Slide 1: Conservative Approach To Growth In Warehousing
MLP Corporate Presentation Conservative Approach To Growth In Warehousing September 2024 MLP Group, Presentation to Moody’s, April 2024
Slide 2: Executive Summary
EXECUTIVE SUMMARY • MLP Group S.A. (“MLP” or “the Company”) is a leading European logistics platform listed on the Warsaw Stock Exchange since 2013 with a current market capitalisation of €457mn (PLN 2.0bn)(1) ➢ Founded in 1998, the company operates in 4 markets: Poland, Germany, Austria and Romania
Slide 3: Agenda
AGENDA 1 COMPANY OVERVIEW 4 2 INDUSTRY UPDATE 17 3 KEY HIGHLIGHTS 20 4 DEEP DIVE INTO MLP’S PORTFOLIO 30 5 FINANCIAL OVERVIEW 34 MLP Group, Presentation to Moody’s, April 2024 3
Slide 4: 1. Company Overview
1. COMPANY OVERVIEW MLP Group, Presentation to Moody’s, April 2024 4
Slide 5: MLP Group at a Glance
MLP GROUP AT A GLANCE GROUP OVERVIEW GROSS ASSET VALUE(4) SPLIT (AS OF JUNE 2024) • Leading European logistics platform listed on the Warsaw Stock Exchange since 2013 with a current market capitalisation of €457mn (PLN 2.0bn)(1). GAV PER ASSET TYPE GAV PER COUNTRY • Operating since 1998 mainly in 4
Slide 6: MLP Group Is Active in 4 Strong European Countries
MLP GROUP IS ACTIVE IN 4 STRONG EUROPEAN COUNTRIES 4 c. 1.2 2.7 7.4 core markets mn sqm mn sqm MWp GLA landbank installed PV Assets located in close proximity to large German cities, such as: Dortmund, Essen, Dusseldorf and Assets located just outside Cologne Gorzów Wielkopolski Poland Poznań Berlin
Slide 7: Accelerated Growth Since IPO in 2013
ACCELERATED GROWTH SINCE IPO IN 2013 +426% +271%(1) Growth in NAV Growth in developed space from PLN 0.509 from 0.313 million sqm to PLN 2.678 billion to 1.161 million sqm +308% +243% Growth in revenues Growth in share price from PLN 48.2 from PLN 24.00 to PLN 187.7 million to PLN 82.40 Sources: MLP
Slide 8: Strong Increase in Net Asset Value Since 2013
STRONG INCREASE IN NET ASSET VALUE SINCE 2013 NET ASSET VALUE (IN MN PLN) 2,678 2,498 2,396 1,825 1,212 939 727 815 647 676 509 558 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1H 2024 NET ASSET VALUE (IN €MN) 621 533 551 397 263 220 174 190 131 152 153 123 2013 2014 2015 2016 2017 2018 20
Slide 9: Record of Delivering Logistics Park Developments for Clients
RECORD OF DELIVERING LOGISTICS PARK DEVELOPMENTS FOR CLIENTS… DEVELOPED SPACE, UNDER CONSTRUCTION & IN PREPARATION STAGE (SQM) 1,387,776 1,404,725 1,105,595 999,847 857,068 750,834 611,578 512,310 356,874 392,241 400,974 335,466 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1H 2024 -123,442
Slide 10: With Strong Operating Metrics
…WITH STRONG OPERATING METRICS Partnership that deliver robust & growing income streams AS OF JUNE 30, 2024 c.1.2 mn sqm 91% 100% 100% 99% GLA Occupancy Retention rate Lease contracts Rent collection indexed with EURO (in 60 days) HICP without CAP Sources: MLP. MLP Group, Presentation to Moody’s, Ap
Slide 11: H1 2024 Results – Key Figures
H1 2024 RESULTS – KEY FIGURES FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS €1,166mn €621mn 91% 7.8 yrs +12% vs. DEC 2023 Occupancy rate WAULT GAV(1) NAV €11.3mn 100% -3% vs. H1 2023 €9.5mn 77% -25% vs. H1 2023 Lease contracts Company adjusted Construction with EPRA earnings(2) indexed with EURO FFO p
