Patrizia Se · XETR:PAT
Patrizia — Investor Presentation (August 2023)
59 slides from Patrizia's investor presentation, Aug 10, 2023
Slide 1: Company Presentation June 2023
Company Presentation June 2023 PATRIZIA | © 2023
Slide 2: H1 2023 Financial Results CFO video presentation
PATRIZIA PATRIZIA SE | H1 2023 Financial Results | CFO video presentation Access via weblink: bit.ly/PATH12023 Access via QR code: PATRIZIA | © 2023 2
Slide 3: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 3
Slide 4: PATRIZIA is a leading partner for global real assets
At a glance PATRIZIA is a leading partner for global real assets Platform Funds Financials Total service fee income (EUR): 39 57bn 325m years of real asset experience Assets under management (EUR) FY 2022 Top 2 EBITDA (EUR): fully independent 5% 79m investment manager for real estate in Europe1 fund
Slide 5: PATRIZIA evolved from a German real estate to a global real asset investment manager
At a glance PATRIZIA evolved from a German real estate to a global real asset investment manager 59.1bn 2022 PATRIZIA | A leading manager for global real assets adopts SE structure for sustainable future growth AUM 2022 Whitehelm Capital, Advantage | Acquisition of infrastructure and multi manager 4
Slide 6: Recent developments boost transformation to global real asset investment manager
At a glance Recent developments boost transformation to global real asset investment manager M&A | Copenhagen Product | Tokyo Product | Amsterdam PATRIZIA acquires the multi-manager PATRIZIA secures a PATRIZIA launches Sustainable Advantage Investment Partners to EUR 1bn mandate from Communities, an
Slide 7: Growth areas to become the leading global real asset investment manager
At a glance Growth areas to become the leading global real asset investment manager Establishment of broad and globally diversified client base Our Vision: Acquiring and deepening global client relationships with institutional investors, semi-professional investors, high-net-worth individuals (HNWI)
Slide 8: Global reach combined with local expertise and local client relationships
At a glance Global reach combined with local expertise and local client relationships 28 PATRIZIA offices globally > 500 to service clients & manage real assets locally institutional clients > 40 boutique operating partners > 7,000 private clients worldwide > 30 different nationalities working at >
Slide 9: One-stop shop for a broad variety of clients' investment needs
At a glance One-stop shop for a broad variety of clients’ investment needs 45% 42% 10% 2% 1% Market-leading Bespoke Single asset/portfolio Global Partner Multi strategy real assets funds account solutions deal opportunities solutions solutions • Open-/closed-ended • Individual, nimble strategies • S
Slide 10: PATRIZIA offers full services across the value chain
At a glance PATRIZIA offers full services across the value chain Investment Investment Strategy Fund Management Transactions Asset Development Solutions & Research (i.a. Portfolio management, (Sourcing, Acq., Sales) Management Management Reporting) Capital Client Fund Services Debt SMART Sustainabil
Slide 11: Sample investments
At a glance Real estate and infrastructure investments offer various opportunities for global clients Sample investments Energy Storage, Infrastructure Equity, GER Logistics, Real Estate, FRA Retail, Real Estate, DEN Transportation infrastructure operator, Debt Financing, INTL Office Building, Real
Slide 12: PATRIZIA SE is managed by an international and diverse leadership team
At a glance PATRIZIA SE is managed by an international and diverse leadership team BOARD OF DIRECTORS + International, diverse, experienced & tech-savvy Board of Directors Uwe H. Wolfgang Jonathan Axel Marie Saba Philippe Reuter (Chair) Egger Feuer Hefer Lalleman Nazar Vimard Audit Committee Nominat
Slide 13: PATRIZIA ranks as 2nd largest independent real estate investment manager in Europe
At a glance PATRIZIA ranks as 2nd largest independent real estate investment manager in Europe IREI Ranking 2012 to 2022 Top 10 Managers based on European real assets (EUR m), 2021 Swiss Life Asset Managers 1 insurance group subsidiary 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 AXA IM
Slide 14: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 14
Slide 15: Our Equity Story lines out our uniqueness as a real asset expert
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market We are active in alternatives, a stable and structurally growing asset class, with a long-term investment horizon and favorable cash profiles Giving Back to Society Increased Diversification PATRIZ
Slide 16: Long-term dynamics support demand for real asset investments
Equity Story Long-term dynamics support demand for real asset investments Intense pension reform efforts around the globe following increased life Structural growth market expectancy drives demand for funded pension programs managed by the private sector - pension funds are PATRIZIA's largest client
Slide 17: Real Assets offer long-term value and growth opportunities
Equity Story Real Assets offer long-term value and growth opportunities • Changing amenities regarding living, working and purchasing creates a continuous demand for future-proof real estate REAL ESTATE • Significant value opportunities through active asset management • Relatively new asset class wh
Slide 18: Multi-trillion USD infrastructure gap offers significant AUM growth opportunities
