Patrizia Se · XETR:PAT
Patrizia — Investor Presentation (May 2024)
61 slides from Patrizia's investor presentation, May 14, 2024
Slide 1: Company Presentation May 2024
Company Presentation May 2024 1
Slide 2: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 2
Slide 3: At a glance: PATRIZIA to become a smart Real Asset Player
At a glance PATRIZIA to become a smart Real Asset Player Platform Funds Financials Total service fee income (EUR): 40 57bn 312m years of real asset experience Assets under Management (EUR) FY 2023 Top 2 EBITDA (EUR): fully independent 10y 54m investment manager for real estate in Europe1 fund outper
Slide 4: PATRIZIA evolved from a German real estate to a global real asset investment manager
At a glance PATRIZIA evolved from a German real estate to a global real asset investment manager 57.3bn 2023 PATRIZIA | Adoption of SE structure for sustainable future growth and welcoming new CEO AUM 2022 Whitehelm Capital, Advantage | Acquisition of infrastructure and multi manager 41.0bn AUM 2018
Slide 5: Recent developments boost transformation to smart Real Asset Player
At a glance Recent developments boost transformation to smart Real Asset Player Product | First closings for European Europe Infrastructure Fund III and Infrastructure Debt Partners II Product | Continued successful PATRIZIA closes debut Product | London expansion of PATRIZIA’s dedicated impact inve
Slide 6: Global reach combined with local expertise and local client relationships
At a glance Global reach combined with local expertise and local client relationships 28 PATRIZIA offices globally > 500 to service clients & manage real assets locally institutional clients > 40 boutique operating partners > 7,000 private clients worldwide > 40 different nationalities working at >
Slide 7: 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 Funds Bespoke Single Asset/Portfolio Global Investment Multi Strategy in Real Assets Account Solutions Deal Opportunities Solutions Solutions • Open-/closed-ended • Individual, nimble strategies • Sourcing, und
Slide 8: PATRIZIA offers full services across the value chain
At a glance PATRIZIA offers full services across the value chain Modular services offered to global clients Investment Investment Strategy Fund Management Transactions Asset Development Solutions & Research (i.a. Portfolio management, (Sourcing, Acq., Sales) Management Management reporting) Capital
Slide 9: Real estate and infrastructure investments offer various opportunities for global clients
At a glance Real estate and infrastructure investments offer various opportunities for global clients Transactions Overview Selected investments Mercury (infrastructure, acquisition) Atlantia (infrastructure debt, acq.) Rigsted Outlet (real estate, acq.) Ultra-fast EV charging infrastructure investm
Slide 10: PATRIZIA SE is managed by an international and diverse leadership team
At a glance PATRIZIA SE is managed by an international and diverse leadership team 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 Nominat
Slide 11: 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 Top 10 Managers based on European real assets (EUR m) Swiss Life Asset Managers 1 insurance group subsidiary AXA IM Alts 2 insurance group subsidiary Blackstone Group 3 fully independent alternatives manag
Slide 12: Strategy: How to position ourselves in this world in transition
At a glance Strategy | How to position ourselves in this world in transition s sustainable • Shaping sustainable communities • Capturing the future mega trends m • Strengthen our independent platform market leading • Leverage cutting edge research • Innovative product and services smart a • Proven e
Slide 13: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 13
Slide 14: Our Equity Story lines out our uniqueness as a real asset expert
Equity Story Our Equity Story lines out our uniqueness as a real asset expert 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 PATRIZ
Slide 15: 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 16: Real Assets offer long-term value and growth opportunities
Equity Story Real Assets 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 asset class wh
Slide 17: 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 | © 2024 17
Slide 18: Our Equity Story: Increased Diversification
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification Our continuously increasing product PATRIZIA portfolio covers various asset classes and regions, stabilising income by diversification Financial Fle
Slide 19: Broad diversification supports AUM resilience
Equity Story Broad diversification supports AUM resilience EUR 56.7 bn assets under 2% 3% 3% 81 % resilient Core 6% management and Core plus 4% 19% 3% 4% 27% strategies 4% 16% 4% AUM by AUM by AUM by 7% geography 53% sector 18% risk style 12% 64% 4% 11% 9% 28% Germany UK & Ireland Office Residential
Slide 20: Long-duration AUM and equity rich client base support predictable management fees