Slide 12: Over 25 Years of Operating in European Logistics Real Estate
OVER 25 YEARS OF SUCCESSFULLY OPERATING IN THE EUROPEAN LOGISTICS REAL ESTATE MARKET Commencement Gaining scale Expansion in Expansion in Austria Completed area of first project Germany exceeds 1mn sqm The total area of Acquisition of a land plot MLP launches its warehouse space MLP started its to d
Slide 13: Pillars of MLP and Its Key Strategic Objectives
PILLARS OF MLP AND ITS KEY STRATEGIC OBJECTIVES VERTICALLY MODERN AND STRATEGIC CONTINUOUS FOCUS ON KEY INTEGRATED SUSTAINABLE DEVELOPMENT SITES GROWTH MARKETS BUSINESS MODEL PORTFOLIO • Location Search: Provides an • Acquires development sites • Replenishes its landbank on a • Focuses on City Logis
Slide 14: ESG Strategy – Sustainability Key to MLP's DNA
ESG STRATEGY – SUSTAINABILITY KEY TO MLP’S DNA • The company’s approach to sustainable development is described Reducing the company’s impact on the environment. Tasks to achieve this goal: ENVIRONMENTAL in MLP Group's ESG Strategy, effective from 2022, which defines both aspirations and goals of ML
Slide 15: MLP Group Only Has Financial Shareholders
MLP GROUP ONLY HAS FINANCIAL SHAREHOLDERS No Shareholder exercises individual control over the Group. MLP ECONOMIC PARTICIPATION STRUCTURE ILDC ECONOMIC PARTICIPATION Entity % stake The Israel Land Development Company Eytan Levy Michael Shapiro R.R.N. Holdings & Investments (x) 66.69% (ILDC) Cajamar
Slide 16: Simplified Structure Chart
SIMPLIFIED STRUCTURE CHART Simplified Structure Chart Cajamarca Holland B.V. Other Israeli Other shareholders(2) shareholders(1) 42.69% 23,14% 34.17% MLP GROUP S.A. Various Project SPVs Notes: (1) As of June 30, 2024, other Israeli shareholders include ILDC (12.57%), Thesinger Ltd (7.38%) – a compan
Slide 17: 2. Industry Update
2. INDUSTRY UPDATE MLP Group, Presentation to Moody’s, April 2024 17
Slide 18: Logistics Sector Benefits from Structural Growth Drivers (1/2)
LOGISTICS SECTOR BENEFITS FROM STRUCTURAL GROWTH DRIVERS (1/2) MLP OPERATES IN MARKETS WITH SUSTAINED GDP GROWTH… …AND STABLE UNEMPLOYMENT RATES… GDP Growth(1) (%) Unemployment Rate(1) (%) 7% 7% 6% 5% 5% 3% 4% 3% 1% 2% -1% 1% 0% -3% 2021 2022 2023 2024E 2025E 2026E 2027E 2028E 2021 2022 2023 2024E 2
Slide 19: Logistics Sector Benefits from Structural Growth Drivers (2/2)
LOGISTICS SECTOR BENEFITS FROM STRUCTURAL GROWTH DRIVERS (2/2) PRIME HEADLINE RENTAL LEVELS STILL RISING, A TREND EXPECTED TO INVESTORS AND CAPITAL TARGETING INDUSTRIAL ASSETS CONTINUE IN 2024 Prime rental growth by country(1), rebased to Q4 2017 = 100(2) Prime logistics yields by country(1)(2) 160
Slide 20: 3. Key Highlights
3. KEY HIGHLIGHTS MLP Group, Presentation to Moody’s, April 2024 20
Slide 21: MLP Has Multiple Strengths
MLP HAS MULTIPLE STRENGTHS 1 Quality portfolio of standardized, sustainable and modern assets (1)(2) 2 Proven track record of organic growth across Europe with conservative investment strategy (assets located in core prime cities) 3 Diversified blue chip tenants’ mix with long WAULT (7.8 years) and
