LOADING MESSAGE FROM THE CEO Dear Shareholders, 2020 was a year that left us with mixed emotions. During the year, we made significant progress in realising our vision for Hellinikon. We settled permit and legal issues which were pending for years, we finalized a significant part of the studies for infrastructure works, we proceeded with the architectural plans of important buildings, while we initiated a series of preliminary works including a number of demolitions within the premises of the former airport. On June 25th 2021, after 7 years, our vision, the largest urban redevelopment project of our time in Europe, is officially becoming a reality as a result of the transfer of HELLINIKON SA shares to Lamda Development. 2020 AT A GLANCE Portfolio Human capital Responsibility THE HELLINIKON 01 The Hellinikon constitutes one of the largest greenfield urban regeneration projects in Europe, and the most ambitious development project ever undertaken in Greece. It has been specifically designed to positively impact the local, regional, and national economy, by adding significant new investments, employment opportunities, and various uses in key areas such as tourism, culture, entrepreneurship, R&D, and the environment. A project developed around a world-class urban park and a coastal front fully accessible to the public, the Hellinikon combines diverse range of residential developments, office spaces, retail venues and leisure activities. The Hellinikon will be the country’s first smart, sustainable city, and Greece’s sustainability ambassador across the globe. 1,0,000sqm total land area 1,0,000sqm total buildable area €1bn total investment plan for the Hellinikon over the next 20 years 1.0km coastal front 1,000,000sqm Metropolitan Park 1,000sqm open green spaces Less than 1% coefficient coverage 1km newly developed free access beach The Metropolitan Park The Hellinikon presents a unique opportunity to rethink how cities are planned. At its core lies a vast Metropolitan Park, competing with London’s Hyde Park and New York City’s Central Park in size, beauty, and functionality. It is thus set to become a new landmark for the city of Athens and a pole of attraction for visitors and residents across the Greek capital region alike. Open and easily accessible to the public for unending hours of pleasure, the Park will consist of seven interconnecting parts, each designed with a distinct style and features in mind, linking the city to the sea. 1,000,000sqm Metropolitan Park 1km path network for pedestrians and cyclists Economic impact The Hellinikon is a multi-faceted project whose impact expands over many sectors of the economy. One of the largest private investments ever pursued in Greece, it is expected to accelerate the country’s economic development, both on a macroeconomic and microeconomic basis. Notably, it provides Athens with a unique opportunity to establish itself as a world-class tourist destination throughout the year, attracting over one million additional tourists to the Greek capital region and boosting the average stay and spending. €1bn total investment 1% contribution to GDP 1,000 new jobs during construction 1,000 new jobs during operation €1bn in tax revenues 1m visitors expected annually Smart City The Hellinikon has been designed to incorporate smart city concepts and cutting-edge technologies. KEY ASSETS 02 1,0sqm GLA €1m fair market value 1 stores 1% average occupancy rate (2020) 1,000 underground parking spaces 1,0sqm GLA €1m fair market value 1 stores 1% average occupancy rate (2020) 1,1 parking spaces The Athens Olympic Museum at Golden Hall The creation of the Athens Olympic Museum was initiated by Lamda Development S.A., aiming to host an important part of the Olympic heritage of the country, as well as signifying the unique contribution of Greece to the establishment of the Olympic Movement and accenting Athens as the Olympic Capital. The Museum showcases the Principles and Values, the structure of the Olympic Movement, the significance of Global Peace, the Sports and the Athletes and the Greek Olympic and Paralympic Athletes. The idea of the “Endeavour”, the effort to surpass oneself in all aspects of life, was the inspiration behind the design of the Permanent Exhibition of the Museum. The Athens Olympic Museum invites the visitors to enjoy a unique journey in the history of the Olympic Games, through a chronological narration, which highlights the three pivotal periods of the Olympic Ideal: the Birth (Ancient Olympia), the Revival (Athens 1896) and the Return of the Olympic Games in Greece (Athens 2004). It is located on the first floor of the Golden Hall, upgrading its culture and leisure offering. Along with the adjacent Athens Olympic Center “Spiros Louis” (O.A.K.A.)