Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Merger or Acquisition (November 2019)
20 slides from Tag Immobilien's merger presentation, Nov 11, 2019
Slide 1: Unlocking incremental growth
Unlocking incremental growth TAG to enter the residential-for-rent market in Poland 11 November 2019
Slide 2: TAG executive summary
TAG executive summary 22 Acquisition of Vantage Development S.A. as nucleus for TAG in Polish residential-for-rent market Capitalizing on emerging Polish residential-for-rent market, characterized by attractive macro-economic fundamentals, comparable regional structure of the real estate market, l
Slide 3: TAG portfolio map
TAG portfolio map 33 The transaction will add a new region neighbouring to TAG’s existing portfolio, broader exposure to major Polish cities targeted in the mid-term Tri-City Rostock Hamburg Szczecin Warsaw Salzgitter Berlin Poznan Lodz Rhine-Ruhr Leipzig Wroclaw Erfurt Lower Silesia Dresden Gera Ch
Slide 4: TAG strategic rationale
TAG strategic rationale 44 Unlocking superior shareholder return potential by taking an initial step into the Polish residential-for-rent market Current cycle in German residential market suggests to capture innovative acquisition opportunities Evolution of TAG’s Focused geographic expansion int
Slide 5: TAG why Poland? And why now?
TAG why Poland? And why now? 55 Attractive macro and demographic fundamentals paving way for institutional letting market Robust macro-economic environment in Poland … Absolute market size (c. 38m inhabitants) coupled with attractive Macro-economic macro-economics and favorable demographic develop
Slide 6: TAG transaction scope
TAG transaction scope 66 Vantage Development: a leading residential development platform with strong track record Company Description Transaction structuring overview Tender offer for 100% shares Development platform with current secured pipeline of c. 5,300 units in the PLN 558.5m / EUR 130.7m Wr
Slide 7: TAG residential development platform in Poland
TAG residential development platform in Poland 77 Business strategy to address growing demand and rising significance of the residential-for-rent market Overview of residential development platform Vantage Development’s residential platform currently consists of a secured Key figures long term ren
Slide 8: TAG accretive acquisition
TAG accretive acquisition 88 Transaction accretive to TAG shareholders in the first year of consolidation Initial focus on cash flow from sales/FFO II due to current focus on Strong cash flow profile ongoing develop-to-sell activities Transaction accretive to TAG shareholders on FFO II per share
Slide 9: TAG transaction overview
TAG transaction overview 99 Tender offer for Vantage Development with simultaneous carve-out of commercial business to selling shareholders Transaction structuring and key financial terms Anticipated transaction timeline Tender Offer Tender offer for 100% of Vantage Development holding shares (inc
Slide 10: Appendix
10 10 APPENDIX TAG Immobilien AG | November 2019 | 10
Slide 11: Poland macroeconomic fundamentals
Poland macroeconomic fundamentals 11 11 Poland at a glance A medium-sized EU country Relevant characteristics 100 Poland is the EU’s 6th largest country in terms of population and its 7th 3 largest economy 80 During the 2008-2009 slowdown Poland was the only EU country to (k of people) 2 60 avoi
Slide 12: Poland macroeconomic fundamentals
Poland macroeconomic fundamentals 12 12 A booming economy Strong real GDP and real wage growth Summary 5,3% 8,0% Poland has constantly outpaced its European peers in terms of GDP 4,2% 4,2% 7,0% growth and has delivered an impressive real wage growth nearly 3.8% 5,0% 3,4% 3,4% 6,0% 2,5% 3,0% p.a. o
Slide 13: Poland's six largest cities
Poland’s six largest cities 13 13 Largest six polish residential real estate markets 1 4 Tri-City Warsaw Population 749 k Population 1,778 k Population growth since 2010 0.9% Population growth since 2010 4.6% Unemployment rate 2.3% Unemployment rate 1.4% Average monthly wage (PLN) 5,028 1 Average mo
Slide 14: Poland's six largest cities
Poland’s six largest cities 14 14 Key facts Warsaw Krakow Wroclaw Tri-City Poznan Lodz Population 1,777,972 771,069 640,648 748,986 536,438 685,285 City size (sq km) 517 327 293 414 262 293 Unemployment rate 1.4% 2.3% 1.7% 2.3% 1.2% 5.2% Average monthly salary 6,470 5,689 5,397 5,028 5,757 4,705 Dwe
Slide 15: Poland's six largest cities
Poland’s six largest cities 15 15 Key facts Rent growth index (Q1 2014 – 100) 170 160 +60% 150 +34% 140 +32% 130 +30% 120 +29% 110 +27% 100 90 80 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19
Slide 16: Poland's residential market
Poland’s residential market 16 16 Key facts on the local primary market (1/2) Average price of units per sqm Key takeaways 11 Supported by positive macroeconomic fundamentals and structural 10 Tri-City (+53%) demand overhang, average price per sqm for new residential housing has risen strongly acr
Slide 17: Poland's residential market
Poland’s residential market 17 17 Key facts on the local primary market (2/2) Units launched for sale and sold Key takeaways In response to the rising demand for residential housing, number of 20 units sold in the Polish Top-6 markets has grown significantly over (residential units in k) the last
Slide 18: Wroclaw macro fundamentals
Wroclaw macro fundamentals 18 18 One of the fastest growing cities in Poland Unemployment rate and average monthly gross salary Key takeaways 6 10% Over last years, Wroclaw has registered a considerable growth in the number of residents partially owing to domestic and international migration 5 8%
Slide 19: Wroclaw residential market
Wroclaw residential market 19 19 Overview and key indicators of the local housing market Wroclaw dwellings started and completed since 2010 Key takeaways 12 Wroclaw’s economic success, coupled with increasing inhabitants and strong labour market, has translated into booming residential market. 10
Slide 20: TAG contacts
TAG contacts 20 20 Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-0 Phone: +49 40 380 32-305 20457 Hamburg Fax: +49 40 380 32-388 Fax: +49 40 380 32-388 Phone: +49 40 380 32-0 Fax: +49 40 380 32-388 ir@tag-ag.com ir@tag-ag.com
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