Patrizia Se · XETR:PAT
Patrizia — Investor Presentation (March 2024)
59 slides from Patrizia's investor presentation, Mar 21, 2024
Slide 1: Company Presentation March 2024
Company Presentation March 2024 1
Slide 2: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 2
Slide 3: PATRIZIA is a leading partner for global real assets
At a glance PATRIZIA is a leading partner for global real assets Platform Funds Financials Total service fee income (EUR): 40 57bn 312m years of real asset experience Assets under Management (EUR) FY 2023 Top 2 EBITDA (EUR): fully independent 10y 54m investment manager for real estate in Europe1 fun
Slide 4: PATRIZIA evolved from a German real estate to a global real asset investment manager
At a glance PATRIZIA evolved from a German real estate to a global real asset investment manager 57.3bn 2023 PATRIZIA | A leading manager for global real assets adopts SE structure for sustainable future growth AUM 2022 Whitehelm Capital, Advantage | Acquisition of infrastructure and multi manager 4
Slide 5: Recent developments boost transformation to global real asset investment manager
At a glance Recent developments boost transformation to global real asset investment manager Corporate | PATRIZIA acquires the Copenhagen multi-manager Advantage Investment Partners to strengthen its real asset product offering Product | Continued successful PATRIZIA closes debut Product | London ex
Slide 6: Global reach combined with local expertise and local client relationships
At a glance Global reach combined with local expertise and local client relationships 28 PATRIZIA offices globally > 500 to service clients & manage real assets locally institutional clients > 40 boutique operating partners > 7,000 private clients worldwide > 30 different nationalities working at >
Slide 7: One-stop shop for a broad variety of clients’ investment needs
At a glance One-stop shop for a broad variety of clients’ investment needs Market-leading Funds Bespoke Single Asset/Portfolio Global Investment Multi Strategy in Real Assets Account Solutions Deal Opportunities Solutions Solutions • Open-/closed-ended • Individual, nimble strategies • Sourcing, und
Slide 8: PATRIZIA offers full services across the value chain
At a glance PATRIZIA offers full services across the value chain Modular services offered to global clients Investment Investment Strategy Fund Management Transactions Asset Development Solutions & Research (i.a. Portfolio management, (Sourcing, Acq., Sales) Management Management reporting) Capital
Slide 9: Real estate and infrastructure investments offer various opportunities for global clients
At a glance Real estate and infrastructure investments offer various opportunities for global clients Transactions Overview Selected investments Mercury (infrastructure, acquisition) Atlantia (infrastructure debt, acq.) Rigsted Outlet (real estate, acq.) Ultra-fast EV charging infrastructure investm
Slide 10: PATRIZIA SE is managed by an international and diverse leadership team
At a glance PATRIZIA SE is managed by an international and diverse leadership team BOARD OF DIRECTORS + International, diverse, experienced & tech-savvy Board of Directors Uwe H. Wolfgang Jonathan Axel Marie Saba Philippe Reuter (Chair) Egger Feuer Hefer Lalleman Nazar Vimard Audit Committee Nominat
Slide 11: PATRIZIA ranks as 2nd largest independent real estate investment manager in Europe
At a glance PATRIZIA ranks as 2nd largest independent real estate investment manager in Europe Top 10 Managers based on European real assets (EUR m) Swiss Life Asset Managers 1 insurance group subsidiary AXA IM Alts 2 insurance group subsidiary Blackstone Group 3 fully independent alternatives manag
Slide 12: Strategy | Becoming a smart Real Asset Player
At a glance Strategy | Becoming a smart Real Asset Player sustainable: PATRIZIA is committed to positively impacting and shaping sustainable communities through its investment operations by capturing megatrends in a world in transition. market leading: PATRIZIA’s goal is to meet the evolving needs o
Slide 13: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 13
Slide 14: Our Equity Story lines out our uniqueness as a real asset expert
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market We are active in alternatives, a stable and structurally growing asset class, with a long-term investment horizon and favorable cash profiles Giving Back to Society Increased Diversification PATRIZ
Slide 15: Long-term dynamics support demand for real asset investments
Equity Story Long-term dynamics support demand for real asset investments Intense pension reform efforts around the globe following increased life Structural growth market expectancy drives demand for funded pension programs managed by the private sector - pension funds are PATRIZIA's largest client
Slide 16: Real Assets offer long-term value and growth opportunities
Equity Story Real Assets offer long-term value and growth opportunities • Changing amenities regarding living, working and purchasing creates a continuous demand for future-proof real estate REAL ESTATE • Significant value opportunities through active asset management • Relatively new asset class wh
Slide 17: Multi-trillion USD infrastructure gap offers significant AUM growth opportunities