., it creates a new pole of attraction for residents and visitors of the Greek capital. 0,000sqm GLA €1m fair market value (2020) 1 stores 1% average occupancy rate (2020) 1,000 parking spaces 1,0sqm facilities 1,0sqm commercial complex 1 berths 03 GROUP FINANCIAL PERFORMANCE 2020 2020 has been a year of significant challenges, due to the COVID-19 pandemic and the associated restrictive measures, aimed at preventing the spread of the pandemic. The suspension of Shopping Centers’ operations for an aggregate period that exceeded 100 days during 2020 as well as the government-imposed rent discounts adversely impacted Group consolidated EBITDA from recurring operations, excluding property revaluations, Hellinikon project direct expenses and the accounting impact from the acquisition of a minority stake in Flisvos Marina (€24.1m in 2020 vs. €50.5m in 2019). Property revaluation losses and higher Hellinikon project direct expenses also weighed, with Group consolidated bottom-line results, after taxes and minority interest, amounting to a loss of €51.7m, compared to €50m net profit in 2019. €1 .0m 2020 group revenue €1 .0m 2020 EBITDA retail assets €1m 2020 shopping centers’ value €1 .0m 2020 EBITDA (group consolidated excluding property valuations and Hellinikon direct expenses) Note on the COVID-19 pandemic During the re-opening period, from June until October 2020, our Shopping centers’ key performance indicators for tenants’ sales Source: Company data Notes: (1) Shopping Malls remained closed: (a) all Shopping Malls from 13.03.2020 to 17.05.2020 (66 days) (b) The Mall Athens & Golden Hall from 07.11.2020 (37 days) and Med. Cosmos from 03.11.2020 to 13.12.2020 (41 days) (2) Resrtrictive measures , among others, imposed by the Government, designed to prevent the spread of the pandemic, include click-away, click-inside, limited number of customers per sqm Therefore, the headline full-year 2020 average trends for customer spending mask the significant recovery in consumption trends during the re-opening period (June-October 2020). Moreover, following the pandemic outbreak, Lamda Development successfully negotiated new or proceeded to the renewal of commercial agreements (in total 80 such agreements) under the same financial terms that were in force before the pandemic crisis, thus keeping the Shopping Centers’ value unchanged. Significant recovery in consumption trends during the re-opening period 0 new or renewed commercial agreements under the same financial terms Retail Bond Issue In July 2020, amidst the pandemic crisis, Lamda Development successfully issued, through a public offering, a corporate bond amounting to €320m, with an overwhelming oversubscription (1.9x). The bond is listed in the fixed income securities market of the Athens Exchange, has a term of 7 years and carries a coupon of 3.40% payable semi-annually. €163m of the funds raised are dedicated for the financing of the Hellinikon project. The bond issue registered a record participation of over 10,000 private Greek investors, wishing to partake in the landmark Hellinikon project, a vote of confidence in the project and in Lamda Development. 1m raised 1yrs term 1.1% coupon payable semi-annually More than 1,000 private Greek investors Net Asset Value (NAV) evolution 5,20 404 5,10 395 5,60 439 6,54 1.155 6,23 1.101 NAV (€ m) NAV per share (€) Share price performance The company’s share price has significantly outperformed the local stock market index (ATHEX General Index), generating a return of 76% over a 5-year period. LAMDA +76% ATHEX +28% LARGE CAP +6% HUMAN CAPITAL 04 Lamda Development acknowledges that business success relies on its people. For that reason, it aims at cultivating an excellent work environment that encourages employees’ professional development and progress, using strategies to attract, develop, and preserve human capital. Lamda Development organizes training programs, tailored to the specific needs of its employees, to ensure that they have all the tools necessary to effectively meet the company’s ambitious goals and grow professionally. 