Peach Property Group Ag · SIX:PEAN

Peach Property — FY2023 Earnings Presentation

53 slides from Peach Property's earnings presentation, Mar 21, 2024

  1. Slide 1: FY 2023 Results

    FY 2023 Results March 21, 2024 ©peach PROPERTY GROUP

  2. Slide 2: Presenters

    Presenters Thorsten Arsan Chief Financial Officer Klaus Schmitz Executive Chairman Member of Peach Property Group AG's Board e October 21 and Executiv Chairman since November He has had a long career in investment Former Head of Corporate Financ Deputy Head of Finance & Treasury at Vonovia SE former

  3. Slide 3: FY 2023 — highest operating profit

    FY 2023 — highest operating profit Adjusted FFO | EBITDA margin €22.8m | 54.7 Result after taxes ONY (pro forma)* €-193.9m| e56.8% a -7.5% y-0-y -8.0% of MV2 FY 22: €-15.0m 31/12/22: 54.7% ESG Risk Rating Tenant EPRA NTA per & Reporting satisfaction? Equity ratio Phere 8.1% €47.37 31/12/22: 39.6% 31

  4. Slide 4: Agenda

    Agenda 1. The environment in FY 2023 2. Business Performance FY 2023 3. Financial Performance FY 2023 4. ESG Update 5. Guidance & mid-term financial targets 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV, NTA & Guidanc

  5. Slide 5: The environment in 2023 — signs of recovery?

    The environment in 2023 —signs of recovery? Bond yields declining... Slight uptick in transactions... RE prices seem to stabiliz —{_15y DE government bondyieldst_} {__DE realestate transactionst — }-— ImmoScout24 WohnBarometer* 55 . 3 oe 35 mHouse Apartments es ba rT 3 2 = 25 = 710% ; 15 x 2 2 % -20

  6. Slide 6: Inflation and scarcity drive market rents

    Inflation and scarcity drive market rents Peach Top 10 locations with continued strong market rental growth! Rent growth counteracts value correction 230. Property price index by German Pfandbriefbanks? 210 @ a — Capital value index Kaiserslautern 81% @ 70 —— Residential rents index Heidenheim Helms

  7. Slide 7: No relief in sight for undersupply in the German housing market

    No relief in sight for undersupply in the German housing market Structural undersupply in German housing market... ..results in severe housing deficit... 1200 Accumulated deficit of new apartments vs. 700 government target rate (000) m= Completed new appartments (000)! 1000 —— Government target rate

  8. Slide 8: Agenda

    Agenda 1. The environment in FY 2023 2. Business Performance FY 2023 3. Financial Performance FY 2023 4. ESG Update 5. Guidance & mid-term financial targets 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR

  9. Slide 9: Overview investment properties

    & Overview investment properties Number of residential units Actual rental income (€m) Market value (€m)* Gross rental yield? FY 2022 27549 FY 2022 116.5 FY 2022 2602.8 FY 2022 45% S S e FY 2023 27500 FY 2023 120.9 FY 2023 2408.5 |p aes 4.8% Residential floor space in sqm. Target rental income (€m)

  10. Slide 10: Sustained rental growth

    & Sustained rental growth New letting contracts concluded slightly Figures in € / sqm above market levels, eg Sources of rental growth target C open 731 cc 7 02 712, S ~50% min. 3.5% L-f-l growth ~20% target ~30% Fluctuation Vacancy reduction Increase in-place rents Our l-f-l rental growth track-rec

  11. Slide 11: Increase in vacancy due to revision of renovation plan

    Increase in vacancy due to revision of renovation plan Development of vacant residential units and vacancy ratio Vacant residential units by vacancy category 2190 1158 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 + Approx. 3 000 new rental contracts concluded in 2023. ©peach 2043 | «effective vacancy» -2

  12. Slide 12: Capex significantly reduced

    & Capex significantly reduced E sa * On the back of higher construction and financing costs and to preserve our liquidity, investments have been sharply reduced in 2023. €10.8/sqm + EUR 19.1m (o/w approx. 70% Tl and 30% Capex) spent in FY 2023. €22.5m €41.6m €57.6m €19.1m FY 2020 FY 2021 FY 2022 FY

