Aarsregnskabsmeddelelse%202010_11%20UK

TK Development– preliminary announcement of

financial statements 2010/11

SillebroenFrederikssundDenmark

Content

• 2010/11• Figures• Project news

• Market conditions• New price levels• Project opportunities

• The portfolio• Completion• Book value

• Outlook• 2011/12• Following years

TK Development – preliminary announcement of financial statements 2010/11 . April 2011

2

2010/11 at a glance

• Profit: DKK 73.6 million after tax (DKK 25.4 million in 2009/10).• Equity: DKK 1,866.0 million (DKK 1,593.4 million in 2009/10).• Solvency ratio: 40.4 % (36.4 % in 2009/10).• Total balance: DKK 4,622.0 million (DKK 4,377.3 million in 2009/10).

• Management considers the profit for the year acceptable.

3


Financial highlights and key ratios(DKKm) 2006/07 2007/08 2008/09 2009/10 2010/11

Financial highlights:

Net revenue 2,719.1 2,586.8 1,052.4 1,369.9 576.9

Gross profit/loss 623.9 553.8 375.0 200.5 256.0

Profit/loss from ordinary activities before financing 462.5 386.8 201.7 57.5 127.2

Financing, etc. -126.3 -41.7 -33.4 -17.9 -53.2

Profit/loss before tax 335.7 345.4 168.0 39.4 74.2

Consolidated profit/loss 298.5 271.9 155.2 25.4 73.6

Shareholders’ share of profit/loss for the year 249.4 249.5 155.2 25.4 73.6

Balance sheet total 3,685.8 4,070.9 3,816.1 4,377.3 4,622.0

Total project portfolio 1,491.1 1,998.3 2,541.3 3,253.5 3,424.7

Equity excl. minority interests 1,153.7 1,439.9 1,506.0 1,593.4 1,866.0

Equity 1,290.9 1,533.8 1,506.0 1,593.4 1,866.0

Cash flows from operating activities 1,219.9 142.6 -331.7 -582.8 -182.7

Net interest-bearing debt, end of year 1,125.1 1,094.9 1,509.5 2,178.9 2,170.2

Key ratios:

Return on equity (ROE) 24.3 % 19.2 % 10.5 % 1.6 % 4.3 %

Earnings before interest and tax (EBIT margin) 17.0 % 15.0 % 19.2 % 4.2 % 22.1 %

Solvency ratio (based on equity) 35.0 % 37.7 % 39.5 % 36.4 % 40.4 %

Price / book value 1.8 1.2 0.4 0.5 0.5

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• 25,000 m2 shopping centre• Frederikssund, Denmark• Occupancy rate of 93 %• 3.2 million customers during

the first year

March April

Opening of Sillebroen

Project news 2010/11

5

August October JanuaryDecember


• 10,900 m2 retail park• Uppsala, Sweden• Occupancy rate of 100 %• Handed over to investor in April

Opening of retail park


6

March April August October JanuaryDecember

Start-up of Fashion Arena II


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• Outlet centre in Prague, Czech Rep.• Phase II of 7,000 m2

• In total 25,000 m2

• Overall occupancy rate of 85 %



• 3,500 m2 in Targówek, Warsaw, Poland• Sold on the basis of forward funding• Expected completion mid-2011• 90 % of the remaining premises of 2,100

m2 are sold• The entire project (5,600 m2) is under

construction

Start-up of office building


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• 5,400 m2 property project in Århus, Denmark• Carried out in cooperation with Nordica Real Estate A/S• Nordica owns 80 % of the project company and TK

owns 20 %• TK has sold two completed retail parks of in total

3,900 m2 to the jointly owned project company• The project is under construction

Takeover of project + sale of retail parks


9

TK Development – preliminary announcement of financial statements 2010/11 . April 2011TK Development – preliminary announcement of financial statements 2010/11 . April 2011


Opening of Fashion Arena II


10


• Outlet centre in Prague, Czech Rep.• Phase II of 7,000 m2

• In total 25,000 m2

• Overall occupancy rate of 85 %



• 14,500 m2 retail park• Danderyd, Sweden• Occupancy rate of 100 %• First phase (11 shops = 12,700 m2) handed over to investor in January• Plantagen is to open in spring 2013

