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Patrizia — PATRIZIA Immobilien — Investor Presentation (October 2016)

33 slides from Patrizia's investor presentation, Oct 11, 2016

  1. Slide 1: A leading European real estate investment firm

    PATRIZIA Immobilien AG A leading European real estate investment firm Company Presentation September 2016 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: PATRIZIA − A leading European real estate investment firm

    PATRIZIA − A leading European real estate investment firm…  PATRIZIA is a leading European real estate investment manager and investor ASSETS UNDER MANAGEMENT (IN EUR BILLION) 18.6  30-year history as European investor and asset manager of high quality assets 16.6 17.6  One-stop shop: leading pan

  3. Slide 3: Generating income through fee bearing AuM and invested equity

    …generating income through fee bearing AuM and invested equity... AuM H1 2016 Institutional Funds EUR 9,577m Retail Funds EUR 148m Third Party Business Co-Investments EUR 6,769m Fees Single Asset EUR 860m Mandates Income Streams EUR 17,354m1 Invested Equity Return on Equity Co-Investments EUR 172m E

  4. Slide 4: Earning long-term base and transaction as well as performance fees

    … earning long-term base and transaction as well as performance fees Fee structure Fee description H1 2016 H1 2015 Change in % Asset, Fund and Portfolio Fixed percentage of investment EUR 39.3m EUR 33.8m 16.3% Management Fee1 volume (gross asset value) Fixed percentage of earnings above a defined ta

  5. Slide 5: Strategy: increase and diversify sustainable operating income

    Strategy: increase and diversify sustainable operating income Increase  Grow AuM to increase contractual base fees from third party management services Management  Expand product offering for institutional and retail clients Fees  Produce performance fees through outperformance and superior retur

  6. Slide 6: Rise in fee bearing AuM drives increase in long-term base fees

    Rise in fee bearing AuM drives increase in long-term base fees… ASSETS UNDER MANAGEMENT ASSET MANAGEMENT FEES (in EUR billion) (in EUR million) 94.0 18.6 17.6 81.5 16.6 14.6 68.1 11.8 53.4 35.6 6.9 2012 2013 2014 2015 08/2016 2016e 2012 2013 2014 2015 H1 2016 annualised PATRIZIA Immobilien AG| © 201

  7. Slide 7: Transaction fees as a sustainable part of total income

    …with transaction fees as a sustainable part of total income… TRANSACTION VOLUME TRANSACTION FEES (in EUR billion) (in EUR million) As of 30 June 2016 As of 30 June 2016 7.2 58.7 54.1 Average: 52.2 EUR 51.4m p.a. Average: 3.0 17.0 26.7 EUR 4.9bn p.a. 4.8 17.7 37.2 0.5 4.1 9.4 29.1 0.7 3.2 2.8 0.6 10

  8. Slide 8: Performance fees confirming PATRIZIA's track record

    …and performance fees confirming PATRIZIA´s track record  Third party funds earn contractual base fees PERFORMANCE FEES (in EUR million) and generate performance fees upon exceeding pre-determined return hurdles  Return hurdles largely relate to realised cash returns during investment period and a

  9. Slide 9: Competitive advantages: direct access to clients and assets

    Competitive advantages: direct access to clients and assets…  PATRIZIA’s strong track record delivering stable and attractive investment returns to As clients is a key competitive advantage Investment  Direct access to broad and long standing institutional client base Manager  Direct access to pa

  10. Slide 10: Unique European track record as investment manager

    … with an unique European track record as investment manager  EUR 22.1bn total transaction volume completed by PATRIZIA since 2012 Transactions  Acquisitions of EUR 16.0bn completed  Disposals of EUR 6.1bn completed  EUR 7.4bn of equity raised since 2012 Fund Raising  200+ German and internatio

  11. Slide 11: Equity of EUR 7.4bn raised from 200+ institutional clients

    Equity of EUR 7.4bn raised from 200+ institutional clients EQUITY OF EUR 7.4BN RAISED EQUITY COMMITMENTS (in %)  More than 200 institutional clients, largely invested in multiple PATRIZIA products 5% 4%  Growing international client base already accounts for 9% German investors of equity committed

