Peach Property Group Ag · SIX:PEAN
Peach Property — FY2022 Earnings Presentation
57 slides from Peach Property's earnings presentation, Mar 21, 2023
Slide 1: FY 2022 Results
FY 2022 Results March 21, 2023 ©peach PROPERTY GROUP
Slide 2: Presenters
Presenters Dr. Thomas Wolfensberger Thorsten Arsan 4 | Chief Executive Officer Chief Financial Officer >20 years of experience, including * >19 project manager for successful IPO, German residential real es bond issuances and real estat market; o' Equity a transactions with total volume of Capital M
Slide 3: FY 2022 — highest operating profit in history
FY 2022 — highest operating profit in history Funds from Adjusted Operations EBITD. €19.2m €59.35m Result after LTV taxes (pro forma)? €-15.0m e52% In +2.4% y-o-y 1st ESG Risk Tenant Rating satisfaction’ Equity ratio EPRA NTA/sh Reporting first ro forma)3 5 time in € as (p ) (pro forma) opposed to C
Slide 4: The environment in 2022
The environment in 2022 Challenging market conditions in German real estate market... ... but fundamentals for existing assets developing positively Risk-free rates? +237 bps Investment volume residential portfolios? -33% Mortgage lending* -43% European Real Estate shares® -39% Bond spreads® +230 bp
Slide 5: Peach adapts to the new environment
Peach adapts to the new environment vA ll Strong [-f-| growth of all aarti anict High demand for affordable housing and rosie vent growth lack of new supply will keep up rent growth. Review of cost structure Implementation of cost saving measures which should lead to a launch of cost savings margin
Slide 6: Agenda
Agenda 1. Business Performance FY 2022 2. ESG Update 3. Financial Performance FY 2022 4. Guidance & mid-term financial targets 5. Appendix Portfolio details * Consolidated statement of income, financial position and cash flows + Funds from operations + EPRANAV& NTA + LIV&ICR * ESG * Share data & fin
Slide 7: Overview investment properties
& Overview investment properties Number of residential units Actual rental income (€m) Market value (€m)2 Gross rental yield FY 2021 27 441 FY 20211 100.4 FY 20211 2541.4 FY 2021 4.8% FY 2022 27549 FY 2022 116.5 FY 2022 2602.8 FY 2022 45% Residential floor space in sqm Target rental income (€m) Vaca
Slide 8: Inflation and scarcity drive market rents
Inflation and scarcity drive market rents Relevant Peach cities show strong market rent growth! Rent growth counteracts value correction Property \dex by G Pfandbriefbanks> 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% ey i | ces: ene ama 1 i — Capital value index Munster 200 ——Residental rents index Vi ——Ca
Slide 9: Strong rental growth with further potential
& Strong rental growth with further potential Figures in € / sqm Sources of rental growth target a l 1! i potential @in-place rent @ market New letting @ in-place rent @ market rent 3.0: Dec 31, 2021' rent 20222 rents 2022 Dec 31, 20224 Dec 31, 20223 7.04 ~50% min 3.5% LL growth ~20% target ~30% Flu
Slide 10: Structural undersupply of housing in Germany is increasingly evident
& Structural undersupply of housing in Germany is increasingly evident Structural undersupply in German housing market German net immigration on the highest level since WW II$ 700 A = Completed new apartments (in thousands) oS) ——Government target rate (in thousands) 1000 600 600 500 200 - 200 400 B
Slide 11: Lower vacancy driven by strong demand
& Lower vacancy driven by strong demand Development of vacant residential units and vacancy ratio 2190 Vacant residential units by vacancy category 2019 2020 2021 2022 New lettings (approx. 3 700 new contracts concluded) at record level in 2022 with noticeable impact on vacancy rate. ©peach 1899 -28
Slide 12: Capex development
