Patrizia Se · XETR:PAT
Patrizia — Investor Presentation (May 2023)
58 slides from Patrizia's investor presentation, May 12, 2023
Slide 1: Company Presentation May 2023
Company Presentation May 2023 PATRIZIA | © 2023
Slide 2: 3M 2023 Financial Results CFO video presentation
PATRIZIA PATRIZIA SE | 3M 2023 Financial Results | CFO video presentation Access via weblink: bit.ly/PAT3M2023 Access via QR code: PATRIZIA | © 2023 2
Slide 3: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 3
Slide 4: PATRIZIA – A leading partner for global real assets
At a glance PATRIZIA – A leading partner for global real assets Platform Funds Financials Total service fee income (EUR): 39 58bn 325m years of real asset experience Assets under management (EUR) FY 2022 Top 2 EBITDA (EUR): fully independent 5% 79m investment manager for real estate in Europe1 fund
Slide 5: Evolution from a German real estate company to a global real asset investment manager
At a glance Evolution from a German real estate company to a global real asset investment manager 58.1bn 3M 2023 PATRIZIA | A leading manager of global real assets adopts SE structure for sustainable future growth AUM 2021/2022 Whitehelm Capital, Advantage | Acquisition of infrastructure and multi m
Slide 6: Update on recent developments: Continuing our transformation
At a glance Update on recent developments: Continuing our transformation to a global real asset investment manager M&A | Copenhagen Product | Tokyo Product | Amsterdam PATRIZIA acquires the multi-manager PATRIZIA secures a PATRIZIA launches Sustainable Advantage Investment Partners to EUR 1bn mandat
Slide 7: Strategic focus on growth to the benefit of clients and shareholders
At a glance Strategic focus on growth to the benefit of clients and shareholders Global Presence via Regional Platforms Our Vision: Nurture and grow our regional platforms in Europe, the Asia-Pacific, and the North American region Leading Broadening of Client Base Offering a broad product shelf to l
Slide 8: Global reach combined with local expertise and local client relationships
At a glance Global reach combined with local expertise and local client relationships > 500 28 PATRIZIA offices globally institutional clients to service clients & manage real assets locally > 7,000 private clients > 40 boutique operating partners worldwide > 30 geographies of clients from > 30 diff
Slide 9: One-stop shop for a broad variety of clients’ investment needs
At a glance One-stop shop for a broad variety of clients’ investment needs Market-leading Bespoke Single asset/portfolio Global Partner Multi strategy real assets funds account solutions deal opportunities solutions solutions • Open-/closed-ended • Individual, nimble strategies • Sourcing, underwrit
Slide 10: PATRIZIA offers full services across the value chain
At a glance PATRIZIA offers full services across the value chain Fund Management Investment Investment Strategy (i.a. Portfolio management, Transactions Asset Development Solutions & Research Reporting) (Sourcing, Acq., Sales) Management Management Fund Services Capital Client (i.a. Administration,
Slide 11: Exemplary investments in real estate and infrastructure for our global clients
At a glance Exemplary investments in real estate and infrastructure for our global clients Sample investments Energy Storage, Infrastructure Equity, GER Logistics, Real Estate, FRA Retail, Real Estate, DEN Transportation infrastructure operator, Debt Financing, INTL Office Building, Real Estate Digi
Slide 12: International and diverse Governance & Leadership
At a glance PATRIZIA SE – International and diverse Governance & Leadership BOARD OF DIRECTORS + International, diverse, experienced & tech-savvy Board of Directors Uwe H. Wolfgang Jonathan Axel Marie Saba Philippe Reuter (Chair) Egger Feuer Hefer Lalleman Nazar Vimard Audit Committee Nomination and
Slide 13: PATRIZIA ranks as 2nd largest independent real estate investment manager in Europe
At a glance PATRIZIA ranks as 2nd largest independent real estate investment manager in Europe IREI Ranking 2012 to 2022 Top 10 Managers based on European real assets (EUR m), 2021 Swiss Life Asset Managers 1 insurance group subsidiary 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 AXA IM
Slide 14: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 14
Slide 15: Why invest in PATRIZIA – Our Equity Story
Equity Story Why invest in PATRIZIA – Our Equity Story Structural Growth Market We are active in alternatives, a stable and structurally growing asset class, with a long-term investment horizon and favorable cash profiles Giving Back to Society Increased Diversification PATRIZIA Financial Flexibilit
Slide 16: Long-term dynamics support demand for real asset investments
Equity Story Long-term dynamics support demand for real asset investments Intense pension reform efforts around the globe following increased life Structural growth market expectancy drives demand for funded pension programs managed by the private sector - pension funds are PATRIZIA's largest client
Slide 17: Real Assets continue to offer long-term value and growth opportunities
Equity Story Real Assets continue to offer long-term value and growth opportunities • Changing amenities regarding living, working and purchasing creates a continuous demand for future-proof real estate REAL ESTATE • Significant value opportunities through active asset management • Relatively new as
Slide 18: Multi-trillion USD Infrastructure Gap offers significant AUM growth opportunities
Equity Story Multi-trillion USD Infrastructure Gap offers significant AUM growth opportunities Annual average infrastructure need (2017-2035) | in USD trillion 0.5 0.5 1.1 3.7 0.1 0.1 0.4 0.9 Roads Rail Ports Airports Power Water Telecom Total Source: McKinsey Global Institute PATRIZIA | © 2023 18
