Slide 1: MLP Group 2022 Results
MLP GROUP 2022 Results March 2023
Slide 2: Agenda and Team
AGENDA AND TEAM 1 MLP AT A GLANCE 3 2 EXECUTIVE SUMMARY 10 3 2022 LEASING RESULTS 22 4 STRONG EXPANSION 32 5 FINANCIAL ACTIVITY IN 2022 38 6 SUSTAINABLE DEVELOPMENT 51 7 ESG STRATEGY 54 Radosław T. Krochta Monika Dobosz Chief Executive Officer Chief Financial Officer
Slide 3: 1. MLP Group at a Glance
1. MLP GROUP AT A GLANCE
Slide 4: Leading Integrated European Logistics Property Platform
1. MLP GROUP AT A GLANCE Leading Integrated European Logistics Property Platform PREMIUM CLASS-A ASSET BASE MLP Group is powerful vertically-integrated business model with full range of in-house capabilities, 1 from property development to management. Very experienced team – each senior team member
Slide 5: Strategy of Own Developments: Vertical integration
1. MLP GROUP STRATEGY OF OWN DEVELOPMENTS Vertical integration Own property Location Search Design & Permit Construction Fit-out MLPG Energy management MLPG provides an MLPG applies and obtains Each time before the After construction of the After move-in, MLPG park MLPG is energy overview of potenti
Slide 6: Our Portfolio: Two property types
1. OUR PORTFOLIO Two property types BIG BOX (i.e. large-scale) warehouses, primarily addressing City Logistics (MLP Business Parks) are operating as MLP e-commerce growth and increased demand from light Business Parks and offering small warehouse units (ranging industry customers, driven by such fac
Slide 7: Premium Class-A Asset Base
1. OUR PORTFOLIO Premium CLASS-A Asset Base Clear height of warehouse space: 10 m or 11.5 m Gas heaters above ESFR sprinkler docks installation LED Lighting 300 lux Skylights 3% of roof area Clear height Fire load above –10/11,5 m 4 000 MJ/sqm Hörmann / Novoferm gates 6 T/sqm Column grid of 12 m x 2
Slide 8: Premium Class-A Asset Base
1. OUR PORTFOLIO Premium CLASS-A Asset Base Buildings with daylight access High standard offices on three sides Glass façade Air conditioning Ample parking places for trucks and personal cars. 8 MLP GROUP 2022 RESULTS
Slide 9: Strong operating position at an attractive valuation
1. MLP GROUP AT A GLANCE Strong operating position at an attractive valuation WAULT (years) LTV 55% 12.8 44% 45% 39% 41% 8.3 33% 35% 7.1 7.5 6.5 6.1 26% 5.6 24% 5.2 MLP WDP VGP Montea Tritax Catena CTP Intervest MLP WDP VGP Montea Segro Tritax Catena CTP Intervest Source: Bloomberg, Dealogic, Compan
Slide 10: Executive Summary
GROUP EXECUTIVE SUMMARY _ | tl el hell sal ——
Slide 11: MLP Group - outperformance
2. YE 2022 EXECUTIVE SUMMARY MLP GROUP - outperformance MLP GROUP - OUTPERFORMANCE IN 2022 Like-for-Like rental Rental revenue Portfolio valuation Company Country of origin LTV growth growth y/y y/y MLP +10.0% +31% +30.0% 33% CTP +4.5% +35% +33.0% 45% SEGRO +6.7% +19% -11.0% 32% WDP +4.0% +14.6% +9.
