Slide 1: 9M 2018 Results Presentation
9M 2018 Results Presentation |14 November 2018 PATRIZIA | © November 2018
Slide 2: Highlights
Financials 9M 2018 Highlights 9M 2018 results with strong growth in AUM and operating income Assets under management Assets under management | EUR bn • AUM increased by 83.5% to EUR 40.2bn Slightly >40.0 47 40.2 • AUM by geography 1.2 0.1 | Germany: EUR 25.2bn (63%) 37 Principal investments | Outs
Slide 3: Operating income
Financials 9M 2018 Operating income Operating income up 110.5% year-on-year to EUR 98.1m Highlights Composition 9M 2018 | EUR m • Strong management and performance fee growth • High net sales revenues and co-investment income +98.2% +47.7% reflect the strategic and profitable reduction of princi
Slide 4: Total service fee income
Financials 9M 2018 Total service fee income Stronger pan-European platform drives diversified income streams Highlights Total service fee income | EUR m • Total service fee income up 62.8% to EUR 209.7m driven by organic growth in assets under management 310.0 - 335.0 and acquisitions of TRIUVA and
Slide 5: Transaction fees
Financials 9M 2018 Transaction fees Transaction volume strongly outperformed overall market activity as at 9M 2018 Highlights Transaction volume | EUR bn • Transactions worth EUR 3.5bn completed in 9M 2018 4.5 - 6.5 5 (9M 2017: EUR 3.0bn); thereof EUR 1.7bn acquisitions and EUR 1.8bn disposals 4 3.5
Slide 6: Performance fees
Financials 9M 2018 Performance fees Superior returns for investors translate into attractive performance fees • Performance fees of EUR 50.0m in the first nine months of 2018 emphasise PATRIZIA’s active asset management capabilities and investment track record (weighted average IRR of 12.1%) • Based
Slide 7: Profitability and costs
Financials 9M 2018 Profitability and costs Continued efficiency improvements propel profitability and cost ratios AUM vs. total cost ratio | EUR bn vs. % EBITDAR margin (+/- principal investments) | EUR m, LHS vs. % 45 1% Slightly >40.0 170 50% 1.21% 160 45.2% 40 1.14% 45% 40.2 1% 150 42-45% 140 38.
Slide 8: Solid financial position
Financials 9M 2018 Solid financial position Ample cash position to drive further growth and strategic development • Strong Balance Sheet ratios and capital structure to facilitate further profitable growth • Total available liquidity amounts to EUR 539.7m as at 30.09.2018: | for M&A’s in the investm
Slide 9: Guidance FY 2018
Financials 9M 2018 Guidance FY 2018 Increase of operating income guidance 2018 to slightly above EUR 140.0m Assumptions 2018e Income bridge FY 2018 | EUR m • Management fees are expected in the range of 97% 69%1 EUR 170.0–175.0m based on increased assets under 53% management (previous: EUR 162.5–170
Slide 10: Digitalisation update
Digitalisation update PATRIZIA | © November 2018
Slide 11: Equity Story: DIGITAL/TECH
Equity Story DIGITAL/TECH PATRIZIA strives to become the digital leader in real estate investment management processes strategy business infrastructure partner EAM1 digITalisation THE CORE ONE NET THE LINK Establish a culture of strategy Enable the efficient, Run one centralised, Establish a reliabl
Slide 12: Example 1: Digital services | Worldmap
Digitalisation Example 1: Digital services | Worldmap Develop tools to increase transparency inside PATRIZIA PATRIZIA | © 2018 12
Slide 13: Example 2: Digital services | Investor frontend
Digitalisation Example 2: Digital services | Investor frontend Develop services to provide a leading digital investment experience Main goals 1 • Unified investor frontend across all investments, including institutional funds and closed-end funds for private and (semi-)professional investors • Launc
Slide 14: Example 3: Artificial intelligence | EVANA
Digitalisation Example 3: Artifical intelligence | EVANA As part of a recent strategic investment PATRIZIA will adopt an AI-driven digital platform About EVANA • The name EVANA stands for Evaluation & Analytics • Service provider for document, data and process management • EVANA applies self-learnin
Slide 15: PATRIZIA | Investment Highlights
PATRIZIA | Investment Highlights 1 Leading listed European real estate investment firm 2 Broad institutional client base and strong fundraising momentum – globally 3 High quality services across the entire property value chain 4 Excellent track record in sought after European property investment mar
Slide 16: Appendix
Appendix PATRIZIA | © November 2018
Slide 17: Capital allocation
Appendix Capital allocation Assets under Invested capital Invested capital Participations 30.09.2018 Management (fair value) (at cost) EUR m EUR m EUR m in % Third-party business 33,262.0 Co-investments 6,506.9 473.9 176.0 Residential 5,409.7 445.4 153.5 GBW GmbH 4,205.3 127.6 1 52.2 5.1 GBW perform
Slide 18: Reconciliation of operating income
Appendix Reconciliation of operating income EUR k 9M 2018 9M 2017 Change EBITDA 83,904 48,194 74.1% 1 Amortisation of other intangible assets and software, -6,954 -4,234 64.2% depreciation of property, plant and equipment EBIT 76,950 43,960 75.0% Financial income/expenses -3,250 -2,695 20.6% Result
Slide 19: Consolidated Income Statement
Appendix Consolidated Income Statement EUR k 9M 2018 9M 2017 Change Revenues 239,995 163,006 47.2% Income from the sale of investment property 662 268 147.0% Changes in inventories -26,058 -19,359 34.6% Other operating income 12,458 13,152 -5.3% Income from the deconsolidation of subsidiaries 317 1
Slide 20: Consolidated Balance Sheet | Assets
Appendix Consolidated Balance Sheet | Assets EUR k 30.09.2018 31.12.2017 A. Non-current assets Difference amount before purchase price allocation 118,581 0 Goodwill 144,111 7,366 Other intangible assets1 130,815 35,224 Software 11,378 11,207 Investment property 5,729 15,979 Equipment 5,953 4,483 Par
Slide 21: Consolidated Balance Sheet | Equity and liabilities
Appendix Consolidated Balance Sheet | Equity and liabilities EUR k 30.09.2018 31.12.2017 A. Equity Share capital 90,995 89,555 Capital reserves 154,179 129,545 Retained earnings Legal reserves 505 505 Currency translation difference -12,573 -11,586 Revaluation reserve according to IFRS 9 333 0 Conso
Slide 22: Financial Calendar
Appendix Financial Calendar 2018 November 14 ➢ Quarterly Statement for the first nine months of 2018 2019 March 21 ➢ Annual Report 2018 May 16 ➢ Quarterly Statement for the first quarter of 2019 May 22 ➢ Annual General Meeting, Augsburg August 7 ➢ Interim Report for the first half of 2019 November 1
Slide 23: Contact
Appendix Contact KARIM BOHN MARTIN PRAUM Member of the Board | CFO Senior Managing Director Head of Investor Relations PATRIZIA Immobilien AG PATRIZIA Bürohaus T +49 821 50910-402 Fuggerstrasse 26 F +49 821 50910-399 86150 Augsburg M +49 151 19685445 Germany martin.praum@patrizia.ag LAURA WANZL VERE