  13. Slide 13: Portfolio value impacted by adverse environment for German real estate

    Portfolio value impacted by adverse environment for German real estate Valuation result FY 2023 Key valuation indicators = Operational progress & discount rate = Initial valuation Total revaluation loss as % of investment properties Value per sqm Rent multiple Gross rental yield? €1.6m (0.1%) a €-13

  14. Slide 14: Agenda

    Agenda 1. The environment in FY 2023 2. Business Performance FY 2023 3. Financial Performance FY 2023 4. ESG Update 5. Guidance & mid-term financial targets 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR

  15. Slide 15: Financial performance in FY 2023

    << Financial performance in FY 2023 Rental income (€m) FFO I (€m) Adjusted EBITDA (€m) Operating Income (€m) FY 2022 116.5 FY 2022 19.2 FY 2022 593 FY 2022 159.4 S c e FY 2023 120.8 FY 2023 22.8 FY 2023 66.1 FY 2023 133.3 Result after tax (€m) Equity ratio (IFRS) EPRA NTA (€/share) Loan-to-value -15

  16. Slide 16: Debt structure as of December 31, 2023

    Debt structure as of December 31, 2023 Maturity profile! 700 594 600 > 3 500 2 fa § 400 5 300 g 163 3 200 140 116 95 100 30 —_ = i | vara 2024 2025 2026 2027 2028 2029 > 2030 Unencumbered assets: €371m msecured unsecured m Corporate Bonds = RCF (11/75) ’As of December 31, 2023 Loan-to-value (net) IC

  17. Slide 17: Operating profitability in FY 2023

    <= Operating profitability in FY 2023 Maintenance in € per sqm Administration in € per sqm Comments 6.00 * The increase in maintenance expenses is 4.98 mostly due to inflation-related price increases. 9.59 470 = 818 834 * The decrease in administration costs is driven - 7.30 - 3.43 by the insourcing

  18. Slide 18: Agenda

    Agenda 1. The environment in FY 2023 2. Business Performance FY 2023 3. Financial Performance FY 2023 4. ESG Update 5. Guidance & mid-term financial targets 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR

  19. Slide 19: Sustainability is central to our actions

    = Sustainability is central to our actions \ Business performance \ > Economic performance > Risk management Tenant satisfaction » Well-being of our tenants > Affordable and sustainable living spaces Esk Environment > Reduction of emissions and energy ‘consumption > Responsible handling of water, ef

  20. Slide 20: Decarbonization path

    ‘Musvative representation Achieve climate-neutral portfolio. mainly through: > Conversion to CO,-neutral heat supply > Improvement in building insulation Carbon intensity in kg COze/m*a (Scope 1 and 2) 2021 2030 2050 Targets correspond to 4 Ne * Annual reduction of 8 600t of CO, emission until 2030

  21. Slide 21: Tenant satisfaction as a leading priority

    = Tenant satisfaction as a leading priority KPls Property Management ticketing system Periode YY 01.01.2023 — 31.12.2023 Created Tickets 133 821 «One touch» rate 91.3% Full resolution Peach Points only Full resolution incl. system partners 18.8 hours 90.8 hours @ Satisfaction ratio of tickets | 76%

  22. Slide 22: ESG Awards, Ratings & Indices

    ESG Awards, Ratings & Indices 1 ESG Risk = © * Improved risk rating score compared to 2022. Ratin forrateo | * In 3! percentile of global rating universe (> 15 000 companies). os Olay 2021 os ESG Rating ‘ ‘ + Upgrade to «A» from «BBB». 2023 MSCI 6 ESG RATINGS eee oe Too a a 2022 Award for + Achievem

  23. Slide 23: Agenda

    Agenda 1. The environment in FY 2023 2. Business Performance FY 2023 3. Financial Performance FY 2023 4. ESG Update 5. Guidance & mid-term financial targets 6. Appendix * — Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&