Slide 19: Why invest in PATRIZIA – Our Equity Story
Equity Story Why invest in PATRIZIA – Our Equity Story Structural Growth Market Giving Back to Society Increased Diversification Our continuously increasing product PATRIZIA portfolio covers various asset classes and regions, stabilizing income by diversification Financial Flexibility Future Proof A
Slide 20: High quality assets and broad diversification are key for stable AUM development
Equity Story High quality assets and broad diversification are key for stable AUM development 58.1 EUR bn sqm 17.2 m real estate assets 81 % assets under under management resilient Core and management Core plus strategies 3%3%2% 6% 5% 19% 3% 2% 15% 28% 4% 5% AUM by AUM by AUM by 52% 17% 7% geography
Slide 21: Predictable management fees on the back of long-duration AUM and broad client base
Equity Story Predictable management fees on the back of long-duration AUM and broad client base Maturity breakdown of AUM1 Equity commitments by clients2 75% 61% 2% 5% 10% 47% 32% 22% 83% 8% >10 years/unlimited 5–10 years Top 1 Top 5 Top 10 Top 25 Top 50 Top 100 2–5 years <2 years Client Clients Cli
Slide 22: A global client base served by experts on the ground
Equity Story A global client base served by experts on the ground understanding local requirements Client philosophy 17% • Regional presence to understand client requirements better • Business success based solely on delivering performance • Bespoke & highest level of reporting 12% > 30 > to ensure
Slide 23: Why invest in PATRIZIA – Our Equity Story
Equity Story Why invest in PATRIZIA – Our Equity Story Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Financial Flexibility Future Proof We offer investment solutions in line with megatrends like Demographics, Digital- Asset Expertise lisation, Urbanisation and De
Slide 24: Products offer attractive investment solutions in line with megatrends
Equity Story PATRIZIA’s products offer attractive investment solutions in line with megatrends Demographics Urbanisation Digitalisation Decarbonisation By 2050, 70% of the global Demographic change creates needs Data consumption is growing Decarbonisation as global population is expected to live in
Slide 25: Infrastructure investments are critical to addressing today's concerns
Equity Story Infrastructure investments are critical to addressing today's concerns Thematic: Thematic: • Climate change impacts water scarcity and need for circular economy • Decarbonisation Decarbonisation Opportunities: and Energy Opportunities: • Smart metering Transition • Energy-from-waste and
Slide 26: We incorporate ESG into every step of our investment process
Equity Story We incorporate ESG into every step of our investment process Exit/Sales Development & • Continuous hold/sell Refurbishment analysis • ESG DD checklist Asset • Climate change risk • Sustainable and Management innovative building design Sourcing & • Asset ESG performance • Carbon neutral
Slide 27: Why invest in PATRIZIA – Our Equity Story
Equity Story Why invest in PATRIZIA – Our Equity Story Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Our combination of local people on the ground, strong and innovative in-house Financial Flexibility research and experience throughout Future Proof cycles enables
Slide 28: Expanding global presence while maintaining European roots
Equity Story Expanding global presence while maintaining European roots 22% 37% Fund Management & Operations Asset & Development Management 7% ∼ 1000 Transactions & Alternative Investments IT, Digitalisation, TechLab FTE 7% 7% Global Client Solutions & Research Corporate & Other 20% 6% 3% 3% Germany
Slide 29: PATRIZIA funds outperformed unlisted European real estate benchmark consistently
Equity Story PATRIZIA funds outperformed unlisted European real estate benchmark consistently PATRIZIA fund performance vs. INREV Index performance1 7.7% 7.2% 1.5% ⚫ PATRIZIA fund performance ⚫ INREV Index (average) outperformance 5.9% 2.1% outperformance 6.2% 2.2% outperformance 5.1% 3.1% 3.7% 5% o
Slide 30: Strong footprint in retail investor business with further growth opportunities
Equity Story Strong footprint in retail investor business with further growth opportunities Investment volume | EUR m1 • Investment volume exceeds 1.7 billion Euros 1,750 1,500 • More than 10,000 tickets signed Facts 1,250 • Average cash distribution for the financial years 1,000 2016 to 2022 is 4.5
Slide 31: Why invest in PATRIZIA – Our Equity Story
Equity Story Why invest in PATRIZIA – Our Equity Story Structural Growth Market Giving Back to Society Increased Diversification PATRIZIA Financial Flexibility Future Proof Our Balance Sheet is net cash positive with a high net equity ratio, enabling strategic M&A, organic growth and co- investments
Slide 32: AUM growth directly translates into growing and strongly recurring management fees
Equity Story AUM growth directly translates into growing and strongly recurring management fees 60.0 - 59.1 65.0 60 50 47.0 48.6 +21.1 % p.a. 44.5 300 Management fee 41.0 40 growth 2012 – 2022 241.0 30 209.1 190.9 193.4 21.9 175.3 150 20 18.6 16.6 11.8 14.6 93.2 +21.6 % p.a. 10 6.9 81.5 89.1 68.1 AU
Slide 33: Growth trend of fees temporarily impacted by subdued market environment
Equity Story Growth trend of fees temporarily impacted by subdued market environment Total service fee income | EUR m Market Covid-19 years shifts 348.0 346.4 320.2 327.6 324.7 100% 268.6 91.8 85.9 61.2 19% 92.5 86.1 22.5 7% 211.9 51.4 188.6 65.3 48.1 52.4 140.0 29.2 66.9 25.0 75% 19.7 70.3 51.8 58.