  12. Slide 12: Completed financings of EUR 8.6bn with more than 80 institutions

    Completed financings of EUR 8.6bn with more than 80 institutions FINANCINGS OF EUR 8.6BN COMPLETED GEOGRAPHIC BREAKDOWN  Fast debt raising capacity demonstrates execution (in %) reliability  Debt funding base consists of more than 80 financial 20% institutions in 9 countries German  Largest singl

  13. Slide 13: Multi-fund strategy offers variety of investment options

    Multi-fund strategy offers variety of investment options FEE BEARING AUM EUR 17.6BN Regulated Funds Single Asset Mandates Co-Investments EUR 9.7bn EUR 0.9bn EUR 6.8bn  PATRIZIA WohnInvest KVG  Single asset or portfolio  Co-Investments align interests  PATRIZIA GewerbeInvest KVG mandates outside

  14. Slide 14: Clients benefit from diversified product offering across Europe

    Clients benefit from diversified product offering across Europe EUR 17.6BN AUM ACROSS THE RISK - RETURN SPECTRUM MANAGING ALL MAJOR SEGMENTS 2% 2% Risk 4% Office 2% 0.2bn€ (1%) Opportunistic 3% Retail 34% Residential 7.0bn€ (40%) Value add Light Industrial Logistics 37% Hotel 10.4bn€ (59%) Core/core

  15. Slide 15: Regulated funds available as pool funds or separate accounts

    Regulated funds available as pool funds or separate accounts Institutional Clients – € 9.1bn AuM1 Retail Clients – € 148m AuM1 Regulated open ended funds via Regulated closed end funds via PATRIZIA WohnInvest KVG (residential) PATRIZIA GrundInvest KVG PATRIZIA GewerbeInvest KVG and  Established by

  16. Slide 16: EUR 9.7bn regulated AuM and EUR 5.7bn invested equity

    EUR 9.7bn regulated AuM and EUR 5.7bn invested equity PATRIZIA`S REGULATED THIRD PARTY FUNDS AS OF 31 AUGUST 2016  Regulated funds business accounts for EUR 9.7bn or 55.2% of total assets under management  Approx. EUR 5.7bn of invested equity, another EUR 1.5bn of open equity commitments for furth

  17. Slide 17: Significant alignment of interest through co-investments

    Significant alignment of interest through co-investments Strategy Selected track record “We manage our clients capital like it’s our own” Project PRINCE Major German Pension Fund  EUR 6.8bn AuM at EUR 2.2bn invested Residential Value-add equity/EUR 172m PATRIZIA equity Company mandate IRR: 27.4% To

  18. Slide 18: Outstanding track record of principal investments

    Outstanding track record of principal investments Strategy Selected track record  EUR 252m AuM Project Harald  Opportunistic  Proprietary investments of PATRIZIA equity investment style; German  Require comprehensive experience in Residential Portfolio however, considering an execution of comple

  19. Slide 19: Case study: Harald

    Case study: Harald HARALD EARNINGS CONTRIBUTION HARALD EARNINGS BRIDGE (in EUR million) As of 30 June 2016  Operating income of EUR 208m excluding Considered transaction related taxes and minorities contribution to 2016 operating income guidance of  PATRIZIA will remain shareholder with a at least

  20. Slide 20: 2016 already another strong year

    2016 already another strong year FINANCIAL RESULTS H1 2016: OPERATING INCOME H1 2016 (in EUR million) Operating income of EUR 231.8m As of 30 June 2016  Harald: EUR 208.0m excluding transaction-related taxes and minorities  Operating business: EUR 23.8m (H1 2015: EUR 12.5m; +90.4%) 23.8  H1 2016

  21. Slide 21: Strong operational start to 2016 reflected in financial results

    Strong operational start to 2016 reflected in financial results Operating Income H1 2016 – EUR m Institutional Funds Third Party Business: Third Party Business Retail Funds 25.6 +187.6% 8.9 Fees Co-Investments H1 2015 H1 2016 Income Streams Single Asset Mandates Including + Return on Equity Equity I

