Slide 1: 2015 Full Year Results
| 201 5 Full Year*Results 19 ery 2016 Staples, Corby
Slide 2: 2015 Full Year Results — Summary
SEGRO 2015 FULL YEAR RESULTS — SUMMARY Transformation complete — SEGRO now a pure-play, pan-European industrial and logistics REIT Strong operational and portfolio performance — Favourable occupier and investor supply-demand conditions Well positioned to continue outperforming — Significant organic
Slide 3: Financial Review
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Slide 4: Financial Summary
SEGRO FINANCIAL SUMMARY Earnings momentum Strong like-for-like net rental income growth Enhanced by income from development 21% increase in NAV Capital value growth from yield compression and UK ERV growth Strengthened financial structure Realised and unrealised gains on portfolio Disposal proceeds
Slide 5: Income Statement
SEGRO INCOME STATEMENT snes" 7% increase in Adjusted PBT 2015 2014 £m £m Gross rental income 210.7 215.1 Property operating expenses (37.7) (40.5) Net rental income 173.0 174.6 Share of joint ventures’ adjusted profit! 444 46.3 Joint venture fee income 17.0 11.8 Administration expenses? (28.5) (28.3
Slide 6: Drivers of Net Rental Income
SEGRO DRIVERS OF NET RENTAL INCOME macro" Like-for-like net rental income +4.2% £74m £238.0m £(0.8)m £19.0m +4.2% +5.2% +1.2% Group: UK: CE: £(6.0)m £(8.0)m Prior year incl. £3.1m payment from Neckermann administrator £(27.2)m and £2.7m surrender premium at Pegasus Park FY 2014 Disposals Acquisition
Slide 7: Vacancy Rate Reconciliation
SEGRO VACANCY RATE RECONCILIATION weer Strength of occupier demand reflected in all-time low vacancy rate Existing standing assets 4.9% Existing standing assets 3.8% 31 December Long-term Short-term take- New Acquisitions Disposals 31 December 2014 lettings backs developments 2015 1 Speculative deve
Slide 8: Pro-forma Accounting Net Rental Income
SEGRO PRO-FORMA ACCOUNTING NET RENTAL INCOME WHERE BUSINESS WORKS Group JVs Total £m £m £m 2015 net rental income 173.0 59.7 232.7 Incremental impact of: Disposals since 1 January 2015 (10.2) (3.3) (13.5) Bath Road office portfolio disposal (14.8) - (14.8) (completed 29 Jan 2016) Acquisitions since
Slide 9: Total Cost Ratio
SEGRO TOTAL COST RATIO WHERE BUSINESS WORKS Incl. joint ventures at share 2015 2014 Change £m £m % Gross rental income 283.9 289.7 (2.0) Property operating expenses 37.7 40.5 Administration expenses! 28.5 28.3 JV operating expenses 114 12.2 JV management fees? (13.8) (12.2) Total costs? 63.8 68.8 (7
Slide 10: 31 December Adjusted EPS Dividend
31 December Adjusted EPS Dividend Realised and Pension Swap close-out Other 31 December 2014 unrealised gains settlement movements incl 2015 FX
Slide 11: Portfolio Value Change and ERV Growth by Business Unit
SEGRO PORTFOLIO VALUE CHANGE AND ERV GROWTH BY BUSINESS UNIT! ‘ene tees woes 11.7% completed portfolio valuation movement (UK +13.1%; Continental Europe +7.9%) 1 £600m I Slough Trading Estate +11.0% I £500m Park Royal +17.4% SELP +9.7% I Heathrow +13.3% SEGRO wholly-owned +5.8% , UK big box logistic
Slide 12: Financial Position
SEGRO FINANCIAL POSITION WHERE BUSINESS WORKS Reduced financing costs; enhanced financing capability 31 December 31 December 31 Dec 2015 2014 2015 pro forma! £m £m £m Group only Net borrowings (£m) 1,679 1,807 1,486 Group cash and undrawn facilities (£m) 429 234 503 Weighted average cost of debt? (%
