Peach Property Group Ag · SIX:PEAN
Peach Property — H1 2021 Earnings Presentation
45 slides from Peach Property's earnings presentation, Aug 31, 2021
Slide 1: Company Presentation Half-Year 2021
PROPERTY GROUP Company Presentation Growing Half-Year 2021 with values August 31, 2021
Slide 2: Disclaimer
Disclaimer ©peach PROPERTY GROUP 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, r
Slide 3: Management: Chief Executive Officer and Chief Financial Officer
©peach PROPERTY GROUP Dr. Thomas Wolfensberger, Chief Executive Officer >20 years of experience, including Project manager for successful IPO, bond issuances and real estate transactions with total volume of more than EUR 3 billion Previously formed and later sold an international financial technolo
Slide 4: Agenda
©peach PROPERTY GROUP 1. Introduction and strategy 2. Portfolio as of June 30, 2021 3. Half year results, 2021 4. Outlook 5. COVID-19 and flooding update
Slide 5: Overview of Peach Property Group
of Peach Property Group ©peach PROPERTY GROUP = We are an active real estate investor within the attractive German residential market, with a clear focus on secondary ("B") cities. = The satisfaction of our tenants represents the core of our business model, as tenants that are respected and g 1 Peac
Slide 6: Portfolio has grown to CHF 2.6 bn
io has grown to CHF 2.6 bn ©peach 5 nsaction PROPERTY GROUP Peach Portfolio as Peach Portfolio as Peach Portfolio as of HY 2020 of YE 2020 of HY 2021 Residential units 12,906 23,201 Lettable area 848,224 sqm 1,505,900 sqm Market value! CHF 1.12 bn CHF 2.04 bn Target rent p.a. GHE 63.3 mama CHF 112.3
Slide 7: ©peach
©peach PROPERTY GROUP
Slide 8: Portfolio locations
~ Source: Company information as of June 30, 2021
Slide 9: German housing market: population, households and completions
Total population per country Total households 83,9 65,4 68,2 60,4 42,3 30,3 28,5 26,4 Germany France UK Italy 700 Completions ('000) Government target rate ('000) 600 500 400 300 200 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 10: Germany total vs North Rhine-Westphalia
2,5% 1,7% Germany total North Rhine Westphalia
Slide 11: Consistent price momentum
~ … resulting in a consistent price momentum ▪ ▪ ▪ Sources: (1) Bulwiengesa, Multifamily house, apartment building, average (weighted average); (2) Bulwiengesa, Yield in A, B, C and D cities (2020, Multifamily house-apartment building rent multiplier reciprocal) (3) Bulwiengesa, Rental prices indexe
Slide 12: Key economic regions in Germany
Key economic regions in Germany… …and home to a high number of large German corporates • • Bielefeld Gutersloh • Essen Mulheim/Ruhr Dusseldorf Leverkusen • Cologne Bonn • Highest number of new German business establishments… … coupled with low unemployment in NRW1 13% 12,0% 12% 11,4% 11% 9,5% 10% 10
Slide 13: Investment strategy
✓ ✓ ✓ ✓ ✓ ✓ ✓ Source: Company information as of June 30, 2021
Slide 14: Value chain: sourcing to asset management
Capital markets ▪ Asset / Property Economic Sourcing Modernization Letting management performance ▪ ▪ ▪ ▪ ▪ ✓ ▪ ▪ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ▪ ✓ Tenant retention ▪ ▪
Slide 15: Satisfied tenants as central focus
... with satisfied tenants as central focus point PROPERTY GROUP ©peach Higher rent, better letting and fewer damages all increase value of real estate Value of our real properties Satisfied tenants look better after their apartments and hold “misconduct” accountable through social control Satisfied
Slide 16: Tried and tested service model
Tried and tested service model that forms the basis for Peach Property Group’s high regard by tenants, ultimately resulting in vacancy reduction and rent optimization
Slide 17: Peach Points locations
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Source: Company information * New Peach Points opening in January 2022
Slide 18: Capital markets track record
Mandatory convertible bond 2.5% CHF 180 million; conversion price CHF 55.00 EuroBond 4.375% EUR 300 million; maturity 5 years Mandatory convertible bond 2.5% CHF 230 million, conversion price CHF 42.50 EuroBond 3.5% EUR 250 million; maturity 3 ¼ years Mandatory convertible bond 2.5% CHF 5.419 millio