Slide 12: MLP Group 2022 vs. 2021
2. YE 2022 EXECUTIVE SUMMARY MLP Group 2022 vs. 2021 LEASE CONTRACTS RENTAL LIKE FOR LIKE INDEXED WITH PORTFOLIO REVENUES RENTAL GROWTH EURO HICP FFO GROWTH VALUATION WITHOUT CAP +31% +10% 100% +31% +59% UPLIFT ON RENT CONSTRUCTION REVIEWS AND WITH VOLUME OF LEASED NAV GROWTH RENEWALS PRE -LET CONTR
Slide 13: Key points in 2022
2. YE 2022 EXECUTIVE SUMMARY Key points in 2022 1 The Covid-19 pandemic has not impacted MLPG activity 2 Strong tenants' portfolio – none of MLPG’s tenants run into insolvency nor significant liquidity problems - very restrictive and conservative tenats acceptance policy brings sufficient comfort le
Slide 14: Key points in 2022
2. YE 2022 EXECUTIVE SUMMARY Key points in 2022 6 New plots acquisition in total 37.7 ha with additional development potential 185 000 sqm: 7 Solid financial position (a) LTV at 33.1%, high interest coverage ratio 3.3 x ICR (b) Long average debt maturity 5.1 years (c) Increasing FFO from YE 2021 EUR
Slide 15: Portfolio value and leases due to expire
2. YE 2022 EXECUTIVE SUMMARY Portfolio Vault and leases due to expire 7.1 years 100% 43 % Average term of lease Retention rate agreements 18% 15% 14% 5% 2024 2025 2026 2027 >2028 % of leases due to expire 15 MLP GROUP 2022 RESULTS
Slide 16: Average Market Investment Yields
2. YE 2022 EXECUTIVE SUMMARY Average Market Investment yields: Poland, Germany, Austria & Romania POLAND 2022 1H 2022 2021 2020 2019 2018 Warsaw 5.00 4.50 5.25 6.00 6.25 6.75 Silesia 5.30 5.00 5.25 6.25 6.25 6.75 Central Poland 5.30 5.00 5.25 6.15 6.25 6.75 Poznań 5.30 5.00 5.25 6.25 6.50 6.75 Wrocł
Slide 17: Yielding Projects: Poland & Germany
2. YIELDING PROJECTS Poland & Germany MLP POZNAŃ MLP POZNAŃ WEST II MLP WROCŁAW MLP GLIWICE MLP PRUSZKÓW I MLP PRUSZKÓW II MLP LOGISTIC PARK UNNA MLP BUSINESS PARK BERLIN I 17 MLP GROUP 2022 RESULTS
Slide 18: Poland, Germany, Austria & Romania project development
2. YE 2022 EXECUTIVE SUMMARY Poland, Germany, Austria & Romania PERCANTAGE OF PROJECTS DEVELOPMENT AS AT DECEMBER 2022 MLP Gorzów MLP Zgorzelec MLP Czeladź MLP Pruszków II MLP Wrocław West MLP Poznań West MLP Poznań MLP Łódź MLP Business Park Schalke MLP Business Park Niederrhein MLP Idstein MLP Bus
Slide 19: Projects Under Construction
2. PROJECTS UNDER CONSTRUCTION Poland & Germany & Austria & Romania MLP BUSINESS PARK MLP ZGORZELEC MLP BUSINESS PARK POZNAŃ MLP BUCHAREST WEST NIEDERRHEIN MLP GORZÓW MLP CZELADŹ MLP BUSINESS PARK VIENNA MLP ŁÓDŹ 19 MLP GROUP 2022 RESULTS
Slide 20: Phasing of projects
2. YE 2022 EXECUTIVE SUMMARY Phasing of projects in Poland, Germany, Romania & Austria PHASING OF THE PROJECTS MLP Łódź MLP Business Park Łódź MLP Business Park Poznań MLP Poznań West (Dąbrówka) MLP Gorzów MLP Wrocław West MLP Pruszków II MLP Poznań (Koninko) MLP Czeladź MLP Zgorzelec MLP Gliwice ML
Slide 21: Key points in YE 2022 - Financial position
2. YE 2022 EXECUTIVE SUMMARY Key points in YE 2022 - Financial position As at 31 December 2022: LTV1) 33.1% ICR 3.3x NAV in PLN mn 2 498 Financial indebtness in EUR mn (all-in) among which: 375 – Bank loans (secured on MLP's assets) in EUR mn 294 – Bonds (unsecured on MLP's assets) in EUR mn 81 Bank
Slide 22: Key points in YE 2022 - FFO
2. YE 2022 EXECUTIVE SUMMARY Key points in YE 2022 - Financial position FFO IN EUR MN FFO IN PLN MN 86.8 18.5 59% 56% 54.7 11.9 2021 2022 2021 2022 FFO does not include revenues and costs related to Development Agreements & other operating activty. 22 MLP GROUP 2022 RESULTS
