Scentre : Chairman's Address to Shareholders

5 April 2017

Attached are copies of the addresses to be given at today's Annual General Meeting by:

• Mr Brian Schwartz AM, Chairman; and

• Mr Peter Allen, Chief Executive Officer.

Contacts:

SCENTRE GROUP LIMITED ABN 66 001 671 496

SCENTRE MANAGEMENT LIMITED ABN 41 001 670 579 AFS Licence No: 230329 as responsible entity of Scentre Group Trust 1 ABN 55 191 750 378 ARSN 090 849 746

RE1 LIMITED ABN 80 145 743 862 AFS Licence No: 380202 as responsible entity of Scentre Group Trust 2 ABN 66 744 282 872 ARSN 146 934 536

RE2 LIMITED ABN 41 145 744 065 AFS Licence No: 380203 as responsible entity of Scentre Group Trust 3 ABN 11 517 229 138 ARSN 146 934 652

Level 30, 85 Castlereagh Street, Sydney NSW 2000 Australia · GPO Box 4004 Sydney NSW 2001 Australia · T +61 (02) 9358 7000 · scentregroup.com

Our Chief Executive Officer, Peter Allen, will talk about our results in more detail shortly, but I would like to highlight what I see as our achievements in 2016 as well as our opportunities going forward.

Our long term strategy is to create and own the leading retail destinations in Australia and New Zealand. As part of that strategy and, as foreshadowed last year, with the sale of Casey Central in Victoria and WestCity in New Zealand, we have now divested those centres that did not meet this objective. Rebalancing our portfolio allows us to re- allocate capital to our higher performing assets.

Our portfolio - 34 centres in Australia and 5 centres in New Zealand - comprises some of the strongest performing centres in their regions.

During the year we also acquired an interest in the David Jones Market Street building in Sydney's CBD which will allow us to expand and enhance our luxury retail offering at Westfield Sydney.

For the 12 months to 31 December 2016, we achieved funds from operations growth of 3.2% which was ahead of guidance. But for the impact of transactions during the year FFO growth, which is the real measure of our business performance, would have been around 5%.

The full year distribution of 21.3 cents per security was up 2% from the prior year.

Profit for the year was $2.991 billion, including property revaluations of $1.6 billion and our total assets were $34.1 billion.

These results reflect the strong operating performance, which Peter will comment on further. Our redevelopments continue to create long term value.

In the last year we completed and opened $665 million of redevelopments and commenced $605 million of redevelopments. Through these projects we continue to execute the Group's purpose of:

"Creating extraordinary places, connecting and enriching communities".

Our development pipeline is in excess of $3 billion, providing us with ongoing opportunities which include the new "greenfield" development at Westfield Coomera in Queensland and the Group's first development in New Zealand, at Westfield Newmarket in Auckland.

All of this, of course, could not be done without our people and the knowledge and commitment that they bring to the business. They work together to deliver superior customer experiences to create value for our partners, our

retailers, our shoppers and you, our securityholders.

During the year, we conducted our first Scentre Group employee engagement survey and are proud to have achieved an employee engagement score of 85%, considered to be "best in class" globally.

For a relatively new Group, this is a very pleasing result and I want to acknowledge Peter's leadership and commitment, as well as that of the senior leadership team, in this achievement.

People and culture is also about diversity. Both management and the Board believe that a balanced and diverse team can only enhance the Group's ability to deliver on strategy and serve our customers. Talented and motivated people are critical to our ongoing success.

We recognise that female representation at our senior executive level is an ongoing challenge for us. However, the Board and management remain committed to a diverse and inclusive workplace and we will keep working to increase our representation of women at senior executive levels.

The impact of digital technology and digital disruption also remains a keen focus for us. Our engagement with the digital world is reflected in both the appointments to our Board and to senior management and we will continue to ensure that our skills in this area are current and relevant.

Digital innovation, through advanced data analytics and the development of new technologies, continues to be embedded across all our business operations.

The year also saw us continue our process of Board renewal. I believe our Board reflects the diversity of skills, talent and experience required to guide the Group in the future.

Two of our directors are standing for re-election today and you will hear from both Andrew and Aliza shortly on their re-election.

I will now ask Peter to talk about the results, and our outlook, in more detail and outline the work that that he, and the senior leadership team, continue to undertake to deliver in line with the goals and aspirations of the Group.

Thank you Chairman. Good morning Ladies and Gentlemen.

2016 was a successful year for Scentre Group and we are well positioned for the future.

Scentre Group's portfolio is the highest quality shopping centre portfolio across Australia and New Zealand. This includes many of the best centres in both markets, including 16 of the top 25 shopping centres in Australia and 4 of the top 5 in New Zealand by annual sales. Over 50% of our portfolio is in Sydney and 85% is located in the capital cities of Sydney, Melbourne and Brisbane.

98% of our portfolio is invested in regional and CBD shopping centres, with more than 80% of the portfolio generating annual sales in excess of $500 million, with three centres, Westfield Bondi Junction, Sydney and more recently Fountain Gate generating annual sales in excess of $1 billion.

Our centres are located in strategic locations, with high population density growth.

Approximately 85% of new household formation over the past 5 years was in the trade areas of our shopping centres. Our opportunity therefore is to grow our market share in a growing market.

And the quality of our portfolio reinforces its resilience in face of any market fluctuations and retail change.

For 2016, the Group delivered funds from operations of $1.238 billion or 23.3 cents per security, representing an increase of 3.2 % which was higher than guidance.

FFO growth would have been approximately 5% if not for the impact of dilutive asset sales.

The strength of our operating performance - with continued growth in specialty sales, high specialty sales productivity and continued growth in comparable net operating income - has underpinned our profit for the year, which was $2.991 billion including property revaluations of $1.6 billion.

Our operational merit hinges upon our ability to attract the best retailers to the right centres, allowing us to curate a retail mix that perfectly suits the consumer demands of a given trade area.

If we can get this right, our job is already half done, and so the art and science of retail curation has been - and will continue to be - an area of considerable focus for Scentre Group.

We're continuing to improve the retail product offering by introducing more on-trend and desirable brands. In turn, these brands are driving demand for retail space across our portfolio - which remains more than 99.5% leased.