@& Capex development €22.5m €41.6m €57.6m FY 2020 FY 2021 FY 2022 ©peach Record number of 2 160 units renovated in 2022. Of which around 110 rental units underwent substantial energy-related renovations such as replacing windows or thermal insulation. In addition, approx. 40 heating systems for arou
Slide 13: Portfolio value stable year-on-year
Portfolio value stable year-on-year Valuation result 2022 Key valuation indicators = Operational progress & discount rate 1 Initial valuation € 1450 (Fy 2021: € 1424) = Total revaluation gain as % of investment properties €-12.2m (- 20.2x (FY 2021: 20.7x) €1.6m (0.1%) 4.95% (FY 2021: 4.83%) €-13.8m
Slide 14: Remaining development project in CH - Peninsula Wadenswil
& Remaining development project in CH - «Peninsula Wadenswil» at Lake of Zurich Construction start & Construction in 2023 & 2024 groundbreaking ceremony in H2 2022 handover of condominiums 2024/2025 planned 57 condominiums 60% of units notarized or in 5 buildings reserved Total sales volume Single-d
Slide 15: Agenda
Agenda 1. Business Performance FY 2022 2.ESG Update 3. Financial Performance FY 2022 4. Guidance & mid-term financial targets 5. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR ESG Share data & financial cale
Slide 16: Sustainability is central to our actions
gi Sustainability is central to our actions » Economic Py performance > Risk management >» Reduction of emissions and energy consumption > Responsible handling of water, effluents and waste Business Performance Sustainabilty in practice Governance > Well-being of our tenants > Affordable and sustain
Slide 17: Work on decarbonization path continued
=i Work on decarbonization path continued Carbon intensity in kg COze/m?a (Scope 1 and 2) Further improved the quality of our decarbonization database. Inclusion of consumption data for rental units acquired in 2021 for the first time. Starting point of decarbonization path with a CO intensity of ~3
Slide 18: Tenant satisfaction as a leading priority
= Tenant satisfaction as a leading priority KPls Property Management ticketing system Periode YY 01.01.2022 — 31.12.2022 Created Tickets «One touch» rate 112 922 @ 90.1% @ @.., resolution Peach Points only Full resolution incl. system partners 18.1 hours ® 68.4 hours @ @ Satisfaction ratio of ticket
Slide 19: 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
Slide 20: Agenda
Agenda 1. Business Performance FY 2022 2. ESG Update 3.Financial Performance FY 2022 4. Guidance & mid-term financial targets 5. Appendix Portfolio details * Consolidated statement of income, financial position and cash flows + Funds from operations + EPRANAV& NTA + LIV&ICR * ESG * Share data & fina
Slide 21: Financial performance in FY 2022
Financial performance in FY 2022 Net rental income (€m) FFO I (€m) Adjusted EBITDA (€m) Operating Income (€m) FY 2021! 100.4 FY 2021! 10.2 FY 2021! 52.0 FY 2021" 367.8 c © S FY 2022 116.5 FY 2022 19.2 FY 2022 59.3 FY 2022 159.4 Result after tax (€m) Equity ratio (IFRS) EPRA NTA (€/share) Loan-to-val
Slide 22: Debt structure as of December 31, 2022
<< Debt structure as of December 31, 2022 Maturity profile! 700 Fully repaid by 600 proceeds from MCB 588 in January 2023 3 500 8 33 400 a w 300 291 200 eB 8 (96) | ia 93 118 wy 3 66% 100 31 3 o i _< = a =e 8 2023 2024 2025 2026 2027 2028 2029 > 2030 ‘incl. hedges msecured unsecured = Corporate Bond
Slide 23: Launch of Convertible Bond & Exchange
2 Launch of Convertible Bond & Exchange Offer to refinance Hybrid Bond Key Terms of new Convertible Bond Issuer Peach Property Group AG Up to CHF 50 000 000 Right to increase amount up to CHF 75 000 000 3.00% paa. from issue date until 17 April 2026 (incl); payable annually, Nominal amount Coupon Is
Slide 24: Opex development
<< Opex development =m Maintenance/sqm =) Admin/sqm =Total Opex + Higher maintenance costs driven by higher number of tenant tickets (legacy from acquisitions in 2020 and 2021) and higher material and 3" party services costs. + Reduction of administration costs reflects normalized level following in
