Slide 1: Building Tomorrow Today
Building Tomorrow Today August 2018 October 2016
Slide 2: 1. Introduction to VGP
1. Introduction to VGP
Slide 3: History and milestones
History and milestones n 1998 Start up of the VGP Group n 2002-2005: Start up of the development of a proprietary portfolio. First developments realised. Regional expansion in Czech Republic n 2007: IPO n 2007-2009: Expansion throughout the Mid-European region (Slovakia, Hungary) and Baltics (Estoni
Slide 4: Introduction to VGP
Introduction to VGP GAV – Own portfolio (€ 0.5 bn) n Founded in 1998 in the Czech Republic, VGP has become a leading developer, manager Latvia € 24.6 mm Other and owner of logistics real estate assets Romania 4.8% € 1.0 mm € 57.4 mm 0.2% clustered in business parks across Europe 11.1% n 50/50 Joint
Slide 5: Pure-play pan-European logistics real-estate group
Pure-play pan-European logistics real-estate group n 45 parks in ownership1 Germany: Hungary: # parks: 22 # parks: 2 GAV: €1,019.8mm GAV: €57.5mm Completed/UC GLA: 1,003k m² Completed/UC GLA: 74k m² Remaining dev. GLA: 482k m² Remaining dev. GLA: 12k m² Czech Republic: Romania: # parks: 15 # parks:
Slide 6: 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 7: 2. 1st Half of 2018 – Healthy growth translates in record profits
2. 1st Half of 2018 – Healthy growth translates in record profits
Slide 8: 1st Half 2018 – Another record
1st Half 2018 – Another record n Strong leasing growth n Strong development growth n Strong growth of the VGP European Logistics joint venture portfolio n Strong financial results and balance sheet 8
Slide 9: Strong leasing growth
Strong leasing growth Committed annualised rent income and number of lease contracts (including joint venture at 100%) €105,000 200 Annualised Rent income - (‘000 €) €100,000 €95,000 180 €90,000 €85,000 160 €80,000 €75,000 140 Number of contracts €70,000 €65,000 120 €60,000 €55,000 100 €50,000 €45,0
Slide 10: Gross rental income vs annualised committed leases
Gross rental income vs annualised committed leases NET RENTAL GROWTH - INCL. SHARE OF JV (in € mm) Top ten tenants by annualised Gross Rental Income € 40.0 (Incl JV at 100%) totalling 40.3% as at 30 Jun-18 Amazon Logistik… 7.9% € 35.0 Punto Fa, S.L. 7.8% € 30.0 Rhenus SE & Co. KG 5.7% Drylock Techno
Slide 11: 307,000 m² completed developments in 1st Half 2018
307,000 m² completed developments in 1st Half 2018 E-commerce Amazon – VGP Park Frankenthal, Germany Lidl – VGP Park Berlin, Germany 4PX Express – VGP Park Jenec, Czech Republic Other Lidl – VGP Park Berlin, Germany Rhenus – VGP San Fernando de Henares, Poco – VGP Park Wetzlar, Germany Spain 307,000
Slide 12: Strong growth of the Joint Venture
Strong growth of the Joint Venture Business model Develop n Acquisition of strategic landbank n Focus on business parks n In-house team with capabilities across the development value chain Sell to JV Hold n Sale of income-generating assets to the JV at market value n Long term real estate investor n
Slide 13: €1.2 billion of income generating assets after 24 months
€ 1.2 billion of income generating assets after 24 months JV STRUCTURE 50% 50% VGP European Logistics S.a.r.l. 5.1% 94.9% 100% 100% 100% Subsidiaries Germany Czech Republic Slovakia Hungary in countries FOUR CLOSINGS SINCE MAY 2016 May 2016 / October 2017 / May 2017 Closing GAV: c.€760 million I-II
Slide 14: Joint Venture key metrics (as at 30 Jun-18)
Joint Venture key metrics ( as at 30 Jun-18) n GAV of portfolio € 1.3 billion (€ 1.2 billion income generating + € 0.1 billion pipeline) n Weighted average yield: 5.42% n Occupancy rate: 99.4% n Annualised committed leases of € 68.9 million as at 30 Jun-18 n Weighted average term: 8.0 years (first b
Slide 15: Strong financial results and balance sheet
Strong financial results and balance sheet Net profit for the period (in € mm) Evolution of the gearing ratio 96.0 91.3 86.6 - 7.9 75.0% €1,200 29.2 70.0% 74.8 65.0% Total equity and liabilities (€ mm) €1,000 60.0% 62.5 55.0% 24.8 50.0% 15.2 €800 Gearing rato (%) 45.0% 40.0% 86.6 83.4 €600 35.0% 30.