Slide 23: Key points in 2022 - Revenues and Costs
2. YE 2022 EXECUTIVE SUMMARY Key points in 2022 - Financial position REVENUES COSTS IN PLN MN IN PLN MN +39% 71.3 Developed space Developed space Recharge of utility costs as at 31.12.2021 as at 31.12.2022 +71% 1.9 762 823 sqm 986 126 sqm 41.6 54.8 Recharge of service charges +26% +36% 40.2 Rental i
Slide 24: Leasing Results
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Slide 25: New contracts in 2022
3. LEASING RESULTS New contracts in 2022 NEW LEASING CONTRACTS POLAND, GERMANY & ROMANIA – 174 437 SQM LEASED AREA IN SQM 163 529 150 140 649 130 110 93 347 87 840 90 951 90 82 809 70 56 500 50 30 12 416 12 165 5 040 5 868 5 242 10 -10 2017 2018 2019 2020 2021 2022 Poland Germany Romania • 65% of ne
Slide 26: Our Clients: Partnership that deliver robust income streams
3. LEASING RESULTS - OUR CLIENTS Partnership that deliver robust & growing income streams STRONG OPERATING METRICS Leased Occupancy Retention Rent WAULT area rate rate collection 1 064 290 sqm 98% 100% 7.1 yrs 98% TENANTS BY SECTOR LEASED AREA 2022 Production E-commerce 23% Production 8% E-commerce
Slide 27: Our tenants - diversified tenants' portfolio
3. LEASING RESULTS Our tenants – diversified tenants’ portfolio TOP 10 TENANTS IN SQM 57 195 57 195 56 261 46 654 45 716 Top 10 Tenants 41 762 provide 30 430 26 690 42% of annual rental 26 517 income 26 407 27 MLP GROUP 2022 RESULTS
Slide 28: Main leasing deals
3. LEASING RESULTS Main leasing deals REPEAT CLIENTS NEW TENANTS 28 MLP GROUP 2022 RESULTS
Slide 29: Prime headline rents, warehouses over 5,000 sqm
3. LEASING RESULTS Prime headline rents, warehouses over 5,000 sqm RENTS IN EUR/SQM/YEAR European average Frankfurt Berlin Poznań Warsaw II 94 56 58 Brussels 88 +12.2 % 65 Katowice 55 Q4 2022 vs Q4 2021 Munich 48 markets 108 Vienna 21 countries 90 Bucharest 54 Source: BNP Paribas Real Estate 29 MLP
Slide 30: European vacancy rates in 2022
3. LEASING RESULTS European vacancy rates in 2022 Poland Germany Austria Romania Netherlands 4.1% 1.5% 0.9% 5.6% 1.6% Euro avarage 3.5% Source: Savills, European Logistics outlook Q3 2022 30 MLP GROUP 2022 RESULTS
Slide 31: Future of the supply chain
3. LEASING RESULTS Future of the supply chain OCCUPIERS STRATEGY TO MANAGE SUPPLY CHAIN OVER NEXT 3 YEARS 42% 40% 39% 30% 25% 20% Re/near shoring Reduce the reliance on Inreasing the quantity of Invest in automation Reduce C02 Expand/consolidate imports stock held footprint Source: Savills, European
Slide 32: Geographical locations considered for near shoring
3. LEASING RESULTS Geographical locations considered for near shoring BENEFITIAL MARKETS 27% 17% 28% 28% 29% 22% 35% 43% 25% 22% 28% 30% 10% 20% 18% 18% 10% 15% 12% 11% 3% Germany Other Western Benelux Poland Hungary Other CEE countries Romania, Serbia or European countries Macedonia very likely lik
Slide 33: Industrial forecast for 2023 - main parameters
3. LEASING RESULTS Industrial forecast for 2023 – main parametres Demand for logistics space, across all markets where we operate, is unbroken and the combination of bounce back in global economy, continuing e-commerce demand and restructuring of supply chains will keep demand for logistics space hi
Slide 34: 4. Strong Expansion
4. STRONG EXPANSION
Slide 35: Strong Expansion and new markets
