Peach Property Group Ag · SIX:PEAN

Peach Property — H1 2023 Earnings Presentation

56 slides from Peach Property's earnings presentation, Aug 23, 2023

  1. Slide 1: August 23, 2023

    August 23, 2023 ©peach PROPERTY GROUP

  2. Slide 2: Presenters

    Presenters Thorsten Arsan Stefan Feller Chief Financial Officer Head of Investor Relations ° >15 years of finance experience in corporate finance, treasury and capital market roles Former Head of Financing at Swiss utility po Holding AG and Head of Capital Former Head of Corpo Kanani frcerper rae Ma

  3. Slide 3: Agenda

    Agenda 1. The environment in H1 2023 2. Business Performance H1 2023 3. Financial Performance H1 2023 4. ESG-Update 5. Guidance FY 2023 & mid-term financial targets 6. Appendix Portfolio details * Consolidated statement of income, financial position and cash flows * Funds from operations + EPRANAV&

  4. Slide 4: 1st half-year 2023 — improved profitability

    1sthalf-year 2023 — improved profitability i +3.6% l-f-l -4.7% y-o-y Tenant satisfaction? 79% -0.4pp y-o-y -3.8% of MV* Funds from Adjusted Operations | EBITDA margin €9.5m | 53.7% Result after LTV taxes 55.0% €-76.1m EPRA NTA/sh Equity ratio 40.1% €51.9 (1) Market values of investments properties d

  5. Slide 5: The environment in H1 2023 — first signs of a stabilizing market?

    The environment in H1 2025 — first signs of a stabilizing market? Inflation is coming back... Mortgage lending on 18y low... Low transaction volumes... RE prices seem to stabilize... -—{_ German Consumer Price Indext 10 9 8 7 6 5 4 Se es ee eee SiPoRsszs4 2022 2023 {New German mortgage volume? } { D

  6. Slide 6: Inflation and scarcity drive market rents

    Inflation and scarcity drive market rents Peach Top 10 locations with continued strong market rental growth! Rent growth counteracts value correction 230. Property price index by German Pfandbriefbanks? @ Eo aren Kaiserslautern Tm 2 70 —— Residential rents index Ludwigshafen — ig) 150 Cap rate index

  7. Slide 7: No relief in sight for undersupply in the German housing market

    No relief in sight for undersupply in the German housing market Structural undersupply in German housing market German net immigration at the highest level since WW II 700 A = Completed new appartments (000) ——Government target rate (000) 600 500 400 Sf Expected 300 completions in oe” 200 - IN 0) as

  8. Slide 8: Agenda

    Agenda 1. The environment in H1 2023 2. Business Performance H1 2023 3. Financial Performance H1 2023 4. ESG-Update 5. Guidance FY 2023 & mid-term financial targets 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA

  9. Slide 9: Overview investment properties

    & Overview investment properties Number of residential units Actual rental income (€m) Market value (€m)? Gross rental yield FY 2022 27549 HY 2023 27541 Residential floor space (sqm) H1 20221 H1 2023 57.4 59.8 Target rental income (€m) H1 2022" 2602.8 Vacancy HY 2023 2515.3 FY 2022 45% HY 2023 ord 4

  10. Slide 10: Strong rental growth with further potential

    Strong rental growth with further potential Figures in € / sqm New letting contracts concluded slightly above market levels -F04~ “7.09 > 717 due 3 5.98 6.11 / : ) potential @in-place rent @ market rent New letting @ in-place rent @ market rent Dec 31, 2022" Dec 31,2022? rentsH12023 Jun 30,2023 Jun

  11. Slide 11: Vacancy rate significantly reduced in recent years

    Vacancy rate significantly reduced in recent years Development of vacant residential units and vacancy ratio Vacant residential units by vacancy category 2190 1158 FY 2019 FY 2020 FY 2021 FY 2022 HY 2023 + Approx. 1 500 new contracts concluded in first half-year 2023. ©peach 1988 - || «effective vac

  12. Slide 12: Capex significantly reduced

    & Capex significantly reduced c ——— * On the back of higher construction and financing costs and to preserve our liquidity, investments have been sharply reduced in H1 2023. + EUR 9.9m (0/w approx. 60% Tl and 40%. Capex) spent in H1 2023. * Approx. 800 units renovated. * For FY 2023 we expect a tota

  13. Slide 13: Portfolio value impacted by adverse environment for German real estate

    Portfolio value impacted by adverse environment for German real estate Valuation result HY 2023 Key valuation indicators ; ; June 30, 2023 December 31, 2022 Seana progress OcsseTELS Value per sqm €1402 €1450 Total revaluation gain as % of investment properties Rent multiple 19.1x 20.2x Gross yield?

