Patrizia Se · XETR:PAT

Patrizia — PATRIZIA Immobilien — 9M 2015 Earnings Presentation

38 slides from Patrizia's earnings presentation, Nov 12, 2015

  1. Slide 1: Conference Call on Q3 / 9M 2015

    Conference Call on Q3 / 9M 2015 Business Development, Financials & Outlook 12 November 2015 PATRIZIA Immobilien AG PATRIZIA Bürohaus | Fuggerstrasse 26 | 86150 Augsburg | T +49 821 50910-000 | F +49 821 50910-999 | immobilien@patrizia.ag | www.patrizia.ag

  2. Slide 2: Agenda

    Agenda  REVIEW Q3 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  THIRD PARTIES  CO-INVESTMENTS  BRIDGE INVESTMENTS  OWN INVESTMENTS  FINANCIALS Q3/9M  OUTLOOK FY 2015+2016 PATRIZIA Immobilien AG| © 2015 2

  3. Slide 3: Key Financials Q3 / 9M 2015

    Key Financials Q3 / 9M 2015 In EUR‘000 Q3 2015 Q3 2014 9M 2015 9M 2014 Comment Operating result 98,504 4,883 115,315 26,333 Sale of SÜDEWO as main EBT 97,979 297 109,627 15,487 earnings trigger Net profit for the period 82,225 -421 92,372 14,890 30.09.2015 31.12.2014 30.09.2014 Comment Thereof EUR 9

  4. Slide 4: Highlights Q3 2015 – I

    Highlights Q3 2015 – I DEALS IN THE THIRD QUARTER OF 2015 SÜDEWO (DE)  Sale is balanced in income from participations 1st tranche of Performance Fee: EUR 85.4m (2nd tranche in Q4/2015: EUR 17.5m) st 1 tranche of Dividend on Invested Equity: EUR 11.1m (2nd tranche in Q4/2015: EUR 2.2m)  Planned ear

  5. Slide 5: Highlights Q3 2015 – II

    Highlights Q3 2015 – II  Logistics as new asset class  New pan-European logistics platform established in September 2015  PATRIZIA Logistics Management Europe B.V. based in Amsterdam, Netherlands  Team of logistics experts with decades of international experience in the industry  Focus on e-com

  6. Slide 6: Agenda

    Agenda  REVIEW Q3  ASSEST UNDER MANAGEMENT – ASSET ALLOCATION  THIRD PARTIES  CO-INVESTMENTS  BRIDGE INVESTMENTS  OWN INVESTMENTS  FINANCIALS Q3/9M  OUTLOOK FY 2015+2016 PATRIZIA Immobilien AG| © 2015 6

  7. Slide 7: Assets under Management

    Assets under Management AUM ROSE BY 10% IN 2015 TO EUR 16BN AUM AS AT 30 SEPTEMBER IN EUR BILLION 16,0  53% of AuM managed on behalf of third parties without PATRIZIA equity involvement 13,5  7% of AuM on PATRIZIA’s own balance sheet: Bridge investments as short-term investments 8,4 intended for s

  8. Slide 8: Transaction Volume in Detail

    Transaction Volume in Detail TRANSACTION VOLUME – CURRENT YEAR TRANSACTION VOLUME – HISTORY (in EUR billion) (in EUR billion) Target: AuM growth of EUR 2bn -2.0 +0.2 +3.2 5,2 4,8 0,5 4,1 2,0 3,2 0,7 16,0 16,6 0,6 14,6 4,3 3,4 3,2 2,6 31.12.2014 Acquisitions Sales Others* 30.09.2015 31.12.2015e 2012

  9. Slide 9: Growth of PATRIZIA since 2007

    Growth of PATRIZIA since 2007 ASSETS UNDER MANAGEMENT (IN EUR BILLION) – BASIS FOR RECURRING INCOME NET GROWTH OF EUR 1.4BN IN 9M 2015  EUR 3.2bn acquisitions ≥ 16.6 16,0  EUR 2.0bn sales 14,6  EUR 0.2 bn value and currency changes  EUR 5.2bn fee generating transactions 11,8 8,4 7,3 Growth targe

