Peach Property Group Ag · SIX:PEAN

Peach Property — H1 2022 Earnings Presentation

54 slides from Peach Property's earnings presentation, Aug 30, 2022

  1. Slide 1: First HY 2022 Results

    First HY 2022 ¥; Results August 30, 2022

  2. Slide 2: Presenters

    Presenters Thorsten Arsan Chief Financial Officer Dr. Thomas Wolfensberger Chief Executive Officer ience, including ul IPO, Former Head porate Finar Deputy Head of Finance & Treasury at former Senior ontrollin ©peach

  3. Slide 3: Agenda

    Agenda 1. Highlights first half-year 2022 2. Business Update 3. Financial Update 4. ESG Update 5. Guidance 6. Appendix Portfolio details * Consolidated statement of income, financial position and cash flows * Funds from operations + EPRANAV& NTA + LIV&ICR * ESG * Share data & financial calendar ©pea

  4. Slide 4: H1 2022 — strong operational performance

    H1 2022 — strong operational performance & Portfolio Sig Financials ESG vs. H1 2021 vs. H1 2021 + Approx. 15% of renovated units in H1 included Rental income CHF 59.3mm @ 418.1% FFO| CHF9.0mm +93% energetic renovations. LL rental growth 43.4% Operating result CHF 104.3mm +19%8 + Work on decarbonizat

  5. Slide 5: Main items on investors' agenda

    Main items on investors’ agenda Is my investment protected Are valuations sustainable? against inflation ? = + PPG has track record of ~4% annual rental growth. + Historically, German CPI and rents move evenly! => almost perfect inflation protection in the medium term. + Gap of PPG's in-place to mar

  6. Slide 6: Agenda

    Agenda 1. Highlights first half-year 2022 2.Business Update 3. Financial Update 4. ESG Update 5. Guidance 6. Appendix Portfolio details * Consolidated statement of income, financial position and cash flows * Funds from operations + EPRANAV& NTA + LIV&ICR * ESG * Share data & financial calendar

  7. Slide 7: Overview investment properties

    & Overview investment properties Number of residential units Actual rental income (CHFmm) Market value (CHFmm)! Gross rental return FY 2021 27 441 H1 2021 50.22 H1 2021 2 633.7 FY 2021 4.8% S H1 2021 27 398 H1 2022 59.25 H1 2022 2 640.5 H1 2022 4.6% Residential floor space in sqm Target rental incom

  8. Slide 8: Cold rent index German CPI

    Cold rent index German CPI • • •

  9. Slide 9: Attractive potential for further rent growth

    & Attractive potential for further rent growth Figures in EUR / sqm 18% potential @ oe 1s in H2 2022 @ in-place rent Dec 31, 2021' rent H1 20222 @ market New letting @ in-place rent @ market rents H12022 Jun 30, 2022' rent H2 20225 Market rent growth likely to accelerate significantly due to current

  10. Slide 10: Structural undersupply cannot be addressed by new construction

    Structural undersupply cannot be addressed by new construction German market requires 400k new apartments every year Construction costs per sqm well above Peach's current asset valuation level? House prices and construction costs strongly correlated 700 600 500 400 300 200 mae = Completions (000) ;o

  11. Slide 11: Valuation continue to reflect high demand for affordable housing

    Valuation continue to reflect high demand for affordable housing Valuation result H1 2022 Key valuation indicators =m Operational progress & discount rate mlnitial valuation = Total revaluation gain as % of investment properties CHF 126.2mm (4.8%) Initial valuation gains as a result of acquisition f

  12. Slide 12: Peach locations with healthy rent levels and attractive valuations

    Peach locations with healthy rent levels and attractive valuations Affordability of rents in typical Peach locations at a healthy level Share of rent in income 1 Typical Peach location BE Other German cities 48% Other European cities 39% 38% 35% 32% ° 31% 30% 29% 28% UJ | | U [] " ‘Amsterdam? London

  13. Slide 13: Update on energy prices

    & Update on energy prices Gas prices for DE housholds! 6 «<Gaspreisumlage» PPG hedgeprice 2021 Aug'22 Oct'22 @ impact on monthly rent cost/sqm Increas ~ Mot the monthly rent costs for an average Peach apartment. 2021 2022 = Q ‘warm’ ancillary costs € month/sqm = Q ‘cold! ancillary costs € month/sqm

