Hiag Immobilien Holding Ag · SIX:HIAG
Hiag Immobilien — FY2021 Earnings Presentation
64 slides from Hiag Immobilien's earnings presentation, March 2022
Slide 1: Investors’ presentation FY 2021
Investors’ presentation FY 2021 HIAG ImmobilienHoldingAG
Slide 2: Agenda
Agenda 1 Year 2021 at a glance Marco Feusi 2 Financials 2021 Rico Mueller 3 Portfolio overview Marco Feusi 4 Development portfolio Marco Feusi 5 Transactions Marco Feusi 6 Sustainability Rico Mueller 7 Market assessment by HIAG Marco Feusi 8 Outlook 2022 Marco Feusi 9 Q&A Appendix
Slide 3: Year 2021 «at a glance»
Year2021 «at a glance»
Slide 4: Key Highlights 2021
Key Highlights 2021 Overachieving performance in all business areas
Slide 5: Financials 2021
Financials 2021
Slide 6: Income Statement 2021 (1/2)
Income Statement 2021 (1/2) Best FY result since IPO with net income of CHFm 89.3 (+ 61.8%) Income Statement 2021 Income - Comments (2021 vs. 2020) → in CHFm 2021 2020 ∆ CHFm ∆% Property income 63.1 59.7 +3.4 +5.7% Revaluation of properties 60.5 27.0 +33.5 +124.1% Income from Properties for sale - 1
Slide 7: Income Statement 2021 (2/2)
Income Statement 2021 (2/2) Reduced operating cost base to support strong financial performance Income Statement 2021 Expenses - Comments (2021 vs. 2020) → in CHFm 2021 2020 ∆ CHFm ∆% Property income 63.1 59.7 +3.4 +5.7% → Revaluation of properties 60.5 27.0 +33.5 +124.1% Income from Properties for
Slide 8: Return on Equity / Earnings per Share / NAV per share
Return on Equity / Earnings per Share / NAV per share Positive performance leads to improved RoE, EPS and NAV per share Return on Equity (RoE) / Earnings per Share (EPS) NAV per Share +6.7 -1,5 1,9 106,1 1,9 3,6 0,8 99,4 Transaction Valuation Valuation gains Positive P&L Dilution NAV per gains from
Slide 9: Annualised property income / Vacancy rate
Annualised property income / Vacancy rate Higher ann. property income (+5.1%) and lower vacancy rate (-2.5%p) 31 December 2021 vs. 31 December 2020 Comments in CHFm → +5.1% -3.2 0.5 4.2 0.7 -1.7 -1.0 2.5 2020 New / Project Interim use Cancel- Acquisitions Sales 2021 Acquisitions Like-for- extended c
Slide 10: Portfolio value
Portfolio value Well-diversified Portfolio value increased by 8.9% up to CHFm 1’784 Portfolio value in CHFm Comments in CHFm →
Slide 11: Revaluation gains
Revaluation gains Increased due to management performance and lower discount rate Revaluation gains* Revalution net in CHFm * → Logistics Industrial Res. Mixed Residential Retail Other Office Total
Slide 12: Tenants: WAULT / Lease expiry profile
Tenants: WAULT / Lease expiry profile Comfortable WAULT increased by 0.3 yrs (total) and by 4.2 yrs (top 15) WAULT / Lease expiry Comments 40.8% 40 35 30 26.4% 6.8% 7.6% 5 1.6% 0 2022 2023 2024 2025 2026 2027 2028 - 2044 perpetual 8.2 10.2 2018 2019 2020 2021 2019 2020 2021
Slide 13: Tenants - Top 15
Tenants -Top 15 Broadly based, well-diversified, credit worthy mix of “Top 15 tenants” Top 15 tenants (Group) based on annualised property income as of 1 January 2022 4.7 % Industry 2023-36 BBB (stable) 2.8 % Retail . 2026-29 3.9 % Logistics 2028 AA- (bra) 2.8 % Logistics 2031 3.8 % IT 2032 BBB+ (st
Slide 14: Equity Ratio / LTV Ratio
Equity Ratio / LTV Ratio Capital increase with targeted positive impact on LTV and Equity Ratio Equity Ratio / LTV Ratio (gross and net) Remarks → → 60.0% → +7.0%p 54.4% 55.0% 52.0% 49.1% 50.0% − 45.0% → 45.0% 41.3% 40.0% − − 35.0% 2017 2018 2019 2020 2021 − − − 52.9% -5.4%p − 49.9% − 46.9% 51.4% −
Slide 15: Financial liabilities
Financial liabilities Solid debt financing situation as a foundation for future growth Financial liabilities Total Financial liabilities in CHFm Total Financial liabilities development CHFm -2.4% Bonds 819 813 Mortgages 793 678 515 160 640 640 -184 700 -100 490 104 813 365 793 188 179 173 150 Repaym
Slide 16: Portfolio overview
Portfolio overview HIAG
Slide 17: Portfolio overview
Portfolio overview Well-diversified real estate portfolio Actual annualized income by type of use Actual annualized income by sector Portfolio value by canton 1 Manufacturing industry / 1 Industry / Light industrial Production 8-11; 5% 11-17; 8% 2 Transport / Logistic 1 Zurich 2 Storage 7; 4% 10; 3%
Slide 18: Vacancies – “trouble makers”
Vacancies –“trouble makers” Potential for further vacancy reductions 1 January 2022 / 1 January 2021 Part of total Contribution Vacancy Vacancy Vacancy Vacancy vacancy portfolio 2021 2021 2020 2020 Action taken / Properties Main use Portfolio 2021 2021 in %p in CHFm in % ∆ in CHFm in % vacancy inclu
Slide 19: Development portfolio
Development portfolio
Slide 20: Project pipeline
Project pipeline Significant income and value growth potential Project pipeline Remarks 400 350 300 250 200 150 100 50 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Expected investment volume per project in CHFm
Slide 21: Substantial projects before completion / construction
Substantial projects before completion / construction Development gains about to be realised
Slide 22: Update mid-term projects
Update mid-term projects Building permissions in preparation or progress
Slide 23: Update other projects
Update other projects Major milestones achieved or foreseeable
Slide 24: Update larger sites
Update larger sites Major milestones achieved or foreseeable
Slide 25: Transactions
Transactions HIAG
Slide 26: Acquisitions 2021
Acquisitions 2021 Purchase price total CHFm 92.7, average revaluation gain >10% Asset Deal “BR Bauhandel AG”: Sale-and-Lease-back-transaction Share Deal “K-Buchs S.à.r.l.”
