairman

3

Agenda

Introduction – John Richards

Financial Results – Simon Melliss

France – Christophe Clamageran

UK – David Atkins

Summary and Conclusion – John Richards

4

Results30 June 2009 30 June 2008

30 June 2009 31 Dec 2008

Adjusted profit before tax £65.6m

11.0p

£3.73

Adjusted earnings per share

Adjusted NAV per share

Interim dividend per share 6.95p

81%Gearing

£60.5m

13.8p(1)

£5.16(2)

12.60p

118%

Notes:

1) Restated for rights issue.

2) Pro forma following the rights issue.

5

Half-Year Highlights

Financial position significantly strengthened

Robust income with growth potential

Overhead costs reduced

Encouraging letting progress in a tough market

Development pipeline progressing

6

Financial ResultsSimon Melliss, Finance Director

7

Net rental income 156.4 145.8

Six months to 30 June 2009 2008

Properties owned throughout 121.3 121.4

Acquisitions 0.9 0.7

Developments 12.4 0.7

Properties sold 21.8 30.8

Exchange translation and other - (7.8)

Net Rental Income

£ million

8

EPRA basis As previouslyreported

Vacancy Rates

5.3

2.6

6.2

6.9

4.6

2.2

6.4

5.3

31 December 2008

7.4

2.2

20.4

6.4

30 June 2009%

UK Offices

French Retail

Total

UK Retail

9

Adjusted profit before tax 65.6 60.5

Loss before tax (818.5) (417.1)

Adjustments:

Revaluations 766.2 462.6

Loss on disposals 103.3 2.1

Other exceptional items 14.6 12.9

Income Statement

£ million

Adjusted earnings per share 11.0p 13.8p(1)

Interim dividend per share 6.95p 12.60pNote:

Restated for rights issue.

Six months to 30 June 2009 2008

10

Shareholders’ equity 2,547 2,821

30 June 2009 31 Dec 2008

Property assets 4,717 6,457

Net debt (2,061) (3,333)

Other net liabilities (48) (195)

Sub-total 2,608 2,929

Deferred tax (61) (108)

Balance Sheet

£ million

Note:

1) Pro forma adjusted for the rights issue.

Adjusted net asset value per share £3.73 £5.16(1)

Gearing 81% 118%

11

30 June 2009 2,598 3.73

31 December 2008(2) 3,591 5.16

Revaluation (765) (1.09)

Disposals (125) (0.18)

Retained profit 61 0.09

Dividends (44) (0.06)

Exchange and other movements (120) (0.19)

NAV AnalysisShareholders’ funds(1)

(£ million)Adjusted NAV(1)

(£ per share)

Notes:

1) Excluding deferred tax and fair value of derivatives, calculated in accordance with EPRA best practice.

2) Equity shareholders’ funds and adjusted NAV per share at 31 December 2008 are the pro forma figures after taking account of the rights issue.

12

Capital Return

ContributionCapital Return

UK Offices

French Retail Parks

French Offices

UK Retail Parks

UK Shopping Centres

French Shopping Centres

-25 -20 -15 -10 -5 0

Total Group (14.1%)

%

0 5 10 15 20 25 30 35 40

%

13

Investment Portfolio Yields

7.7% +0.8%

7.5% +1.1%

5.7% +0.6%

6.0% +0.5%

France

5.8% +0.6%7.9% +0.8%

Shopping Centres 7.8% +0.8%

Retail Parks

Offices

UK

8.4% +0.9%

Total

Note:

True equivalent yields at 30 June 2009 and the change compared to 31 December 2008.

