Patrizia Se · XETR:PAT
Patrizia — Investor Presentation (November 2024)
54 slides from Patrizia's investor presentation, Nov 13, 2024
Slide 1: Company Presentation November 2024
Company Presentation November 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 199m years of real asset experience Assets under Management (EUR) 9M 2024 Top 2 EBITDA (EUR): fully independent 10y 13m 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 by 2030 AUM 2022 Conversion of PATRIZIA’s legal structure to a Societas Europaea “SE” 2022 Whitehelm Capital, Ad
Slide 5: Latest transactions underline our smart real asset investment focus
At a glance Latest transactions underline our smart real asset investment focus Product | PATRIZIA secures Transactions | PATRIZIA completes England Italy strategic repositioning investment into mandate for iconic leading independent Pinners Hall in the City Italian waste treatment of London and rec
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 ~7 years average tenure across real PATRIZIA offices globally assets professionals, longer to service clients & in leadership roles manage real assets locally 40+ 500+ institutional clients boutique operating pa
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: 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 10: 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 11: Our vision is to become the go-to manager for smart real asset solutions with EUR >100bn AUM
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 12: "5 for EUR 30bn" - Focus Areas on thematic strategies and flagship products
At a glance “5 for EUR 30bn” - Focus Areas on thematic strategies and flagship products +EUR 30bn Growth Area Equity fundraising by 2030 Detail • AIP forms and manages “Investment Clubs” for institutional and semi-professional clients Asset classes covered include infrastructure, credit and private
Slide 13: RE-Infra marks a decisive break with sector-based investment strategies
At a glance 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 efficienc
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 We con
Slide 16: Structural growth market
Equity Story Structural Growth Market 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
Slide 17: Real Assets offer long-term value and growth opportunities
Equity Story Structural Growth Market 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 • Rela
Slide 18: Broad diversification of assets under management across asset classes and regions
Equity Story Increased Diversification Broad diversification of assets under management across asset classes and regions 2% 3% 3% 6% 5% 19% 3% 26% 3% 17% 31% 4% 39% 4% AUM by AUM by AUM by AUM by 7% geography 53% sector 17% risk style clients 12% 64% 4% 3% 11% 9% 28% 16% 10% Germany UK & Ireland Off
Slide 19: Long-duration AUM and equity rich client base support predictable management fees
Equity Story Increased Diversification 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% 1.7bn 84% 22% open equity commitments for 8% transactions for investments
Slide 20: PATRIZIA provides attractive investment solutions - examples
Equity Story Future Proof PATRIZIA provides attractive investment solutions - examples 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 &
Slide 21: ESG incorporation improves every step of the investment process
Equity Story Future Proof 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
Slide 22: PATRIZIA funds outperformed unlisted European real estate benchmark on a long term basis
Equity Story Asset Expertise 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 outperform
Slide 23: Retail investor business shows strong footprint and further growth opportunities
Equity Story Asset Expertise 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
Slide 24: AUM growth translates into growing and recurring management fees
Equity Story Financial Flexibility AUM growth translates into growing and recurring management fees 60.0 - 59.1 54.0 60 57.3 55.9 50 47.0 48.6 +19.4 % p.a. 44.5 300 Management fee 41.0 40 growth 2012 – 2023 251.1 241.0 30 209.1 190.9 193.4 21.9 175.3 150 20 18.6 16.6 11.8 14.6 93.2 +21.3 % p.a. 10 6
Slide 25: Resilience of assets under management
Equity Story Financial Flexibility Resilience of assets under management AUM development 9M 2024| EUR bn • AUM decreased by -2.3% to EUR 55.9bn in 9M 2024 (FY 2023: EUR 57.3bn; -4.0% y-o-y) 60.0 1.3 • Acquisitions of EUR 1.3bn with the majority in -0.9 -0.5 -1.1 infrastructure, residential and fund
Slide 26: Growth trend of fees temporarily impacted by subdued market environment
Equity Story Financial Flexibility 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
Slide 27: Total service fee income reflective of continued low market activity
Equity Story Financial Flexibility Total service fee income reflective of continued low market activity Management fees | EUR m Transaction fees | EUR m Performance fees | EUR m -8.6% 31.7 187.7 171.6 18.2 8.8 +1.2% 8.9 - 42.6% 1.9 3.4 6.9 5.5 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 To
Slide 28: Cost containment remains priority showing first effects in operating expenses
Equity Story Financial Flexibility Cost containment remains priority showing first effects in operating expenses Changes in operating expenses y-o-y EUR m • Overall progress of the cost reduction program as well as a lower headcount (FTE in 9M 2024: 885 +37.4% -2.3% -2.8% vs. 9M 2023: 978) +
Slide 29: EBITDA impacted by extraordinary items and subdued market environment
Equity Story Financial Flexibility EBITDA impacted by extraordinary items and subdued market environment Composition of EBITDA | EUR m • EBITDA down -73.3% y-o-y to EUR 13.4m impacted by negative results from a temporarily consolidated at-equity investment and extraordinary items -42.6% -2
