Swiss Prime Site Ag · SIX:SPSN
Swiss Prime Site — Investor Day (October 2021)
40 slides from Swiss Prime Site's investor day presentation, Oct 26, 2021
Slide 1: Capital Markets Day 2021
CAPITAL MARKETS DAY 2021 ZURICH, 26 OCTOBER 2021
Slide 2: Agenda
AGENDA 1 INTRODUCTION RENÉ ZAHND 2 SUSTAINABILITY RENÉ ZAHND 3 REAL ESTATE MARTIN KALEJA 4 ASSET MANAGEMENT ANASTASIUS TSCHOPP 5 FINANCIALS MARCEL KUCHER 6 WRAP-UP AND OUTLOOK RENÉ ZAHND 7 Q&A Zurich | 26 October 2021 Capital Markets Day 2021 2
Slide 3: Agenda Capital Markets Day 2021
INTRODUCTION Agenda Capital Markets Day 2021 9:30 – 10:30 Property tour JED Schlieren 10:30 – 12:15 Management presentation 12:15 – 13:30 Lunch 13:30 – 16:30 Property tour Zurich CBD | Müllerstrasse, Leuenhof and Fraumünster 16:30 – 17:30 Drinks reception Zurich | 26 October 2021 Capital Markets Day
Slide 4: Towards a comprehensive real estate investment platform
INTRODUCTION Towards a comprehensive real estate investment platform SHARES BONDS FUNDS SPIF THIRD-PARTY WINCASA MANDATES Currently 7th largest listed Convertible bonds, Non-listed funds for Investment foundation Asset management Real estate services for real estate company in bonds, and green bonds
Slide 5: Key takeaways Capital Markets Day 2021
INTRODUCTION Key takeaways Capital Markets Day 2021 CAPITAL STRONG MARKET GROWTH ASSET MANAGEMENT POSITIONING MANAGEMENT STRATEGY ▪ Locations: Pandemic has not yet had an ▪ Expansion of business model: ▪ Capital recycling: Taking advantage of impact on the demand for prime Extension of services and
Slide 6: Agenda
AGENDA 1 INTRODUCTION RENÉ ZAHND 2 SUSTAINABILITY RENÉ ZAHND 3 REAL ESTATE MARTIN KALEJA 4 ASSET MANAGEMENT ANASTASIUS TSCHOPP 5 FINANCIALS MARCEL KUCHER 6 WRAP-UP AND OUTLOOK RENÉ ZAHND 7 Q&A Zurich | 26 October 2021 Capital Markets Day 2021 6
Slide 7: Sustainability: Yesterday, today and tomorrow...
SUSTAINABILITY Sustainability: Yesterday, today and tomorrow... YESTERDAY TODAY TOMORROW ▪ Objectives: Creating awareness of ▪ Objectives: Sustainability within the ▪ Objectives: Development of the sustainability and establishing it in context of global initiatives (UN resource-intensive «linear thr
Slide 8: Today: CO2 reduction pathway to reach climate neutrality by 2040
SUSTAINABILITY Today: CO2 reduction pathway to reach climate neutrality by 2040 CO 2 INTENSITY OF PORTFOLIO ▪ CO2 emissions: From 2018, measures introduced led to kg CO2 e/m2 a significant decrease of 24% ▪ Portfolio of existing properties: In the case of 25.7 26.1 -24% necessary run time-related an
Slide 9: From linear to circular! Sustainability…
SUSTAINABILITY From linear to circular! Sustainabilty… …is NOT about LINEAR ECONOMY ▪ …becoming certified ▪ Global economy (raw materials, ▪ …coming up with isolated solutions production, consumption, disposal) causes large amounts of waste ▪ Focus on fast-moving cycles and performance rather than o
Slide 10: Circular economy: Properties become raw material assets
SUSTAINABILITY Circular economy: Properties become raw material assets PRODUCT END OF LIFE RAW MATERIAL CYCLE CONSUMPTION CYCLE PRODUCTION CONSUME CONCLUDE CONTRACT RAW MATERIALS RECIRCULATE ▪ Ownership vs performance: Less desire to own; greater focus on performance → from consumption to utilisatio
Slide 11: Agenda
AGENDA 1 INTRODUCTION RENÉ ZAHND 2 SUSTAINABILITY RENÉ ZAHND 3 REAL ESTATE MARTIN KALEJA 4 ASSET MANAGEMENT ANASTASIUS TSCHOPP 5 FINANCIALS MARCEL KUCHER 6 WRAP-UP AND OUTLOOK RENÉ ZAHND 7 Q&A Zurich | 26 October 2021 Capital Markets Day 2021 11
Slide 12: Tenant survey: 95% want to maintain or expand space size
REAL ESTATE Tenant survey: 95% want to maintain or expand space size OVERALL SATISFACTION LOYALTY SPACES (Definitely) extend Indifferent (Very) satisfied Neutral No change Expansion Reduction Don’t know/not specified (Definitely) terminate Don’t know/not specified Not satisfied (at all) Don’t know/n
Slide 13: Top market trends: Location, flexibility, health and sustainability