Slide 27: Disposals 2021 – (11) non-strategic properties
Disposals 2021 –(11) non-strategic properties @ Fair Value of CHFm 62.4 (Profit: > 25% gross, > 15%, net) H1 2021 Address Property Type Portfolio Closing-Date Fair Value Annual rent Gross- CHFm CHFm p.a. Profit (YE 2020) Wetzikon, Weststrasse Single family house Yielding 01.06.2021 0.67 vacant Aatha
Slide 28: Sustainability
Sustainability
Slide 29: Sustainability: Review 2021 – Work Completed
Sustainability Review 2021 – Work Completed Sustainability Strategy GRI Core Report Sustainability Goals Codes of Conducts Key responsibilities defined published set optimised defined In 2021, strong focus on a proactive management of sustainability activities, establishing a formalized
Slide 30: Sustainability Report 2021
Sustainability Report 2021 Snapshot – KPIs → →
Slide 31: Sustainability: Outlook – Sustainability Goals
Sustainability Outlook – Sustainability Goals Establish «Sustainable Elaborate Reduction Pathway Conduct GRESB Assessment 2022 Strengthen HIAG Solar Construction» Guideline Continuous improvement of processes and reporting while striving for an above-average ESG rating compared to the industry.
Slide 32: HIAG Solar – Update
HIAG Solar –Update Execution faster than business plan - very good cooperation Joint Venture with Aventron Update Powerplants
Slide 33: Market assessment by HIAG
Market assessment by HIAG
Slide 34: Market assessment by HIAG
Market assessment by HIAG High value stability of the Swiss real estate market Economic environment Real estate segments Historical Impact Rental Housing Retail 2012-2021 real estate KPI (p.a.) 2020 2021 FC 2022 FC 2023 market GDP (real) +1.6% -2.7% +3.6% +2.8% +1.9% Export +2.6% -5.8% 12.4% +5.9% +
Slide 35: Outlook 2022
Outlook 2022
Slide 36: Outlook 2022
Outlook 2022 Positive outlook due to strong business performance expected
Slide 37: HIAG – Key strength
HIAG –Key strength Guaranteed long-term cash flows as well as continuous value growth
Slide 38: Q&A
Q&A
Slide 39: Thank you! Contact
Büro Basel Büro Zürich Thank you ! Büro Genf contact
Slide 40: Save the date
Company Calendar 14 March 2022 Publication annual report 2021 28 April 2022 2021 General Meeting 26 August 2022 Publication half year report 2022 27 September 2022 HIAG Capital Market Day save 27 April 2023 2022 General Meeting the investor.relations@hiag.com www.hiag.com date
Slide 41: Appendix
Appendix
Slide 42: Year 2021 “at a glance” - Details
Year 2021 “at a glance” -Details
Slide 43: Year 2021 - Highlights (1/2)
Year 2021 -Highlights (1/2) Overachieving performance in all business areas
Slide 44: Year 2021 - Highlights (2/2)
Year 2021 -Highlights (2/2) Overachieving performance in all business segments →
Slide 45: Governance
Governance HIAG
Slide 46: Corporate Governance
Corporate Governance Experienced board and management teams Board of Directors Executive Board Dr. Felix Grisard, President Balz Halter, Vice President Marco Feusi, CEO Salome Grisard Varnholt Dr. Christian Wiesendanger Rico Müller, CFO Dr. Jvo Grundler Anja Meyer Dr. Jvo Grundler, General Counsel
Slide 47: Project overview
Project overview
Slide 48: Projects - finished / sold / under / before construction
Projects -finished / sold / under / before construction Usable Total Expected Est. Pre-let Lease Project status 2022 2023 2024 2025 2026 area to expected remaining Rental Ratio Duration be investmen investment Value in Comme in develope t volume in in CHFm rcial years d CHFm CHFm , (excl. in m2 2022
Slide 49: Projects – mid-term
Projects –mid-term Usable Total Expected Est. Pre-let Lease Project status 2022 2023 2024 2025 2026 area to expected remaining Rental Ratio Duration be investmen investment Value in Comme in develope t volume in in CHFm rcial years d CHFm CHFm , (excl. in m2 2022 ff. Ground lease) Wetzikon, Floos Co
Slide 50: Projects - long-term
