Patrizia Se · XETR:PAT
Patrizia — PATRIZIA Immobilien — FY2014 Earnings Presentation
28 slides from Patrizia's earnings presentation, Mar 25, 2015
Slide 1: Conference Call on Fiscal Year 2014
Conference Call on Fiscal Year 2014 Business Development, Financials & Outlook 2015 25 March 2015 PATRIZIA Immobilien AG PATRIZIA Bürohaus | Fuggerstrasse 26 | 86150 Augsburg | T +49 821 50910-000 | F +49 821 50910-999 | immobilien@patrizia.ag | www.patrizia.ag
Slide 2: Highlights 2014
Highlights 2014 Operating result of EUR 50.2m meets outlook (2013: EUR 38.1m, +31.7%) EBT (IFRS) rose from EUR 39.6m to EUR 42.0m (+6.1%) Consolidated annual profit (IFRS) decreased from EUR 37.2mm to EUR 35.0m (-5.8%) due to tax reasons Management Services contributed “only” 72% to operatin
Slide 3: Assets under Management
Assets under Management ASSETS UNDER MANAGEMENT (IN EUR BILLION) AUM ROSE BY 24% TO EUR 14.6BN 15 14.6 + Purchases totalling more than EUR 3.4bn with 14 more than 50% of this amount outside Germany 13 - Sales of around EUR 0.7bn 12 = Real estate transactions worth more than 11 7.3 EUR 4.1bn in the y
Slide 4: Asset Allocation of PATRIZIA, Funds and Co-Investments
Asset Allocation of PATRIZIA, Funds and Co-Investments Growth expectations residential: Netherlands and Nordics (primarily Denmark) Growth expectations commercial: Germany (supermarkets, business hotels, care facilities), Nordics, UK Geographical Footprint Sectors1 * * of Assets1 2.1% 2.0% 1.6%
Slide 5: Asset Allocation of Funds and Co-Investments
Asset Allocation of Funds and Co-Investments 47% of investors in our funds and co-investments have multiple investments with PATRIZIA PATRIZIA’s largest individual investor accounts for less than 10% of subscribed equity Capital Commitments Investor Domicile by equity commitment by Investor Type
Slide 6: Growth of Assets under Management vs. Staff
Growth of Assets under Management vs. Staff Growth in AuM by 24%, while number of employees increased by 11.2% (FTE by 11.9%) 72 employees (previous year: 40) are employed at PATRIZIA’s international offices (9% of staff) In 2015, no significant increase in the number of employees (based on FT
Slide 7: Assets under Management and Staff in Germany and Abroad
Assets under Management and Staff in Germany and Abroad INCREASING ASSETS UNDER MANAGEMENT REQUIRE TO STRENGTHEN LOCAL TEAMS in EUR billion International Employees by Country excl. Germany* 14.6 11.8 3.9 26 2.5 21 6.9 5.2 1.7 10.7 12 1.5 9.3 2.7 0.1 5.2 7 3.7 6 2.6 2010 2011 2012 2013 2014 UK&Irelan
Slide 8: Own Portfolio / Consolidated Real Estate
Own Portfolio / Consolidated Real Estate Sale of 2,985 units in 2014 Single unit sales fell 30% to 521 apartments (2013: 746 units); average sales price: EUR 2,684/sqm With 2,464 apartments sold in 29 transactions, block sales rose 155% (2013: 968 units); average sales price: EUR 1,189/sqm I
Slide 9: Own Portfolio / Sales revenues
Own Portfolio / Sales revenues HIGHER SALES VOLUME BUT LOWER MARGINS Gross margin of 10.5% in inventories (2013: 14.3%) vs. 9.9% in investment property (2013: 11.3%) Income from the sale of investment property: EUR 17.0m (2013: 19.1m, -11%) EUR 8.6m realised change in the value of investment p
