Slide 1: Full Year 2019 Results Presentation
Full Year 2019 Results Presentation 28 February 2020
Slide 2: 1. Highlights 2019
1. Highlights 2019
Slide 3: Strong demand for premium European logistics assets drives annual results
Strong demand for premium European logistics assets drives annual results n Record net profit of €205.6 million, a 69.8% YoY increase n Continued strong business growth n Record signed and renewed rental income of €54.9mm n Total signed rental income of € 155.0mm (+48.9% YoY) n Record 34 buildings w
Slide 4: Ongoing strong financial performance
Ongoing strong financial performance n Strong growth of total portfolio value1 €2,771m €1,936m +43% 2018 2019 €155.0m €104.1m n Record growth in committed annualised rental income1 +49% 2018 2019 €205.6m n Record net profit due to development €121.1m and letting activities at record levels +70% 2018
Slide 5: Sustainable development achievements for 2019 and enhanced goals for 2020 onwards
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 certification for new developments Changes to the board – women now repr
Slide 6: 2. Operational performance
2. Operational performance
Slide 7: 2019 saw enduring strong momentum for leasing growth
2019 saw enduring strong momentum for 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 50 €25 €- 0 2014 2015 2016 2017 2018 2019 Rolling rental income Increase
Slide 8: Driving resilient portfolio growth
…driving resilient portfolio growth … 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 1.000 645 500 793 677 628 576 550 416 - 2014 2015 2016 2017 2018 2019
Slide 9: Which has resulted in a diversified investment portfolio
…which has resulted in a 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
Slide 10: Portfolio leased on a long-term basis to a diversified and blue-chip customer base
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 6
Slide 11: Solid delivery of new developments in 2019
Solid delivery of new developments in 2019 n During 2019 a total of 19 buildings were delivered, representing 287,000 m2 n Largest share of new developments delivered for VGP Park San Fernando de Henares, tenants active in: VGP Park Berlin, Germany Spain - e-commerce (41%) - logistics (35%) - light
Slide 12: Current development pipeline
Current development pipeline n At Dec 2019 a total of 34 buildings were under construction, representing 706,000 m2 n This equates to € 45.8 million of new lease contracts n The portfolio Under Construction was 78% pre-let at year-end if immediate pipeline projects are included VGP Park Munich, Germ
Slide 13: Well advanced land bank to support future growth
Well advanced land bank to support future growth Build-up of Land bank (m2) Land bank1 – geographic breakdown 7,230,000 6,210,000 1,020,000 Other 5% Netherlands 5% Hungary 5% Germany 33% 1,800,000 4,410,000 Spain 8% 2,850,0001,160,000 2,880,000 Slovakia 11% 1,320,000 Romania 14% Czech Republic 19% L
Slide 14: 2. Financial performance
2. Financial performance
Slide 15: Income Statement
Income Statement n Operating profit up €101.3mm to €252.4mm Income statement (€ million) 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 16: 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 17: Balance sheet - assets
Balance sheet - assets n Investment Properties of €793mm and 31 Dec '19 31 Dec '18 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 18: 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 19: 3. Summary and Outlook
3. Summary and Outlook
Slide 20: Summary and Outlook
Summary and Outlook Summary n Solid business growth across portfolio driving many records n New Joint Venture with Allianz Real Estate allows for continued rapid cash recycling and de-risking, now across the portfolio1 n Formidable land bank and enduring strong momentum for leasing growth secures a
Slide 21: Appendix
Appendix fal G) “U
Slide 22: 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 23: VGP Park München
VGP Park Miinchen $2Grub 4 Kirchheim S2:- Heinystettefi ={5}
Slide 24: 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 25: VGP Park München
VGP Park München 25
Slide 26: VGP Park Laatzen (Hanover)
VGP Park Laatzen (Hanover) 26
Slide 27: VGP Park Laatzen (Hanover)
VGP Park Laatzen (Hanover) LOCATION — Laatzen (Hanover) • 284.987 m2 development land. First part (236,296 m²) acquired in Aug-19, second part (48,691 m²) acquired in Jan-20 • Pre-let with KraussMaffei - 20 year lease - Lease start: May-22 Building Land plot (m2) Total GLA (m2) Tenant GERLAA - A 114
Slide 28: VGP Park Magdeburg
VGP Park Magdeburg rn gh ee > Ll ede 4 28
Slide 29: VGP Park Magdeburg
VGP Park Magdeburg Building Land Plot Total GLA LOCATION —Magdeburg (Osterweddingen) Status GERMAG - A 54,619 m² 26,365 m² Development GERMAG - B 72,715 m² 35,100 m² • Circa 240,000 inhabitants Development GERMAG - C 65,522 m² 31,628 m² Development • Capital city of Saxony-Anhalt GERMAG - D 65,522 m
Slide 30: 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