Pioneer Property Group ASA · OSL:PPG

Pioneer Property Group ASA — Investor Presentation (April 2019)

15 slides from Pioneer Property Group ASA's investor presentation, April 2019

  1. Slide 1: Company Presentation

    Private & confidential Company Presentation Pioneer Property Group / Pioneer Public Properties April 2019

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use words such as "ambition", "continue", "could", "estimate", "expect", "focus", "likely", "may", "outlook", "plan", "strategy", "will", "guidance" and similar expression

  3. Slide 3: Group structure

    Group structure Simplified group structure • Pioneer Property Group (“PPG”) owns 100% of Pioneer Pioneer Property Public Properties (“PPP”) (together defined as the “Group”) Group ASA • PPP owns a large portfolio of 1741 preschools and care properties located in Norway, Finland and Sweden  166 of t

  4. Slide 4: Large Nordic government backed social infrastructure portfolio

    Large Nordic government backed social infrastructure portfolio Social infrastructure with government backed cash flow 174 Preschools and care properties properties Pure play property owning Group with limited capex and high cash conversion ~14 year CPI adjusted lease WAULT agreements Long term infla

  5. Slide 5: Introduction to the Group

    Introduction to the Group Introduction High quality portfolio in the Nordics • The Group owns a large portfolio of 174 preschools and care properties located in Norway, Finland and Sweden • Pure asset owner with long term contracts to leading operators  Operators are responsible for all significant

  6. Slide 6: The Nordic preschool market is stable and fragmented

    The Nordic preschool market is stable and fragmented Private service providers with an increasingly more important role The Nordic preschool market Organized Nordic preschool attendance 100% Norway Sweden Finland • The Nordics have the welfare model that is considered to 80% be a leading internation

  7. Slide 7: Proven track record of growth since establishment

    Proven track record of growth since establishment Revenue development 2011 – 2018 NOKm • Strong revenue growth since 2011 – CAGR of 44% 350 300 250 • Long term inflation linked contracts related to high CAGR 44% 200 quality assets creates the foundation for growth 150 100 • Growth driven by a series

  8. Slide 8: Pure play asset owner with high cash conversion

    Pure play asset owner with high cash conversion High cash conversion1 providing significant potential for additional growth NOKm • Stable and growing revenue Illustration  Diversified, government backed and inflation linked lease revenues X ~0  Non cyclical revenue streams 311 EBITDA CASH GROWTH 

  9. Slide 9: Large and diversified Nordic portfolio

    Large and diversified Nordic portfolio Sizeable portfolio in a stable region with favorable demographics Large portfolio of high quality social infrastructure assets • 174 care properties covering more than 0.7 million sqm of land ̶ 166 preschools in Norway (120), Finland (43) and Sweden (3) ̶ 8 car

  10. Slide 10: Historical development of the group

    Historical development of the group PPP V is established, and 21 properties are 21 properties are acquired PPP I is established as the result of acquired, marking the entry into the through two acquisitions the separation of Norlandia’s PPP III is established, Swedish and Finnish markets preschool o

  11. Slide 11: Stable and secure cash flow through long term contracts

    Stable and secure cash flow through long term contracts WAULT of ~14 years Contracts, options and step-in contracts1 NOKm • Signed lease income of NOK ~311m in 450 2019 with 100% CPI adjustment Option Contract (incl. Step-in) 400 • Majority of contracts with remaining lease period of 10 – 15 years 3

  12. Slide 12: Strong financial development

    Strong financial development Number of units Revenue development EBIT development # NOKm NOKm EBIT incl. fair value adj. EBIT 180 300 500 450 435 427 160 250 383 140 400 350 120 200 300 100 263 150 250 229 171 289 80 153 256 192 200 133 218 60 100 150 40 100 50 20 50 0 0 0 2016 2017 2018 2016 2017 2

  13. Slide 13: Strong revenue growth in recent years mainly driven by acquisitions

    Strong revenue growth in recent years mainly driven by acquisitions Revenue development 2016 – 2018, including signed lease 2019 NOKm • All revenue is based on fixed lease contracts 350 • Growth mainly from acquisition of new assets 300 and full year effect of assets acquired in the 250 previous yea

  14. Slide 14: Limited OPEX as lease contracts are triple net

    Limited OPEX as lease contracts are triple net Opex development • Contracts are primarily on a triple net basis, securing a low cost base NOKm Structure change Mgmt/personnel  Note that contracts with Espira contain some cost elements which are 35 Other opex covered by the asset owner, related to g

  15. Slide 15: Strategy

    Strategy • Key focus on care services real estate • PPG and PPP shall mainly own, manage and develop real-estate for government-backed operators • To date the company has started consolidation of the Nordic market for preschool properties • Consolidate market through acquisitions and broaden foot-pr

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