Equity Story Multi-trillion USD infrastructure gap offers significant AUM growth opportunities Annual average infrastructure need (2017-2035) | in USD trillion 0.5 0.5 1.1 3.7 0.1 0.1 0.4 0.9 Roads Rail Ports Airports Power Water Telecom Total Source: McKinsey Global Institute PATRIZIA | © 2023 18
Slide 19: Our Equity Story: Increased Diversification
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification Our continuously increasing product PATRIZIA portfolio covers various asset classes and regions, stabilizing income by diversification Financial Fle
Slide 20: High quality assets and broad diversification are key for stable AUM development
Equity Story High quality assets and broad diversification are key for stable AUM development EUR 57.9 assets under bn sqm 17.2 m real estate assets 81 % resilient Core and Core management under management plus strategies 3%3%2% 6% 3%4% 19% 2% 15% 28% 4% 5% AUM by AUM by AUM by 7% geography 53% sect
Slide 21: Long-duration AUM and broad client base support predictable management fees
Equity Story Long-duration AUM and broad client base support predictable management fees Maturity breakdown of AUM1 Equity commitments by clients2 75% 61% 2% 5% 10% 47% 32% 22% 83% 8% >10 years/unlimited 5–10 years Top 1 Top 5 Top 10 Top 25 Top 50 Top 100 2–5 years <2 years Client Clients Clients Cl
Slide 22: Experts on the ground understanding local requirements serve global client base
Equity Story Experts on the ground understanding local requirements serve global client base 25% Pension funds 2% 500+ 47% Banking institutions Insurance companies Institutional Corporates, endowments clients 17% Other1 9% 23% DACH & CEE 30+ 58% UK & Ireland Rest of Europe 14% geographies APAC/Ameri
Slide 23: Our Equity Story: Future Proof
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Financial Flexibility Future Proof We offer investment solutions in line with megatrends like Demographics, Digital- Asset Expertise lisati
Slide 24: PATRIZIA's products provide attractive investment solutions in line with megatrends
Equity Story PATRIZIA’s products provide attractive investment solutions in line with megatrends Demographics Digitalisation Urbanisation Decarbonisation By 2050, 70% of the global Demographic change creates needs Data consumption is growing Decarbonisation as global population is expected to live i
Slide 25: Infrastructure investments offer solutions for today's challenges
Equity Story Infrastructure investments offer solutions for today’s challenges Thematic: Thematic: • Climate change impacts water scarcity and need for circular economy • Decarbonisation Decarbonisation Opportunities: and Energy Opportunities: • Smart metering Transition • Energy-from-waste and biog
Slide 26: ESG incorporation improves every step of the investment process
Equity Story ESG incorporation improves every step of the investment process Exit/Sales Development & • Continuous hold/sell Refurbishment analysis • ESG DD checklist Asset • Climate change risk • Sustainable and Management innovative building design Sourcing & • Asset ESG performance • Carbon neutr
Slide 27: Our Equity Story: Asset Expertise
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Our combination of local people on the ground, strong and innovative in-house Financial Flexibility research and experience throughout Futu
Slide 28: European roots serve as a basis for a continuously growing global presence
Equity Story European roots serve as a basis for a continuously growing global presence 22% 37% Fund Management & Operations Asset & Development Management 7% 1000+ Transactions & Alternative Investments IT, Digitalisation, TechLab FTE 8% Global Client Solutions & Research Corporate & Other 6% 20% 6
Slide 29: PATRIZIA funds outperformed unlisted European real estate benchmark consistently
Equity Story PATRIZIA funds outperformed unlisted European real estate benchmark consistently PATRIZIA fund performance vs. INREV Index performance1 7.7% 7.2% 1.5% ⚫ PATRIZIA fund performance ⚫ INREV Index (average) outperformance 5.9% 2.1% outperformance 6.2% 2.2% outperformance 5.1% 3.1% 3.7% 5% o
Slide 30: Retail investor business shows strong footprint and further growth opportunities
Equity Story Retail investor business shows strong footprint and further growth opportunities Investment volume | EUR m1 • Investment volume exceeds 1.7 billion Euros 1,750 1,500 • More than 10,000 tickets signed Facts 1,250 • Average cash distribution for the financial years 1,000 2016 to 2022 is 4
Slide 31: Our Equity Story: Financial Flexibility
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Financial Flexibility Future Proof Our Balance Sheet is net cash positive with a high net equity ratio, enabling strategic M&A, organic gro
Slide 32: AUM growth translates into growing and recurring management fees
Equity Story AUM growth translates into growing and recurring management fees 57.0 - 59.1 62.0 60 50 47.0 48.6 +21.1 % p.a. 44.5 300 Management fee 41.0 40 growth 2012 – 2022 241.0 30 209.1 190.9 193.4 21.9 175.3 150 20 18.6 16.6 11.8 14.6 93.2 +21.6 % p.a. 10 6.9 81.5 89.1 68.1 AUM growth 50.1 35.6
Slide 33: Growth trend of fees temporarily impacted by subdued market environment
Equity Story Growth trend of fees temporarily impacted by subdued market environment Total service fee income | EUR m Market Covid-19 years shifts 348.0 346.4 320.2 327.6 324.7 100% 268.6 91.8 85.9 61.2 19% 92.5 86.1 22.5 7% 211.9 51.4 188.6 65.3 48.1 52.4 140.0 29.2 66.9 25.0 75% 19.7 70.3 51.8 58.
