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NEWSLETTER

Issue 3, 2010

Although purchasing power and customers‘ behaviour this year have been influenced by the global economic crisis, businessmen in Europe have been noticing recovery of the market. Optimism is shown in the survey among the firms in central Europe. According to the latest survey of CEEMEA, Slovakia is one of the few countries who appear to be a tiger of Europe. More than 35 % of the responding companies in Slovakia are expecting as much as a double-figure rise next year. This outlook is one of the biggest in the region. More companies comparing to last year are expecting the growth between 5-8% and less are awaiting 2 - 4%. Likewise, Czech companies have well prospective on customers` behaviour before Christmas. Their macro-economic figures are getting better but still haven’t reached the levels seen before the crisis. Customers more than in the past want higher value for their money which weakens the demand for luxurious brands from the West. „Customers needs are very important to us and we are constantly monitoring them. Not only in times of economic crisis do we bring them new services but also the shops in the shopping centres are still being built and extended,“ said Herman Gewert, Marketing Director IICG. The developer IICG builds and runs shopping malls in China and Europe and manages more than 1 million m² of retail space.

THE MERCHANTS ARE ALREADY FEELING THE REVIVAL OF TRADE

DEAR BUSINESS PARTNERS,

this is the last time in 2010 we bring you our electronic newsletter from developer Inter IKEA Centre Czech Republic and Inter IKEA Centre Slovakia who rank among the world developing Inter IKEA Centre Group (IICG). In this issue you will learn about changes in customers‘ behaviour that has been observed by centre managers in our Avion Shopping Parks in Czech Republic and Slovak Republic and whether shopping in Slovakia and Czech Republic has been influenced by the economic crisis and what trends we should be expecting in future. The directors reveal how they think the pre - Christmas shopping will progress.

We believe the newsletter IICG will be useful to you and you will find answers to questions about the activities of our company. This way you will have the opportunity to be the first to have access to information and news about one of the biggest developers in Europe, who is also your business partner. The aim; to make more efficient use of our communication to you and improve the quality, thus giving you the chance to get to know us better as a company. In selecting the contents of each single issue we try to meet your needs and we will be happy to take any questions and comments you may have.

Best Wishes

Ivana ŽoldošováMarketing DirectorInter IKEA Centre Czech Republicand Inter IKEA Centre Slovak Republic

INTERIkEACENTREGRouP

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The shopping centre has been a part of life in Czech Republic and Slovak cities for more than 10 years. During their existence the centres have changed and so has the visitors‘ attitude towards shopping malls. Their beha-viour from the initial scepticism, or let us say refusal of shopping centres as a symbol of consumerism has changed to a substitution for free time activi-ties.

According to Ivana Žoldošová, marke-ting manager IIC CZ/SK - the develo-per that built and runs the Avion Shop-ping Park in Czech Republic and Slovakia, the customers‘ behaviour has formed into two contradictory atti-

tudes. ,,on the one hand a visit to the centre is a certain image, a way how to express their lifestyle, reference to a certain social class. Shopping centre becomes the customer‘s means of expression; it says who I am and how I want to be seen. This type of custo-mer spends quite a lot of time there. We can also observe different types of behaviour- a tendency to be highly effective and spend only the time that is necessary for their needs satisfac-tion“, Ivana Žoldová explained.

The successful centres can only be those that besides shopping facilities also offer other services. During visits to the shopping mall busy customers

THE CZECH AND THE SLOVAK HAVE CHANGED THEIR ATTITUDE TOWARDS SHOPPING CENTRES - THEY ARE MORE EFFECTIVE

SURVEY

WHAT DO CENTRE MANAGERS OF AVION SHoPPING PARKS IN CZECH REPuBLIC AND SLOVAKIA THINK ABOUT CUSTOMERS‘ BEHAVIOUR?

1. How has customers‘ behaviour changed in recent years?

2. How do you change a shopping centre so it corresponds to the latest trend?

3. In your opinion what is the customers‘ behaviour going to be like in future?

4. Can you notice any change in the customers‘ behaviour before Christmas compared to the last year?

Kateřina Ježková, centre manager of shopping centre Avion Shopping Park in ostrava

Petr Navrátil, centre manager of Avion Shopping Park in Brno - combination of shopping centre and retail park

Barbora Kostrecová, centre manager of shopping centre Avion Shopping Park in Bratislava

Roberto Kopecký, centre manager of retail park Avion Shopping Park in Prague

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can also collect their mail, medicines, visit a bank or fitness centre. The Avion Shopping Parks also offer visitors, for example, clothes collection, ice rink, wedding salon or other specialized shops as well as the standard services which are unique in the region.

