KMC Properties ASA

Investor Presentation • Aug 23, 2022

KMC Properties ASA

Company presentation

23 August 2022

The preferred partner for logistics and industrial properties

Kristoffer Holmen CFO

Disclaimer

This presentation, prepared by KMC Properties ASA (the "Company"), may contain statements about future events and expectations that are forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements.

The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This presentation contains alternative performance measures, ornon-IFRS financial measures. Definitions and calculations are presented in our annual report and quarterly report.

KMC Properties at a glance

KMC Properties at a glance

Company description

• Portfolio of 46 properties focused on industrial and logistics with long-term leases, solid tenants and strategic locations critical for tenant operations
• Ambitious strategy to grow the portfolio, both through capex initiatives and greenfield opportunities as well as through attractive M&A opportunities
• Geographical footprint in Northern Europe with headquarter in Trondheim
• Listed on Oslo Børs main list since 2020

Property portfolio footprint

Solid customer base of market leading companies with long track records and exposure to an attractive industry

Company overview

Key customers / brands

KMC Properties at a glance

• Real estate company focused on owning high yielding industrial and logistics properties
• Portfolio of 46 assets, primarily in the Nordics, constitution approx. ~377,000 sqm on 30 June 2022
• Long-term lease agreements with solid counterparties
• 95% of rental income is 100% CPI adjusted, 1% of rental income is 80% CPI adjusted, and 4% of rental income has no CPI adjustment

• Low operational expenses due to mainly triple net bare-house lease contracts

• Completed and committed investments in current portfolio (capex) of NOK ~48 million in 2022, at yieldon-cost of ~7.5%

• Completed and committed investments in greenfield projects of NOK ~180 million in 2022, at yield on cost of ~7.1%
• Completed acquisitions of NOK ~190 million in H1 2022 with gross yield of ~7.6%
• Contemplated acquisitions of NOK ~1,365 million in H2 2022, with weighted average gross yield of ~6.6%, of which the BEWI transaction amounts to NOK 970 million in 2022²

We are KMC Properties … we deliver accretive growth ² …and have strong growth ambitions ²

• Strategic target of NOK 8bn by year end 2024, one year ahead of previous growth plan
• Committed and completed investments in 2022 at NOK ~1,783 million year to date
• For 2023 and 2024, committed pipeline amount to NOK ~1,410 million and NOK ~360 million respectively
• Continued focus on assets we know well: foodstuff facilities, light industry – infrastructure for our lessees

1) Does not include the company's office building in Moscow which is held for sale (valued at NOK 135.8 million as of 30 June 2022)

2) Current company estimates, based on current transaction pipeline and market visibility and outlook. No assurances can however be given that any such acquisitions will be concluded, or at what terms. Further information will be provided in due course, as and when relevant or appropriate.

New platform set for accelerated value creation

Current financing

Current financing mix heavily tilted towards bond financing

Capitalization table Sources of funds

Source of financing	NOKm	Weighted avg current interest1	Weighted avg interest margin	Construction loan Bank loan 1% 21%
Bond loan	1,850	5.93%	4.25%	NOK 2,374m
Bank loan	495	4.17%	2.49%	78% Bond loan
Construction loan	29	4.68%	3.00%	Maturity profile NOKm 1,900 1,850
Revolving credit facility	0	3.93%	2.25%	495 400 300
Total	2,374	5.55%	3.87%	200 100 29 0 0-1yrs 1-2yrs 6-7yrs

11 Source: Company Information Q2 2022 Note: 1) 3 months Nibor is set to 1.68%

Financing pipeline

Source: Company Information

13

Financing going forward

Bond market significantly more volatile – hence bank financing represent desired predictability going forward

KMC01 trading vs bank margins Future considerations: