Vgp Nv · EURONEXT:VGP
Vgp Nv — Investor Presentation (November 2019)
52 slides from Vgp Nv's investor presentation, November 2019
Slide 1: Company Presentation
Company Presentation November 2019
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: 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 (October 2019) 4
Slide 5: Successful track record of geographic expansion and continued delivery across markets
Successful track record of geographic expansion and continued delivery across markets… 2019 Expansion of partnership – 2017 launch of 2nd Fully-marketed Joint Venture secondary (50/50) with equity offering (reaching 37% free float) 2011 Sale of Czech assets to 2015 funds Expansion to managed by Spai
Slide 6: With a proven ability to build a growing portfolio of yielding assets
With a proven ability to build a growing portfolio of yielding assets Completed1 gross leasable area (‘000 m²) 4000 3,482 3500 2,522 3000 900 2500 1,996 837 2000 1,651 900 719 1500 1,191 288 642 910 1000 446 642 1,745 416 1,333 642 500 831 549 593 268 0 2014 2015 2016 2017 2018 Oct-19 (incl UC) Proj
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 München 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 VGP Park Ginsheim VGP Park Timisoara VGP Park Malacky Spain Germany Romania Slovakia Construction 2017-2020 Construction 2016 – 2017 Construction 2011
Slide 9: 2. Market overview
2. Market overview
Slide 10: VGP's markets show favourable logistics sector dynamics
VGP’s markets show favourable logistics sector dynamics Western and Southern Europe Eastern Europe Total 57.8% 0.8% 1.0% 1.1% 10.2% 0.0% 16.4% 4.0% 2.7% 3.7% 2.4% 100% Contracted rent (€mm) / 143.6 as % of total1 83.0 1.1 1.4 1.5 14.6 0.0 23.6 5.8 3.9 5.2 3.4 GDP growth ‘19E Economy 0.5 1.5 0.1 1.6
Slide 11: Growing e-commerce driving demand for logistics assets across Europe
In particular growing e-commerce are driving demand for logistics assets across Europe European ecommerce growth continues at c.13% in 2019 Eastern and Southern Europe experience strong ecommerce growth Annual European B2C Ecommerce Turnover (2013 – 2019 (f)) 11% €700 621 13% €600 547 9% 12% 489 €50
Slide 12: 3. Operating model
3. Operating model
Slide 13: 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 14: In short: a unique business model in the logistics space in Europe
1 In short: a unique business model in the logistics space in Europe Focused on the acquisition of strategically located landbank close to the largest consumption centres on a pan-European basis Focuses on developing the assets itself, enabling strict risk controls on the process and enforcing r
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 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 16: Resilient portfolio growth
3 Resilient portfolio growth … Total portfolio – including 100% JV (€mm) Own portfolio JVs-related1 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 divest
Slide 17: Driven by enduring strong momentum for leasing growth
3 …driven by enduring strong momentum for leasing growth… Committed annualised rental income and number of tenancy contracts1 €150 250 Annualised Rent income - (€ million) €125 200 Number of contracts €100 150 €75 100 €50 50 €25 €- 0 2014 2015 2016 2017 2018 Oct 2019 2019 Rolling rental income Incre
Slide 18: Has resulted in a diversified investment portfolio
3 …has resulted in a diversified investment portfolio Investment portfolio breakdown 1 Country breakdown Completed vs Under Construction vs Land Bank Netherlands Romania €71mm Other Development land €75mm 3% €149mm €258mm Slovakia 3% 7% 11% Under €88mm Construction 4% €272mm 12% Spain €170mm Germany
Slide 19: VGP has grown to become one of the top tier developers in Germany
3 VGP has grown to become one of the top tier developer and manager/owners in Germany Significant expansion of German portfolio1 26 parks across completed and under construction… Germany… ……with several repeat tenants3 GLA (million m2) 2 2 1,306 2 Berlin 1,043 3 2 892 Hamburg 3 2 Frankfurt 3 456 2 3
Slide 20: Portfolio leased on a long-term basis to a 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 (JV at 100%) Combined 8.8 years KraussMaffei 18.2% Amazon 7.9% JV 7.0 years Rhenus 5.6% Own 12.1 years Drylock 2.6% 4PX Express 2.3% years 0 2 4 6 8 10
Slide 21: Track record of realising value creating opportunities once pre-let
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.2.50 mm m2 of land in 1.38 mm m2 of landbank 2019 (1.36 mm m2 of GLA) Under construction 255k m2 GLA completed in past 10 as of Oct 2019 month