Projects -long-term Effective Total (expected) Est. Rental Est. Project status 2031 2026 2027 2028 2029 2030 2032 2033 2034 ff. area to be investment Value in sales developed volume in CHFm revenue in m2 CHFm pro- motion Cham, Cham Nord, 2st stage Residential, New Building 12,800 72 4.1 Adj. GP expe
Slide 51: Additional financials
Additional financials
Slide 52: Strong profit contribution by all business segments
Strong profit contribution by all business segments Net income Return on Equity Earnings Collected Vacancy rate per share property income WAULT Portfolio value Revaluation gains NAV / share (incl. Equity ratio LTV (gross/net) deferred tax)
Slide 53: Income Statement 2021 by business segment
Income Statement 2021 by business segment Refined segmentation according to HIAG business model Income Statement by business segment 2021 Intersegment in CHFm Income Statement Yielding Development Transactions Other eliminations Property income 63.1 52.7 10.7 - - -0.3 Revaluation of properties 60.5
Slide 54: Income Statement 2020 by business segment
Income Statement 2020 by business segment PY segmentation restated according to reporting year changes Income Statement by business segment 2020 Intersegment in CHFm Income Statement Yielding Development Transactions Other eliminations Property income 59.7 49.1 10.9 - - -0.3 Revaluation of propertie
Slide 55: Balance sheet
Balance sheet Increased total assets by 12.5% to CHFm 1’904 31 December 2021 vs. 31 December 2020 in CHFm 2021 2020 ∆ CHFm ∆% Cash and cash equivalents 87.3 19.7 +67.6 +343.3% Properties for sale 32.1 29.4 +2.7 +9.1% Other current assets 16.6 17.7 -1.2 -6.6% Total current assets 136.0 66.9 +66.2 +10
Slide 56: Alternative Performance Measures
Alternative Performance Measures Real estate comparables based on Swiss GAAP FER figures Company specific (adjusted) KPIs in CHFm 2021 2020 ∆ in CHFm ∆ in % in CHFm 2021 2020 ∆ in CHFm ∆ in % Equity (NAV) attributable to shareholders 989.0 761.1 +227.9 +29.9% Earnings per income statement 89.3 55.2
Slide 57: Yielding portfolio - Overview
Yielding portfolio -Overview Top (5) Yielding Sites - 43.8% of total yielding portfolio market value Dietikon Meyrin Kleindöttingen Goldach Windisch
Slide 58: Cash Flow
Cash Flow Positive business performance with positive impact on cash flow 2021 Cash Flow Cash flow Statement ∆ FY 21 vs FY 22 ∆ FY 21 vs FY 22 in CHFm FY 21 FY 20 FY 19 FY 18 FY 17 in CHFm in % Cash flow from operating activities +20.1 +16.4 +5.1 +19.8 +19.1 +3.7 +22.6% Cash flow from investment act
Slide 59: Discount rate
Discount rate Increased discount rate with positive impact on revaluation gains Discount rate development 2017 - 2021 in % Weighted average real discount rate in % 2021 2020 2019 2018 2017 Weighted average real discount rate yielding portfolio* 3.52 3.87 3.93 4.08 4.31 Weighted average real discount
Slide 60: Share price performance
Share price performance Higher Market capitalisation CHFm +38 to CHFm 961 Development of share price performance 2021 Share price in CHF 2021 2020 High 118.00 117.00 Low 91.40 73.80 End of period 95.00 109.50 Market capitalisation in CHFm High 1’194.11 986.66 Low 924.93 622.36 End of period 961.36 9
Slide 61: Shareholders structure
Shareholders structure Increased free float from 36.6 % to 45.6% after Capital increase 31 December 2021 2021 2020 1 Anchor shareholders* 54.4% 63.4% 2 Free Float 45.6% 36.6% A SFAG Holding AG 43.8% 48.1% B HIAG Beteiligung Holding AG 4.1% 4.7% C Grisgros AG 3.8% 5.5% D Senft AG 2.8% 3.3% E Dr. Feli
Slide 62: Company information
Company information
Slide 63: Integrated Business Model / Sites and offices
Integrated Business Model / Sites and offices At a glance Integrated business model (incl. 3 segments) HIAG sites and offices
Slide 64: Disclaimer
Disclaimer This presentation does not constitute or form part of any advertising, offer, recommendation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of this presentation or their distribution form the basis of,
HIAG Immobilien Holding — FY2021 Earnings Presentation on 6ix