Vgp Nv · EURONEXT:VGP
Vgp Nv — Investor Presentation (September 2019)
52 slides from Vgp Nv's investor presentation, September 2019
Slide 1: Company Presentation September 2019
Company Presentation September 2019
Slide 2: 1. Introduction to VGP
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 (June 2019)
The Continental European pure-play logistics real-estate group (cont'd) Overview of e ing VGP parks (June 2019) /GP Pack Zaragoza 57 VGP Park Roosendaal 18 VGP Park Gattinger apa hpi 16 VGP Park Wetslar 21 VGP Park Giessen-Lutzelinden 22 VGP Park Lastzen 23 VGP Park Magdeburg 24 VGP Park Chemnitz 28
Slide 5: Successful track record of geographic expansion and continued delivery across markets
Successful track record of geographic expansion and continued delivery across markets... 1998 VGP founded in Czech Republic as a family- owned real estate developer VGP 2011 Sale of Czech assets to funds managed by 2007 Tristan Capital Listing on Partners Euronext Brussels and Prague Stock Exchange
Slide 6: Projects held by JV and directly by VGP
3500 3,178 3000 2,522 900 2500 1,996 2000 900 746 1,651 719 1500 288 1,191 642 910 446 1000 642 416 1,532 1,333 642 500 831 549 593 268 0 2014 2015 2016 2017 2018 Jun-19 (incl UC) Projects held by JV Projects held directly by VGP Projects divested As of June 2019 1 Including assets divested (see cha
Slide 7: 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 Miinchen Germany Czech Republic Germany Germany Completed 2018 Completed 2017 Completed 2015 - 2016 Construction 2019
Slide 8: 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 Spain Construction 2017-2020 Total Gross Lettable area: 122,000 m? Rats @ noatum logistics Standardised building requirements with some adaptions to t
Slide 9: 2. Market overview
2. Market overview fal G) “U
Slide 10: Logistics Economy
Western and Southern Europe Eastern Europe Total 60.3% 0.9% 1.1% 0.7% 5.5% 0.0% 17.9% 4.0% 3.0% 3.9% 2.6% 100% Contracted rent (€mm) / 129.3 as % of total1 78.0 1.1 1.4 0.9 7.1 0.0 23.1 5.2 3.9 5.1 3.4 GDP growth ‘19E Economy 0.5 1.5 0.1 1.6 2.1 1.7 2.6 3.7 3.8 3.3 2.6 (%) CPI ’19E (%) 1.8 1.8 0.9 2
Slide 11: Annual European B2C Ecommerce Turnover (2013 – 2019f)
Annual European B2C Ecommerce Turnover (2013 – 2019 (f)) 11% €700 621 13% €600 547 9% 12% 489 €500 429 10% 386 €400 329 9% 13% 279 37% €300 €200 23% 15% €100 17% €- 2013 2014 2015 2016 2017 2018 2019 Source: Ecommerce Foundation, publication date 2 July 2019 Source: Ecommerce Foundation, publication
Slide 12: 3. Operating model
3. Operating model
Slide 13: Fully integrated business model combining developer, asset manager and owner
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 located and diversified asset por
Slide 14: In short: a unique business model in the logistics space in Europe
ty) In short: a unique business model in the logistics space in Europe v Focused on the acquisition of strategically located landbank close to the largest consumption centres on a pan-European basis v Focuses on developing the assets itself, enabling strict risk controls on the process and enforcing
Slide 15: Value creation crystallisation through strategic partnership with Allianz
Value creation crystallisation through strategic partnership with 2 Allianz enabling capital recycling for all new projects ▪ Two joint ventures, each with an investment target of €1.7 billion gross asset value (first JV already reached c. € 1.5 billion) ▪ Exclusive Right of First Refusal for the re
Slide 16: Capital expenditure
3 2,500 2,000 1,536 1,500 1,360 878 1,000 645 500 677 628 713 550 576 416 - 2014 2015 2016 2017 2018 Jun-2019 2019 Capital expenditure €337.0m €261.0m €352.7m €198.7m €1,149m Net cash inflow from divestments €236.1m €155.7m €438.4m1 €125.4m €956m As of June 2019 1 Includes sale of Mango building, Sp
Slide 17: Annualised Rent income
