Company Presentation Q1 2020 Fu Full Ye Year 2 2019 R Results ts Pr Presenta tati tion 28 28 Februa uary 2020 2020
1. Introduction to VGP
Th The Contin inental l European pure-pl play logistics real-es estate e group n Fully integrated business model – from land identification and acquisition to development and asset and property management n Focus on securing strategically located land plots n Major European cities with >100k inhabitants n Public transport links n 24/7-operations n Focus on developing large multi-tenant business parks n High-quality standardised logistic and semi industrial real estate c. c. 220 real est state and d 12 European countr 12 tries 69 logisti 69 tics parks de developm pment expe perts 3
Th The Contin inental l European pure-pl play logistics real-es estate e group (co cont’d) Ove Overvi view of existing VGP P parks (March 2020) 2020) 4
The Contin Th inental l European pure-pl play logistics real-es estate e group (co cont’d) Su Sustainable development achievements for 2019 and enhanced goals for 2020 onwa wards 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 represent 60% of our board; 60% of our board are independent non-executive directors Launch of VGP Foundation Setup a green financing framework Start of construction of VGP Park Munich: a trophy sustainable project Introducing new company-wide Code of Conduct and to publish Corporate Responsibility reporting in accordance with GRI Standards 5
Su Successf ssful tra rack re record rd of geogra raphic expansi sion and continued de delive very across markets 2019 2019 Expansion to Portugal 2017 2017 Expansion of partnership Fully-marketed – launch of 2 nd Joint secondary Venture (50/50) with equity offering (reaching 37% free float) 2011 2011 Sale of Czech 2015 2015 assets to Expansion to funds 2018 2018 Spain managed by 2007 2007 1998 1998 Further expansion Tristan Capital throughout Partners Listing on VGP Western- (Benelux, 2016 2016 Euronext founded in Austria) and Brussels and Czech Joint Venture Southern-Europe Prague Stock Republic as (50/50) with (Italy) Exchange a family- owned real 2013 2013 estate developer Expansion to Germany 2007 - 2007 2009 2009 Expansion 2002 2002 throughout the Mid-European Start-up of the region (Slovakia, development of Hungary) and a proprietary Baltics (Estonia portfolio and Latvia) 6
Pr Prov oven a ability t to r o rapidly c con onvert a acquired l land i into f o fully-le let and op operation onal p parks Completed 1 gro m ² ) Co gross l leasable a are rea ( (‘000 m 4,000 3,730 3,500 900 Compound Annual Growth Rate 3,000 ’20: 31% 2,810 ) ’15-’2 2,522 (CAGR) Co (C 2,500 900 1,032 1,996 900 2,000 1,651 146 719 1,500 288 642 1,191 446 1,000 1,798 642 1,764 416 1,333 500 831 593 549 - 2015 2016 2017 2018 2019 1Q 2020 1 2020 Projects held by JVs Projects held directly by VGP Projects divested Development of a significant leasable area with historical occupancy of >95% 2 As of 31 March 2020 1 Including 100% of JV and assets divested (see chart breakdown). 1Q2020 also includes assets currently under construction 7 2 Occupancy at March 2020 for completed portfolio (incl JV) was 99.7%. Since 2010 occupancy rate was consistently >95% except 2014 when it was 94%
Prov Pr oven t track r k recor ord of of d develop oping u unique a and h high q quality p prop operties across strat ac ategic locat ations with blue chip tenan ants VG VGP Park Frankenthal VG VGP Park Ch Chomutov VGP Park Rodgau VG VGP Park Mü VG München Germany Ger Cz Czech Republic Germany Ger Ger Germany Completed 2018 Completed 2017 Completed 2015 – 2016 Construction 2019 (started) Total Gross Lettable area: Total Gross Lettable area: Total Gross Lettable area: Total Gross Lettable area: 147,022 m ² 49,808 m ² 103,699 m ² 309,881 m ² Standardised bu Sta buildi ding Newly built Ne require re rements with some Hi High h techni hnical stand ndard (low mai (l aintenan ance) adap ad aptions to tenan ants’ needs 8
Pr Prov oven t track r k recor ord of of d develop oping u unique a and h high q quality p prop operties across strat ac ategic locat ations with blue chip tenan ants (cont’d) VG VGP Park Sa San Fernando VGP Park Ni VG Nijmegen VGP Park Timisoara VG VG VGP Park Malacky Spain Sp Netherlands Ne Ro Romania Slovakia Sl Construction 2017-2020 Construction 2019 (started) Construction 2011-2018 Construction 2009-2016 Total Gross Lettable area: Total Gross Lettable area: Total Gross Lettable area: Total Gross Lettable area: 122,000 m ² 190,000m ² 116,000 m ² 96,608 m ² Sta Standardised bu buildi ding Newly built Ne re require rements with some Hi High h techni hnical stand ndard (low mai (l aintenan ance) adap ad aptions to tenan ants’ needs 9
