5,5. 8th. 2nd FACTS OF FINLAND. 5,5 million inhabitants. EU member since 1995.

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2 5,5 FACTS OF FINLAND 5,5 million inhabitants. EU member since OSLO NORWAY DENMARK SWEDEN FINLAND HELSINKI STOCKHOLM TALLINN RIGA VILNIUS 200 km ST. PETERSBURG MOSCOW R U S S I A 8th 8th 2nd The 8th most competitive economy in the world (World Economic Forum, 2016) 8th biggest GDP per capita ($41,900) among EU countries (The World Bank, 2016) The 2nd least corrupt country in the world (Transparency International, 2016) PORTUGAL UK SPAIN LONDON PARIS BENELUX FRANCE SWITZERLAND GERMANY BERLIN ITALY CZECH GREAT AUSTRIA SLOVENIA WARSAW POLAND CROATIA SLOVAKIA HUNGARY B&H SERBIA GREECE ROMANIA BULGARIA BELARUS MINSK KIEV UKRAINE MADRID ROME ISTANBUL TURKEY

3 FINLAND 8.5 MILLION residents within 90 minutes with imminent opening of the new highway 200 km, 90 minute drive ST. PETERSBURG 170 km, 75 minute drive HELSINKI TURKU TAMPERE E km LAHTI LAPPEENRANTA KOUVOLA VYBORG VAALIMAA E km BORDER CROSSINGS IN THE VICINITY OF ZSAR* Million HELSINKI Million 7 Million TALLINN SAINT PETERSBURG RUSSIA 2017 *Finnish Border Guard 8 Million ESTONIA

4 LAPPEENRANTA 60 KM BORDER CONTROL & CUSTOMS HELSINKI 170 KM ST. PETERSBURG 200 KM E metres E18 FINLAND / EU RUSSIA

5 RUSSIA 1st OPEN AIR OUTLET VILLAGE IN FINLAND Phase 1, 2018: Phase 2: Total in : Parking spaces: 12,000 m 2 8,000 m 2 20,000 m FINLAND / EU

6 REGIONAL MASTER PLAN LEGEND Retail & Services Large Scale Commerce The Municipality of Virolahti Hotels Logistics Land development reservation for EFRE, the developer of Zsar

7 LAYOUT PHASE 1 PHASE 2

8 LAYOUT PHASE 1

9 Z sar will be the first premium outlet village in Finland, located on the Russian border, halfway between St. Petersburg and Helsinki. Z sar enjoys an influx of millions of Russian cross-border tourists just 500 metres from the biggest border control point in the EU. Over 70% of Russians cite shopping as their primary reason to travel to Finland. New motorway from both St. Petersburg and Helsinki to the border and the gates of Zsar will open in 2018, reducing driving time to 75 to 90 minutes. Z sar is estimated to reach the TOP 10 of outlets in Europe and become the best selling shop ping centre in Finland by sales density. (Sources: FSP Retail Business Consultants, Finnish Council of Shopping Centers)

10 POTENTIAL Potential mature sales density of 7,800 per m², of which 4,700 per m 2 by Finns (Source: Ken Gunn, FSP) On average, each Russian tourist spends 174 per trip in Finland, totalling c. 600 million annually. (Source: Visit Finland) Catchment from Finland is 1,6 affluent inhabitants. On average, Finns spend nearly 1,000 in apparel annually (in e.g. Germany c. 800/year). (Sources: Eurostat, Statista) In addition to Finnish and Russian consumers, Asian tourists will be an important and a fast growing customer group. The number of Asian overnight stays in Finland is growing by over 20% a year, and expected to reach over 660,000 by (Source: Visit Finland)

11 OPPORTUNITY A unique opportunity to tap into the huge demand for premium quality brands among Russian and Finnish consumers, as well as a remarkable amount of Asian tourists to Finland 8.5 million affluent, brand-oriented and price-conscious inhabitants within a 200 km radius Great opportunity to target the Russian consumer without the risks of operating in Russia Attractive retail prices for Russian and Finnish consumers and a totally new shopping experience

12 PRODUCT PRICE COMPARISON An example: October 2017 currency exchange rates Clarks Gilman Slip Tommy Hilfiger Down Jacket Michael Michael Kors Silk Blouse Price in Russia inc. taxes 141,90 385,30 275,70 Finnish high street price inc. taxes 109,90 249,00 240,00 Price at Zsar -30% 76,90 174,30 168,00 Tax free Zsar price (benefit -24%) 62,00 140,60 135,50

13 OPPORTUNITY FROM CHINESE TOURISM CHINESE TOURISM TO FINLAND IS SKYROCKETING Helsinki airport is the 5th largest hub for Asian tourists in Europe. 500K Growth of Chinese hotel stays in Finland 494K Growth rates of Chinese border crossing in Vaalimaa 130% The number of Chinese hotel stays in Finland has grown 227% since K 250K 210K 271K 111% 83% 79% Border crossings of Chinese tourists is growing by 65% in Vaalimaa. 125K 0 143K 150K 102K 113K 83K est. 20% est est. An estimated number of Chinese border crossings in 2019 in Vaalimaa is c. 110, ,000

14 FACTS ABOUT RUSSIAN TOURISM 4 reasons why Zsar will reach the TOP 10 of Outlets in Europe and achieve minimum sales density of 7,800/m2* A unique location just 500 metres from the biggest border control point between the EU and Russia, with estimated 3,5 million border crossings in A unique brand mix for both Finnish and Russian customer base, ranging from premium to affordable luxury. Strong operational commitment with an experienced international team, including e.g. marketing teams for the Finnish, Russian and Asian markets. A truly unique shopping environment, exceptional architecture and a venue for continuous retail driven events * FSP Retail Business Consultants

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16 ZSAR STATUS AUTUMN 2017 Launch of project in November 2014 Feasibility study conducted Development team in place Land acquisitions completed Road connections approved with local authorities Financing in place Architectural plans completed Building Permit approved by municipal building board Construction plan in place All leasing documentation prepared Construction underway Numerous agreements signed with brand partners, such as Armani, Guess, Hugo Boss, Le Creuset and Nike.

17 ENTRY MADE EASY FOCUSED ON COMMERCIAL SUCCESS World s most advanced digital tax free refund system and money exchange services on site Bus services to Zsar from Helsinki city centre, Helsinki airport, high-speed train station nearby and St. Petersburg city centre Compelling one-day travel packages to Asian stopover tourists in partnership with Visit Finland, Finnair and other Finnish tourism companies Comprehensive customer services, including e.g. valet parking, home deliveries, short-term storage rooms, hands free shopping etc.

18 Phase I 12,000 m² Total GLA 20,000 m² after phase II by Estimated 7,800 m² sales when mature (Ken Gunn, FSP) 115 brand stores, m 2 each Estimated 150M sales when mature (Ken Gunn, FSP)

19 ZSAR OUTLET VILLAGE HEAD OFFICE Sami Vainiomäki, CEO +358 (0) In partnership with TLC PROPERTY ASSET MANAGEMENT LTD. Neil Thompson, Board Director +44 (0) CRC-RETAIL. Neil Chapman, Director +44 (0) ZSAR.FI The information contained in this document is for general information and guidance purposes only, being correct at the time of going to print. Neither EFRE Oy nor TLC Property Asset Management Ltd accept any responsibilities for any inaccuracies contained herein.