4. STRONG EXPANSION and new markets Space Reserved New plots potential plots acqusition 1.6 mn 208 ha 37.7 ha sqm Gorzów Poland Benelux Berlin Wielkopolski Warsaw Unna Poznań Niederrhein Łódź Zgorzelec Gelsenkirchen Wrocław Lublin Cologne Bieruń Germany Main new plots acquired Munich Vienna in 2022:
Slide 36: Strong Expansion and new plots reservation
4. STRONG EXPANSION and new plots reservation Gdańsk Poland Benelux Berlin Poznań Essen Linden Lędziny Rzeszów New plots reservation in 2022: Germany • Łódź – 25 ha • Poznan– 20 ha • Gliwice – 12 ha • Kraków – 5 ha Austria Romania • Linden – 20 ha • Berlin – 5 ha • Essen – 9.5 ha 36 MLP GROUP 2022 R
Slide 37: Accelerated Landbank Acquisitions
4. ACCELERATED LANDBANK ACQUISITIONS Replenishing & growing development capacity 52% x2 Our land and option in total 52% situated adjacent to 336 ha which will enable our existing or new parks the construction of approx. 1.6 milion sqm of space POTENTIAL DEVELOPMENT OF LANDBANK POTENTIAL DEVELOPMENT
Slide 38: 5. Financial Activity in 2022
5. FINANCIAL ACTIVITY IN 2022
Slide 39: Key points in 2022 - Financial position
5. FINANCIAL DATA Key points in 2022 - Financial position YE 2022 YE 2021 YE 2020 YE 2022 YE 2021 YE 2020 CHANGE YE 2022 YE 2021 CHANGE YE 2020 CHANGE (IN PLN (IN PLN (IN PLN (IN PLN (IN PLN (IN PLN (IN %) (IN %) (p.p.) (IN %) MN) MN) MN) MN) MN) MN) INVESTMENT 4 433.0 3 394.5 31% 2 330.9 REVENUES 2
Slide 40: Net Asset Value Growth
5. FINANCIAL DATA Net Asset Value Growth NET ASSET VALUE (in mn PLN) NET ASSET VALUE (in mn EUR) 533 2 498 397 1 825 263 1 212 220 939 190 815 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 40 MLP GROUP 2022 RESULTS
Slide 41: Rental income and like-for-like rental growth
5. FINANCIAL DATA RENTAL INCOME LIKE-FOR-LIKE RENTAL GROWTH IN PLN MN MAIN DRIVERS +10% 9.6 2.5 24.0 4.9% +6% renegotiations/ new contracts 116.8 indexation 152.9 3.8% 2.6% exchange rate change 0.3% 2.3% 2.4% Rental income Passing rent on Rent generated by Rent generated by Rental income 2021 2022 2
Slide 42: Annualized future rental income
5. FINANCIAL DATA ANNUALIZED FUTURE RENTAL INCOME BASED ON ALL SIGNED CONTRACTS (IN MN PLN) ANNUALIZED RENTS ANNUALIZED RENTS TOTAL ANNUALIZED FROM CONTRACTS SIGNED FROM NEW CONTRACTS RENTAL INCOME BEFORE 2022 AND RENEWALS SIGNED IN 2022 72% 28% 100% 776 214 sqm 288 076 sqm 1 064 290 sqm 3.4 55.6 20
Slide 43: Loans and bonds
5. FINANCIAL DATA Loans and bonds EXISTING BANK LOANS BY MATURITY • MLPG is a reliable financing partner, with a solid IN EUR MN financial position. 167 • Having signed bank loan agreements with Polish and German banks MLP has secured financing of EUR 79 mn for further development. 34 • On 11th of M
Slide 44: Yield widening offset with increase in ERVs
5. FINANCIAL DATA YIELD WIDENING SIGNIFICANTLY OFFSET WITH INCREASE IN ERVS PROPERTY YIELD* POLAND ERV growth per country + 36bps GERMANY POLAND +16.9% + 20bps GERMANY +15.7% ROMANIA ROMANIA +7.4% - 46bps PORTFOLIO + 29bps -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% Reversionary Yield 2021 Reversionary Yield
Slide 45: Change of fair value of existing buildings
5. FINANCIAL DATA CHANGE OF FAIR VALUE (IN THS) – EXISTING BUILDINGS YE 2022 VS YE 2021 900 000,0 800 000,0 45 142 EUR 700 000,0 224 778 EUR 600 000,0 500 000,0 805 390 400 000,0 EUR 300 000,0 535 470 EUR 200 000,0 100 000,0 0,0 Fair value as at YE2021 Fair value of the new buildings Change of : Fai
