Swiss Prime Site Ag · SIX:SPSN

Swiss Prime Site — Investor Day (October 2017)

42 slides from Swiss Prime Site's investor day presentation, Oct 25, 2017

1. Slide 1: Capital Markets Day 2017

   CAPITAL MARKETS DAY 2017 ZURICH, 25 OCTOBER 2017

2. Slide 2: Today's Agenda – Swiss Prime Site Capital Markets Day 2017

   Welcome address Today’s Agenda – Swiss Prime Site Capital Markets Day 2017 Management presentations 10.00 – 11.00 René Zahnd (CEO Swiss Prime Site) & Peter Lehmann (CEO Swiss Prime Site Immobilien) 11.00 – 12.30 First site visit 12.30 – 13.30 Lunch 13.30 – 16.00 Second site visit 16.00 – 17.00 Apero

3. Slide 3: We offer perspectives

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4. Slide 4: Guidance for 2017 confirmed

   CEO Swiss Prime Site Guidance for 2017 confirmed Top line  Increase operating income Profitability  Raise operating result (EBIT) before revaluations Vacancy-rate management  Cut vacancy rate Portfolio  Further growth through project developments and acquisitions Dividend policy  Maintain attra

5. Slide 5: Five reasons for project development

   CEO Swiss Prime Site Five reasons for project development INDEPENDENCE GROWTH PROFITABILITY INNOVATION SUSTAINABILITY Exploiting additional Gaining Exploiting Actively influencing income streams Acquiring further independence from opportunities for sustainable (rental income, redevelopment know inve

6. Slide 6: Development drivers – Spaces

   CEO Swiss Prime Site Development drivers – Spaces Density Basle  Immigration is a key population and Zurich Zug business driver  Cantons to implement new Federal Law Lucerne on Spatial Planning (RPG 1) by 2019 Berne Arc Lémanique Zurich | 25 October 2017 Capital Markets Day 2017 6

7. Slide 7: Development drivers – Traffic axes

   CEO Swiss Prime Site Development drivers – Traffic axes Perspective on traffic development until 2040 Mobility  General increase in traffic volumes until 2040  Further development of the traffic axes throughout the country Source: Federal Department of the Environment, Transport, Energy and Commun

8. Slide 8: Development drivers – Key themes

   CEO Swiss Prime Site Development drivers – Key themes Demography Health Education  All scenarios predict  Significant increase in  Digital «re/evolution» creates continuous increase in healthcare spending seen demand for continuing average age of Swiss over last 20 years is expected education acr

9. Slide 9: Development drivers – Opportunities for redevelopment projects

   CEO Swiss Prime Site Development drivers – Opportunities for redevelopment projects Industry 4.0 Environment  Increasing speed in automatisation and  Climate change is having significant impact on artificial intelligence general mindset  Vacant traditional industrial areas are ready  Debate abou

10. Slide 10: Development drivers – Growth & Profitability

    CEO Swiss Prime Site Development drivers – Growth & Profitability Espace Tourbillon Weltpostpark SOLD SOLD Zurich | 25 October 2017 Capital Markets Day 2017 10

11. Slide 11: Development drivers – Innovation

    CEO Swiss Prime Site Development drivers – Innovation YOND Zurich | 25 October 2017 Capital Markets Day 2017 11

12. Slide 12: Development drivers – Sustainability

    CEO Swiss Prime Site Development drivers – Sustainability Schönburg Greenhouse gas emissions cut by more than 40% (9,433 t CO2) Embodied energy use reduced by more than 30% (26,754 MWh) Zurich | 25 October 2017 Capital Markets Day 2017 12

13. Slide 13: Development drivers – Industry 4.0

    CEO Swiss Prime Site Development drivers – Industry 4.0 Medienpark Zurich | 25 October 2017 Capital Markets Day 2017 13

14. Slide 14: We provide added value

    WE PROVIDE ADDED VALUE

15. Slide 15: Real estate strategy – Focus on growth and inward densification

    CEO Swiss Prime Site Immobilien Real estate strategy – Focus on growth and inward densification Acquisition and sale of single properties Investments in innovative projects or portfolios | realisation of capital gains e.g. living habitats through the sale of development projects Focus on Growth Inwa

16. Slide 16: Real estate business model – Active portfolio and asset management

    CEO Swiss Prime Site Immobilien Real estate business model – Active portfolio and asset management 1) Acquisition 6) Sales  Scouting  Sale of developed projects and  Feasibility and return assessment properties  Transactions  Assets / projects 2) Development 1 6  Project evaluation 5) Modernis

17. Slide 17: Portfolio – Focus on Swiss economic areas | Vacancy rate cut to 5.5%

    CEO Swiss Prime Site Immobilien Portfolio – Focus on Swiss economic areas | Vacancy rate cut to 5.5% Vacancy rate in % (Group) Comments  Significant reduction in vacancy rate to 5.5%  Further improvements expected in H2 2017 Zurich | 25 October 2017 Capital Markets Day 2017 17

