Patrizia Se · XETR:PAT
Patrizia — Investor Presentation (September 2024)
64 slides from Patrizia's investor presentation, September 2024
Slide 1: Company Presentation September 2024
Company Presentation September 2024 1
Slide 2: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 2
Slide 3: At a glance: PATRIZIA to become a smart Real Asset Player
At a glance PATRIZIA to become a smart Real Asset Player Platform Funds Financials Total service fee income (EUR): 40 56bn 137m years of real asset experience Assets under Management (EUR) H1 2024 Top 2 EBITDA (EUR): fully independent 10y 19m investment manager for real estate in Europe1 fund outper
Slide 4: PATRIZIA evolved from a German real estate to a global real asset investment manager
At a glance PATRIZIA evolved from a German real estate to a global real asset investment manager 56bn 2024 Strategy 2030 | PATRIZIA aims to become a EUR 100bn AUM smart Real Assets player in 2030 AUM 2022 Conversion of PATRIZIA’s legal structure to a Societas Europaea “SE” 2022 Whitehelm Capital, Ad
Slide 5: Recent developments boost transformation to smart Real Asset Player
At a glance Recent developments boost transformation to smart Real Asset Player Product | First closings for European Europe Infrastructure Fund III and Infrastructure Debt Partners II Product | Continued successful PATRIZIA opens new Corporate | London expansion of PATRIZIA’s international hub in L
Slide 6: Global reach combined with local expertise and local client relationships
At a glance Global reach combined with local expertise and local client relationships 27 PATRIZIA offices globally 500+ to service clients & manage real assets locally institutional clients 40+ boutique operating partners 7,000+ private clients worldwide 40+ different nationalities working at 30+ ge
Slide 7: One-stop shop for a broad variety of clients' investment needs
At a glance One-stop shop for a broad variety of clients’ investment needs Market-leading Funds Bespoke Single Asset/Portfolio Global Investment Multi Strategy in Real Assets Account Solutions Deal Opportunities Solutions Solutions • Open-/closed-ended • Individual, nimble strategies • Sourcing, und
Slide 8: PATRIZIA offers full services across the value chain
At a glance PATRIZIA offers full services across the value chain Modular services offered to global clients Investment Investment Strategy Fund Management Transactions Asset Development Solutions & Research (i.a. Portfolio management, (Sourcing, Acq., Sales) Management Management reporting) Capital
Slide 9: Real estate and infrastructure investments offer various opportunities for global clients
At a glance Real estate and infrastructure investments offer various opportunities for global clients Transactions Overview Selected investments Milan (infrastructure, acquisition) investment in leading Atlantia (infrastructure debt, acq.) Rigsted Outlet (real estate, acq.) independent Italian waste
Slide 10: PATRIZIA SE is managed by an international and diverse leadership team
At a glance PATRIZIA SE is managed by an international and diverse leadership team BOARD OF DIRECTORS International, diverse & experienced Board of Directors + Uwe H. Jonathan Feuer Saba Wolfgang Asoka Reuter (Chair) (Deputy Chair) Nazar Egger Wöhrmann Independent Independent Independent Audit Commi
Slide 11: PATRIZIA ranks as 2nd largest independent real estate investment manager in Europe
At a glance PATRIZIA ranks as 2nd largest independent real estate investment manager in Europe Top 10 Managers based on European real assets (EUR m) Swiss Life Asset Managers 1 insurance group subsidiary AXA IM Alts 2 insurance group subsidiary Blackstone Group 3 fully independent alternatives manag
Slide 12: Strategy: How to position ourselves in this world in transition
At a glance Strategy | How to position ourselves in this world in transition s sustainable • Shaping sustainable communities • Capturing the future mega trends m • Strengthen our independent platform market leading • Leverage cutting edge research • Innovative product and services smart a • Proven e
Slide 13: Our vision is to become the go-to manager for smart real asset solutions
