Peach Property Group Ag · SIX:PEAN
Peach Property — FY2021 Earnings Presentation
58 slides from Peach Property's earnings presentation, Mar 29, 2022
Slide 1: FY 2021 Results
FY 2021 Results March 29, 2022 each PROPERTY GROUP
Slide 2: Presenters
Presenters Dr. Thomas Wolfensberger Chief Executive Officer Previously formed and later s« international financial technolo: Holds a doctorate in of Zuric Thorsten Arsan Chief Financial Officer et, pital Mar ratings, and financing Former H Deputy Head of Finan novia SE former Senior for Fir ontrolli
Slide 3: Agenda
Agenda 1. Highlights FY 2021 2. Portfolio & Operational Performance 3. Financial Performance 4. Guidance 5. Appendix Market development Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR ESG Share data & financial calend
Slide 4: 2021 — another record year in Peach's history
2021 — another record year in Peach's history . ey. & Portfolio 4 Financials ==) ESG folio Ve F i % 1% A Portfolio Value CHF 2 687mm a +28 Adjusted EBITDA CHF 56.3mm t +119! * Decarbonization path developed: » t 5 climate neutrality of our real estate Residential units 27.441 i +18% FFO| CHF timm +1
Slide 5: Agenda
Agenda 1. Highlights FY 2021 2.Portfolio & Operational Performance 3. Financial Performance 4. Guidance 5. Appendix + Market development + — Portfolio details * Consolidated statement of income, financial position and cash flows + Funds from operations + EPRANAV& NTA + LIV&ICR * ESG * Share data & f
Slide 6: Overview investment properties
& Overview investment properties Figures in CHF thousands (unless otherwise stated) Number of residential units Total floor space in sqm Residential floor space in sqm Commercial floor space (DIN 277) in sqm Actual rental income* Maintenance costs * Administrative and operating costs * Vacancy costs
Slide 7: Portfolio structure as of Dec 31, 2021
& Portfolio structure as of Dec 31, 2021 Investment properties DE = CHF 2 608.3mm (97%) Total portfolio market value CHF 2 687mm Investment properties oo Development properties CH CHF 25.4mm CHF 53.3mm (1%) (2%) OpPeach __ swietwaverseerminesoy woestanne Acs orDecerbe sh, 2021, exc igor ase
Slide 8: Strong track-record in growing portfolio
& Strong track-record in growing portfolio 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 R: Aig in ie = Acquisition Acauisition of H 4 Acquisition ot WE acquisition of BB Acquisition of MW acquisition of Acsuston ia. F Acquisitions ‘Acquisition of # — Acquisition of residential two portfoli
Slide 9: Well-located portfolio with relevant scale
& Well-located portfolio with relevant scale Investment Portfolio @ Peach Point e New Peach Point 2022 1 Kel Schleswig-Holstein Hamburg * Bremerhaven « Emden Oldenburg © * Bremen Niedersachsen O Hessen ‘Wiesbaden Rheinland-Piatz @iiaing — Waredurg saatana © @ v Heidelberg Kaiserslautern Stuttgart >
Slide 10: Typical properties in Peach's portfolio
& Typical properties 1 in Peach's porttolio >peach 10
Slide 11: 360-degree tenant service model
& 360-degree tenant service model Web portal Email Telephone Peach Point . B Property Management in Peach 1an2 — SX (BE) i] + All tenant interaction in unified ticketing system + 284 tickets per month per 1 000 apartments in 24/7 mutli-channel access 2021 (155 tickets in 2020) + 91.4% “one touch”: q
Slide 12: Peach Points: Client service excellence delivered through regional tenant stores
& Peach Points: Client service excellence delivered through regional tenant stores Wy ee > Kiel * Stralsund LB Schleswig-Holstein Hamburg Mecklenburg-Vorpommem * prememavélamburg’ Schwerin = Emden * Lineburg eal =@ Bertin “Berlin Dortmund Qe eniat Frankfurt (Oder) Erkrath eee rAnhalBrandenburg Essen
Slide 13: Attractive potential for further rent growth
& Attractive potential for further rent growth Figures in EUR / sqm +4% 6.46 | 75 18% potential Benchmark for new lettings in 2022 @ in-place rent @ market New letting @ in-place rent @ market Sources of rental growth target ~30% ~20% 3.5% I-f-l growth target ~50%! Fluctuation Vacancy reduction Incr
Slide 14: Capex development
