Patrizia SE · XETR:PAT

Patrizia — PATRIZIA Immobilien — Investor Presentation (March 2017)

32 slides from Patrizia's investor presentation, March 2017

  1. Slide 1: PATRIZIA Company Presentation March 2017

    PATRIZIA The European Real Estate Investment Company Company Presentation March 2017 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

  2. Slide 2: PATRIZIA is the leading listed European real estate investment firm

    PATRIZIA is the leading listed European real estate investment firm Top 3 15 markets European real estate with local operations dealmaker* across Europe EUR EUR 19 bn 33 years >200 400 m assets under experience institutional available for management in real estate clients globally further growth * P

  3. Slide 3: PATRIZIA continues on its growth path

    PATRIZIA continues on its growth path ASSETS UNDER MANAGEMENT ASSET MANAGEMENT FEE INCOME (in EUR billion) (in EUR million) 18.6 89.1 16.6 81.5 14.6 68.1 11.8 50.1 6.9 35.6 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 EQUITY RAISED TOTAL RECURRING FEE INCOME (in EUR billion) (in EUR million) 8.

  4. Slide 4: PATRIZIA's business model is focused on real estate investments

    PATRIZIA’s business model is focused on real estate investments DIRECT ACCESS TO EQUITY AND ASSETS  Broad and long-term oriented institutional investor base >200 Investors  Rapidly growing share of international Fundraising investors, particularly from Asia Product  Multi-fund platform to meet di

  5. Slide 5: PATRIZIA's expertise spans a variety of assets and deal structures

    PATRIZIA’s expertise spans a variety of assets and deal structures EUR 18.6BN AUM ACROSS THE RISK - RETURN SPECTRUM MANAGING ALL MAJOR SEGMENTS 2% 2% Office 2% 3% Risk EUR 0.3bn (2%) Opportunistic 3% Retail 35% Residential Light Industrial EUR 6.9bn (37%) Value add Logistics 36% Hotel EUR 11.4bn (61

  6. Slide 6: Strong operational FY 2016 reflected in financial results

    Strong operational FY 2016 reflected in financial results ADJUSTED OPERATING INCOME* (in EUR million) Third Party Business Fees Adjusted Management Income* +57.9% Regulated Funds Single Asset Mandates 78.5  Institutional Investors 49.7  Private Investors  Co-Investments 2015 2016 Equity Investmen

  7. Slide 7: PATRIZIA is invested in highly attractive European markets

    PATRIZIA is invested in highly attractive European markets PRESENCE IN GROWING AND STABLE AREAS LOW COUNTRY RISKS IN CORE GEOGRAPHIES PATRIZIA offices 0.4% 1.4% 0.6% 1.0% 1.0% 2.4% 1.6% 1.4% 1.8% 1.7% 1.9% 1.3% 1.5% 0.8% 0.9% Germany UK & Ireland* Netherlands Nordics* France & Belgium* Real GDP CAGR

  8. Slide 8: Investors worldwide are currently under-allocated to real estate

    Investors worldwide are currently under-allocated to real estate INVESTMENT PRESSURE BY TYPE OF INVESTOR INVESTMENT PRESSURE BY COUNTRY  Average allocation to real estate (as % of overall portfolio)  Average allocation to real estate (as % of overall portfolio) Current Allocation Target Allocation

  9. Slide 9: PATRIZIA continues to drive growth from its competitive strength

    PATRIZIA continues to drive growth from its competitive strength… Large track record as independent European Resulting position of competitive investment firm advantage  Transactions worth EUR 24.4bn completed since 2012 “Turn to” real estate investment Transactions  More than 8.5 million sqm and

  10. Slide 10: Four major strategic initiatives for growth

    …and has four major strategic initiatives for growth Continue European expansion I  Build out PATRIZIA’s pan-European investing platform and MARKETS thereby grow AUM and fee income  Underlying principle “all business is local” Broaden product portfolio VISION II  Further extend the PATRIZIA produ

