Baltic Sea Properties

Investor Presentation • Mar 15, 2022

Company presentation Sparebank 1 Markets Seminar

15th of March 2022

Contents

• 1. Introduction Baltic Sea Properties AS
• 1. Implications of the war in Ukraine
• 1. Tenant overview & market
• 1. Our portfolio, approach & pipeline
• 1. Key financials
• 1. Concluding remarks

Company presentation

15th of March 2022

About us

About us

• Baltic Sea Properties is among The Baltics' leading real estate investors and developers – owning a portfolio of logistics, industrial and retail assets.
• BSP is a public company on Euronext Growth Oslo Stock Exchange (OSE, EG: "BALT")
• BSP has a full service, professional management team with deep knowledge of the Baltic real estate market.
• BSP is expanding quickly by developing and acquiring new assets and forming new partnerships.

Quick facts:
◦ Total leasable area of approx.	101,000 sqm.
2022 budget income ◦	6.1 MEUR
Land bank for new development approx. ◦	212,000 sqm.

About us

Vision

To be the preferred real estate partner and leading investment company in the region.

Mission

To foster a great team, to provide high quality and sustainable solutions for our partners, thus creating superior long-term value and returns for our shareholders.

Values

• Commitment to our people and their professional development
• Focusing on innovation and value creation
• Respect for our social and physical environment
• Accountability and fairness with our stakeholders
• Reliability and integrity in all we do

Key characteristics of Baltic Sea Properties

Long-term contracts with strong tenants - excellent client relationships

Strong organic growth pipeline

2

5

6

7

4

3

Baltics is highly attractive for industrial & logistics operations

Focus on sustainability in our developments

Experienced management with proven track record

Offers attractive rental prices for industrial and logistics premises

Our development approach

Tenant focus

Our built to suite development projects are tailor-made to our clients' needs. We offer flexible and innovative solutions as part of our value proposition.

Attractive locations

We acquire land plots in strategic locations and secure sufficient land to allow their long-term development.

Quality buildings

We deliver buildings of high standard with modern technology that will serve our clients well for the long run.

Long-term

We believe in the value of long contracts with strong clients, so when we enter a new partnership, we do it for the long run.

Sustainability

We have high sustainability ambitions; which is why we focus on sustainability as an integral part of our development strategy, where we amongst other measures are offering the following initiatives together with our new developments.

• § Roof construction to be designed and built to allow installation of solar panels
• § Building to be certified with BREEAM in-use certification minimum "very good"
• § Other additional building upgrades

Our team

An experienced management team...

Lars Christian Berger Group CEO

• Previously asset manager for multiple real estate funds; managed more than 300k sqm of commercial property and development projects
• M.A., Business and Finance, Heriot-Watt

Milda Malinauskiene

• Project Manager, Vilnius
• Previously investment manager for the CRE portfolio of Canadian Investment Fund
• ACCA, Griffith College, Dublin

Sigitas Jautakis Managing Director, Vilnius

• Previously Head of Newsec Asset and Property Management in the Baltics
• M.Sc., Vilnius University

Gediminas Klimas

• Facilities Manager, Vilnius
• Previously at Newsec as Head of Technical Maintenance
• B.Eng., Vilnius Technological University

Rolandas Jonuska

Deputy Director, Klaipeda

• 18 years experience in BNTP property & facility management
• B.Sc. Mechanical Engineering, Klaipeda University

Julija Nikitraviciene Head of legal

• Previously Associate Partner in Ellex Valiunas with focus on corporate law in real estate
• LL.M., Vilnius University, Law

… backed by a highly qualified board of directors

James Andrew Clarke Chairman & CIO

MBA, B.Sc. Eng.

John Afseth Board member

Vast experience from multiple public & private companies across Europe

John Mosvold Board member

Long corporate and real estate experience in the Baltics

Bjørn Bjøro Board member

Baltinor Property investor in the Baltics

Development | Track record

Strong development operations

• 13,000 sqm logistics terminal was handed over to Rhenus Logistics in 2017
• Repeat business from Rhenus for a 5,000 sqm expansion delivered in January 2020
• Two additional terminals were successfully handed over to Oribalt and Delamode in 2020
• Repeat business from Delamode for a 5,000 sqm expansion Q2 2021
• Q2 2021 Developing two new distribution terminals for French owned DPD
• Oribalt expansion notice Q1 2022

Publicly recognised in the industry

■ "Strongest Brand Baltics – Developers Logistics" in 2020 and 2021 (European Real Estate 500)

■ "Logistics/industrial developer of the year" 2020 (Euromoney Real Estate Survey)

Solid client base

Examples of BSP´s institutional graded clients base a solid income backed portfolio

• § The Rhenus Group is one of the leading global logistics service providers with 33,500 employees across 820 sites.

