Slide 1: 2016 Half Year Results
SEGRO eva ————— 2016 HALF YEAR RESULTS 26 JULY 2016
Slide 2: 2016 Half Year Results — Summary
2016 Half Year Results — Summary SEGRO « Strong operational performance — Favourable occupational market fundamentals — Step-up in development — Active asset management " Stable investment market — Portfolio outperformance from active management, rental growth and development * Substantial de-risked
Slide 3: Financial Review
SEGRO 2016 HALF YEAR RESULTS FINANCIAL REVIEW JUSTIN READ
Slide 4: Financial Summary
Financial Summary SEGRO . Adjusted EPS, = Good earnings momentum +6.5% 9.8p — Healthy like-for-like net rental income growth +4.1% Like-for-like net rental sys . income growth — Strong contribution from development — Offsets loss of income from disposals 4.8% (Y soh ef 506) =" 2.6% increase in NAV 4
Slide 5: 7.2% increase in Adjusted PBT
7.2% increase in Adjusted PBT SEGRO H1 2016 H1 2015 * £1.2m positive impact on PBT from £m Sia strengthening euro Gross rental income 110.7 101.2 Property operating expenses (22.1) (15.8) Net rental income 88.6 85.4 Share of joint ventures’ adjusted profit! 25.5 23.6 Joint venture fee income 9.1 6.7
Slide 6: 4.1% growth in like-for-like net rental income
4.1% growth in like-for-like net rental income SEGRO £116.6m £(15.9)m Group: +4.1% UK: +6.2% CE: -1.0% c£7m from Bath Road Mainly 2015 acquisitions H1 2015 Disposals Acquisitions Completed Space taken Like-for-like © Surrender developments — back for net rental — premiums development — income & othe
Slide 7: Stable, low vacancy rate
Stable, low vacancy rate SEGRO Spec 0.3% 1.0% 0.0% — i Pre-let (0.2)% Speculative Speculative FC (0.8)% development! (0.3%) development! 1.0% Existing Existing standing assets standing assets 3.8% 4.2% 31 December Long-term Short-term take- New Acquisitions Disposals 30 June 2016 2015 lettings backs
Slide 8: Pro-forma accounting net rental income
Pro-forma accounting net rental income SEGRO Group JVs Total £m £m £m H1 2016 net rental income 88.6 32.3 120.9 Incremental impact of: Disposals since 1 January 2016 (3.1) (0.4) (3.5) Acquisitions since 1 January 2016 0.2 0.9 1.1 Developments completed and let during H1 2016 1.3 0.2 1.5 One-off item
Slide 9: Costs higher due to new businesses
Costs higher due to new businesses SEGRO Incl. joint ventures at share H1 2016 H1 2015 £m £m Gross rental income 149.0 138.2 Property operating expenses (22.1) (15.8) Administration expenses! (15.5) (13.0) JV operating expenses (5.7) (5.3) JV management fees? 8.2 5.8 Total costs? (35.1) (28.3) Total
Slide 10: 2.6% increase in EPRA NAV
2.6% increase in EPRA NAV SEGRO 3 14p P 10p a a . (11)p 31 December Adjusted EPS Final Dividend Realised and Exchange rate Other 30 June 2016 2015 unrealised gains
Slide 11: Portfolio value change driven by asset management and ERV growth
Portfolio value change driven by asset management and ERV growth! SEGRO €£120m ) | UK +1.9% | Slough Trading Estate +0.5% £100m Park Royal ng sera +4 20h Continental Europe +0.4% l , SELP +0.6% I Heathrow +1.1% £80m | | UK big box logistic? 41.0% SEGRO wholly-owned +0.2% I I £60m I I £40m I £20m (0.
