Swiss Prime Site Ag · SIX:SPSN
Swiss Prime Site — Investor Day (October 2020)
40 slides from Swiss Prime Site's investor day presentation, Oct 20, 2020
Slide 1: Capital Markets Day 2020
CAPITAL MARKETS DAY 2020 ZURICH, 20 OCTOBER 2020
Slide 2: Agenda
AGENDA 1 MARKET OUTLOOK AND René Zahnd, CEO Swiss Prime Site BUSINESS UPDATE 2 PEOPLE Ton Büchner, Chairman of the Board of Directors Martin Kaleja, CEO Swiss Prime Site Immobilien Anastasius Tschopp, CEO Swiss Prime Site Solutions 3 STRATEGIC AND René Zahnd OPERATIONAL UPDATE 4 ESG ENGAGEMENT René
Slide 3: Real estate market 2020+
MARKET OUTLOOK Real estate market 2020+ OFFICE MARKET RETAIL MARKET HOSPITALITY ▪ Immigration expected to remain at ▪ Despite the lockdown, sales are developing ▪ Hotel industry recorded a total of 16.5 previous levels well (H1 2020: +5.5%*), with online and food million overnight stays until August
Slide 4: Business update: Key figures
BUSINESS UPDATE Key figures REAL ESTATE PORTFOLIO RENT COLLECTION CHF billion in % 92 97 11.9 12.0 +0.1 bn +5PP H1 2020 Oct 20 Q2 2020 Q3 2020 «CORONAVIRUS» TENANT AGREEMENTS «CORONAVIRUS» IMPACT ON RENTAL in % with a total of 520 requests INCOME 85 in CHF million 20.0 64 15.0* +21PP -25% H1 2020 Oc
Slide 5: Agenda
AGENDA 1 MARKET OUTLOOK AND René Zahnd, CEO Swiss Prime Site BUSINESS UPDATE 2 PEOPLE Ton Büchner, Chairman of the Board of Directors Martin Kaleja, CEO Swiss Prime Site Immobilien Anastasius Tschopp, CEO Swiss Prime Site Solutions 3 STRATEGIC AND René Zahnd OPERATIONAL UPDATE 4 ESG ENGAGEMENT René
Slide 6: Ton Büchner | Chairman
PEOPLE Ton Büchner | Chairman Swiss Prime Site (since 24 March 2020) CURRICULUM VITAE: TON BÜCHNER ▪ 1965, Dutch-Swiss dual citizen ▪ Studied civil engineering (MSc TU Delft, NL), MBA (IMD, CH) ▪ 1989 – 1993 Project Manager Offshore Construction (Europe, Asia) ▪ 1994 – 2007 Sulzer Group, Switzerland
Slide 7: Martin Kaleja | CEO Immobilien
PEOPLE Martin Kaleja | CEO Swiss Prime Site Immobilien (as of 1 January 2021) CURRICULUM VITAE: MARTIN KALEJA ▪ 1972, German citizen ▪ 1992 – 1997 Studied electrical engineering and information technology at the Technical University of Munich and graduated as a qualified engineer ▪ 1997 – 2001 Docto
Slide 8: Anastasius Tschopp | CEO Solutions
PEOPLE Anastasius Tschopp | CEO Swiss Prime Site Solutions CURRICULUM VITAE: ANASTASIUS TSCHOPP ▪ 1979, Swiss citizen ▪ 2003 – 2004 BVS Business School ▪ 2004 – 2014 Various higher education courses ▪ 2006 – 2007 Property manager at Wincasa ▪ 2007 – 2009 Real estate trustee with Livit ▪ 2009 – 2010
Slide 9: Agenda
AGENDA 1 MARKET OUTLOOK AND René Zahnd, CEO Swiss Prime Site BUSINESS UPDATE 2 PEOPLE Ton Büchner, Chairman of the Board of Directors Martin Kaleja, CEO Swiss Prime Site Immobilien Anastasius Tschopp, CEO Swiss Prime Site Solutions 3 STRATEGIC AND René Zahnd OPERATIONAL UPDATE 4 ESG ENGAGEMENT René
Slide 10: Swiss Prime Site | Two strong pillars
STRATEGIC AND OPERATIONAL UPDATE Swiss Prime Site | Two strong pillars REAL ESTATE SERVICES Swiss Prime Site invests in real estate and land in prime locations With the asset manager Swiss Prime Site Solutions, the real in Switzerland with good value retention. These, together with estate service pr