Slide 19: Peach's comprehensive sustainability view
Peach's comprehensive sustainability view | ©peach Ethical values in daily dealings with one ameine® GOVERNANCE * Proportion of employees with Code of Conduct training: 100% + Violations of the Code of Conduct: 1 * Regional sponsoring projects: 1 Business COTIMENE Performance Responsible property ma
Slide 20: Portfolio locations by city
©peach PROPERTY GROUP Marl North Rhine- Westphalia Dortmund North Rhine- Westphalia Bremen, Delmenhorst, Ganderkesee Bremen/ Lower Saxony Bochum North Rhine- Westphalia Gelsenkirchen North Rhine- Westphalia
Slide 21: Agenda
©peach PROPERTY GROUP 1. Introduction and strategy 2. Portfolio as of June 30, 2021 3. Half year results, 2021 4. Outlook 5. COVID-19 and flooding update
Slide 22: Portfolio structure as of Jun 30, 2021
-ortfolio structure as of Jun 30, 2021 ©peach PROPERTY GROUP Total portfolio market value CHF 2 651.6 million* 98% “_ Development Investment portfolio CHF 2 599.2 million CHF 52.4 million 0.9% 99.1% 100% i Switzerland Switzerland cHra42 | Cr 2 575.0 mil CHF 52.4 million -Umiltion million * Market va
Slide 23: Split by location and usage
Split by location (% of market value) Hesse 2% Others 4% Baden-Wurttemberg 4% Lower Saxony 12% North Rhine- Rhineland- Westphalia 66% Palatinate 12% Split by usage (% of rental income) Commercial / Office 4.5% Parking / Other 3.2% (previous full year 3.7%) (previous full year 3.4%) Residential 92.3%
Slide 24: Key figures of investment properties
investment properties as of ©peach PROPERTY GROUP Dec 31, 2021 2020 Number of residential units 27,497 23,201 Total floor space in sqm 1,777,254 1,505,900 ° Vacancy ratio Residential floor space in sqm 1,708,497 1,436,857 residential units Commercial floor space (DIN 277) in sqm 68,757 69,043 reduce
Slide 25: Vacancy has been further reduced
has been further reduced ©peach PROPERTY GROUP Development of vacant residential units : Vacant residential units by vaca ratio 2,067 “effective vacancy" (c. 2.1%) Total Future In Inreno- Notyet Letting vacancy letting letting vation classified reserve ¢ Vacancy rate reduced significantly in existin
Slide 26: Potential to further increase rent
to furtherincrease rent | ©peach PROPERTY GROUP ° Attractive rent potential in all core portfolios * Focus on leveraging potential over next quarters (tenant satisfaction, targeted renovations, etc.) Peach Portfolio Kaiserslautern Niedersachsen Ostwestfalen Rheinland Ruhrgebiet Average Rent New Lett
Slide 27: Development project in Wädenswil on Lake Zurich
opment project in ©peach enswil on Lake vAthatelal PROPERTY GROUP NINSULA, Wadenswil * Peninsula on Lake Zurich with 17,837 sqm of land * 5,600 sqm commercial space plus 29 rental apartments as investment properties * Additionally, 56 condominiums in planning stage; combination of redevelopment and
Slide 28: Agenda
©peach PROPERTY GROUP Introduction and strategy Portfolio as of June 30, 2021 Half year results, 2021 Outlook COVID-19 and flooding update 28
Slide 29: Operating income, result after tax, equity ratio, portfolio 2018-2021
©peach PROPERTY GROUP Operating income 2018 - 2021 Result after tax 2018 - 2021 CHF millions 177,139 CHF millions 110,096 I | I | 65,039 a 51,789 49,362 | | : ! 26,496 22,267 Agee | I , | | im 6m a | HY 2018 HY 2019 Hy 2020 ! Hy 2021 HY 2018 HY 2019 HY 2020 | HY 2021 Equity ratio 2018 - 2021 Portfol
Slide 30: Earnings and FFO I per share
ings and FFO I per share ©peach PROPERTY GROUP Diluted earnings per share Diluted FFO | per share CHF 7.96 CHF 0.60 : 0.39 2.70 1.75 -0.46 Jun 30,2019 = Jun 30,2020. = Jun 30, 2021 Jun 30,2019 Jun 30,2020* Jun 30, 2021 * Steep increase compared to HY 2020 * Total FFO | of ~ CHF 14 million — CHF 18 (
Slide 31: Development of rental income and margin
of rentalincome andmargin peach PROPERTY GROUP Development of rental income . . . Rental income by nature operating margin HEB Rental income Operating Margin TCHF in% Commercial and Parking ane other office Y 50,220 4.5% | (HY 2020: 3.3%) (HY 2020: 3.8% \ Residential 92.3% (HY 2020: 92.9%) Jun 30, 2