Equity Story Multi-trillion USD infrastructure gap offers significant AUM growth opportunities Annual average infrastructure need (2017-2035) | in USD trillion 0.5 0.5 1.1 3.7 0.1 0.1 0.4 0.9 Roads Rail Ports Airports Power Water Telecom Total Source: McKinsey Global Institute PATRIZIA | © 2024 17
Slide 18: Our Equity Story: Increased Diversification
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification Our continuously increasing product PATRIZIA portfolio covers various asset classes and regions, stabilising income by diversification Financial Fle
Slide 19: AUM base continues to be well diversified supporting recurring fee income
Equity Story AUM base continues to be well diversified supporting recurring fee income EUR 57.3 bn assets under 3%3% 3% 81 % resilient Core 6% management and Core plus 5% 18% 2% 3% 27% strategies 4% 16% 4% AUM by AUM by AUM by geography 53% 18% risk style 7% 12% sector 63% 5% 11% 10% 27% Germany UK
Slide 20: Long-duration AUM and equity rich client base support predictable management fees
Equity Story Long-duration AUM and equity rich client base support predictable management fees Maturity breakdown of AUM1 Equity commitments by clients2 31% 4% 75% average Fund-LTV 10% 61% 2% 48% 32% 3.4bn 84% 22% firepower for 8% investments (EUR) >10 years/unlimited 5–10 years Top 1 Top 5 Top 10 T
Slide 21: Our Equity Story: Future Proof
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Financial Flexibility Future Proof We offer investment solutions in line with megatrends like Demographics, Digital- Asset Expertise lisati
Slide 22: PATRIZIA’s products provide attractive investment solutions in line with megatrends
Equity Story PATRIZIA’s products provide attractive investment solutions in line with megatrends Demographics Digitalisation Urbanisation Decarbonisation By 2050, 70% of the global Demographic change creates needs Data consumption is growing Decarbonisation as global population is expected to live i
Slide 23: Infrastructure investments offer solutions for today’s challenges
Equity Story Infrastructure investments offer solutions for today’s challenges Thematic: Thematic: • Climate change impacts water scarcity • Exponential need and need for circular economy for digital infrastructure Opportunities: Opportunities: • Smart metering • Fibre assets • Towers • Water extrac
Slide 24: ESG incorporation improves every step of the investment process
Equity Story ESG incorporation improves every step of the investment process Product Fund Sourcing & Asset Development & Development Management Acquisitions Management Refurbishment Exit/Sales • Top-down analysis of • ESG Fund Policy with • Sustainable investment • Strategic ESG Action Plan • Sustai
Slide 25: Our Equity Story: Asset Expertise
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Our combination of local people on the ground, strong and innovative in-house Financial Flexibility research and experience throughout Futu
Slide 26: Experts on the ground understanding local requirements serve global client base
Equity Story Experts on the ground understanding local requirements serve global client base 44% female staff in the business (>37% across real assets professionals) ~ 1,000 6.5+ years dedicated professionals average tenure across real assets globally professionals, longer in leadership roles PATRIZ
Slide 27: PATRIZIA funds outperformed unlisted European real estate benchmark on a long term basis
Equity Story PATRIZIA funds outperformed unlisted European real estate benchmark on a long term basis PATRIZIA fund performance vs. INREV Index performance1 7.1% 1.6% ⚫ PATRIZIA fund performance outperformance ⚫ INREV Index (average) 4.3% 5.5% 1.6% 2.7% 0.9% outperformance outperformance 2.7% 1.8% 1
Slide 28: Retail investor business shows strong footprint and further growth opportunities
Equity Story Retail investor business shows strong footprint and further growth opportunities Investment volume | EUR m Facts 1,750 1,500 • Investment volume exceeds EUR 1.7bn 1,250 • More than 10,000 subscriptions signed 1,000 • Average cash distribution for the financial years 2016 to 2022 is 4.53
Slide 29: Our Equity Story: Financial Flexibility
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Financial Flexibility Future Proof Our balance sheet is net cash positive with a high net equity ratio, enabling strategic M&A, organic gro
Slide 30: AUM growth translates into growing and recurring management fees
Equity Story AUM growth translates into growing and recurring management fees 60.0 – 59.1 54.0 60 57.3 50 47.0 48.6 +19.4 % p.a. 44.5 300 Management fee 41.0 40 growth 2012 – 2023 251.1 241.0 30 209.1 190.9 193.4 21.9 175.3 150 20 18.6 16.6 11.8 14.6 93.2 +21.3 % p.a. 10 6.9 81.5 89.1 68.1 AUM growt
Slide 31: Moderate valuation effect on AUM in line with expectations
Equity Story Moderate valuation effect on AUM in line with expectations AUM development AUM development 3MFY 2023| 2023| EUREUR bn bn • AUM decreased by 3.2% to EUR 57.3bn in FY 2023 2.6 60 -0.7 -0.9 59.1 • Acquisitions of EUR 2.6bn substantially contributed -2.7 -0.2 50 to offset 57.1 negative valu
Slide 32: Growth trend of fees temporarily impacted by subdued market environment
Equity Story Growth trend of fees temporarily impacted by subdued market environment Total service fee income | EUR m Covid-19 years Market shifts 348.0 346.4 320.2 327.6 324.7 100% 312.4 268.6 91.8 85.9 61.2 15% 86.1 46.6 92.5 22.5 14.7 5% 211.9 51.4 188.6 65.3 48.1 52.4 140.0 29.2 66.9 25.0 80% 19