3 €140 250 Annualised Rent income - (€ million) €120 200 €100 Number of contracts 150 €80 €60 100 €40 50 €20 €- 0 2014 2015 2016 2017 2018 H1 2019 2019 Rolling rental income Increase in rental income Number of contracts ◼ Over 220 tenant contracts driving committed annualised leases to € 129.3 milli
Slide 18: As of 30 June 2019 1 Including 100% of JV assets
3 ◼ ◼ ◼ As of 30 June 2019 1 Including 100% of JV assets 18
Slide 19: Germany: entry and rapid expansion since 2013
3 GLA (million m2) 2 2 2 1,151 Berlin 1,043 3 2 892 Hamburg 3 2 Frankfurt 3 456 2 311 2 2 Munich 2 2015 2016 2017 2018 Jun-19 Number of rent contracts at different parks GAV (€ mm) 1,277 Occupancy 99.3% No. of parks 27 Contracted rent (€ mm) 78.0 GLA (million m2) ◼ Entry and rapid expansion into Ger
Slide 20: Weighted average term of the portfolio and top tenants
4 Weighted average term of the portfolio Blue-chip top 10 Tenants (JV at 100%) Combined 8.6 years KraussMaffei Gruppe 11.8% JV 7.4 years Amazon 8.7% Own 10.4 years Rhenus 6.3% years 0 Drylock Technologies 2.8% 2 4 6 8 10 12 4PX Express 2.5% First break Term BMW 2.5% Volkswagen 2.5% Lekkerland 2.0% O
Slide 21: Acquisition of c.1.7 mm m2 of land in 2019
Acquisition of c.1.7 mm m 2 of land in 2019 (800k m2 of GLA) 175k m2 GLA completed in past 6 months (100% let as of 30 Jun 19) 480k m2 under construction and a further 270k m 2 in immediate pipeline (Laatzen + Munich) – in total >70% pre-let1 ➢ Target for under construction 80% pre-let ➢ Intention t
Slide 22: Land owned, deployed, acquired and secured
Land owned Deployed Acquired Secured Letters of Dec 2018 2019YTD 2019YTD intent 1 Geographical breakdown of development potential (m2) of the owned and secured land bank ◼ ◼ As of 30 June 2019 22
Slide 23: Executive management: clear corporate matrix organization
Executive management: clear corporate matrix organization with advanced management tools Corporate matrix structure VGP Management KPls-app | CeO | T ' = Finance ‘ ‘Manager Planning & Pr — 7 Technic ae — Manager ee ee ee eee Commercial |_| | Aftersales Manager Manager [— = Commercial Manager | eve)
Slide 24: 4. VGP-Allianz Real Estate partnership
4. VGP-Allianz Real Estate partnership fal G) “U
Slide 25: VGP and Allianz Real Estate 50/50 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 developed by VGP in Germany, Czech Republic, Hungary and Slovakia ▪ In Jul
Slide 26: Joint venture objectives and structure
▪ 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 returns with potential for capital appreciation ▪ Portfolio size: aim to in
Slide 27: Track record of the two joint ventures: €876 million of net cash proceeds
Track record of the two joint ventures: €876 million of net cash proceeds First JV: VGP European Logistics Second JV: VGP European Logistics 2 4 net cash : net cash Closing | Closing | (May ‘16) 15 parks (28 buildings) in Germany, Czech (Jul ‘19) 3 parks (8 buildings) in Spain, Austria and Republic,
Slide 28: Joint venture governance and terms
▪ 4 managers: 2 appointed by VGP and 2 by Allianz Real Estate ▪ Decisions about relevant activities are required to be made with unanimous consent of both parties ▪ Rotating Chairman with no casting vote ▪ JV has right of first refusal in relation to acquiring income generating assets in its designa
Slide 29: 7. Summary financial profile
VGP 7. Summary financial profile
Slide 30: Look-through financial results
◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ 1 Look-through basis includes VGP’s share of the JV net rental income 2 The (re)valuation of the own portfolio was based on the appraisal report of the property expert Jones Lang LaSalle 30
Slide 31: Segment reporting and operating EBITDA
◼ ◼ ◼ Please note the segment reporting disclosure in our H1 2019 press release for overview of adjustments to operating EBITDA 31
Slide 32: Investment Properties of €541 million