  10. Slide 10: Asset Allocation of Funds and Co-Investments

    Asset Allocation of Funds and Co-Investments Capital Commitments Investor Domicile by Equity Commitment by Investor Type in Business Volume 2% 7% 13% 22% 45% 87% 24% Pension funds National institutional investors Insurances International institutional investors Saving Banks Banks, Endowments and Cor

  11. Slide 11: Asset Allocation of PATRIZIA, Funds and Co-Investments

    Asset Allocation of PATRIZIA, Funds and Co-Investments Geographical Footprint Sectors1 * of Assets1 2% 2% 2% 12% 4% 4% 6% 12% 43% 5% 67% 4% 6% 31% Germany BeNeLux Residential Logistics UK & Ireland France Office Hotel Nordics Other Retail Health GROWTH EXPECTATIONS Light Industrial Other Residential

  12. Slide 12: Assets under Management and Staff in Germany and Abroad

    Assets under Management and Staff in Germany and Abroad INCREASING ASSETS UNDER MANAGEMENT REQUIRE TO STRENGTHEN LOCAL TEAMS 7% MORE STAFF SINCE 09/2014: 812 EMPLOYEES IN TOTAL, THEREOF 92 ABROAD (80%) Assets under Management in EUR billion International Employees by Country excl. Germany* 16,0 14,6

  13. Slide 13: Agenda

    Agenda  REVIEW Q3 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  THIRD PARTIES – FUNDS BUSINESS  CO-INVESTMENTS  BRIDGE INVESTMENTS  OWN INVESTMENTS  FINANCIALS Q3/9M  OUTLOOK FY 2015+2016 PATRIZIA Immobilien AG| © 2015 13

  14. Slide 14: Third Party Business (I)

    Third Party Business (I)  Approx. EUR 5bn invested equity, another EUR 1.7bn open equity commitments for further AuM growth  Average equity backing within the funds: 62%  “PATRIZIA Gewerbe-Immobilien Deutschland II“ with target volume of EUR 600m launched in Q3  „PATRIZIA Dutch High Street Fund

  15. Slide 15: Third Party Business (II)

    Third Party Business (II) PATRIZIA GRUNDINVEST KVG  Retail business will start in 2016 with two funds: First acquisitions (EUR 128m) already made in November  Two office buildings on the RWTH Aachen University campus  Stadtquartier Südtor Stuttgart  These assets will be temporarily balanced as b

  16. Slide 16: Agenda

    Agenda  REVIEW Q3 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  THIRD PARTIES  CO-INVESTMENTS – IMPACT OF SÜDEWO SALE ON H2/2015  BRIDGE INVESTMENTS  OWN INVESTMENTS  FINANCIALS Q3/9M  OUTLOOK FY 2015+2016 PATRIZIA Immobilien AG| © 2015 16

  17. Slide 17: Sale of the SÜDEWO Group

    Sale of the SÜDEWO Group IMPACT OF THE SÜDEWO SALE IS SHOWN AS “INCOME FROM PARTICIPATIONS” IMPACT ON EARNINGS IN Q3 1st tranche of performance fee and dividend on invested equity (EUR 15m): EUR 96.5m IMPACT ON EARNINGS IN Q4 2nd tranche of performance fee and dividend on invested equity: EUR 19.7m

  18. Slide 18: PATRIZIA Capital Allocation

    PATRIZIA Capital Allocation IN EUR MILLION, AS OF 30.09.2015 ASSETS UNDER MANAGEMENT INVESTMENT CAPITAL PARTICIPATION IN % THIRD PARTIES 8,370 ‒ ‒ CO-INVESTMENTS 6,484 171.2 RESIDENTIAL 4,835 131.0 GBW GmbH 3,017 56.5 5.1 WohnModul I SICAV-FIS 1,775 70.5 10.1 Others 43 4.0 10.0 COMMERCIAL GERMANY 52