  11. Slide 11: Further increase PATRIZIA's market share within Europe

    Further increase PATRIZIA‘s market share within Europe AUM DEVELOPMENT BY GEOGRAPHY Fully develop the German core market Nordics  Transaction volumes in Germany remain at a high level 0.3 0.8  Thus there still is considerable growth potential in UK & Ireland 1.9 2012 2016 2020 PATRIZIA’s largest m

  12. Slide 12: Expand product range and client base

    Expand product range and client base DIVERSIFICATION OF ASSET CLASSES  Broaden PATRIZIA’s product portfolio into various PATRIZIA Logistics dimensions in order to offer clients a broad range Management Europe of products and investment strategies  2015: launch of first pan-European logistics Segme

  13. Slide 13: PATRIZIA's new retail fund business is developing fast

    PATRIZIA’s new retail fund business is developing fast In 2016 PATRIZIA started selling real estate funds to New „Stuttgart Südtor“ private investors; typically each fund consists of one business specific property with existing rental or lease contracts  City quarter with a diverse mix of uses With

  14. Slide 14: Further expand the access to international blue-chip investors

    Further expand the access to international blue-chip investors  PATRIZIA’s international client base is growing strongly, but EQUITY COMMITMENTS BY GEOGRAPHY still offers plenty of unexploited fundraising potential (in %) 2016 stand-alone  Therefore PATRIZIA has intensified its international 5% 4%

  15. Slide 15: Opportunities both east and west of Europe

    PATRIZIA sees attractive opportunities both east and west of Europe USA / CANADA ASIA / PACIFIC Core Value add Opportunistic  Complementary risk  Similar risk profiles of 87% 85% 80% 89% 88% profiles to European 77% 62% Asian and European 54% 57% investors  least investors  strong interest in co

  16. Slide 16: Successful transformation of volatile investment to stable fee income

    Successful transformation of volatile investment to stable fee income  Fee income from investment management services is consistently and sustainably increasing  Sales proceeds from own assets held on the balance sheet, is steadily diminishing  Co-investment income continues to deliver attractive

  17. Slide 17: PATRIZIA – The European Real Estate Investment Company

    PATRIZIA – The European Real Estate Investment Company RESULTS HIGHLIGHTS ASSETS UNDER MANAGEMENT (in EUR billion)  2016 – promised and delivered  AuM growth target of EUR 2.0bn achieved 18.6 20.6  Operating income of EUR 283.2m outperformed 14.6 16.6 increased target of at least EUR 265m 11.8 

  18. Slide 18: Strong fee development shows scalability of PATRIZIA's platform

    Strong fee development shows scalability of PATRIZIA’s platform STEADY RISE OF FEE INCOME CONTINUES FEE INCOME  Total adjusted fee income up 14.2% to (in EUR million) EUR 188.6m 268.6 CAGR  5-year growth progress continues in 2016; 103.4 2012-2016 on average… +14.2% +26.9%  +25.8% p.a. fully recu

  19. Slide 19: Rise in AuM increases recurring asset management fee income

    Rise in AuM increases recurring asset management fee income… ASSET MANAGEMENT FEES STEADILY IMPROVING ASSETS UNDER MANAGEMENT (in EUR billion)  PATRIZIA receives recurring service fees for managing real estate assets from more than 18.6 16.6 200 international investors 14.6 11.8  Fee income is ste

  20. Slide 20: Transaction fees as a consistent part of total income

    …with transaction fees as a consistent part of total income… TRANSACTION FEES UP 19.8% IN 2016 TRANSACTION VOLUME 7.2 (in EUR billion) Ø EUR  With transactions of EUR 5.1bn completed in 2016 4.8 3.0 5.1 4.9bn PATRIZIA stays above its long-term average 0.5 4.1 1.9 3.2 0.7  Thereof acquisitions of E

