DRAFT 10. Februar 2017

Transcription

1 2016 RESULTS results Zurich, 2 March 2017 FINANCIAL YEAR 2016 ZURICH, 2 MARCH 2017 DRAFT 10. Februar 2017

2 Welcome address 2016 highlights Key financial data 2016 Overview of property portfolio and project pipeline New initiatives, strategy and projections Annual General Meeting outlook and Q&A Zurich 2 March results 2

3 Welcome address 2016 in short Strategy Strategic priorities successfully put into effect 2016 results Healthy income growth achieved in a challenging environment 2017 General Meeting Unchanged dividend to be proposed to shareholders at General Meeting Zurich 2 March results 3

4 Welcome address 2016 highlights Key financial data 2016 Overview of property portfolio and project pipeline New initiatives, strategy and projections Annual General Meeting outlook and Q&A Zurich 2 March results 4

5 2016 highlights Portfolio exceeds CHF 10 bn for 1st time PROPERTY PORTFOLIO in CHF million 3.1% 4.2% OPERATING INCOME in CHF million 23.1% 5.5% RENTAL INCOME in CHF million 2.2% 1.6% 453 EBIT (adjusted*) in CHF million 3.5% -5.0% * excluding IAS 19 effects, revaluation gains and condominium sales Zurich 2 March results 5

6 2016 highlights Increase in net profit and net asset value NET PROFIT in CHF million excl. revaluation effects 1.4% 285 EQUITY RATIO in % 700 Bp 20 Bp % EARNINGS PER SHARE in CHF excluding revaluation effects 3.6% -3.8% 4.04 NET ASSET VALUE in CHF per share after deferred taxes 4.9% 1.8% Zurich 2 March results 6

7 2016 highlights Dynamic performance from all business fields Real Estate Profitable expansion thanks to attractive purchases Expanded know how in large-site transformation and development Professionally managed vacancy rates Time to market in project pipeline shortened Strengthened ties to market and clients Retail Increased turnover in a challenging market Stable footfall maintained despite rebuilding work Dynamised the business model by successfully introducing online shop Developed additional digital opportunities Expansion at international site Zurich airport Assisted Living Integration of new units acquired is on track Approval received for first genuine PPP collaboration in Richterswil Expanded network from 67 to 71 facilities in 2016 Increased profitablity Zurich 2 March results 7

8 2016 highlights Real Estate projects and transformations on track Real Estate Secured planning permission for three projects in Geneva Planning request submitted for Siemens site in Zurich Green light from voters on Weltpoststrasse project in Berne «PPP» as role model in Richterswil Doors opened at Motel One in Basel New leases on a total of ~ m 2 Repositioned Schönburg Berne and Brandschenkestrasse Zurich Turnaround for Stücki and A1-Center New purchases totalling over CHF 250 million Zurich 2 March results 8

9 2016 highlights Wincasa grows thanks to innovation and customer proximity Wincasa Renewal of property management contracts with major clients Acquisition of major new mandates such as Swisscanto and Swisscom; enlarging client base Takeover of «immoveris» with a strong regional presence in Bern and Fribourg Expanded assets under management Launched a digital portal for tenants Opened new large-site development business area Zurich 2 March results 9

10 2016 highlights Jelmoli performs robustly and expands its network Retail Launched online shopping portal «jelmoli.ch» Expanded «Shoe World» for men and women, offering widest selection in Switzerland Opened luxurious new Bucherer shop Increased turnover in a retail market facing major challenges in 2016 Maintained footfall despite fewer tourists from Asia and rebuilds First steps towards expansion at international site Zurich airport Zurich 2 March results 10

11 2016 highlights Tertianum successfully integrates acquisitions, expands network Assisted Living Integration of the SenioCare homes Acquired BOAS, thus establishing a presence in Frenchspeaking Switzerland Added 4 new facilities, thus enlarging network to 71 facilities in all by year end 2016 Expanded to apartments and beds Significantly raised profitability Harmonising market profile under Tertianum brand from early 2017 Zurich 2 March results 11

12 2016 highlights Sustainability as a core pillar of our DNA Integration of roadmaps for all six core initiatives into the business plan process Core initiatives Stakeholders Financial excellence Compliance and social commitment Sustainable investments and services Protecting the environment Attractive working environment Management Development of a dedicated unit for Sustainability and Innovation Appointment of Head of Sustainability and Innovation Reporting First GRI report published in 2016 annual report GRI certificate received in February 2017 Zurich 2 March results 12