Equity Story Long-duration AUM and equity rich client base support predictable management fees Maturity breakdown of AUM1 Equity commitments by clients2 31% 4% 74% average Fund-LTV 10% 61% 2% 48% 33% 3.4bn 84% 22% firepower for 8% investments (EUR) >10 years/unlimited 5–10 years Top 1 Top 5 Top 10 T
Slide 21: Our Equity Story: Future Proof
Equity Story Our Equity Story lines out our uniqueness as a real asset expert 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 lisati
Slide 22: Investment solutions in line with four key transition themes
Equity Story PATRIZIA provides attractive investment solutions in line with four key transition themes DIGITAL TRANSITION URBAN TRANSITION Fibre & wireless Smart buildings Data centres D U Urban logistics Smart city Mixed-use districts networks infrastructure E L Renewable energy, Decarbonisation Wa
Slide 23: Infrastructure investments offer solutions for today's challenges
Equity Story Infrastructure investments offer solutions for today’s challenges Thematic: Thematic: • Climate change impacts water scarcity • Exponential need and need for circular economy for digital infrastructure Opportunities: Opportunities: • Smart metering • Fibre assets • Towers • Water extrac
Slide 24: ESG incorporation improves every step of the investment process
Equity Story ESG incorporation improves every step of the investment process Product Fund Sourcing & Asset Development & Development Management Acquisitions Management Refurbishment Exit/Sales • Top-down analysis of • ESG Fund Policy with • Sustainable investment • Strategic ESG Action Plan • Sustai
Slide 25: Our Equity Story: Asset Expertise
Equity Story Our Equity Story lines out our uniqueness as a real asset expert 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 Futu
Slide 26: Experts on the ground understanding local requirements serve global client base
Equity Story Experts on the ground understanding local requirements serve global client base 46% female staff in the business (>37% across real assets professionals) ~ 1,000 ~7 years dedicated professionals average tenure across real assets globally professionals, longer in leadership roles PATRIZIA
Slide 27: PATRIZIA funds outperformed unlisted European real estate benchmark
Equity Story PATRIZIA funds outperformed unlisted European real estate benchmark on a long term basis PATRIZIA fund performance vs. INREV Index performance1 7.1% 1.6% ⚫ PATRIZIA fund performance outperformance ⚫ INREV Index (average) 4.3% 5.5% 1.6% 2.7% 0.9% outperformance outperformance 2.7% 1.8% 1
Slide 28: Retail investor business shows strong footprint and further growth opportunities
Equity Story Retail investor business shows strong footprint and further growth opportunities Investment volume | EUR m Facts 1,750 1,500 • Investment volume exceeds EUR 1.7bn 1,250 • More than 10,000 subscriptions signed 1,000 • Average cash distribution for the financial years 2016 to 2023 is 4.48
Slide 29: Our Equity Story: Financial Flexibility
Equity Story Our Equity Story lines out our uniqueness as a real asset expert 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 gro
Slide 30: AUM growth translates into growing and recurring management fees
Equity Story AUM growth translates into growing and recurring management fees 60.0 – 59.1 54.0 60 57.3 50 47.0 48.6 +19.4 % p.a. 44.5 300 Management fee 41.0 40 growth 2012 – 2023 251.1 241.0 30 209.1 190.9 193.4 21.9 175.3 150 20 18.6 16.6 11.8 14.6 93.2 +21.3 % p.a. 10 6.9 81.5 89.1 68.1 AUM growt
Slide 31: Resilience of AUM confirmed
Equity Story Resilience of AUM confirmed AUM development AUM development 3M3M 2024| 2023| EUREUR bn bn • AUM decreased by -1.0% to EUR 56.7bn quarter on quarter (3M 2023: EUR 56.7bn; -2.4% y-o-y) 60.0 0.3 • Acquisitions of EUR 0.3bn with the majority in 0.0 0.0 -0.3 -0.5 infrastructure, residential
Slide 32: 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 Covid-19 years Market shifts 348.0 346.4 320.2 327.6 324.7 100% 312.4 268.6 91.8 85.9 61.2 15% 86.1 46.6 92.5 22.5 14.7 5% 211.9 51.4 188.6 65.3 48.1 52.4 140.0 29.2 66.9 25.0 80% 19
Slide 33: Total service fee income reflective of continued low market activity
Equity Story Total service fee income reflective of continued low market activity Management fees | EUR m Transaction fees | EUR m Performance fees | EUR m 62.2 -7.2% 57.7 20.4 - 28.3% 14.6 1.1 - 85.3% 0.2 3M 2023 3M 2024 3M 2023 3M 2024 3M 2023 3M 2024 Total service fee income decreased by -1
Slide 34: Reduction of other operating expenses partially offsets inflation-driven staff cost increase
Equity Story Reduction of other operating expenses partially offsets inflation-driven staff cost increase Changes in operating expenses y-o-y EUR m • Operating expenses increased to EUR 62.5m (3M 2023: EUR 61.5m; +1.7%) +4.8% > +100.0% +1.7% -7.3% 1.0 • Staff costs of EUR 41.6m (3M 2023: EUR
Slide 35: EBITDA development in line with management expectations in a challenging market
Equity Story EBITDA development in line with management expectations in a challenging market Composition of EBITDA | EUR m • EBITDA down -36.3% y-o-y to EUR 17.3m due to market-driven decrease in total service fee income -28.3% -5.1% +1.7% • Net sales revenues and co-investment income -85.
