34 slides from Zug Estates Holding Ag Class B's earnings presentation, Mar 10, 2017
Slide 1: Zug Estates
ZUG —states
Slide 2: Media and analysts' conference
Zug Estates Group Media and analysts' conference Tobias Achermann, CEO Gabriela Theus, CFO Rotkreuz, March 10, 2017
Slide 3: Agenda
Agenda 1. At a glance 2. 2016 financial year in figures 3. Business activity and projects 4. Outlook 5. 2017 general meeting of shareholders 6. Q&A Zug Estates Group 3
Slide 4: 2016 in a nutshell
2016 in a nutshell − Consolidation of growth Property income CHF 40.1 m +2.3% Net income excl. revaluation CHF 24.0 m -0.1% Portfolio value CHF 1.3 bn +8.5% Payout per share1 CHF 23.00 +12.2% Total return per share 15.8% 1 Proposal of the board of directors − Vacancy rate at a record low 1.8% − Deve
Slide 5: Agenda
Agenda 1. At a glance 2. 2016 financial year in figures 3. Business activity and projects 4. Outlook 5. 2017 general meeting of shareholders 6. Q&A Zug Estates Group 5
Slide 6: Property income up by 2.3%
Property income up by 2.3% in CHF million 20121 2013 2014 20152 2016 Δ 16/15 Property income 29.0 34.7 37.4 39.2 40.1 2.3 % Hotel & catering income 20.7 20.2 20.6 19.0 16.5 -13.5 % Additional income/Other op. revenue 3.8 4.2 4.1 4.7 4.7 -0.5 % Total operating revenue 53.5 59.1 62.1 62.9 61.2 -2.7 %
Slide 7: Consolidation growth, stronger margin
Consolidation growth, stronger margin Operating revenue and income in CHF million or % 68 100 millions CHF 62,9 Other operating revenue 62,1 61,2 59,1 Hotel & catering income 53,4 51 75 Property income 62,30 62,80 60,70 56,20 Operating income before depreciation and 54,00 revaluation, as a percentag
Slide 8: Continuation of growth strategy
Continuation of growth strategy Fair value of portfolio in CHF million or % 1 400 100 millions CHF % Operating properties (at market value) 1 291 Undeveloped plots Investment properties under construction 1 189 Investment properties 1 200 75 1 111 Year-on-year change 999 1 000 50 904 800 25 15,7 10,
Slide 9: High residential proportion, solid principal tenants
High residential proportion, solid principal tenants Portfolio by use Tenant structure Based on projected rental revenue* as at December 31, 2016 Investment properties, based on projected rental revenue as at December 31, 2016 Other Novartis 7,8% Parking 3% 8% Education, leisure, culture 5% Resident
Slide 10: Vacancy rate at 1.8%
Vacancy rate at 1.8% Vacancy rate (on reference date) Breakdown of vacancies as at December 31, 2016 in % by use 6 5.4 Other Residential 5 2% 6% Retail 4.4 4% 4 Parking, before initial renting 20% 3 2.7 Office 24% 1.8 2 1.4 1 Parking 15% 0 2012 2013 2014 2015 2016 Voids before initial renting and st
Slide 11: Income from revaluation thanks to continuous project development
Income from revaluation thanks to continuous project development Split income from revaluation Discount rates 2016 real 6,0 Properties under Investment properties, Discount rate (real), in % construction Rotkreuz 5,5 5,0 4,5 4,3 4,1 4,0 4,0 3,5 3,4 3,5 3,0 14.4 Other investment 2,5 properties 2012 2
Slide 12: Solid equity base offering long-term stability
Solid equity base offering long-term stability Equity and investments in CHF million or % % millions CHF 100 100 Investments (right-hand axis) 90,6 92,5 Equity ratio (left-hand axis) 76,2 75 69,5 75 60,8 63,6 64,1 60,9 61,2 50 47,5 50 25 25 0 0 2012 2013 2014 2015 2016 Zug Estates Group 12
Slide 13: Systemic risk minimized by long-term fixed interest rates and low borrowing
Systemic risk minimized by long-term fixed interest rates and low level of borrowing Selected key figures Maturity structure of financial liabilities as at December 31 as at December 31 in CHF million 2012 2013 2014 2015 2016 0 Current Cash and cash 75.7 23.8 24.2 55.2 18.4 equivalents 1-3 years Fai
Slide 14: Payout increases by 12.2%
Payout increases by 12.2% Income and payout per series B registered share Stock market price and NAV per series B registered share as at December 31 160 1 800 CHF CHF 1 683 1 653 1 600 136,7 1 469 120 1 350 1 445 1 387 1 335 1 310 114,4 1 244 1 162 98,1 91,8 900 90,0 80 23,0 40 450 49,0 20,5 48,7 48
Slide 15: Total return per share at 15.8%
Total return per share at 15.8% Performance series B registered share 1 700 Performance in 2016 CHF ZUGN + 14.4% 1 600 SXI + 3.6% SPI - 1.4% 1 500 1 400 1 300 1 200 Dez 15 Mrz 16 Jun 16 Sep 16 Dez 16 ZUGN SXI, adjusted SPI, adjusted Zug Estates Group 15
Slide 16: Segment information
Segment information 2016 Hotel & Corporate & in CHF million Real estate catering eliminations Total Total operating revenue 50.1 17.1 - 6.0 61.2 Total operating expenses - 12.1 - 15.9 5.2 - 22.8 Revaluation│Income from sale of investment property 28.5 0.0 0.0 28.5 EBITDA 66.5 1.2 - 0.8 66.9 EBIT 64.
