Ctp N V

Good morning everyone from CDP here in Prague, Czech Republic. Excited and thanks for dialing in. It's good to have you on the call. We are going to talk about the 2025 results, which are good. But before we start, I'd also like to look back at 2025. You could say it has been 25 years of growth. We have completed our first building in 2000 here in Czech Republic in Humpolets where we did our first city park model. The city park Humpolets was the first site we acquired initially 10 hectares and later on we had the opportunity to grow that park. So that's where we first started with a clubhouse where we looked for people and did establish a small team and did then develop a number of properties and those buildings are still fully leased and many of the tenants which we initially had, actually they're still there and they've been able to grow their business. So, 25 years of continuous growth which started with nothing, with a piece of land and then one building and second, et cetera, et cetera. So, thank you very much to all the very loyal clients, all those companies who we have been working with. the companies who gave us the opportunity to work for them outside of the Czech Republic later on. And, of course, thank you very much to all people we've been working with a lot over the past 25 years. And thank you to all other partners and, of course, the fantastic team here at CTP, which in the meantime is 1,000 people, more than 1,000 actually. nowadays so that has been 25 years of continuous growth good times bad times with all kind of different opportunities along the way for 25 has been a strong year has been a good year with good results and which illustrates also the the growth engine the thing we like to do we like to grow and the largest growth engine in the business here in in europe so Last year has been also an important year for us because we added another country and we opened up places in Italy. In the meantime, we have more than 200,000 square meters of projects under construction in Italy, mostly pre-leased, 70%. We do that in the south of Milan, close to Piacenza, Castel San Giovanni, but also in Padova and we have other projects underway. At the same time, we set up a team of people in Italy and we have a land bank to build an average of, we think, 200,000 square meter of properties over the next years, and we hope within five years to hit the 1 million square meter lettable area target in Italy as well. We see good opportunities in Italy. Overall, we see opportunity in Europe over the next year, so we're quite happy with the entry so far, and we're making good progress. The land bank, they're mostly north Italy, but also strategic sites. in the region of Rome, so there's also other places where we believe we will be successful in the development of our industrial properties. Again, mostly for existing clients, so the companies who are already renting from us in other markets. For those clients, we plan to develop properties in Italy and the amount of business we do for existing clients is approximately 70% of the total amount of business we do. When we look at drivers, yeah, for Europe, it's definitely nearshoring. Asian companies come here, set up shop in Europe, for Europe. I mentioned defense, but also technology, the semiconductor industry, consumer goods. People have more free time, so they go out biking, running, pets, you know, pets, you know, massive industry. We do multiple things. facilities for pet food producers, pharmaceuticals, so there's a whole, yeah, consumer spending means people have more money to spend than they had 25 years ago when we started here. And we see that in other markets in Serbia and Slovakia, in Romania, where we came initially maybe for low-cost manufacturing and later turned into manufacturing for domestic market. And nowadays, Central Europe is the engine of Europe. Here is where you go for manufacturing. And that is all positive. So that is a good outlook. And we have a number of growth drivers. We are not in it for the short term, we're in it for long. So we have plans for the next 25 years. And those plans are definitely to make CDP a global player and to grow with our clients and to use all the experience we have building business parts. Last year, we signed 2.3 million square meters of new leases, 2.3, which is a bit more than we did the year before. In 24, we did some 10% less. Rental rates were a bit higher last year in 25 compared to 24, approximately almost 5% higher rents than same building in a year earlier in 2024. So with rental growth, 10% more deals and still at around 10% yield and cost. Target, mid-term ambition to continue to grow with existing clients, which we have a lot of them, good companies, they pay on time. The 99.7% is debt collections of money which we charge to tenants which is paid. And as I said, most of them on time, good companies. 70% of all new business we do with existing clients have 80% retention rate. And this is also important to mention. 75% of all the projects we do are being built within existing business parks. So we don't do standalone boxes, we really create an address, a park, an environment, an ecosystem with sufficient infrastructure, amenities, facilities for people to work, develop themselves, to create business together, to work together, to grow stronger and to have a stable business park, also not overexposed to one specific industry, you want to mix it up with different industries, it's also good for labor market. You see a lot of automatization within among our tenants, so they continue to invest in their facilities, in their production lines, in their technologies, which is good as well. We break it down at CTP, as you know, we talk about three things, we have the operator, This is the income producing part, so the part of the company who look after the buildings which we have built over the past 25 years. It's 840 million euro of rental income on the way to hit 1 billion euro rental income next year. So as the operator with good occupancy level, always above 90%, between 93, 95, depends a little bit on the market and the location where you are. It depends also on how much property we actually build to enter a market and you need time for the market to absorb all those buildings, but remain at the target around the 93, 95%. That's the operator. Then we have the developer. Those are the people at CDP who develop properties or who build business parks and properties. Quite active now also with inventing new type of properties, adjustments, constantly working on making these buildings better, both the existing refurbishment upgrades but also new properties and better means flexibility so we have genetic designs buildings for multiple generation energy consumption maintenance those things are important when you design a property that's where these guys are busy with some highlights as well that we've done in in terms of completions last year 1.3 million square meters, 180,000 square meters in Bucharest, 65,000 square meters in the city of Budapest in Hungary, but also, of course, in Brno, Czech Republic, the home of CTP, where we have built millions of square meters. Last year we did a deal with FedEx, for example, just to mention one. Part of our 30-30 plan, right, to grow to 30 million square meters. Two million square meters on the construction this year, which is good for 150 million euros of rental income. I'll highlight maybe if you talk about those 2 million, we do a lot in Poland, the largest economy, the largest country in Central Europe, very dynamic, can do, a lot of support from the government, very good locations I think we have secured, good team on the ground. So there we invest a significant amount of money now building properties, mostly in East, in and around Warsaw, but also Upper Silesia, Katowice, Zabrze, as well as along the German border on the west side of Poland. So we see that good opportunity, as well as in Gdansk, by the way. Another highlight I would... Yeah, Bucharest, Romania has been good. It's still strong. Serbia is strong. Germany this year is important to get things going in Mülheim. Some of you have been on the Capital Markets Day event last year. We looked at Mülheim. Good energy park with Aon, Siemens and more to come. So that's happening, making good progress in Dusseldorf as well as in Wuppertal. So overall, quite positive about Germany as well. I think, yeah, well established and in good position.