Slide 46: Gross asset value by asset type and country
5. FINANCIAL DATA GROSS ASSET VALUE BY ASSET TYPE: BY COUNTRY as at 31.12.2022 2% 2% 10% 4% 14% POLAND EXISTING SPACE GERMANY UNDER CONSTRACTION ROMANIA LAND AUSTRIA 82% 86% 3% 2% 10% as at 31.12.2021 13% POLAND 16% EXISTING SPACE GERMANY UNDER CONSTRACTION ROMANIA LAND AUSTRIA 74% 82% MLP GROUP 202
Slide 47: Change of valuation per country 2022
5. FINANCIAL DATA CHANGE OF VALUATION PER COUNTRY 2022 PORTFOLIO POLAND GERMANY AUSTRIA ROMANIA 28.5% 28.8% 35.7% -3,1% 13.9% • . Yields change (+/-) 2022 vs 2021: BY: + 29bps + 36bps + 20bps n/a - 46bps The chart above does not include value of Perpetual Usufruct. 47 MLP GROUP 2022 RESULTS
Slide 48: Change in property valuation in 2022 (PLN) per quarter
5. FINANCIAL DATA CHANGE IN PROPERTY VALUATION IN 2022 (IN THS PLN) - PER QUARTER FX + 120 983 4 485 879 - 163 036 + 67 732 4 390 575 Valuation change + 168 958 Property value presented in FS for each quarter 4 195 938 + 642 778 + 21 331 • . 3 531 829 + 141 528 + 38 694 3 351 606 YE 2021 1Q 2022 2Q
Slide 49: Change in property valuation in 2022 (EUR) per quarter
5. FINANCIAL DATA CHANGE IN PROPERTY VALUATION IN 2022 (IN THS EUR)- PER QUARTER Valuation change between quarters Property value presented in FS for each quarter + 15 014 EUR +24 710 EUR +137 328 EUR 936 185 EUR 921 163 EUR 896 453 EUR +30 420 EUR 759 125 EUR 728 705 EUR • . YE 2021 1Q 2022 2Q 2022
Slide 50: The composition of the revaluation
5. FINANCIAL DATA THE COMPOSITION OF THE REVALUATION IN PLN MN 4Q 2022 ( 130) ( 131) 68 Loss on revaluation: -194 3Q 2022 ( 128) 138 121 Gain on revaluation: 131 2Q 2022 ( 174) 20 • 643 . Gain on revaluation: 490 1Q 2022 ( 152) 39 142 Gain on revaluation: 28 ( 300) ( 200) ( 100) - 100 200 300 400 50
Slide 51: 6. Sustainable Development
6. SUSTAINABLE DEVELOPMENT
Slide 52: Green Industrial Developer: Energy
6. GREEN INDUSTRIAL DEVELOPER Energy 100% GREEN ENERGY DELIVERED TO OUR CLIENTS MLP has contracted renewable energy to all parks by 2024 Importance to tenants: • Zero carbon emission • Tenant’s ESG ambitions • Renewable Energy as a crucial factor in the tendering processes both for tenant’s supplier
Slide 53: Green Industrial Developer: Solar panels
6. GREEN INDUSTRIAL DEVELOPER Solar panels ENERGY PRODUCTION ULTIMATE INCOME SOLAR PANELS INSTALLED CAPACITY Poland: (MWp) • 2022: 242 MWh – PLN 0.17 mln 10.55 • 2023: 3 025 MWh – PLN 2.27 mln • 2024: 6 140 MWh – PLN 4.61 mln Germany (Berlin and Unna) 6.46 6.46 • 2023: 1.2 MWp – EUR 150 ths will be
Slide 54: 7. ESG Strategy
7. ESG STRATEGY
Slide 55: ESG Strategy for MLP Group S.A.
7. ESG STRATEGY For MLP GROUP S.A. E – ENIVIRONMENTAL GOAL • Reducing the company's negative impact on the environment Tasks to achieve this goal: • renewable energy from PV + Energy efficiency • reducing water consumption • waste management • bio-diversity S - SOCIAL GOAL • Drive a comprehensive ef
Slide 56: ESG Strategy for MLP Group S.A.
7. ESG STRATEGY For MLP GROUP S.A. G - GOVERNANCE GOAL Incorporate ESG into business operations and reconcile corporate and social interests Tasks to achieve this goal: • consider issues relating to the environmental impact of projects, • human rights and climate change • in decision-making processe
Slide 57: Thank you!
Thank you! MLPGROUP MLP GROUPS.A. S.A.• 3 • ul. Maja3 Maja 8, 05-800 8, 05-800 Pruszków, Pruszków, tel. 738 +48 22 22 738 30 10 30 10 www.mlpgroup.com