& Capex development CAPEX in CHF + ~ 2000 apartments renovated in 2021. 33.80/sqm * Increase of capex to ~CHF 70mm in 28.30/sqm 2022 planned; mainly driven by step-up of (energetic) renovation program and to some extent by increased construction 24.10mm costs 20.21mm * Renovation of 2 500 — 3 000 ap
Slide 15: Vacancy driven by renovation measures
& Vacancy driven by renovation measures Development of vacant residential units and vacancy ratio 2190 1842 1158 G 2019 2020 2021 + Overall vacancy ratio flat year-over-year; mainly driven by a slightly higher fluctuation on units acquired in 2020. + OnalL-f-l basis (without units acquired in 2021 a
Slide 16: Significant valuation gains and still attractive rental yield
& Significant valuation gains and still attractive rental yield ™ Operational progress & discount rate mlnitial valuation "Total revaluation gain as % of investment properties CHF 288.3mm (10.8%) Key valuation indicators as of Dec 31, 2021 Gross rental yield 4.8% Average value per sqm EUR 1 424 Rent
Slide 17: Remaining development project in Switzerland, Wädenswil
& Remaining development project in Switzerland, Wadenswil on Lake Zurich Development project with 56 condominiums in 4 buildings, combination of redevelopment and new construction; investment properties with 29 rental units and 5 600 sqm commercial space The project has been legally approved as of F
Slide 18: Sustainability in practice on all levels
= Sustainability in practice on all levels Our sustainable goals Our KPIs* 9 UN SDGs? as particular relevant for our business ENVIRONMENT CO, emissions: 34.5 kg/mes | Total energy intensity. 15.4 kWh/me Reduction of carbon footprint through responsible real estate Waste recycling rate: 33% managemen
Slide 19: Peach's ESG Roadmap
mar Peach's ESG Roadmap Establishment of an ESG Implementation of Bundling of electricity and | Smart metering: digitization ff] data management and Sgtetaatonee decarbonization tool gas contracts of consumption recording sustainability reporting SuMaNEE WOOTEN to define a system electricity decarbo
Slide 20: Peach's decarbonization path
gli 40 35 & g 8 30 8 & £ 25 ge fe} 8 2 20 © 2 5 15 & © 3 § 10 5 0 ©peach 7. Estimated effect of inclusion of al properties acquired in 2021; process currently ongoing 2020 2030 Peach's decarbonization path Committed to climate neutrality of our real estate portfolio latest by 2050. Intermediate goal
Slide 21: Our strategy to reach our CO2 targets
oy. &) Our strategy to reach our CO, targets Focus on energy consumption from heating.. euanid asse cow Iti Wealcelterd yetticie nc yy * Our refurbishment-focus is on energy classes G and H, where we can achieve the biggest impact on the carbon footprint of our portfolio. + The EU directive requires
Slide 22: Agenda
Agenda 1. Highlights FY 2021 2. Portfolio & Operational Performance 3.Financial Performance 4. Guidance 5. Appendix + Market development Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR ESG Share data & financial calen
Slide 23: Strong financial performance in 2021
<< Strong financial performance in 2021 Operating Income (CHFmm) Net rental income (CHFmm) Adjusted EBITDA (CHFmm) Result after tax (CHF mm) 160 734 38 915, 17042 91.004 2020 213 584 | s86% 2020 54748 | 498% EO 25742 [ 119% 127 282 | 158% EER 397 838 108 601 56256 [ual 201198 FFO I (CHFmm) Equity ra
Slide 24: Maturity profile with refinancing opportunities
S Maturity profile with refinancing opportunities Debt structure as of December 31, 2021 First refinancing measurements implemented in Q1 2022; 600 558 resulting in ~20bps ™ Bank loans (secured) WACD improvement. Bank loans (unsecured) ‘All debt maturing in 500 2022 will be refinanced = Corporate bo
Slide 25: Financial policy geared to reach investment grade
eS Financial policy geared to reach investment grade Peach Financial Policy 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 investment grade instrument
Slide 26: Rating upgrades and strong share price performance in 2021
S Rating uprades and strong share price performance in 2021 Credit ratings (Instrument Rating) Recent capital market transaction IG area 2% EUR 55 million promissory note (German SSD); maturity 3 years Mandatory convertible bond 2.5% CHF 180 million; conversion price CHF 55.00 EuroBond 4.375% EUR 30