At a glance Our vison is to become the go-to manager for smart real asset solutions with EUR >100bn AUM 1. MARKET DEVELOPMENT 3. AUM GROWTH PROJECTION UNTIL 2030 AUM CAGR (2024-2030)1 Real 6.5% 6.8% Estate 2.7% PATRIZIA PATRIZIA Infra- 17.2% structure 8.1% 12.4% Market (Global) Market (Global) Marke
Slide 14: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 14
Slide 15: Our Equity Story lines out our uniqueness as a real asset expert
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market We are active in alternatives, a stable and structurally growing asset class, with a long-term investment horizon and favorable cash profiles Giving Back to Society Increased Diversification PATRIZ
Slide 16: Long-term dynamics support demand for real asset investments
Equity Story Long-term dynamics support demand for real asset investments Intense pension reform efforts around the globe following increased life Structural growth market expectancy drives demand for funded pension programs managed by the private sector - pension funds are PATRIZIA's largest client
Slide 17: Real Assets offer long-term value and growth opportunities
Equity Story Real Assets offer long-term value and growth opportunities • Changing amenities regarding living, working and purchasing creates a continuous demand for future-proof real estate REAL ESTATE • Significant value opportunities through active asset management • Relatively new asset class wh
Slide 18: Multi-trillion USD infrastructure gap offers significant AUM growth opportunities
Equity Story Multi-trillion USD infrastructure gap offers significant AUM growth opportunities Annual average infrastructure need (2017-2035) | in USD trillion 0.5 0.5 1.1 3.7 0.1 0.1 0.4 0.9 Roads Rail Ports Airports Power Water Telecom Total Source: McKinsey Global Institute PATRIZIA | © 2024 18
Slide 19: Our Equity Story: Increased Diversification
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification Our continuously increasing product PATRIZIA portfolio covers various asset classes and regions, stabilising income by diversification Financial Fle
Slide 20: Broad diversification supports resilience of AUM
Equity Story Broad diversification supports resilience of AUM EUR 56.0 bn assets under 3% 3% 3% 82 % resilient Core 6% management and Core plus 5% 18% 3% 26% strategies 3% 4% 17% 4% AUM by AUM by AUM by 53% 17% risk style 7% geography sector 12% 65% 4% 11% 9% 27% Germany UK & Ireland Office Resident
Slide 21: Long-duration AUM and equity rich client base support predictable management fees
Equity Story Long-duration AUM and equity rich client base support predictable management fees Maturity breakdown of AUM1 Equity commitments by clients2 31% 4% 74% average Fund-LTV 10% 61% 2% 48% 33% 3bn 84% 22% firepower for 8% investments (EUR) >10 years/unlimited 5–10 years Top 1 Top 5 Top 10 Top
Slide 22: Partnerships with a mix of global clients foster our understanding of local requirements
Equity Story Partnerships with a mix of global clients foster our understanding of local requirements Client philosophy 30% Pension funds 39% Banking institutions Regional presence to understand client 500+ Insurance companies requirements better Institutional Corporates, endowments 4% clients Other
Slide 23: Our Equity Story: Future Proof
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Financial Flexibility Future Proof We offer investment solutions in line with megatrends like Demographics, Digital- Asset Expertise lisati
Slide 24: RE-Infra marks a decisive break with sector-based investment strategies
Equity Story RE-Infra marks a decisive break with sector-based investment strategies Case studies for RE-Infra The rationale for RE-Infra: The DUEL trends Smart Cities Urbanisation 2.0 Digital Transition: Integration of earlier-stage smart technology and D digital solutions to enhance urban efficien
Slide 25: PATRIZIA provides attractive investment solutions
Equity Story PATRIZIA provides attractive investment solutions DIGITAL TRANSITION URBAN TRANSITION Fibre & wireless Smart buildings Data centres D U Urban logistics Smart city Mixed-use districts networks infrastructure E L Renewable energy, Decarbonisation Waste to energy & Student housing Social i
Slide 26: ESG incorporation improves every step of the investment process