Slide 25: Our cost structure under review
<< Our cost structure under review Operational cost structure FY 2022 Target to be achieved by FY 2025 + Scrutinize costs and expenses incurred in case of tenant turnover. * Review contracts with service providers + Improve processes and efficiency. + Reduce operating cost base by annualized €2-3 mi
Slide 26: Agenda
Agenda 1. Business Performance FY 2022 2. ESG Update 3. Financial Performance FY 2022 4. Guidance & mid-term financial targets 5. Appendix Portfolio details * Consolidated statement of income, financial position and cash flows + Funds from operations + EPRANAV& NTA * LTIV&ICR ° ESG * — Share data &
Slide 27: Guidance & mid-term financial targets
i“ Guidance & mid-term financial targets Guidance FY 2023 Financial targets for the period until 2025 Net Rental Income €121 - 123m (-f-L rental growth L-f-l rental growth ~4% Adj. EBITDA Margin +500bps vs. FY 2022! FFOI €21- 23m FFO | growth LTV Dividend Policy 50% of FFO | subject to conditions of
Slide 28: Key takeaways
Key takeaways Operationally and financially sound business with attractive growth prospects... ... trades at a historic high discount to EPRA NTA! 10% @ Scarce product with high & increasing demand oe Demand for affordable housing will continue to rise against a backdrop of . a growing population, h
Slide 29: Agenda
Agenda 1. Business Performance FY 2022 2. ESG Update 3. Financial Performance FY 2022 4. Guidance & mid-term financial targets 5.Appendix + — Portfolio details * Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR ESG Share data & financia
Slide 30: Appendix: Portfolio details
©peach PROPERTY GROUP Appendix Portfolio details
Slide 31: Portfolio structure as of December 31, 2022
& Portfolio structure as of December 31, 2022 estment properties €27m (1%, Total portfolio wa market value y aN : €2664m | PMV f 0) peach Market values determined by WuestParner AG as of December 3, 2022, excluding rightoF use assets
Slide 32: Portfolio fully focused on residential space
Portfolio fully focused on residential space Rental income by use category as of Dec 31, 2022 In % of total rentalincome Commercial 3O% Parking & other \ 3.3% Residential 93.2% Breakdown by federal state as of Dec 31, 2022 In % of target rental income 2.6% 4.0% 4.0% 65.0% = North Rhine-Westphalia =
Slide 33: € 1 8 12 20 13 11 14 5 15 16 1 17 16
19 6 € 10 1 17 2 3 13 4 4 5 2 6 12 7 18 3 8 7 14 9 15 10 7 11 8 12 20 13 11 14 5 15 16 1 17 16 18 19 20 9
Slide 34: Peach Points — our regional tenant shops
@& Peach Points — our regional tenant shops Central point of contact for rental and administrative matters @peach Recklinghausen Marl Gelsenkirchen Essen Oberhausen Erkrath. ; (\C 15 Peach P. Dortmund | & Il Ludwigshafen Basen Web Munster / FaBberg Helmstedt Witzenhausen Heidenheim Cornerstone of di
Slide 35: Peninsula Wadenswil - Cost completed accounting
«Pensinsula Wadenswil» - “Cost completed” accounting! Expected project timeline H1 2022 H2 2022 FY 2022 2023 FY 2023 FY 2024 2025 ® Planned handoverfof condominiums. Notarizations of purchase agreements Start of deconstruction work Construction Accounting treatment 3 10-155 Es Construction progress
Slide 36: Appendix: Consolidated statements
©peach PROPERTY GROUP Appendix Consolidated statement of income, financial position and cash flows
Slide 37: Consolidated statement of income
Consolidated statement of income Pagresin Fu hound Rentalincome Valuation gains from investment properties NET TOY Profit on cisposal of investment properties Income from development properties [2055 2) ‘Other operating income [208] aici 6 298) ‘peraing income /. Expenses from letting of investment
Slide 38: Consolidated statement of financial position
