Peach Property Group Ag · SIX:PEAN

Peach Property — Quirin Champions Conference 2022

48 slides from Peach Property's conference presentation, Jun 2, 2022

  1. Slide 1: Investor Presentation – Quirin Champions Conference

    Investor Presentation Quirin Champions Conference June 2, 2022 ©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. Peach Property at a glance 2. Current market environment 3. Portfolio & Operational Performance FY 2021 4. Financial Performance FY 2021 5. Guidance FY 2022 6. Appendix + Details guidance FY 2022 * ESG * Share data & financial calendar

  4. Slide 4: Peach Property Group at a glance

    Peach Property Group ata glance A Strategy & Core portfolios C4 Key financials + Active real estate investor within the attractive German residential market, with a clear focus on secondary ("B’) cities. + Low risk: >90% of rental income from residential properties. * Established management structur

  5. Slide 5: Agenda

    Agenda 1. Peach Property at a glance 2.Current market environment 3. Portfolio & Operational Performance FY 2021 4. Financial Performance FY 2021 5. Guidance FY 2022 6. Appendix * — Portfolio details * ESG * Share data & financial calendar

  6. Slide 6: Inflation is reality but what is the impact?

    Inflation is reality but what is the impact? Rent growth Operating expenses Peach's mid-term planning base assumptions Assumed impact of persistent inflation Min, 3.5% annual -f-l rental growth. Inflation and cost pressure will also lift market rents. in relation to rental income based ‘on further e

  7. Slide 7: DE: largest housing market in Europe with a strong and healthy tenant culture

    DE: largest housing market in Europe with a strong and healthy tenant culture Largest housing markets in Europe. with a strong rental culture. Distribution of population between owner occupiers and tenants? Eso Total population per county mi Total households! Csi CEE es4 =A co 100% 78% 423 50x 303 2

  8. Slide 8: Structural undersupply cannot be addressed by new construction

    Structural undersupply cannot be addressed by new construction German market requires 400k new Construction costs per sqm well above House prices and construction costs apartments every year Peach’'s current asset valuation level? strongly correlated (index; 2015 = 100) ECD House Price Index Germany

  9. Slide 9: Peach locations with healthy rent levels and attractive valuations

    Peach locations with healthy rent levels and attractive valuations Rent levels in German cities and Peach locations significantly more affordable in the European context Average monthly rent EUR/sqm* 286 26.07 2472 2133 192 168 167 1331318 13.09 1247 a> 101 gs [| [ [ [ | i in Paris London Oslo. Zuri

  10. Slide 10: Attractive potential for further rent growth

    Attractive potential for further rent growth Figures in EUR / sqm +4% +4.8% I 6.47 6.46 | 75 18% potential Benchmark for new lettings in 2022 @ in-place rent Dec 31, 2020 @ market rent 2021" New letting @ in-place rent rents 2021 Dec 31, 2021 @ market rent 2022 + Weare able to lock-in market rents w

  11. Slide 11: Cold rent index German CPI

    Cold rent index German CPI • • •

  12. Slide 12: There are precedents for rising property prices in periods of rising interest rates

    % UI PIalK pUog yUaLUWAAES AQT Ue 12 10 Cy © + a ° y ozoz e102 gt0z £102 glue stoz ¥t0z st0z z10z Tr0z otoz 6002 8002 2002 9002 s00z +002 £002 zo0z To02 0002 666T 866T L661 966T seer ve6T S66r 266r T66T eet 696T 886r 4861 oger sg6r +85T seer zg61 T86T oget 6L6T acer LL6t 9L6T Let Ler SL6T 2/60 eet O

  13. Slide 13: Agenda

    Agenda 1. Peach Property Group at a glance 2.Portfolio & Operational Performance FY 2021 3. Financial Performance FY 2021 4. Guidance FY 2022 5. Appendix * — Portfolio details * ESG * Share data & financial calendar ©peach 13

  14. Slide 14: Overview investment properties

    Overview investment properties Number of residential units Actual rental income Market value! Gross rental return 2 039 007 2 633 670 Residential floor space in sqm Target rental income Vacancy 5.0% 4.8% Net rental / cash flow return 7.9% 1436 857 112 271 1842 units 1705 227 138 086 8.0% 2 190 units

  15. Slide 15: Portfolio structure as of Dec 31, 2021

    Portfolio structure as of Dec 31, 2021 Investment properties DE = CHF 2 608.3mm (97%) Total portfolio market value CHF 2 687mm Investment properties oo Development properties CH CHF 25.4mm CHF 53.3mm (1%) (2%) © peach atte ntalles dese ined by Wert pened Geter Derenbersil coc er acea nine iste