Slide 33: Size and growth of recurring fees cushion market-driven drop of other revenue streams
Equity Story Size and growth of recurring fees cushion market-driven drop of other revenue streams Management fees | EUR m Transaction fees | EUR m Performance fees | EUR m 251.1 61.2 241.0 +4.2% - 23.8% 46.6 22.5 4.3 - 34.6% 14.7 4.0 18.2 10.7 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 A
Slide 34: Higher staff costs and reorganisation expenses partly offset by decline in other expenses
Equity Story Higher staff costs and reorganisation expenses partly offset by decline in other expenses Changes in operating expenses y-o-y EUR m • Operating expenses increased to EUR 293.6m (FY 2022: EUR 280.5m) +15.7% -10.8% -24.9% +63.9% • Staff costs up by +15.7% to EUR 171.1m due to infl
Slide 35: EBITDA impacted by market headwinds and reorganisation, but supported by other income
Equity Story EBITDA impacted by market headwinds and reorganisation, but supported by other income Composition of EBITDA | EUR m • EBITDA down -31.5% y-o-y to EUR 54.1m due to market-driven decrease in total service fee income and reorganisation expenses of EUR 16.3m (part -23.8% +54.9% +4.7%
Slide 36: FY 2023 within most recent guidance range – cautious optimism for FY 2024
Equity Story FY 2023 within most recent guidance range – cautious optimism for FY 2024 • Client investment activity expected to pick up Latest guidance FY Guidance only in the course of FY 2024 FY 2023 2023 FY 2024 AUM 57.0 – 62.0 57.3 54.0 – 60.0 • AUM expected to stay flat at mid-point in (in EUR
Slide 37: Strong balance sheet and financial strength safeguard flexibility in current environment
Equity Story Strong balance sheet and financial strength safeguard flexibility in current environment Strong balance sheet Significant liquidity • Net cash and available liquidity down EUR m 31.12.2023 EUR m 31.12.2023 due to dividend payment, co-investments, Total assets 1,999.1 Bank balances, 350.
Slide 38: Co-Investments boost products, intensify client relationships and exploit opportunities
Equity Story Co-Investments boost products, intensify client relationships and exploit opportunities Third-party business| EUR bn PATRIZIA SE Balance Sheet| EUR m Cash and cash equivalents 340 10.0 Equity 1,196 AUM Co-Investments1 401 ….57.3 ∑ 47.3 Dawonia profit entitlements1 294 Liabilities 803 Ot
Slide 39: PATRIZIA’s multi-dimensional engagement in Dawonia is a key performance driver
Equity Story PATRIZIA’s multi-dimensional engagement in Dawonia is a key performance driver • Dawonia is one of the largest housing companies in southern Germany with 360 employees managing around 27,000 flats spread across more than 20 prime urban environments • PATRIZIA’s successful management of
Slide 40: Balance sheet supports strategic fund investment initiatives
Equity Story Balance sheet supports strategic fund investment initiatives Major balance sheet investments as at 31 December 2023 EUR m EUR m Seeding Non-current assets Participations Debt investment provided to 595 Debt Fund II 25 (e.g. Dawonia) telecom infrastructure business Other non-current 41 T
Slide 41: Our Equity Story: Giving Back to Society
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification We contribute to the enhancement of society by distributing up to 1% of our EBITDA to charitable organisations like the PATRIZIA Foundation PATRIZIA
Slide 42: We are proud to make a positive impact by donating up to 1% of our EBITDA
Equity Story We are proud to make a positive impact by donating up to 1% of our EBITDA Our Mission The „S“ of ESG Our mission is to help establish quality education, The PATRIZIA Foundation is healthcare and safe homes worldwide. By your reliable partner if you, partnering with local professionals a
Slide 43: Our Equity Story lines out our uniqueness as a real asset expert
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market We are active in alternatives, a stable and structurally growing asset class, with a long-term investment horizon and favorable cash profiles Giving Back to Society Increased Diversification We con
Slide 44: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 44
Slide 45: Ambitious but achievable long-term sustainability goals being continuously set into practice
ESG activities Ambitious but achievable long-term sustainability goals being continuously set into practice PATRIZIA Sustainability Goals 1 2 3 4 Become a leading sustainable investor with a Achieve net zero carbon status across our Become a leading global impact investor in the Real Be an employer
Slide 46: Principles and sustainability frameworks direct us in our daily business
ESG activities Principles and sustainability frameworks direct us in our daily business Our contribution to the Our global ESG Ecosystem Sustainable Development Goals Public Engagement Memberships PATRIZIA | © 2024 46
Slide 47: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 47
Slide 48: Stable shareholder structure and upside to analyst target prices
Share Stable shareholder structure and upside to analyst target prices PATRIZIA share performance | as at 28.02.2024 Shareholder structure | as at 31.12.2023 Analyst recommendations | as at 31.12.2023 7 EUR 30.00 30.00 € 7.54% 2 First Capital Partner GmbH 25.00 25.00 € 3 Union Investment Privatfonds
Slide 49: PATRIZIA share performance - what is the implied value of the operating business?
