Defama Deutsche Fachmarkt Ag · XETR:DEF

Defama Deutsche Fachmarkt — Investor Presentation (April 2022)

30 slides from Defama Deutsche Fachmarkt's investor presentation, April 2022

1. Slide 1: Company Presentation

   Company Presentation DEFAMA Deutsche Fachmarkt AG April 2022

2. Slide 2: Equity Story

   EQUITY STORY DEFAMA acquires: Pasewalk, Mecklenburg Western Pomerania • Well‐established retail parks and small shopping centres • Chain stores with strong solvency as (anchor) tenants • Little vacancies and/or investment needs • Purchase price per property usually between €1m and €5m • Mainly locat

3. Slide 3: Equity Story: Three good reasons for our strategy

   EQUITY STORY Three good reasons why we pursue this strategy: Property size usually Too small for most Favourable prices due to between €1m and €5m institutional investors lack of competition Focus on typical local No issues with Sustainable rentability supply centres e‐commerce substitution of the o

4. Slide 4: Investment Case: Value creation on several levels (I)

   INVESTMENT CASE Value creation on several levels (I) • Acquisition of properties with initial yield of 10% p.a. • Refinancing of > 80% of investment with app. 2% p.a. possible Albstadt, Baden‐Wuerttemberg little equity needed, therefore high return on equity FFO per share in € • Strong growth due to

5. Slide 5: Investment Case: Value creation on several levels (II)

   INVESTMENT CASE NAV per share Value creation on several levels (II) in € 16.86 16 • Laborious single purchases at favourable prices 11.02 13.46 12 8.42 • Professionally managed portfolios trade 8 5.50 at much higher multiples on net rent 4 0 NAV per share +207% 2016 2016 2017 2018 2018 2019 2020 202

6. Slide 6: Management

   MANAGEMENT Matthias Schrade (CEO) Matthias Stich (COO) • Many years of experience as a • More than 20 years working for financial analyst and entrepreneur the BBE/IPH Group • Excellent network in the areas of • Specialist in valuation and (re‐) retail, real estate and banking development of retail r

7. Slide 7: Management: Supervisory Board

   MANAGEMENT Supervisory Board Peter Schropp (Chairman) • Managing Director of several real estate companies within Primepulse Group • Until 9/2014 Member of the Management Board of VIB Vermögen AG responsible for Real Estate • Significantly involved in the expansion of the portfolio to just under €1b

8. Slide 8: Portfolio Key Figures

   PORTFOLIO Key Figures (as of 31 March 2022) Locations 51 Net Rent (annualised) €17.2m Lettable Space 222,709 sqm Occupancy Rate 95% Ø Lease Term (WALT) 4.7 years Portfolio Value €225m • 80% of total net rent is generated from chain stores with strong credit ratings • Contracts with anchor tenants ha

9. Slide 9: Portfolio: Largest Tenants

   PORTFOLIO Größte Mieter Verträge Anteil Net Rent by Industry Kaufland/LIDL 6 11.3 % toom/B1 5 10.6 % EDEKA/Netto/trinkgut 11 9.8 % REWE/Penny 8 7.3 % JYSK (= Dän. Bettenlager) 11 5.2 % Aldi Nord 6 4.8 % NORMA 7 3.5 % KiK 8 2.6 % Herkules‐Baumarkt (Edeka) 1 2.4 % TEDi 9 2.1 % Takko 6 2.0 % „Top 10“ l

10. Slide 10: Financing

    FINANCING Maturity Profile incl. Repayments Key Figures (as of 31 Dectember 2021) in €m Number of financing partners 35 24 Bank loans €123m 16 Ø Interest rate 2.08% 8 Ø Initial repayment 4.49% 0 Ø Fixed interest 7.1 years Loan‐to‐value‐ratio (LTV) 59.8% Maturity of Fixed Interest Repayments • Financ

11. Slide 11: Highlights 2021: Sale REWE City Center Bleicherode

    HIGHLIGHTS 2021 Transaction/Sale REWE City Center Bleicherode Year of construction: 1993 Lettable space: 4,044 sqm Occupancy rate: 88% Annual net rent: €350k Tenants i.a. REWE, Ernsting‘s family, pharmacy Bleicherode, Thuringia Ad hoc announcement dated February 24th, 2021 • First sale in company hi