  16. Slide 16: Strong track-record in growing portfolio

    Strong track-record in growing portfolio 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 in ie = Acquisition Acauisition of H 4 Acquisition ot WE acquisition of BB Acquisition of MW acquisition of Acsuston ia. F Acquisitions ‘Acquisition of # — Acquisition of residential two portfolios twobui

  17. Slide 17: Typical properties in Peach's portfolio

    Typical properties in 1 XGevelel Ss portfolio >peach 17

  18. Slide 18: 360-degree tenant service model

    360-degree tenant service model Web portal Email Telephone Peach Point . B Property Management in Peach 1an2 — SX (BE) i] + All tenant interaction in unified ticketing system + 284 tickets per month per 1 000 apartments in 24/7 mutli-channel access 2021 (155 tickets in 2020) + 91.4% “one touch”: que

  19. Slide 19: Peach Points: Client service excellence delivered through regional tenant stores

    Peach Points: Client service excellence delivered through regional tenant stores Wy ee > Kiel * Stralsund LB Schleswig-Holstein Hamburg Mecklenburg-Vorpommem * prememavélamburg’ Schwerin = Emden * Lineburg eal =@ Bertin “Berlin Dortmund Qe eniat Frankfurt (Oder) Erkrath eee rAnhalBrandenburg Essen a

  20. Slide 20: Capex development

    Capex development CAPEX in CHF + ~ 2000 apartments renovated in 2021. 33.80/sqm * Increase of capex to ~CHF 70mm in 28.30/sqm 2022 planned; mainly driven by step-up of (energetic) renovation program and to some extent by increased construction 24.10mm costs 20.21mm * Renovation of 2 500 — 3 000 apar

  21. Slide 21: Vacancy driven by renovation measures

    Vacancy driven by renovation measures Development of vacant residential units and vacancy ratio 2190 1842 1158 8.0% 2019 2020 2021 + Overall vacancy ratio flat year-over-year; mainly driven by a slightly higher fluctuation on units acquired in 2020. + OnalL-f-l basis (without units acquired in 2021

  22. Slide 22: Remaining development project in Switzerland, Wädenswil on Lake Zurich

    Remaining development project in Switzerland, Wadenswil on Lake Zurich Development project with 56 condominiums in 4 buildings, combination of redevelopment and new construction; investment properties with 29 rental units and 5 600 sqm commercial space The project has been legally approved as of Feb

  23. Slide 23: Sustainability in practice on all levels

    Sustainability in practice on all levels Our sustainable goals Our KPIs* 9 UN SDGs? as particular relevant for our business ENVIRONMENT CO, emissions: 34.5 kg/mes | Total energy intensity. 15.4 kWh/me Reduction of carbon footprint through responsible real estate Waste recycling rate: 33% management

  24. Slide 24: Peach's ESG Roadmap

    Peach's ESG Roadmap Establishment of an ESG Implementation of Bundling of electricity and | Smart metering: digitization ff] data management and Sgtetaatonee decarbonization tool gas contracts of consumption recording sustainability reporting SuMaNEE WOOTEN to define a system electricity decarboniza

  25. Slide 25: Peach's decarbonization path

    Peach's decarbonization path 40 35 30 25 20 15 Carbon intensity in kg CO,e/m2a (Scope 182) 10 ©peach 7. Estimated effect of inclusion of al properties acquired in 2021; process currently ongoing 2020 2030 Committed to climate neutrality of our real estate portfolio latest by 2050. Intermediate goal:

  26. Slide 26: Our strategy to reach our CO2 targets

    Our strategy to reach our CO, targets Focus on energy consumption from heating.. euanid asse cow Iti Wealcelterd yetticie nc yy * Our refurbishment-focus is on energy classes G and H, where we can achieve the biggest impact on the carbon footprint of our portfolio. + The EU directive requires all bu

  27. Slide 27: Agenda

    Agenda 1. Peach Property Group at a glance 2. Portfolio & Operational Performance FY 2021 3.Financial Performance FY 2021 4. Guidance FY 2022 5. Appendix * — Portfolio details * ESG * Share data & financial calendar 27

  28. Slide 28: Strong financial performance in 2021

    Strong financial performance in 2021 Operating Income (CHFmm) Net rental income (CHFmm) Adjusted EBITDA (CHFmm) Result after tax (CHFmm) 160 734 38 915 17 042 91004 2020 213 584 2020 54748 2020 25742 @ 2020 127 282 EERE 397 838 2021 108 601 2021 56 256 2021 201 198 FFO I (CHFmm) Equity ratio (IFRS)