Opening of Enebyängen I


11



• Østre Havn area, Aalborg, Denmark• 8,000 m2 residential development rights

sold and handed over to private investor

Residential development rights, Østre Havn


12



• The Group’s Czech investment property• Extension of just under 10,000 m2 in progress• Expected opening in spring 2012• Occupancy rate (extension) of 84 %

Start-up of Hradec Králové, extension


13



0

500

1000

1500

2000

2500

3000

3500

4000

31.01.1131.01.0831.01.07 31.01.1031.01.09

Portfolio, book value Forward fundingDKK million

Book value and forward funding

1,449

1,945

2,541

3,2503,425

590

832943

351284

14


0

500

1000

1500

2000

2500

31.01.1131.01.0931.01.07 31.01.08 31.01.10

Net interest-bearing debtDKK million

31.01.11

Cashflow generatingprojects

Cashflow generating projects at a value of DKK 2.1 billion generate an annual net rent of DKK 146 million (7 % return). In addition, the Group

has investment properties at a value of DKK 359 million.

Net interest-bearing debt

1,094.91,125.1

1,509.5

2,178.9 2,170.22,107.0

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Sweden∙ Private consumption 3.5 % / 3.5 % ∙ GDP 5.5 % / 4.5 %

Denmark∙ Private consumption 1.9 % / 1.8 % ∙ GDP 2.2 % / 1.8 %

Czech Republic∙ Private consumption 1.3 % / 2.4 % ∙ GDP 2.5 % / 3.1 %

Slovakia*∙ Private consumption -0.5 % / 1.5 % ∙ GDP 4.1 % / 3.0 %

Poland∙ Private consumption 3.2 % / 2.6 % ∙ GDP 3.9 % / 3.8 %

Lithuania∙ Private consumption -4.0 % / 3.2 %∙ GDP 1.2 % / 3.0 %

Latvia∙ Private consumption -0.4 % / 3.0 %∙ GDP -0.1 % / 3.0 %

Finland∙ Private consumption 3.0 % / 2.4 % ∙ GDP 3.0 % / 3.0 %

Source: Nordea Bank, Economic Outlook, January 2011*) The European Commission, autumn 2010

Macroeconomic forecast 2010e/2011e

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Price levels back in balance

2006/07 2007/08 2008/09 2009/10 2010/11

Yield

Rent level

Land prices

Construction costs

Low level

High level

High level

High level

Normalprofit

Profitunder pressure

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Customer related

Supplier related


Price levels back in balance

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

Yield

Rent level

Land prices

Construction costs

Low level

High level

High level

High level

Normalprofit

Profitunder pressure

Normalprofit

Prospectively, there is still high profitability

in propertydevelopment.

18

Customer related

Supplier related


There are opportunities in the market

SUPPLIER RELATED

On most of the Group’s markets, prices are

considered to have reached the bottom

LAND AND CONSTRUCTION

CUSTOMER RELATED

Customers show interest in prime-

location projects

TENANTS AND INVESTORS

The market holds project opportunities that will generate a normal profit: Development of projects with a higher anticipated return than most of the existing ongoing projects. The Group is considering specific projects for which it would like to secure the rights at the current price level.

• The economic downturn has caused land and contruction prices to drop

• Prices vary according to location and utilization

• Tenants are focusing increasingly on location• Rent levels in the retail segment are expected

to be stable in the period ahead• There is increasing demand for real property

from investors who continue to attach crucialimportance to quality and location

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Securing new project opportunities

• Securing projects at the present price level to ensure the Group’s long-term earnings potential.

• Securing projects also includes long-term option agreements for the purchase of land.

Selected projects secured at new price levels

Esbjerg, Denmark

Shopping centre28,000 m2

Randers, Denmark

Retail park10,500 m2

Gävle, Sweden


Moravia, Czech Rep.

Outlet centre21,000 m2

Frýdek Místek, Czech Rep.


