Slide 1: Results Presentation FY2018
Results Presentation FY2018 August 1 March2016 2019
Slide 2: The Continental European pure-play logistics real-estate group
The Continental European pure-play logistics real-estate group ◼ Fully integrated business model – from land identification and acquisition to development and asset and property management ◼ Focus on securing strategically located land plots ◼ Major European cities with >100k inhabitants ◼ Public
Slide 3: 1. Highlights 2018
1. Highlights 2018 fal G) “U
Slide 4: 2018: Strengthening our platform for future growth
2018: Strengthening our platform for future growth ◼ Significant geographical expansion: Entry of four new markets – Italy, Austria, Benelux and Portugal1 ◼ Accelerated growth of the development activities ◼ 21 projects delivered with 505,000 m² of lettable area, representing €26.6 million of annual
Slide 5: Ongoing strong financial performance
Ongoing strong financial performance €1 936m ◼ Strong growth of total portfolio value1 despite €1,563m sale of Mango +24% 2017 2018 €104.1m ◼ Significantly higher committed annualised rental €75.2m income1,2 +38% 2017 2018 €121.1m €96,0m ◼ Record net profit due to development and letting activities
Slide 6: 2. Operational performance
2. Operational performance
Slide 7: Investment portfolio
Investment portfolio ◼ Expansion of JV share as further closings as well as new JV for new markets are anticipated ◼ Geographical split becomes more diversified as we enter into new markets ◼ Entrance of Austrian market through the acquisition of a standing asset of c. 17,000 m2 in Graz, Austria, wh
Slide 8: Continued strong leasing growth in 2018
Continued strong leasing growth in 2018 Committed annualised rental income and number of tenancy contracts1 €120 250 Annualised Rent income - (€ million) €100 200 Number of contracts €80 150 €60 100 €40 50 €20 €- 0 2011 2012 2013 2014 2015 2016 2017 2018 Rolling rental income Increase in rental inco
Slide 9: Record delivery of new developments in 2018
Record delivery of new developments in 2018 ◼ Through integrated business model, VGP well positioned to manage construction market headwinds ◼ During 2018 a total of 21 buildings were delivered, VGP Park Wustermark, Germany VGP Park Berlin, Germany representing 505,000 m2 ◼ Largest share of new deve
Slide 10: Current development pipeline
Current development pipeline ◼ At Dec 2018 a total of 19 buildings were Under Construction, representing 322,000 m2 ◼ This equates to € 16.4 million of new lease contracts ◼ The portfolio Under Construction was 65% pre-let at year-end ◼ The portfolio is mostly concentrated in Germany (39%) and VGP P
Slide 11: Well advanced land bank to support future growth
Well advanced land bank to support future growth Land bank (m2) as of December 2018 5,550,000 1,100,000 4,450,000 1,600,000 2,850,000 1,690,000 1,160,000 1,160,000 Owned and secured land bank Non-binding agreements ◼ Total owned and secured land bank of 4.45 million m2 ◼ In addition, 1.1 million m2
Slide 12: 3. Financial performance
3. Financial performance
Slide 13: Income Statement
Income Statement ◼ Operating profit up €23 million to €151million Income statement (€ million) 2018 2017 ◼ Mainly due to increased profit share from JV Revenue 30.3 28.2 (+ €16 million) Gross rental income 16.6 17.0 ◼ The net rental income increased with Property operating expenses (1.1) (1.9) € 0.4
Slide 14: Income Statement – by segment
Income Statement – by segment Investment Development Property and Asset Management 2018 2017 2018 2017 2018 2017 Gross rental income 16.6 17.0 Gross rental income - - Gross rental income - - Property operating expenses (0.1) (0.2) Property operating expenses (1.0) (1.7) Property operating expenses -
Slide 15: Balance sheet - assets
Balance sheet - assets ◼ Investment Properties of €469 million, up 31 Dec '18 31 Dec '17 €76 million YoY ASSETS Investment properties 468.5 392.3 ◼ Completed portfolio has decreased by Investment in joint venture and associates 241.4 143.3 €31 million to €121 million. Other non-current receivables 4
Slide 16: Balance sheet – Shareholders’ equity and liabilities
Balance sheet – Shareholders’ equity and liabilities 31 Dec '18 31 Dec '17 ◼ Shareholders’ equity of €543 million, up SHAREHOLDERS' EQUITY AND LIABILITIES €77 million YoY Shareholders' equity 543.5 466.2 ◼ Successfully completed €190 million bond offering in September 2018 Non-current financial debt
Slide 17: 4. Outlook and Summary
4. Outlook and Summary
Slide 18: Summary and Outlook
Summary and Outlook ◼ Transformation into truly Pan-European platform ◼ Expansion into new markets: Netherlands, Italy, Austria and Portugal1 ◼ Record operating results and net profit ◼ Strong expansion of the land bank ◼ Successful completion of disposals to JV ◼ Strong fundamental market drivers ◼
Slide 19: Appendix
Appendix fal G) “U
Slide 20: Proven track record of developing unique high quality properties
Proven track record of developing unique high quality properties across strategic locations with blue chip tenants 4PX Express -VGP Park Jenec, Czech Republic Lidl – VGP Park Berlin, Germany Rhenus – VGP Park San Fernando, Spain Euro pool – VGP Park Olomouc, Czech Republic Lekkerland – VGP Park Bobe
Slide 21: Successful strategic partnership with Allianz Real Estate
Successful strategic partnership with Allianz Real Estate JV structure • Exclusive Right of First Refusal for the JV to acquire assets in Germany, 50% 50% Czech Republic, Hungary and Slovakia • VGP to continue to service 5.1% the portfolio as asset, property and 94.9% 100% 100% 100% development mana
Slide 22: Growth supported by new matrix organisation
Growth supported by new matrix organisation CEO Asset Head of Country Manager Legal Manager JV Finance CFO Manager Planning & Project Purchasing COO Technic Manager Manager Manager Commercial After sales CCO Manager Manager Commercial CIO Manager Facility CFM Manager ◼ Clear objectives ◼ Check and b
Slide 23: Land plots bought, secured or LoI signed in 2018
Land plots bought, secured or LoI signed in 2018 23
Slide 24: Completed sale of Mango GDC for €150 million
Completed sale of Mango GDC for €150 million ◼ On 26 September 2018, VGP announced the successful sale of the Mango Global Distribution Centre in Barcelona (Spain) for €150 million ◼ Realising a significant capital gain ◼ Improving the Group’s risk profile ◼ The Mango GDC was acquired in 2016 togeth
Slide 25: Bond maturity profile
Bond maturity profile Bond maturity profile (€ million per year) ◼ Successful repayment of the 2018 €75 million bond 250 ◼ Next upcoming bond repayment of €225 million due in 2023 200 ◼ In addition to bonds issuance 150 and the cash recycling facility through VGP European Logistics Joint Venture, VG
Slide 26: Disclaimer
Disclaimer ABOUT VGP VGP is a leading pan-European developer, manager and owner of high-quality logistics and semi-industrial real estate. VGP operates a fully integrated business model with capabilities and longstanding expertise across the value chain. The company has a well-advanced land bank of