Swiss Prime Site Ag · SIX:SPSN
Swiss Prime Site — Investor Day (October 2019)
44 slides from Swiss Prime Site's investor day presentation, Oct 23, 2019
Slide 1: Capital Markets Day 2019
CAPITAL MARKETS DAY 2019 ZURICH, 23 OCTOBER 2019
Slide 2: Today's Agenda – Swiss Prime Site Capital Markets Day 2019
Welcome address Today’s Agenda – Swiss Prime Site Capital Markets Day 2019 Management presentations 9.30 – 10.40 René Zahnd (CEO Swiss Prime Site) and Peter Lehmann (CEO Swiss Prime Site Immobilien) Retail property tour 10.40 – 12.00 Pallas Kliniken – aesthetics flagship clinic at Jelmoli Lunch 12.0
Slide 3: Business update
1 Business update René Zahnd 2 Project pipeline overview Peter Lehmann 3 Projects on the site visit Peter Lehmann 4 Guidance and summary René Zahnd Zurich | 23 October 2019 Capital Markets Day 2019 3
Slide 4: Balanced portfolio throughout attractive regions of Switzerland
Business update | Market Balanced portfolio throughout attractive regions of Switzerland Portfolio split by region Basis: fair value as at 30 June 2019 Zurich | 23 October 2019 Capital Markets Day 2019 4
Slide 5: Office (>40%) with highest share within portfolio
Business update | Market Office (>40%) with highest share within portfolio Portfolio split by type of use Basis: net rental income as at 30 June 2019 Swiss Prime Site – Property portfolio ▪ Portfolio of premium quality properties in prime locations with stable values ▪ Commercial and service compani
Slide 6: Healthy Swiss office market | Zurich with strong demand
Business update | Market Healthy Swiss office market | Zurich with strong demand Zurich office market highlights ▪ Healthy absorbtion especially in Zurich CBD with expectation of rising prime rents ▪ Office supply in the Zurich region has fallen below 300 000 m2 in Q2 2019 for the first time since 2
Slide 7: Increase in logistics demand requires investment in infrastructure too
Business update | Market Increase in logistics demand requires investment in infrastructure too Construction plans Highlights ▪ Test track Härkingen/Niederbipp to Zurich until 2030, ▪ Allows the flexible and underground transport of pallets and 10 main hubs planned along the route, expected containe
Slide 8: Financial update H2 2019
Business update | Financials Financial update H2 2019 Third-party asset management Bond issue Tax voting 5th capital increase for Swiss Federal Act on Tax Reform and Prime Investment Foundation OASI Funding (19 May 2019): (SPIF) in the amount of up to positive effect of CHF 158 million CHF 170 milli
Slide 9: Real Estate: Successful portfolio management (e.g. Müllerstr. Zürich)
Business update | Group Companies Real Estate: Successful portfolio management (e.g. Müllerstr. Zürich) Key takeaways ▪ Purchased in October 2018 from a Credit Suisse property fund as part of the Sihlcity swap deal ▪ Prime CBD location close to main station Zurich (outstanding public transport conne
Slide 10: Tertianum: Sales process on track
Business update | Group Companies Tertianum: Sales process on track ▪ Expansion of the network to 78 locations throughout Switzerland (as of 30 June 2019) Highlights HY 2019 ▪ Opening of Tertianum «Rebgarten» in Liestal in October 2019 ▪ Full-year 2019 on track: sales CHF >500 million and EBIT CHF >
Slide 11: Jelmoli (1|2): Successful evolvement of premium retail in Zurich
Business update | Group Companies Jelmoli (1|2): Successful evolvement of premium retail in Zurich Highlights ▪ New «Beauty World» opened in summer 2019 ▪ Mix of premium brands and shop-in-shop concepts offer an attractive custumer journey ▪ Thanks to the flexible floor spaces, new brands and shops
Slide 12: Jelmoli (2|2): Pallas aesthetics clinic
Business update | Group Companies Jelmoli (2|2): Pallas aesthetics clinic Highlights ▪ Project created the largest aesthetics flagship clinic for Pallas Kliniken in the 4th floor of Jelmoli ▪ Pallas Kliniken (founded 1994) is the leading private beauty and lifestyle clinic operator with 17 branches
Slide 13: Wincasa: Expansion of platform «streamnow» within the portfolio
Business update | Group Companies Wincasa: Expansion of platform «streamnow» within the portfolio Zurich | 23 October 2019 Capital Markets Day 2019 13
Slide 14: Project pipeline overview
1 Business update René Zahnd 2 Project pipeline overview Peter Lehmann 3 Projects on the site visit Peter Lehmann 4 Guidance and summary René Zahnd Zurich | 23 October 2019 Capital Markets Day 2019 14
Slide 15: Convincing reasons for project development
Project pipeline | Reasons for project development Convincing reasons for project development REVALUATION RENTAL INCOME INNOVATION GAINS Leverage of additional Projects with above-average Use of the latest technology potential for rental income yields (e.g. BIM) INDEPENDENCE Independence from the tr