  14. Slide 14: Peach Points: Client service excellence delivered through regional tenant stores

    & Peach Points: Client service excellence delivered through regional tenant stores Wy ee > Kiel * Stralsund LB Schleswig-Holstein Hamburg Mecklenburg-Vorpommem * prememavélamburg’ Schwerin = Emden * Lineburg eal =@ Bertin “Berlin Dortmund Qiereniat Frankfurt (Oder) Erkrath efeld Sachsen-Anhal@randen

  15. Slide 15: 360-degree tenant service model

    & 360-degree tenant service model f= 5 2 5) tei [om wv 3 i i i) a co) o 4s) g 2 3 2 S 2 ©peach Web portal Email Telephone Peach Point — @ @ 24/7 mutli-channel access 1an2 , Tenants fift r] Peach Points System Partners (1) Including external system partners; (2) Queries solved during first interactio

  16. Slide 16: Vacancy driven by renovation measures

    & Vacancy driven by renovation measures Development of vacant residential units and Vacant residential units by vacancy category vacancy ratio 2190 2086 2086 | | 1842 -88 «effective vacancy» 2.5% -410 1158 wT 834 8.0% 7.6% “3f8 2019 2020 2021 HY2022 Total Planned Rentedin In rental In Evaluation of

  17. Slide 17: Remaining development project in CH - Peninsula Wädenswil

    & Remaining development project in CH - Peninsula Wadenswil at Lake of Zurich Development project with 56 condominiums in 4 buildings, combination of redevelopment and new construction; investment properties with 29 rental units and 5 600 sqm commercial space. The project has been legally approved a

  18. Slide 18: Agenda

    Agenda 1. Highlights first half-year 2022 2. Business Update 3.Financial Update 4. ESG Update 5. Guidance 6. Appendix Portfolio details * Consolidated statement of income, financial position and cash flows * Funds from operations + EPRANAV& NTA + LIV&ICR * ESG * Share data & financial calendar 18

  19. Slide 19: Debt structure as of June 30, 2022

    = Debt structure as of June 30, 2022 Matruity profile 700 + 2023 bond maturity reduced to ~EUR 181mm by further fo buyback in July 2022 600 + New EUR 100mm secured financing signed in August 2022. 500 = 400 (S = 300 ro) 201 (181) 200 135 130 135 20 ° a a 2 = | 2022 2023 2024 2025 2026 2027 2028 2029

  20. Slide 20: Financial performance in H1 2022

    Financial performance in H1 2022 Net rental income (CHFmm) Adjusted EBITDA (CHFmm) FFO I (CHFmm) Operating Income (CHFmm) H1 2020 Weaaeyas EEN 50 220 [EEA SA 59 250 Result after tax (CHFmm) 15 596 Ht 2021 (on) 27 067 H1 2022 29 633 Equity ratio (IFRS) 6 868 WM 11.2020 49362 H1 2021 177 139 EPRA NTA

  21. Slide 21: Capex development

    << Capex development Figures in CHF 31.90/sqm 28.30/sqm 28.80/sqm 24.10mm 44.95mm 28.29mm FY 2020 FY 2021 H1 2022 ©peach ~ 1400 apartments renovated in H1 2022; 15% thereof with energetic component such as modernization of heating systems or insulation measurements. Renovation of 2 500 - 3000 apartm

  22. Slide 22: Opex development

    << Opex development Figures in CHF WAT Rely 5.04/sqm =m Maintenance/sqm © Admin/sqm + Increase of maintenance costs driven by ANSE ES higher number of tenant requests; main drivers are catch-up effects after: _ + lifting of Corona pandemic restrictions + insourcing of the property management functio

  23. Slide 23: Agenda

    Agenda 1. Highlights first half-year 2022 2. Business Update 3. Financial Update 4.ESG Update 5. Guidance 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR ESG Share data & financial calendar

  24. Slide 24: Peach's ESG Roadmap

    mar Peach's ESG Roadmap Bundling of electricity and gas contracts x savings EUR 1.2mm Smart metering: digitization of consumption recording Cost savings EUR 1.5mm Establishment of an ESG data management and sustainability reporting system Measure environmental performance General electricity switche

