Slide 1: MLP Group Results 2021
MLP GROUP Results 2021 March 2022
Slide 2: Agenda and Team
AGENDA AND TEAM 1 MLPG AT A GLANCE 3 2 EXECUTIVE SUMMARY 7 3 STRATEGIC GOALS 2021-2024 11 4 2021 LEASING RESULTS 22 5 NEW PLOTS ACQUSITIONS 28 6 2021 FINANCIAL DATA 36 7 SUSTAINABLE DEVELOPMENT 45 Radosław T. Krochta Monika Dobosz Agnieszka Góźdź Chief Executive Officer Chief Financial Officer Chief
Slide 3: 1. MLP Group at a Glance
1. MLP GROUP AT A GLANCE
Slide 4: Leading Integrated European Logistics Property Platform
MLP GROUP 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 Offers class-A warehouses, with strong commitment to sustainabil
Slide 5: Strategy of Own Developments: Vertical Integration
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 potential
Slide 6: Our Portfolio: Two Property Types
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 cu stomers, driven by such factors
Slide 7: 2. YE 2021 Executive Summary
2. YE 2021 EXECUTIVE SUMMARY
Slide 8: Executive Summary: YE 2021 vs. YE 2020
EXECUTIVE SUMMARY MLP Group YE 2021 vs. YE 2020 LEASED AREA NET PROFIT NAV +15% +182% +51% RENTAL VACANCY RATE UNDER REVENUES CONSTRUCTION +15% -4 p.p. +68% 8 Results YE 2021
Slide 9: Operational & Financial Stability
OPERATIONAL & FINANCIAL STABILITY We are very well prepared to face challenges of future • All lease contracts are indexed to European inflation rates. Thus, an increase in inflation causes an automatic increase in revenue. • All rents are either denominated or expressed in EUR, which significantly
Slide 10: Ukraine Update
UKRAINE Update WHAT WE KNOW TODAY: WHAT WE BELIEVE FOR THE NEAR TERM: • Overall limited impact • High level of uncertainty, inflationary pressures • No assets in Ukraine or Russia • Structural sector drivers expected • Close contact with key tenants to continue • Having solid market and financial •
Slide 11: 3. Strategic Goals 2021-2024
3. STRATEGIC GOALS 2021-2024
Slide 12: Key Basic Strategic Goals of MLP Group
STRATEGIC GOALS 2021-2024 The key basic strategic goals of MLP Group 1 Double NAV value from 2021 by year 2024 and consequently exceed EUR 800 million at the end of 2024. 2 Triple the amount of EBITDA excluding revaluation, reaching app EUR 67 million in 2024. 3 Organic growth approx. 35% yearly To
Slide 13: Supplementary Goals
STRATEGIC GOALS 2021-2024 Supplementary goals 1 Building economic scale in the existing strategic markets - Poland, Germany, Austria, and Romania through developing of urban logistic and big-box projects 2 Analysing and investing in new potential markets addressing the tenants’ needs and ecommerce d
Slide 14: Financial Goals 2021-2024 (1/6): NAV
STRATEGIC GOALS 2021-2024 Financial goals for years: 2021 – 2024 (1/6) MLPG NAV IN EUR MN • Significant growth in 2022 Germany/Austria NAV results from development of projects secured in 2019/2020 14 Results YE 2021
Slide 15: Financial Goals 2021-2024 (2/6): Total Rental Incomes
STRATEGIC GOALS 2021-2024 Financial goals for years: 2021 – 2024 (2/6) MLPG TOTAL RENTAL INCOMES IN EUR MN 15 Results YE 2021
Slide 16: Financial Goals 2021-2024 (3/6): Rental Incomes