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The customers‘ beha-viour has changed in

the sense that they go shopping for specific items. They know exactly what they want even before they purchase it. Nowadays, visitors also spend less time in the centres.

In general we can say the customer has beco-

me more demanding. Not just with goods supply, staff behaviour and attitude but also with design and service of the centre. It is influen-ced also by economic situation.

From the point of shopping beha-viour we can generally say that customer is more careful, buys smaller and cheaper items compa-red to more expensive goods. Pro-ducts that customers don’t urgently need or are more expensive postpo-ne for later so they reduce possible risk.

Roberto Kopeckýretail park

PRAHAPetr Navrátil shopping centre and retail park

BRNO

For the shopping centre to be still attractive for customers it is important to keep it like new. It means to renew all the premises re-gularly. As we are a shopping centre that is orientated towards family and children we are trying to add

more attractions to make the shop-ping experience more enjoyable for families. Last year we built a new playground for the youngest kids and for next year we agreed to coo-perate with the operator of the play-ground for older kids. We try to add more educational too. In September we organised two lovely events.

Firstly there was the Lego fire figh-ting academy where children could learn about proper fire fighting pro-cedure from professional firemen. The Night of Scientist for kids both big and little could try many interes-ting experiments which were prepa-red by Slovak students and scien-tists.

Barbora Kostrecová regional shopping centre

BRATISLAVA

2.

HOW HAS CUSTOMERS‘ BEHAVIOUR CHANGED IN RECENT YEARS?

HOW DO YOU CHANGE A SHOPPING CENTRE SO IT CORRESPONDS TO THE LATEST TREND?

Avion in ostrava is one of few centres that widen

their offer even in times when other developers hold up their projects. Ba-sed on surveys conducted we are aware of what the customers want and where the potential market is. Al-most constantly we try to supplement

service and brands that are missing in this locality and this way we stren-gthen our dominant position on the regional market. This year we have focused on widening of sport supplies. In September we opened 11 new shops among which there is also a specialized Nike store with unique compound of goods (the second store of this type in CZ) and brands such as Nord Blanc, North Face and AlpinePro that couldn’t be found in the region.

The spaces where the new stores are placed were reconstructed within the first phase of project north. This will continue in following years by exten-sion of the mall. We have also been working on extending Avion the oppo-site way. According to project South in spring 2011 we will strengthen our offers by the opening of sport giant within European market – French de-partment store Decathlon, as well as Kika who will also begin operating.

Kateřina Ježkováregional shopping centre

OSTRAVA

People no longer go to the shopping centres

just for shopping. Customers desire more and more to arrange eve-rything in one place and also plea-santly spend their free time. There-fore we are trying to offer more space for service. We widen our of-fer of banks, insurances and travel

agencies. We also offer relatively new services that you can’t usually find in shopping malls such as wedding salons or nail studio. In fall we aimed at better access for customers to our centre. Therefore we have built two roundabouts on the main driveway that should pro-vide for continuous flow of traffic mainly before Christmas.

From the point of development of shopping behaviour and demand of our customers we can see they react more sensitively to our price offers and discounts. Their shopping habits are becoming more rational and they are buying more with their head than their hearts.

Kateřina Ježková regional shopping centre

OSTRAVA

Barbora Kostrecováregional shopping centre

BRATISLAVA

1.

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HOW DO YOU CHANGE A SHOPPING CENTRE SO IT CORRESPONDS TO THE LATEST TREND?

Last year in Avion Shopping Park Brno we

undertook reconstruction of shopping passage-way so it corresponds with the latest trends and satisfy even the most demanding customers. This year we concentrated on styling the green areas so these parts of the centre evoke pleasant atmosphere linked with nature. In terms of

We are preparing many interesting activities for

visitors with events such as the Avion Cup - cycling race or drive-in cinema. For next year we prepare opening of petrol station and con-tainers for clothes and small electric appliances. We offer not just large parking but also buses for free that will take customers to Avion Shop-ping Park in Prague.

Petr Navrátil shopping centre and retail park

BRNO

Roberto Kopecký retail park

PRAHA

IN YOUR OPINION WHAT IS THE CUSTOMERS‘ BEHAVIOUR GOING TO BE LIkE IN FUTURE?

Customers will want more entertainment,

services and new options to spend their free time. They will want to get it all under one roof - to do the shop-

ping, send post, arrange things in the bank, insurance company, travel agency, go to the hairdressers, beautician, do their manicure, pedi-cure or see the doctor. While visiting the store they will want to relax with friends by dining or having a cup of coffee.

I think customers will perceive shopping

centres as places of entertain-ment where they can shop or have some cultural experience.