  22. Slide 22: Increased fee income shows PATRIZIA's operating progress

    Increased fee income shows PATRIZIA’s operating progress STRONG DEVELOPMENT OF FEE INCOME IN H1 2016 FEE INCOME (in EUR million) As of 30 June 2016  Total fee growth of 23.7% across all segments 77.8 +23.7% 1.7 +183.3% to EUR 77.8m in H1 2016 after EUR 62.9m in H1 2015 62.9  Increase in contracted

  23. Slide 23: Investment income reveals PATRIZIA's outstanding investor expertise

    Investment income reveals PATRIZIA’s outstanding investor expertise INVESTMENT INCOME INCREASED BY 7.0% INVESTMENT INCOME (in EUR million) As of 30 June 2016 Income from Principal- and Co-Investments Investment discipline pays off: 218.7  Excluding Harald, investment income was up 7.0% to EUR 10.7m

  24. Slide 24: Combined business model generates meaningful shareholder returns

    Combined business model generates meaningful shareholder returns RECONCILIATION OF OPERATING INCOME Including Harald Excluding Harald 1st half 2016 1st half 2016 1st half 2015 Change in EUR ‘000 01.01.-30.06.2016 01.01.-30.06.2016 01.01.-30.06.2015 EBITDA 289,958 16,720 9,931 68.4% Amortisation of f

  25. Slide 25: Strong balance sheet and significant liquidity enables future growth

    Strong balance sheet and significant liquidity enables future growth  Significant cash position of EUR 371.5m with EUR 271.2m freely available  Unlevered real estate assets of approx. EUR145m provide additional liquidity reserves  Well positioned for further growth:  Continue European expansion

  26. Slide 26: Outlook: Well on track for successful year in 2016

    Outlook: Well on track for successful year in 2016 POSITIVE MOMENTUM CONTINUES IN H2 2016 Guidance confirmed: OPERATING INCOME GUIDANCE (in EUR million) As of 30 June 2016  Operating income to reach at least EUR 250m Guidance:  Assets under Management to grow by EUR 2.0bn at least 250 231.8  Stro

  27. Slide 27: Appendix

    APPENDIX PATRIZIA Immobilien AG| © 2016 27

  28. Slide 28: Harald contribution to H1 2016 results

    Harald contribution to H1 2016 results Harald only H1 2016 in EUR ‘000 01.01. - 30.06.2016 Comments Revenues 468,523 Asset deals booked as Income from the sale of investment property 0 - revenues and Changes in inventories -367,511 - change in inventories Other operating income 3,352 Revenues includ

  29. Slide 29: P&L H1 2016 excluding Harald

    P&L H1 2016 excluding Harald Without Harald Without Harald H1 2016 H1 2015 in EUR ‘000 01.01. - 30.06.2016 01.01. - 30.06.2015 Comments Revenues 110,712 96,552 Revenues increase driven by Income from the sale of investment property 901 2,969 - Increase in 3rd party fee income Changes in inventories

  30. Slide 30: Balance sheet – assets

    Balance sheet – assets ASSETS EUR'000 30.06.2016 31.12.2015 Comments A. Non-current assets Goodwill 610 610 Includes mainly fund management contracts Other intangible assets 36,414 37,417 of PATRIZIA GewerbeInvest Software 7,823 9,225 Investment property 15,210 20,802 Principal Investments at fair v

  31. Slide 31: Balance sheet – equity/liabilities

    Balance sheet – equity/liabilities EQUITY AND LIABILITIES EUR'000 30.06.2016 31.12.2015 Comments A. Equity Share capital 76,324 76,324 Capital reserve 191,637 191,637 Retained earnings Legal reserves 505 505 Non-controlling shareholders 37,475 18,190 Increase due to Harald transaction Valuation resu

  32. Slide 32: Financial calendar

    Financial calendar 2016 November 8  Interim report for the first nine months of 2016 Conference calls about financial reports are usually held at 3 pm CET. Invitations and dial-in numbers are provided in advance. To stay informed, visit www.patrizia.ag PATRIZIA Immobilien AG| © 2016 32

  33. Slide 33: Contact details

    Contact details KARIM BOHN MICHAEL TEGEDER 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

PATRIZIA Immobilien — Investor Presentation (October 2016) on 6ix