  14. Slide 14: Development project in CH «Peninsula Wädenswil» - construction in full swing

    Development project in CH «Peninsula Wadenswil» - construction in full swing 57 condominiums in 5 buildings Total sales volume expected CHF 130-140m Sales status as of June 30, 2023 Construction status as of June 30, 2023 * Notarized: 28 residential units (Dec 31, 2022: 19). Stage of completion: 7.4

  15. Slide 15: Agenda

    Agenda 1. The environment in H1 2023 2. Business Performance H1 2023 3. Financial Performance H1 2023 4. ESG-Update 5. Guidance FY 2023 & mid-term financial targets 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA

  16. Slide 16: Financial performance in H1 2023

    Financial performance in H1 2023 Net rental income (€m) FFO I (€m) Adjusted EBITDA (€m) Operating Income (€m) H1 20221 57.4 H1 20221 88 H1 20221 28.7 Tees 133.7 2 es & H1 2023 59.8 H1 2023 95 H1 2023 32.1 [eg 73.0 Result after tax (€m) Equity ratio (IFRS) EPRA NTA (€/share) Loan-to-value 412022 456

  17. Slide 17: Hardly any debt maturities until 2025

    = Hardly any debt maturities until 2025 Maturity profile as of June 30, 2023! 600 586 500 7 g 400 3 5 300 A i wv =) 200 143 132 8 100 | u7 89 g ° = = ZH gs 2023 2024 2025 2026 2027 2028 2029 = > 2030 TS msecured ~ unsecured = Corporate Bonds RCF (drawn / facility size) Unencumbered assets: €474.7m ‘

  18. Slide 18: Progress in operating profitability in first half-year

    S Progress in operating profitability in first half-year 2023 Maintenance in € per sqm Administration in € per sqm . . . 6.00 + Higher maintenance costs driven by cost ss increases from external service providers. 9.12 470 498 8 7.30 Gg . + Lower administration costs as a result of insourced propert

  19. Slide 19: Agenda

    Agenda 1. The environment in H1 2023 2. Business Performance H1 2023 3. Financial Performance H1 2023 4. ESG-Update 5. Guidance FY 2023 & mid-term financial targets 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA

  20. Slide 20: First Sustainability Report in accordance with the GRI Universal Standards published

    First Sustainability Report in accordance with the GRI Universal Standards published Sustainability Report 2022 Sustainability across the board @peach PROPERTY GROUP @peach By managing our material topics and their impacts, we contribute towards ten of the seventeen Sustainable Development Goals of

  21. Slide 21: Amendment to German building energy act (GEG) as important guide to ESG capex

    at Amendment to German building energy act ("GEG") as important guide to ESG capex No technological specifications on how to achieve 65% target. Regulations will only apply once a municipal heating plan is available. New heating systems must be operated with at least 65% renewable energy. Functionin

  22. Slide 22: Tenant satisfaction as a leading priority

    = Tenant satisfaction as a leading priority KPls Property Management ticketing system Period YY 01.01.2023 — 30.06.2023 Solved Tickets «One touch» rate 81545 a>, 91.8% y-O-y @., resolution Peach Points only Full resolution incl. system partners 17.5 hours 53.6 hours 70% y-0-y @ Satisfaction ratio of

  23. Slide 23: Agenda

    Agenda 1. The environment in H1 2023 2. Business Performance H1 2023 3. Financial Performance H1 2023 4. ESG-Update 5. Guidance FY 2023 & mid-term financial targets 6. Appendix Portfolio details * Consolidated statement of income, financial position and cash flows + Funds from operations + EPRANAV&

  24. Slide 24: On track to reach guidance FY 2023 & mid-term financial targets

    On track to reach guidance FY 2023 & mid-term financial targets Guidance FY 2023 Financial targets for the period until 2025 Net Rental Income €121 - 123m Vv) (-f-L rental growth m 5% p. L-f-l rental growth TO Adj. EBITDA Margin +500bps vs. FY 20221 FFOI €21- 23m (v) FFO | growth CAGR ~15%? LTV 50%

  25. Slide 25: Peach's focus in 2nd half 2023

    ©peach Increase rents * Growing population and number of households. * Lack of supply; new construction is slowing down due to high construction and financing costs. + Rising market rents reflect high demand for «affordable housing» product. Peach's focus in 2™ half 2023 Cost control * New COO, Marc