Slide 32: Vacancy and letting prices
©peach PROPERTY GROUP Vacancy * Vacancy reduction due to Eagle acquisition (as % of total # * The speed of completing renovations is the main driver apartments) for vacancy reduction *2.1% effective vacancy on lettable apartments 2020 HY 2021 6.62 6.27 . . : . 9:97 5.69 * A total of 1,463 rental agr
Slide 33: Valuation gains and attractive yield
valuation gains and attractive ©peach PROPERTY GROUP Valuation gains as % of investment properties Initial valuation BB Total revaluation gain as % of investment properties HB Operational progress & discount rate 4.80% Average discount rate: 2019: 3.9% 2020: 3.9% HY 2021: 3.8% Jun 30, 2019 Jun 30, 2
Slide 34: Personnel and other operating expenses
©peach PROPERTY GROUP Personnel expenses as Other operating expenses as % of rental income % of rental income 26.58 21.12 11.91 16.90 Jun 30, 2019 Jun 30, 2020 Jun 30, 2021 Jun 30, 2019 Jun 30, 2020 Jun 30, 2021 * Insourcing of central steps in the value chain (network of 12 Peach Points, facility m
Slide 35: Financial policy
nancial policy on the back of successful peach ortfolio expansion and equity increase PROPERTY GROUP 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 in
Slide 36: Loan to value and net debt
©peach PROPERTY GROUP TCHF Property financing liabilities Excluding market value of derivative financial instruments Excluding cash & cash equivalents (incl. short term financial claims) Net Debt Market value of development properties Total market value of investments properties without right-of-use
Slide 37: Debt maturity schedule and refinancing
offers refinancing Debt maturity schedule 700 600 500 400 300 596 275 200 n [ 123 150 151 493 48 moe Oo 2021 2022 2023 2024 2025 2026 2027 2028 2029 > 2030 CHFm msecured munsecured Sources of funding ™ unsecured ™ secured ©peach PROPERTY GROUP Net LTV FY 2020 i 575°. HY 2021 NN 54.5% ICR (x) FY 2020
Slide 38: Significant increase in equity
Significant increase in equity ©peach PROPERTY GROUP Equity values EPRA NTA per share (CHF) Jun 30, Dec 31, 2021 2020 FY 2020 P| 57,29 NAV IFRS (TCHF) + 1,052,850 754,862 Equity ratio (NAV IFRS) BAS 33.9% NAV market value (TCHF) 1,062,253 | 762,459 Equity ratio (NAV market Tm 34.2% EPRA NAV (TCHF) v
Slide 39: Agenda
©peach PROPERTY GROUP 1. Introduction and strategy 2. Portfolio as of June 30, 2021 3. Half year results, 2021 4. Outlook 5. COVID and flooding update
Slide 40: 2021 Guidance and 2022 Outlook
©peach PROPERTY GROUP 2021 Guidance 2022 Outlook Rental income ~ CHF 108 million — CHF 112 million growing \-f-L rent growth ~ 3.5% stable FFO | ~ CHF 14 million — CHF 18 million growing LTV < 55% reducing Dividend 50% of FFO | stable pay-out ratio 40
Slide 41: Agenda
1. 2. 3. 4 5 Introduction and strategy Portfolio as of June 30, 2021 Half year results, 2021 . Outlook . COVID and Flooding Update ©peach PROPERTY GROUP 41
Slide 42: COVID-19 update
Employees & operations ©peach PROPERTY GROUP Rules to increase job safety are still in place No COVID-19 cases affected Peach Property Group's activities so far All Peach Points are open again to the public Letting & financials Ongoing letting activities with no impact on new lettings Adjustments li
Slide 43: Severe weather conditions in South-West Germany
Severe weather conditions in South-West ©peach Germany PROPERTY GROUP = In July 2021 areas in North Rhine-Westphalia and Rhineland-Palatinate et d experienced heavy rainfall and flooding floc 4i an = With the exception of holdings in Eschweiler and two other individual CHONG! properties in the Ruhr
Slide 44: Attractive investment case
Experienced team with a proven transaction track record Germany: attractive real estate market with very good perspectives Successful investment strategy ng term growth a value orientation Sound equity basis Se | Pe Attractive investment case ©peach PROPERTY GROUP > CHF 3.8 billion worth of successf
Slide 45: Investors, Analysts and Media contacts
y = Investors, Analysts and Media: ©) peach Dr. Thomas Wolfensberger, Chief Executive Officer PROPERTY GROUP Thorsten Arsan, Chief Financial Officer +41 44 485 50 00 investors@peachproperty.com Wachsen mit Werten.