◼ Investment Properties of €541 million, up €73 million since Dec ’18, despite €203 million closing with JV ◼ Completed portfolio has decreased by €20 million to €102 million ➢ HFS has increased €16 million to €291 million ◼ Under Construction has increased by €70 million to €205 million ◼ Developme
Slide 33: Shareholders' equity and total liabilities
◼ Shareholders’ equity of €569 million, up €26 million since Dec ‘18 ◼ Total liabilities of €714 million, up €45 million since Dec ‘18 ◼ Increase in non-current financial liabilities mainly due to remaining balance due in respect of acquired development land of VGP Park Bratislava (€ 26.4 million) ◼
Slide 34: Gearing and covenants
80% 94% 93% 95% 100 675.0 590.4 537.2 80 600 Covenants: <65% 439.4 60 39.4 42.3 39.8 400 34.6 40 200 20 0 0 2016 2017 2018 H1 2019 2016 2017 2018 H1 2019 Consolidated Gearing means consolidated Total Net Debt divided by the sum of the equity and total liabilities 20 25 20.41 13.1 20 15 Covenants: ≥1
Slide 35: 8. Governance
8. Governance
Slide 36: Board of directors
Year Executive or Next due Name appointe non- Independent for re- ◼ Renewed appointed: 2017 (next due for re-election 2021) d executive election ◼ Founder of Drylock Technologies in 2012 Ann Non- ◼ Prior to this, CEO and Chairman of Ontex Gaeremynck 2019 Independent 2023 executive (Chairman) Bart Va
Slide 37: 9. Going green
9. Going green
Slide 38: Solar panels, green roofs and charging stations
◼ The large roofs of VGP’s logistics warehouses are very well suited for the installation of solar panels without imposing aesthetic damage to local communities ◼ So far 12.5MW of solar panels has been installed and a further c.17MW is currently under construction/planned ◼ VGP Park Berlin and Munic
Slide 39: 12.5MW of solar panels installed
So far 12.5MW of solar panels has been installed and a further c.17MW is currently under construction/planned 39
Slide 40: 10. Recent landmark developments
10. Recent landmark developments
Slide 41: VGP Park München
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Slide 42: VGP Park München
VGP Park Miinchen $2 "Grub rs Kirchheim S2:- Heinystettefi
Slide 43: Landmark development in München
Building Land Plot Total GLA Status GERMUER - A1 98,611 m² 38,381 m² BMW GERMUER - A2 34,685 m² 13,500 m² BMW extension GERMUER - B 216,137 m² 78,124 m² KMT Phase 1 GERMUER - C 114,335 m² 44,501 m² KMT Phase 2 GERMUER - D 102,141 m² 39,755 m² KMT Phase 2 GERMUER - F 19,234 m² 7,486 m² KMT Phase 2 GE
Slide 44: VGP Park München
VGP Park Miinchen 44
Slide 45: VGP Park Laatzen
VGP Park Laatzen
Slide 46: VGP Park Laatzen
VGP Park Laatzen < Hanover x RIGKLINGEN DOHREN=WULFEL
Slide 47: Location — Laatzen (Hannover)
LOCATION — Laatzen (Hannover) • 284.847 m2 development land. First part (236,296 m²) acquired in Aug-19, second part (48,691 m²) to be settled in Jan-20 • Pre-let with KMT - 20 year lease - Lease start: May-22 C Building Land Plot Total GLA Status GERLAA - A 114,365 m² 54,728 m² KMT GERLAA - PHO (Pa
Slide 48: VGP Park Osterweddingen (Magdeburg)
VGP Park Osterweddingen (Magdeburg) 48
Slide 49: Location — Osterweddingen (Magdeburg)
Building Land Plot Total GLA Status GERMAG - A 54,619 m² 26,365 m² Development LOCATION —Osterweddingen(Magdeburg) GERMAG - B 72,715 m² 35,100 m² Development • 604,858 m2 development land acquired GERMAG - C 65,522 m² 31,628 m² Development GERMAG - D 65,522 m² 31,628 m² Development in Jun-19. GERMAG
Slide 50: 11. Closing remarks
11. Closing remarks fal G) “U
Slide 51: Fully integrated business model combining developer, asset manager and owner
Fully integrated business model combining a unique expertise as a developer, asset manager and owner of high-quality logistics assets in Europe Rapid de-risking and cash recycling for all new projects through strategic partnership with Allianz Well located and diversified asset portfolio in Europe’s
Slide 52: 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 well-advanced development l