  26. Slide 26: Agenda

    Agenda 1. The environment in H1 2023 2. Business Performance H1 2023 3. Financial Performance H1 2023 4. ESG-Update 5. Guidance FY 2023 & mid-term financial targets 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA

  27. Slide 27: Appendix: Portfolio details

    ©peach PROPERTY GROUP Appendix Portfolio details

  28. Slide 28: Portfolio structure as of June 30, 2023

    & Portfolio structure as of June 30, 2023 Investment properties €26.m (1%) Total portfolio = _ market value €2 580m © peach Market values determined by Wuest Partner AG a of June 30, 2023, exclucng right of-use assets) Percentaye-of-completion value: EUR 289m ¥ Development properties! €64m (3%) om 2

  29. Slide 29: Portfolio fully focused on residential space

    Portfolio fully focused on residential space Rental income by use category as of June 30, 2023 In % of total rentalincome Parking & other Commercial 2.9% 3.8% \] Residential 93.3% Breakdown by federal state as of June 30, 2023 In % of target rental income 4, 26% 4.0% 4.0% \ | = North Rhine-Westphali

  30. Slide 30: Typical assets in Peach's portfolio

    & Typical RSIS in Peach's porttolio 30

  31. Slide 31: Peach Points — our regional tenant shops

    & Peach Points — our regional tenant shops Cornerstone of direct dialogue with our tenants \ 15 Peach P. Dorm el Munster / Fa8berg Recklinghausen Marl Helmstedt Gelsenkirchen Essen Central point of contact for rental and administrative matters Oberhausen Witzenhausen Erkrath. Heidenheim Ludwigshafen

  32. Slide 32: € 1 8 12 20 13 11 14 5 15 1 16 17 16

    19 6 € 15 1 17 2 3 13 4 4 5 2 6 12 7 18 3 8 7 14 9 10 10 7 11 8 12 20 13 11 14 5 15 1 16 17 16 18 19 20 9

  33. Slide 33: Appendix: Consolidated statement of income, financial position and cash flows

    ©peach PROPERTY GROUP Appendix Consolidated statement of income, financial position and cash flows

  34. Slide 34: Consolidated statement of income

    Consolidated statement of income Figures in EUR thousands (EESUEDETEESE 2st rat-year 2022 Rental income 57393 Valuation gens from investment properties 76249 Profit on aisposal of investment properties 6 Income rom development properties = 62 Other operating income ise Operating income 133736 1. Exp

  35. Slide 35: Consolidated statement of financial position

    Consolidated statement of financial position Jun 30, 202! Figures in EUR thousands Cash & Cash equivalents ‘Trade receivables Other receivables Current financial receivables Contract assets Development properties Investment properties held for sale Total current assets Investment properties Equipmen

  36. Slide 36: Consolidated statement of financial position (continued)

    Consolidated statement of financial position (continued) Figures in EUR thousands Share capital J. Treasury shares Share premium Hybrid capital J. Other reserves Currency translation changes Retained earnings Equity attributable to ] 2048 091 a 1.048 091] Peach Property Group AG equity holders Equit

  37. Slide 37: Consolidated statement of cash flows

    Consolidated statement of cash flows Figures in EUR thousands Result before taxes Adjustments for non-cash expenses/income Depreciation and amortization Valuation result from investment properties Impairment charge on development properties Net result on disposal of investment properties Change in b

  38. Slide 38: Consolidated statement of cash flows (continued)

    Consolidated statement of cash flows (continued) (ESUETETEIEIE 1s ate year 2028 Figures in EUR thousands Payments for real estate companies Payments for equipment Proceeds from the disposal of equipment Payments for intangible assets Investments in investment properties ‘Advance payments for investm

  39. Slide 39: Appendix: Funds from operations

    ©peach PROPERTY GROUP Appendix Funds from operations

  40. Slide 40: Funds from operations (FFO)

    Funds from operations (FFO) Figures in EUR thousands EBIT Depreciation and amortization EBITDA Impairment charge on development properties Valuation resul of investment properties Disposal fo investment properties Share-based compensation Other non-cash accrued expense positions Adjusted EBITDA Inte

  41. Slide 41: Appendix: LTV and ICR

    ©peach PROPERTY GROUP Appendix LTV and ICR

  42. Slide 42: Loan-to-value and interest coverage ratio

    Loan-to-value and interest coverage ratio LTV ICR Figures in EUR thousands Market value of real estate investment portfolio Market value of real estate development portfolio Revolving credit facility Mortgages and building loans Bonds Promissory notes, syndicate loans, and other property financings