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Capital increase

• The Group’s financial platform is strengthened.• Total gross proceeds of DKK 210.3 million.• The Group is in a stronger position to seize the project

opportunities in the present market.

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The portfolio in m2

(1,000 m2) 31.01.08 31.01.09 31.01.10 31.01.11

Group

Sold 264 183 146 116

Remaining 948 777 811 817

Total 1,212 960 957 933

TKD Nordeuropa

Sold 83 62 32 8

Remaining 573 479 478 472

Total 656 541 510 480

Euro Mall Holding

Sold 181 121 114 108

Remaining 361 298 333 345

Total 542 419 447 453

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Completion of the portfolioTKD Nordeuropa 2011/12 2012/13 2013/14

Completed

Sillebroen, Frederikssund, Denmark

Premier Outlets Center, Ringsted, Denmark

Retail park, Aabenraa, Denmark

Vasevej, Birkerød, Denmark

Retail park, Kofoten, Kristianstad, Sweden

In progress

Trøjborgvej, Århus, Denmark

Retail park, Mejlstedgade, Brønderslev, Denmark

Amerika Plads, car park, Copenhagen, Denmark

Not initiated

Østre Havn / Stuhrs Brygge, Aalborg, Denmark

Hadsundvej, Aalborg, Denmark

Ejby Industrivej, Copenhagen, Denmark

Retail park, Marsvej, Randers, Denmark

Århus Syd, phase II, Denmark

Retail park Gävle, Gävle, Sweden

Pirkkala Retail Park, phase II, Tammerfors, Finland

Kaarina Retail Park, Turku, Finland

DomusPro Retail Park, Vilnius, Lithuania

Amerika Plads, lot A, Copenhagen, Denmark

Shopping centre, Esbjerg, Denmark

Retail park, Enebyängen, phase II, Danderyd, Sweden

Retail park, Söderhamn, Sweden

In total 299,300 m2, corresponding to 62 % of TKD Nordeuropa’s total

portfolio.

Completed

Expected completion

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Completion of the portfolio

Euro Mall Holding 2011/12 2012/13 2013/14

Completed

Galeria Tarnovia, Tarnów, Poland

Galeria Sandecja, Nowy Sącz, Poland

Fashion Arena, Prague, Czech Rep.

Most Retail Park, phase I, Most, Czech Rep.

In progress

Tivoli Residentail Park (services), Warsaw, Poland

Futurum Hradec Králové, extension, Czech Rep.

Not initiated

Stocznia, Gdansk, Poland

Residential Park, Bielany, Warsaw, Poland

Retail Park, Teplice, Czech Rep.

Most Retail Park, phase II, Most, Czech Rep.

Retail park, Prešov, Slovakia

Prague Airport Ruzyne II, Prague, Czech Rep.

Sterboholy Retail Park, Prague, Czech Rep.

Shopping centre, Frýdek Místek, Czech Rep.

Designer Outlet Village Moravia, phase I, Czech Rep.

In total 267,150 m2, corresponding to 59 % of Euro Mall Holding’s total

portfolio.

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Completed

Expected completion


Occupancy rates

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Sillebroen, Frederikssund, Denmark 92 % 93 %

Premier Outlets Center, Ringsted, Denmark 60 % 61 %

Enebyängen, Danderyd, Sweden 100 % 100 %

Galeria Sandecja, Nowy Sącz, Poland 100 % 98 %

Galeria Tarnovia, Tarnów, Poland 100 % 98 %

Tivoli Residential Park (services), Warsaw, Poland 63 % 96 %

Fashion Arena, Prague, Czech Republic 82 % 85 %

Hradec Králové, extension, Czech Republic 77 % 84 %

H1 10/11 10/11

*

* The percentage covers sold m2.


