Patrizia Se · XETR:PAT
Patrizia — Investor Presentation (November 2023)
62 slides from Patrizia's investor presentation, Nov 21, 2023
Slide 1: Company Presentation November 2023
Company Presentation November 2023 PATRIZIA | © 2023
Slide 2: 9M 2023 Financial Results CFO video presentation
PATRIZIA PATRIZIA SE | 9M 2023 Financial Results | CFO video presentation Access via weblink: https://bit.ly/40zjBuI 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 58bn 228m years of real asset experience Assets under management (EUR) 9M 2023 Top 2 EBITDA (EUR): fully independent 5% 50m 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 | PATRIZIA acquires the Copenhagen multi-manager Advantage Product | PATRIZIA successfully Product | Augsburg Investment Partners PATRIZIA secures a Tokyo places "Europe Residential to strengthen its rea
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 Market-leading Funds Bespoke Single Asset/Portfolio Global Investment Multi Strategy in Real Assets Account Solutions Deal Opportunities Solutions Solutions • Open-/closed-ended • Individual, nimble strategies • Sourcing, und
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 Operations Debt SMART Sustainab
Slide 11: Real estate and infrastructure investments offer various opportunities for global clients
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 Top 10 Managers based on European real assets (EUR m), 2022 Swiss Life Asset Managers 1 insurance group subsidiary AXA IM Alts 2 insurance group subsidiary Blackstone Group 3 fully independent alternatives
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 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 Giving Back to Society Increased Diversification Our continuously increasing product PATRIZIA portfolio covers various asset classes and regions, stabilising income by diversification Financial Fle
Slide 20: Infrastructure share is gradually increasing inside of overall resilient AUM base
Equity Story Infrastructure share is gradually increasing inside of overall resilient AUM base EUR 58.2 81 % resilient Core and 3%3%3% bn 6% assets under Core plus 4% 3% management strategies 19% 3% 16% 27% 4% 4% AUM by AUM by AUM by 53% risk style 7% geography 12% sector 18% 63% 5% 11% 10% 27% Germ
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% 5% 10% 48% 2% 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 Client philosophy 23% Pension funds Banking institutions Regional presence to understand client 2% 500+ 50% Insurance companies Institutional requirements better Corporates, endowments clients 17% Other1 8%
Slide 23: 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 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 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 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 6% 1000+ Transactions & Alternative Investments Global Client Solutions & Research 7% FTE 8% Digitalisation, TechLab Corporate & Other 21% 6% 4%
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 1,750 • Investment volume exceeds 1.7bn Euros 1,500 • More than 10,000 subscriptions signed Facts 1,250 • Average cash distribution for the financial years 1,000 2016 to 2022 is 4
Slide 31: 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 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 30 209.1 193.4 21.9 190.9 175.3 150 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: AUM resilient despite valuation pressure, thanks to ability to adopt net-buyer posture
Equity Story AUM resilient despite valuation pressure, thanks to ability to adopt net-buyer posture AUM development AUM development 3M9M 2023| 2023| EUREUR bn bn • AUM decrease by -1.7% y-t-d to EUR 58.2bn in 9M 2023 but increase by +0.4% q-o-q 1.3 60 -1.8 -0.4 • Net organic growth of EUR 1.3bn subs
Slide 34: 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 35: Size and dynamics of recurring income stream cushions market-dependent revenue drop
Equity Story Size and dynamics of recurring income stream cushions market-dependent revenue drop Management fees | EUR m Transaction fees | EUR m Performance fees | EUR m 184.1 187.7 +2.0% 49.8 - 36.2% 31.7 14.5 - 39.1% 2.5 8.8 12.0 1.9 7.0 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 Acqui
Slide 36: Net operating expenses driven by one-offs while core costs remained virtually stable
Equity Story Net operating expenses driven by one-offs while core costs remained virtually stable Cost base comparison| EUR m • Net operating expenses at EUR 182.5m (9M 2022: EUR 177.4m) with material one-off effects in both periods +0.2% 184.8 185.1 • Staff costs up by +3.9% to EUR 129.6m due to
Slide 37: Low market activity as major driver for EBITDA development
Equity Story Low market activity as major driver for EBITDA development Composition of EBITDA | EUR m • EBITDA down -36.4% y-o-y to EUR 50.2m, mainly caused by market driven decrease in total service fee income -36.2% -43.9% +2.9% +2.0% -39.1% 31.7 4.4 • Lower contribution of net sales rev
Slide 38: Cost measures and impact on FY 2023, FY 2024 and beyond
Equity Story Cost measures and impact on FY 2023, FY 2024 and beyond EBITDA development 2023 and 2024 | EUR m Lower performance 2023 Management fees, transaction fees and absence fees and performance fees of other operating • Reorganisation expenses estimated at Other operating income income EUR 10
Slide 39: Guidance ranges for FY 2023 confirmed – EBITDA expected at lower end of range
Equity Story Guidance ranges for FY 2023 confirmed – EBITDA expected to come in at lower end of range FY 9M 9M Guidance 2022 2022 2023 FY 2023e • AUM, EBITDA, EBITDA margin: guidance range confirmed AUM • Management expects a muted Q4 2023 59.1 57.1 58.2 57.0 – 62.0 (in EUR bn) • Comprehensive revie
Slide 40: Strong balance sheet and financial strength safeguard flexibility in current environment
Equity Story Strong balance sheet and financial strength safeguard flexibility in current environment Strong balance sheet Significant liquidity • Net cash and available liquidity down EUR m 30.09.2023 EUR m 30.09.2023 due to dividend payment, co-investments, Total assets 2,018.4 Bank balances, 344.