Slide 36: Guidance confirmed - cautious optimism for FY 2024
Equity Story Guidance confirmed - cautious optimism for FY 2024 3M 3M Guidance • Macro-economic climate poses challenges FY 2023 for most clients, particularly in real estate 2023 2024 FY 2024 AUM 57.3 58.1 54.0 – 60.0 • Client investment activity expected to pick up in (in EUR bn) 56.7 the course o
Slide 37: Strong balance sheet and financial strength safeguard flexibility in current environment
Equity Story Strong balance sheet and financial strength safeguard flexibility in current environment Strong balance sheet Significant liquidity • Net cash increased q-o-q due to capital EUR m 31.03.2024 EUR m 31.03.2024 return from seed investment and further Total assets 2,019.3 Bank balances, 387
Slide 38: Co-Investments boost products, intensify client relationships and exploit opportunities
Equity Story Co-Investments boost products, intensify client relationships and exploit opportunities Third-party business| EUR bn PATRIZIA SE Balance Sheet| EUR m Cash and cash equivalents 352 10.1 Equity 1,214 AUM Co-Investments1 454 ….56.7 ∑ 46.6 Dawonia profit entitlements1 294 Liabilities 805 Ot
Slide 39: PATRIZIA's multi-dimensional engagement in Dawonia is a key performance driver
Equity Story PATRIZIA’s multi-dimensional engagement in Dawonia is a key performance driver • Dawonia is one of the largest housing companies in southern Germany with 360 employees managing around 27,000 flats spread across more than 20 prime urban environments • PATRIZIA’s successful management of
Slide 40: Balance sheet supports strategic fund investment initiatives
Equity Story Balance sheet supports strategic fund investment initiatives Major balance sheet investments as at 31 March 2024 EUR m EUR m Seeding Non-current assets Participations Debt investment provided to 598 Debt Fund II 0 (e.g. Dawonia) telecom infrastructure business Other non-current 16 TEP V
Slide 41: Our Equity Story: Giving Back to Society
Equity Story Our Equity Story lines out our uniqueness as a real asset expert Structural Growth Market Giving Back to Society Increased Diversification We contribute to the enhancement of society by distributing up to 1% of our EBITDA to charitable organisations like the PATRIZIA Foundation PATRIZIA
Slide 42: We are proud to make a positive impact by donating up to 1% of our EBITDA
Equity Story We are proud to make a positive impact by donating up to 1% of our EBITDA Our Mission PATRIZIA Foundation: Our Vision PATRIZIA Foundation: 23 worldwide projects Firm belief in education as a fundamental human Your Partner right essential for a self-determined life. for the “S” in ESG Ou
Slide 43: Our Equity Story lines out our uniqueness as a real asset expert
Equity Story Our Equity Story lines out our uniqueness as a real asset expert 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 con
Slide 44: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 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 investor with a Achieve net zero carbon status across our Become a leading global impact investor in the Real Be an employer
Slide 46: Principles and sustainability frameworks direct us in our daily business
ESG activities Principles and sustainability frameworks direct us in our daily business Our contribution to the Our global ESG Ecosystem Sustainable Development Goals Public Engagement Memberships PATRIZIA | © 2024 46
Slide 47: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 47
Slide 48: Stable shareholder structure and upside to analyst target prices
Share Stable shareholder structure and upside to analyst target prices PATRIZIA share performance | as at 28.02.2024 Shareholder structure | as at 31.03.2024 Analyst recommendations | as at 13.05.2024 7 EUR 30.00 30.00 € 7.65% 2 First Capital Partner GmbH 25.00 25.00 € 3 Union Investment Privatfonds
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 peer group Implied value of the operating business 1 80% EUR EUR 60% 130m 107m 40% 20% 0% EUR 579m -20% -40% Net cash and value of treasury shares Partners Group Black