Slide 13: SEGRO Euro Currency Exposure and Hedging
Balance sheet, £m 31 December 2015 2,000 Assets 89% hedged Other Euro 1,500 liabilities m Euro currency 1,000 swaps mEuro debt 500 m Euro gross assets 0 Income Statement, £m FY 2015 100 Income 69% hedged 80 60 mEuro income 40 20 0 mEuro costs SEGRO EURO CURRENCY EXPOSURE AND HEDGING Impact of euro v
Slide 14: Financial Summary
SEGRO FINANCIAL SUMMARY « Strong performance in 2015 = Healthy earnings momentum — Growing earnings contribution from development = Expect to maintain LTV below 40% — Tactical disposals to fund investment activity 14
Slide 15: Strategic focus delivers strong results
Strategic focus delivers i strong results a Se eet oe Ee ee sm Lae Pes: = 3 aa } i oy SiGe | i BEY oo. Decathlon, Brackmills
Slide 16: Supportive Occupational Market Backdrop
SEGRO SUPPORTIVE OCCUPATIONAL MARKET BACKDROP WHERE BUSINESS WORKS GDP growth expected across our major markets! 4 (9b pa, 2015-17e) 3 : | 0 Poland UK Germany Euro Area France Italy UK Grade A demand not being satisfied by supply? (million sqm of Grade A take-up vs supply) 4 mAverage availability mT
Slide 17: Driving Total Property Returns from Our Portfolio
SEGRO DRIVING TOTAL PROPERTY RETURNS FROM OUR PORTFOLIO WHERE BUSINESS WORKS Asset management Development | Capital value growth Income growth 2015 portfolio realised and unrealised valuation movement, £ millions Accounting net rental income, £ millions 650 40 550 30 25 95 500 (27.2) 450 2 15 400 10
Slide 18: Active Asset Management
SEGRO ACTIVE ASSET MANAGEMENT WHERE BUSINESS WORKS, Positive leasing momentum in 2015...! a) mz || 6 16 2 3 5 14 4 12 SE [o) 53 £10 BR o 8 © 1 a 6 + > Zz 4 2 0 ' N 2012 2013 2014 2015 2009 2010 2011 2012 ...improving occupancy. ..2 2013 2014 Rental growth from active management of existing portfolio
Slide 19: Delivering Growth Through Development
SEGRO DELIVERING GROWTH THROUGH DEVELOPMENT sawn Development completions worth £12m of annualised rent Urban distribution & light industrial Big box logistics a z D jby Gateway sera Asics, Krefeld 22,000 sq m speculative: fully let 35,500 sq m pre-let 5,500 sq m speculative: under offer ), Poland 17
Slide 20: Delivering Growth Through Development
SEGRO DELIVERING GROWTH THROUGH DEVELOPMENT secre" £14m of future income secured in 2015 UK Continental Europe NaturaSi EI Supermercado Natural Pre-let, Bologna om “=' Hermes OOO) dicron Pre-let. Rugby Gateway Pre-let, Slough Trading Estate Pre-let, Paris ; Pre-let, Vimercate v7 OVS 1 <= O = SIE, ty
Slide 21: Land Acquisitions to Drive Future Development Growth
SEGRO LAND ACQUISITIONS TO DRIVE FUTURE DEVELOPMENT GROWTH sameness" 304 hectares of land secured through acquisitions or under option Value of land acquisitions during 2015, by geography Spain Poland = Acquired £221m of land in 2015, half in London and SE England (Hayes, Bracknell, Purfleet) = £50m
Slide 22: Growth Through Acquisitions
SEGRO GROWTH THROUGH ACQUISITIONS * £334m of asset acquisitions increased scale in UK and Continental Europe big box logistics £1.2bn of asset acquisitions since November 2011 22
Slide 23: Growth Through Acquisitions
SEGRO GROWTH THROUGH ACQUISITIONS snenaresvees Entered Northern Italian logistics market through acquisition of Vailog wLAILOG A SEGRO GROUP COMPANY is One Express, Bologna odis, B Dascher, Paris 3 pre-let developments agreed since acquisition (£2.9m rent)
