Page 24 - investor presentation

Our Investment

ESR Logistics 6 Logistics Infra

Deal Making (’16 ~ ’18) Exit (’19 ~ )

Identified early growth potential in China’s logistics business through local investment network in ‘16 Exited partially to recoup investment cost
for re-investment in Sep ‘19 ($410M)
• Rapid growth of China’s e-commerce such as Alibaba and JD.com was expected to increase the demand for quick delivery of small
quantity batch, requiring logistics centers in strategic locations in tier 1 & 2 cities as core infra business • Sold 4.6% out of 11%
• Leveraged local investment network to meet with 80 industry experts in China and visit major logistics centers in Korea/China/Japan
to cross-check the operational qualities to validate the investment opportunities for 8 months 30 Partial Exit
@ HK$22.5 ESR
Target Oct - Dec ’12 Jan ’17 Feb - May ’17
Sector Meeting with industry experts in China Logistics centers site visits China logistics entry strategy development 25

• Alibaba ex-logistics head and other • China’s top 4 logistics centers and • Visited 10 logistics centers in China,
executives in logistics business (12) mgmt. meeting Japan and Korea to check the 20
• 4 e-commerce star-ups (Xuxian, operations, including Amazon (China)
Urwork, etc) and financial advisors (19) and Namamugi (Japan)
• Industry experts (Wonhung, Fuyuan, • Meeting with key mgmt. and executives
etc) (12) to identify potential investment targets 15 Hang Seng
Index
Identified ESR Logistics among China’s top 3 companies (combined market share of 67%) based on :
10
• Growth prospects, potential for global expansion, value up and synergy creation opportunities Nov-19 May-20 Nov-20 May-21 Nov-21
• ESR was also undervalued as compared to other major companies and operating unique asset-light business model using REITs
and Fund Enterprise Value (U$bn)
Landbank Tier 1 City e-commerce
Top 3 Companies Description Remarks
Deal (Sqm) location Customer (%)
Sourcing Singapore-listed Up for sale 3.4 x 10.4 10.5
GLP 26.6m 29% 26%
(market cap $9.6bn) (indicative price $15bn)
HK IPO
ESR Logistics China, Private 2.6m 67% 77% Pre-IPO in process
Australia-listed 6.6
Goodman 2.4m 28% 32% Majority-owned by CIC
(market cap $10.4bn)
4.1
3.3
Deal Based on in-depth study and review during the deal sourcing process, made quick investment decision by
Review directly negotiating with majority shareholder
& • Convinced Warburg Pincus PE, majority shareholder, with SK’s value-add and potential synergy creation opportunities
Execution (including SK-owned real estate, datacenter development for SK Telecom’s high-speed internet services)
• Acquired 10% stake for $330M to become the second largest shareholder in Aug ‘17, and added 1% in Aug ‘18 ’17A ’18A ’19A ’20A ’21A

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