  29. Slide 29: Balanced financing structure

    Balanced financing structure Debt structure as of December 31, 2021 First refinancing measurements implemented in Qi 2022; resulting in~20bps WACD improvement. EUR 100mm RCF closed. ™ Bank loans (secured) 600 558 ‘All debt maturing Reduction Bank loans (unsecured) 00) ee eaes foto ayes = Corporate b

  30. Slide 30: Financial policy geared to reach investment grade

    Financial policy geared to reach investment grade Peach Financial Policy Maintain a well-balanced maturity profile, with a mix of secured & unsecured funding Lower weighted average cost of debt to < 2% in the medium term Maximum LTV of 50% in the medium term Achieve an investment grade instrument ra

  31. Slide 31: Credit rating upgrades in 2021; share price currently with attractive discount to NTA

    Credit rating upgrades in 2021; share price currently with attractive discount to NTA Credit ratings (Instrument Rating) Recent capital market transaction IG area ~2% EUR 55 million promissory note (German SSD); maturity 3 years + BB Ba2 Mandatory convertible bond 2.5% CHF 180 million; conversion pr

  32. Slide 32: Agenda

    Agenda 1. Highlights FY 2021 2. Portfolio & Operational Performance 3. Financial Performance 4 Guidance FY 2022 5. Appendix * — Portfolio details * ESG * Share data & financial calendar

  33. Slide 33: Guidance FY 2022

    [7 Guidance FY 2022 Net Rental Income ale 122 — om \-f-l rental growth FFO | CHF 18 - 21mm LTV 50% (mid-term target) Dividend 50% of FFO | >> As of today: on track to reach guidance 2022 @peach 35

  34. Slide 34: Why invest in Peach Property Group?

    Why invest in Peach Property Group? A Experienced team with a proven transaction track record Germany: attractive real estate market with very good perspectives & Successful investment strategy Long term growth and value orientation Sound equity basis & inflation hedge Attractive investment case >CH

  35. Slide 35: Agenda

    Agenda 1. Highlights FY 2021 2. Portfolio Operational Performance 3. Financial Performance 4. Guidance 5. Appendix * — Portfolio details ° ESG * — Share data & financial calendar

  36. Slide 36: Appendix – Portfolio details

    ©peach PROPERTY GROUP Appendix Portfolio details

  37. Slide 37: Structured acquisition process that results in strategically sound acquisitions

    Structured acquisition process that results in strategically sound acquisitions N CL v Almost exclusively focussed @® Sourcini on off-market transactions . a based on strong network in Germany ” Swift execution Impeccable v Valued partner respecting reputation confidentiality around deal terms v Hea

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

  39. Slide 39: Opex development

    Opex development Opexin CHF mm Maintenance / sqm = Admin / sqm =Total Opex '8.76/sqm 5.93/sqm 5.04/sqm 2019 2020 2021 314 party administration Increase of mainly due to cost incurred with respect to the portfolio acquired 2021, as well as higher Costs in connection with in integration, and the 2020

  40. Slide 40: Attractive rental yield despite valuation gains

    Attractive rental yield despite valuation gains ™ Operational progress & discount rate mlnitial valuation "Total revaluation gain as % of investment properties CHF 288.3mm (10.8%) Key valuation indicators as of Dec 31, 2021 Gross rental yield 4.8% Average value per sqm EUR 1 424 Rent multiple EUR 20

  41. Slide 41: Appendix

    ©peach PROPERTY GROUP Appendix

  42. Slide 42: ESG: Peach's decarbonization tool

    ESG: Peach's decarbonization tool Analyse impact of various heating technologies on CO2- intensity. Analyse different paths to climate- neutral portfolio and its impact on costs and investments ausgewahltes Szenanio ‘Anteil Flache | Flache (m®) 100,0 % 1,5 Mio. Wohneinh. | Gewerbeeinh, 18.917 14 C02

  43. Slide 43: Appendix – Share data

    ©peach PROPERTY GROUP Appendix Share data

  44. Slide 44: Share data

    Share data Signifanct shareholder as of Dec 31, 2021 Information on the share Dec 31, 2021 Dec 31, 2020 y 26.13% Share capital in CHF 12 494751 Number of shares issued 12 494751 Nominal value per share in CHF 1.00 Number of treasury shares 5 682 50.79% Number of outstanding shares 12 489 069 7.56% K

  45. Slide 45: Appendix – Financial calendar

    ©peach PROPERTY GROUP Appendix Financial calendar

  46. Slide 46: Financial calendar

    Financial calendar | 30 August — Publication of half-year results 2022 | Q4 (date tbc) — Capital Markets day 2022 ©peach 46

  47. Slide 47: 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

  48. Slide 48: Investor Relations and Media contacts

    _|h 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 Investors, Analysts "

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