  24. Slide 24: Guidance & mid-term financial targets

    “ Guidance & mid-term financial targets Guidance FY 2024 Financial targets for the period until 2025 (-f-L rental growth min. 3.5% p. L-f-l rental growth ~4% Adj. EBITDA Margin +500bps vs. FY 20221 Net Rental Income Dividend Policy 50% of FFO | subject to conditions of financing markets @PEAch — wac

  25. Slide 25: Peach's focus in 2024

    ©peach Increase rents * Growing population and number of households. * Lack of supply; new construction is slowing down due to high construction and financing costs. + Rising market rents reflect high demand for «affordable housing» product. Peach's focus in 2024 Cost control * New CEO, Gerald Klinc

  26. Slide 26: Agenda

    Agenda 1. The environment in FY 2023 2. Business Performance FY 2023 3. Financial Performance FY 2023 4. ESG Update 5. Guidance & mid-term financial targets 6. Appendix Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR

  27. Slide 27: Appendix: Portfolio details

    ©peach PROPERTY GROUP Appendix Portfolio details

  28. Slide 28: Portfolio structure as of Dec 31, 2023

    @& Portfolio structure as of Dec 31, 2023 estment properties €27m (1%, Total portfolio market value Development properties €78m (3%) €2 474m OPeach __ swiewwresseemineddy woes une AG a of Dec 2025, crud raheor esses Maps: © Vempas.com 28

  29. Slide 29: Portfolio fully focused on residential space

    Portfolio fully focused on residential space Rental income by use category as of December 31, 2023 Rental income breakdown by federal state as of December 31, 2023 In% of total rentalincome In% of target rental income Parking & other 5673 2.6% 3.9% Commercial 2.8% we \ | = North Rhine-Westphalia Pre

  30. Slide 30: Typical assets in Peach's portfolio

    & Typical RSIS in Peach's porttolio 30

  31. Slide 31: Peach Points — our regional tenant shops

    & Peach Points — our regional tenant shops Cornerstone of direct dialogue with our tenants \ 15 Peach P. n Dortmund! | Munster / FaBberg Recklinghausen Mart Helmstedt Gelsenkirchen Essen Central point of contact for rental and administrative matters Oberhausen Witzenhausen Erkrath. Heidenheim Ludwig

  32. Slide 32: 8 12 20 13 11 14 5 15 1 16 17 16 18 19

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

  33. Slide 33: Development project in CH «Peninsula Wädenswil»

    Development project in CH «Peninsula Wadenswil» - construction in full swing 57 condominiums in 5 buildings Total sales volume expected CHF 130-140m Construction status as of December 31, 2023 _ ! + Notarized: 33 residential units (Dec 31, 2022: 19). Stage of completion: 11.5% (Dec 31, 2022: 3.3%).

  34. Slide 34: Appendix: Consolidated statements

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

  35. Slide 35: Consolidated statement of income

    Consolidated statement of income Figures in EUR thousands Rental income ‘Valuation gains from investment properties Profit on disposal of investment properties Income from development properties Other cperating income Operating income J. Expenses from letting of investment properties J.Naluation los

  36. Slide 36: Consolidated statement of financial position

    Consolidated statement of financial position Figures in EUR thousands Cash & Cash equivalents Trade receivables Other receivables Current financial receivables Contract assets Development properties Investment properties held for sale Total current assets Investment properties Advance payments for i

  37. Slide 37: Consolidated statement of financial position (continued)

    Consolidated statement of financial position (continued) Figures in EUR thousands Share capital /. Treasury shares Share premium Hybrid capital J. Other reserves J. Currency translation changes Retained earnings Equity attributable to Peach Property Group AG equity holders Equity attributable to non

  38. Slide 38: Consolidated statement of cash flows

    Consolidated statement of cash flows Figures in EUR thousands Result before taxes Adjustments for non-cash expenses/income Depreciation and amortization Valuation result from investment properties Impairment of development properties Net result on disposal of investment properties Change in bad debt