• § The Rhenus Group offers solutions for a wide range of industries along the entire supply chain, including multimodal transport, warehousing, customs clearance and innovative value-added services.

• § Girteka Logistics is one of Europe's largest transport companies.

• § The company delivers more than 820 000 full truck loads annually and grew organically from 600 trucks in 2010 to more than 9 000 trucks and 9 700 trailers operating in Europe, Scandinavia and CIS as of 2021.

• § DPDgroup is an international parcel delivery service for sorter compatible parcels.

• § Owned by La Poste, the international delivery network operated by the French state-owned postal service.

• § DPDgroup's services are available in Europe, Asia, South Africa, India, Brazil and several other countries in the world, either directly or through partnerships.

• § Maxima is the largest grocery chain in the Baltics, operating more than 300,000 sqm retail area in Lithuania and

• § The group generated in excess of EUR 1.7 billion in revenue in 2020.
• § Maxima Grupė UAB belongs to one of the largest Lithuanian business groups VP Group.

Implications of the war in Ukraine

What we know now

• Humanitarian crisis More than 2.5 million refugees
• Will possibly affect society more in the Baltics than the Nordics, due to both geographical proximity and history
• Pressure on raw material inputs and logistic lines
• BSP has no Russian/Ukrainian assets or clients
• Pipeline projects Investment decisions postponed

What we do:

• Monitor, assess contingency planning and close dialogue with clients
• Support LT local humanitarian efforts towards Ukrainian refugees
• Maintain a diversified portfolio and remain financially balanced is key

What is next in the short term?

• High level of uncertainty high inflation pressure, possible stagflation
• Transit logistics for East-West/West-East will possibly be structurally changed for a longer period
• Disrupted logistics lines
• Increased energy costs
• Higher construction prices
• Disruption and unreliability of raw material and commodities delivery & transport flow with uncertain outcome

Our market

At the heart of Northern Europe's transport network

Lithuania is a highly attractive nation for industrial operations and business services

Attributes of Lithuania making it ideal for industrial operations & business services

Solid economy with proven resilience during covid-19	§ Average GDP growth of more than 3% p.a. during the 5 years, well above the Euro Area average. § Forecasted real GDP growth of 3.7% in 2022 and 3.5% in 2023. § Member of the OECD since 2001, the European Union (EU) and NATO since 2004 and adopted the Euro in 2015	GDP Growth
Cost efficient and supportive conditions make industrial & logistics operators thrive	§ Among the lowest wages in Europe with an average monthly salary of EUR 1,679/month compared to EUR 1,964/month for the Euro Area, making labour cost highly competitive § Tax relief and financial support schemes, including land and real estate tax relieves offered by individual municipalities § Strong growth in revenues for transport-related and warehousing services concluding about 13% of Lithuanian GDP.	Transport sector growth
Modern transport and energy transmission infrastructure	§ Best road system in the Baltic and ranked 1st in Central and Eastern Europe when it comes to quality of roads § Klaipeda is the northernmost ice-free deep-water port on the Eastern shore of the Baltic Sea, and offers the widest range of shipping routes § 100% of energy resources may be imported from independent suppliers – Existing gas, oil port terminals and Electricity links with Scandinavian countries;	Baltic Energy ring
Internationally renowned public logistics centres	§ Public logistics centers have been established at important infrastructure cross-roads, and provide companies with efficient one-stop-shop solutions § Companies gain competitive advantage through clustering around transportation infrastructure which creates a faster and more efficient logistics process § Other benefits include fast-tracked customs procedures	Container terminal	§ Located between three sizeable markets: Western/Southern Europe, Northern Europe and Eastern Europe (CIS) § NATO member since 2004 § A crossroad East-West and North-South, and one of EU's prime transport centers § Baltic Sea as one of the leading EU transport hubs with Klaipeda in Lithuania the Northernmost ice-free port on the Eastern shore of the Baltic Sea

