Interview with the Chairman of the Executive Board

	Chairman of the Executive Board Bruno Keller

• What impact did the crisis have on ANF’s business in 2009?

One of ANF’s core strengths is the diversification of its real estate assets and rental income: 22% office space, 30% residential units and 42% retail premises (other: 6%). Thanks to this diversification, with major retail and residential components, which are the most resilient segments during a crisis, ANF has been able to come through this challenging period rather well. Office real estate, in particular in Lyons, held up particularly well. The vacancy rate, excluding voluntary vacancies as part of larger redevelopment plans, didn’t rise and the level of bad debts remained contained. Furthermore, 50% of total rental income comes from secured leases with minimum fixed terms, signed with B&B in 2007.

• Isn’t poor stock liquidity one of ANF’s weak points?

Improving stock liquidity has been one of the key concerns of ANF’s management over the past two years. In 2009, we increased the number of roadshows and individual investor meetings, both in France and abroad. We thus met close to 150 different investors. In parallel, we considerably expanded our financial communications on ANF’s business, results and the outlook. This resulted in a threefold increase in average stock trading volumes in 2009. We will obviously continue this policy in order to improve stock liquidity.

• Are we seeing a lasting climb in appraisal values?

Like all real estate companies, ANF’s appraisal values as of June 30, 2009 were down on the back of the higher capitalisation rates used by appraisers. In H2, the quality of the assets, the climbing rents and their recurring nature, in particular thanks to the fixed rents from the B&B hotel portfolio, made possible a 2% rise in appraisal values at constant scope. It will obviously be for the appraisers to take a view in 2010 but the intrinsic qualities of ANF’s portfolio and the announced further rise in rents on the back of the renegotiation of leases and the completion of certain developments should be positive for the appraisals in 2010.

	Chief Operating Officer Xavier de Lacoste Lareymondie

• You’re talking about a 10% rise in ANF’s revenues in 2010.
What is the basis for this?

ANF’s strategy has always been built around maximising the value of its real estate assets, in particular in Marseilles, the upward revision of retail leases and the development of its land reserves. This strategy, which has been unchanged from the outset, will be continued in 2010 and should once again make possible an increase in rents of around 10% and an improvement in the operating margin, given the retail leases that are up for review in 2010 and the completion of two new developments towards the end of 2010, the full impact of which will be seen in 2011 rental income.

• What are the main challenges for 2010?

One of the sources for increasing rental income over the coming years notably involves cutting vacancies across the residential units in Marseilles. This vacancy, which is long-standing, on its own represents potential additional rental income of around €3 million. In 2010, we are going to make every effort to identify permanent solutions to eliminate this vacancy over the coming years, by identifying new niches such as, for example, the creation of small residential units for students or possibly serviced housing, for which there is strong demand.