Slide 34: Growth of recurring fees contributed to revenue stability in tough market environment
Equity Story Growth of recurring fees contributed to revenue stability in tough market environment Management fees | EUR m Transaction fees | EUR m Performance fees | EUR m Performance fees | EUR m 116.4 120.6 33.8 +3.6% 11.4 - 19.9% 27.1 2.3 - 64.1% 4.1 9.1 1.5 2.6 H1 2022 H1 2023 H1 2022 H1
Slide 35: Increase in net operating expenses explained by relieving effect of Silver Swan
Equity Story Increase in net operating expenses explained by relieving effect of “Silver Swan” in H1 22 Net operating expenses| EUR m • Net operating expenses up 10.2% y-o-y to EUR 126.3m -8.2% -66.3% +10.2% -6.4 • Profitable deconsolidation of temporarily consolidated 38.4 project develop
Slide 36: EBITDA in line with our expectations, but not yet reflective of our intrinsic potential
Equity Story EBITDA in line with our expectations, but clearly not yet reflective of our intrinsic potential Composition of EBITDA | EUR m • EBITDA down -48.0% y-o-y to EUR 28.4m -19.9% -60.8% +10.2% 2.9 • Market driven decrease in total service fee income and -64.1% 27.1 +3.6% increase in
Slide 37: Guidance adjustment due to persistent subdued market environment
Equity Story Guidance adjustment due to persistent subdued market environment Updated Previous • Only moderate increase in client investment FY H1 H1 2022 Guidance Guidance activity expected in H2 2023 2022 2023 FY 2023e FY 2023e • AUM guidance impacted by subdued market AUM activity (lower organic
Slide 38: Strong balance sheet preserves the ability to make strategic moves
Equity Story Strong balance sheet preserves the ability to make strategic moves Strong balance sheet Significant liquidity • Net cash and available liquidity down EUR m 30.06.2023 EUR m 30.06.2023 due to co-investments, dividend Total assets 1,989.1 Bank balances, 356.8 payment and temporary consoli
Slide 39: Co-Investments boost products, intensify client relationships and exploit opportunities
Equity Story Co-Investments boost products, intensify client relationships and exploit opportunities Third-party business| EUR bn PATRIZIA SE Balance Sheet| EUR m Cash and cash equivalents 306 9.8 Equity 1,270 AUM Co-Investments1 260 ….57.9 ∑ 48.2 Dawonia profit entitlements1 340 Liabilities 719 Oth
Slide 40: Dawonia as PATRIZIA's largest co-investment continues to contribute to performance
Equity Story Dawonia as PATRIZIA’s largest co-investment continues to contribute to performance • Dawonia is one of the largest housing companies in Munich and southern Germany with around 27,000 flats • Around 80% of the housing stock is concentrated in the 20 largest locations in southern Germany
Slide 41: Our Equity Story: Giving Back to Society
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification We contribute to the enhancement of society by distributing up to 1% of the EBITDA to charitable organisations like the PATRIZIA Foundation PATRIZIA
Slide 42: We are proud to make a positive impact by donating up to 1% of EBITDA
Equity Story We are proud to make a positive impact by donating up to 1% of EBITDA Our Mission The „S“ of ESG Our mission is to help establish education, care and health The PATRIZIA Foundation is facilities worldwide. By partnering with local professionals your reliable partner if you, and supporti
Slide 43: Our Equity Story lines out our uniqueness as a real asset expert
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market We are active in alternatives, a stable and structurally growing asset class, with a long-term investment horizon and favorable cash profiles Giving Back to Society Increased Diversification We con
Slide 44: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 44
Slide 45: Ambitious but achievable long-term sustainability goals being continuously set into practice
ESG activities Ambitious but achievable long-term sustainability goals being continuously set into practice PATRIZIA Sustainability Goals 1 2 3 4 Become a leading sustainable investor with a Achieve net zero carbon status across our Become a leading global impact investor in the Real Be an employer
Slide 46: Principles and sustainability frameworks direct us in our daily business
ESG activities Principles and sustainability frameworks direct us in our daily business Our contribution to the Our global ESG Ecosystem Sustainable Development Goals Public Engagement Memberships PATRIZIA | © 2023 46
Slide 47: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 47
Slide 48: Stable shareholder structure and upside to analyst target prices
Share Stable shareholder structure and upside to analyst target prices PATRIZIA share performance | as at 30.06.2023 Shareholder structure | as at 30.06.2023 Analyst recommendations | as at 30.06.2023 6 EUR 30.00 30.00 € 7.08% 2 First Capital Partner GmbH 25.00 25.00 € 3 Union Investment Privatfonds
Slide 49: PATRIZIA share performance - what is the implied value of the operating business?