Slide 10: Development of Co-Investments
Development of Co-Investments GERMANY WOHNMODUL I Increase of committed equity from EUR 300m to EUR 770m; EUR 705m already called-up New assets in 2014: NL-deal is part of the WohnModul I, as well as a Danish residential portfolio worth EUR 100m PATRIZIA share rose to 10.1% Real estate devel
Slide 11: PATRIZIA Capital Allocation
PATRIZIA Capital Allocation IN EUR MILLION, AS OF 31.12.2014 ASSETS UNDER MANAGEMENT INVESTMENT CAPITAL PARTICIPATION IN % OPERATING COMPANIES1 ‒ 52.3 100 OWN INVESTMENTS2 277 149.7 100 CO-INVESTMENTS 7,012 184.2 RESIDENTIAL 5,398 144.5 GBW GmbH 2,703 56.9 5.1 Süddeutsche Wohnen GmbH 1,617 15.0 2.5
Slide 12: Third Party Business
Third Party Business ANOTHER EUR 1BN ADDITIONAL EQUITY RAISED FROM INSTITUTIONAL INVESTORS PATRIZIA WOHNINVEST AND PATRIZIA GEWERBEINVEST Both investment management companies have been trading as a Kapitalverwaltungsgesellschaft (KVG) since the end of January 2015 Increase in AuM by EUR 1.6bn or
Slide 13: PATRIZIA GrundInvest
PATRIZIA GrundInvest PATRIZIA GRUNDINVEST GMBH WAS FOUNDED IN ORDER TO ESTABLISH CLOSED-ENDED REAL ESTATE FUNDS FOR PRIVATE INVESTORS ACCESS TO NUMEROUS SERVICES AND THE ENTIRE EUROPEAN NETWORK OF THE PATRIZIA GROUP Approval by the BaFin (Federal Financial Supervisory Authority) necessary for the
Slide 14: Income Structure – Service Business
Income Structure – Service Business INCREASING AUM WILL GENERATE HIGHER SERVICE FEES AND INCREASE EARNINGS VISIBILITY FEE SPLIT 2014: EUR 106.3m 2013: EUR 94.8m Services 2014: EUR 51.3m (48%) Real Estate 2014: EUR 55.0m (52%) 2013: EUR 40.5m (43%) Investment House 2013: EUR 54.3m (57%) Regular incom
Slide 15: Development of the Operating Result
Development of the Operating Result OPERATING RESULT IFRS EBT without valuation items Approx. 10% increase in 2015, outlook will be specified towards the middle of the year 60 50 +10% 40 50.2 43.9 30 38.1 20 12.4 28.8 10 4.0 2.7 0 2008 2009 2010 2011 2012 2013 2014 2015e INVESTMENTS MANAGEMENT S
Slide 16: Development of IFRS Figures
Development of IFRS Figures EBT Increase by 6.1% compared with FY 2013, due to higher income from participations and earnings from companies accounted for using the equity method 39.6 42.0 8.0 11.5 28.6 19.9 -32.4 2008 2009 2010 2011 2012 2013 2014 CONSOLIDATED ANNUAL PROFIT/LOSS Decrease by 5.8
Slide 17: Income Tax
Income Tax WE ANTICIPATE THAT WE WILL NOT EXCEED A TAX QUOTA OF 10% UP TO AND INCLUDING 2016 in EUR thousands 2014 2013 Tax rate 2014 Earnings before income taxes (EBT) 41,998 39,599 Income tax -6,978 -2,431 16.6% - thereof retrospective tax repayment for the assessment periods 2007 to 2010 -993 - -
Slide 18: Development of Revenues from FY 2013 to FY 2014
Development of Revenues from FY 2013 to FY 2014 500 +19.9% 450 171.8 463.6 400 386.8 178.3 350 300 +25.7 -9.5 +12,2 -2.5 291.8 -0.8 250 +70.8 200 217.4 -21.5 150 100 50 0 Total Purchase Total Purchase Purchase Purchase Rental Revenues Revenues Other Total Purchase Total receipts price revenues price
Slide 19: Split of Revenue