Rail Baltica – new opportunities for Industrial and Logistics

Lithuania offers a resilient economy attractive for operations

■ Largest industrial investments in Lithuania in recent years High diversification of Lithuanian export markets (2021)

• VMG 196 M EUR
• Continental 185 M EUR;
• Intersurgical 80 M EUR
• Teva 73 M EUR
• Hollister 50 M EUR
• Hella 30 M EUR
• Teltonika 20 M EUR

Rapid growth of Business Service Centers sector Foreign direct investment growth

Source: Statistics Lithuania, Eurostat, Invest Lithuania

Attractive yield spread and high cash-on-cash return in the Baltics

Yield spreads for Norwegian prime logistics versus BSP

Attractive financing

• BSP is able to attract solid financing from local banks with funding cost linked to EURIBOR
• Current financing cost before IRS arrangements is 2.05% + 3-month EURIBOR (negative).
• Existing financing secures a net of financing yield spread of 5.45% and highly attractive cash-oncash returns
• Norwegian prime logistics have not been able to get close to the current yield levels at BSP over the past 10-year period showing an average yield gap of 1.4%
• Currently the yield gap for BSP compared to Norwegian prime yield logistics is 4.45%

Source: Newsec, Norges Bank, Company information

1) Avg bank margin is based on Union Bankundersøkelse where the Q4 2021 average margin for new real estate 5-year bank loan has been applied across the data series

Our portfolio

Distribution of budgeted rent income in 2022

Investment portfolio

Diversified portfolio of properties Strategic locations

Source: Company information

* 2022 budgeted income mEUR 6,1

* Annualised rental income including development project is approx. mEUR 6.5

Development portfolio

Under development & pipeline

• BSP manages the development of all projects with an in-house project management team
• Developing new projects for existing and new tenants is an important part of the strategy for BSP
• Current projects in pipeline including planned projects executed in 2022/2023:

#	Client	Location	GLA (sqm)	Yield-on-cost
1	Delamode	Vilnius	4 950	7,5-8,0%
2	DPD	LT	4 200	7,5-8,0%
3	Rhenus *	Vilnius	16 500	7,5-8,5%
4	Oribalt	Vilnius	2 800	7,5-8,5%
5	TBA	Klaipeda	2 900	7-8,0%
6	TBA	Vilnius	10 000	7-8,0%
7	TBA	LT	30 000	8,75-9,25%
8	TBA	Klaipeda	5 000	7-8,0%
9	TBA	Klaipeda	11 440	7,5-8,5%
Total			87 790

Liepų Parkas, Klaipeda visualisation

Future development

• Consists of four land plots situated by strategic road networks between Vilnius and Kaunas (A1); Vilnius and the Polish border (A4/A16); and outside Klaipeda City.
• Located near existing logistics buildings in the BSP portfolio, offering flexible expansion opportunities for existing tenants
• Project delivery within 12-18 months:

Company	Segment	Location	Land sqm	% sqm
BSP Holding	Land	A1, Vilnius	68 884	32,4 %
BSP Holding	Land	A1, Vilnius	66 058	31,1 %
BSP Holding	Land	A16/A4, Vilnius	41 433	19,5 %
BSP Holding	Land	Klaipeda	36 000	17,0 %
Total			212 375	100 %

Source: Company information

Rhenus expansion is postponed until further notice

Concluding remarks

• One of the largest and most recognised developers/owners of logistics and industrial space in the Baltics
• Significant development track record lays a strong fundament for future growth
• Attractive yield spread to Nordics which enables both high cash yield return and value growth potential
• Ukraine war is leaving uncertainty on timing of certain project development
• BSP assessing the impacts on clients however diversified portfolio with solid tenants protecting downside
• General new development projects impacted by construction price inflation short-term, unless clients' willingness on open book development
• BSP remains with a significant investment pipeline supporting company growth
• Growth ambitions to achieve economy of scale

Contacts

Lars Christian Berger

CEO – BSP Group

+47 930 94 319

LCB@balticsea.no

Espen Aas

Financial Controller - BSP Group

+47 93 065 823

ERA@balticsea.no

Vilnius office

+370 652 47287 Didžioji gatvė 10A-29, Vilnius

Klaipėda office

+370 46 300164 Pramonės gatvė 8A, Klaipėda

Oslo office

+47 930 94 319

Apotekergata 10, 0180 Oslo

BalticSea.no

Disclaimer

This presentation has been prepared by Baltic Sea Properties AS in good faith and to our best ability with the purpose to give information about the company's operations and status.