Last but not least, the growth engine, the third activity. We look globally at opportunities in different countries.

And how does this work? Well, it comes from clients. Clients tell us, okay, we are going to that market because we see growth. We need properties. Are you there? Sometimes we are, sometimes we are not. If we are not, then we have a closer look at such a market. We think, shall we go there? It doesn't make sense. No. which is in Vietnam, and strong demand from existing clients. So we continue to have a closer look. We announced it last September, and so far we've been making some good progress. We're having a closer look at the market and the opportunity. We have a few people in the meantime on board. So we have a CTP Vietnam, and we have their small team of experienced clients. industrial property people vietnam obviously strategically located 100 million people very productive work workforce but also quite young people around 30 years of age so in the future also you will see consumer spending yeah well connected to the rest of the world and that would also give an opportunity to get us feeling the ground in asia and also closer to other asian companies who look at coming to europe and that will keep you up to date on developments we are making Yes, not only about getting bigger, need to also get a better company. So we are obviously constantly working on getting a better company with maybe doing more buildings with less people, more efficient, more effective, different processes and procedures, to optimize. For example, when it comes to property management, when it comes to energy consumption, we know exactly how much energy tenants consume in their buildings. We can help them, again, with energy management. with clear understanding of the condition of the building and when there are issues property management related then we can fix that we have a clear system for that in place in the meantime to monitor all the the maintenance and repairs which potentially are needed so both energy consumption as well as maintenance and repairs to make sure buildings are in good condition and remain in good condition that's one example and there's many other things we've done whereby we introduce new processes better and software and optimize standardized digitalize the company and that makes us feel better and quicker and more efficient to to continue grow our business yeah so we're looking forward very much to the next 25 years thank you for your attention i will hand over to rob some of you know rob he's not really new to cdp but as as an ir um we are happy to have him on board and um