Slide 22: Quality Portfolio of Standardized, Sustainable and Modern Assets
1 QUALITY PORTFOLIO OF STANDARDIZED, SUSTAINABLE AND MODERN ASSETS BUILDING – SIZE BUILDING – CONSTRUCTION AGE (% OF TOTAL GLA) 2% 5% 5% 7% 20% 36% 8k sqm 6.2 years Average 21% Average Age Building Size of Assets 65% 39% <10k000 <10 m2 m2 10k m2 -m2 10 000 25k- m 252 000 m2 0- 5 years 6-10 years 11-
Slide 23: Proven Track Record of Organic Growth with Conservative Investment Strategy
2 PROVEN TRACK RECORD OF ORGANIC GROWTH WITH CONSERVATIVE INVESTMENT STRATEGY GROSS ASSET VALUE(1) (€MN) INVESTMENT STRATEGY % Net LTV 36% 34% 38% 37% 1 Focus on green projects in core locations across Europe. 1,166 2 Tenants (1-2 D&B rating(2)) exhibit high attention MLP puts on 1,037 client qualit
Slide 24: Diversified Blue Chip Tenants' Mix with Long WAULT
3 DIVERSIFIED BLUE CHIP TENANTS’ MIX WITH LONG WAULT (7.8 YEARS) AND CA. 100% RETENTION RATE COMBINED WITH LFL GROWTH GLA BY TYPE OF CUSTOMER (SQM) - % AVERAGE TERM OF LEASE AGREEMENTS ~8 YEARS WITH ~15% OF TOTAL LEASES DUE TO EXPIRE AFTER 2034 E- commerce Retail 13% 65% 28% Logistics 26% WAULT 7.8
Slide 25: Vertically Integrated Business Model with High Barriers to Entry
4 VERTICALLY INTEGRATED BUSINESS MODEL WITH DIVERSIFIED REVENUE STREAMS, ECONOMIES OF SCALE AND HIGH BARRIERS TO ENTRY HIGH BARRIERS TO ENTRY: 1 Unique market expertise and broad contact network - ability to effectively source attractive land bank opportunities through diverse channels. 2 Local foot
Slide 26: Growth Strategy Focused on City Logistics
5 GROWTH STRATEGY FOCUSED ON CITY LOGISTICS Focused on increasing share of Germany & Austria in the asset base via low-risk growth with majority of development activity focused on landbank situated adjacent to existing properties. TOTAL LANDBANK GAV BY ASSET TYPE (IN HA)(1) as at H1 2024 Target as a
Slide 27: Inflation and FX Protected Cashflow Mix
6 INFLATION AND FX PROTECTED CASHFLOW MIX WITH 100% OF LEASES FULLY INDEXED TO INFLATION MLP FULLY PASSES INFLATION TO TENANTS THROUGH RENTAL ARRANGEMENTS LIKE-FOR-LIKE RENTAL GROWTH(2) 100% of lease contracts are link with indexation through annual ▪ indexation with HICP. 2021 – H1 2024 MAIN DRIVER
Slide 28: Robust Balance Sheet, Predictable Cash Flows and Conservative Financial Policies
7 ROBUST BALANCE SHEET, PREDICTABLE CASH FLOWS AND CONSERVATIVE FINANCIAL POLICIES CHANGE CHANGE IN IN PROPERTY PROPERTY VALUATION VALUATION FROM 2021- H1IN 2019-2023 2024 (1) NET CASH FROM OPERATING ACTIVITIES ADJUSTED FOR NEW TAX SCHEME (IN €MN) – PER YEAR (IN€mn) – PER YEAR (IN €MN) Valuation cha
Slide 29: Experienced, Long-Standing Management Team
8 EXPERIENCED, LONG-STANDING MANAGEMENT TEAM MLP GROUP’S MANAGEMENT BOARD Radosław T. Krochta Michael Shapiro Monika Dobosz Agnieszka Góźdź CEO & President Vice President CFO & Member Member of the Management Board of the Management Board of the Management Board of the Management Board • Joined MLP
Slide 30: 4. Deep Dive into MLP's Portfolio
