Patrizia Se · XETR:PAT
Patrizia — 3M 2020 Earnings Presentation
22 slides from Patrizia's earnings presentation, May 14, 2020
Slide 1: Results Presentation 3M 2020
FOR CLIENTS AND SHAREHOLDERS Results Presentation 3M 2020| 14 May 2020 PATRIZIA | © 2020
Slide 2: Covid-19 Update: Stronger for clients and shareholders
Covid-19 Update Stronger for clients and shareholders Resilient business model with upside through structural growth opportunities 1 2 3 Stable and Rock-solid Long-term reliable partner financial structural position growth market PATRIZIA closely Continued Lower for even works with all generation of
Slide 3: 1. Stable and reliable partner - Covid-19 Update
Covid-19 Update 1. Stable and reliable partner - Covid-19 Update PATRIZIA works closely with all stakeholders to help them manage through the crisis Economy Asset classes Geographies Macro view - U-shaped recovery - Residential as safe haven - Resilient demand for expected at different - Food-anchor
Slide 4: 2. Solid financial position
Covid-19 Update 2. Solid financial position Rock-solid balance sheet and strong cash position make PATRIZIA well prepared for the crisis • Strong balance sheet ratios and capital structure to facilitate further profitable growth • Dividend payment of EUR 0.29 for FY 2019 reaffirmed, payment in July
Slide 5: 3. Long-term structural growth market
Covid-19 Update 3. Long-term structural growth market Despite short-term uncertainties, structural growth of real estate investment management could accelerate Demographic change Our clients’ capital is Aging population threatens conventional pension growing systems Lower for longer Increasing alloc
Slide 6: Financials & Guidance
Financials & Guidance 3M 2020 PATRIZIA | © 2020 6
Slide 7: Highlights
Financials 3M 2020 Highlights Solid start into 2020 – increased AUM and management fees; updated guidance now reflects Covid-19 uncertainties Assets under management2 | EUR bn 3M 2020 • Operating income of EUR 24.7m up 2.9%1 compared to 3M 2019 +2.0% 46.5 – 48.0 44.5 45.3 • Assets under management
Slide 8: Operating income
Financials 3M 2020 Operating income Solid 3M 2020 with total service fee income up 13.1% y-o-y Highlights Composition 3M 2020 | EUR m • Total service fee income up 13.1% to EUR 80.4m (3M 2019: EUR 71.1m) due to: • Management fees with 3.6% growth due to +24.1% +14.2% larger AUM base • Transactio
Slide 9: Management fees
Financials 3M 2020 Management fees Well diversified AUM-base and predictable management fees • Management fees up 3.6% to EUR 48.1m due to growth in assets under management 7% • Recurring management fees contributed 60.0% to 4% total service fee income 11% 34% • Diversified and long-term oriented AU
Slide 10: Selective transactions since Covid-19 outbreak
Financials 3M 2020 Selective transactions since Covid-19 outbreak PATRIZIA is still active for clients despite the current market environment PATRIZIA | © 2020 10
Slide 11: Transaction fees
Financials 3M 2020 Transaction fees PATRIZIA had a good start into the year and is still active for clients in the current situation Highlights Transaction volume (signed/closed) | EUR bn • Ongoing transaction activity for our clients in the beginning of the year drove transaction fees to EUR 15.0m
Slide 12: Performance fees
Financials 3M 2020 Performance fees Superior returns for clients translate into attractive performance fees Performance fees | EUR m Performance fee pool1 | EUR m Dawonia² 80.0 – 110.0 347.2 (~EUR 60.0m p.a.) Total: EUR 789.1m ~EUR 70.0m p.a. on average (excl. potential -7.0% 441.9 441.9 18.7 17.4
Slide 13: Guidance 2020e
Financials 3M 2020 Guidance 2020e Guidance for 2020e implies further improved earnings profile Updated Assumptions 2020e Income composition FY 2020e | EUR m • Operating income guidance for FY 2020 broadened to EUR 100.0m to 140.0m to reflect uncertain Covid-19 impact on European real estate investme
Slide 14: Appendix
Appendix PATRIZIA | © 2020 14
Slide 15: Capital allocation
Appendix Capital allocation Assets under Invested capital Invested capital Participations As at 31.03.2020 management (fair value) (at cost) EUR m EUR m EUR m in % Third-party business 38,906.8 0.0 Co-Investments 6,395.4 489.2 103.7 Residential 5,590.2 469.8 86.4 Dawonia GmbH 4,649.0 152.01 51.7 5.1
Slide 16: Reconciliation of operating income
Appendix Reconciliation of operating income EUR k 3M 2020 3M 2019 Change EBITDA 29,625 26,067 13.6% Amortisation of other intangible assets¹, software and rights of use, depreciation of property, plant and equipment -8,787 -11,586 -24.2% EBIT 20,837 14,481 43.9% Finance income/expenses -1,113 -1,036
Slide 17: Consolidated income statement
Appendix Consolidated income statement EUR k 3M 2020 3M 2019 Change % Revenues 66,586 57,742 15,3% Income from the sale of investment property 0 231 -100,0% Changes in inventories -1,545 -5,047 -69,4% Other operating income 2,057 1,919 7,2% Total operating performance 67,099 54,845 22,3% Cost of mat
Slide 18: Consolidated balance sheet | Assets
Appendix Consolidated balance sheet | Assets EUR k 31.03.2020 31.12.2019 A. Non-current assets Goodwill 207,853 210,292 Other intangible assets 125,727 131,895 Software 11,157 10,326 Rights of use 24,107 24,988 Investment property 1,835 1,835 Equipment 5,810 6,056 Associated companies accounted for
Slide 19: Consolidated balance sheet | Equity and liabilities
Appendix Consolidated balance sheet | Equity and liabilities EUR k 31.03.2020 31.12.2019 A. Equity Share capital 90,635 91,060 Capital reserves 147,561 155,222 Retained earnings Legal reserves 505 505 Currency translation difference -12,384 -4,818 Remeasurements of defined benefit plans according to
Slide 20: Profitability and costs
Appendix Profitability and costs Continued efficiency improvements propel profitability and cost ratios AUM vs total cost ratio | EUR bn vs % EBITDAR margin (+/- principal investments) | EUR m, LHS vs %1 50 46.5 – 48.0 1% 180 50.0% 45 1.21% 38.7% 45.3 1% 160 45.0% 44.5 42.9% 40 34.8% 41.0 140 23.8%
Slide 21: Financial calendar
Appendix Financial calendar 2020 July 1 ➢ Annual General Meeting 2020 (virtual AGM) August 6 ➢ Interim Report for the first half of 2020 November 12 ➢ Quarterly Statement for the first nine months of 2020 Invitations and dial-in numbers are provided in advance. For further information, please visit:
Slide 22: Contact
Appendix Contact KARIM BOHN MARTIN PRAUM Member of the Senior Managing Director Management Board | CFO Head of Investor Relations PATRIZIA AG T +49 821 50910-402 Fuggerstrasse 26 F +49 821 50910-399 86150 Augsburg M +49 151 19685445 Germany investor.relations@patrizia.ag LAURA WALZ MAXIMILIAN GERBER