Split of Revenue REVENUES INCREASED BY 34.2% TO EUR 291.8M 500 450 400 171.8 350 23.2% 3.1% 300 9.2 250 13.2% 67.8 200 7.3% 38.5 8.8% 33.0% 21.2 150 25.7 291.8 291.8 100 Management 96.2 services 50 11.4% 33.3 33.3 0 Single unit Block sales RED Rental Co-investments Revenues Other Total Purchase pric
Slide 20: Staff Costs
Staff Costs INCREASE OF STAFF COSTS BY 17.5% TO EUR 77.2M (FY 2013: EUR 65.7M) Due to new appointments and salary adjustments in line with market trends, to higher expenses for the long-term variable compensation components (linked to the share price), and to higher sales commissions due to better
Slide 21: Participations
Participations INVESTMENT RESULT AS GROWTH TRIGGER INCOME FROM PARTICIPATIONS EARNINGS FROM COMPANIES ACCOUNTED FOR USING THE EQUITY METHOD EUR million 2014 2013 EUR million 2014 2013 SÜDEWO WohnModul I Asset Management Fee 7.3 7.3 Asset Management Fee shown in revenues Performance Fee 5.6 5.7* Perf
Slide 22: P&L
P&L 2014 2013 +/- in % EUR'000 01.01.-31.12.2014 01.01.-31.12.2013 Revenues 291,815 217,398 34.2% Income from the sale of investment property 17,019 19,133 -11.0% Changes in inventories -110,509 -36,717 201.0% Other operating income 7,143 8,064 -11.4% Total operating performance 205,468 207,878 -1.2
Slide 23: Balance Sheet
Balance Sheet ASSETS EQUITY AND LIABILITIES EUR'000 31.12.2014 31.12.2013 EUR'000 31.12.2014 31.12.2013 A. Non-current assets A. Equity Goodwill 610 610 Share capital 69,385 63,077 Other intangible assets 39,407 41,904 Capital reserve 198,576 204,897 Software 10,795 8,698 Retained earnings Investmen
Slide 24: Solid Financial Situation
Solid Financial Situation LOANS VS. EQUITY RATIO Indebtedness has been reduced by approx. 50% to EUR 199m Financing via bank loans at property/portfolio level, two bonded loans on corporate level Bonded loans: residual term of 1.5 years at 4.5% and 3.5 years at 4.65%; may be repaid prematurely
Slide 25: Net Asset Value
Net Asset Value NAV / INVESTMENTS SEGMENT REPRESENTS ONLY 28% OF THE 2014 OPERATING RESULT Stable NAV: sale of properties has been compensated by increased participations and reduced bank loans Investment property and inventories were sold in FY 2014 at a profit with a gross margin of 9.9% and 1
Slide 26: Outlook 2015
Outlook 2015 2015 WILL BE PATRIZIA‘S LAST YEAR OF TRANSITION ITEM TARGETS 2015 Assets under Management growth by EUR 2bn (net) approx. +10%, will be specified more precisely Operating result towards the middle of the year Rental income < EUR 7m Staff cost EUR 85-90m Cost of materials EUR 2
Slide 27: Financial Calendar, Conferences and Roadshows
Financial Calendar, Conferences and Roadshows 2015 April 15 Roadshow with Oddo Seydler Bank, Brussels 16 Bankhaus Lampe Germany Conference, Baden-Baden 22 - 23 Roadshow with Berenberg Bank, London and Edinburgh 29 Roadshow with equinet Bank, Copenhagen 30 Roadshow with Berenberg Bank, Hels
Slide 28: Contact Details
Contact Details ARWED FISCHER MARGIT MILLER VERENA SCHOPP DE CFO HEAD OF IR ALVARENGA MANAGER IR PATRIZIA Immobilien AG PATRIZIA Immobilien AG PATRIZIA Immobilien AG PATRIZIA Bürohaus PATRIZIA Bürohaus PATRIZIA Bürohaus Fuggerstrasse 26 Fuggerstrasse 26 Fuggerstrasse 26 86150 Augsburg 86150 Augsburg