Slide 30: Guidance ranges confirmed for FY 2024
Equity Story Financial Flexibility Guidance ranges confirmed for FY 2024 • Macro-economic environment remains a challenge for most clients, particularly in the real estate investment sector 9M 9M Guidance FY 2023 2023 2024 FY 2024 • Client investment activity expected AUM to pick up gradually 57.3 5
Slide 31: Solid balance sheet and financial strength provide flexibility in current environment
Equity Story Financial Flexibility Solid balance sheet and financial strength provide flexibility in current environment Strong balance sheet Significant liquidity • Net debt of EUR 143.8m, driven by invest- EUR m 30.09.2024 EUR m 30.09.2024 ments via temporarily consolidated funds Total assets 1,96
Slide 32: Co-Investments boost products, intensify client relationships and exploit opportunities
Equity Story Financial Flexibility 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 154 10.3 Equity 1,182 AUM Co-Investments1 639 ….55.9 ∑ 45.7 Dawonia profit entitlements1
Slide 33: PATRIZIA's multi-dimensional engagement in Dawonia is a key performance driver
Equity Story Financial Flexibility 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 suc
Slide 34: Balance sheet supports strategic fund investment initiatives
Equity Story Financial Flexibility Balance sheet supports strategic fund investment initiatives Balance sheet allows for seeding and selective warehousing when favourable opportunities emerge EUR m Major balance sheet investments as at 30 September 2024 EUR m Non-current assets Seeding Participation
Slide 35: We are proud to make a positive impact by donating up to 1% of our EBITDA
Equity Story Giving Back to Society 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 fun
Slide 36: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 36
Slide 37: 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 37
Slide 38: 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 39: 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 40: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 40
Slide 41: Stable shareholder structure and upside to analyst target prices
Share Stable shareholder structure and upside to analyst target prices PATRIZIA share performance | as at 13.11.2024 Shareholder structure | as at 30.09.2024 Analyst recommendations | as at 13.11.2024 6 EUR 30.00 30.00 € 7.99% 2 First Capital Partner GmbH 25.00 25.00 € 3 Union Investment Privatfonds
Slide 42: 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 80% 70% EUR 60% EUR 98m 50% 141m EUR 40% EUR 926m 30% 689m
Slide 43: 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 44: 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 45: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 45
Slide 46: Capital allocation
Appendix Capital allocation PATRIZIAs capital allocation as at 30 September 2024 Invested capital Invested capital (at Assets under Management (fair value) cost) Participations EUR m EUR m EUR m in % Third-party business 45,656.3 0.0 Co-Investments and Warehousing 10,283.7 925.8 540.0 Real estate -
Slide 47: Reconciliation of EBITDA
Appendix Reconciliation of EBITDA Detailed reconciliation to EBITDA EUR k 9M 2024 9M 2023 Change Table in the current report Management fees (excluding result from participations) 165,912 180,989 -8.3% Reconciliation of total service fee income Shareholder contribution for management services (in re
Slide 48: Consolidated income statement
Appendix Consolidated income statement EUR k Q3 2024 Q3 2023 9M 2024 9M 2023 Change Revenues 62,524 76,572 186,120 207,369 -10.2% Other operating income¹ 1,462 8,856 11,253 14,033 -19.8% Total operating performance 63,986 85,415 197,374 221,389 -10.8% Cost of materials -677 -1,203 -929 -1,322 -29.7%
Slide 49: Consolidated balance sheet | Assets
Appendix Consolidated balance sheet | Assets Assets EUR k 30.09.2024 31.12.2023 A. Non-current assets Goodwill 380,078 376,719 Other intangible assets 82,541 89,320 Software 5,443 6,725 Rights of use 45,051 51,296 Investment property 275,079 246,481 Equipment 31,789 14,580 Participations in companie
Slide 50: Consolidated balance sheet | Equity and liabilities
Appendix Consolidated balance sheet | Equity and liabilities Liabilities EUR k 30.09.2024 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 2,611 -3,853 Remeasurements of defined benefit plans acco
Slide 51: Consolidated statement of cash flows (I)
Appendix Consolidated statement of cash flows (I) EUR k 9M 2024 9M 2023 Net profit/ loss for the period 22,657 14,358 Income taxes recognised through profit or loss 7,414 12,344 Financial expenses recognised through profit or loss 10,821 6,380 Financial income recognised through profit or loss -9,69
Slide 52: Consolidated statement of cash flows (II)
Appendix Consolidated statement of cash flows (II) Payments for investments in other intangible assets, software and equipment -19,371 -3,754 Payments received from the disposal of intangible assets and equipment 60 275 Payments for the development of investment property -23,585 0 Payments for the a
Slide 53: Financial calendar 2025
Appendix Financial calendar 2025 Investor and analyst conference call on preliminary results 24 MAR 25 2024 Preliminary results 24 MAR 25 2024 10 APR 25 2024 Annual Report 13 MAY 25 3M 2025 Interim Statement 14 MAY 25 3M 2025 Investor and analyst conference call 04 JUN 25 2025 Annual General Meeting
Slide 54: Contact
Share Information & Contact Contact MARTIN PRAUM Executive Director | CFO investor.relations@patrizia.ag TOBIAS ENDER VERENA SCHOPP DE ALVARENGA LAURA WALZ Associate Director | Investor Relations Senior Associate | Investor Relations Senior Associate | Investor Relations T +49 69 643505-1443 T +49 8