Slide 11: 2020+ | Stable portfolio and growth in services
STRATEGIC AND OPERATIONAL UPDATE Swiss Prime Site 2020+ | Stable portfolio and growth in services REAL ESTATE SERVICES Portfolio of prime, value-retaining and attractive real estate valued Real estate-related service business with high growth rates of at around CHF 12 billion assets under management
Slide 12: Real Estate: overview of portfolio by region H1 2020
STRATEGIC AND OPERATIONAL UPDATE Real Estate: overview of portfolio by region H1 2020 REAL ESTATE PORTFOLIO BY REGION Basis: net rental income as at 30.06.2020 Zurich | 20 October 2020 Capital Markets Day 2020 12
Slide 13: Real Estate: overview of portfolio by type of use H1 2020
STRATEGIC AND OPERATIONAL UPDATE Real Estate: overview of portfolio by type of use H1 2020 REAL ESTATE PORTFOLIO BY TYPE OF USE 1 Basis: net rental income as at 30.06.2020 Zurich | 20 October 2020 Capital Markets Day 2020 13
Slide 14: Real Estate: projects under construction fully on schedule
STRATEGIC AND OPERATIONAL UPDATE Real Estate: projects under construction fully on schedule PROJECTS YOND Schönburg West-Log Stücki Park I JED I Tertianum Espace Tourbillon Zurich Berne Zurich Basel Schlieren Monthey & Plan-les-Ouates Richterswil Construction status complete complete complete on sch
Slide 15: Real Estate: strong development pipeline
STRATEGIC AND OPERATIONAL UPDATE Real Estate: strong development pipeline PROJECTS Tertianum Alto Pont-Rouge JED II Stücki Park II Müllerstrasse maaglive Rheinstrasse Paradiso & Olten Lancy Schlieren Basel Zurich Zurich Augst architecture zone plan Design plan published (Olten) competition granted P
Slide 16: Real Estate: project pipeline with above-average returns
STRATEGIC AND OPERATIONAL UPDATE Real Estate: project pipeline with above-average returns OVERVIEW OF PROJECT PIPELINE (in CHF m) COMMENTS ~2 000 83 p.a. ▪ Investment volume: Size of the project pipeline Reserves has remained stable at around CHF 2.0 billion over the last few years ~600 ▪ Projects u
Slide 17: Real Estate: attractive land and densification reserves
STRATEGIC AND OPERATIONAL UPDATE Real Estate: attractive land and densification reserves OVERVIEW OF RESERVES (in CHF m) ~2 000 RESERVES FROM EXISTING PROPERTIES reserves ~600 ▪ Existing properties have considerable densification potential and utilisation reserves 46 construction* development under
Slide 18: Real Estate: examples of reserve utilisation with potential
STRATEGIC AND OPERATIONAL UPDATE Real Estate: examples of reserve utilisation with potential EXISTING PORTFOLIO LAND BANK Example of reserve utilisation Example of reserve utilisation Iseli site, Regensdorf (total 25 000 m2) Poststrasse, Uster (total 2’900 m2) Sole ownership of a site in the Zurich
Slide 19: Real Estate: change in portfolio by type of use
STRATEGIC AND OPERATIONAL UPDATE Real Estate: change in portfolio by type of use OVERVIEW OF PROPERTY PORTFOLIO COMMENTS by type of use (in %) ▪ Office space: slight increase of office space within the 100% 1.0 Residential 1.0 Residential portfolio due to the project pipeline 3.0 Other 4.0 Other 10.