Consolidated statement of financial position 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 Equipment Intangible a
Slide 39: Consolidated statement of financial position (continued)
Consolidated statement of financial position (continued) Figures in EUR thousands GEE «Codec 31, 2021 Share capital = 597] 14510 J. Treasury shares - 455 Share premium = 429) 499544 Hybrid capital J 51556] =0 51556 J. Other reserves -3719 J. Currency translation changes -30 830 Retained earnings 446
Slide 40: Consolidated statement of cash flows
Consolidated statement of cash flows Figures in EUR thousands 2022 Result before taxes 19 967] Adjustments for non-cash expenses/income Depreciation and amortization 1907 Valuation result from investment properties 12 237 Net result on disposal of investment properties 146 Change in bad debt allowan
Slide 41: Consolidated statement of cash flows (continued)
Consolidated statement of cash flows (continued) Figures in EUR thousands 2021 Payments for real estate companies =1941] 7134595 Payments for equipment -1595 Payments for intanaible assets =1075 Investments in investment properties 75349 1 EE Proceeds from disposal of investment properties 7082 Fina
Slide 42: Appendix: Funds from operations
©peach PROPERTY GROUP Appendix Funds from operations
Slide 43: Funds from operations (FFO)
Funds from operations (FFO) Figures in EUR thousands EBIT Depreciation and amortization EBITDA /. Valuation result of investment properties ./. Net result on disposal of investment properties Share-based compensation Other non-cash accrued expense positions Adjusted EBITA /-Interest paid /. Interest
Slide 44: Appendix: EPRA NAV & NTA
©peach PROPERTY GROUP Appendix EPRA NAV & NTA
Slide 45: EPRA NRV & NTA
EPRA NRV & NTA Figures in EUR thousands Dec 31, 2022 EPRA NTA\ EPRA NRV Equity attributable to Peach Property Group AG ‘equity holders _/. Hybrid instruments Revaluation of development properties Diluted NAV at fair value 1015 858 |. Deferred tax in relation to fair value gains = 117 472] /. Fair va
Slide 46: Appendix: LTV and ICR
©peach PROPERTY GROUP Appendix LTV and ICR
Slide 47: 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 Other bank financings J. Cash and cash equivalents ./, Current fi
Slide 48: Appendix
©peach PROPERTY GROUP Appendix
Slide 49: 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
Slide 50: 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
Slide 51: Appendix: Share data
©peach PROPERTY GROUP Appendix Share data
Slide 52: Capital market development
<< Capital market development Credit ratings (Corporate Rating) Recent capital market transactions Jan 2023 Mandatory convertible bond 5% CHF 112.3million; conversion price CHF 30.00 sstablo Buybacks & par call to repay EUR 250 million EuroBond 2023, ‘aes aca “megatve? EUR 100 million revolving cred
Slide 53: Share data
<< Share data Significant shareholders! as of Dec 31, 2022 Information on the share 26.78% Dec 31, 2022 Dec 31, 2021 Share capital in CHF 16 882 373 Number of shares issued 16 882 373 47.36% Nominal value per share in CHF 1.00 Number of treasury shares T7AL 7.58% Number of outstanding shares 16 871
Slide 54: Appendix: Financial calendar
©peach PROPERTY GROUP Appendix Financial calendar
Slide 55: Financial calendar
Financial calendar Scheduled publications & events Upcoming road shows & participation in conferences! 24 May 2023 AGM 2023, Zurich Ee} 23 March 2023 BofA Real Estate CEO Conference (London) 23 August 2023 HY results 2023 24 March 2023 Kepler Chevreux Swiss Seminar (virtual) 28 March 2023 Roadshow W
Slide 56: 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
Slide 57: Investors, Analysts and Media
Investors, Analysts and Media Stefan Feller, Head of Investor Relations Dr. Thomas Wolfensberger, Chief Executive Officer Thorsten Arsan, Chief Financial Officer +41 44 485 50 18 investors@peachproperty.com