This document must not be understood as an offer or encouragement to invest in the company. The financial figures presented are unadited and may thus include discrepancies. Baltic Sea Properties AS further makes reservations that errors may have occurred in its calculations of key figures or in the development of the presentation which may contribute to an inaccurate impression of the company's status and/or operations.

The presentation also includes descriptions and comments which are based on subjective assumptions and considerations, and thus must not be understood as a guarantee of future events or future profits.

APPENDICES

Key Financials

Key figures

P&L 2020-2021

	Jan - Dec 2021	Jan - Dec 2020
	EUR	EUR
Rental income	6 277 811	5 768 464
Property expenses ex mng	-212 923	-242 376
NOI	6 064 888	5 526 088
Surplus ratio	97 %	96 %
Other income	199 439	141 999
Other adm cost	-1 923 569	-1 365 298
Net realised interest cost & finance expenses	-1 811 717	-1 872 180
Income from property managemnet (IFPM)	2 529 040	2 430 609
Tax for the period	- 177 731	- 524 943
Profit from property managemenet (PFPM)	2 351 310	1 905 666
IFPM yield (return on operations pre tax)	7,94 %	7,00 %
PFPM yield (return on operations after tax)	6,22 %	6,51 %

Comments

• Rental income growth with acquisition of Klaipeda Business Park covering several strategic divestments in 2021
• Triple net agreements ensure high surplus ratio
• Management services for external real estate adds additional income
• Increased adm cost due to acquisition of management company in relation to Klaipeda Business Park
• Portfolio refinance in 2021 ensure a solid improved financing conditions
• In addition to our development cost, management able to handle increased top line which showcases significant upside potential in yield on operations

Key figures

Balance and other key figures

	Jan - Dec 2021 EUR	Jan - Dec 2020 EUR
Assets
Investment property	75 440 646	64 700 000
Other assets ex. Cash	492 538	1 286 211
Cash	5 284 979	3 714 106
Sum assets	81 218 163	69 700 317
Liabilities
Debt to credit insitutions	39 168 263	30 395 233
Deferred tax	2 147 496	1 032 340
Other short term liabilities	3 362 108	6 883 335
Other long term liabilities	397 450	771 892
Sum liabilities	45 075 318	39 082 800
Net asset value (NAV)	36 142 845	30 617 517
NAV return	18,0 %	13,0 %
NAV return inc. dividend	21,3 %	15,5 %
LTV	53,9%	54,7%
Valuation yield on budgeted NOI	7,00%	8,13%

Comments

• Increased portfolio value after transaction of KVP in 2021 despite several divestments
• Significant re-leveraging released cash for new asset investments & developments
• Solid equity return over time driven by development profit, CPI adjustments, yield compression & running operations
• Cash buffer inc. low LTV implies organic growth capabilities

Investment portfolio

	Contracted rent roll 2022
Company	Segment	Tenant	Budget rent (EUR)	Property NOI*	% income	GLA (sqm)	% GLA	Maturity
BSPLP	Logistics	Girteka	964 450	878 636	16,5%	17149	16,9%	2026
BSPLPII	Logistics	Vinge	1098948	1027187	17.9%	21929	21.6%	2038
BSPLPIV	Logistics	Rhenus	1092511	1027234	18,5%	18 2 2 6	18.0%	2035
BSPLPV	Logistics	Delamode	543807	488967	9,2%	8329	8.2%	2035
BSPLPVI	Logistics	Oribalt	441965	403 362	7.6%	6807	6.7%	2035
KVP	Industrial	Multiple	1440157	1284442	24,3%	24 500	24,2%	2022-2027
BSP RPI	Retail	Multiple	76519	58 557	1,3%	1337	1,3%	2022
BSP RPV	Retail	Maxima	271859	243 581	4,7%	3021	3,0%	2034
Total **			5930215	5411967	100%	101 298	100%