Slide 20: Real Estate: active optimisation of the portfolio
STRATEGIC AND OPERATIONAL UPDATE Real Estate: active optimisation of the portfolio PORTFOLIO STRUCTURE in CHF bn ~ 12 12 11 EXAMPLE 10 9 8 7 A Premium B Premium B & C locations 6 Modern real estate at Well-located properties Suboptimally located 5 first-class, in the cities of the real estate or sit
Slide 21: Real Estate: active project development and divestment
STRATEGIC AND OPERATIONAL UPDATE Real Estate: active project development and divestment PROJECT DEVELOPMENT AND DIVESTMENT Examples Berne, Weltpostpark Espace Tourbillon Sale of the «Weltpost Park» apartment complex in an attractive location Sale of two turnkey buildings in the currently largest in
Slide 22: Real Estate: active vacancy management
STRATEGIC AND OPERATIONAL UPDATE Real Estate: active vacancy management VACANCY in % of the portfolio as at 30 June 2020 6.0 PROPERTIES WITH VACANCIES 5.4% ▪ Few vacancies account for a total of 1.6 percentage points of the overall vacancy rate of 5.4% 5.0 1.6% 4.0 REMAINING VACANCIES ▪ The remainin
Slide 23: Services: expanding the Solutions product base
STRATEGIC AND OPERATIONAL UPDATE Services: expanding the Swiss Prime Site Solutions product base BUSINESS MODEL INTEGRATED MANAGEMENT MODEL ▪ Swiss Prime Site Solutions as managing company and asset manager ▪ Single point of contact across all management levels ▪ Cross-group utilisation of experts t
Slide 24: Services: Real Estate Asset Management as a growth market
STRATEGIC AND OPERATIONAL UPDATE Services: Real Estate Asset Management as a growth market GLOBAL REAL ESTATE AUM (IN TRILLION EUR)* COMMENTS 3.5 3.2 ▪ Real estate AuM rose to a total of EUR 3.2 trillion (+14%) at the end of 2019 3 ▪ Globally in 2019, a total EUR 196 billion was raised for 2.8 2.5 i
Slide 25: Services: using synergies with Immobilien
STRATEGIC AND OPERATIONAL UPDATE Services: using synergies with Swiss Prime Site Immobilien INVESTMENT PROPERTIES AND PROJECT DEVELOPMENT STRUCTURING AND PRODUCT DEVELOPMENT Product A Property portfolio CHF ~12 billion Product (n) SEED PORTFOLIO Funds 1 Funds (x) Project pipeline CHF ~2 billion Zuri
Slide 26: Services: Solutions with strong growth
STRATEGIC AND OPERATIONAL UPDATE Services: Swiss Prime Site Solutions with strong growth ASSETS UNDER MANAGEMENT SWISS PRIME SITE SOLUTIONS COMMENTS in CHF bn ▪ Profitability: EBIT contribution from Swiss Prime Site 8.0 Solutions of CHF ~30 million from 2025 onwards >100% ~7.0 7.0 growth ▪ Investmen
Slide 27: Services: attractive fee structure of investment products
STRATEGIC AND OPERATIONAL UPDATE Services: attractive fee structure of investment products SPIF Real Estate Switzerland Management fee 0.32% Buying & selling commission 1.25% up to CHF 50 million Construction commission 1.5% of total building costs p.a. Capital raising: 0.40% SPIF Living+ Europe Man
Slide 28: Services: Wincasa with successful transformation process
STRATEGIC AND OPERATIONAL UPDATE Services: Wincasa with successful transformation process COMMENTS ▪ Profitability: EBIT margin maintained at ~15%, thus operating result contribution of over CHF 20 million ▪ Transformation of the business model 1) Modernisation and automation of services for residen
Slide 29: Services: Jelmoli with break-even by 2023
STRATEGIC AND OPERATIONAL UPDATE Services: Jelmoli with break-even by 2023 COMMENTS ▪ Profitability: Break-even result of the operating company by 2023 ▪ Property value: Stable level of rent and thus the market value of the property (CHF ~800 million) ▪ Strategic review: External and internal review
Slide 30: Agenda