14

Financing

Net debt £2.1 billion

Gearing 81%

Cash and undrawn committed facilities of £906 million

97% of gross debt unsecured

Only £60 million borrowings mature before end 2011

Weighted average maturity of debt eight years

15

0

100

200

300

400

500

600

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028

Bank debt drawn Euro bonds Sterling bonds

Debt Maturity Profile

£ million

£253 million repaid since 30 June 2009

16

Sound Financial Position

7.6 times

2.0 times

81%

30 June 2009

12.9 times

1.7 times

118%

31 December 2008

Gearing

Net debt/EBITDA

Interest cover

3%

97%

Secured Unsecured

69%

31%

Euro Sterling

31%

69%

Bank debt Bonds

Total gross debt £2.3 billion

17

Summary

Sound balance sheet

Virtually all borrowings unsecured

No significant refinancing requirements before 2012

Substantial unutilised committed facilities

18

FranceChristophe Clamageran, Managing Director France

19

France: Yields and Finance Costs

Source: IPD, PMA, CBRE

The shaded areas show the range of average spreads over successive five year periods between 1998 and 2008

%Spread between all-property initial yield and ten-year government debt

%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1998 2003 2008

Spread between all-property initial yield and five-year swaps

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1998 2003 2008

20

French Yield Outlook

Low level of transactions in 2009

Paris office yields increased significantly

Shopping centre yields increased, but more resilient

%

Market ForecastsActual

Source: IPD, PMA, CBRE

The shaded area shows the range of five year average yields between 1993 and 2008

Long-term equivalent yields

Range

5.0

5.5

6.0

6.5

7.0

7.5

8.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

21

-10%

-5%

-

+5%

+10%

1995 1997 1999 2001 2003 2005 2007 2009

-300

-200

-100

-

100

200

1989 1994 1999 2004 2009

French Environment

Household consumption

6%

7%

8%

9%

10%

11%

12%

1982 1987 1992 1997 2002 2007

Unemployment rate Consumer confidence index

Source : INSEESource : INSEESource : INSEE

22

French Retail Market

Concentrated ownership and high barriers to entry

Importance of strong relationship with tenants

Significant geographical concentration

Scarce investment opportunities

Third largest operator in the shopping centre market

Direct management of assets

Concentrated in Île-de-France or in town centres

Identified development opportunities in portfolio

Market Hammerson France

23

Lease structure and key money reduces vacancy risk

Large tenant base implying reduced default risk: about 800 tenants

Over 80% of national brands

Occupancy cost:sales ratio of 11%

Favourable commercial environment

Quality portfolio

Robustness of Cash Flow

80 million visitors a year

Indexation

Restrictive planning environment

24

Increased Retail Rents

97.4m

90.5m

(0.3)m4.2m

10.1m(7.1)m

80

90

100

Terminationsand expiries

New lettings and renewals

IndexationRents passing30 June 2009

Rents passing31 Dec 2007

Other

€ million

Note:

Movement in passing rents compared on a like-for-like basis

25

3.0%

4.0%

5.0%

6.0%

7.0%

2003 2005 2007 06/2009

250

270

290

310

330

350

€ /m²

Vacancy rate Average rent

Office Market Summary

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2003 2004 2005 2006 2007 2008 2009(f)

mill

ion

m²

Take up Supply

Take up and supply in Île-de-France

Prime yield Paris CBD

Rental values and vacancy rate in Île-de-France

Source : Immostat/DTZ Source : CBRESource : Immostat/DTZ/Hammerson

(LHS) (RHS)

3.0%

4.0%

5.0%

6.0%

7.0%

2003 2005 2007 06/2009

Prime Yield Paris CBD

26

Hammerson France Well Positioned

Fundamentals remain favourable

Market with high entry barriers

Hammerson France is well positioned

Very low exposure following disposals

Abrupt market correction

Retail

Offices

27

UKDavid Atkins, Managing Director UK

28

UK: Yields and Finance Costs

The shaded areas show the range of average spreads over successive ten year periods between 1993 and 2008

Source: IPD, PMA, CBRE

% %

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1993 1998 2003 2008

Spread between all-property equivalent yieldsand five-year swaps

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1993 1998 2003 2008

Spread between all-property equivalent yieldsand ten-year gilts

29

Prime UK Yields To Reduce

Improved sentiment, but transaction volumes remain low

Yields stabilising for prime assets

Rental values under pressure

Timing and extent of recovery uncertain

The shaded area shows the range of ten year average yields between 1993 and 2008

Source: IPD, PMA, CBRE

%Market ForecastsActual

Long-term equivalent yields

Range

4.0

5.0

6.0

7.0

8.0

9.0

10.0

1993 1998 2003 2008 2013

30

UK Consumer Environment

-2

-1

0

1

2

3

4

5

2005 2007 2009

Non-food retail sales growth (12 month rollingannual average)

