Swiss Prime Site Ag · SIX:SPSN
Swiss Prime Site — FY2020 Earnings Presentation
44 slides from Swiss Prime Site's earnings presentation, Feb 25, 2021
Slide 1: Results Financial Year 2020
RESULTS FINANCIAL YEAR 2020 ZURICH, 25 FEBRUARY 2021
Slide 2: Agenda
AGENDA 1 INTRODUCTION AND 2020 IN BRIEF 2 DEVELOPMENT PROJECTS AND ESG 3 KEY FINANCIAL FIGURES 4 OUTLOOK AND EXPECTATIONS 2021+ Zurich | 25 February 2021 Results Financial Year 2020 2
Slide 3: Equity ratio increased and leverage reduced
INTRODUCTION AND 2020 IN BRIEF Equity ratio increased and leverage reduced SHAREHOLDERS’ EQUITY NAV PER SHARE* in CHF million in CHF 5 459 6 086 95.41 86.34 +11.5% 2019 2020 +10.5% 2019 2020 EQUITY RATIO LOAN-TO-VALUE (LTV) in % in % 44.4 47.8 45.7 41.9 +3.4 pp 2019 2020 -3.8 pp 2019 2020 * excludin
Slide 4: EBIT up considerably due to profit from sale of Tertianum
INTRODUCTION AND 2020 IN BRIEF EBIT up considerably due to profit from sale of Tertianum EBIT EXCLUDING REVALUATIONS RETURN ON EQUITY (ROE)* in CHF million in % 559 8.5 425 6.3 +31.5% 2019 2020 +2.2 pp 2019 2020 PROFIT* EARNINGS PER SHARE* in CHF million in CHF 477 6.27 316 4.14 +51.0% 2019 2020 +51
Slide 5: Portfolio growth and stable revaluations despite COVID-19
INTRODUCTION AND 2020 IN BRIEF Portfolio growth and stable revaluations despite COVID-19 PROPERTY PORTFOLIO REVALUATIONS in CHF million in CHF million 12 323 203 203 11 765 +4.7% 2019 2020 +0.0% 2019 2020 RENTAL INCOME* VACANCY RATE in CHF million in % 437 431 5.4 5.1 4.7 -1.5% 2019 2020 +0.4 pp 201
Slide 6: COVID-19: impact on the Swiss Prime Site Group (1|2)
INTRODUCTION AND 2020 IN BRIEF COVID-19: impact on the Swiss Prime Site Group (1|2) ▪ Retail and gastronomy spaces closed, with significant ▪ Zurich store (except food market) closed for eight weeks indirect impact on «parking» type of use as well (17 March until 11 May 2020) ▪ Significant impact on
Slide 7: COVID-19: impact on the Swiss Prime Site Group (2|2)
INTRODUCTION AND 2020 IN BRIEF COVID-19: impact on the Swiss Prime Site Group (2|2) ▪ Delays in capital increases, transactions and ▪ More complicated working conditions due to working from developments for the client Swiss Prime Investment home and split locations Foundation ▪ Unusually high number
Slide 8: Swiss Prime Site Immobilien: vacancies reduced considerably to 5.1%
INTRODUCTION AND 2020 IN BRIEF Swiss Prime Site Immobilien: vacancies reduced considerably to 5.1% PROPERTY PORTFOLIO 2019 2020 VACANCY RATE in CHF million in % (Group) Total 11 765.4 12 322.6 9 8 7.4 6.8 6.6 6.7 6.4 of which projects | developments 684.5 829.5 6.4 6.1 5.5 7 5.2 5.4 187 185 6 4.7 4.