Slide 17: Agenda
Agenda 1. At a glance 2. 2016 financial year in figures 3. Business activity and projects 4. Outlook 5. 2017 general meeting of shareholders 6. Q&A Zug Estates Group 17
Slide 18: Suurstoffi – multifaceted residential area
Suurstoffi – multifaceted residential area Mix of uses Excellent accessibility with short distances Based on projected rental revenue as at December 31, 2016 Other Diverse spectrum of rental apartments – Almost 400 Parking 10% 1% apartments with different floor plans and 22 serviced rooms Education,
Slide 19: Suurstoffi – third development phase under construction
Suurstoffi – third development phase under construction Serviced accommodation − 152 rental apartments with 1.5 to 5.5 rooms, 72% reserved (end-Feb. 2017) − 8 student apartments (52 rooms), operated by JUWO Additional workplaces − 9 500 m2 office and commercial space, 76% rented (end-Feb. 2017) − An
Slide 20: Suurstoffi – office building S22 under construction
Suurstoffi – office building S22 under construction, due for completion in summer 2018 Office building for around 600 workplaces Long-term rental contract with anchor tenant Amgen; negotiations with other interested parties at advanced stage Tallest wooden building in Switzerland (hybrid timber- con
Slide 21: Suurstoffi – Aglaya garden high-rise as of 2019
Suurstoffi – Aglaya garden high-rise as of 2019 70-meter tall garden high-rise at center of site − 85 single-story condominiums with spacious, greened external areas − Office space for approx. 75 workplaces Sale of condominium properties − Innovative marketing approach with housing configurator − 6%
Slide 22: Suurstoffi – home to the new IT department of Lucerne University
Suurstoffi – home to the new IT department of Lucerne University of Applied Sciences and Arts Long-term rental contact with Lucerne University of Applied Sciences and Arts Construction of Suurstoffi campus with focus on IT and finance , in two phases: − Transitional solution since summer 2016 in the
Slide 23: Metalli – living hub with wide range of amenities
Metalli – living hub with wide range of amenities Mix of uses Based on projected rental revenue* as at December 31, 2016 Metalli shopping mall with approx. 16 000 m2 of accessible sales area, annual turnover of around CHF 170 million, a Other frequency rate of more than 4 million people per year and
Slide 24: City Center site – long-term development potential
City Center site – long-term development potential Development and densification of portfolio Mixed use at a central location Cantonal structure plan shows the City Center site to be situated largely in a level II densification area with a plot ratio of up to 3.5 (standard value) Master plan initiat
Slide 25: Clearly defined development will drive growth from 2018
Clearly defined development will drive growth from 2018 Development pipeline As at December 31, 2016 Zug Estates Group 25
Slide 26: Agenda
Agenda 1. At a glance 2. 2016 financial year in figures 3. Business activity and projects 4. Outlook 5. 2017 general meeting of shareholders 6. Q&A Zug Estates Group 26
Slide 27: 2017 financial year – outlook
2017 financial year – outlook − Rise in rental income − Preparations for imminent, major growth drive result in higher costs and maintenance − Consolidation of hotel & catering business unit; renovation of rooms at Parkhotel in summer − Operating income before depreciation and revaluation on a par w
Slide 28: New CFO as of May 2017: Mirko Käppeli
New Zug Estates Group CFO as of May 2017: Mirko Käppeli (born 1979) Professional background 2010 – 2017 in various financial roles within the Seewarte Group, CFO since 2011. Previously worked as a Finance Manager in various companies, including Mobimo between 2005 and 2009. Activities on governing a
Slide 29: Agenda
Agenda 1. At a glance 2. 2016 financial year in figures 3. Business activity and projects 4. Outlook 5. 2017 general meeting of shareholders 6. Q&A Zug Estates Group 29
Slide 30: Proposals to the 2017 general meeting of shareholders
Proposals to the 2017 general meeting of shareholders − Payout of CHF 2.30 per series A registered share and CHF 23.00 per series B registered share from the reserves from capital contributions − Dr. Beat Schwab as new chairman of the board of directors − Reduction in number of members of the board
Slide 31: Agenda
Agenda 1. At a glance 2. 2016 financial year in figures 3. Business activity and projects 4. Outlook 5. 2017 general meeting of shareholders 6. Q&A Zug Estates Group 31
Slide 32: Q&A
SL \ ANG A} Zug Estates Group
Slide 33: Disclaimer
Disclaimer The financial data as well as the other information presented herein constitute selected information. The information in this presentation does not constitute an offer or invitation and may not be construed as a recommendation by us to purchase, hold or sell shares of Zug Estates Holding
Slide 34: Zug Estates
ZUG —states