13 2016 highlights 2016 objectives Strategy implementation Innovative business model continued and strengthened Property portfolio Project pipeline Financial management Business field management Vacancy management successfully optimised Focus on modernisations and transformations Continuing active and value-oriented portfolio and asset management Project development work intensified Project completions result in additional rental income Priority focus on Assisted Living projects Gradual reduction in financing costs in a low-interest-rate environment Equity ratio maintained at ~45%, liability maturities balanced Ensuring an attractive dividend policy Income and growth potential of business fields developed further Potential Group-wide synergies identified and realised Basis for sustainable performance secured Zurich 2 March results 13

14 2016 highlights Attractive dividend SHARE PRICE PERFORMANCE Indexed since IPO DIVIDENDS in CHF 4.4%* * Based on share price at year-end 2016 and proposed dividend of CHF 3.70 to shareholders at General Meeting Zurich 2 March results 14

15 WIR LEBESNSRÄUME WE GESTALTEN SHAPE LEBESNSRÄUME UND UND THE PERSPEKTIVEN ZUKUNFT FUTURE PERSPEKTIVEN SCHAFFEN SCHAFFEN

16 Welcome address 2016 highlights Key financial data 2016 Overview of property portfolio and project pipeline New initiatives, strategy and projections Annual General Meeting outlook and Q&A Zurich 2 March results 16

17 Key financial data 2016 Rental income increased by 1.6 percent Net rental income performance in CHF million Facts «Package sale» of a portion of the portfolio to the Swiss Prime Investment Foundation in 2015, reduced rental income in 2016 Divestments Changes to existing properties Modifications modernisations Acquisitions 0.9 Completed projects Differential arising from additionally leased properties (AL*) Impact of changes to existing properties of some -1% only demonstrates high quality of entire property portfolio Assisted Living s acquisition of SenioCare added a substantial CHF 25.1 million to net rental income Net rental income FY 2015 Net rental income FY 2016 Zurich 2 March results 17

18 Key financial data 2016 Operating income incresed Operating income by segment in CHF million * past service costs Retail Assisted Living Real Estate Operating profit by segment in CHF million Real Estate Retail Assisted Living Consolidation Operating profit (reported) Adjustment effects IAS 19* Revaluation gains Condominium sales Operating profit (adjusted) Facts Operating income increased principally as a result of acquisitions at Assisted Living Real Estate and Retail revenues stable Reduction in conversion rate under IAS 19 cut personal costs by CHF 37.5 million Substantial revaluation gains and profits from disposals recorded in 2015 Major acquisition/ integration costs at Tertianum in 2016 Zurich 2 March results 18

19 Key financial data 2016 Profit excluding revaluation effects higher than in 2015 Swiss Prime Site Group income statement in CHF million Operating income Revaluations Income from associates Net result from investment property sales Operating expenses Operating profit (EBIT) Financial expenses Financial income Income tax expenses Profit (including minority interests) Profit excluding revaluation effects Facts Operating income rose 5.5% Profit from revaluations demonstrates high portfolio quality Higher operating expenses attributable to acquisitions Optimisation of financing structure had positive impact on financial expenses Income tax expenses in line with projections Profit excluding revaluation effects rose by 1.4% Zurich 2 March results 19

20 Key financial data 2016 Property portfolio successfully expanded Property portfolio (at fair value) in CHF million Facts Divestments Other existing properties Other building land Completed projects Transformation & modernisation projects Acquisitions Acquisition of two new properties (net) brings portfolio total to 184 properties Five properties acquired (with a fair value of CHF million at year-end 2016) Three properties sold (with a fair value of CHF 59.9 million at year-end 2015) Overall value of existing portfolio increased due to market climate, enhanced income levels, investments and high quality of the properties Fair value FY 2015 Fair value FY 2016 Further reduction in vacancy rates projected Zurich 2 March results 20

21 Key financial data 2016 Sound equity ratio of 46.6 percent Shareholders equity in CHF million Revaluation of owner-occupied properties* Convertible bonds Pension fund revaluation* 0.2 Miscellaneous Facts Dividend of CHF 3.70 per share distributed in April 2016 Increase in revaluation gains on owneroccupied properties million new shares issued following convertible bond conversions Dividend distribution Profit, including minority interests ROE within long-term target range Shareholders equity FY 2015 Shareholders equity FY 2016 * after deferred taxes Zurich 2 March results 21