Slide 24: Funding Investment and Improving Portfolio Quality
SEGRO FUNDING INVESTMENT AND IMPROVING PORTFOLIO QUALITY Asset swaps — £188m sales, £125m acquisitions through swaps in 2015 WHERE BUSINESS WORKS £188m acquisitions since Nov 2011 at £270m disposals since Nov 2011 24
Slide 25: Funding Investment and Improving Portfolio Quality
SEGRO FUNDING INVESTMENT AND IMPROVING PORTFOLIO QUALITY sneer" £661m from disposals of non-core assets, 8% ahead of valuation £2.2bn of disposals since November 201 1 25
Slide 26: Priorities for 2016 and beyond
ae ™ Priorities for 2016 and beyond — Well ay for Ya Pagani, Park Royal
Slide 27: Priorities for 2016 and Beyond
SEGRO priorities FOR 2016 AND BEYOND “’ Strategy unchanged: disciplined capital allocation and operational excellence « Take advantage of portfolio strength and favourable occupational market — Capitalise on SEGRO’s strong market position in established geographies — Build scale in SEGRO’s newer geo
Slide 28: Favourable Supply-Demand Dynamics Expected to Be Maintained
SEGRO FAVOURABLE SUPPLY-DEMAND DYNAMICS EXPECTED TO BE MAINTAINED snweneresvexs Supply of warehouses in UK and France falling behind levels of demand UK Big Box supply-demand dynamics! Speculative UK Big Box completions? France logistics supply-demand dynamics? (m sqm) (m sqm) (m sqm) 3.0 25 z 3.0 5
Slide 29: Favourable Demand-Supply in All Our Key Markets
SEGRO FAVOURABLE DEMAND-SUPPLY IN ALL OUR KEY MARKETS Geography or Demand Supply SEGRO Rental growth Property Type conditions conditions vacancy! expectations 2016-172 Greater London STRONG LIMITED 5.4% 4-5% pa Slough Trading Estate / STRONG LIMITED 7.863 2-4% pa Thames Valley Midlands / South East
Slide 30: Near Term Growth from Current Development Programme
SEGRO NEAR TERM GROWTH FROM CURRENT DEVELOPMENT PROGRAMME WHERE BUSINESS WORKS, Current development pipeline, asset type by ERV (31 December 2015) oo - Oe ~ ; Nes ~~ Yrigg eo, ~~ . Q %, & 7 §, 1% c _ roy Logistics lo 40% ~ 1 Total development cost including land value at commencement of development
Slide 31: Building Speculatively Where Demand-Supply Dynamics Are Strongest
SEGRO BUILDING SPECULATIVELY WHERE DEMAND-SUPPLY DYNAMICS ARE STRONGEST weer’ Demand for UK big box warehouses exceeds supply Speculative development underway, by property type and location Rapid leasing of speculative space (Letting status of development completions in 2012-1 6e, %) £10.8m of poten
Slide 32: Future Development Pipeline
SEGRO FUTURE DEVELOPMENT PIPELINE mecssnssvens Further strong potential to generate new income over the next five years Current land bank Geographic split of future pipeline, by ERV' 3 (31 December 2015) (31 December 2015) Future pipeline (2.2m sq m} * £751m estimated development costs! Bel/Neth Ger
Slide 33: Substantial Growth Potential Within Our Control
SEGRO SUBSTANTIAL GROWTH POTENTIAL WITHIN OUR CONTROL warcreS" From both existing assets and our development pipeline Annualised gross cash passing rent', £ millions itional cash rent potential 45% aa 401.9 7 ——e 292.7 (17.7) 31 Dec 15 Bath Road Rent in Reversion to 2014/15 Potential Rent from Futur
Slide 34: Land Acquisitions to Drive Future Growth Prospects
SEGRO LAND ACQUISITIONS TO DRIVE FUTURE GROWTH PROSPECTS sameness" Roxhill agreement paves the way to build scale in UK big box logistics = Exclusive partnership with Roxhill = Potential to create 10m sq ft of big box logistics in Midlands and SE England over 10 years = — Small initial investment; p
