Slide 1: Company Presentation Q1 2020 – Full Year 2019 Results Presentation
Company Presentation Q1 2020 Full Year 2019 Results Presentation 28 February 2020
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 n Fully integrated business model – from land identification and acquisition to development and asset and property management n Focus on securing strategically located land plots n Major European cities with >100k inhabitants n Public tr
Slide 4: The Continental European pure-play logistics real-estate group (cont’d)
The Continental European pure-play logistics real-estate group (cont’d) Overview of existing VGP parks (March 2020) 4
Slide 5: Sustainable development achievements for 2019 and enhanced goals
The Continental European pure-play logistics real-estate group (cont’d) Sustainable development achievements for 2019 and enhanced goals for 2020 onwards Launch of VGP Renewable Energy N.V. 16MW of PV solar installed or under construction and further 36.8 MW in pipeline Target 100% BREEAM Very Good
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 2017 Expansion of Fully-marketed partnership secondary – launch of 2nd Joint equity offering Venture (50/50) with (reaching 37% free float) 2011 Sale of Czech assets to 2015 funds Expansi
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 Completed1 gross leasable area (‘000 m²) 4,000 3,730 3,500 900 ate wt hR 3,000 ro al G % 2,810 Annu -’20: 31 nd 5 2,522 pou R) ’1 2,500 Com (CAG 900 1,032 1,996 2,000 900 1,651 146 719 1,500 288 1,191 642 1,000 446
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 unique and high quality 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 developer, 1 asset manager and owner of high-quality logistics assets in Europe Value creation crystallisation and cash recycling for all new projects 2 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 n Identification of top n In-house design of n High quality logistics n Mainly long term lease n Long term developer / locations directly buildings based on projects constru
Slide 13: Value creation crystallisation through strategic partnership with Allianz
Value creation crystallisation through strategic partnership with Allianz enabling 2 capital recycling for all new projects Simplified structure of the two joint ventures VGP European Logistics and VGP European Logistics 2 50% 50% 50% 50% 5.1% 100% 94.9% 100% 100% 100% Austria 100% Italy 100% Nether
Slide 14: Portfolio growth driven by 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 (€mm) Own portfolio JVs-related1 3,000 2,771 e Rat 2,500 r owth G .1% ual nd Ann -’19: 46 pou R) ’14 Com (CAG 1,936 2,000 1,978 1,506 1,500 1,195 1,360 878
Slide 15: Historical leasing growth
3 Historical leasing growth Committed annualised rental income and number of tenancy contracts1 €175 300 Annualised Rent income - (€ million) €150 250 €125 Number of contracts 200 €100 150 €75 100 €50 €25 50 €- 0 2015 2016 2017 2018 2019 2020 1Q 2020 Rolling rental income Increase in rental income N
Slide 16: Diversified investment portfolio
3 Diversified investment portfolio Investment portfolio breakdown 1 Country breakdown Completed vs Under Construction vs Land Bank Hungary Slovakia €79mm – 3% Development land €91mm €391mm 3% Other Romania 14% €109mm €94mm 4% 3% Netherlands Under €116mm – 4% Construction Spain €469mm €216mm – 8% 17%
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 8.9 years Krauss Maffei 17.5% Amazon 7.3% JV 7.0 years Rhenus 5.2% Own 12.5 years Drylock 3.1% MediaMarktSaturn 3.0% 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.2.88 mm m2 of land 1.72 mm m2 of landbank in 2019 (1.57 mm m2 of GLA) Under construction 287k m2 GLA completed in 2019 as of March 2020 and 54
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 8,640,000 Other 8% 6,670,000 1,970,000 Hungary 4% Germany 26% Netherlands 6% 2,180,000 560,000 Spain 7% 4,410,000 2,880,000 Slovakia 11% (470,000) Czech Republic 19% Romania 19% Land owned
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) Ø Clear objectives and, check and balances Ø 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 two joint ventures
Strategic partnership with Allianz Real Estate through two joint ventures § In Q1 2016 VGP entered into a 50/50 JV with Allianz Real Estate (VGP European Logistics) for a period of ten years with possible extensions § This JV has a right of first refusal at market value for income generating assets
Slide 23: Strategic partnership with Allianz Real Estate through two joint ventures
Strategic partnership with Allianz Real Estate through two joint ventures § 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 income- driven r
Slide 24: Track record of the two joint ventures
Track record of the 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) 3 pa
Slide 25: High standards of corporate governance within both VGP-Allianz joint ventures
High standards of corporate governance within both VGP-Allianz joint ventures § 4 managers: 2 appointed by VGP and 2 by Allianz Real Estate Board of § Decisions about relevant activities are required to be made with unanimous consent of both Director parties composition § Rotating Chairman with no c
Slide 26: Agreement in principle with Allianz to set up a third joint venture
Agreement in principle with Allianz to set up a third joint venture – the first JV to also cover the development phase – for VGP Park München n Agreement in principle to launch new 50:50 JV in H1 2020, subject to due diligence n This will be the first JV to also cover the development of a VGP park –
Slide 27: VGP Park München
VGP Park Miinchen $2Grub 4 Kirchheim S2:- Heinystettefi ={5}
Slide 28: VGP Park München
VGP Park München Building Land plot (m2) Total GLA (m2) 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 48,
Slide 29: VGP Park München
VGP Park München 29
Slide 30: 4. Summary financial profile
4. Summary financial profile
Slide 31: Income Statement
Income Statement Operating profit up €101.3mm to €252.4mm Income statement (€ million) n 2019 2018 n Increased profit share from JVs (+ €20.5 Revenue 26.0 30.3 mm) more than offsetting lower net 11.7 16.6 Gross rental income rental income (-€6.4mm) and higher Property operating expenses (2.6) (1.1)
Slide 32: Income Statement – by segment
Income Statement – by segment Investment Development Property and Asset Management 2019 2018 2019 2018 2019 2018 Gross rental income 11.7 16.5 Gross rental income - - Gross rental income - - Property operating expenses (0.3) (0.1) Property operating expenses (2.3) (1.0) Property operating expenses -
Slide 33: Balance sheet - assets
Balance sheet - assets Investment Properties of €793mm and 31 Dec '19 31 Dec '18 n Disposal group held for sale of €170mm, ASSETS combined up €219mm since Dec ’18, despite Investment properties 792.9 468.5 three transactions with JVs for total transaction Investment in joint ventures and associates
Slide 34: Balance sheet – Shareholders’ equity and liabilities
Balance sheet – Shareholders’ equity and liabilities 31 Dec '19 31 Dec '18 n Shareholders’ equity of €700mm, up €156mm SHAREHOLDERS' EQUITY AND LIABILITIES since Dec ‘18 699.8 543.5 Shareholders' equity n Total liabilities of €925 million, up €255mm since Dec ’18 Non-current financial debt 767.7 564
Slide 35: Financial key ratios
Financial key ratios Gearing ratio (%) n 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 n Anticipated closings wi
Slide 36: 5. Governance
5. Governance
Slide 37: VGP’s board has been strengthened with three female independent directors
VGP’s board has been strengthened with 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-
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 an owned and secured developm