Slide 9: Swiss Prime Site Immobilien: success with lettings and transactions
INTRODUCTION AND 2020 IN BRIEF Swiss Prime Site Immobilien: success with lettings and transactions COMMENTS ▪ Various spaces (e.g. in Zurich and Zug) let or re-let to international and Swiss companies, some under improved terms; total 85 115 m2 or 5.1% of rentable space (7% reduction in vacancies, 1
Slide 10: Maturities of existing rental contracts
INTRODUCTION AND 2020 IN BRIEF Maturities of existing rental contracts MATURITIES OF RENTAL CONTRACTS* COMMENTS in % as at 31 December 2020 ▪ Structure: Balanced maturity of existing rental Under 1 year 80% already extended 8.0 contracts in the portfolio with a value of CHF 12.3 Over 1 year 50% alre
Slide 11: Swiss Prime Site Solutions: dynamic real estate asset manager
INTRODUCTION AND 2020 IN BRIEF Swiss Prime Site Solutions: dynamic real estate asset manager COMMENTS ▪ Assets under management increased to CHF 3.0 billion (2019: CHF 2.3 billion) of which immoveris CHF +0.4 billion (integration) and Swiss Prime Investment Foundation CHF +0.3 billion; additional de
Slide 12: Wincasa: growth of assets under management
INTRODUCTION AND 2020 IN BRIEF Wincasa: growth of assets under management COMMENTS ▪ Assets under management increased by 1% to CHF 72.0 billion despite the tough market ▪ Turnover almost stable; composition of turnover affected by the pandemic (increase in Construction & Facility Management with lo
Slide 13: Jelmoli: strategic and operational course set
INTRODUCTION AND 2020 IN BRIEF Jelmoli: strategic and operational course set COMMENTS ▪ Operating income and EBIT heavily affected by the lockdown in spring 2020 and other pandemic-related effects; excluding lockdown, performance at previous year’s level ▪ In addition to the headquarters in Zurich,
Slide 14: Sale of Tertianum Group on 28 February 2020
INTRODUCTION AND 2020 IN BRIEF Sale of Tertianum Group on 28 February 2020 COMMENTS ▪ Impact on income statement: Drop in operating income and EBIT of ~CHF 500 million and ~CHF 34 million per annum respectively ▪ Impact on the balance sheet: CHF 304.5 million in goodwill recycling into shareholders’
Slide 15: Agenda
AGENDA 1 INTRODUCTION AND 2020 IN BRIEF 2 DEVELOPMENT PROJECTS AND ESG 3 KEY FINANCIAL FIGURES 4 OUTLOOK AND EXPECTATIONS 2021+ Zurich | 25 February 2021 Results Financial Year 2020 15
Slide 16: Project pipeline: building projects completed or scheduled
DEVELOPMENT PROJECTS AND ESG Project pipeline: building projects completed or scheduled PROJECTS YOND Schönburg West-Log Stücki Park I JED I Espace Tertianum Alto Pont-Rouge Zurich Berne Zurich Basel Schlieren Tourbillon Monthey & Lancy Plan-les-Ouates Richterswil Construction completed completed co
Slide 17: Project pipeline: strong development pipeline
DEVELOPMENT PROJECTS AND ESG Project pipeline: strong development pipeline PROJECTS Tertianum Tertianum JED II Stücki Park II Müllerstrasse maaglive Rheinstrasse Paradiso Olten Schlieren Basel Zurich Zurich Augst architecture zone plan Design plan legally valid competition authorised Planning applic
Slide 18: Project «maaglive» (1|2): Urban upgrading in Zurich West
DEVELOPMENT PROJECTS AND ESG Project «maaglive» (1|2): Urban upgrading in Zurich West COMMENTS ▪ Winning study: Sauerbruch Hutton, Berlin ▪ Project: Residential tower with roof garden and loggias («maaglive») and adjacent four-storey building («Kulturhaus»); refurbishment and conversion of the exist
Slide 19: Project «maaglive» (2|2): opening up and revitalising the area
DEVELOPMENT PROJECTS AND ESG Project «maaglive» (2|2): opening up and revitalising the area V I E W : M AS C H I N E N S T R AS S E V I E W : N E W « C O M M U N I T Y P L AZ A» V I E W : Z AH N R AD - U N D N AP H T AS T R A S S E V I E W : O F F E N E L I C H T S T R AS S E Zurich | 25 February 20
