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Patrizia — PATRIZIA Immobilien — Q1 2015 Earnings Presentation

22 slides from Patrizia's earnings presentation, May 7, 2015

  1. Slide 1: Conference Call on Q1 2015

    Conference Call on Q1 2015 Business Development, Financials & Outlook 2015 7 May 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: Highlights Q1 2015

    Highlights Q1 2015 “BUSINESS AS USUAL” SOLID FINANCIAL FIGURES, BUT STRONG DECREASE COMPARED WITH AN UNUSUALLY GOOD Q1 2014:  EUR 7.5m operating EBT (-53% due to missing of a high-margin major acquisition fee comparable with that from the Leo I transaction last year)  EUR 3.6m EBT (IFRS, -73%)  E

  3. Slide 3: Assets under Management

    Assets under Management ASSETS UNDER MANAGEMENT (IN EUR BILLION) AUM ROSE BY 6% TO EUR 15.5BN 16 15,5 15  50% of AuM managed on behalf of third parties 14 without PATRIZIA equity involvement 13 28% or EUR 4.3bn outside Germany 12  7,7 11  Biggest deals in Q1 2015: 10  “Basket”: supermarket portf

  4. Slide 4: 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% 8% 7% 37% 22% 92% 32% Pension funds National institutional investors Saving banks Insurances International institutional investors Other  177 investors in t

  5. Slide 5: Asset Allocation of PATRIZIA, Funds and Co-Investments

    Asset Allocation of PATRIZIA, Funds and Co-Investments Geographical Footprint Sectors1 * of Assets1 2,0% 1,8% 1,1% 2,6% 3,5% 8,4% 5,5% 11,1% 45,9% 4,5% 72,1% 2,6% 6,9% 32,0% Germany BeNeLux Residential Logistics UK & Irteland France Office Hotel Nordics Other Retail Health GROWTH EXPECTATIONS Light

  6. Slide 6: Growth of PATRIZIA since 2007

    Growth of PATRIZIA since 2007 DEVELOPMENT OF ASSETS UNDER MANAGEMENT (IN EUR BILLION) GROWTH OF AUM AS MAIN DRIVER TO INCREASE STABLE EARNINGS 16,6  Growth of another EUR 2bn in 2015 again +0.9 15,5 16 14,6 14 +2.8 12 11,8 7,7 7,3 10 +4.9 5,7 THIRD PARTIES 8 CO‐INVESTMENTS +1.7 6,9 OWN INVESTMENTS

  7. Slide 7: 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 in EUR billion International Employees by Country excl. Germany* 15,5 14,6 25 4,3 11,8 3,9 22 2,5 6,9 14 5,2 1,7 10,7 11,2 1,5 9,3 2,7 8 0,1 7 5,2 3,7 2,6 2010 2011 2012 2013

  8. Slide 8: Own Portfolio / Consolidated Real Estate

    Own Portfolio / Consolidated Real Estate  Further decrease by 169 units to 908 units left  Approx. 150 units should be left at year’s end 2015, that implies another 760 units to be sold UNITS UNITS UNITS REGION/ CITY 31.03.15 SHARE 31.12.14 SHARE 31.12.07 SHARE Cologne/Düsseldorf 428 47.1% 460 42.

  9. Slide 9: PATRIZIA Capital Allocation

    PATRIZIA Capital Allocation RELEASED EQUITY FROM PROPRIETARY INVESTMENTS WILL BE USED FOR ATTRACTIVE NEW CO-INVESTMENTS IN EUR MILLION, AS OF 31.03.2015 ASSETS UNDER MANAGEMENT INVESTMENT CAPITAL PARTICIPATION IN % OPERATING COMPANIES ‒ 48.9 100 OWN INVESTMENTS 254 151.0 100 CO-INVESTMENTS 7,498 186

  10. Slide 10: Third Party Business

    Third Party Business  Another EUR 300 million equity were secured from German investors for a new fund “PATRIZIA Gewerbeimmobilien Deutschland II”  Initial properties are already being inspected  Target volume of EUR 600 million ASSETS UNDER TARGET VOLUME EQUITY COMMITTED NUMBER OF FUNDS MANAGEME

  11. Slide 11: Income Structure – Service Business

    Income Structure – Service Business IT IS NOT ALL ABOUT GROWTH – SUSTAINABLE BUSINESS MODEL MATTERS FEE SPLIT Q1 2015: EUR 28.4m Q1 2014: EUR 29.8m Services Q1 2015: EUR 15.7m (55%) Real Estate Q1 2015: EUR 12.7m (45%) Q1 2014: EUR 10.8m (36%) Investment House Q1 2014: EUR 19.0m (64%) Regular income