Slide 27: Agenda
Agenda 1. Highlights FY 2021 2. Portfolio & Operational Performance 3. Financial Performance 4 Guidance 5. Appendix Market development Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR ESG Share data & financial calenda
Slide 28: Guidance FY 2022
[7 Guidance FY 2022 Net Rental Income (-f-L rental growth av @peach » CHF 122 - 125mm Penne FX-adjusted CHF 113-117mm details p. 30 28
Slide 29: NRI guidance FY 2022
NRI guidance FY 2022 CHFmm (constant currency (assuming @ EUR/CHF rate of 1.08) 9 4 108.6 a ‘Additional rental income for 6 months of mid-2021 acquisition FY 2021 Eagle acquisition \-f-Lrental growth CHFmm (FX-adjusted (assuming @ EUR/CHF rate of 1.00) 4 108.6 9 — Le | | -8 ‘Assuming average EUR/CHF
Slide 30: FFO I guidance FY 2022
FFO I guidance FY 2022 Figures in CHFmm 2 16 | 4 | 15 | it mz Eagle acquisition Omitted interest FFO | guidance FY 2022 expenses on convertible FFO I FY 2021 NRI growth (guidance) Lower interest expenses @peach
Slide 31: Why invest in Peach Property Group?
Why invest in Peach Property Group? A Experienced team with a proven transaction track record Germany: attractive real estate market with very good perspectives & Successful investment strategy Long term growth and value orientation Sound equity basis Attractive investment case >CHF 3.8 billion wort
Slide 32: Agenda
Agenda 1. Highlights FY 2021 2. Portfolio Operational Performance 3. Financial Performance 4. Guidance 5. le senels Market development Portfolio details Consolidated statement of income, financial position and cash flows Funds from operations EPRA NAV & NTA LTV&ICR ESG Share data & financial calenda
Slide 33: Appendix: Market development
©peach PROPERTY GROUP Appendix Market development
Slide 34: Germany has the largest housing market in Europe and is structurally undersupplied
Germany has the largest housing market in Europe and is structurally undersupplied Largest housing markets in Europe... ..With a strong rental culture... Total population per country mia Total households" 839 65.4 68.2 604 423 303 285 264 e oO cS) oO ..in which demand is structurally undersupplied..
Slide 35: Germany's affordable housing segment is extremely stable
Germany's affordable housing segment is extremely stable... Low, stable vacancy rate through the cycle... ..With exceptionally high average tenancy length? 12.0% ) __ German residential vacancy rate! --»« ——German office vacancy rate? Peach Property average tenancy 10.0% aan yrs length ~10 years 8.0
Slide 36: Secondary (B) cities offer an attractive risk/return profile
... especially in secondary ("B")-cities that offer an attractive risk/return profile Multiplier in B, C and D-cities significantly lower... Average multiplier multi-family buildings! 35 ‘A Cities B Cities C Cities D Cities 30 25 20 15 ——— 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 10 Re
Slide 37: Bielefeld Gutersloh Essen
• Bielefeld • Gutersloh • Essen Mulheim/Ruhr • Dusseldorf Leverkusen Cologne Bonn •
Slide 38: Appendix: Portfolio details
©peach PROPERTY GROUP Appendix Portfolio details
Slide 39: Structured acquisition process that results in strategically sound acquisitions
Structured acquisition process that results in strategically sound acquisitions v Almost exclusively focussed @® Sourcini on off-market transactions ; w based on strong network in Germany ” Swift execution Impeccable v Valued partner respecting reputation confidentiality around deal terms v Healthy
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Slide 41: Opex development
§& Opex development Opexin CHF m™ Maintenance / sqm = Admin / sqm =Total Opex '8.76/sqm 5.93/sqm 5.04/sqm 2019 2020 6mm 2021 314 party administration Increase of mainly due to cost incurred with respect to the portfolio acquired 2021, as well as higher Costs in connection with in integration, and th
Slide 42: Appendix: Consolidated statements
©peach PROPERTY GROUP Appendix Consolidated statement of income, financial position and cash flows
Slide 43: Consolidated statement of income