22 Key financial data 2016 Financing for the long term Financing structure in CHF million Other LT debt Convertible Mortgages 3.5 Long-term loans Straight bonds Financial liabilities Ø interest rate (in %) Ø maturity (in years) Loan-to-value (in %) in CHF million Short-term Long-term Others Total Facts Financing structure optimisation had positive impact on average liability interest rate (-35 basis points) Maturity profile lengthened to benefit from current interest rate levels (+0.1 year) Optimal 44.4% loan-to-value ratio is inside target range Zurich 2 March results 22

23 WIR WE LEBENSRÄUME SCHAFFEN CREATE SCHAFFEN LIVING LEBENSRÄUME SPACES ZUKUNFT GESTALTEN

24 Welcome address 2016 highlights Key financial data 2016 Overview of property portfolio and project pipeline New initiatives, strategy and projections Annual General Meeting outlook and Q&A Zurich 2 March results 24

25 Property portfolio and project pipeline Marked increase in rental income Vacancy rate cut Real estate portfolio Vacancy rate Total (in CHF million) of which under construction Number of projects of which new building projects 4 7 Rental income Net property yield Property sales result (net) Comments Rental income increased despite challenging market environment Average sales achieved premium of some 25% over market value Comments Vacancy rate cut significantly thanks to high quality of investment properties and professional approach to portfolio management Objective: to cut vacancy rate further in 2017 Zurich 2 March results 25

26 Property portfolio and project pipeline Balanced maturities Contractual end of rental relationship in % of net rental income (Real Estate business field as of 31 December 2016) 10 years 23.7% 9 years 8 years 2.5% 2.9% 7 years 4.1% 6 years 5 years 5.2% 5.3% 4 years 13.9% 3 years 11.5% 2 years 9.2% 1 year 11.5% 0 year 10.2% Zurich 2 March results 26

27 Property portfolio and project pipeline Attractive, well-diversified portfolio Portfolio by region Δ Zurich 0%P 42% 2 Geneva -1%P 21% Portfolio by type of use Δ Offices 1%P 40% 2 Retail -1%P 33% Northwestern Switzerland 0%P 14% 4 Berne 0%P 9% 5 Central Switzerland 2%P 7% 6 Eastern Switzerland -1%P 5% 7 Southern Switzerland 0%P 1% 8 Western Switzerland 0%P 1% Assisted living 0%P 6% 4 Cinemas/restaurants 0%P 6% 5 Car parks 0%P 6% 6 Warehouses 0%P 5% 7 Residential 0%P 1% 8 Other 0%P 3% Comments Comments German-speaking Switzerland remains key strategic region in portfolio Geneva office expanded in readiness for projected growth With over 2/3 of portfolio, office and retail space remain the key property type Nearly 80% of the portfolio is in the most attractive quadrant of the Wüest Partner market matrix Zurich 2 March results 27

28 Property portfolio and project pipeline With Motel One new hotel chain established in Switzerland Highlights Innovative German hotel chain as new partner Focus on design and budget Concept creates attractive new market segment Excellent initial venue opened in Basel in July 2016 Second hotel now being realised in Zurich (opening mid-2017) Zurich 2 March results 28

29 Property portfolio and project pipeline Further development of «Schönburg Berne» Highlights Comprehensive project to generate significant added value for the city, the district and residents of Schönburg Trendy budget design hotel chain Prizeotel on board as strong project partner Retail spaces (Coop) and fitness centre complement overall design Building permit received (02/17), construction to commence in 2017 Zurich 2 March results 29

30 Property portfolio and project pipeline NZZ Print site ready to greet a promising new future Highlights Project will create a centre for research, enterprise and the transfer of knowledge Zühlke is both strong anchor tenant and ideal partner for this site Perfect mix between established businesses, start-ups and events Urban appeal of location and flexibility of building are important assets Zurich 2 March results 30

31 Property portfolio and project pipeline Developments at Stücki Basel point the way to the future Highlights Convincing overall concept Arena Cinemas is ideal partner for leisure segment Dependence on pure retail sector reduced Link to science park will generate additional footfall and synergies Project implementation scheduled for Zurich 2 March results 31