REAL ESTATE Top market trends: Location, flexibility, health and sustainability ▪ Location, location, ▪ Space: Demand for ▪ Sensitisation: Pandemic ▪ Participation: All aspects location: Demand for space has changed, but clearly increased health of sustainability are prime locations has has not decr
Slide 14: First-class locations remain in demand
REAL ESTATE First-class locations remain in demand LOCATION INFRASTRUCTURE LOGISTICS JED II, SCHLIEREN WEST-LOG, ZURICH Zurich | 26 October 2021 Capital Markets Day 2021 14
Slide 15: Example: Stücki Park Basel as a perfect location for laboratory space
REAL ESTATE Example: Stücki Park Basel as a perfect location for laboratory space INFRASTRUCTURE Source: Video by Lonza DPS Zurich | 26 October 2021 Capital Markets Day 2021 15
Slide 16: Intact demand for modern space and available services
REAL ESTATE Intact demand for modern space and available services FLEXIBILITY OFFICE OFFICE OFFICE FLEXOFFICE, YOND, ZURICH 6 LOCATIONS ZIP, BASEL Zurich | 26 October 2021 Capital Markets Day 2021 16
Slide 17: Strong demand for healthy environment and security
REAL ESTATE Strong demand for healthy environment and security HEALTH OFFICE OFFICE JED, SCHLIEREN PRIME TOWER, ZURICH Zurich | 26 October 2021 Capital Markets Day 2021 17
Slide 18: Increased importance of sustainability as a result of the pandemic
REAL ESTATE Increased importance of sustainability as a result of the pandemic SUSTAIN- AIBILITY OFFICES OFFICES YOND, MÜLLERSTRASSE, ZÜRICH ZURICH MESSETURM, BASEL Zurich | 26 October 2021 Capital Markets Day 2021 18
Slide 19: Example: Project development for tenant Google
REAL ESTATE Example: Project development for tenant Google ▪ Goal: transformation of the building according to the principles of circular economy ▪ Process: complete deconstruction of the property down to the supporting structure ▪ Framework conditions: cataloguing and maximum reuse of all dismantle
Slide 20: Agenda
AGENDA 1 INTRODUCTION RENÉ ZAHND 2 SUSTAINABILITY RENÉ ZAHND 3 REAL ESTATE MARTIN KALEJA 4 ASSET MANAGEMENT ANASTASIUS TSCHOPP 5 FINANCIALS MARCEL KUCHER 6 WRAP-UP AND OUTLOOK RENÉ ZAHND 7 Q&A Zurich | 26 October 2021 Capital Markets Day 2021 20
Slide 21: Swiss Prime Site Solutions: Successful financial year 2021
ASSET MANAGEMENT Swiss Prime Site Solutions: Successful financial year 2021 ▪ Fund management company: Approved as a fund manager by FINMA ▪ Assets under management: Increased from CHF 3.0 billion at the end of 2020 to total CHF 3.4 billion (October 2021) ▪ Project pipeline: Additional development p
Slide 22: Attractive Swiss Prime Site Solutions business fields
ASSET MANAGEMENT Attractive Swiss Prime Site Solutions business fields INVESTMENT FUND FOUNDATION MANAGEMENT SERVICES ▪ Position: Executive management and ▪ Position: Executive management and ▪ Position: Investment advice for third- investment advice on collective investment advice on fund products
Slide 23: Success story (1/2): SPIF Real Estate Switzerland 2016 to HY 2021
ASSET MANAGEMENT Success story (1/2): SPIF Real Estate Switzerland 2016 to HY 2021 INVESTMENT RETURN PORTFOLIO DEVELOPMENT in % in CHF billion 3.7 3.7 2.8 2.6 3.5 2.3 3.3 3.3 1.6 1.4 3.2 0.8 2016 2017 2018 2019 2020 Q2/2021 2016 2017 2018 2019 2020 Q2/2021 TERISA (GAV) VACANCY RATE in % in % 0.8% 8%
Slide 24: Success story (2/2): Development projects with added value
ASSET MANAGEMENT Success story (2/2): Development projects with added value LEUENHOF, ZURICH RIVERSIDE, ZUCHWIL Zurich | 26 October 2021 Capital Markets Day 2021 24
Slide 25: Funds: Launch of Swiss Prime Site Solutions IF Commercial
ASSET MANAGEMENT Funds: Launch of Swiss Prime Site Solutions IF Commercial PROPORTIONATE STRUCTURE OF ASSETS UNDER MANAGEMENT ▪ Attractive seed portfolio of CHF ~260 million: in CHF million Exclusive and one-off purchase of suitable properties > 1 billion from Swiss Prime Site (seed portfolio CHF 80
Slide 26: Sustainable and stable income base of Swiss Prime Site Solutions
ASSET MANAGEMENT Sustainable and stable income base of Swiss Prime Site Solutions PROPORTIONATE INCOME STRUCTURE ▪ Assets under management: Historically high and Basis financial year 2021E growing share of current AuM in Swiss Prime Investment Foundation incl. a project pipeline of CHF 600 million >