  25. Slide 25: Carbon intensity and decarbonization path

    Caton intensity nkg CO.eia Seepe 182) gli @peach 2020 2030 2050 Committed to climate neutrality of our real estate portfolio latest by 2050. Intermediate goal: reduce CO; intensity of our portfolio to well below 30 kg CO,e/m?a by 2030. Peach's decarbonization path Expected costs of decarbonization p

  26. Slide 26: Agenda

    Agenda 1. Highlights first half-year 2022 2. Operational Performance 3. Financial Performance 4. ESG Update 5.Guidance 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR ESG Share data & financial calendar 26

  27. Slide 27: Guidance FY 2022

    [7 Guidance FY 2022 Status vs. March 2022 Net Rental Income CHF 113-117mm! (-f-L rental growth 3.5% FFO | CHF 18 - 2imm Dividend 50% of FFO | NWWW ©peach (1) assuming @ EUR/CHF rate of 1.00

  28. Slide 28: Financial policy geared to reach investment grade

    Financial policy geared to reach ly: investment grade Peach Financial Policy Maintain a well-balanced maturity profile, with a mix of secured & unsecured funding Lower weighted average cost of debt to < 2% in the medium term Maximum LTV of 50% in the medium term Achieve an investment grade instrumen

  29. Slide 29: Why invest in Peach Property Group?

    Why invest in Peach Property Group? Operationally and financially sound business with further potential... ... at historic high discount to EPRA NTA 10% + Track-record of I-f-l rental growth of ~4% p.a + Demonstrated ability to increase rent levels and lower 0% vacancy; with further potential. + — R

  30. Slide 30: Agenda

    Agenda 1. Highlights first half-year 2022 2. Operational Performance 3. Financial Performance 4. ESG Update 5. Guidance 6.Appendix + — Portfolio details * Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR ESG Share data & financial calen

  31. Slide 31: Appendix: Portfolio details

    ©peach PROPERTY GROUP Appendix Portfolio details

  32. Slide 32: Portfolio structure as of Jun 30, 2022

    & Portfolio structure as of Jun 30, 2022 Investment properties DE = CHF 2 613.9mm (97%) Total portfolio market value CHF 2 696mm Investment properties oo Development properties CH CHF 26.6mm CHF 55.1mm (1%) (2%) © peach Market values determined by Wiest Partner AG as of June 30, 2022, excluding righ

  33. Slide 33: 1

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

  34. Slide 34: Structured acquisition process that results in strategically sound acquisitions

    Structured acquisition process that results in strategically sound acquisitions \ t ; Almost exclusively focussed on off-market @® Sourcing transactions based on strong network in Germany. v Swift execution. Impeccable reputation Y Valued partner respecting confidentiality around deal terms. ion sqm

  35. Slide 35: Appendix: Consolidated statement of income, financial position and cash flows

    ©peach PROPERTY GROUP Appendix Consolidated statement of income, financial position and cash flows

  36. Slide 36: Consolidated statement of income

    Consolidated statement of income Figures in CHF thousands TEESE) 1st half-year 2021 Rertalincome EEEEEIS@ = «2 ‘Valuation gains from investment aroperties 126379 Profit on disposa. of investment properties 307 Income from development properties ‘Other operating income 233 ‘Operating income 177139 J.

  37. Slide 37: Consolidated statement of financial position

    Consolidated statement of financial position Figures in CHF thousands Dec 34, 2021 Cash & Cash equivalents 37199 Trade receivables J 7652 Other receivables QO Current financial receivables | 398 Development properties 44149 Investment properties held for sale 3.265 Total current assets 11217 Investm

  38. Slide 38: Consolidated statement of financial position (continued)

    Consolidated statement of financial position (continued) Figures in CHF thousands Dec 31, 2021 Comments Shi ital 506 471 1 16 882 ° ae cep he ‘ioe @ Following the approval of the par value increase from CHF 1 to CHF 30 at the 2022 Annual General Treasury shares 7 Meeting, share capital totals CHF 50

  39. Slide 39: Consolidated statement of cash flows

    Consolidated statement of cash flows Figures in CHF thousands Result before taxes Adjustments for non-cash expenses/income Depreciation and amortization Valuation result from investment properties Result on disposal of investment properties Change in bad debt allowance Valuation result from lease li

