Slide 1: VGP Company Presentation
VGP Company Presentation August 2020 www.vgpparks.eu
Slide 2: 1. Introduction to VGP
1. Introduction to VGP
Slide 3: 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 tr
Slide 4: Overview of existing VGP parks (August 2020)
The Continental European pure-play logistics real-estate group (cont’d) Overview of existing VGP parks (August 2020) 4
Slide 5: Sustainable development goals for 2020 onwards
The Continental European pure-play logistics real-estate group (cont’d) Sustainable development goals for 2020 onwards Launch of VGP Renewable Energy N.V. 18.1MW of PV solar installed and further 17.6 MW in pipeline Target 100% BREEAM Very Good certification for new developments All projects launched
Slide 6: Successful track record of geographic expansion and continued delivery across markets
Successful track record of geographic expansion and continued delivery across markets 2019 Expansion to Portugal Expansion of 2017 partnership Fully-marketed – launch of 2nd Joint secondary Venture (50/50) with equity offering (reaching 37% free float) 2011 Sale of Czech 2015 2020 assets to Expansio
Slide 7: Proven ability to rapidly convert acquired land into fully-let and operational parks
Proven ability to rapidly convert acquired land into fully-let and operational parks Total land bank secured (Mio. m²) Completed1 gross leasable area (‘000 m²) 4,000 3,730 3,500 900 3,000 7.7 2,810 2,522 Under 2,500 717 0.9 option 900 1,996 900 2,000 146 1,651 719 1,500 288 1,191 642 6.9 446 2,179 6
Slide 8: Proven track record of developing unique and high quality properties
Proven track record of developing unique and high quality properties across strategic locations with blue chip tenants VGP Park Frankenthal VGP Park Chomutov VGP Park Rodgau VGP Park München Germany Czech Republic Germany Germany Completed 2018 Completed 2017 Completed 2015 – 2016 Construction 2019
Slide 9: Proven track record of developing properties (cont'd)
Proven track record of developing unique and high quality properties across strategic locations with blue chip tenants (cont’d) VGP Park San Fernando VGP Park Nijmegen VGP Park Timisoara VGP Park Malacky Spain Netherlands Romania Slovakia Construction 2017-2020 Construction 2019 (started) Constructi
Slide 10: 2. Operating model
2. Operating model
Slide 11: VGP operating model highlights
VGP operating model highlights Fully integrated business model combining a unique expertise as a 1 developer, asset manager and owner of high-quality logistics assets in Europe Value creation crystallisation and cash recycling for all new 2 projects through strategic partnership with Allianz Well lo
Slide 12: Fully integrated business model with in-house capabilities and competences
1 Fully integrated business model with in-house capabilities and competences Concept & Land Construction Rent Portfolio Design Identification of top In-house design of High quality logistics Mainly long term lease Long term developer / locations directly buildings based on projects constru
Slide 13: Strategic partnership with Allianz Real Estate through three established joint ventures
Strategic partnership with Allianz Real Estate through three 2 established joint ventures enables value creation crystalisation VGP European Logistics VGP European Logistics 2 3rd JV: VGP Park München 50% 50% 50% 50% 50% 50% 100% 5.1% 94.9% 100% Czech Austria Germany Republic 100% 100% Italy Slovaki
Slide 14: Portfolio growth primarily driven by continued capital expenditure financed by cash recycling
3 Portfolio growth primarily driven by continued capital expenditure financed mostly by rapid cash recycling Total portfolio – including 100% JV (€ million) Own portfolio JVs-related1 3,500 3,231 3,000 2,771 2,500 1,936 2,396 2,000 1,978 1,506 1,500 1,195 1,360 878 1,000 645 500 793 834 677 550 628
Slide 15: Despite the challenging market environment, H1 2020 saw resilient leasing growth
3 Despite the challenging market environment, H1 2020 saw resilient leasing growth Committed annualised rental income and number of tenancy contracts1 1H 2020 In total 263 tenant contracts driving committed annualised leases to € 165.2 million (2019: €155.0 million) € 37.0 million through own po
Slide 16: Diversified investment portfolio
3 Diversified investment portfolio Investment portfolio breakdown 1 Country breakdown Completed vs Under Construction vs Land Bank Hungary Slovakia €86mm – 3% Development land €98mm €405mm 3% Other Romania 13% €118mm €103mm 4% 3% Netherlands Under €153mm – 5% Construction Spain €696mm €236mm – 7% 22
Slide 17: Portfolio leased on a long-term basis to a diversified and blue-chip customer base
4 Portfolio leased on a long-term basis to a diversified and blue-chip customer base Weighted average term of the portfolio Blue-chip top 10 Tenants (JVs at 100%) Combined 8.7 years Krauss Maffei 16.9% Amazon 6.9% JV 8.2 years Rhenus 4.9% Own 10.3 years Drylock 2.9% MediaMarktSaturn 2.8% years 0 2 4
Slide 18: Track record of realising value creating opportunities once pre-let is largely secured
5 Track record of realising value creating opportunities once pre-let is largely secured On balance sheet opportunities Growth framework 1 3 Acquisition of c.1.17 mm m2 of land in 1.53 mm m2 of landbank H1 2020 (0.48 mm m2 of GLA) Under construction as of 30 Jun 2020 190k m2 GLA completed YTD as of
Slide 19: Well advanced land bank to support future growth