  39. Slide 39: Consolidated statement of cash flows (continued)

    Consolidated statement of cash flows (continued) Figures in EUR thousands 2 Dec 31, 2022 Comments -1941 Capital expenditures for modernization and tenant improvernents of EUR 19 133 thousand were substantially lower than in the previous year following a revision of our renovation plan necessitated b

  40. Slide 40: Appendix: Funds from operations

    ©peach PROPERTY GROUP Appendix Funds from operations

  41. Slide 41: Funds from operations (FFO)

    Funds from operations (FFO) Figures in EUR thousands Dec 31, 2023 Dec 31, 2022 EBIT 43 686 Depreciation and amortization 1907 EBITDA 45 593 ./. Reversal of impairment loss on development properties 13.197] 0) /. Valuation result of investment properties 209 405 12.237 /. Net result on disposal of in

  42. Slide 42: Appendix: LTV and ICR

    ©peach PROPERTY GROUP Appendix LTV and ICR

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

    Loan-to-value and interest coverage ratio LTV ICR Figures in EUR thousands eestvierx) Dec 31, 2022 Figures in EUR thousands astitrx) §=Dec 31, 2022 Market value of real estate investment portfolio 2 408 47. 2 602 837 eBIT aFoyio 45 686 Market value of real estate development 25598 34031 — — portfoli

  44. Slide 44: Appendix: EPRA NAV, NTA & Guidance

    ©peach PROPERTY GROUP Appendix EPRA NAV, NTA & Guidance

  45. Slide 45: EPRA NRV & NTA

    EPRA NRV & NTA Figures in EUR thousands Dec 31, 2023 EPRA NRV EPRA NTA Equity attributable to Peach Property Group AG equity holders ./. Hybrid instruments Diluted NAV at fair value ./. Deferred tax in relation to fair value gains 950 306 950 306) - 39758 910 548 88 116 22 825 - 39 758) 910 548 22 8

  46. Slide 46: Appendix

    ©peach PROPERTY GROUP Appendix

  47. Slide 47: Energy KPIs of Peach Portfolio

    = Energy KPIs of Peach Portfolio Distribution of energy efficiency classes Source of heat energy & supply ™Gas m= District Heating =Power =Oil mcentral m decentralized German CO, levy Share tenant = Share landlord % 10% 20% 50% =~, aia H | | 50% 1 G0% Bieigbgs ¢ eg 100% 90% 80% 70% " “ 60% 50% 7 = |

  48. Slide 48: Peach's decarbonization tool

    = Peach's decarbonization tool For illustration purposes only 1 pec ° e Szenario vomit <2 ‘ie | wd decarbRE 2021 fafinah ei ~ A AC Boeka Flachen beaneehiniy ip2 Em == Flachen ort WEIGE spez COZ D vere 1 Bkkgins Bocum | 18 224 apna Gesamt 580-23. 4a/0 Primarenergiefaktor 1,22 Primarenergie ‘Auswahi 1

  49. Slide 49: Appendix: Share data

    ©peach PROPERTY GROUP Appendix Share data

  50. Slide 50: Capital market development

    << Capital market development Credit ratings (Corporate Rating) Recent capital market transactions Secured financing of EUR 33 million [s]zyy «stable» Convertible bond 3.0% CHF 50.0 million; conversion price CHF 15.00 Fitch Ratings Mandatory convertible bond 5% CHF 112.3 million; conversion price CH

  51. Slide 51: Share data

    << Share data Significant shareholders! as of Dec 31, 2023 29.93% 47.32% 8.20% 39-27% 3.86% 442% m Ares Management Corporation ™ Franciscus Zweegers = Rainer- Marc Frey, through: H21 Macro Limited = Kreissparkasse Biberach = Beat Frischknecht, through: BFW Group AG = Other Note: The notional free fl

  52. Slide 52: 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

  53. Slide 53: Investors, Analysts and Media

    Investors, Analysts and Media Thorsten Arsan, Chief Financial Officer Vanessa da Cruz, Head of IR +41 44 485 50 32 investors@peachproperty.com

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