12. Slide 12: Highlights 2021: HanseCenter Gardelegen

    HIGHLIGHTS 2021 Transaction/Purchase HanseCenter Gardelegen  Year of construction: 1996  Plot size: 41,355 sqm  Lettable space: 15,850 sqm  Occupancy rate: 67%  Purchase price: €8m  Annual net rent (target): > €1m Gardelegen, Saxony‐Anhalt  Aquisition via foreclosure sale  Key tenant is Kauf

13. Slide 13: Highlights 2021: Local supply center Barsinghausen

    HIGHLIGHTS 2021 Transaction/Purchase Local supply center Barsinghausen  Year of construction: 1985 / 2005  Plot size: 6,907 sqm  Lettable space: 3,385 sqm  Occupancy rate: 100%  Purchase price: €3.6m  Annual net rent: €340k Barsinghausen, Lower Saxony  Acquisition at 10.6 times annual net ren

14. Slide 14: Highlights 2021: Retail Park Hof

    HIGHLIGHTS 2021 Transaction/Purchase Retail Park Hof  Year of construction: 1991  Plot size: 24,824 sqm  Lettable space: 6,685 sqm  Occupancy rate: 89%  Purchase price: €6.7m  Annual net rent (target): > €570k Hof, Bavaria  Acquisition at 11.7 times annual net rent  Located in a heavily freq

15. Slide 15: Highlights 2021: Retail Park Melsungen

    HIGHLIGHTS 2021 Transaction/Purchase Retail Park Melsungen  Year of construction: 1999  Plot size: 25,834 sqm  Lettable space: 8,366 sqm  Occupancy rate: 100%  Purchase price: €4.5m  Annual net rent: €450k Melsungen, Hesse  Acquisition at 10 times annual net rent  Site is located about 25 km

16. Slide 16: Highlights 2021: Supermarket in Cologne-Rondorf

    HIGHLIGHTS 2021 Transaction/Purchase Supermarket in Cologne‐Rondorf  Year of construction 1: 1999 / 2021  Plot size 2: 4,686 sqm  Lettable space: 1,271 sqm  Occupancy rate: 100%  Purchase price: €2.15m  Annual net rent: €162k Cologne‐Rondorf, North Rhine‐Westphalia  Acquisition at 13 times an

17. Slide 17: Highlights 2021: Refurbishment for ALDI in Löwenberg

    HIGHLIGHTS 2021 Refurbishment for ALDI in Löwenberg (I) • Expansion and modernisation of the ALDI market • ALDI was almost continuously open during the renovation • Reopening has taken place at December 10th, 2021 Total plot before the refurbishment The driveway was relocated a little to the west Th

18. Slide 18: Highlights 2021: Prolongation or new contracts with important tenants

    HIGHLIGHTS 2021 Prolongation or new contracts signed with important tenants in 2021 ALDI Brand‐Erbisdorf Edeka Pasewalk ABC Schuhe Staßfurt Gym Büdelsdorf Futterhaus Gardelegen Joint practice Rendsburg KiK Dinslaken Norma Höhn + Puderbach + Sonnefeld Penny Wildau REWE Wittenburg „Andere sprechen Med

19. Slide 19: Preliminary Figures 2021

    PRELIMINARY FIGURES 2021 Portfolio Value Sales in €m in €m CAGR +22% CAGR +17% +32% 218 +32% 17.0 179 14.6 137 11.2 108 9.1 73 5.8 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Net Profit Funds from Operations (FFO) in €m in €m CAGR +101% CAGR +20% +42% 5.0 1 +29% 7.1 5.9 4.6 2.5 3.6 2.1 1.4 1.7

20. Slide 20: Preliminary Figures 2021: Per-share figures

    PRELIMINARY FIGURES 2021 Earnings per share FFO per share in € in € CAGR +101% 1.14 CAGR +20% +36% +22% 1.60 1.33 0.57 1.14 0.51 1.01 0.38 0.46 0.73 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Dividend per share in € Guiding principles for expansion CAGR +6% +11% 0.48 0.51 1 • Company growth n