5 Well advanced land bank to support future growth Build-up of Land bank (m2) Land bank1 – geographic breakdown 7,740,000 6,890,000 850,000 Other 8% 1,960,000 Italy 5% Germany 28% 4,930,000 Netherlands 5% 4,410,000 1,170,000 Spain 7% 650,000 Slovakia 10% Romania 17% Czech Republic 18% Land owned Dep
Slide 20: Executive management: clear corporate matrix organization
6 Executive management: clear corporate matrix organization with advanced management tools Corporate matrix structure VGP Management KPIs-app CTO Eastern Europe COO (role split Western / Eastern Europe) Clear objectives and, check and balances Split COO – Western and Eastern Europe (following jo
Slide 21: 3. VGP-Allianz Real Estate partnership
3. VGP-Allianz Real Estate partnership
Slide 22: Strategic partnership with Allianz Real Estate through three established joint ventures
Strategic partnership with Allianz Real Estate through three established joint ventures Three Established Joint Ventures: I. VGP European Logistics In Q1 2016 VGP entered into a 50/50 JV with Allianz Real Estate (VGP European Logistics) for II. VGP European Logistics 2 a period of ten years with p
Slide 23: First two joint ventures are setup to acquire income-generating assets developed by VGP
First two joint ventures are setup to acquire income-generating assets developed by VGP Objective: build a platform of new, grade A logistics and industrial properties with a key focus on expansion in its core mature European markets and high growth CEE markets with the aim of delivering stable in
Slide 24: Track record of the first two joint ventures: in excess of €1 billion of net cash proceeds
Track record of the first two joint ventures: in excess of € 1 billion of net cash proceeds First JV: VGP European Logistics Second JV: VGP European Logistics 2 €176mm €96mm GAV: c.€500mm GAV: c.€175mm Closing I net cash Closing I net cash (May ‘16) 15 parks (28 buildings) in Germany, Czech (Jul ‘19
Slide 25: Third Joint Venture is initially focused on the development of VGP Park München
Third Joint Venture is initially focused on the development of VGP Park München In June 2020, VGP and Allianz Real Estate entered into a new 50:50 joint venture for the development of VGP Park München The managerial and governance setup of the new partnership is similar to the first two joint ve
Slide 26: VGP Park München
VGP Park Miinchen Allianz @i) Real Estate $2™'Grub Pg Kirchheim S2- Heinystetteh Parsdorf
Slide 27: VGP Park München
VGP Park München Building Land plot (m 2 ) Total GLA (m 2 ) Tenant GERMUER - A1 95,148 38,380 BMW GERMUER - A2 37,523 15,136 BMW GERMUER - PHN 4,615 22,213 KMT GERMUER - B 202,165 81,548 KMT GERMUER - E 97,555 39,351 KMT GERMUER - F 18,559 7,486 KMT GERMUER - PHS 4,615 19,418 KMT GERMUER - C 120,162
Slide 28: VGP Park München
VGP Park Munchen VGP Allianz @i) eal Estate 28
Slide 29: High standards of corporate governance within VGP-Allianz joint ventures
High standards of corporate governance within VGP-Allianz joint ventures 4 managers: 2 appointed by VGP and 2 by Allianz Real Estate Board of Director Decisions about relevant activities are required to be made with unanimous consent of both parties composition Rotating Chairman with no castin
Slide 30: 4. Summary financial profile
4. Summary financial profile
Slide 31: Income Statement
Income Statement Operating profit up €121.8mm to €217.9mm Increase driven by higher net valuation gain (up €139.3mm), compensating lower share in result of JV (€(10.7)mm) and higher admin expenses (€5.6mm) On a “look-through”- basis 1 net rental is up by € 2.7 mm YoY to € 26.9mm Net valuatio
Slide 32: Income Statement – by segment
Income Statement – by segment Investment Development Property and Asset Management € million € million € million Share in result of JVs up €5.1 million Valuation gains/(losses) up €140.7 Revenues include asset YoY corresponds to VGP’s share in million YoY – Positively affected by management, p
Slide 33: Balance sheet - assets
Balance sheet - assets Investment Properties of €834.4mm (of which €238.5mm reclassified as held for sale) Completed portfolio €173mm (’19: €94mm) Under Construction €344mm (‘19: €338mm) Development land €318mm (‘19: €361mm) Investment in Joint Ventures and associates increased to €534.2 mm
Slide 34: Balance sheet – Shareholders' equity and liabilities
Balance sheet – Shareholders’ equity and liabilities Shareholders’ equity of €1,035mm, up €335mm since Dec ’19 Includes effect of €200 mm equity capital raising Total liabilities of €922 mm (2019: €925 mm) Financial debt of €782 mm (2019: €780 mm) Trade debt and other current liabilities d
Slide 35: Financial key ratios
Financial key ratios Gearing ratio (%) The group has adequate cash buffers in its Joint Ventures’ portfolio’s and the Group expects that it 100 will be able to retain its sound liquidity position for 80 Covenants: <65% the foreseeable future through 60 39.4 42.3 39.3 34.6 35.2 Anticipated two ad
Slide 36: 5. Governance
5. Governance
Slide 37: VGP's five-person board includes three highly qualified female independent directors
VGP’s five-person board includes three highly qualified female independent directors to help drive sustainable growth Board of directors Audit committee Bart Van Malderen (Reference Shareholder) Year Executive or Next due Chairman; Non-executive director Name appointe non- Independent for re- Rene
Slide 38: 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 development land bank (owne