Peach Property Group Ag · SIX:PEAN
Peach Property — Solventis Aktienforum 2022
58 slides from Peach Property's conference presentation, Apr 26, 2022
Slide 1: Investor Presentation Solventis Aktienforum
Investor Presentation Solventis Aktienforum 26. April 2022 ©peach PROPERTY GROUP
Slide 2: Presenters
Presenters Thorsten Arsan Chief Financial Officer and Debt dit Stefan Feller Head of Investor Relations 5 years of finance experience in corporate finance, treasury and capital market r Former Head of Financing at Swiss utility po Holding AG and Head of Capital Markets at fintech Loanboo: ¢ CFA Char
Slide 3: Agenda
Agenda 1. Peach Property at a glance 2. Portfolio & Operational Performance FY 2021 3. Financial Performance FY 2021 4. Guidance FY 2022 5. Appendix Portfolio details * Consolidated statement of income, financial position and cash flows * Funds from operations + EPRANAV& NTA + LIV&ICR * Details guid
Slide 4: Peach Property Group at a glance
Peach Property Group ata glance A Strategy & Core portfolios C4 Key financials + Active real estate investor within the attractive German residential market, with a clear focus on secondary ("B’) cities. + Low risk: >90% of rental income from residential properties. * Established management structur
Slide 5: Agenda
Agenda 1. Peach Property Group at a glance 2.Portfolio & Operational Performance FY 2021 3. Financial Performance FY 2021 4. Guidance FY 2022 5. Appendix Market development + — Portfolio details * Consolidated statement of income, financial position and cash flows + Funds from operations + EPRANAV&
Slide 6: Overview investment properties
& Overview investment properties Number of residential units Actual rental income Market value! Gross rental return 2 039 007 5.0% 2 633 670 4.8% Residential floor space in sqm Target rental income Vacancy Net rental / cash flow return 7.9% 1436 857 M2 271 1842 units 1705 227 138 086 8.0% 2 190 unit
Slide 7: Portfolio structure as of Dec 31, 2021
& Portfolio structure as of Dec 31, 2021 Investment properties DE = CHF 2 608.3mm (97%) Total portfolio market value CHF 2 687mm Investment properties oo Development properties CH CHF 25.4mm CHF 53.3mm (1%) (2%) © peach atte ntalles dese ined by Wert pened Geter Derenbersil coc er acea nine iste
Slide 8: Strong track-record in growing portfolio
& Strong track-record in growing portfolio 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 R: Aig in ie = Acquisition Acauisition of H 4 Acquisition ot WE acquisition of BB Acquisition of MW acquisition of Acsuston ia. F Acquisitions ‘Acquisition of # — Acquisition of residential two portfoli
Slide 9: Germany has the largest housing market in Europe and is structurally undersupplied
im Germany has the largest housing market in Europe and is structurally undersupplied Largest housing markets in Europe... ..With a strong rental culture... Total population per country mia Total households" 839 65.4 68.2 604 423 303 285 264 e oO cS) oO ..in which demand is structurally undersupplie
Slide 10: Germany's affordable housing segment is extremely stable
Germany's affordable housing segment is extremely stable... Low, stable vacancy rate through the cycle... ..With exceptionally high average tenancy length? — German residential vacancy rate’ ——German office vacancy rate* Rent evolution shows steady growth inline with CPI.. Peach Property average ten
Slide 11: Secondary (B) cities offer an attractive risk/return profile
... especially in secondary ("B")-cities that offer an attractive risk/return profile Multiplier in B, C and D-cities significantly lower... Average multiplier multi-family buildings! 35 ‘A Cities B Cities C Cities OCities 30 25 20 15 == 10 + 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Re
Slide 12: Bielefeld Gutersloh Essen
• Bielefeld • Gutersloh • Essen Mulheim/Ruhr • Dusseldorf Leverkusen Cologne Bonn •
Slide 13: Well-located portfolio with relevant scale
& Well-located portfolio with relevant scale Investment Portfolio @ Peach Point e New Peach Point 2022 1 Kel Schleswig-Holstein Hamburg * Bremerhaven « Emden Oldenburg © * Bremen Niedersachsen O Hessen ‘Wiesbaden Rheinland-Piatz @iiaing — Waredurg saatana © @ v Heidelberg Kaiserslautern Stuttgart >
Slide 14: Typical properties in Peach's portfolio
& Typical properties 1 in Peach's porttolio >peach 14
Slide 15: 360-degree tenant service model
& 360-degree tenant service model Web portal Email Telephone Peach Point . B Property Management in Peach 1an2 — SX (BE) i] + All tenant interaction in unified ticketing system + 284 tickets per month per 1 000 apartments in 24/7 mutli-channel access 2021 (155 tickets in 2020) + 91.4% “one touch”: q