2. Operating model
VGP oper VGP perating model del highlights Fully integrated business model combining a unique expertise as a developer, 1 asset manager and owner of high-quality logistics assets in Europe Value creation crystallisation and cash recycling for all new projects 2 through strategic partnership with Allianz Well located and diversified asset portfolio across Western and 3 Eastern Europe Quality rental income base through well-leased portfolio with a 4 blue-chip customer base Prime landbank with construction risk well managed as VGP in most cases acts as General Contractor and imposes strict pre-letting 5 requirements Experienced and highly committed management team with proven track 6 record 11
Fu Fully lly in integrated busin iness model l wit ith in in-ho hous use capabilities and nd 1 compet co eten ences ces Co Concept & Re Rent La Land Co Construction Portfolio Po Des Desig ign n Identification of top n In-house design of n High quality logistics n Mainly long term lease n Long term developer / locations directly projects constructed by investor (own portfolio or buildings based on agreements connectable to existing external constractors in sale to JV) strict guidelines for n Officers responsible for infrastructure multi-purpose close cooperation with n Portfolio management monitoring of the utilisation future tenants n Evaluate potential - Asset management tenants’ requirements projects, technical due n Strategic alliance with n Acting as a general until the handover of - Property management diligence contractor on a architecture firms the premises n Centralised maintenance significant part of the n Obtain the zoning and n Some adaptation n Working together with of properties construction process in building permit according to tenants‘ local real estate brokers selected geographies requirements but within while using external VGPs own standard services in remaining building parameters geographies n High technical and quality standards ü Vertically integrated ü High operational efficiency Certain customisation ü per tenants needs 12
Value creation crystallisation through strategic partnership with Allianz enabling capital recycling for all new projects 2 Si Simplified structure of the two wo joint ventures VG VGP European Logistics an and VG VGP European Logistics 2 50% 50% 50% 50% 5.1% 100% Au Austria 100% 94.9% 100% 100% 100% It Italy 100% Ne Netherlands Cz Czech Germany Ger Sl Slovakia Hungary Hu 100% Republic Re Portugal Po 100% Ro Romania 100% Sp Spain Hi Highlights § Two joint ventures, each with an investment target of € 1.7 billion gross asset value (Dec-19: JV1: c. € 1.6 billion; JV2: c. € 0.1 billion) § Exclusive Right of First Refusal for the respective JV to acquire assets in designated countries § VGP to continue to service both portfolios as asset, property and development manager § Joint Ventures act as long term capital buyer at market value Driving sustainable growth through develop and hold strategy with long term partner whilst maximizing shareholder value through optimal capital allocation 13
Por Portfol olio g o grow owth p primarily d driven b by c con ontinued c capital e exp xpenditure 3 fi financed d mostly by by rapi pid d cash recycling To Total al portfo folio – in inclu ludin ing 100% JV JV ( € mm) mm) Own portfolio JVs-related 1 3,000 2,771 2,771 Compound Annual Growth Rate 2,500 ’19: 46.1% ) ’14-’1 (CAGR) Co 1,936 1,936 (C 2,000 1,978 1,506 1,506 1,500 1,195 1,195 1,360 878 1,000 645 500 793 677 628 576 550 416 - 2014 2015 2016 2017 2018 2019 Ca Capital exp xpenditure € 337.0m € 261.0m € 352.7m € 539.5m € 1,490m 1,490m Ne Net c cash i inflow f from d divestments € 236.1m € 155.7m € 438.4m 2 € 339.0m € 1,169m 1,169m As of December 2019 1 JVs-related includes German 5.1% stake held directly by VGP and portion of Held-for-Sale being developed on behalf of the JVs 14 2 Includes sale of Mango building, Spain ( € 150m)
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