	Projects under development
Company	Segment	Tenant	Contracted rent annulised (EUR)	Budgeted rent in 2022	GLA (sqm)	Handover (est.)
BSPLPV	Logistics	Delamode	316 550	105 985	4780	Q3 2022
BSPLPVII	Logistics	DPD - Telsiai	113724	28 412	1458	Q3 2022
BSP LP VIII	Logistics	DPD - Siauliai	180180	45 0 26	2 3 1 0	Q3 2022
Total			610456		8548

* Annualised rental income including development project is approx. mEUR 6.5

Key figures group

Q4 report 2021 (unaudited)

Per share (NOK)	31/12/2021	31/12/2020
Net Asset Value (NAV)*	54.10	48.1
NAV in EUR	5.42	4.60
Accumulated pay-outs	23.50	22.00
Last transaction price per date	50.50	50.00
Number of shares issued	6688232	668823

Property portfolio (MNOK)	31/12/2021	31/12/2020
Market value portfolio	753.6	677.4
Value of equity based on NAV	361.0	320.9
Gross rent income per date	63.8	61.9
NOI yield (investment projects)	7.60%	8.02%
IFPM yield	7.00 %	8.13%
Shortest contract length (years)	$2.6$ yrs	0 yrs
Longest contract length (years)	17.0 yrs	17.8 yrs
WAULT (years)	10.1 yrs	12.1 yrs
IBD (incl. mezzanine loan)	406	371
LTV (incl. mezzanine loan)	53.90%	54.69%

Balance sheet* (MNOK)	31/12/2021	31/12/2020
Investment Properties	754	677
Other assets	58	52
- of which cash	53	39
Total Assets	812	730
Debt	429	398
Deferrex tax liability	21	11
Net Asset Value (Equity)	361	321

Profit & loss (MNOK)	31/12/2021	31/12/2020
Operating income	68.4	63.4
Operating expenses excl. depreciations and impairments	21.7	17.2
EBITDA (Operating profit/loss excl. depreciations and impairments)	46.7	46.2
Income From Property Management (IFPM)	25.7	26.0
EBIT	35.8	43.3
Profit/Loss before tax	30.2	20.4

Earnings & Net Asset Value

Q4 report 2021 (unaudited)

	Jan - Dec		Jan - Dec 2020
EURNOK rate - Balance date EURNOK rate - YTD average	9,9888 10.1633			10,4703 10,7258
	NOK	EUR	NOK	EUR
P&L
Rental income	63 803 275	6 277 811	61 871 388	5768464
		$-212923$
Property expenses ex. mng. NOI	$-2164003$ 61 639 272	6064888	$-2599674$ 59 271 714	$-242376$ 5526088
Surplus ratio		97%		96%
Other operating income	2026958	199 439	1523050	141999
Administration cost	$-11069543$	$-1089168$	$-8171975$	$-761899$
Other operating cost	$-8480267$	$-834401$	$-6471941$	$-603399$
Net realised interest cost & finance expenses	$-18413022$	$-1811717$	$-20000624$	$-1872180$
Income from property management (IFPM)	25 703 397	2529040	26 070 225	2430609
Tax for the period	$-1806329$	$-177731$	$-5630431$	$-524943$
Profit from property managemenet (PFPM)	23 897 068	2 351 310	20 439 794	1905 666
Realised changes in value of investment properties	6743675	663 532	13 477 377	1256538
Unrealised changes in value of investment properties	7486698	736 640	9999178	932 255
Realised changes in value of investments (JV, equity investm., etc.)	8 182 408	805 094	$\Omega$	$\Omega$
Changes in values of derivatives	3778935	371822	$-2325828$	$-216844$
Other financial income	293	29	842 041	78 506
Currency	823726	81049	$-1258328$	$-117318$
Depreciation	$-22551238$	$-2218889$	$-26374178$	$-2458947$
Profit before tax	30 167 895	2968317	20 430 486	1904798
Tax for the period	$-1806329$	$-177731$	$-5630431$	$-524943$
Profit	28 361 566	2790586	14 800 055	1379856
BALANCE
Assets
Investment properties (market value)	753 561 528	75 440 646	677 428 410	64700000
Other financial assets (market value)			8 182 403	781 487
Other fixed assets	1098006	109 924	3 407 580	325 452
Total fixed assets	754 659 535	75 550 570	689 018 393	65 806 939
Current receiveable & assets	3821853	382 614	1877028	179 272
Bank deposits	52 790 600	5 284 979	38 887 807	3714106
Total current assets	56 612 453	5 667 593	40 764 835	3893378
Total assets	811 271 988	81 218 163	729 783 228	69 700 317
Liabilities
Deferred tax liabilites*	21 450 911	2147496	10 808 910	1032340
Long-term liabilities	374 308 247	37 472 794	151 346 621	14 454 851
Short-term liabilities	54 489 177	5455027	247 053 111	23 595 610
Total liabilites	450 248 335	45 075 318	409 208 642	39 082 800
Net Asset Value (NAV)	361023652	36 142 845	320 574 586	30 617 517