Slide 12: Solid financial position
Solid financial position SEGRO 30 June 31 December 2016 2015 £m £m Group only Net borrowings (£m) 1,707 1,807 Group cash and undrawn facilities (£m) 440 234 Weighted average cost of debt! (%) 3.7 3.7 Interest cover? (times) 24 25 Including JVs at share Net borrowings (£m) 2,112 2,193 LTV ratio (%) 3
Slide 13: Euro currency exposure and hedging
Euro currency exposure and hedging SEGRO Balance sheet, £m 30 June 2016 * €1.20:£1 as at 30 June 2016 Assets 89% eee | 2,500 * €assets 89% hedged by € liabilities . iT — 59 2,000 a soe | Euro €214m (£178m) of residual exposure — 5% of Group NAV liabilities + Illustrative NAV sensitivity vs €1.20: 1,
Slide 14: Financial summary
Financial summary SEGRO " Strong operating performance in H1 2016 = Good earnings momentum from developments and rental growth " Solid financial position 14
Slide 15: Strong Operating Performance
SEGRO 2016 HALF YEAR RESULTS STRONG OPERATING PERFORMANCE
Slide 16: Well placed to outperform
Well placed to outperform SEGRO « Market backdrop remains favourable = Structural drivers of occupier demand = Low availability, constraints in new supply = SEGRO well placed to capitalise on opportunities = Development = Asset management = Prudent financial management = Near-term growth underpinned
Slide 17: Strategic priorities remain unchanged
Strategic priorities remain unchanged * — Record low vacancy rate of 4.8% * 14 projects completed: £10m potential rent, 83% leased * 4.1% like-for-like net rental income growth * — Leasing of speculative projects ahead of appraisals * 3.9% uplift from rent reviews and renewals * 10 prelet agreements
Slide 18: Strong operating and capital performance in H1
...leading to strong operating and capital performance in H1 SEGRO Capital value growth of £108m Net rental income growth of £4.3m H1 2016 portfolio realised and unrealised valuation movement, £ millions H1 2016 accounting net rental income, £ millions 20 120 14.2% 1.9% 0.4% —— 8.8 1 ; 00 15 (15.9)
Slide 19: Taking advantage of development opportunities
Taking advantage of development opportunities SEGRO Completed developments Current pipeline (c6-8 months) Near-term pipeline (12-18 months) — = * £82m of capital invested * £210m invested; £125m cost to * £228m of potential capex * £10m of potential rent, 83% complete * £24m of rent secured ° £26.5m
Slide 20: Near-term pipeline (12-18 months)
Near-term pipeline (12-18 months) SEGRO Pretet projects (328,000 sq m) * Involve pre-let agreements signed subject to planning permission or in advanced negotiation * Continental Europe 68%; UK 32% * £160m development capital expenditure * Projected annual rents of £15m * 74% yield on TDC Speculativ
Slide 21: Further development opportunities
Further development opportunities SEGRO Current land bank (30 June 2016) Future pipeline on current land bank (1-5 years) * SEGRO-owned land bank * £900m potential capex (excl land) SEGRO * £100m potential rent Land under option (1-10 years) * SEGRO control @AILOG "A SEGRO GROUP COMPANY * £850m pote
Slide 22: Substantial opportunity to grow rental income
Substantial opportunity to grow rental income SEGRO Annualised gross cash passing rent!, £ millions £170m from medium/long-term opportunities £93.4m from near-term opportunities 26.5 30.7 2.8 21 a . | 319.0 276.4 30 Jun 16 Rent in Reversion to 2015/16 Potential Rent from Near-term Potential Land ban
Slide 23: Structural drivers of demand outweigh referendum concerns
Structural drivers of demand outweigh referendum concerns SEGRO 12 lettings / pre-lets signed since referendum (24 June — 20 July) 39,000 sq m (60% UK; 40% Cont Europe) £3.4m of rent, 6% above ERV Spread across a range of industries: retail, logistics, manufacturing, food producers All need space to
Slide 24: Outlook
Outlook SEGRO Optimistic about occupational markets = Structural demand drivers, supply likely to remain constrained Too early to assess the impact of the EU referendum = Encouraging early signs Asset values likely to out-perform wider real estate market Well positioned to take advantage of suitable