Equity Story ESG incorporation improves every step of the investment process Product Fund Sourcing & Asset Development & Development Management Acquisitions Management Refurbishment Exit/Sales • Top-down analysis of • ESG Fund Policy with • Sustainable investment • Strategic ESG Action Plan • Sustai
Slide 27: Our Equity Story: Asset Expertise
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Our combination of local people on the ground, strong and innovative in-house Financial Flexibility research and experience throughout Futu
Slide 28: Experts on the ground understanding local requirements serve global client base
Equity Story Experts on the ground understanding local requirements serve global client base 45% female staff in the business (>36% across real assets professionals) ~ 900 ~7 years dedicated professionals average tenure across real assets globally professionals, longer in leadership roles PATRIZIA o
Slide 29: PATRIZIA funds outperformed unlisted European real estate benchmark on a long term basis
Equity Story PATRIZIA funds outperformed unlisted European real estate benchmark on a long term basis PATRIZIA fund performance vs. INREV Index performance1 7.1% 1.6% ⚫ PATRIZIA fund performance outperformance ⚫ INREV Index (average) 4.3% 5.5% 1.6% 2.7% 0.9% outperformance outperformance 2.7% 1.8% 1
Slide 30: Retail investor business shows strong footprint and further growth opportunities
Equity Story Retail investor business shows strong footprint and further growth opportunities Investment volume | EUR m Facts 1,750 1,500 • Investment volume exceeds EUR 1.7bn 1,250 • More than 10,000 subscriptions signed 1,000 • Average cash distribution for the financial years 2016 to 2023 is 4.48
Slide 31: Our Equity Story: Financial Flexibility
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Financial Flexibility Future Proof Our balance sheet is net cash positive with a high net equity ratio, enabling strategic M&A, organic gro
Slide 32: AUM growth translates into growing and recurring management fees
Equity Story AUM growth translates into growing and recurring management fees 60.0 – 59.1 54.0 60 57.3 50 47.0 48.6 +19.4 % p.a. 44.5 300 Management fee 41.0 40 growth 2012 – 2023 251.1 241.0 30 209.1 193.4 21.9 190.9 175.3 150 20 18.6 16.6 11.8 14.6 93.2 +21.3 % p.a. 10 6.9 81.5 89.1 68.1 AUM growt
Slide 33: Moderate valuation effects align with management expectations
Equity Story Moderate valuation effects align with management expectations AUM development H1 2024| EUR bn • AUM decreased by -2.1% to EUR 56.0bn in H1 2024 (FY 2023: EUR 57.3bn; -3.2% y-o-y) 60.0 0.8 • Acquisitions of EUR 0.8bn with the majority in -0.7 -0.2 -1.0 infrastructure, logistics, resident
Slide 34: Growth trend of fees temporarily impacted by subdued market environment
Equity Story Growth trend of fees temporarily impacted by subdued market environment Total service fee income | EUR m Covid-19 years Market shifts 348.0 346.4 320.2 327.6 324.7 100% 312.4 268.6 91.8 85.9 61.2 15% 86.1 46.6 92.5 22.5 14.7 5% 211.9 51.4 188.6 65.3 48.1 52.4 140.0 29.2 66.9 25.0 80% 19
Slide 35: Total service fee income reflective of continued low market activity
Equity Story Total service fee income reflective of continued low market activity Management fees | EUR m Transaction fees | EUR m Performance fees | EUR m 120.6 115.5 -4.2% 4.9 27.1 4.1 - 37.7% +19.5% 16.9 1.5 3.2 2.6 1.7 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 Total service fee incom
Slide 36: Operating expenses down despite inflation pressure on costs and negative tax one-off
Equity Story Operating expenses down despite inflation pressure on costs and negative tax one-off Changes in operating expenses y-o-y EUR m • Operating expenses decreased to EUR 130.7m (H1 2023: EUR 133.1m; -1.8%) >+100.0% -1.8% -2.3% -2.4% • Staff costs down -2.5% to EUR 83.6m (H1 2023: EUR
Slide 37: EBITDA decline driven by continued challenging market conditions
Equity Story EBITDA decline driven by continued challenging market conditions Composition of EBITDA | EUR m • EBITDA down -32.4% y-o-y to EUR 19.2m as market- driven decrease in total service fee income could -52.1% -1.8% not be compensated by lower operating expenses -37.7% +19.5% 16.9 1.