  19. Slide 19: Agenda

    Agenda  REVIEW Q3 – EVENTS HAPPENED  ASSETS UNDER MANAGEMNT  THIRD PARTIES  CO-INVESTMENTS  BRIDGE INVESTMENTS – “MANCHESTER“, “HARALD” AND “SUDERMANNZENTRUM”  OWN INVESTMENTS  FINANCIALS Q3/9M  OUTLOOK FY 2015+2016 PATRIZIA Immobilien AG| © 2015 19

  20. Slide 20: Bridge Investments

    Bridge Investments MANCHESTER FIRST STREET  No changes  The first asset will be sold till year‘s end 2015  Other existing buildings and the plots of land will be placed on the market in 2016  Book value of EUR 143m, shown in inventories (thereof EUR 118m existing buildings, EUR 25m plots of land

  21. Slide 21: Bridge Investments – Financials

    Bridge Investments – Financials KEY ITEMS OF THE P&L AND BALANCE SHEET  If we sell sub-portfolios as a share deal, the result is shown in the Income from the deconsolidation of subsidiaries item  If we sell them as an asset deal, the achieved sales price is shown in revenues and the disposal of as

  22. Slide 22: Agenda

    Agenda  REVIEW Q3 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  THIRD PARTIES  CO-INVESTMENTS  BRIDGE INVESTMENTS  OWN INVESTMENTS – PATRIZIA PORTFOLIO AND REAL ESTATE DEVELOPMENTS  FINANCIALS Q3/9M  OUTLOOK FY 2015+2016 PATRIZIA Immobilien AG| © 2015 22

  23. Slide 23: Consolidated Real Estate

    Consolidated Real Estate OWN PORTFOLIO  approx. 400 units should be left till year’s end  actual values: sale of 85 units in Q3, 357 in 9M UNITS UNITS UNITS REGION/ CITY 30.09.15 SHARE 31.12.14 SHARE 31.12.07 SHARE Cologne/Düsseldorf 370 50.2% 460 42.5% 1,627 12.4% Hamburg 191 25.9% 254 23.5% 1,41

  24. Slide 24: Agenda

    Agenda  REVIEW Q3 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  THIRD PARTIES  CO-INVESTMENTS  BRIDGE INVESTMENTS  OWN INVESTMENTS  FINANCIALS Q3/9M  OUTLOOK FY 2015+2016 PATRIZIA Immobilien AG| © 2015 24

  25. Slide 25: Service Business – Income Structure

    Service Business – Income Structure A SIMPLE WAY FOR STEADY GROWTH  Increase in earnings mainly through growth of assets under management 9M 2015: EUR 96.9m FEE SPLIT 9M 2014: EUR 70.7.0m 2014: EUR 106.3m Services 9M 2015: EUR 50.1m (52%) 9M 2015: EUR 46.8m (48%) 9M 2014: EUR 37.6m (53%) Real Estat

  26. Slide 26: Sources of Income – Service Business Revenues

    Sources of Income* – Service Business Revenues Fee structure Fees Q3 2015 Q3 2014 9M 2015 9M 2014 2014 Fixed percentage of the purchase costs of single Acquisition Fee EUR 13.5m EUR 2.9m EUR 23.7m EUR 21.7m EUR 34.5m assets or portfolios at the time of acquisition Fixed percentage of the proceeds/sa

  27. Slide 27: Sources of Income – Participations

    Sources of Income – Participations INVESTMENT RESULT AS GROWTH TRIGGER INCOME FROM PARTICIPATIONS EARNINGS FROM COMPANIES ACCOUNTED FOR USING THE EQUITY METHOD EUR million 9M 2015 9M 2014 2014 EUR million 9M 2015 9M 2014 2014 WohnModul I 4.2 2.3 3.2 SÜDEWO Advance profit distribution 3.6 5.4 7.3 Per

  28. Slide 28: Operating Result

    Operating Result CALCULATION OF THE ADJUSTED FIGURES In TEUR 3rd quarter 2015 3rd quarter 2014 9M 2015 9M 2014 2014 EBT (IFRS) 97,979 297 109,627 15,487 41,998 Amortisation on fund management contracts 492 622 1,476 1,863 2,485 Unrealised change in the value of 0 0 0 0 -51 investment property Realis