Slide 25: Q&A
SEGRO 2016 HALF YEAR RESULTS Q&A
Slide 26: Appendix I: Portfolio and Financial Data
SEGRO APPENDIX | PORTFOLIO AND FINANCIAL DATA
Slide 27: Market backdrop has remained supportive
Market backdrop has remained supportive GDP growth expected across our major markets! 4.00 (2% pa, 2015-18¢) 3.00 2.00 - ll | [J bos _s Poland Euro area Germany France Italy United Kingdom UK Grade A demand not being satisfied by supply? (million sqm of Grade A take-up vs supply) 4 mAverage availabi
Slide 28: EPRA performance measures
EPRA performance measures SEGRO 30 June 2016 30 June 2015 31 December 2015 fm ___ £p per share fm ___ £p per share fm ___ £p per share EPRA! profit after tax 734 98 63.9 8.6 137.3 17.8 EPRA NAV 3,593.8 475 3,100.7 416 3,453.4 463 EPRA NNNAV 3,285.5 435 2,836.3 380 3,195.9 428 EPRA net initial yield
Slide 29: Adjusted income statement (JVs proportionally consolidated)
Adjusted income statement (JVs proportionally consolidated) H1 2016 H1 2015 Group JVs Total Group JVs Total £m £m £m £m £m £m Gross rental income 110.7 38.3 149.0 101.2 37.0 138.2 Property operating expenses (22.1) (6.0) (28.1) (15.8) (5.8) (21.6) Net rental income 88.6 32.3 120.9 85.4 31.2 116.6 JV
Slide 30: Balance sheet (JVs proportionally consolidated) June 2016
Balance sheet (JVs proportionally consolidated) 30 June 2016 31 December 2015 Group JVs Total Group JVs Total £m £m £m £m £m £m Investment properties 4394.5 1,483.4 5,877.9 4424.0 1,303.5 5,727.5 Trading properties 33.0 0.5 33.5 37.6 5.8 43.4 Total properties 4,427.5 1,483.9 5,911.4 4,461.6 1,309.3
Slide 31: EPRA capital expenditure analysis
EPRA capital expenditure analysis SEGRO H1 2016 H1 2015 Group JVs Total Group JVs Total £m £m fm £m £m fm Acquisitions 65.5 39.8 105.3 349.0 749 423.9 Development! 97.1 17.6 114.7 AO 42 46.1 Completed properties? 98 2.0 11.8 12.9 3.9 16.8 Other? 10.2 2.1 12.3 5.7 1.2 6.9 TOTAL 182.6 61.5 244.1 409.5
Slide 32: Look-through loan-to-value ratio at June 2016
Look-through loan-to-value ratio at 30 June 2016 SEGRO 30 June 2016 Weighted average cost of £m gross debt, %! Group gross borrowings 1,718 3.7 Group cash & equivalents 11 - Group net borrowings 1,707 - Share of joint venture net borrowings 405 24 SEGRO net borrowings including joint ventures at sha
Slide 33: Debt maturity profile at June 2016
Debt maturity profile at 30 June 2016, £m 1,200 1,000 800 600 . iil ll 0 U 2016 2017 2018 2019 2020 2021 2022 2023 2024 mSEGRO bonds mSEGRO bank debt mJV debt at share m@SEGRO undrawn 2035 SEGRO 33
Slide 34: SEGRO Continental Europe assets under management
SEGRO Continental Europe assets under management SEGRO 1,200 L075 = €3.3bn AUM at 30 June 2016 ! (£2.8bn) So i=) fo) = — SELP joint venture focuses on big 856 778 800 box logistics assets 602 600 = Other European countries comprise: = The Netherlands, Belgium and Austria 400 — supported by our platf
Slide 35: Current pipeline completion schedule
Current pipeline completion schedule SEGRO 30.0 = Almost all of the current pipeline 0.6 expected to complete in 2016 0.9 ey 25.0 15 = £26.5m gross rent when fully let = £17.7m gross rent from pre-let 20.0 developments = £8.8m potential gross rent from 15.0 speculative developments 10.0 5.0 0.0 H2 2
Slide 36: Current development projects — significantly de-risked
Current development projects — significantly de-risked Current development projects, asset type by ERV (30 June 2016) Logistics 28% Current pipeline (440,500 sq m) £125m development cost to complete Projected annual rents of £26.5m 67% pre-let at 30 June 2016 7.9% estimated yield on total developmen
Slide 37: Long-term growth potential from land bank in core industrial markets
Long-term growth potential from land bank in core industrial markets SEGRO Current land bank Geographic split of future pipeline, by ERV' 3 (30 June 2016) (30 June 2016) Future pipeline (2.4m sq m)?> * £950m estimated development costs! German 26% ¥ * £106m of potential annual rent! * 8.5% estimated