  40. Slide 40: Consolidated statement of cash flows (continued)

    Consolidated statement of cash flows (continued) Figures in CHE thousands Ast half-year 2021 Comments Payments for real estate companies - 142587 Payments for equipment = 941 C1) Investments eligible for capitalization: Refurbishing and modernization investments Payments for intangible assets 124] ~

  41. Slide 41: Funds from operations (FFO)

    Funds from operations (FFO) Figures in CHF thousands EBIT. Depreciation and amortization EBITDA _/.Valuation result of investment properties ./. Disposal of investment properties Share-based compensation Other non-cash accrued expense positions Adjusted EBITA -/. Interest paid _/. Interest paid on h

  42. Slide 42: EPRA NRV & NTA

    EPRA NRV & NTA Figures in CHF thousands Jun 30, 2022 EPRA NRV EPRA NTA Equity attributable to Peach Property Group AG 1109 136! equity holders ./. Hybrid instruments 57 412 Revaluation of development properties Diluted NAV at fair value 1. Deferred tax in relation to fair value gains -/. Fair value

  43. Slide 43: Loan-to-value and interest coverage ratio

    Loan-to-value and interest coverage ratio LTV ICR Figures in CHF thousands Market value of real estate investment portfolio Market value of real estate development portfolio Mortgages and building loans Bonds Other bank financings J. Cash and cash equivalents ./ Current financial receivables Loan-to

  44. Slide 44: Appendix

    ©peach PROPERTY GROUP Appendix

  45. Slide 45: Sustainability in practice on all levels

    = Sustainability in practice on all levels Our sustainable goals Our KPIs" 9 UN SDGs? as particular relevant for our business ENVIRONMENT CO, emissions: 34.5 kg/m? 3-4 ; Total energy intensity: 15.4 kWhine* Reduction of carbon footprint through responsible realestate. - recycting rate = management y

  46. Slide 46: Our strategy to reach our CO2 targets

    oy. =) Our strategy to reach our CO, targets Focus on energy consumption from heating.. euanid asse cow Iti Wealcelterd yetticie nc yy * Our refurbishment-focus is on energy classes G and H, where we can achieve the biggest impact on the carbon footprint of our portfolio. + The EU directive requires

  47. Slide 47: ESG: Peach's decarbonization tool

    ESG: Peach's decarbonization tool Analyse impact of various heating technologies on CO2- intensity. Analyse different paths to climate- neutral portfolio and its impact on costs and investments ausgewahltes Szenanio ‘Anteil Flache | Flache (m®) 100,0 % 1,5 Mio. Wohneinh. | Gewerbeeinh, 18.917 14 C02

  48. Slide 48: Appendix: Share data

    ©peach PROPERTY GROUP Appendix Share data

  49. Slide 49: Recent capital market development

    << Recent capital market development Credit ratings (Instrument Rating) Recent capital market transaction 2 buybacks to reduce EuroBond 2023 outstanding amount to EUR 181 million BB+ EUR 100 million revolving credit facility; maturity 3 years ~2% EUR 55 million promissory note (German SSD); maturity

  50. Slide 50: Share data

    Share data Significant shareholders! as of June 30, 2022 26.13% 54.33% 7.58% 447% 4.37% 3.12% mAres Management Corporation m Franciscus Zweegers = Dr. Thomas Wolfensberger = Kreissparkasse Biberach m Marius Barnett = Other Note: The notional free float based on the shares issued on June 30, 2022, is

  51. Slide 51: Appendix: Financial calendar

    ©peach PROPERTY GROUP Appendix Financial calendar

  52. Slide 52: Financial calendar

    Financial calendar =] 21 March 2023 — FY 2022 results | 24 May 2023- AGM 2023 ©peach 52

  53. Slide 53: Disclaimer

    Disclaimer These materials contain forward-looking statements based on the currently held beliefs and assumptions of the management of Peach Property Group AG (hereinafter also referred to as "PPG" or “Peach Property"), which are expressed in good faith and, in their opinion, reasonable. Forward-loo

  54. Slide 54: Investors, Analysts and Media

    Investors, Analysts and Media Stefan Feller, Head of Investor Relations Dr. Thomas Wolfensberger, Chief Executive Officer Thorsten Arsan, Chief Financial Officer +41 44 485 50 18 investors@peachproperty.com

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