Slide 35: Priorities for 2016 and Beyond
SEGRO priorities FOR 2016 AND BEYOND “’ Strategy unchanged: disciplined capital allocation and operational excellence « Take advantage of portfolio strength and favourable occupational market — Capitalise on SEGRO’s strong market position in established geographies — Build scale in SEGRO’s newer geo
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Slide 37: Appendix: Portfolio and financial data
Appendix | Portfolio and financial data nH ney Staples, Corby
Slide 38: Adjusted Income Statement
SEGRO ADJUSTED INCOME STATEMENT WHERE BUSINESS WORKS JVs proportionally consolidated 2015 2014 Group! JVs Total Group JVs Total £m £m £m £m £m £m Gross rental income 210.7 73.2 283.9 215.1 74.6 289.7 Property operating expenses (37.7) (13.5) (51.2) (40.5) (11.2) (51.7) Net rental income 173.0 59.7 2
Slide 39: Balance Sheet
SEGRO BALANCE SHEET WHERE BUSINESS WORKS JVs proportionally consolidated 31 December 2015 31 December 2014 Group JVs Total Group JVs Total £m £m £m £m £m £m Investment properties 4,424.0 1,305.5 5,729.5 3,477.0 1,230.8 4,707.8 Trading properties 37.6 5.8 43.4 778 13.1 90.9 Total properties 4,461.6 1
Slide 40: EPRA Capital Expenditure Analysis
SEGRO EPRA CAPITAL EXPENDITURE ANALYSIS smesgoresS Ms proportionally consolidated 2015 2014 Group JVs Total Group JVs Total £m £m £m £m £m £m Acquisitions 601.4 72.6 674.0 437.1 234.0 671.1 Development! 144.1 20.3 164.4 1363 21.0 157.3 Completed properties? 18.1 69 25.0 21.7 4.1 25.8 Other? 13.4 3.9
Slide 41: 'Look-Through' Loan to Value Ratio
SEGRO ‘LOOK-THROUGH’ LOAN TO VALUE RATIO WHERE BUSINESS WORKS 31 December 2015 31 December 2015 Weighted average cost pro forma, £m £m of gross debt, %! Group gross borrowings 1,502 1,823 42 Group cash & equivalents 16 16 - Group net borrowings 1,486 1,807 - Share of joint venture net borrowings 386
Slide 42: Debt Maturity Profile
SEGRO DEBT MATURITY PROFILE mecoanssvons AS at 31 December 2015, £ millions 600 500 400 300 20 10 [ 2016 2017 2018 2019 2020 2021 2022 2023 2024 mSEGRO bonds mSEGRO bank debt wJV debt at share mSEGRO undrawn jo) oO jo) Adjusted for sale of Bath Road office portfolio and APP refinancing in January 20
Slide 43: SEGRO Continental Europe Assets Under Management
SEGRO SEGRO CONTINENTAL EUROPE ASSETS UNDER MANAGEMENT mmncnareswors€ millions, as at 31 December 2015 1,200 €3,154m AUM at 31 December 2015 (£2,319m) 1,000 = — SELP joint venture focuses on big 800 box logistics assets 600 = Other European countries include = The Netherlands, Belgium and Austria 40
Slide 44: Timing of Current Development Pipeline Completions
SEGRO TIMING OF CURRENT DEVELOPMENT PIPELINE COMPLETIONS saevaresvess Annualised gross rental income from development completions, £ millions! 30.0 = Almost all of the current pipeline expected to complete in 2016 25.0 08 52 = £15.8m gross rent from pre-let ° developments 20.0 6.7 = £10.3m potential
Slide 45: Future Development Pipeline
SEGRO FUTURE DEVELOPMENT PIPELINE messsnssvens Indicative fully-let gross rental income potential Fully-let annualised gross rental income by year of development completion - indicative! (31 December 2015) £35m £30m ot) £25m £20m £15m 29.4 £10m 7 a a £0m OS = < 2 = 2 8 x g g g g g 5 5 m Pre-let = Co