21. Slide 21: Current Development: Wolfsburg-Nordsteimke

    CURRENT DEVELOPMENT Transaction/Purchase Local supply center Wolfsb.‐Nordsteimke  Year of construction: 2009  Plot size: 13.775 sqm  Lettable space: 6.993 sqm  Occupancy rate: 67%  Annual net rent (target): €600k  Purchase price not disclosed on request Wolfsburg‐Nordsteimke, Lower Saxony of t

22. Slide 22: Current Development: Investments within existing portfolio

    CURRENT DEVELOPMENT Investments within the existing portfolio (examples) Büdelsdorf • Adding an elevator at East wing completed • Expansion of TEDi‘s area, roof extension, in total creation of area for a fitness studio in process, completion est. 8/2022 app. €1.5m Gardelegen • Refurbishment for Futt

23. Slide 23: Status and Outlook: Guidance for 2022

    STATUS AND OUTLOOK Guidance for 2022 Preliminary figures 2021 • Net Profit (German GAAP): €3.5m €5.0m, thereof (without disposals) ~ €2m from disposal • Funds From Operations (FFO): €8.5m €7.1m €1.92 per share 1 €1.60 per share • Annualised FFO: €10m €8.3m • Dividend: > €0.51 per share €0.51 per sha

24. Slide 24: Status and Outlook: Long-term guidance DEFAMA 2025

    STATUS AND OUTLOOK Portfolio Value in €m Long‐term guidance „DEFAMA 2025“ 260‐300 published December 7th, 2020 218 179 137 • Portfolio value reaches €260m to €300 108 • Annualised net rents of €24m 2018 2019 2020 2021e 2025e • FFO of > €11m resp. > €2.50 per share Net Rents (annualised) Funds from O

25. Slide 25: Status and Outlook: On track for further growth

    STATUS AND OUTLOOK DEFAMA on track for further growth • 2021 aquisition volume close to €30m above typical yearly level • Annualised FFO („run rate“) already €8.5m resp. 1.93 € per share 1 • Additional employee increased capacity for real estate transactions • Potentially higher annual aquisition vo

26. Slide 26: Status and Outlook: Capital increase key data

    STATUS AND OUTLOOK Key data for carried out capital increase (CI) • Placement of 380,000 new shares, meaning 8.6% of the share capital • Issue price with €27 close to average stock exchange price during the last weeks In total • Execution without subscription rights 3 purchases 30.9.‐7.10.2022 • Gro

27. Slide 27: Share

    SHARE Share price development since IPO at 13 July 2016 Shareholder structure 2 28 € 26% 20 € 12 € 2% 72% 4€ Jul. 16 Jul. 17 Jul. 18 Jul. 19 Jul. 20 Jul. 21 WKN / ISIN A13SUL / DE000A13SUL5 Stock exchange Munich (m:access), Frankfurt, Xetra MSC Invest GmbH / M. Schrade Supervisory Board Number of sh

28. Slide 28: Why to Invest

    WHY TO INVEST Highly Profitable thanks to favourable purchase prices and lean structures Solid Financing via object subsidiaries with local and savings banks Down‐to‐Earth Team with great experience in the real estate and retail sector Shareholder‐friendly with high transparency and yearly dividend

29. Slide 29: Contact

    CONTACT DEFAMA Deutsche Fachmarkt AG Nimrodstr. 23 D 13469 Berlin www.defama.de Matthias Schrade CEO Telephone +49 (0) 30 / 555 79 26 ‐ 0 Fax +49 (0) 30 / 555 79 26 ‐ 2 Email schrade@defama.de Zeitz, Saxony‐Anhalt Company Presentation DEFAMA Deutsche Fachmarkt AG 29

30. Slide 30: Disclaimer

    DISCLAIMER Important Notice: Forward Looking Statement The information or opinions contained in this document have not been independently verified and no express or implied warranty or representation is made as to their suitability, accuracy or completeness or the recipient may not rely on them. Thi

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