Slide 27: Growth targets and distribution
ASSET MANAGEMENT Growth targets and distribution SWISS PRIME SITE SOLUTIONS ASSETS UNDER MANAGEMENT ▪ Assets under management: Significant growth in CHF billion expected for all products; target increase to over CHF 7 billion by 2025 ▪ Profitability: Total EBIT contribution from Swiss Prime Site Sol
Slide 28: Agenda
AGENDA 1 INTRODUCTION RENÉ ZAHND 2 SUSTAINABILITY RENÉ ZAHND 3 REAL ESTATE MARTIN KALEJA 4 ASSET MANAGEMENT ANASTASIUS TSCHOPP 5 FINANCIALS MARCEL KUCHER 6 WRAP-UP AND OUTLOOK RENÉ ZAHND 7 Q&A Zurich | 26 October 2021 Capital Markets Day 2021 28
Slide 29: Capital management 2021+
FINANCIALS Capital management 2021+ CAPITAL RECYCLING CAPITAL MANAGEMENT ▪ Market environment: Use of current market ▪ Balance sheet structure: Optimised opportunities to further focus the portfolio management of the future capital structure by (prime locations and real estate) means of clearly defi
Slide 30: Financing of development pipeline through capital recycling...
FINANCIALS Financing of development pipeline through capital recycling... ILLUSTRATIVE DEVELOPMENT OF INVESTMENTS AND SALES ▪ Project pipeline: Secured project pipeline of around in CHF mn CHF 2 bn; of which around 1 bn under construction and additional rental potential of CHF >80 mn until 400 Pipel
Slide 31: ...allows significant reduction of LTV without capital measures
FINANCIALS ...allows significant reduction of LTV without capital measures ILLUSTRATIVE DEVELOPMENT LTV ▪ Valuation: lifting of implied valuation reserves over the in net-debt/EBITDA multiples and % coming years 12 44% ▪ Capitalisation: no increase in debt capital and no need to raise equity capital
Slide 32: Example for «Capital Recycling»
FINANCIALS Example for «Capital Recycling» ▪ Sale of existing properties, Horgen example (January ▪ YOND project development, Zurich (2017 – 2020): 2020) New construction of flexible service and commercial UBS package; little scope for further development due to space on building land reserve, fully
Slide 33: Active implementation since the 1st half of 2021
FINANCIALS Active implementation since the 1st half of 2021 DEVELOPMENT REAL ESTATE PORTFOLIO in CHF mn Valuation gains 144.5 12 457.6 Sales Purchases Investments 12 322.6 112.5 18.1 -140.1 ▪ Capital Recycling: Consisting of sales and purchases as well as investments; have roughly balanced each othe
Slide 34: Capital Management: Optimisation of the balance sheet
FINANCIALS Capital Management: Optimisation of the balance sheet PRINCIPLES 1 Balanced mix 2 Flexibility 3 Financing costs 4 Homogeneity of 5 Minimise 6 Best-in-class IR of equity and through at the lower end bank/capital refinancing for all investor debt in the diversification of of the market mark
Slide 35: Agenda
AGENDA 1 INTRODUCTION RENÉ ZAHND 2 REAL ESTATE MARTIN KALEJA 3 ASSET MANAGEMENT ANASTASIUS TSCHOPP 4 FINANCIALS MARCEL KUCHER 5 SUSTAINABILITY RENÉ ZAHND 6 WRAP-UP AND OUTLOOK RENÉ ZAHND 7 Q&A Zurich | 26 October 2021 Capital Markets Day 2021 35
Slide 36: Outlook and objectives
WRAP-UP Outlook and objectives EXPECTATIONS BUSINESS YEAR 2021 Growth rental income: >2.5%* Vacancy rate: 4.6% – 4.8% Growth EBIT: >5%* MIDIUM TERM TARGETS REAL ESTATE SERVICES Portfolio Stable volume of CHF ~12 – 13 billion Assets under management CHF >7.0 billion Vacancies 2021+ 4% in the medium t
Slide 37: Towards a comprehensive real estate investment platform
WRAP-UP Towards a comprehensive real estate investment platform SHARES BONDS FUNDS SPIF THIRD-PARTY WINCASA MANDATES Currently 7th largest listed Convertible bonds, Non-listed funds for Investment foundation Asset management Real estate services for real estate company in bonds, and green bonds qual
Slide 38: We create living spaces
WE CREATE LIVING SPACES
Slide 39: Investor relations / Media relations
Investor relations Media relations 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.tomic@sps.sw
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