Slide 38: Building scale in Italy through Vailog
Building scale in Italy through Vailog SEGRO * Vailog acquired in June 2015 with €89m of standing assets, land and development in Italy and France ASEGRO GROUP COMPANY * AUM in Italy already projected to be near €200m by end-2016 Assets under management from Vailog acquisition, €m 250 * Accretive de
Slide 39: Future opportunities under option — East Plus
Future opportunities under option — East Plus BEAM VALLEY coumRy PARK * 1.4m sq ft of urban distribution space in a major regeneration area of London * Capex of c£180m over 10 years + Partly funded by sales of completed assets when fully let * 2016 — Beam Reach 5 Phase 1: Planning permission granted
Slide 40: Land bank provides optionality and opportunity for growth
Land bank provides optionality and opportunity for growth SEGRO Land bank value, £m FY 2011 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% N N o om + T+ w w Ke} Soo5o0cSFmhlUCUDUUCGDUUCGOUCNU CS N N N N N N N N N repre -e p-e Fs mm Alternative use mmm Future development pipeline mam Long-term and residual
Slide 41: Appendix II: Market Data
SEGRO APPENDIX II MARKET DATA
Slide 42: European industrial investment volumes
European industrial investment volumes SEGRO European industrial investment volumes European industrial investment volumes By country, €m By quarter, €m 25,000 25,000 20,000 20,000 15,000 15,000 10,000 10,000 - 0) oh DORDOHKH NM TN SO oh WDWODTOHKH NM THM SO saqoqoC fee ee es asaqo0gq0 S225 er 5 er
Slide 43: Prime logistics yields vs bond yields
Prime logistics yields vs 10 year bond yields SEGRO 12.0 10.0 8.0 Warsaw: 6.0% 6.0 SN Paris: 5.75% Dusseldorf: 5.0% 4.0 London: 4.5% 2.0 UK 10yr bond: 0.9% 0.0 Germany 10yr bond: -0.1% -2.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 HI 2016 Source: CBRE, Bloomberg (data correct at 3
Slide 44: Supply of UK big box warehouses falling behind levels of demand
Supply of UK big box warehouses falling behind levels of demand SEGRO UK Big Box supply-demand dynamics! Speculative UK Big Box completions? (m sqm) (m sqm) 0 3.0 25 3.0 14% c ec : 12% S & g 200 g 10% ¢ Fog 3 £20 g B+ 15% o 8% = 2 . é Ey c a z 2 & 102 eo 4% 8 3 1.0 3 8 I 5 z 05 I 2% 8 g e 0.0 - --l
Slide 45: European industrial and logistics supply dynamics
European industrial and logistics supply dynamics SEGRO Logistics space under construction! France logistics supply-demand dynamics? (m sqm) (m sqm) 3.0 5.0 25 2.5 20 2.0 a 15% 1.5 8 1.0 10g = 0.5 | i i S 0.5 0.0 | a 0.0 0.0 < -® §$ € € Pe SE : oO - NO mM tt : > s € 5S @7 & £ FB 5 5S 5&5 & & 5&5 = =
Slide 46: European industrial and logistics — take-up statistics
European industrial and logistics — take-up statistics SEGRO Take-up — UK' Take-up — France? (m sq m) (m sqm) 3.0 1H16 rolling 4.0 1H16 rolling annual 2.0 annual 3.0 2.0 °btalia 1 od 0.0 0.0 So 85868566565 56 6 5 EF So 86 56 5 5 56 5 6 F CS SS 2 Sd S © © A WN WA A KR mw New ™ Second hand Take-up — P
Slide 47: European industrial and logistics — availability statistics
European industrial and logistics — availability statistics SEGRO Availability — UK! Availability — France? (m sqm) (m sqm) 3.0 5.0 20 4.0 3.0 ae 0.0 1.0 fe 5 8 2g = £2 8g 00 Ss 8 SS NR R RF ' $ © - 8 2 = * Bg m New / Early Marketed m Second hand R & 8 R 4 a a = Space under construction and vacancy
Slide 48: Heathrow Airport cargo and passenger volumes
Heathrow Airport cargo and passenger volumes SEGRO Heathrow Airport cargo volumes Heathrow Airport passenger volumes (million metric tonnes) (millions) 1.6 80 1.5 75 14 1.3 WAV; 70 1.2 65 11 1.0 60 ‘Oo N ice) an Oo _- N fon) a w oO ‘Oo N ce) a Oo _- N m a w Ke) 2??? 22 DTD222U T e222 2D DDI ee BPR E
Slide 49: Forward-looking statements
Forward-looking statements SEGRO This presentation may contain certain forward-looking statements with respect to SEGRO’s expectations and plans, strategy, management's objectives, future performance, costs, revenues and other trend information. These statements and forecasts involve risk and uncert