  12. Slide 12: Sources of Income – Service Business

    Sources of Income* – Service Business Fee structure Fee discribtion Fees Q1 2015 Q1 2014 2014 Remuneration for Fixed percentage of the purchase costs of Acquisition Fee providing investment single assets or portfolios at the time of EUR 8.1m EUR 16.6m EUR 34.5m opportunities acquisition Remuneration

  13. Slide 13: Operating Result

    Operating Result OPERATING RESULT DROPPED 53% YEAR-ON-YEAR  Q1 2014: EUR 7.5m vs. Q1 2014: 16.0m  Principally due to the absence of a purchase fee comparable to that for the Leo I transaction, which could not be compensated by revenues with lower margins  Atypical fall in the proportion of the re

  14. Slide 14: Staff Costs

    Staff Costs INCREASE IN STAFF COSTS BY 22.7% TO EUR 21.5M  Due to new appointments (+11% FTE y-o-y) and salary adjustments in line with market trends STAFF (NUMBER, NOT FTE) COSTS 77,2 792 801 2,4 721 72 76 8,2 42 44 38 6,2 38 68 76 58 19,7 583 608 611 21,5 0,5 0,5 17,5 40,7 2,4 1,9 1,7 1,7 5,2 4,1

  15. Slide 15: Participations

    Participations INVESTMENT RESULT AS GROWTH TRIGGER INCOME FROM PARTICIPATIONS EARNINGS FROM COMPANIES ACCOUNTED FOR USING THE EQUITY METHOD Q1 Q1 Q1 Q1 EUR million EUR million 2015 2014 2014 2015 2014 2014 SÜDEWO WohnModul I Asset Management Fee 1.8 1.8 7.3 Total SÜDEWO 1.8 1.8 14.6* Earnings from c

  16. Slide 16: P&L

    P&L Q1 2015 Q1 2014 +/- in % 2014 EUR'000 01.01.-31.03.2015 01.01.-31.03.2014 01.01.-31.12.2014 Revenues 47,282 47,048 0.5% 291,815 Income from the sale of investment property 1,586 3,445 -54.0% 17,019 Changes in inventories -7,679 3,684 -308.4% -110,509 Other operating income 1,134 1,224 -7.4% 7,14

  17. Slide 17: Balance Sheet

    Balance Sheet ASSETS EQUITY AND LIABILITIES EUR'000 31.03.2015 31.12.2014 EUR'000 31.03.2015 31.12.2014 A. Non-current assets A. Equity Goodwill 610 610 Share capital 69,385 69,385 Other intangible assets 38,915 39,407 Capital reserve 198,576 198,576 Software 10,445 10,795 Retained earnings Investme

  18. Slide 18: Positive Development of the Financial Situation

    Positive Development of the Financial Situation BANK LOANS VS. EQUITY RATIO  Bank loans decreased by 28% to EUR 88.2m  Repayments were boosted by payments received on purchase price receivables (with transfer of ownership, usage and encumbrances on 31 Dec. 2014). Current receivables also fell acco

  19. Slide 19: Net Asset Value

    Net Asset Value NAV / INVESTMENTS SEGMENT SHOULD REPRESENT ONLY 20% OF THE OPERATING RESULT FOR 2015  Investment property and inventories were sold in Q1 2015 at a profit with a gross margin of 9.1% and 20.9% respectively, thus confirming the value retention of the properties  The whole service bu

  20. Slide 20: Outlook 2015

    Outlook 2015 WE ARE ON TRACK WE CONFIRM OUR GIVEN FORECAST FOR 2015 TO INCREASE OPERATING RESULT BY APPROX. 10%  As usual, Q1 cannot be used as a basis to forecast the overall result for 2015  Quarterly operating result will increase in the course of the year. Highest share is always contributed b

  21. Slide 21: Financial Calendar, Conferences and Roadshows

    Financial Calendar, Conferences and Roadshows 2015 May 7  Interim report for the first quarter of 2015 13  Roadshow with Berenberg Bank, Lugano and Milan 19  Berenberg European Conference USA, New York 20-21  Commerzbank German Mid Cap Investment Conference, Boston and New York 27  Roadshow wit

  22. Slide 22: 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

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