32 Property portfolio and project pipeline Bank building finds new life as news headquarter Highlights Redevelopment and comprehensive renovation of a building from the 1970s Minergie standard Excellent location in the city of Zurich Ringier Axel Springer Switzerland AG signed up as anchor tenant Occupancy rate > 90% Zurich 2 March results 32

33 Property portfolio and project pipeline New purchases with attractive potential BAAR ZUGERSTRASSE 57 LUCERNE LANGENSANDSTRASSE 23 GENEVA RUE DES ALPES 5 BAAR GRABENSTRASSE 17 / 19 LUCERNE SCHWEIZERHOFQUAI 6 Fair value in CHF 62.1 million Fair value in CHF 51.8 million Fair value in CHF 27.0 million Fair value in CHF 31.2 million Fair value in CHF 78.1 million Zurich 2 March results 33

34 Property portfolio and project pipeline Phases of realisation by project Zurich 2 March results 34

35 WE OFFER NEW PERSPECTIVES

36 Welcome address 2016 highlights Key financial data 2016 Overview of property portfolio and project pipeline New initiatives, strategy and projections Annual General Meeting outlook and Q&A Zurich 2 March results 36

37 New initiatives, strategy and projections New organisational structure aligned with the market Group management CEO René Zahnd CFO Markus Meier Peter Lehmann Oliver Hofmann Franco Savastano Luca Stäger Business field CEO Peter Lehmann CEO Oliver Hofmann CEO Franco Savastano CEO Luca Stäger CEO Martin Gut Segment Real Estate Services Assisted Living Real Estate Zürich 2. März 2017 Resultate Geschäftsjahr

38 New initiatives, strategy and projections Swiss Prime Site Group s 4 key strategic priorities $ Investment in top-quality properties with attractive yields and potential for capital appreciation Focus on floorspace for commercial use and development projects in a variety of regions Income diversification through development of existing real-estate-related business fields and the synergies they generate Innovation, sustainability and digitalisation as the key drivers of further heathy growth Zurich 2 March results 38

39 New initiatives, strategy and projections Real Estate continues to develop the «Prime» portfolio Group effects Investment in development projects Generating development profits from the project pipeline Increasing income from existing portfolio Raise market profile Focus Vacancy rate % Modernisations and transformations Creating new living spaces Enhance sustainable income growth from unique quality portfolio Use «Prime» requirements with regard to building quality, location, interior features and building flexibility to achieve gradual independence from market cycles Large-site development know how will be major advantage in achieving further market focus Zurich 2 March results 39

40 New initiatives, strategy and projections Wincasa is a key source of market intelligence Income growth and diversification Developing new sources of income Intensifying ties to clients Further increasing assets under management Focus Operating EBIT margin ~ 15% Enhancing employee identification with company Digital leadership Group effects Broad know how and substantial expertise in real estate services represents key opportunity in saturated markets National and geographic expansion raises market profile Strong, sustainable profitability and efficient processes Utilising smart data for innovations at Group level Front runner in the field of digitalisation Zurich 2 March results 40

41 New initiatives, strategy and projections Jelmoli, largest portfolio asset, contributes important retail know how Group effects Increasing share of premium market Enhancing brand profile More services and items per sales ticket Focus Revenue growth %* Targeting economies of scale Strong, independent presence in one of the largest and most important real estate segments (Retail) Developing and transferring know how across Swiss Prime Site Active, strategic management of the principal property in the portfolio Attractive, stable rental income E-commerce accelerating growth Raising property values * from Jelmoli-operated stationary floorspace Zurich 2 March results 41

42 New initiatives, strategy and projections Assisted Living provides demographic and political opportunity Group effects Enhancing care expertise and employee development Creating service ecosystems Integration of the units acquired in 2016 Clear brand strategy initiated Focus ROIC ~10% Prioritising project development (PPP) Implementation of new technologies Demographic evolution of society is one of the key transformations of our time Geriatric and care sector has extremely close links to core real estate business «PPP Private Public Partnership» model provides future template for optimal cost sharing within the community Major opportunity for market leaders Swiss Prime Site and Tertianum to gain additional market share (privately owned units account for ~5% of geriatric/care sector) Zurich 2 March results 42