Slide 16: 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 Qe eniat Frankfurt (Oder) Erkrath eee rAnhalBrandenburg Essen
Slide 17: Attractive potential for further rent growth
& Attractive potential for further rent growth Figures in EUR / sqm +4% 6.46 | 75 18% potential Benchmark for new lettings in 2022 @ in-place rent Dec 31, 2020 @ market rent 2021" New letting @ in-place rent rents 2021 Dec 31, 2021 @ market rent 2022 + Weare able to lock-in market rents with new let
Slide 18: Capex development
& Capex development CAPEX in CHF + ~ 2000 apartments renovated in 2021. 33.80/sqm * Increase of capex to ~CHF 70mm in 28.30/sqm 2022 planned; mainly driven by step-up of (energetic) renovation program and to some extent by increased construction 24.10mm costs 20.21mm * Renovation of 2 500 — 3 000 ap
Slide 19: Vacancy driven by renovation measures
& Vacancy driven by renovation measures Development of vacant residential units and vacancy ratio 2190 1842 1158 G 2019 2020 2021 + Overall vacancy ratio flat year-over-year; mainly driven by a slightly higher fluctuation on units acquired in 2020. + OnalL-f-l basis (without units acquired in 2021 a
Slide 20: Initial valuation gains as a result of acquisition
& Initial valuation gains as. a result of acquisition Significant valuation gains and still attractive rental yield ™ Operational progress & discount rate mlnitial valuation "Total revaluation gain as % of investment properties CHF 288.3mm (10.8%) Key valuation indicators as of Dec 31, 2021 Gross re
Slide 21: Remaining development project in Switzerland, Wadenswil
& Remaining development project in Switzerland, Wadenswil on Lake 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 as of F
Slide 22: 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/mes | Total energy intensity. 15.4 kWh/me Reduction of carbon footprint through responsible real estate Waste recycling rate: 33% managemen
Slide 23: Peach's ESG Roadmap
mar Peach's ESG Roadmap Establishment of an ESG Implementation of Bundling of electricity and | Smart metering: digitization ff] data management and Sgtetaatonee decarbonization tool gas contracts of consumption recording sustainability reporting SuMaNEE WOOTEN to define a system electricity decarbo
Slide 24: Peach's decarbonization path
gli 40 35 & g 8 30 8 & £ 25 ge fe} 8 2 20 © 2 5 15 & © 3 § 10 5 0 ©peach 7. Estimated effect of inclusion of al properties acquired in 2021; process currently ongoing 2020 2030 Peach's decarbonization path Committed to climate neutrality of our real estate portfolio latest by 2050. Intermediate goal
Slide 25: 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
Slide 26: Agenda
Agenda 1. Peach Property Group at a glance 2. Portfolio & Operational Performance FY 2021 3.Financial Performance FY 2021 4. Guidance FY 2022 5. Appendix Portfolio details * Consolidated statement of income, financial position and cash flows + Funds from operations + EPRANAV& NTA * LIV&ICR + Details
Slide 27: Strong financial performance in 2021
<< Strong financial performance in 2021 Operating Income (CHFmm) Net rental income (CHFmm) Adjusted EBITDA (CHFmm) Result after tax (CHFmm) 160 734 38 915 17 042 91004 2020 213 584 2020 54748 2020 25742 @ 2020 127 282 EERE 397 838 2021 108 601 2021 56 256 2021 201 198 FFO I (CHFmm) Equity ratio (IFR
Slide 28: Maturity profile with refinancing opportunities
S Maturity profile with refinancing opportunities Debt structure as of December 31, 2021 First refinancing measurements implemented in Q1 2022; resulting in~20bps ‘All debt maturing in 558 WACD improvement. 2022 will be refinanced by end of April 400 260 200 115 143 141 100 62 a 0 2022 2023 2024 202
Slide 29: Financial policy geared to reach investment grade
eS Financial policy geared to reach 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 instrument
Slide 30: Rating upgrades and strong share price performance in 2021
S Rating uprades and strong share price performance in 2021 Credit ratings (Instrument Rating) Recent capital market transaction IG area BB+ BB BB- Moopy’s 2019 2020 2021 Equity analyst coverage ~2% EUR 55 million promissory note (German SSD); maturity 3 years Mandatory convertible bond 2.5% CHF 180
Slide 31: Agenda
Agenda 1. Highlights FY 2021 2. Portfolio & Operational Performance 3. Financial Performance 4 Guidance FY 2022 5. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR Details guidance FY 2022 ESG Share data & fin
Slide 32: Guidance FY 2022
[7 Guidance FY 2022 CHF 122 —- 125mm FFO | CHF 18 - 2imm LTV 50% (mid-term target) Dividend 50% of FFO | @peach 32
Slide 33: Why invest in Peach Property Group?