Slide 41: 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 334 10.2 Equity 1,269 AUM Co-Investments1 392 ….58.2 ∑ 48.0 Dawonia profit entitlements1 333 Liabilities 749 Ot
Slide 42: 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 43: Active use of group balance sheet to trigger and facilitate AUM growth through the cycle
Equity Story Active use of group balance sheet to trigger and facilitate AUM growth through the cycle Major recent transactions EUR m EUR m Seeding Non-current assets Participations Debt investment provided to telecom 652 Debt Fund II 25 (e.g. Dawonia) infrastructure business Non-current borrowings
Slide 44: 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 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 45: 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 quality education, The PATRIZIA Foundation is healthcare and safe homes worldwide. By your reliable partner if you, partnering with local professionals and s
Slide 46: 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 47: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 47
Slide 48: 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 49: 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 49
Slide 50: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 50
Slide 51: Stable shareholder structure and upside to analyst target prices
Share Stable shareholder structure and upside to analyst target prices PATRIZIA share performance | as at 08.11.2023 Shareholder structure | as at 30.09.2023 Analyst recommendations | as at 30.09.2023 6 EUR 30.00 30.00 € 7.47% 2 First Capital Partner GmbH 25.00 25.00 € 3 Union Investment Privatfonds
Slide 52: 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 peer group Implied value of the operating business 1 60% EUR EUR 31m 40% 90m 20% 0% -20% EUR -40% 614m -60% Net cash and value of treasury shares Partners Group Blacks
Slide 53: New Dividend Policy to be based on profitability
Share New Dividend Policy to be based on profitability • Current dividend policy tied to AUM and management fee growth • Management intends to base dividend payments on a profitability KPI going forward • Management will provide an update on the dividend policy and a dividend proposal for FY 2023 in
Slide 54: Shareholder Value Long-Term Incentive (SVL) 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 55: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 55
Slide 56: Capital allocation
Appendix Capital allocation PATRIZIA's capital allocation as at 30 September 2023 Assets under Invested capital Invested capital Management (fair value) (at cost) Participations EUR m EUR m EUR m in % Third-party business 47,990.1 0.0 Co-Investments and Warehousing 10,166.8 829.8 372.4 Real estate -
Slide 57: Reconciliation of EBITDA
Appendix Reconciliation of EBITDA Detailed reconciliation to EBITDA EUR k 9M 2023 9M 2022 Change Table in the current report Management fees (excluding result from participations) 180,989 176,957 2.3% Reconciliation of total service fee income Shareholder contribution for management services (in res
Slide 58: Consolidated income statement
Appendix Consolidated income statement EUR k Q3 2023 Q3 2022 9M 2023 9M 2022 Change Revenues 76,572 85,413 207,369 243,890 -15.0% Changes in inventories 0 94 0 -15,856 -100.0% Other operating income 8,856 1,463 12,957 7,090 82.7% Income from the deconsolidation of subsidiaries 0 0 1,077 18,087 -94.0
Slide 59: Consolidated balance sheet | Assets
Appendix Consolidated balance sheet | Assets Assets EUR k 30.09.2023 31.12.2022 Change Change % A. Non-current assets Goodwill 376,264 381,253 -4.989 -1,3% Other intangible assets 96,849 107,134 -10.285 -9,6% Software 6,746 8,080 -1.335 -16,5% Rights of use 22,080 26,715 -4.635 -17,4% Investment pro
Slide 60: Consolidated balance sheet | Equity and liabilities
Appendix Consolidated balance sheet | Equity and liabilities Equity and liabilities EUR k 30.09.2023 31.12.2022 Change Change % A. Equity Share capital 85.792 86.175 -383 -0,4% Capital reserves 62.664 67.181 -4.517 -6,7% Retained earnings Legal reserves 505 505 0 0,0% Currency translation difference
Slide 61: Financial calendar 2024
Appendix Financial calendar 2024 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 12 JUN 24 2024 Annual General Meeting 14 AUG 24 H1 2024 Financial Report with inves
Slide 62: 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 DR JANINA ROCHELL VERENA SCHOPP DE