STRATEGIC GOALS 2021-2024 Financial goals for years: 2021 – 2024 (3/6) MLPG RENTAL INCOMES IN EUR MN • Growth in rental income results from new rentals, increase of rent in renewals of current lease agreements and maintaining 99% retention rate. 16 Results YE 2021
Slide 17: Financial Goals 2021-2024 (4/6): EBITDA
STRATEGIC GOALS 2021-2024 Financial goals for years: 2021 – 2024 (4/6) MLPG EBITDA WITHOUT REVALUATION IN EUR MN 17 Results YE 2021
Slide 18: Financial Goals 2021-2024 (5/6): CAPEX
STRATEGIC GOALS 2021-2024 Financial goals for years: 2021 – 2024 (5/6) CAPEX IN % • Increase in unit construction costs is reflected in rentals growth. 18 Results YE 2021
Slide 19: Financial Goals 2021-2024 (6/6): FFO
STRATEGIC GOALS 2021-2024 Financial goals for years: 2021 – 2024 (6/6) FFO IN EUR MN • FFO growth is related to growth in the portfolio and continuous decrease in financial costs due to portfolio refinancing 19 Results YE 2021
Slide 20: Strategic Targets Exceeded
STRATEGIC TARGETS EXCEEDED Diligent execution of strategy in 2021 STRATEGIC GOALS EXECUTION IN 2021 ACTUAL STRATEGIC TARGET ACTUAL YOY VARIANCE (2020) (2021) (2021) OCCUPANCY RATE 94.0% 95.0% 97.6% 3.6 p.p. 2.6 p.p. ANNUAL LEASING 205 K SQM 250 K SQM 310 K SQM 51% 24% TAKE-UP LTV 42.4% < 50% 36.9% -
Slide 21: 4. 2021 Leasing Results
4. 2021 LEASING RESULTS 21
Slide 22: Our Portfolio: High-quality, Resilient and Stable Foundation
OUR PORTFOLIO High-quality, resilient and stable foundation for growth SIZEABLE AND GROWING LOGISTICS & INDUSTRIAL PLATFORM OWNED INVESTMENT DIVERSIFIED PORTFOLIO CLIENTS App 1mn >300 sqm EUROPEAN WELL MARKETS LOCATED PARKS 4 20 22 Results YE 2021
Slide 23: Our Clients
OUR CLIENTS Partnership that deliver robust & growing income streams STRONG OPERATING METRICS TOP TEN CLIENTS BY GLA TENANT GLA THS SQM Occupancy Retention Rent L-ShopTeam (DE) 56 500 rate rate collection Electrolux (PL) 41 250 98% 99% 98% SPAR (PL) 37 605 Auto Partner (PL) 27 692 Annual Bega Gruppe
Slide 24: Portfolio Vault: Leases Due to Expire
PORTFOLIO VAULT Leases due to expire 70% 65% 60% 50% 40% 30% 20% 12% 10% 8% 10% 5% 0% 2022 2023 2024 2025 >2026 % of leases due to expire 24 Results YE 2021
Slide 25: Customer Satisfaction
2021 LEASING RESULTS Customer satisfaction CUSTOMER SATISFACTION IN 2021 WAS RATED BY 85.8% 71.6% MLP Pruszków I 84.8% 88.2% 72.8% MLP Pruszków II 83.2% 86.5% 78.4% MLP Wrocław, MLP Czeladź, MLP Gliwice 85.0% 88.9% 85.4% MLP Poznań, MLP Poznań West, MLP Teresin 90.0% 93.5% 77.0% Average 85.8% 89.2%
Slide 26: New Leasing Contracts
NEW LEASING CONTRACTS Another strong year of development LEASED AREA 310,000 sqm leased space (including reletting) IN SQM 212,000 sqm 161 688 space under construction 150 130 22 projects under preparation and permitting 110 93 347 87 840 90 951 90 82 809 EUR 36 mn 70 56 500 Annualized rental income
Slide 27: Plots Available for Development in Poland
NEW CONTRACTS Plots available for development in POLAND POTENTIAL FOR DEVELOPMENT IN % 50% 43% 41% 39% 45% 40% Included new plot’s acquisition 35% 43% 30% 25% 20% Included lease 15% agreements concluded in 1H 10% 28% 23% 2021 5% 0% 2017 2018 2019 2020 2021 Space to be built 27 Results YE 2021
Slide 28: Construction Costs vs. Capital Value