4. DEEP DIVE INTO MLP’S PORTFOLIO MLP Group, Presentation to Moody’s, April 2024 30
Slide 31: Quality Portfolio of Standardized, Sustainable and Modern Assets
QUALITY PORTFOLIO OF STANDARDIZED, SUSTAINABLE AND MODERN ASSETS YIELDING PROJECTS POLAND & GERMANY MLP POZNAŃ MLP POZNAŃ WEST II MLP WROCŁAW MLP GLIWICE MLP LOGISTIC PARK MLP BUSINESS PARK MLP PRUSZKÓW I MLP PRUSZKÓW II UNNA BERLIN I KPIs (AS OF JUNE 30, 2024) 91% c.2.7 7.8 yrs +5.5% 37% mn sqm H1’
Slide 32: Development Pipeline Pre-Let Ensuring Cashflow Visibility
DEVELOPMENT PIPELINE PRE-LET ENSURING CASHFLOW VISIBILITY 171.2 K SQM 47.0 % On-going development(1) Already leased(1)(2) NEW BUILDINGS AS OF 30 JUNE 2024 (K SQM) (3) 171 72 (3) 54 51 34 22 29 16 16 16 7 MLP Pruszków V MLP Poznań MLP Wiedeń MLP Zgorzelec MLP Łódź III total space pre-let Notes:Group,
Slide 33: Historically Sizable Value Uplift from Developments
MLP HAS HISTORICALLY ACHIEVED SIZABLE VALUE UPLIFT FROM ITS DEVELOPMENTS CONSTRUCTION COSTS VS. CAPITAL VALUE(1) PER BUILDINGS DATA PER COUNTRY AS OF 30 JUNE 2024 IN € PER SQM x Profit Margin % POLAND GLA(2) LTM Revenue 2021 2022 2023 H1 2024 7% 3% 10% 2% 40% 31% 33% 37% 1.2mn sqm €83mn 817 803 90%
Slide 34: 5. Financial Overview
5. FINANCIAL OVERVIEW MLP Group, Presentation to Moody’s, April 2024 34
Slide 35: LTM Run-Rate Adjusted EBITDA Bridge
LTM RUN-RATE ADJUSTED EBITDA BRIDGE LTM RUN-RATE ADJUSTED EBITDA BRIDGE (IN €MN) * * Represents Run-Rate Adjusted EBITDA contribution for new contracts • €1.2mn: Entered into prior to June 30, 2024, which generated revenue prior to such date for part of the LTM period • €4.3mn: Entered into prior to
Slide 36: Historical Financials (1/3)
HISTORICAL FINANCIALS (1/3) Dynamic growth and robust cash flow generation over the years. x YoY Growth REVENUE(1) (€MN) x % YoY Growth Recurring EBITDA(1) (€MN) 2% 36% 33% 4% 55% 34% (1%) 83 80 60 44 44.3 44.1 33.1 21.4 2021 2022 2023 LTM 2021 2022 2023 LTM Capex / x Average Cost of Debt NET CASH I
Slide 37: Historical Financials (2/3)
HISTORICAL FINANCIALS (2/3) x YoY % change GAV(1) (€MN) x YoY % change NAV(2) (€MN) 47% 29% 11% 12% 51% 34% 3% 13% 621 1,166 551 1,037 533 938 729 397 2021 2022 2023 H1'24 2021 2022 2023 H1'24 x Net Debt GROSS DEBT (€MN) SECURED DEBT (€MN) 277 321 397 435 482 500 392 (3) 381 385 320 310 224 2021 202
Slide 38: Historical Financials (3/3)
HISTORICAL FINANCIALS (3/3) NET LTV(1) (%) Net Secured LTV (%) 38% 29% 37% 26% 27% 23% 36% 34% 2021 2022 2023 H1'24 2021 2022 2023 H1'24 Secured Debt / Gross Debt (%) EBITDA TO NET INTEREST COVER(2) (X) 80% 79% 77% 3.3x 2.9x 2.3x 2.0x 70% 2021 2022 2023 H1'24 2021 2022 2023 H1'24 Notes:Group, MLP (1
Slide 39: Maturity Profile
MATURITY PROFILE EXISTING BANK LOANS AND BONDS BY MATURITY IN €MN • MLP is a reliable financing partner, with a solid financial position. • MLP continues to have strong access to the domestic bond markets and will look to refinance near term domestic bond maturities in the domestic bond markets. • A
Slide 40: MLP Group S.A.
MLP GROUP S.A. ul. 3 Maja 8, 05-800 Pruszków, tel. +48 22 738 30 10 ir@mlpgroup.com www.mlpgroup.com MLP Group, Presentation to Moody’s, April 2024