Consolidated statement of income Figures in CHF thousands Dec 31, 2020 Rental income 54748 Valuation gains from investment properties ETE @ 157786 Profit on disposal of investment properties 387 Income from development properties | sid 180 Other operating income 483 Operating income 397 83 213 584 J
Slide 44: Consolidated statement of financial position
Consolidated statement of financial position Higuresin CHF thousands Casn & Cash equivalents Trade receivables Other receivables Current financial receivables Development properties Investment properties held for sale Total current assets Investment properties Equipment Intangible assets Non-current
Slide 45: Consolidated statement of financial position (continued)
Consolidated statement of financial position (continued) Comments Figures in CHF thousands Dec 31, 2020 Share capital Ais 12.495) @ Mandatory convertible bond Ill Senay ares we On June 23, 2021, we issued a CHF 180mm subordinated mandatory convertible bond. The bonds E fully con h riya contal EEG 50
Slide 46: Consolidated statement of cash flows
Consolidated statement of cash flows Figures in CHF thousands Result before taxes Adjustments for non-cash expenses/income Depreciation and amortization Valuation result from investment properties Result on disposal of investment properties Change in bad debt allowance Valuation result from lease li
Slide 47: Consolidated statement of cash flows (continued)
Consolidated statement of cash flows continued) Figures in CHF thousands Dec 31, 2020 Payments far real estate companies - 507124 Payments for equipment Payments for intangible assets Investments in investment properties Proceeds from disposal of investment properties Repayment of financial receivab
Slide 48: Funds from operations (FFO)
Funds from operations (FFO) Figures in CHF thousands EBIT Depreciation and amortization EBITDA /. Valuation result of investment properties /. Disposal of investment properties Share-based compensation Other non-cash accrued expense positions Adjusted EBIT /. Interest paid /. Interest paid on hybrid
Slide 49: EPRA NRV & NTA
EPRA NRV & NTA Figures in CHF thousands Dev a Dec 31, 2020 Comments EPRA NRV EPRA NTA EPRA NRV EPRA NTA * The material increase compared to the previous year is Equity attributable to Peach Property Group AG 724 214 724 214 partly due to the newly issued mandatory equity holders | aaa] convertible b
Slide 50: Loan-to-value and interest coverage ratio
Loan-to-value and interest coverage ratio LTV ICR Figures in CHF thousands Market value of real estate investment portfolio Market value of real estate development portfolio Mortgages and building loans Bonds Other bank financings ./. Cash and cash equivalents ./. Current financial receivables Loan-
Slide 51: Appendix
©peach PROPERTY GROUP Appendix
Slide 52: ESG: Peach's decarbonization tool
ESG: Peach's decarbonization tool Analyse impact of various heating technologies on CO2- intensity. Analyse different paths to climate- neutral portfolio and its impact on costs and investments ausgewahltes Szenanio ‘Anteil Flache | Flache (m®) 100,0 % 1,5 Mio. Wohneinh. | Gewerbeeinh, 18.917 14 C02
Slide 53: Appendix: Share data
©peach PROPERTY GROUP Appendix Share data
Slide 54: Share data
Share data Signifanct shareholder as of Dec 31, 2021 Information on the share Dec 31, 2021 Dec 31, 2020 y 26.13% Share capital in CHF 12 494751 Number of shares issued 12 494751 Nominal value per share in CHF 1.00 Number of treasury shares 5 682 50.79% Number of outstanding shares 12 489 069 7.56% K
Slide 55: Appendix: Financial calendar
©peach PROPERTY GROUP Appendix Financial calendar
Slide 56: Financial calendar
Financial calendar =] 20 May - Annual General Meeting 2022 | 30 August — Publication of half-year results 2022 | Q4 (date tbc) — Capital Markets day 2022 ©peach 56
Slide 57: Disclaimer
Disclaimer 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, reasonable. Forward-loo
Slide 58: Investors, Analysts and Media
_|h and Media Stefan Feller, Head of Investor Relations Dr. Thomas Wolfensberger, Chief Executive Officer Thorsten Arsan, Chief Financial Officer +41 44 485 50 18 investors@peachproperty.com Investors, Analysts "