CONSTRUCTION COSTS VS. CAPITAL VALUE Poland, Germany, Austria CONSTRUCTION COSTS VS. CAPITAL VALUE PER BUILDINGS’ IN SQM POLAND GERMANY & AUSTRIA 1 600 EUR 1 600 EUR 1 400 EUR 1 400 EUR 1 200 EUR 1 200 EUR 1 000 EUR 1 000 EUR 800 EUR 800 EUR 1 500 EUR 600 EUR 600 EUR 600 EUR 400 EUR 900 EUR 400 EUR
Slide 29: 5. New Plot's Acquisition
5. NEW PLOT’S ACQUISITION
Slide 30: Strong Expansion and New Markets
STRONG EXPANSION and new markets Space Space Under Reserved New plots potential completed construction plots acqusition 1.5 mn 0.8 mn 0.2 mn 150 ha 59.3 ha sqm sqm sqm Benelux Gorzów Wielkopolski Poland Berlin Warsaw Unna Poznań Niederrhein Łódź Zgorzelec Gelsenkirchen Wrocław Lublin Cologne Bieruń
Slide 31: Accelerated Landbank Acquisitions
ACCELERATED LANDBANK ACQUISITIONS Replenishing & growing development capacity EUR 46 mn 52% x2 EUR 76 mn EUR 46 mn invested 52% situated adjacent to Our land and option in Total land bank valued at increasing landbank by our existing or new parks total 177 ha which will EUR 76 mn 20% (2020: EUR 31.8
Slide 32: Accelerated Landbank Acquisitions: MLP Business Park Berlin
ACCELERATED LANDBANK ACQUISITIONS Replenishing & growing development capacity MLP Business Park Berlin 32 Results YE 2021
Slide 33: Accelerated Landbank Acquisitions: MLP Poznań West
ACCELERATED LANDBANK ACQUISITIONS Replenishing & growing development capacity MLP Poznań West 33 Results YE 2021
Slide 34: Accelerated Landbank Acquisitions: MLP Unna
ACCELERATED LANDBANK ACQUISITIONS Replenishing & growing development capacity MLP Unna 34 Results YE 2021
Slide 35: Accelerated Landbank Acquisitions: MLP Łódź
ACCELERATED LANDBANK ACQUISITIONS Replenishing & growing development capacity MLP Łódź 35 Results YE 2021
Slide 36: 2021 Leasing Market: General Information
2021 LEASING MARKET General information UNDER EXISTING WAREHOUSE GROSS TAKE-UP PRIME RENT CONSTRUCTION VACANCY RATE (MN SQM) (MN SQM) (EUR/SQM/MONTH) (MN SQM) 3.9 Big Box Poland 23.9 4.5 3.8% 7.5 5.5 SBU prime 7.20 Germany 75.6* 4.6 < 3% 8.7 avg. 5.00 – 5.00 Austria 5.4 Austria 0.3 prime 6.10 Austri
Slide 37: 6. Finance at a Glance in 2021
6. FINANCE AT A GLANCE IN 2021
Slide 38: Financial Data: Key Points in YE 2021
FINANCIAL DATA Key points in YE 2021 - Financial position YE 2021 YE 2020 YE 2020 YE 2021 YE 2020 CHANGE YE 2021 (IN PLN (IN PLN CHANGE (IN PLN CHANGE (IN %) (IN %) (p.p.) (IN PLN MN) MN) MN) MN) INVESTMENT 3 394.5 2 330.9 46% REVENUES 200.6 190.7 5% PROPERTY GROSS MARGIN1) 64.9 58.6 6 p.p. Cash and
Slide 39: Financial Data: Revenues and Costs
FINANCIAL DATA Key points in YE 2021 - Financial position REVENUES COSTS IN PLN MN IN PLN MN +5.2% Developed space Developed space as at 31.12.2020: as at 31.12.2021: 1.9 Income related to Development Agreement 17.7 688 672 sqm* 762 823 sqm +24% 41.6 Recharge of utility costs 33.6 +0.2% Recharge of
Slide 40: Financial Data: LTV, ICR and Debt
FINANCIAL DATA Key points in YE 2021 - Financial position As at 31 December 2021: FFO LTV1) 36.9% 14 IN EUR MN ICR2) 3.3x 13 12.7 1 825 12.0 NAV in PLN mn 12 321 11 10.2 Financial debts in EUR mn (all-in) 10 among which: 226 9 – Bank loans (secured on MLP's assets) in EUR mn – Bonds (unsecured on ML
Slide 41: Significantly Strengthened Capital Structure