Kateřina Ježková regional shopping centre

OSTRAVA

Roberto Kopecký retail park

PRAHA

I expect that custo-mers will be more de-

manding and may be more careful in terms of price and policies of individual stores. In the future

customer will walk in a shopping centre and do their shopping through some kind of universal machine. They can pay for their purchase at a central till. The goods can be picked up at the exit point with assisting staff. Alterna-

tively, customer can handover their car keys at reception when coming to the store and the staff will put their ordered and purcha-sed goods into their cars.

Petr Navrátil shopping centre and retail park

BRNO

3.

We already can see changing trends in

customers‘ preferences. They are becoming more perceptive towards environmental principles and protection of the environ-

ment. That is why we try to apply basic principles to protect the en-vironment and renewable resour-ces. All electric energy that is used in Avion in Bratislava is only green energy thus renewable energy. Waste separation is ob-vious. Soon we will open so-called

recycling centre where customers can bring there old clothes or small appliances. I believe that we will successfully finish building electric charging station at car parks.

Barbora Kostrecová regional shopping centre

BRATISLAVA

2.feeling comfortable while shopping we try to help our customers for example with many parking spots. Even distance from the parking to the shops is very short. Customers save their time which can be better spent with family, hobbies and relaxation.

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CAN YOU NOTICE ANY CHANGE IN THE CUSTOMERS’ BEHAVIOUR BEFORE CHRISTMAS COMPARED TO THE LAST YEAR?

According to surveys that are regularly conducted,

customers already started their Christmas shopping during November. Some people wanted to avoid stress what can cause more balanced distri-bution of Christmas sale during November and December. For those who left shopping until the last minute we made it easier by increasing the number of parking spaces.

Barbora Kostrecová regional shopping centre

BRATISLAVAThis year prior to Christmas there has been

noticeably greater internet sales, ge-nerally seen by the electrical retailers. That means that customers order and pay for their goods online but they come to pick it up to a shop. Therefore it is not a regular internet purchase when paid goods are delivered to customer’s home by a company but customer picks it up in person.

Roberto Kopecký retail park

PRAHAChristmas fever and shopping for presents is

starting. It is too soon to predict customers‘ behaviour before Christmas. We will be able to answer this question only after Christmas; However, I believe that customers will break the record this year in the amount of money spent for Christmas presents. I wish that especially to our tenants. Merry Christmas to all.

Petr Navrátil shopping centre and retail park

BRNO

Last year most custo-mers left their Christmas

shopping at the last moment. Decem-ber was the strongest month in regard to a number of visitors. The number of visitors in the shopping gallery excee-ded one million (visitors of IKEA, Bau-max, Electrodom, Takko and Gigas-port are not included). The strongest

week was the one before Christmas eve when over 50 thousand custo-mers visited daily our shopping galle-ry. In regards to opening a new part of the gallery on 11th November which in terms of visitors had a positive res-ponse it is very difficult to compare visitors´ behaviour with last year’s behaviour or try on predict it anyhow.

Kateřina Ježková regional shopping centre

OSTRAVA

4.

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DID YOU kNOW THAT...? • Avion Shopping Park Ostrava and Bratislava are amongst

the most well known shopping centres within IICG group

• one third of visitors visit IKEA during their shopping in Avion Shopping Park

• one fifth of people surveyed visit Avion Shopping Park once a week

• most regular visitors in Avion Shopping Park in Bratislava, ostrava and Prague are between 18-29 years old

• most regular visitors in Avion Shopping Park in Brno are between 18 - 39 years old

Source: Central Rep. CSI andBrand Awareness 2010 IICGCustomer research, GfK Internalresearch 2009 If you want to save your energy during the whole year you can save your New Year

wishes in interactive from in your computer also as your screen saver. (click here)

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Contact:

Katarína ŠutarováSenior Manager, Client Service

Seesame, s.r.o.Prievozská 4/D (Apollo BC)821 09 BratislavaSlovak Republic

Mobil: (+421) 917 654 603E-mail: sutarova@seesame.comhttp://www.seesame.com

This brochure is a non-contractual document and does not constitute a contractual offer. All information contained in this brochure is for informational use only and we assume no liability for completeness or accuracy. All the information contained in this brochure is subject to change.

SURVEY:Has the information in this newsletter been helpful for you?What other information would you appreciate?Please send your feedback to: sutarova@seesame.com

Inter IkEA Centre Group (IICG)• is an investor, developer and

administrator of shopping centres• Inter IKEA Centre Czech Republic and

Slovak Republic were founded in 2003 and are members of the IICG

• administers four shopping centres across the Czech Republic and Slovakia (Prague, Brno, ostrava and Bratislava) named Avion Shopping Park, with a total area of over 280,000 m²

• IICG always builds shopping centres with an IKEA store that is the anchor tenant and only has IICG shopping centres for its partner