Portfolio

Rhenus | Logistics

The property was finalised in June 2017 and further expanded in 2020. It is currently leased by Rhenus Svoris, a subsidiary of Rhenus Logistics.

Rhenus Logistics is one of Europe's biggest transportation groups, and Rhenus Svoris covers the group's operations in the Baltics and Belarus.

Tenant SPV

Location Size Highway A4, Vilnius 18,226 m2

Maturity lease contract 2035

Rhenus Svoris BSP Logistic Property 4

Girteka | Logistics

The property is leased by Girteka Logistics, one of Europe's leading transportation companies, strategically located by Vilnius International Airport.

• 42,907 m2 land area
• 11,458 m2 storage
• 2,014 m2 frozen storage
• 3,348 m2 cold storage
• 1,134 m2 office.

Tenant SPV

Location Size Highway A3, Vilnius 17,954 m2

Maturity lease contract 2026

Girteka Logistics BSP Logistic Property

Vinges Terminalas | Logistics

The property is strategically located along the highway between Vilnius og Minsk in Belarus.

Vinges Terminalas is a local logistics company operating within export, transit, order processing and goods transport. The company has a wide spectre of clients in Europe and CIS.

Tenant SPV

Location Size Highway A3, Vilnius 21,929 m2

Maturity lease contract 2038

Vinges Terminalas BSP Logistic Property 2

Delamode | Logistics

The property was finalized in August 2020 and is currently leased by Delamode Baltics, a dynamic supplier of freight forwarding-solutions to the global market.

In July 2021, BSP signed an agreement with Delamode to expand the facility with approximately 4,780 m2 (expected handover during the summer of 2022).

Location Size Highway A1, Vilnius 8,329 m2

Maturity lease contract 2033

Delamode BSP Logistic Property 5

Oribalt | Logistics

The property was finalized in August 2020 and is currently leased by Oribalt.

Oribalt offers a wide spectre of logistics solutions for pharmaceutical producers , including storage, distribution, transportation and direct delivery.

Oribalt has during Q1 2022 requested an expansion of approx. 2.800 m2 with delivery estimated to be during Q3 2023.

Location Size Highway A1, Vilnius 6,807 m2

Maturity lease contract 2035

Oribalt BSP Logistic Property 6

Klaipėda Business Park | Industrial

Klaipėda Business Park (KVP) offers its tenants industrial, commercial and office spaces within the Free Economic Zone of Klaipeda.

The property was acquired by BSP in April 2021.

Retail portfolio

Location SPV

Maturity lease contract Size 2022-2034 4,358 m2

Lithuania BSP Retail Properties 1 BSP Retail Properties 5

DPD | Development

Baltic Sea Properties has signed two lease agreements with the French-owned parcel delivery group DPD (owned by Le Groupe La Poste) for the development of two new distribution centers in Siauliai and Telsiai, Lithuania.

The size of the terminals combined is approx. 4,000 m2 and will be tailored for distribution and logistics of parcel deliveries, with scheduled delivery by second quarter of 2022.

Land Bank | Development

Baltic Sea Properties holds three strategically located land plots along strategic road networks near Vilnius and Klaipeda.

Liepų Parkas

Size 3.6 hectare Location Liepų Street, Klaipėda

Size 6.9 hectare Location Highway A1, Vilnius