2018 Guide to Effective Proxies

2.17.3 Business strategy | 311 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES COMPENSATION DISCUSSION AND ANALYSIS Prologis Park Osaka 5, Osaka, Japan A Unique Business Model Thinking Ahead Our business model centers around our customers. They want well-located, high quality logistics space in the world’s busiest consumption markets. This space is scarce. It takes time, resources and forward thinking to build a premier portfolio of the right assets in the right places. Predicting this demand more than three decades ago, we positioned our business accordingly and can now leverage our advantage. Our customers are multinational companies with logistics needs that span four continents. Generally all of our top 25 customers operate globally and 84% of the top 25 lease from us on multiple continents. The combination of our worldwide reach, significant development platform and size and scope of our strategic capital business puts us in a unique category among REITs. Our strategic capital partners provide capital that enables us to grow and own and manage properties across the globe in locations vital to our customers. Through our development business, we innovate to satisfy customer demand, deepen our market presence and refresh our portfolio quality. We build modern, sustainable and resilient facilities at the nucleus of the global supply chain. We utilize our scale to our advantage. We are working to give our customers the benefits our scale can provide—global customer service, procurement cost-savings and data intelligence to name a few. Thinking ahead of what is next, we are positioned to capture value beyond real estate that our global scale can bring. I 50 PROLOGIS