Share PATRIZIA share performance - what is the implied value of the operating business? Share Performance last 12 months compared to peergroup Implied value of the operating business 1 50% 40% EUR EUR 30% 99m 151m 20% 10% 0% -10% -20% EUR -30% 598m -40% -50% Net cash and value of treasury shares Bla
Slide 50: Dividend increases for FY 2022 for the 5th time
Share Dividend increases for FY 2022 for the 5th time - despite challenging environment Track Record | Dividend per share (EUR) PATRIZIA dividend policy +3.1% +6.7% 0.33 X% Y% 0.32 +3.4% +7.4% 0.30 0.29 +8.0% Basis for 0.27 dividend 0.25 growth Growth in management fees Growth in AUM (y-o-y) (y-o-y)
Slide 51: Shareholder Value Long-Term Incentive aligns CEO's and shareholders' interests
Share Shareholder Value Long-Term Incentive (SVL) aligns CEO’s and shareholders’ interests Entry ticket: CEO to buy 316k shares Private investment worth ~ EUR 3m Operating performance 1. Recurring revenues ≥ 85% of total revenues Operating targets or requirements (by end of FY 2027) 2. EBITDA meets
Slide 52: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 52
Slide 53: Capital allocation
Appendix Capital allocation PATRIZIA's capital allocation as at 30 June 2023 Assets under Invested capital Invested capital Management (fair value) (at cost) Participations EUR m EUR m EUR m in % Third-party business 48,165.0 0.0 Co-Investments 9,757.4 601.3 132.4 Real estate - residential 5,372.4 5
Slide 54: Reconciliation of EBITDA
Appendix Reconciliation of EBITDA Detailed reconciliation to EBITDA EUR k H1 2023 Table in the current report Management fees (excluding result from participations) 116,011 Reconciliation of total service fee income Shareholder contribution for management services (in result from participations) 4,5
Slide 55: Consolidated income statement
Appendix Consolidated income statement EUR k Q2 2023 Q2 2022 H1 2023 H1 2022 Change Revenues 67,935 77,545 130,797 158,476 -17.5% Changes in inventories 0 -77 0 -15,950 -100.0% Other operating income 1,333 4,969 4,101 5,627 -27.1% Income from the deconsolidation of subsidiaries 1,055 18,087 1,077 18
Slide 56: Consolidated balance sheet | Assets
Appendix Consolidated balance sheet | Assets Assets EUR k 30.06.2023 31.12.2022 Change Change % A. Non-current assets Goodwill 376,213 381,253 -5,040 -1.3% Other intangible assets 100,094 107,134 -7,041 -6.6% Software 7,251 8,080 -829 -10.3% Rights of use 23,183 26,715 -3,532 -13.2% Investment prope
Slide 57: Consolidated balance sheet | Equity and liabilities
Appendix Consolidated balance sheet | Equity and liabilities Equity and liabilities EUR k 30.06.2023 31.12.2022 Change Change % A. Equity Share capital 85,803 86,175 -373 -0.4% Capital reserves 62,655 67,181 -4,526 -6.7% Retained earnings Legal reserves 505 505 0 0.0% Currency translation difference
Slide 58: Financial calendar 2023/2024
Appendix Financial calendar 2023/2024 14 NOV 23 9M 2023 Interim Statement with investor and analyst conference call 29 FEB 24 2023 Preliminary results with investor and analyst conference call 22 MAR 24 2023 Annual Report 15 MAY 24 3M 2024 Interim Statement with investor and analyst conference call
Slide 59: Contact
Appendix Contact CHRISTOPH GLASER MARTIN PRAUM Executive Director | CFO Senior Managing Director Head of Investor Relations & Group Reporting PATRIZIA SE Fuggerstrasse 26 T +49 69 643505-1114 86150 Augsburg, Germany M +49 151 19685445 investor.relations@patrizia.ag JANINA ROCHELL VERENA SCHOPP DE AL