  29. Slide 29: Forecast raised further

    Forecast raised further FORECAST WAS INCREASED FOR THREE TIMES EUR 145-160m in 2015 and comparable range for 2016, given that bridge investments will be completely sold in 2016 1st forecast 2015 2nd forecast 2015 3rd forecast 2015 as at March 2015: as at June 2015: as at Nov 2015: Increase in operat

  30. Slide 30: Staff Costs

    Staff Costs DEVELOPMENT OF STAFF COSTS  Increase in staff costs by 20% to EUR 63.9m (9M 2014: EUR 53.4m) due to new appointments (+7% FTE y-o-y) and salary adjustments in line with market trends  EUR -3.0m effect from provisions for long-term variable compensation due to higher share price (shown

  31. Slide 31: P&L

    P&L EUR'000 Q3 2015 Q3 2014 9M 2015 9M 2014 2014 Revenues 134,760 53,462 237,567 138,111 291,815 Income from the sale of investment property 1,082 2,084 4,051 7,596 17,019 Changes in inventories -70,823 -10,027 -93,042 -4,849 -110,509 Other operating income 2,436 966 9,515 4,826 7,143 Income from th

  32. Slide 32: Positive Development of the Financial Situation

    Positive Development of the Financial Situation BANK LOANS VS. EQUITY RATIO  Free of debt in the field of financing own 100% investments till year end  Financing of bridge investments as temporary opposing development; reduction depends on sales process (EUR 691m Harald will stay stable, EUR 107m

  33. Slide 33: Net Asset Value

    Net Asset Value NAV / INVESTMENTS SEGMENT SHOULD REPRESENT ONLY 20% OF THE OPERATING RESULT FOR 2015  The NAV doesn’t reflect the value of the company, because the whole service business is not included in the NAV calculation  NAV is just one component for determining the companies’ value EUR‘000

  34. Slide 34: Balance Sheet

    Balance Sheet ASSETS EQUITY AND LIABILITIES EUR'000 30.09.2015 31.12.2014 EUR'000 30.09.2015 31.12.2014 A. Non-current assets A. Equity Goodwill 610 610 Share capital 76,324 69,385 Other intangible assets 37,916 39,407 Capital reserve 191,637 198,576 Software 9,975 10,795 Retained earnings Investmen

  35. Slide 35: Agenda

    Agenda  REVIEW Q3 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  BRIDGE INVESTMENTS  CO-INVESTMENTS  THIRD PARTIES  OWN INVESTMENTS  FINANCIALS Q3/9M  OUTLOOK FY 2015+2016 PATRIZIA Immobilien AG| © 2015 35

  36. Slide 36: New Outlook

    New Outlook OPERATING RESULT First outlook for 2015: Increase in operating result by approx. 10% (EUR 50.2m in 2014) First update (published in June 2015): Combined operating result for 2015+2016 of at least EUR 200 m Current Outlook for 2015+2016  Operating result of EUR 145-160 for 2015  Result

  37. Slide 37: Financial Calendar, Conferences and Roadshows

    Financial Calendar, Conferences and Roadshows 2015 November 12  Interim report for the first nine months of 2015 17-19  Roadshow with Berenberg Bank, Brussels, Amsterdam, Paris 24  Commerzbank German Commercial Property Forum, London 30  13th Berenberg European Conference, London 2016 January 19

  38. Slide 38: Contact Details

    Contact Details ARWED FISCHER MARGIT MILLER VERENA SCHOPP DE CFO HEAD OF IR ALVARENGA MANAGER IR PATRIZIA Immobilien AG PATRIZIA Immobilien AG PATRIZIA Immobilien AG PATRIZIA Bürohaus PATRIZIA Bürohaus PATRIZIA Bürohaus Fuggerstrasse 26 Fuggerstrasse 26 Fuggerstrasse 26 86150 Augsburg 86150 Augsburg

PATRIZIA Immobilien — 9M 2015 Earnings Presentation on 6ix