Share PATRIZIA share performance - what is the implied value of the operating business? Share Performance last 12 months compared to peer group Implied value of the operating business 1 60% EUR EUR 40% 111m 81m 20% 0% -20% EUR 565m -40% -60% Net cash and value of treasury shares Partners Group Black
Slide 50: Dividend proposal for FY 2023 and new dividend policy
Share Dividend proposal for FY 2023 and new dividend policy • Dividend proposal of EUR 0.34 per share for FY 2023 Dividend per share (EUR) backed by strong balance sheet and solid operating cash- flow +3.0% +6.7% +3.1% 0.34 0.33 • Sixth consecutive increase in dividends in a row +3.4% 0.32 +7.4% 0.3
Slide 51: Shareholder Value Long-Term Incentive (SVL) aligns CEO’s and shareholders’ interests
Share Shareholder Value Long-Term Incentive (SVL) aligns CEO’s and shareholders’ interests Entry ticket: CEO to buy 316k shares Private investment worth ~ EUR 3m Operating performance 1. Recurring revenues ≥ 85% of total revenues Operating targets or requirements (by end of FY 2027) 2. EBITDA meets
Slide 52: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 52
Slide 53: Capital allocation
Appendix Capital allocation PATRIZIA's capital allocation as at 31 December 2023 Assets under Invested capital (fair Management value) Invested capital (at cost) Participations EUR m EUR m EUR m in % Third-party business 47,208.9 0.0 Co-Investments and Warehousing 10,040.4 803.2 415.3 Real estate -
Slide 54: Reconciliation of EBITDA
Appendix Reconciliation of EBITDA Detailed reconciliation to EBITDA EUR k 2023 2022 Change Table in the current report Management fees (excluding result from participations) 242,204 231,544 4.6% Reconciliation of total service fee income Shareholder contribution for management services (in result fr
Slide 55: Consolidated income statement
Appendix Consolidated income statement EUR k Note 2023 2022 Revenues 4.19 292,434 346,289 Changes in inventories 4.20 0 -41,266 Other operating income¹ 4.21 24,726 28,564 Total operating performance 317,160 333,587 Cost of materials 4.22 -1,622 -7,608 Cost of purchased services 4.23 -17,039 -22,740
Slide 56: Consolidated balance sheet | Assets
Appendix Consolidated balance sheet | Assets Assets EUR k Note 31.12.2023 31.12.2022 A. Non-current assets Goodwill 4.2 376,719 381,253 Other intangible assets 4.3 89,320 107,134 Software 4.4 6,725 8,080 Rights of use 4.5 51,296 26,715 Investment property 4.6 246,481 1,892 Equipment 4.7 14,580 9,721
Slide 57: Consolidated balance sheet | Equity and liabilities
Appendix Consolidated balance sheet | Equity and liabilities Equity and liabilities EUR k Note 31.12.2023 31.12.2022 A. Equity Share capital 4.11 85,844 86,175 Capital reserves 4.11 65,704 67,181 Retained earnings Legal reserves 4.11 505 505 Currency translation difference 2.3 -3,853 -2,502 Remeasur
Slide 58: Financial calendar 2024
Appendix Financial calendar 2024 22 MAR 24 2023 Annual Report 15 MAY 24 3M 2024 Interim Statement with investor and analyst conference call 12 JUN 24 2024 Annual General Meeting 14 AUG 24 H1 2024 Financial Report with investor and analyst conference call 14 NOV 24 9M 2024 Interim Statement with inve
Slide 59: Contact
Appendix Contact CHRISTOPH GLASER MARTIN PRAUM Executive Director | CFO Senior Managing Director Head of Investor Relations & Group Reporting PATRIZIA SE T +49 69 643505-1114 Fuggerstrasse 26 M +49 151 19685445 86150 Augsburg, Germany investor.relations@patrizia.ag DR JANINA ROCHELL VERENA SCHOPP DE