700

800

900

1000

1100

1200

2005 2007 2009

Claimant count unemployment

Retail Sales (%)Unemployment (thousand) Consumer Confidence

Source: Thomson DataStreamSource: Thomson DataStream Source: Thomson DataStream

-40

-30

-20

-10

0

10

2005 2007 2009

Consumer confidence

31

Trading Performance

Footfall and salesOver 160 million visitors per annum

Footfall up 2.9%

Sales down 2.2%

Trading Stronger sectors: young fashion, fashion accessories, gifts and catering

Weaker sectors:department stores, menswear, toys and games

Consolidation of spending

Non-rental incomeCar parking income £3.4 million (+10%)

Commercialisation £1.9 million (+15%)

32

Active Asset Management

Aggressive leasing programme

Targeted marketing and promotions

On-site trading initiatives

Cost and service charge management

Effective credit control

Retail management strategy

33

Modest Reduction in Income

£ million

121.1m124.0m

(1.1)m1.9m

8.6m(12.3)m

100

110

120

130

Terminationsand expiries

New lettingsand renewals

Rent reviews Rents passing30 June 2009

Rents passing31 Dec 2007

Other

Note:

Movements in passing rents compared on a like-for-like basis.

34

Developments

Highcross, Leicestero 89% let o 7% in solicitors’ handso Major new tenants signed: Bestseller, Aldo, Faith,

Boots

Union Square, Aberdeeno 67% let and under offero Major new tenants signed: M&S, Apple, Cult, Republico On programme for Autumn openingo Cost £205 milliono Value £77 million

Cabot Circus, Bristolo 92% leto 2% in solicitors’ handso Major new tenants signed: Hollister, Gant, Disney

35

0

1

2

3

4

5

6

7

2003 2004 2005 2006 2007 2008 2009

(f)

mill

ion

ft²

Take up Completions

3%

4%

5%

6%

7%

8%

2003 2005 2007 06/2009

City West End

0%

5%

10%

15%

20%

2003 2005 2007 06/2009

0

10

20

30

40

50

60

70

£ /ft²

Vacancy rate Headline rent

Office Market Summary

Take up and completionsin City of London

Prime yield City vs. West End

Rental values and vacancy rate in City of London

Source: CBRE Source: PMASource: PMA

36

London Offices

Bishops Square disposal - Joint Venture with Oman Investment Fund

60 Threadneedle Street - 23% let and 44% in solicitors’ hands

125 Old Broad Street - 75% let

St Alphage option agreement signed

37

UK Summary

Regionally dominant shopping centres

Growth from retail park extensions

Focus on income growth

Low vacancy against national averages

Rents remain under pressure

Good letting progress

Retail

Offices

38

Summary and ConclusionJohn Richards, Chief Executive

39

Portfolio Designed to Outperform

Established investment portfolio: £3.8 billion

Recent developments: £0.7 billion

Future developments: £0.2 billion

• Prime, modern portfolio• Active management to drive income• Well positioned to benefit from market recovery

• Aggressive letting programme• Strong recovery potential

• Strong relationships and reputation• Advancing planning and design• Will exploit when appropriate

Investment Comments

40

34%

15%12%

36%

1%2%

UK Shopping Centres UK Retail Parks UK OfficesFrance Retail France Offices Germany

12.9 years

94%

6.7%

£50m

UK Retail Parks

10.1 years

93%

6.2%

£108m

UK Shopping Centres

7.6 years

80%

(14.5%)

£39m

UK Offices

GroupFrench Retail

Principal sectors

2.9%7.0%Reversionary/(over-rented)

93%98%Occupancy rate

8.2 years4.5 yearsAverage unexpired lease term

£301m£97mPassing rent

High Quality Investment Portfolio

41

Contracted Growth from Developments

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013

UK shopping centres UK retail parks France retail UK OfficesNotes: 1) Hammerson’s share of income shown for joint ventures2) The bar chart shows cash rent receivable and not income smoothing under IFRS