1,00hrs of training sessions (an average of 17 hrs per employee) SUSTAINABLE OPERATION 05 Lamda Development has set sustainability as a key element in its business and commercial operations, always bearing in mind to make fair use of all resources. With a well-planned layout, modern architectural design and model ancillary services, Lamda Development’s shopping and leisure centers are designed to ensure they are run in an environmentally friendly way, in the context of sustainable and responsible business conduct. The centers feature Building Management Systems that ensure monitoring of energy consumption, proper time-scheduled lighting, and air-conditioning, thus improving energy consumption and achieving maximum energy efficiency, while significant emphasis is given on recycling. As far as the Hellinikon project is concerned, the development of the Metropolitan Pole of Hellinikon-Agios Kosmas has been planned based on environmental-friendly standards and sustainability principles. Energy Consumption 2020 1,0,0KWh The Mall Athens (shopkeepers included) 1,0,0KWh Golden Hall (shopkeepers included) 1,0,0KWh Mediterranean Cosmos (excluding tenants)* * For tenants’ shops only Heating & Cooling power consumption is included (M.C. provides only hot and cold water for HVAC purposes through an additional central network). Every shop has separate contract for power supply needs. Natural Gas Consumption 2020 1,00KWh The Mall Athens 1,1,KWh Golden Hall 1,1,KWh Mediterranean Cosmos (excluding tenants)* *Food court’s cooking demands are not included (tenants has their own contracts with the provider) Water Consumption 2020 1,0m³ The Mall Athens 1,0m³ Golden Hall 1,0m³ Mediterranean Cosmos Waste Management 2020 1,0Kg The Mall Athens 1,0Kg Golden Hall (for sorting and management) 1,0Kg Mediterranean Cosmos 1,1,1kg of recycled waste Social Responsibility As a responsible corporate citizen, Lamda Development contributes to social progress and economic growth and complies with ethical commitments regarding transparency, quality of service, human rights, environmental protection and safeguarding cultural heritage. Corporate business activities and the operation of its three shopping and leisure centers have led to the creation of 7,000 jobs. The Mall Athens, Golden Hall, Mediterranean Cosmos and the Flisvos Marina also maintain relationships and collaborations with several non-governmental organizations (NGOs) and other similar bodies, allowing them to showcase their work to visitors of the shopping malls. 2O2O COVID-19 Initiatives COVID-19 Lamda Development took part in the national effort to contain and alleviate the impact of the COVID-19 pandemic by aligning its CSR program for the 2020-2021 period with the challenges faced because of the healthcare crisis. The company made a cash contribution to the Health Ministry in support of the National Healthcare System and donated IT equipment to the Education Ministry to support distance-learning for students. Lamda Development decided to provide additional rent relief to tenants (on top of the 40% rent discount as per the relevant legislation), It also consented to the transformation of Hellinikon’s Olympic Fencing Center into one of Attica’s largest vaccination centers with a capacity of 96 vaccination lines. COVID-19 initiatives at a glance: The Museums Cycle – Eleutherna Lamda Development and the John S. Latsis Public Benefit Foundation presented in December 2020 the 19th edition of the Museums Cycle series, dedicated to the archaeological site and excavations in Eleutherna, Crete. The commemorative volume, by Professor Nikolaos Chr. Stampolidis, accompanies readers on a trip to a Cretan city of great importance in ancient times and continuity from the dawn of hellenic civilization to the byzantine era. The Eleutherna volume was distributed free of charge to archaeology departments of universities in Greece and abroad, to the departments and directorates of the Ministry of Culture and Sports, to foreign archaeology schools and institutes, as well as to select local and international libraries and organizations. Reconstruction of the Olympic Aquatic Centre Facilities at OAKA Four new swimming pools and world-class water sports infrastructure are under development at the Olympic Aquatic Center at OAKA. As agreed with the Deputy Minister of Sports, Lamda Development has undertaken in December 2020 and is fully funding the renovation and reconstruction of water sports facilities, first created for the 2004 Athens Olympics, to deliver top-notch athletic facilities, accessible to all. Under the agreement Lamda undertook the financing and execution of the renovation/reconstruction of the outdoor and indoor aquatic centre facilities. Initiatives with NGOs Creating Value Implementing best practices is extremely important for Lamda Development, as it creates value for its shareholders, jobs, and provides services of high added value for its partners and their customers. Zero incidents of privacy and personal data breach have been reported. Zero incident of non-compliance in connection with rules related to health & safety of visitors.