Slide 38: Guidance confirmed - cautious optimism for FY 2024
Guidance confirmed - cautious optimism for FY 2024 • Macro-economic climate poses challenges H1 H1 Guidance FY 2023 for most clients, particularly in real estate 2023 2024 FY 2024 AUM 57.3 57.9 56.0 54.0 – 60.0 • Client investment activity expected to pick up (in EUR bn) throughout FY 2024, assuming
Slide 39: Solid balance sheet and financial strength provide flexibility in current environment
Equity Story Solid balance sheet and financial strength provide flexibility in current environment Strong balance sheet Significant liquidity • Net debt of EUR 80m, as planned, driven EUR m 30.06.2024 EUR m 30.06.2024 by increased investment activity via Total assets 1,950.6 Bank balances, 216.8 tem
Slide 40: Co-Investments boost products, intensify client relationships and exploit opportunities
Equity Story Co-Investments boost products, intensify client relationships and exploit opportunities Third-party business| EUR bn PATRIZIA SE Balance Sheet| EUR m Cash and cash equivalents 181 10.2 Equity 1,202 AUM Co-Investments1 550 ….56.0 ∑ 45.9 Dawonia profit entitlements1 291 Liabilities 749 Ot
Slide 41: PATRIZIA's multi-dimensional engagement in Dawonia is a key performance driver
Equity Story PATRIZIA’s multi-dimensional engagement in Dawonia is a key performance driver • Dawonia is one of the largest housing companies in southern Germany with 360 employees managing around 27,000 flats spread across more than 20 prime urban environments • PATRIZIA’s successful management of
Slide 42: Balance sheet supports strategic fund investment initiatives
Equity Story Balance sheet supports strategic fund investment initiatives Major balance sheet investments as at 30 June 2024 EUR m EUR m Non-current assets Seeding Participations 588 (e.g. Dawonia) TEP VIII Real estate logistics portfolio 51 Other non-current 20 Equity 1,202 financial assets (AC) Tw
Slide 43: Our Equity Story: Giving Back to Society
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification We contribute to the enhancement of society by distributing up to 1% of our EBITDA to charitable organisations like the PATRIZIA Foundation PATRIZIA
Slide 44: We are proud to make a positive impact by donating up to 1% of our EBITDA
Equity Story We are proud to make a positive impact by donating up to 1% of our EBITDA Our Mission PATRIZIA Foundation: Our Vision PATRIZIA Foundation: 24 worldwide projects Foundation offices globally Markets with PATRIZIA Foundation projects Firm belief in education as a fundamental human right es
Slide 45: Our Equity Story lines out our uniqueness as a real asset expert
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market We are active in alternatives, a stable and structurally growing asset class, with a long-term investment horizon and favorable cash profiles Giving Back to Society Increased Diversification We con
Slide 46: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 46
Slide 47: Corporate responsibility, including ESG has always been a part of PATRIZIA's purpose
ESG activities Corporate responsibility, including ESG has always been apart of PATRIZIAs purpose Information as at 31 December 2023. PATRIZIA | © 2024 47
Slide 48: Ambitious but achievable long-term sustainability goals being continuously set into practice
ESG activities Ambitious but achievable long-term sustainability goals being continuously set into practice We know that behaving & investing responsibly is the right thing to do for our stakeholders, our communities, and the planet PATRIZIA Sustainability Goals Become a leading Be the employer of B
Slide 49: Progress on ESG goals – Become a leading sustainable investor in real assets
ESG activities Progress on ESG goals – Become a leading sustainable investor in real assets Sustainability is about taking actions that create positive impact both today and in the future UN PRI Benchmarking Results 2023 External Commitments & Industry Engagement A supporter of the TCFD since 2020,
Slide 50: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 50
Slide 51: Stable shareholder structure and upside to analyst target prices
Share Stable shareholder structure and upside to analyst target prices PATRIZIA share performance | as at 30.08.2024 Shareholder structure | as at 30.06.2024 Analyst recommendations | as at 30.06.2024 6 EUR 30.00 30.00 € 8.00% 2 First Capital Partner GmbH 25.00 25.00 € 3 Union Investment Privatfonds
Slide 52: PATRIZIA share performance - what is the implied value of the operating business?