Slide 16: CHF ~800 million and eight building sites
Project pipeline | Properties under construction CHF ~800 million and eight building sites Values in CHF Pipeline: CHF 2 billion Under construction: CHF ~800 million In development: CHF ~800 million Reserves: CHF ~400 million Zurich | 23 October 2019 Capital Markets Day 2019 16
Slide 17: CHF ~800 million in development and CHF ~400 million reserves
Project pipeline | Projects in planning CHF ~800 million in development and CHF ~400 million reserves Values in CHF Pipeline: CHF 2 billion Under construction: CHF ~800 million In development: CHF ~800 million Reserves: CHF ~400 million Zurich | 23 October 2019 Capital Markets Day 2019 17
Slide 18: Projects in planning – building application submitted for JED II
Project pipeline | Projects in planning Projects in planning – building application submitted for JED II Projects Tertianum Tertianum Alto Pont-Rouge JED II Stücki Park II Maag site VMA Pré-Bois Paradiso Olten Lancy Schlieren Basel Zurich Meyrin architectural district plan Design plan published comp
Slide 19: Projects on the site visit
1 Business update René Zahnd 2 Project pipeline overview Peter Lehmann 3 Projects on the site visit Peter Lehmann 4 Guidance and summary René Zahnd Zurich | 23 October 2019 Capital Markets Day 2019 19
Slide 20: Potential for real estate companies in urban logistics market
Project pipeline | Demand for logistic buildings Potential for real estate companies in urban logistics market Trend in rental prices for logistics properties Index December 2007 = 100 Facts and comments ▪ Multi-channel distribution in retail is driving the need for logistics assets ▪ Both tradition
Slide 21: E-Commerce forces changes in transportation
Project pipeline | Demand for logistic buildings E-Commerce forces changes in transportation Change in number of parcels in millions compared with the previous year (estimate) Facts and comments ▪ Digitalisation brings fundamental changes to the transport industry ▪ Drones, fully automatic goods tra
Slide 22: Project «West-Log» | Urban logistic hub for Zurich
Project pipeline | Site visit Project «West-Log» | Urban logistic hub for Zurich Highlights ▪ Project: Urban logistic property at the city border ▪ Success factors: The site is ideally connected for logistic and private traffic thanks to the nearby motorway. Elektro-Material AG (Rexel Group) as anch
Slide 23: JED (1|3) | A place for innovative collaboration close to Zurich
Project pipeline | Site visit JED (1|3) | A place for innovative collaboration close to Zurich Highlights «2226» Halter Zühlke ▪ Project: Transformation and densification of the former NZZ printing site (acquired in 2015) ▪ Success factors: The site is located next to the railway station Schlieren a
Slide 24: JED (2|3) | «2226» or «the future of building»
Project pipeline | Site visit JED (2|3) | «2226» or «the future of building» Highlights ▪ Project «2226»: Densification of the existing site through a building with high comfort for users (without heating, cooling and ventilation, however, with stable temperature of 22-26° and optimal humidity) ▪ Su
Slide 25: JED (3|3) | «2226» with highly efficient cost structure
Project pipeline | Site visit JED (3|3) | «2226» with highly efficient cost structure Life Cycle Costs (LCC) Energy Consumption Construction Costs Source: Baumschlager Eberle Architekten Zurich | 23 October 2019 Capital Markets Day 2019 25
Slide 26: YOND (1|2) | Innovative building and flexible spaces in Zurich
Project pipeline | Site visit YOND (1|2) | Innovative building and flexible spaces in Zurich Highlights ▪ Project: Flexible spaces for service (e.g. Coople, JobCloud, Vebego) and manufacturing companies (e.g. Better Taste) ▪ Success factors: Innovative real estate project, planned and developed base
Slide 27: YOND (2|2) | New Swiss headquarters of Coople, JobCloud and Vebego
Project pipeline | Site visit YOND (2|2) | New Swiss headquarters of Coople, JobCloud and Vebego Zurich | 23 October 2019 Capital Markets Day 2019 27
Slide 28: Alto Pont-Rouge (1|2) | Demand for large flexible spaces in Geneva
Project pipeline | Office project in Geneva Alto Pont-Rouge (1|2) | Demand for large flexible spaces in Geneva Highlights ▪ Project: Modern office building with ~35 000 m2 gross area in Geneva’s Praille-Acacias-Vernets (PAV) development zone ▪ Success factors: Attractive price offering («factor 4»),
Slide 29: Alto Pont-Rouge (2|2) | Demand for large flexible spaces in Geneva