18. Slide 18: Substantial CHF 2.1 billion pipeline covering all phases

    CEO Swiss Prime Site Immobilien Substantial CHF 2.1 billion pipeline covering all phases Construction Etzelgut, Zurich Riantbosson Centre, Meyrin Geneva Business Terminal, Meyrin YOND, Zurich Schönburg, Berne Espace Tourbillon, Geneva Development NZZ site, Schlieren Stücki Business Park, phase I, Ba

19. Slide 19: We shape the future

    WE SHAPE THE FUTURE

20. Slide 20: Construction projects with expected average net yield of 5.4% (1|3)

    CEO Swiss Prime Site Immobilien Construction projects with expected average net yield of 5.4% (1|3) SOLD SOLD Espace Tourbillon, Plan-les-Ouates (Commercial) Schönburg, Berne (Hotel, Retail, Residential) Realisation 2017 – 2021 Realisation 2017 – 2020 Investment volume* CHF 233 million Investment vo

21. Slide 21: Construction projects with expected average net yield of 5.4% (2|3)

    CEO Swiss Prime Site Immobilien Construction projects with expected average net yield of 5.4% (2|3) YOND, Zurich (Commercial) Riantbosson Centre, Meyrin (Office | Retail) Realisation 2017 – 2019 Realisation 2016 – 2018 Investment volume* CHF 89 million Investment volume* CHF 42 million Rental space

22. Slide 22: Construction projects with expected average net yield of 5.4% (3|3)

    CEO Swiss Prime Site Immobilien Construction projects with expected average net yield of 5.4% (3|3) Geneva Business Terminal (Office) Etzelgut, Zurich (Assisted Living) Realisation 2016 – 2018 Realisation 2016 – 2017 Investment volume* CHF 21 million Investment volume* CHF 26 million Rental space 2

23. Slide 23: Development projects with expected rental income of CHF ~50 m (1|4)

    CEO Swiss Prime Site Immobilien Development projects with expected rental income of CHF ~50 m (1|4) VMA Pré-Bois, Meyrin (Commercial) NZZ site, Schlieren (Commercial) Realisation 2021 – 2023 Realisation 2018 – 2019 Investment volume* CHF 155 million Investment volume* CHF 100 million Rental space 24

24. Slide 24: Development projects with expected rental income of CHF ~50 m (2|4)

    CEO Swiss Prime Site Immobilien Development projects with expected rental income of CHF ~50 m (2|4) Stücki Business Park I, Basle (Commercial) Stücki Business Park II, Basle (Commercial) Realisation 2018 – 2020 Realisation 2021 – 2023 Investment volume* CHF 95 million Investment volume* CHF 95 milli

25. Slide 25: Development projects with expected rental income of CHF ~50 m (3|4)

    CEO Swiss Prime Site Immobilien Development projects with expected rental income of CHF ~50 m (3|4) Du Lac, Paradiso – Lugano (Assisted Living) Etzelblick, Richterswil (Assisted Living) Realisation 2018 – 2020 Realisation 2018 – 2020 Investment volume* CHF 70 million Investment volume* CHF 53 millio

26. Slide 26: Development projects with expected rental income of CHF ~50 m (4|4)

    CEO Swiss Prime Site Immobilien Development projects with expected rental income of CHF ~50 m (4|4) Pont Rouge, Lancy (Commercial)** Lokstadt, Winterthur (Commercial)** Realisation 2020 – 2023 Realisation 2020 – 2022 Investment volume* CHF 257 million Investment volume* CHF 66 million Rental space 2

27. Slide 27: Projects up for sale | Expected cash flow CHF ~300 million

    CEO Swiss Prime Site Immobilien Projects up for sale | Expected cash flow CHF ~300 million SOLD SOLD Weltpostpark, Berne (Residential) Espace Tourbillon, Plan-les-Ouates (Commercial) Realisation 2017 – 2019 Realisation 2017 – 2021 Investment volume n.a. Investment volume n.a. Rental space 14 200 m2

28. Slide 28: Summary – CHF 2.1 bn pipeline with significant income potential

    CEO Swiss Prime Site Immobilien Summary – CHF 2.1 bn pipeline with significant income potential Projects Realisation Rental space Gross yield (on cost) Investment volume* Rental income** Net yield (on cost) Under construction  2017 – 2021  101 800 m2  6.1% (Capex 2018 – 2021: CHF 313 m)  CHF 604

29. Slide 29: Key take-aways: Organic growth and increased profitability

    CEO Swiss Prime Site Immobilien Key take-aways: Organic growth and increased profitability REVALUATION INCREASE IN CAPITAL GAINS RENTAL INCOME GAINS Projects generating Increase in rental Additional gains above-average net income of CHF 86 from sales yield in comparison million expected (CHF ~300 mi