Slide 34: Growth of recurring fee income compensates for the decline of other revenue streams
Equity Story Growth of recurring fee income compensates for the decline of other revenue streams Management fees | EUR m Transaction fees | EUR m Performance fees | EUR m Performance fees | EUR m 62.2 +13.8% 54.7 25.9 - 21.3% 20.4 2.2 - 51.9% 0.6 1.1 0.1 1.7 1.0 3M 2022 3M 2023 3M 2022 3M 2023
Slide 35: Strategic reorganisation and cost containment improve net operating expenses
Equity Story Strategic reorganisation and cost containment improve net operating expenses as planned Net operating expenses| EUR m • Net operating expenses down 5.2% y-o-y to EUR 58.2m despite consolidation of ADVANTAGE Investment Partners -3.3 61.4 16.9 and Whitehelm 58.2 4.1 • Overall positive dev
Slide 36: Continued increase in management fees and lower net opex drive EBITDA growth
Equity Story Continued increase in management fees and lower net opex drive EBITDA growth Composition of EBITDA | EUR m • EBITDA up 2.9% y-o-y to of EUR 27.2m despite subdued -21.3% -66.1% -5.2% market environment 20.4 1.7 58.2 +13.8% -51.9% • Favorable development of total service fee inc
Slide 37: Confirmation of moderately optimistic guidance for fiscal year 2023
Equity Story Confirmation of moderately optimistic guidance for fiscal year 2023 12M 3M 3M Guidance • Client investment activity is expected to pick up only in 2022 2022 2023 FY 2023e the second half of FY 2023 • Organic AUM growth expected to more than offset AUM 59.1 55.3 58.1 60.0 – 65.0 (in EUR
Slide 38: Strong balance sheet provides for security and the ability to make strategic moves
Equity Story Strong balance sheet provides for security and the ability to make strategic moves Strong balance sheet Significant liquidity • Strong balance sheet with net equity EUR m 31.03.2023 EUR m 31.03.2023 ratio of more than 70% and available Total assets 2,049.3 Bank balances, 418.0 liquidity
Slide 39: Co-Investments to boost products, intensify client relationships
Equity Story Co-Investments to boost products, intensify client relationships and to exploit opportunities Third-party business| EUR bn PATRIZIA SE Balance Sheet| EUR m Cash and cash equivalents 358 9.7 Equity 1,326 AUM Co-Investments1 247 ….58.1 ∑ 48.4 Dawonia profit entitlements1 344 Liabilities 7
Slide 40: Dawonia as PATRIZIA’s largest co-investment continues to contribute to performance
Equity Story Dawonia as PATRIZIA’s largest co-investment continues to contribute to performance • Dawonia is one of the largest housing companies in Munich and southern Germany with around 27,000 flats • Around 80% of the housing stock is concentrated in the 20 largest locations in southern Germany
Slide 41: Why invest in PATRIZIA – Our Equity Story
Equity Story Why invest in PATRIZIA – Our Equity Story Structural Growth Market Giving Back to Society Increased Diversification We contribute to the enhancement of society by distributing up to 1% of the EBITDA to the PATRIZIA Foundation PATRIZIA Financial Flexibility Future Proof Asset Expertise P
Slide 42: We are proud to make a positive impact by donating up to 1% of EBITDA
Equity Story We are proud to make a positive impact by donating up to 1% of EBITDA Our global impact • Around 280,000 supported children and young people • 21 KinderHaus facilities in 12 countries on 4 continents Germany 500,000 children should receive an education by 2030 with the help of the PATRI
Slide 43: Why invest in PATRIZIA – Our Equity Story
Equity Story Why invest in PATRIZIA – Our Equity Story Structural Growth Market We are active in alternatives, a stable and structurally growing asset class, with a long-term investment horizon and favorable cash profiles Giving Back to Society Increased Diversification We contribute to the enhancem
Slide 44: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 44
Slide 45: Ambitious but achievable long-term sustainability goals
ESG activities Ambitious but achievable long-term sustainability goals being continuously set into practice PATRIZIA Sustainability Goals 1 2 3 4 “ Become a leading sustainable Achieve net zero carbon status Become a leading global Be an employer of choice in investor with a consistent UN across our
Slide 46: The principles and sustainability frameworks that direct us
ESG activities The principles and sustainability frameworks that direct us Our contribution to the Our global ESG Ecosystem Sustainable Development Goals Public Engagement Memberships PATRIZIA | © 2023 46
Slide 47: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 47
Slide 48: Stable shareholder structure & upside to analyst target prices
Share Stable shareholder structure & upside to analyst target prices PATRIZIA share performance | as at 31.03.2023 Shareholder structure | as at 31.03.2023 Analyst recommendations | as at 31.03.2023 6 EUR 30.00 30.00 € 6.45% 2 First Capital Partner GmbH 25.00 25.00 € 3 Union Investment Privatfonds G
Slide 49: PATRIZIA share performance - what is the implied value of the operating business?