£ million

42

Development Pipeline

Substantial pipeline of future opportunities

Planning consent for WestQuay extension achieved

Option agreement signed with Corporation of London for St AlphageHouse redevelopment

Will exploit when appropriate

43

Conclusion

Sound financial position

Prime portfolio with robust income and growth potential

Intensive asset management in a tough market

Prime UK yields stabilising

Well positioned to benefit from anticipated market recovery

44

Questions

45

Change in Net Debt

£ million

£3,333 m(118% gearing)

£2,061 m(81% gearing)

£116 m

£572 m

£584m

0

500

1000

1500

2000

2500

3000

3500Net debt

31 Dec 2008

Disposals andassociated debt

Rights issue proceeds

Other movements

Net debt30 June 2009

46

Top Ten Properties

20.318.8 16.917.115.412.214.811.412.913.3

Passing rent(2)

£m

100%100% 41%60%33%

100%50%

100%50%50%

Ownership

392 348245230210207204198195187

Valuation 30/06/09(1)

£m

O’Parinor, Aulnay-sous-BoisItalie 2, Paris 13èmeBrent Cross, London NW4Highcross, LeicesterBullring, BirminghamEspace St. Quentin, St Quentin-en-YvelinesCabot Circus, BristolLes Trois Fontaines, Cergy PontoiseThe Oracle, ReadingWestQuay, Southampton

Property name

Notes:1) Hammerson’s share of valuation and passing rent shown in respect of joint ventures2) Passing rents are at the end of rent free periods and after deducting head and equity rents

47

Six months to 30 June 2009 2008

Adjusted earnings per share 11.0p 13.8p(1)

Interim dividend per share 6.95p 12.60p

Adjusted Earnings£ million

17.0-Asset impairment

-9.3Share of revaluation losses of property and derivatives in associate

-25.4Loss on sale of subsidiary

60.565.6Adjusted profit before tax

477.6884.1

58.963.3Adjusted earnings

(1.6)(2.3)Current tax and minority interests

(4.1)5.3Change in fair value of derivatives

462.6766.2Revaluation losses on property portfolio

2.177.9Loss on sale of investment properties

Adjustments:

(417.1)(818.5)Loss before tax

Note:1) Restated for rights issue.

48

UK: Retail Lease Expiries

25% of the UK total retail passing rent of £158.0 m expiring before end 2014

£5.8 million reversion on leases expiring before end 2014

0.0

5.0

10.0

15.0

ERV uplift 2.4 1.1 0.3 0.4 0.6 1.0

Passing Rent 7.0 4.5 5.5 5.4 8.6 9.3

2009 2010 2011 2012 2013 2014

£ million

49

France: Retail Lease Expiries

0.0

5.0

10.0

15.0

ERV uplift 1.6 1.0 0.7 0.3 0.3 0.3

Passing Rent 11.4 10.6 10.9 11.6 7.8 7.2

2009 2010 2011 2012 2013 2014

£ million

34% of total France retail passing rent of £96.7m expiring between 2009-2011

£3.3 million reversion on leases expiring before end of 2011

50

Contracted Income

£ million

Note:Figures show Hammerson’s share of the income for joint ventures.

2.92.82.82.62.0-Retail parks - France

9.49.49.18.17.53.9Shopping centres - France

49.248.6

3.9

27.4

5.7

2012

42.247.5

3.8

24.3

3.4

2010

27.739.0

1.1

14.9

2.2

2009

5.911.4

-

1.5

0.5

2008 20132011Rents passing

27.427.1Shopping centres - UK

3.93.9Retail parks - UK

51.348.7

47.848.3

Total – cash flow- accounting basis

7.74.9Offices - UK

51

Disclaimer

This presentation contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking in nature and are subject to risks and uncertainties. Actual future results may differ materially from those expressed in or implied by these statements.

Many of these risks and uncertainties relate to factors that are beyond Hammerson's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors such as the Company's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including inflation and consumer confidence, on a global, regional or national basis.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Hammerson does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials. Information contained in this presentation relating to the Company or its share price, or the yield on its shares, should not be relied upon as a guide to future performance.