30. Slide 30: We create living spaces

    WE CREATE LIVING SPACES

31. Slide 31: Maag site, Zurich – 2nd largest property investment

    Site visit Maag site, Zurich – 2nd largest property investment Highlights  Value (total site): CHF 795 million  Rental income: CHF 28 million p.a.  Rental space: 75 640 m2  Site area: 24 360 m2  Tenants (selection): Homburger, EY, Deutsche Bank, MAAG Music & Arts (sublease with Zurich Tonhalle)

32. Slide 32: Maag site, Zurich – Value creation through development (case study)

    Site visit Maag site, Zurich – Value creation through development (case study) PRIME TOWER & ANNEX PLATFORM TOTAL (EXCL. MAAG EVENT) +240.0 +75.8 +315.8 + 68.0% 600.9 179.0 779.9 360.9 103.2 464.1 Construction costs Market value Construction costs Market value Construction costs Market value Height

33. Slide 33: Maag site, Zurich – Tonhalle Maag (concerts and events)

    Site visit Maag site, Zurich – Tonhalle Maag (concerts and events) Highlights  Tenant: MAAG Music & Arts AG, Tonhalle is subtenant for new hall (concerts and events)  Function: 2017 – 2020 concert site for Tonhalle-Orchester Zurich as well as event hall  Investment by Tonhalle: some CHF 10 millio

34. Slide 34: NZZ site, Schlieren – Ready for a promising new future

    Site visit NZZ site, Schlieren – Ready for a promising new future Highlights  Acquisition: 2015 (former tenant & owner: NZZ)  Urban appeal of location and flexibility of building are important  Tenant: Zühlke as anchor tenant (8 500 m2) and ideal partner for this site  Realisation: 2018 – 2019 

35. Slide 35: Medienpark, Zurich – Former bank IT complex becomes news HQ (1|2)

    Site visit Medienpark, Zurich – Former bank IT complex becomes news HQ (1|2) Challenges  Acquisition: 2005  Construction year: 1979  Tenant: UBS (until 2012)  Question: modernisation or demolition after UBS move out?  Advantages of existing building: 60 undergroud parking spaces, high ceilings

36. Slide 36: Medienpark, Zurich – Former bank IT complex becomes news HQ (2|2)

    Site visit Medienpark, Zurich – Former bank IT complex becomes news HQ (2|2) Highlights  Redevelopment and comprehensive renovation to Minergie standards  Realisation: 2013 – 2015  Tenant: Ringier Axel Springer Switzerland AG as anchor tenant  Value: CHF 146 million  Rental income: CHF 6 millio

37. Slide 37: YOND, Zurich – Investment property (Siemens site) with land bank

    Site visit YOND, Zurich – Investment property (Siemens site) with land bank Highlights  Acquisition: 2014 (construction year: 2003)  Tenant: Siemens Schweiz  Site area: 13 631 m2 (investment property) and 9 114 m2 (land bank)  Value: CHF 40.5 million (excl. land bank)  Rental income: CHF 2.3 mi

38. Slide 38: YOND, Zurich – Flexible floorspace for «millenials»

    Site visit YOND, Zurich – Flexible floorspace for «millenials» Highlights  Space offer: appeals to tenants from service and production sectors with demand for flexible floorspace and rapid availablility  Construction: planning and execution in accordance with lean construction principles  Realisa

39. Slide 39: Motel One, Zurich – Former post & bank office turns into design hotel

    Site visit Motel One, Zurich – Former post & bank office turns into design hotel Highlights  Opening: on 28 July 2017, the new 394-room Motel One opened in the former Selnau post office, making it the largest city hotel  Realisation: 2015 – 2017  Value: CHF 161 million (on cost)  Rental income:

40. Slide 40: Key investment highlights

    Appendix Key investment highlights Strong business model  Vertically integrated real estate company with a combination of prime commercial real estate and complementary leading real estate related business operations (e.g. assisted living) Pure Swiss play  CHF 10 bn property portfolio and related

41. Slide 41: Analyst and investor contact

    Analyst and investor contact Press and media contact Markus Waeber Mladen Tomic Investor Relations Media Relations Head of Investor Relations Head of Corporate Communications Office: +41 58 317 17 64 Office: +41 58 317 17 42 Mobile: +41 79 566 63 34 Mobile: +41 79 571 10 56 markus.waeber@sps.swiss m

42. Slide 42: Disclaimer

    Disclaimer All the information contained in this presentation is provided for information purposes only and does not constitute a basis for any investment decision or a recommendation to buy Swiss Prime Site AG securities. The contents of this presentation were carefully prepared and researched. Not

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