Share PATRIZIA share performance - what is the implied value of the operating business? Share Performance last 12 months compared to peergroup Implied value of the operating business 1 20% EUR 10% 72m 0% EUR 222m -10% -20% -30% -40% -50% -60% EUR 592m -70% Net cash and value of treasury shares BLACK
Slide 50: FY 2022: Proposal of the fifth increase in dividends
Share FY 2022: Proposal of the fifth increase in dividends despite challenging environment Track Record | Dividend per share (EUR) PATRIZIA dividend policy +3.1% +6.7% 0.33 0.32 +3.4% X% Y% +7.4% 0.30 0.29 +8.0% Basis for 0.27 dividend 0.25 growth Growth in management fees Growth in AUM (y-o-y) (y-o
Slide 51: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2023 51
Slide 52: Capital allocation
Appendix Capital allocation PATRIZIA's capital allocation as at 31 March 2023 Assets under Invested capital Invested capital Management (fair value) (at cost) Participations EUR m EUR m EUR m in % Third-party business 48,393.9 0.0 Co-Investments 9,665.3 590.4 113.6 Real estate - residential 5,385.3
Slide 53: Reconciliation of EBITDA
Appendix Reconciliation of EBITDA Detailed reconciliation to EBITDA EUR k 3M 2023 Table in the current report Management fees (excluding result from participations) 59,932 Reconciliation of total service fee income Shareholder contribution for management services (in result from participations) 2,29
Slide 54: Consolidated income statement
Appendix Consolidated income statement EUR k 3M 2023 3M 2022 Change Revenues 62,863 80,931 -22.3% Changes in inventories 0 -15,873 -100.0% Other operating income 2,768 658 320.6% Income from the deconsolidation of subsidiaries 22 0 / Total operating performance 65,652 65,716 -0.1% Cost of materials
Slide 55: Consolidated balance sheet | Assets
Appendix Consolidated balance sheet | Assets Assets EUR k 31.03.2023 31.12.2022 Change Change % A. Non-current assets Goodwill 375,939 381,253 -5,314 -1.4% Other intangible assets 103,464 107,134 -3,671 -3.4% Software 7,628 8,080 -452 -5.6% Rights of use 24,837 26,715 -1,878 -7.0% Investment propert
Slide 56: Consolidated balance sheet | Equity and liabilities
Appendix Consolidated balance sheet | Equity and liabilities Equity and liabilities EUR k 31.03.2023 31.12.2022 Change Change % A. Equity Share capital 85,520 86,175 -655 -0.8% Capital reserves 60,392 67,181 -6,789 -10.1% Retained earnings Legal reserves 505 505 0 0.0% Currency translation differenc
Slide 57: Financial calendar 2023
Appendix Financial calendar 2023 25 MAY 2023 Annual General Meeting, virtual 11 AUG 2023 H1 Financial Report with investor and analyst conference call 14 NOV 2023 9M Interim Statement with investor and analyst conference call Further events: www.patrizia.ag/en/shareholders/events-for-shareholders/fi
Slide 58: Contact
Appendix Contact CHRISTOPH GLASER MARTIN PRAUM Executive Director | CFO Senior Managing Director Head of Investor Relations & Group Reporting PATRIZIA SE Fuggerstrasse 26 T +49 69 643505-1114 86150 Augsburg, Germany M +49 151 19685445 investor.relations@patrizia.ag SEBASTIAN WEIS JANINA ROCHELL VERE