43 New initiatives, strategy and projections Solutions offers 1st class real estate asset management for 3rd parties Group effect Portfolio of Swiss Prime Investment Foundation (SPIF) expanded Focus on residential properties Launching additional investment products Acquisition of asset management mandates Focus Attractive investment yield Successfully positioned in market Capitalising on acquisition opportunites Good access to residential sector, which is not in scope of Swiss Prime Site Further income diversification requiring limited capital commitment Helps to project Group image, makes new investment product know how available throughout Group Large, attractive portfolio of institutional clients (~250 pension funds) Zurich 2 March results 43

44 New initiatives, strategy and projections Progress with core sustainability initiative First stakeholder panel in April 2017 Stakeholders Financial excellence business plan congruent with sustainabilty roadmap Leadership Training employee development programme in 2017 First sustainability report (2017) Attractive working environment Compliance and social commitment Long-term targets for energy use and consumption of electricity and water at properties in our portfolio Protecting the environment Sustainable investments and services Holistisic approach to investments, as demonstrated by comprehensive Schönburg Berne modernisation Zurich 2 March results 44

45 New initiatives, strategy and projections Change in accounting standards from IFRS to FER from 2017 Balance sheet: owner-occupied properties to be reclassifed as investment properties Key effects on balance sheet and income statement Balance sheet: goodwill/intangible assets and pension provision obligations to be eliminated Income statement: no adjustment to pension obligations required (IAS 19 ceases to apply) Income statement: no depreciation on owner-occupied properties and client base Reporting New semi-annual reporting calendar Still high transparency Zurich 2 March results 45

46 GUIDANCE GUIDENCE

47 New initiatives, strategy and projections Guidance for 2017 Top line Higher operating income Profitability Enhanced operating profit (EBIT) excluding revaluations Vacancy management Lower vacancy rates Portfolio Further growth through project completions (Etzelgut and Meyrin) and new purchases Dividend policy Attractive distribution to be maintained Zurich 2 March results 47

48 Welcome address 2016 highlights Key financial data 2016 Overview of property portfolio and project pipeline New initiatives, strategy and projections Annual General Meeting outlook and Q&A Zurich 2 March results 48

49 Annual General Meeting outlook and Q&A Outlook 2017 Annual General Meeting Board of Directors All Board members standing for re-election for a further year, except Dr. Bernhard Hammer Compensation model New remuneration model for executive management introduced (including LTI) Dividend Unchanged dividend of CHF 3.70 recommended to shareholders Zurich 2 March results 49

50 Markus Waeber Investor Relations Mladen Tomic Media Relations Head Investor Relations Business: Mobile: Head Corporate Communications Business: Mobile: Corporate calendar Headquarters Zurich Office Geneva Office Annual General Meeting April 2017 Results 1st half August 2017 Swiss Prime Site AG Swiss Prime Site AG Swiss Prime Site AG Frohburgstrasse 1 Prime Tower, Hardstrasse , Rue du Rhône CH-4601 Olten CH-8005 Zurich CH-1204 Geneva Tel.:

51 Disclaimer All the information contained in this presentation is provided for information purposes only and does not constitute a basis for any investment decision or a recommendation to buy Swiss Prime Site AG securities. The contents of this presentation were carefully prepared and researched. Notwithstanding this, Swiss Prime Site AG makes no guarantee that the information presented here is correct, complete or current. Furthermore, Swiss Prime Site AG accepts no liability for any direct or indirect losses, liability claims, costs, demands, expenses or damages, whatever their nature, arising from or connected with the use of all or part of the information contained in this presentation. This presentation can contain statements relating to the future using expressions such as «believes», «intends», «estimates», «assumes», «expects», «forecasts», «plans», «can», «could», «should» or similar terms. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which can result in the actual results, financial situation, evolution or performance of Swiss Prime Site AG differing substantially from that directly or indirectly referred to in those forward-looking statements. Given these uncertainties, potential investors should not rely on these forward-looking statements. Swiss Prime Site AG cannot guarantee that the opinions and forward-looking statements contained in this presentation prove to be correct. For that reason, Swiss Prime Site AG assumes no responsibility or duty to update these forward-looking statements publicly or to adapt them to reflect future events, developments or expectations relating to Swiss Prime Site AG to which these forward-looking statements originally referred.