Why invest in Peach Property Group? A Experienced team with a proven transaction track record Germany: attractive real estate market with very good perspectives & Successful investment strategy Long term growth and value orientation Sound equity basis Attractive investment case >CHF 3.8 billion wort
Slide 34: Agenda
Agenda 1. Highlights FY 2021 2. Portfolio Operational Performance 3. Financial Performance 4. Guidance 5. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR Details guidance FY 2022 ESG Share data & financial ca
Slide 35: Appendix: Portfolio details
©peach PROPERTY GROUP Appendix Portfolio details
Slide 36: Structured acquisition process that results in strategically sound acquisitions
Structured acquisition process that results in strategically sound acquisitions N CL v Almost exclusively focussed @® Sourcini on off-market transactions . a based on strong network in Germany ” Swift execution Impeccable v Valued partner respecting reputation confidentiality around deal terms v Hea
Slide 37: 1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Slide 38: Opex development
Opex development Opexin CHF mm Maintenance / sqm = Admin / sqm =Total Opex '8.76/sqm 5.93/sqm 5.04/sqm 2019 2020 2021 314 party administration Increase of mainly due to cost incurred with respect to the portfolio acquired 2021, as well as higher Costs in connection with in integration, and the 2020
Slide 39: Appendix: Consolidated statement of income, financial position and cash flows
©peach PROPERTY GROUP Appendix Consolidated statement of income, financial position and cash flows
Slide 40: Consolidated statement of income
Consolidated statement of income Figures in CHF thousands Dec 31, 2020 Rental income 54748 Valuation gains from investment properties ETE @ 157786 Profit on disposal of investment properties 387 Income from development properties | sid 180 Other operating income 483 Operating income 397 83 213 584 J
Slide 41: Consolidated statement of financial position
Consolidated statement of financial position Higuresin CHF thousands Casn & Cash equivalents Trade receivables Other receivables Current financial receivables Development properties Investment properties held for sale Total current assets Investment properties Equipment Intangible assets Non-current
Slide 42: Consolidated statement of financial position (continued)
Consolidated statement of financial position (continued) Comments Figures in CHF thousands Dec 31, 2020 Share capital Ais 12.495) @ Mandatory convertible bond Ill Senay ares we On June 23, 2021, we issued a CHF 180mm subordinated mandatory convertible bond. The bonds E fully con h riya contal EEG 50
Slide 43: 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
Slide 44: Consolidated statement of cash flows (continued)
Consolidated statement of cash flows continued) Figures in CHF thousands Dec 31, 2020 Payments far real estate companies - 507124 Payments for equipment Payments for intangible assets Investments in investment properties Proceeds from disposal of investment properties Repayment of financial receivab
Slide 45: 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 EBIT /. Interest paid /. Interest paid on hybrid
Slide 46: EPRA NRV & NTA
EPRA NRV & NTA Figures in CHF thousands Dev a Dec 31, 2020 Comments EPRA NRV EPRA NTA EPRA NRV EPRA NTA * The material increase compared to the previous year is Equity attributable to Peach Property Group AG 724 214 724 214 partly due to the newly issued mandatory equity holders | aaa] convertible b
Slide 47: 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 ./. Cash and cash equivalents ./. Current financial receivables Loan-
Slide 48: Appendix: Details guidance FY 2022
©peach PROPERTY GROUP Appendix Details guidance FY 2022
Slide 49: NRI guidance FY 2022
NRI guidance FY 2022 CHFmm (constant currency (assuming @ EUR/CHF rate of 1.08) 9 4 108.6 a ‘Additional rental income for 6 months of mid-2021 acquisition FY 2021 Eagle acquisition \-f-Lrental growth FY 2022 CHFmm (FX-adjusted (assuming @ EUR/CHF rate of 1.00) 4 108.6 9 — || | | -8 ‘Assuming average
Slide 50: FFO I guidance FY 2022
FFO I guidance FY 2022 Figures in CHFmm 15 it mz Eagle acquisition FFO I FY 2021 @peach NRI growth (guidance) 1.6 Omitted interest expenses on convertible Lower interest expenses. FFO | guidance FY 2022 50
Slide 51: Appendix
©peach PROPERTY GROUP Appendix
Slide 52: 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
Slide 53: Appendix: Share data
©peach PROPERTY GROUP Appendix Share data
Slide 54: Share data
Share data Signifanct shareholder as of Dec 31, 2021 Information on the share Dec 31, 2021 Dec 31, 2020 y 26.13% Share capital in CHF 12 494751 Number of shares issued 12 494751 Nominal value per share in CHF 1.00 Number of treasury shares 5 682 50.79% Number of outstanding shares 12 489 069 7.56% K
Slide 55: Appendix: Financial calendar
©peach PROPERTY GROUP Appendix Financial calendar
Slide 56: Financial calendar
Financial calendar =] 20 May - Annual General Meeting 2022 | 30 August — Publication of half-year results 2022 | Q4 (date tbc) — Capital Markets day 2022 ©peach 56
Slide 57: 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
Slide 58: Investors, Analysts and Media contact
_|h 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 Investors, Analysts "