Slide 16: 3. Future growth
3. Future growth
Slide 17: Future growth
Future growth n New matrix organisation n Strong market dynamics VGP Park Hradek and Nisou, Czech Republic n Current development pipeline n Land sourcing well advanced to VGP Park Kekava, Latvia support future growth n Further geographic expansion VGP Park Wustermark, Germany 17
Slide 18: 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 n Clear objectives n Check and b
Slide 19: Future growth
Future growth n New matrix organisation n Strong market dynamics VGP Park Hradek and Nisou, Czech Republic n Current development pipeline n Land sourcing well advanced to VGP Park Kekava, Latvia support future growth n Further geographic expansion VGP Park Wustermark, Germany 19
Slide 20: Strong market dynamics
Strong market dynamics n Strong economic performance across Europe n E-commerce continues to significantly fuel the demands for lettable space n Cities are growing and existing industrial companies are being pushed out of the city centres to the outskirts of the cities e.g. BMW, German S&M Enterpris
Slide 21: E-commerce continues to be a strong driver …
E-commerce continues to be a strong driver … 21
Slide 22: E-commerce continues to be a strong driver …
E-commerce continues to be a strong driver … 22
Slide 23: Future growth
Future growth n New matrix organisation n Strong market dynamics VGP Park Hradek and Nisou, Czech Republic n Current development pipeline n Land sourcing well advanced to VGP Park Kekava, Latvia support future growth n Further geographic expansion VGP Park Wustermark, Germany 23
Slide 24: Current development pipeline
Current development pipeline Spain Czech 18% Republic 23% Slovakia 455,000 4% Romania m² 4% Latvia 14% Germany Under construction 37% VGP Park Timisoara, Romania Spain Czech 23% Republic 20% Slovakia € 22.6 m 4% Romania 4% Potential rent – Latvia Germany 35% 59% already secured 14% VGP Park Jenec, C
Slide 25: Development potential of landbank as at 30 Jun-18
Development potential of landbank as at 30 Jun-18 Total completed & pipeline 30 Jun-18 (in m²) n Germany 979,283 48% n Czech Republic 437,426 21% n Spain 288,271 14% n Netherlands 0 0% n Slovakia 86,740 4% n Romania 116,984 6% n Hungary 74,128 4% n Latvia 61,845 3% 2,044,676 100% Remaining develpmen
Slide 26: Future growth
Future growth n New matrix organisation n Strong market dynamics VGP Park Hradek and Nisou, Czech Republic n Current development pipeline n Land sourcing well advanced to VGP Park Kekava, Latvia support future growth n Further geographic expansion VGP Park Wustermark, Germany 26
Slide 27: Well advanced land bank to support future growth
Well advanced land bank to support future growth 5,035,260 m² 1,700,000 m² 3,335,260 m² Acquired 1H 2018 2,163,019 m² 1,172,241 m² 1,896,006 m² 267,013 m² 1,241,924 m² 654,082 m² 1,241,924 m² Fully owned Acquired 1H 2018 Acquired Jul-18 Remaining secured Non-binding agreements Secured land bank (own
Slide 28: Land bank – geographic overview
Land bank – geographic overview Strategically located plots of land in Western and Central & Eastern Europe 28
Slide 29: 4. Optimising risk profile of the portfolio
4. Optimising risk profile of the portfolio
Slide 30: Completed sale of Mango GDC for €150 million
Completed sale of Mango GDC for €150 million n On 26 September 2018, VGP announced the successful sale of the Mango Global Distribution Centre in Barcelona (Spain) for €150 million n Realising a significant capital gain n Improving the Group’s risk profile n The Mango GDC was acquired in 2016 togeth
Slide 31: 5. Conclusion
5. Conclusion
Slide 32: Conclusion
Conclusion n Strong market fundamentals n Significant further income growth potential from development and asset management n Land sourcing well advanced to support future growth n Strong balance sheet 32
Slide 33: 6. Q&A
6. Q&A