Slide 46: Attractive Land Acquisitions to Drive Future Growth Prospects
SEGRO ATTRACTIVE LAND ACQUISITIONS TO DRIVE FUTURE GROWTH PROSPECTS WHERE BUSINESS WORKS Land bank value, £m 400 350 300 25 20 150 100 5 o o oo FY H1 FY HI FY Hi FY HI FY 2011 2012 2012 2013 2013 2014 2014 2015 2015 mam Future development pipeline mam Alternative use mag | ong-term and residual land
Slide 47: EPRA Performance Measures
SEGRO EPRA PERFORMANCE MEASURES WHERE BUSINESS WORKS 2015 2014 £m £m EPRA profit after tax 137.3 18.4p 127.8 17.2p EPRA NAV 3,453.4 463p 2,844.7 384p EPRA NNNAV 3,195.9 428p 2,514.6 339p EPRA net initial yield 5.0% 5.4% EPRA toppec-up net initial yield 5.5% 6.0% EPRA vacancy rate 4.8% 6.3% EPRA cost
Slide 48: European Industrial Investment Volumes
SEGRO EUROPEAN INDUSTRIAL INVESTMENT VOLUMES WHERE BUSINESS WORKS European industrial investment volumes By country, €m 25,000 20,000 15,000 10,000 5,000 e) mw UK Source: CBRE 2007 i i i 2008 | Xe) is) is} NX Germany @ © 2011 =! ii 201, a i 205 ho a isa) Ss Cn EE m Rest of Europe 2012 = European ind
Slide 49: Prime Logistics Yields vs Bond Yields
SEGRO PRIME LOGISTICS YIELDS VS 10 YEAR BOND YIELDS WHERE BUSINESS WORKS 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Source: CBRE, Bloomberg (data correct at 15 February 2016) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ——™ > 2014 2015 Warsaw: 6.4% Paris: 6.0% Dusseldorf: 5.2% London: 4.5% UK 10yr bond: 1.4
Slide 50: European Industrial and Logistics Supply of New Space
SEGRO EUROPEAN INDUSTRIAL AND LOGISTICS SUPPLY OF NEW SPACE WHERE BUSINESS WORKS Logistics space under construction! UK Grade A logistics supply-demand dynamics? (m sqm) (m sqm) 3.0 3.0 252 E 2. 25 g D pa 205 2.0 > 2.0 wo = 158 1.5 3 NI 8 = a 1.0 & 1.0 ° 2 0.5 a os= oil. : 0.0 = = x 2, , S24 Pa vo :
Slide 51: European Industrial & Logistics: Take-up Statistics
SEGRO EUROPEAN INDUSTRIAL & LOGISTICS semen Take-up statistics Take-up — UK' Take-up — France? (m sq m) (m sqm) 3.0 4.0 20 3.0 2.0 oEtatarltil Hk 0.0 0.0 Bs s2tegee2 8 8 6 6 6 5565 5 5 8 Ss 6 YN © © N A WN WA KR A a aA m New m Second hand Take-up — Poland! Take-up — Germany? (m sqm) (m sqm) 3.0 8.0
Slide 52: European Industrial & Logistics: Availability Statistics
SEGRO EUROPEAN INDUSTRIAL & LOGISTICS WHERE BUSINESS WORKS Availability statistics Availability - UK! (m sq m) 3.0 2.0 0.0 m New / Early Marketed al ~ ° ° a a 2015 2010 2011 2012 mSecond hand Space under construction and vacancy rate — Poland! (msqm) 1.0 15% 10% 05 | 5% 0.0 = 0% _ oo = wo 3 5 5 S g
Slide 53: London Thames Valley Industrial & Logistics
SEGRO LONDON 8 THAMES VALLEY INDUSTRIAL & LOGISTICS meer Take-up and availability statistics Take-up — Thames Valley Supply — Thames Valley (000 sq m) (000 sq m) 600 600 400 400 | - [ ; | : ll i 0 ° 3 a ° & 2011 2012 2013 2014 2015 ° = C a) + Ta) S S S 5 S S CN a N <] a CN Take-up — Park Royal Suppl
Slide 54: Heathrow Airport Cargo & Passenger Volumes
SEGRO HEATHROW AIRPORT CARGO & PASSENGER VOLUMES WHERE BUSINESS WORKS Heathrow Airport cargo volumes (million metric tonnes) 1.6 15 ~~ 14 eS7V 1.2 11 1.0 May-06 May-07 May-08 May-09 May-10 May-11 May-12 May-13 —10yr ave — Rolling annual Source: Heathrow Airport May-14 May-15 Heathrow Airport passeng
Slide 55: Forward-Looking Statements
SEGRO FORWARD-LOOKING STATEMENTS 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