FINANCIAL DATA Significantly strengthened capital structure BANK BORROWINGS AND OTHER DEBT INSTRUMENTS BY MATURITY IN EUR THS 140 000 120 000 100 000 UNSECURED DEBT 80 000 60 000 34.3% 40 000 20 000 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Bank Loans Bonds 41 Results YE 2021
Slide 42: NAV Change Drivers YE 2021 vs YE 2020
FINANCIAL DATA Key points in YE 2021 - Financial position In PLN ths CONTRIBUTION OF CHANGE IN FAIR VALUE BY COUNTRY NAV at 31st December 2021 1 825 YE 2021 VS YE 2020 NAV at 31st December 2020 1 212 INCREASE: 613 6% MAIN DRIVERS OF THE INCREASE: 18% 1. Share capital increase 124 POLAND 2. Change of
Slide 43: Strong Revaluation Gain
FINANCIAL DATA Strong revaluation gain REVALUATION INCOME SPLIT INVESTMENT PROPERTY VALUE IN EUR MN IN EUR THS 800 000 721 990 700 000 592 020 600 000 491 093 500 000 444 260 400 000 300 000 200 000 92 350 100 000 30 650 22 400 15 220 16 183 0 - Poland Germany Austria Romania TOTAL 31 December 2021
Slide 44: Net Asset Value Growth
FINANCIAL DATA Net Asset Value Growth NET ASSET VALUE IN PLN MN 2 000 1 825 1 800 1 600 CAGR: +19% 1 400 1 212 1 200 1 000 939 815 800 726 647 676 558 600 509 374 400 320 200 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 44 Results YE 2021
Slide 45: Funds From Operations (FFO)
FINANCIAL DATA FFO FUNDS FROM OPERATIONS (FFO) IN EUR MN 744 522 sqm 672 578 sqm 571 416 sqm 472 301 sqm 432 414 sqm 290 913 sqm 12.7 268 569 sqm 10.2 8.5 7.4 5.6 6.1 5.2 YE 2015 YE 2016 YE 2017 YE 2018 YE 2019 YE 2020 YE 2021 FFO Space built and leased (sqm) - as at the date FFO does not include re
Slide 46: 7. Sustainable Development: Modern Design & Well-being
7. SUSTAINABLE DEVELOPMENT MODERN DESIGN & WELL-BEING
Slide 47: Green Industrial Developer: Sustainability and Innovation
GREEN INDUSTRIAL DEVELOPER Sustainability and innovation • Implementing a strategic project to build solar PV farms on the roofs of its existing and new logistics parks. • Generate between 12 to 14 GWh of green energy in 2024 100% RENEWABLES • The green energy will be used primarily for internal con
Slide 48: Green Industrial Developer: PV Power Plants Programme
GREEN INDUSTRIAL DEVELOPER PV Power Plants Programme POLAND: GERMANY & AUSTRIA: • MLP Business Park Berlin 750 kWp • Until end of 2022 installation of approximately 6,3 MWp • Expected income 60k EUR 2022 of total power in 11 MLP Parks, 100k sq m of roofs. • MLP Unna 650 kWp • Expected income of appr
Slide 49: PV Power Plants Programme in Poland
GREEN INDUSTRIAL DEVELOPER PV Power Plants Programme in Poland WE ALREADY BUILT PV INSTALLATIONS: WE ARE BUILDING NOW: IN NEXT STEP WE WILL DEVELOP: • MLP Poznań West II • MLP Poznań build. A • MLP Pruszków I build. D1-D2 PV power ~ 500 kWp PV power ~ 50 kWp PV power ~ 950 kWp • MLP Pruszków II buil
Slide 50: PV Power Plants Programme in Germany
GREEN INDUSTRIAL DEVELOPER PV Power Plants Programme in Germany WE ALREADY BUILT PV INSTALLATIONS: • MLP Business Park Berlin PV power ~ 500 kWp In this year we will develop next: • MLP Business Park Berlin PV power ~ 250 kWp • MLP Unna PV power ~ 530 kWp Total power of PV in MLP logistic parks in P
Slide 51: 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