Slide 20: Expected contribution from project developments
DEVELOPMENT PROJECTS AND ESG Expected contribution from project developments PROJECT PIPELINE OVERVIEW COMMENTS ~CHF 2.0 billion CHF 83 million p.a. ▪ Projects under construction: Projects (totalling reserves CHF 780 million*) close to completion with expected CHF rental income of CHF 51 million (fr
Slide 21: ESG – Environment: carbon-neutral by 2040
DEVELOPMENT PROJECTS AND ESG ESG – Environment: carbon-neutral by 2040 COMMENTS ▪ Carbon neutrality: The ambition is to achieve carbon neutrality in the property portfolio by 2040 through a defined CO2 reduction pathway, thereby achieving the goals of the Paris Climate Agreement and the Swiss govern
Slide 22: ESG – Environment: first important milestones on CO2 pathway
DEVELOPMENT PROJECTS AND ESG ESG – Environment: first important milestones on CO2 pathway CO 2 INTENSITY OF PORTFOLIO COMMENTS kg CO2-e/m2 ▪ From 2018, measures introduced led to a significant decrease in CO2 emissions by 24% 25.7 26.1 24.1 ▪ Development projects are planned with the aim of carbon 2
Slide 23: ESG – Social: tenants, employees and other stakeholders
DEVELOPMENT PROJECTS AND ESG ESG – Social: tenants, employees and other stakeholders ▪ More than 500 rent relief requests processed by ▪ A pool of CHF 450 000 was put together by the members Swiss Prime Site Immobilien of the Board of Directors (50%) and the Executive Board ▪ Assistance provided in
Slide 24: ESG – Governance: renewal on Board of Directors continues
DEVELOPMENT PROJECTS AND ESG ESG – Governance: renewal on Board of Directors continues TON BÜCHNER | CHAIRMAN (SINCE 2020) BARBARA A. KNOFLACH (ELECT IO N 2021) ▪ 1965, Dutch-Swiss dual citizen ▪ 1965, Austrian citizen ▪ Studied civil engineering (MSc TU Delft, NL), MBA (IMD, CH) ▪ Business degree M
Slide 25: ESG – Governance: changes in management
DEVELOPMENT PROJECTS AND ESG ESG – Governance: changes in management NINA MÜLLER | CEO (SINCE 2020) MARTIN KALEJA | CEO (SINCE 2021) ANASTASIUS TSCHOPP | CEO ( E B S I N C E 2 0 2 1 ) JELMOLI SWISS PRIME SITE IMMOBILIEN SWISS PRIME SITE SOLUTIONS ▪ 1969, Austrian citizen ▪ 1972, German citizen ▪ 197
Slide 26: Agenda
AGENDA 1 INTRODUCTION AND 2020 IN BRIEF 2 DEVELOPMENT PROJECTS AND ESG 3 KEY FINANCIAL FIGURES 4 OUTLOOK AND EXPECTATIONS 2021+ Zurich | 25 February 2021 Results Financial Year 2020 26
Slide 27: Key events and their impact on the financial figures
KEY FINANCIAL FIGURES Key events and their impact on the financial figures SALE OF TERTIANUM COVID-19 TAX Operation of 80 residential and care The pandemic impacted the High tax income of CHF 172.5 million centres and residences sold; operating operational business activities at (non-cash) in 2019 d
Slide 28: Excluding impact of COVID-19, rental income only slightly below 2019
KEY FINANCIAL FIGURES Excluding impact of COVID-19, rental income only slightly below 2019 CHANGE IN NET RENTAL INCOME (GROUP) COMMENTS in CHF million ▪ Stable rental income without effects from COVID-19 486.9 ▪ COVID-19: drop in turnover-linked and parking rents of CHF 4 million taken into account
Slide 29: EBIT increase of 21.3%; excluding revaluations of 31.5%
KEY FINANCIAL FIGURES EBIT increase of 21.3%; excluding revaluations of 31.5% OPERATING INCOME EBIT BY SEGMENT COMMENTS BY SEGMENT in CHF million in CHF million 2019 2020 ▪ Impact of the coronavirus pandemic on the Real Estate segment was CHF –12.7 million Real Estate 572.9 555.0 ▪ Profit from the s
Slide 30: Impact sale of Tertianum: reconciliation
KEY FINANCIAL FIGURES Impact sale of Tertianum: reconciliation RECONCILIATIOIN KEY FIGURES in CHF milliion 2019 2020 Operating income 2019 as published 1 259 Operating income Operating income 2019 excl. Tertianum 2020 excl. Tertianum Operating income Rental income from 2020 as published leased prope