  43. Slide 43: Appendix: EPRA NAV & NTA

    ©peach PROPERTY GROUP Appendix EPRA NAV & NTA

  44. Slide 44: EPRA NRV & NTA

    EPRA NRV & NTA Figures in EUR thousands Dec 31, 2022 STW) «=«EPRANRV =—EPRANTA Eauiy atuibutable to Peach Property Group AG 1067 414 1067 414 J. Hybrid instruments - 51556 ~ 51556 Revaluation of development properties Diluted NAV at fair value 1015858 = 1015 858 J. Deferred tax in relation to fair v

  45. Slide 45: Appendix

    ©peach PROPERTY GROUP Appendix

  46. Slide 46: Work on decarbonization path continued

    =i Work on decarbonization path continued Carbon intensity in kg COze/m?a (Scope 1 and 2) 40 * Further improved the quality of our decarbonization \ database, a Mlustrative representation ae * Inclusion of consumption data for rental units Q acquired in 2021 for the first time. 30 * Starting point o

  47. Slide 47: Energy KPIs of Peach Portfolio

    = Energy KPIs of Peach Portfolio Distribution of energy efficiency classes Source of heat energy & supply ™Gas m District Heating =Power =Oil mcentral m decentralized German CO, levy Share tenant = Landlord 0% 9 9 mney 100% 90% 80% a i a Z : i: / 70% 60% 5 1 50% 4 40% 7 . Bee wig: = » 5% <12kg 12-17

  48. Slide 48: Our ESG Awards

    = Our ESG Awards 2022 ESG Risk Rating ACWNISHR SUSTAINALYTICS —e + First active participation in rating process. TOP RATED + In 4" percentile of global rating universe (> 1 500 companies). 2022 ESG Rating MSCI 6 * Upgrade to «A» from «BBB», 2022 Award for ESG reporting + First award for Peach Sustai

  49. Slide 49: Peach's decarbonization tool

    = Peach's decarbonization tool For illustration purposes only 1 pec ° e Szenario vomit <2 ezl « wd decarbRE 2021 fabian ei ~ A AC Boeka Flachen ee ip2 Em == Flachen ort WEIGE spez COZ D vere 1 Bkkgins Bocum | 18 224 apna Gesamt 580-23. 4a/0 Primarenergiefaktor 1,22 Primarenergie ‘Auswahi 154,5 3,7 T

  50. Slide 50: Appendix: Share data

    ©peach PROPERTY GROUP Appendix Share data

  51. Slide 51: Capital market development

    << Capital market development Credit ratings (Corporate Rating) Recent capital market transactions Convertible bond 3% CHF 50 million; conversion price CHF 15.00 ; as Mandatory convertible bond 5% CHF 112.3 million; conversion price CHF 30.00 oe Buybacks & par call to repay EUR 250 million EuroBond

  52. Slide 52: Share data

    << Share data Significant shareholders! as of June 30, 2023 29.93% 47.62% 8.21% 6.27% 3.55% 4.42% mAres Management Corporation m Franciscus Zweegers m Rainer-Marc Frey = Kreissparkasse Biberach = Dr. Thomas Wolfensberger = Other Note: The notional free float based on the shares issued on June 30, 20

  53. Slide 53: Appendix: Financial calendar

    ©peach PROPERTY GROUP Appendix Financial calendar

  54. Slide 54: Scheduled publications & events

    Scheduled publications & events Financial calendar Upcoming road shows & participation in conferences! 21 March 2024 14 May 2024 FY results 2023 AGM 2024 Opeach — aswecrocrnge 12 September 2023 — SRC Forum Financials & Real Estate (Frankfurt) 18 September 2023 _ Baader Investment Conference (Munich)

  55. Slide 55: Disclaimer

    Disclaimer These materials contain forward-looking statements based on the currently held beliefs and assumptions of the management of Peach Property Group AG (hereinafter also referred to as «PPG» or «Peach Property»), which are expressed in good faith and, in their opinion, reasonable. Forward-loo

  56. Slide 56: Investors, Analysts and Media

    Investors, Analysts and Media Thorsten Arsan, Chief Financial Officer Stefan Feller, Head of Investor Relations +41 44 485 50 18 investors@peachproperty.com

Peach Property Group — H1 2023 Earnings Presentation on 6ix