Slide 22: 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 7,010,000 6,180,000 830,000 Other 5% Netherlands 4% Hungary 5% Germany 34% 2,130,000 4,050,000 Spain 7% 2,850,0001,160,000 2,450,000 Slovakia 12% 1,250,000 Romania 14% Czech Republic 19% L
Slide 23: Executive management: clear corporate matrix organization
6 Executive management: clear corporate matrix organization with advanced management tools Corporate matrix structure VGP Management KPIs-app Clear objectives Check and balances New positions: CIO, Group Controller, IR / BD 23
Slide 24: 4. VGP-Allianz Real Estate partnership
4. VGP-Allianz Real Estate partnership
Slide 25: 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 26: 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 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 €176mm €96mm GAV: c.€500mm GAV: c.€175mm net cash net cash Closing I Closing I (May ‘16) 15 parks (28 buildings) in Germany, Czech (Jul ‘19) 3 parks (8 build
Slide 28: 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 Director Decisions about relevant activities are required to be made with unanimous consent of both parties composition Rotating Chairman with no c
Slide 29: 7. Summary financial profile
7. Summary financial profile
Slide 30: Income Statement
Income Statement Operating profit up €5 million to €96.1million Income statement (€ million) Jun '19 Jun '18 Increased profit share from JV (+ €4.5 14.8 15.7 Revenue million) and net valuation gains (+ €3.6 Gross rental income 7.4 9.0 million) more than offsetting lower net Property operating ex
Slide 31: Income Statement – by segment
Income Statement – by segment Investment Development Property and Asset Management H1 '19 H1 '18 H1 '19 H1 '18 H1 '19 H1 '18 Gross rental income 7.4 9.0 Gross rental income - - Gross rental income - - Property operating expenses (0.1) (0.1) Property operating expenses (0.8) (0.6) Property operating
Slide 32: Balance sheet - assets
Balance sheet - assets Investment Properties of €541 million, up €73 30 Jun '19 31 Dec '18 million since Dec ’18, despite €203 million ASSETS closing with JV Investment properties 541.0 468.5 Investment in joint venture and associates 298.7 241.4 Completed portfolio has decreased by Other non-cu
Slide 33: Balance sheet – Shareholders' equity and liabilities
Balance sheet – Shareholders’ equity and liabilities 30 Jun '19 31 Dec '18 Shareholders’ equity of €569 million, up €26 SHAREHOLDERS' EQUITY AND LIABILITIES million since Dec ‘18 Shareholders' equity 569.2 543.5 Total liabilities of €714 million, up €45 million since Dec ‘18 Non-current financia
Slide 34: Financial key ratios
Financial key ratios Gearing ratio (%) Unencumbered assets (€ million) 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 o
Slide 35: 8. Governance
8. Governance
Slide 36: VGP's board 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 37: 9. Going green
9. Going green
Slide 38: All new buildings from 2020 onwards: BREEAM Very Good or equivalent
All new buildings from 2020 onwards: BREEAM Very Good or equivalent Various initiatives being implemented European solar panel roll-out 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 S
Slide 39: European PV-system roll-out
European PV-system roll-out VGP Park Frankenthal – Europe’s largest solar rooftop system in 2016 (15,000 modules – 4MWp) PV-systems in operation Dec-2018 PV-system European roll-out (in design phase) So far 12.5MW of solar panels has been installed and a further c.17MW is currently under constructio
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 Munchen $2 "Grub 2 Kirchheim S2:- Heingstetteh
Slide 43: VGP Park München
VGP Park München Building Land plot Total GLA Tenant GERMUER - A1 94,439 m² 38,380 m² BMW GERMUER - A2 37,244 m² 15,136 m² BMW GERMUER - PHN 4,615 m² 22,190 m² KMT GERMUER - B 200,325 m² 81,413 m² KMT GERMUER - C 119,266 m² 48,470 m² KMT GERMUER - D 99,355 m² 40,378 m² [KMT] GERMUER - F 18,421 m² 7,
Slide 44: VGP Park München
VGP Park München 44
Slide 45: VGP Park Laatzen
VGP Park Laatzen 45
Slide 46: VGP Park Laatzen
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Slide 47: VGP Park Laatzen
VGP Park Laatzen 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 KraussMaffei - 20 year lease - Lease start: May-22 Building Land Plot Total GLA Status GERLAA - A 114,365 m² 54,728
Slide 48: VGP Park Osterweddingen (Magdeburg)
VGP Park Osterweddingen (Magdeburg) 48
Slide 49: VGP Park Osterweddingen (Magdeburg)
VGP Park 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 3
Slide 50: 11. Closing remarks
11. Closing remarks
Slide 51: VGP in a nutshell
VGP in a nutshell 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 por
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