  21. Slide 21: Performance fees confirming PATRIZIA's track record

    …and performance fees confirming PATRIZIA’s track record PERFORMANCE FEE IS BECOMING RELIABLE PART OF ANNUAL FEE STREAM PERFORMANCE FEES (in EUR million)  Third party funds and co-investments generate performance fees upon exceeding pre-determined return hurdles 128.4  Return hurdles largely relat

  22. Slide 22: Positioned to capture opportunities via balance sheet strength

    Positioned to capture opportunities via balance sheet strength  PATRIZIA is conscious that the company’s balance sheet is relatively underlevered  Available cash alone is approaching EUR 400m  PATRIZIA has only been in this position for less than one year and wants to keep its options open to res

  23. Slide 23: Outlook 2017 – Operating Income of EUR 60m to EUR 75m

    Outlook 2017 – Operating Income of EUR 60m to EUR 75m ASSUMPTIONS INCOME BRIDGE  Asset management fees based on average (in EUR million) AuM EUR 19.5bn — EUR 20.5bn  Transaction volume EUR 4.0bn — EUR 5.5bn -148  Investment income: remaining principal 39 — investments and income from participatio

  24. Slide 24: PATRIZIA's strategic bridge to the future

    PATRIZIA’s strategic bridge to the future ASSETS UNDER MANAGEMENT (in EUR billion) VISION  Deploy cash Completed transformation Realise M&A to a leading European Real Estate  PATRIZIA – Investment Manager ~30 the global provider of 18.6  Continue European expansion European real  Broaden product

  25. Slide 25: PATRIZIA – Investment highlights

    PATRIZIA – Investment highlights 1 Leading listed European real estate investment firm 2 Broad institutional client base and strong fundraising momentum – globally 3 High quality services across the entire property value chain 4 Excellent track record in sought after European property investment mar

  26. Slide 26: Appendix

    Appendix PATRIZIA Immobilien AG| © 2017 26

  27. Slide 27: Consolidated Income Statement FY 2016 – adjusted

    Consolidated Income Statement FY 2016 – adjusted* adjusted* adjusted* 12 months 2016 12 months 2015 EUR'000 01/01-12/31/2016 01/01-12/31/2015 Revenues 325,417 338,681 Income from the sale of investment property 1,542 10,075 Changes in inventories -115,133 -166,951 Other operating income 9,903 11,010

  28. Slide 28: Consolidated Balance Sheet FY 2016 – assets

    Consolidated Balance Sheet FY 2016 – assets ASSETS in EUR'000 12/31/2016 12/31/2015 A. Non-current assets Goodwill 610 610 Other intangible assets 35,416 37,417 Software 10,772 9,225 Investment property 12,226 20,802 Equipment 4,460 5,015 Participations in associated companies 85,923 88,179 Particip

  29. Slide 29: Balance sheet FY 2016 – equity/liabilities

    Balance sheet FY 2016 – equity/liabilities EQUITY AND LIABILITIES in EUR'000 12/31/2016 12/31/2015 A. Equity Share capital 83,956 76,324 Capital reserve 184,005 191,637 Retained earnings Legal reserves 505 505 Non-controlling shareholders 1,691 18,190 Currency translation differences -10,803 -869 Co

  30. Slide 30: Sale of Harald completed

    Sale of Harald completed HARALD EARNINGS CONTRIBUTION HARALD EARNINGS BRIDGE  Operating income of EUR 211.0m (in EUR million) As of 31 December 2016 excluding transaction related taxes and minorities  PATRIZIA will remain shareholder with a 5.1% stake and receive an annual dividend of EUR 0.8m -43

  31. Slide 31: Financial calendar

    Financial calendar 2017 March 14  Financial Statements 2016 May 10  Interim report for the first quarter of 2017 June 22  Annual General Meeting, Augsburg August 4  Interim report for the first half of 2017 November 7  Interim report for the first nine months of 2017 Conference calls about fina

  32. Slide 32: Contact details

    Contact details KARIM BOHN MICHAEL TEGEDER LAURA WANZL CFO HEAD OF IR 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 86150 Augsburg

PATRIZIA Immobilien — Investor Presentation (March 2017) on 6ix