Project pipeline | Office project in Geneva Alto Pont-Rouge (2|2) | Demand for large flexible spaces in Geneva Basic pattern Possible use Zurich | 23 October 2019 Capital Markets Day 2019 29
Slide 30: Guidance and summary
1 Business update René Zahnd 2 Project pipeline overview Peter Lehmann 3 Projects on the site visit Peter Lehmann 4 Guidance and summary René Zahnd Zurich | 23 October 2019 Capital Markets Day 2019 30
Slide 31: Confirmation of our targets
Guidance Confirmation of our targets Expected rental income from developments* Vacancy rate 2019E Values in CHF m Active vacancy management with an expected vacancy rate of ≤ 5% Total CHF 83 million Earnings contribution of Services segment 2019E Targeted further growth of Services segment earnings
Slide 32: Analyst and investor contact
Analyst and investor contact Media contact Markus Waeber Mladen Tomic Investor Relations Media Relations Head Investor Relations Head Corporate Communications Business: +41 58 317 17 64 Business: +41 58 317 17 42 Mobile: +41 79 566 63 34 Mobile: +41 79 571 10 56 markus.waeber@sps.swiss mladen.tomic@
Slide 33: Appendix
APPENDIX
Slide 34: Constructions (1|5): Espace Tourbillon, Plan-les-Ouates
Appendix Constructions (1|5): Espace Tourbillon, Plan-les-Ouates Highlights D ▪ Project: Multifunctional C industrial and commercial park with efficient logistics, total 95 000 m2 usable space B E ▪ Success factors: Tailor- made for 4 000 workplaces ▪ Partial sale and letting: two sold to Wilsdorf (
Slide 35: Constructions (2|5): Tertianum elderly care home, Richterswil
Appendix Constructions (2|5): Tertianum elderly care home, Richterswil Highlights ▪ Project: Assisted living and nursing beds for the community of Richterswil ▪ Success factors: Successful Public Private Partnership («PPP») project with the community of Richterswil, Tertianum and Swiss Prime Site Im
Slide 36: Constructions (3|5): Tertianum elderly care home, Monthey
Appendix Constructions (3|5): Tertianum elderly care home, Monthey Highlights ▪ Project: Assisted living and nursing beds for community of Monthey ▪ Success factors: New construction in an attractive inner-city location; expansion of the Tertianum network in the Canton of Valais (french- speaking pa
Slide 37: Constructions (4|5): Stücki Park I, Basel
Appendix Constructions (4|5): Stücki Park I, Basel Highlights ▪ Project: Creates a new centre for 1 700 workplaces ▪ Success factors: Meets need for laboratory and office spaces from new and existing tenants such as Lonza, Medartis, Technology Park Basel (current letting status: 50% for the first tw
Slide 38: Constructions (5|5): Schönburg, Bern
Appendix Constructions (5|5): Schönburg, Bern Highlights ▪ Project: Comprehensive project to generate significant added value for the city of Berne and the residents of Schönburg ▪ Success factors: Budget design hotel Prizeotel and food retailer/fitness operater Coop as anchor tenants. In addition 1
Slide 39: Developments (1|4): Maag site, Zurich
Appendix Developments (1|4): Maag site, Zurich Highlights ▪ Project: Further densification of the existing Maag site ▪ Success factors: Popular city location with excellent transport connections ▪ Investment volume: CHF 100 million*, completion 2024 ▪ Net yield: >5% (on cost) * incl. land Zurich | 2
Slide 40: Developments (2|4): Stücki Park II, Basel
Appendix Developments (2|4): Stücki Park II, Basel Highlights ▪ Project: Creates a new centre for 1 700 workplaces ▪ Success factors: Meets need for laboratory and office spaces from new and existing tenants such as Lonza, Medartis, Technology Park Basel ▪ Investment volume: CHF 94 million* (phase 2
Slide 41: Developments (3|4): Tertianum Residence Du Lac, Lugano-Paradiso
Appendix Developments (3|4): Tertianum Residence Du Lac, Lugano-Paradiso Highlights ▪ Project: Exclusive Tertianum residence with assisted living and nursing beds ▪ Success factors: Prime location close to Lugano, expansion of the existing Tertianum network in the Canton of Ticino (italian- speaking
Slide 42: Developments (4|4): Tertianum elderly care home, Olten
Appendix Developments (4|4): Tertianum elderly care home, Olten Highlights ▪ Project: Modern working spaces for life science companies; elderly care home (phase 1) ▪ Success factors: The up- and-coming former industrial site of the city of Olten is growing very dynamically (e.g. medtech company Sens
Slide 43: Disclaimer
Disclaimer Details published in this presentation are for information purposes only and should not form the basis for any investment decisions or recommendations to purchase Swiss Prime Site AG securities. The content of this presentation was diligently researched and compiled. However, Swiss Prime
Slide 44: Swiss Prime Site