Share PATRIZIA share performance - what is the implied value of the operating business? Share Performance last 12 months compared to peer group Markets currently assign no value or limited value to PATRIZIA’s Investment Management Platform1 70% EUR 60% 36m 50% EUR 40% 141m EUR 30% EUR 835m 20% 658m
Slide 53: Dividend for FY 2023 and new dividend policy
Share Dividend for FY 2023 and new dividend policy Dividend per share | EUR • Dividend of EUR 0.34 per share for FY 2023 backed by strong balance sheet and solid operating cash-flow +3.0% +6.7% +3.1% 0.34 +3.4% 0.32 0.33 • Sixth consecutive increase in dividends in a row +7.4% 0.30 +8.0% 0.29 • New
Slide 54: Shareholder Value Long-Term Incentive (SVL) aligns CEO's and shareholders' interests
Share Shareholder Value Long-Term Incentive (SVL) aligns CEO’s and shareholders’ interests Entry ticket: CEO to buy 316k shares Private investment worth ~ EUR 3m Operating performance 1. Recurring revenues ≥ 85% of total revenues Operating targets or requirements (by end of FY 2027) 2. EBITDA meets
Slide 55: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 55
Slide 56: Capital allocation
Appendix Capital allocation PATRIZIAs capital allocation as at 30 June 2024 Invested capital Invested capital (at Assets under Management (fair value) cost) Participations EUR m EUR m EUR m in % Third-party business 45,856.7 0.0 Co-Investments and Warehousing 10,183.7 882.1 490.2 Real estate - resid
Slide 57: Reconciliation of EBITDA
Appendix Reconciliation of EBITDA Detailed reconciliation to EBITDA EUR k H1 2024 H1 2023 Change Table in the current report Management fees (excluding result from participations) 111,561 116,011 -3.8% Reconciliation of total service fee income Shareholder contribution for management services (in re
Slide 58: Consolidated income statement
Appendix Consolidated income statement EUR k Q2 2024 Q2 2023 H1 2024 H1 2023 Change Revenues 65,614 67,935 123,597 130,797 -5.5% Other operating income¹ 4,725 2,388 9,791 5,177 89.1% Total operating performance 70,338 70,322 133,387 135,975 -1.9% Cost of materials -74 -59 -252 -118 113.0% Cost of pu
Slide 59: Consolidated balance sheet | Assets
Appendix Consolidated balance sheet | Assets Assets EUR k 30.06.2024 31.12.2023 A. Non-current assets Goodwill 379,797 376,719 Other intangible assets 84,882 89,320 Software 5,873 6,725 Rights of use 46,801 51,296 Investment property 253,251 246,481 Equipment 28,496 14,580 Participations in companie
Slide 60: Consolidated balance sheet | Equity and liabilities
Appendix Consolidated balance sheet | Equity and liabilities Liabilities EUR k 30.06.2024 31.12.2023 A. Equity Share capital 86,229 85,844 Capital reserves 68,386 65,704 Retained earnings Legal reserves 505 505 Currency translation difference 3,686 -3,853 Remeasurements of defined benefit plans acco
Slide 61: Consolidated statement of cash flows (I)
Appendix Consolidated statement of cash flows (I) EUR k H1 2024 H1 2023 Net profit/ loss for the period -8,532 5,735 Income taxes recognised through profit or loss 6,632 5,206 Financial expenses recognised through profit or loss 6,264 4,449 Financial income recognised through profit or loss -7,459 -
Slide 62: Consolidated statement of cash flows (II)
Appendix Consolidated statement of cash flows (II) Payments for investments in other intangible assets, software and equipment -15,319 -2,668 Payments received from the disposal of intangible assets and equipment 60 248 Payments for the development of investment property -14,230 0 Payments for the a
Slide 63: Financial calendar 2024/2025
Appendix Financial calendar 2024/2025 14 NOV 24 9M 2024 Interim Statement with investor and analyst conference call 27 FEB 25 2024 Preliminary results with investor and analyst conference call 21 MAR 25 2024 Annual Report 14 MAY 25 3M 2025 Financial Report with investor and analyst conference call 0
Slide 64: Contact
Appendix Contact MARTIN PRAUM Executive Director | CFO investor.relations@patrizia.ag DR JANINA ROCHELL VERENA SCHOPP DE ALVARENGA LAURA WALZ Director | Team Head Investor Relations Senior Associate | Investor Relations Senior Associate | Investor Relations T + 49 69 643505-1229 T +49 821 50910-403