AGENDA 1 MARKET OUTLOOK AND René Zahnd, CEO Swiss Prime Site BUSINESS UPDATE 2 PEOPLE Ton Büchner, Chairman of the Board of Directors Martin Kaleja, CEO Swiss Prime Site Immobilien Anastasius Tschopp, CEO Swiss Prime Site Solutions 3 STRATEGIC AND René Zahnd OPERATIONAL UPDATE 4 ESG ENGAGEMENT René
Slide 31: Corporate strategy: sustainability as an integral component
ESG ENGAGEMENT Corporate strategy: sustainability as an integral component COMMENTS ▪ Swiss Prime Site is guided by the ESG criterias as well as the Sustainable Development Goals (SDGs) of the United Nations, the Paris Agreement and the Federal Government’s Energy Strategy 2050 ▪ Since 2019, members
Slide 32: Sustainable Development Goals: focus of Swiss Prime Site
ESG ENGAGEMENT Sustainable Development Goals: focus of Swiss Prime Site EMPLOYEES FINANCE INNOVATION We support individual professorships and the We want to increase our profitability while at the We invest in new technologies and sustainable further development of education and training same time i
Slide 33: Ratings and standards
ESG ENGAGEMENT Ratings and standards: critical for Swiss Prime Site ESG COMPANY RATINGS AND BENCHMARKS ▪ MSCI ESG rating: A rating (last update: 12 June 2020) ▪ Sustainalytics Company ESG risk rating: 18.7 low risk (last update: 5 June 2020) ▪ ISS ESG corporate rating: medium category (last update:
Slide 34: Property portfolio: reduction pathway to climate neutrality by 2050
ESG ENGAGEMENT Property portfolio: reduction pathway to climate neutrality by 2050 REQUIREMENTS FOR DEVELOPMENTS AND OPERATION COMMENTS Developments | Re-dev. Swiss Prime Site objectives ▪ Swiss Prime Site has developed a detailed CO2 reduction pathway for the entire property portfolio at Primary en
Slide 35: Project pipeline: sustainability in real estate developments
ESG ENGAGEMENT Project pipeline: sustainability in real estate developments COMMENTS ▪ Focus on the development of sustainable real estate based on nationally and internationally recognised standards such as SNBS, SGNI as well as LEED and BREEAM ▪ Example: new building (2226) at the JED site in Schl
Slide 36: Alternative types of financing on the basis of sustainable investments
ESG ENGAGEMENT Alternative types of financing on the basis of sustainable investments COMMENTS ▪ Creation of an individual «Green Bond Framework» for Swiss Prime Site ▪ Verification of the Green Bond Framework (2nd party opinion) by ISS ESG ▪ The Green Bond Principles (2018) of the International Cap
Slide 37: Agenda
AGENDA 1 MARKET OUTLOOK AND René Zahnd, CEO Swiss Prime Site BUSINESS UPDATE 2 PEOPLE Ton Büchner, Chairman of the Board of Directors Martin Kaleja, CEO Swiss Prime Site Immobilien Anastasius Tschopp, CEO Swiss Prime Site Solutions 3 STRATEGIC AND René Zahnd OPERATIONAL UPDATE 4 ESG ENGAGEMENT René
Slide 38: 2020+ targets
TARGETS AND WRAP-UP Swiss Prime Site 2020+ targets REAL ESTATE SEGMENT SERVICES SEGMENT Level Targets Targets by 2025 Portfolio Stable volume of CHF ~12 billion Assets under management CHF ~7 billion Vacancy 2021+ EBIT contribution to the group CHF ~30 million <5% and further optimisation Types of u
Slide 39: Analyst and investor contact
Analyst and investor contact Media contact MARKUS WAEBER MLADEN TOMIC Investor Relations Media Relations Head Group Investor Relations Head Group Communications Business: +41 58 317 17 64 Business: +41 58 317 17 42 Mobile: +41 79 566 63 34 Mobile: +41 79 571 10 56 markus.waeber@sps.swiss mladen.tomi
Slide 40: Disclaimer
DISCLAIMER Details published in this presentation are for information purposes only and should not form the basis for any investment decisions or recommendations to purchase Swiss Prime Site AG securities. The content of this presentation was diligently researched and compiled. However, Swiss Prime