Slide 31: Financial expenses lower due to attractive refinancing
KEY FINANCIAL FIGURES Financial expenses lower due to attractive refinancing INCOME STATEMENT SWISS PRIME SITE GROUP COMMENTS in CHF million 2019 2020 ▪ Income from developments (recurring) and profit from Operating income 1 258.8 792.9 sale of existing properties totalling CHF 36.1 million Revaluat
Slide 32: Property portfolio grows to CHF 12.3 billion
KEY FINANCIAL FIGURES Property portfolio grows to CHF 12.3 billion PROPERTY PORTFOLIO GROWTH (FAIR VALUE) COMMENTS in CHF million Purchases ▪ Property portfolio grew by 4.7% compared to the 84.0 12 322.6 Projects end of 2019 251.4 ▪ Total 185 properties (end of 2019: 187) with a total Other value of
Slide 33: NAV per share after deferred tax up considerably by 11.5%
KEY FINANCIAL FIGURES NAV per share after deferred tax up considerably by 11.5% CHANGE IN SHAREHOLDERS’ EQUITY COMMENTS in CHF million Goodwill from sale of group companies ▪ NAV per share after deferred tax increased to CHF 303.5 6 085.6 80.11 per share; +11.5% compared to previous year -1.3 Capita
Slide 34: Interest rate on borrowed capital improved to 1.1%; duration extended
KEY FINANCIAL FIGURES Interest rate on borrowed capital improved to 1.1%; duration extended FINANCING STRUCTURE FINANCIAL LIABILITIES COMMENTS in CHF million 5 380.7 5 164.3 ▪ Currently 11 bonds outstanding, totalling 14.3 4.3 0.3 2019 2020 ~CHF 2.8 billion with maturity dates to 2031; 543.9 Ø inter
Slide 35: Financial contribution to sustainability – green bonds
KEY FINANCIAL FIGURES Financial contribution to sustainability – green bonds COMMENTS ▪ Two bonds issued with a total volume of CHF 600 million in accordance with the criteria of the «Green Bond Framework» 2028 2029 Issuing volume (CHF million) 300 300 Interest rate (in %) 0.375 0.65 Term to maturit
Slide 36: Agenda
AGENDA 1 INTRODUCTION AND 2020 IN BRIEF 2 DEVELOPMENT PROJECTS AND ESG 3 KEY FINANCIAL FIGURES 4 OUTLOOK AND EXPECTATIONS 2021+ Zurich | 25 February 2021 Results Financial Year 2020 36
Slide 37: Macro outlook
OUTLOOK AND EXPECTATIONS 2021+ Macro outlook ECONOMY RATES / INFLATION POLITICS ▪ GDP: SECO is forecasting growth ▪ The Swiss National Bank is ▪ Determination of the position in of 3.0% for 2021 and rising maintaining its expansionary relation to the framework agreement unemployment monetary policy
Slide 38: Market outlook
OUTLOOK AND EXPECTATIONS 2021+ Market outlook OFFICE RETAIL HOSPITALITY ▪ Working from home is less ▪ Swiss retail more stable as a whole in ▪ Low occupancy in hospitality sector pronounced than in Europe as a 2020, despite the pandemic; different in 2020 due to lack of tourists from whole due to sh
Slide 39: Medium-term goals Swiss Prime Site
OUTLOOK AND EXPECTATIONS 2021+ Medium-term goals Swiss Prime Site REAL ESTATE SEGMENT SERVICES SEGMENT Level Targets Group companies Targets Portfolio Stable volume of CHF ~12 billion Assets under management CHF ~7 billion Vacancies 2021+ EBIT contribution to the group CHF ~30 million in medium term
Slide 40: Guidance Swiss Prime Site 2021
OUTLOOK AND EXPECTATIONS 2021+ Guidance Swiss Prime Site 2021 Comments ▪ Financial years 2019 and 2020 affected by one-off special effects concerning 2019 → extraordinary tax income of CHF 172.5 million the guidance 2020 → profit from the sale of Tertianum of CHF 204.2 million ▪ Revaluation effects
Slide 41: Dividend policy
OUTLOOK AND EXPECTATIONS 2021+ Dividend policy Dividend of CHF 3.35 per share corresponds to an highly attractive yield of 3.9% (basis: closing price as at 31 December 2020); distribution of an DIVIDENDS 2021 ordinary dividend (50%) and a withholding tax-exempt distribution from capital contribution
Slide 42: We create living spaces
WIR CREATE LIVING SPACES
Slide 43: 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 44: 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