(DKKm) 31.01.08 31.01.09 31.01.10 31.01.11

Sold

Completed 0 0 0 0

In progress 29 4 2 12

Not initiated 52 41 12 14

Total 81 45 14 26

Remaining

Completed 465 565 1,352 2,107

In progress 186 813 720 149

Not initiated 1,213 1,118 1,164 1,143

Total 1,864 2,496 3,236 3,399

Net project portfolio 1,945 2,541 3,250 3,425

Forward funding 832 943 351 284

Gross project portfolio 2,777 3,484 3,601 3,709

Forward funding in % of gross carrying amount of sold projects

91.1 % 95.4 % 96.2 % 91.6 %

The portfolio (DKK)

26


In progressTivoli Residential Park

Warsaw, Poland

Offices5,600 m2

Not initiatedStocznia

Gdansk, Poland

Mix61,000 m2

Jastrzębie

Jastrzębie, Poland


Projects sold- DKK 26 million (forward funding DKK 284 million)

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Premier Outlets Center

Ringsted, Denmark

Galeria Tarnovia

Tarnów, Poland

Galeria Sandecja

Nowy Sącz, PolandFashion Arena

Prague, Czech RepublicMost Retail Park

Most, Czech Republic

Kristianstad

Kristianstad, SwedenAabenraa

Aabenraa, Denmark


Retail park4,500 m2

Retail park4,200 m2




Retail park6,400 m2

Selected Northern Europe

Selected Central Europe

Sillebroen

Frederikssund, Denmark


Projects completed- DKK 2,107 million

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Amerika Plads

Copenhagen, Denmark

Underground parking32,000 m2

Northern Europe and Central EuropeExtension, Futurum Hradec Králové

Hradec Králové, Czech Republic


Projects in progress- DKK 149 million

Retail park, Mejlstedgade

Brønderslev, Denmark

Retail park2,400 m2

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Mix5,400 m2

Trøjborgvej

Århus, Denmark


Esbjerg

Esbjerg, Denmark

Residential Park, Bielany

Warsaw, PolandBytom Retail Park

Bytom, Poland

Handelskvarteret Kulan

Gothenburg, SwedenAmerika Plads (lot A og C)

Copenhagen, Denmark


Shopping centre/services 45,000 m2

Offices/residential24,800 m2

Residential/services57,300 m2


Selected Northern Europe

Selected Central Europe

Østre Teglgade

Copenhagen, Denmark

Offices/residential32,700 m2

Stuhrs Brygge

Aalborg, Denmark

Mix72,000 m2

Prešov

Prešov, Slovakia

Retail park9,300 m2

Frýdek Místek

Frýdek Místek, Czech Rep.


Teplice

Teplice, Czech Rep.

Retail park7,600 m2

Projects not initiated- DKK 1,143 million

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Results and expectations

(DKKm) 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12e 2012/13e


Net revenue 2,719.1 2,586.8 1,052.4 1,369.9 576.9


Profit/loss before financing 462.5 386.8 201.7 57.5 127.2

Financing, etc. -126.3 -41.7 -33.4 -17.9 -53.2



Shareholders’ share 249.4 249.5 155.2 25.4 73.6 100.0

Another and higher level

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Favourable market conditions

• Large number of investors

• Expansive tenants• Price parameters

in balance

The financial crisisis predominant

• Real property prices drop• Difficult to raise financing• Price parameters out of

balance

Normalised market conditions

• Tenants active again• Investors back• Price parameters in

balance


(DKKm) 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12e 2012/13e


Net revenue 2,719.1 2,586.8 1,052.4 1,369.9 576.9



Financing, etc. -126.3 -41.7 -33.4 -17.9 -53.2




32





in balance



balance

Normalised market conditions


balance



(DKKm) 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12e 2012/13e


Net revenue 2,719.1 2,586.8 1,052.4 1,369.9 576.9



Financing, etc. -126.3 -41.7 -33.4 -17.9 -53.2




33





in balance



balance

Normalised conditions


balance


Management’s expectations for 2011/12 are based on the Group’s existing projects and the expectation that ongoing sales negotiations for several projects will be completed in 2011/12.

The profit after tax for 2011/12 is still expected to amount to about DKK 100 million.

The Group has a strong project portfolio that underpins expectations for another and higher earnings level in the following years.

TK’s expectations

34


Aarsregnskabsmeddelelse%202010_11%20UK

Documents

m2 property project

financial highlights

tax dkk

total project portfolio

m2 overall occupancy

entire project

project company

m2 retail park uppsala