Slide 50: Dividend proposal for FY 2023 and new dividend policy
Share Dividend proposal for FY 2023 and new dividend policy Dividend per share | EUR • Dividend proposal of EUR 0.34 per share for FY 2023 backed by strong balance sheet and solid operating cash-flow +3.0% +6.7% +3.1% 0.34 +3.4% 0.32 0.33 • Sixth consecutive increase in dividends in a row +7.4% 0.30
Slide 51: Shareholder Value Long-Term Incentive (SVL) aligns CEO's and shareholders' interests
Share Shareholder Value Long-Term Incentive (SVL) aligns CEO’s and shareholders’ interests Entry ticket: CEO to buy 316k shares Private investment worth ~ EUR 3m Operating performance 1. Recurring revenues ≥ 85% of total revenues Operating targets or requirements (by end of FY 2027) 2. EBITDA meets
Slide 52: Agenda
Agenda • PATRIZIA at a glance • Equity Story • ESG activities • Share information • Appendix PATRIZIA | © 2024 52
Slide 53: Capital allocation
Appendix Capital allocation PATRIZIA’s capital allocation as at 31 March 2024 Assets under Invested capital Invested capital Management (fair value) (at cost) Participations EUR m EUR m EUR m in % Third-party business 46,580.5 0.0 Co-Investments and Warehousing 10,123.2 793.0 388.3 Real estate - res
Slide 54: Reconciliation of EBITDA
Appendix Reconciliation of EBITDA Detailed reconciliation to EBITDA EUR k 3M 2024 3M 2023 Change Table in the current report Management fees (excluding result from participations) 55,793 59,932 -6.9% Reconciliation of total service fee income Shareholder contribution for management services (in resu
Slide 55: Consolidated income statement
Appendix Consolidated income statement EUR k 3M 2024 3M 2023 Revenues 57,983 62,863 Other operating income¹ 5,066 2,790 Total operating performance 63,049 65,652 Cost of materials -179 -59 Cost of purchased services -4,308 -4,110 Staff costs -41,576 -40,359 Other operating expenses¹ -15,640 -16,870
Slide 56: Consolidated balance sheet | Assets
Appendix Consolidated balance sheet | Assets Assets EUR k 31.03.2024 31.12.2023 A. Non-current assets Goodwill 374,334 376,719 Other intangible assets 86,881 89,320 Software 6,313 6,725 Rights of use 49,252 51,296 Investment property 258,819 246,481 Equipment 20,065 14,580 Participations in companie
Slide 57: Consolidated balance sheet | Equity and liabilities
Appendix Consolidated balance sheet | Equity and liabilities Liabilities EUR k 31.03.2024 31.12.2023 A. Equity Share capital 85,844 85,844 Capital reserves 65,704 65,704 Retained earnings Legal reserves 505 505 Currency translation difference -4,385 -3,853 Remeasurements of defined benefit plans acc
Slide 58: Consolidated statement of cash flows (I)
Appendix Consolidated statement of cash flows (I) EUR k 3M 2024 3M 2023 Net profit/ loss for the period 4,420 12,436 Income taxes recognised through profit or loss 6,445 8,123 Financial expenses recognised through profit or loss 2,417 1,848 Financial income recognised through profit or loss -4,276 -
Slide 59: Consolidated statement of cash flows (II)
Appendix Consolidated statement of cash flows (II) EUR k 3M 2024 3M 2023 Payments for investments in other intangible assets, software and equipment -6,099 -1,685 Payments received from the disposal of intangible assets and equipment 0 -1 Payments for the development of investment property -14,298 0
Slide 60: Financial calendar 2024
Appendix Financial calendar 2024 15 MAY 24 3M 2024 Interim Statement with investor and analyst conference call 12 JUN 24 2024 Annual General Meeting 14 AUG 24 H1 2024 Financial Report with investor and analyst conference call 14 NOV 24 9M 2024 Interim Statement with investor and analyst conference c
Slide 61: Contact
Appendix Contact CHRISTOPH GLASER MARTIN PRAUM Executive Director | CFO Senior Managing Director Head of Investor Relations & Group Reporting PATRIZIA SE T +49 69 643505-1114 Fuggerstrasse 26 M +49 151 19685445 86150 Augsburg, Germany investor.relations@patrizia.ag DR JANINA ROCHELL VERENA SCHOPP DE