CORESTATE Capital Holding Company presentation

Transcription

1 CORESTATE Capital Holding Company presentation September 2017 Page 1 CORESTATE Capital Holding S.A.

2 Disclaimer This document contains confidential information and is being given on a confidential basis. It may not be distributed or released, directly or indirectly, in or into the United States or any other jurisdiction in which the distribution or release would be unlawful. This document is being presented solely for informational purposes and should not be treated as giving investment advice. It is not intended to be (and should not be used as) basis of any analysis or other evaluation. All and any evaluations or assessments stated herein represent our personal opinions. We advise you that some of the information is based on statements by third persons, and that no representation or warranty, expressed or implied, is made as to, and no reliance should be place on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein. Certain statements contained herein may be statements of future expectations and other forward-looking statements that are based on our current personal views and assumptions and involve known and unknown risks and uncertainties that may cause actual results, performance or events to differ materially from those expressed or implied in such statements. Neither CORESTATE Capital Holding S.A. nor any other person assumes any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or the statements contained herein as to unverified third person statements, any statements of future expectations and other forward-looking statements, or the fairness, accuracy, completeness or correctness of statements contained herein, or otherwise in connection with this presentation. This publication constitutes neither an offer to sell nor a solicitation to buy securities. The securities of CORESTATE Capital Holding S.A. may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the Securities Act ). The securities of CORESTATE Capital Holding S.A. have not been, and will not be, registered under the Securities Act. Page 2 CORESTATE Capital Holding S.A.

3 Executive management team Sascha Wilhelm CEO Lars Schnidrig CFO Thomas Landschreiber CIO & Co-Founder Key Responsibilities: Strategy Organisation & corporate functions Equity raising and client relations Real estate management services Human resources Risk management Key Responsibilities: Financing Investor Relations Accounting and consolidation Controlling and reporting Tax and investment structuring Key Responsibilities: Deal sourcing Acquisition structuring Transaction execution Asset disposals Experience: >14 years of real estate investment and general management experience Selected prior experience: Advisor to Cerberus Capital Management Experience: 17 years of CFO experience on board / senior management level Selected prior experience: Vonovia Finance B.V., Vonovia SE, HypoVereinsbank AG Experience: >27 years of executing real estate transactions Selected prior experience: Cerberus Capital Management and UniCredit Page 3 CORESTATE Capital Holding S.A.

4 CORESTATE at a Glance A leading fully integrated Real Estate Investment manager Comprehensive local and international footprint Assets under management (AuM) of c. 20 bn (1) Main offices Secondary offices Total transaction volume of more than 30 bn since inception 2006 Diversified offering across asset types, matching needs of different investor types (institutional, family office and retail) London Essen Solingen Luxembourg (HQ) Hanover Zurich Hamburg Neu-Isenburg Pullach Baar Wollerau Berlin Magdeburg Leipzig Gera Frankfurt Excellent access to assets through strong sourcing capabilities (current pipeline of 4.9 bn) Madrid More than 12 bn (2) equity raised from large and broad client network Singapore More than 470 FTEs in 29 offices in 6 countries with direct access to local real estate markets Covering the Real Estate Investment Lifecycle Phase 1 Deal Structuring/Acquisition Phase 2 Hold Period Phase 3 Exit/Realization Expansion strategy from a solid basis in Germany across Europe enhances our long-term growth profile Transaction-related fees Investment Management Fees Success-based fees Note: The key figures of the Hannover Leasing Group (HL) and Helvetic Financial Services AG (HFS) have already been taken into account in the corporate figures of the CORESTATE Group on this page, if not indicated otherwise. (1) Forecast end of 2017 including HL and HFS. (2) Since inception in 2006 and including HL and HFS. Page 4 CORESTATE Capital Holding S.A.

5 Transformative acquisitions follow more than 10 years of building up a platform Evolution of CORESTATE in recent years Transaction (3) volume 1, , ,434 ( m) FTEs AuM ( bn) Aggregate Revenues ( m) (2) Founded in 2006 by R. Winter and T. Landschreiber IPO in October (3) (1) Acquisitions of Hannover Leasing and HFS closed in July 2017 >230 (1) Comments CORESTATE has built its operating and financing platform for more than 10 years The business model is based on the in-depth integrated Real Estate expertise across the investment lifecycle Unique network amongst market participants including local level. Competitive advantage in terms of sourcing and managing Real Estate Solid foundation to be leveraged for further growth E 2018E Organic growth and going public Transformation (1) Current management guidance. (2) Aggregate Revenues & Gains include Revenue from Real Estate Investment Management, Share of Profit and Loss from Associates and Joint Ventures, and Total Income from Real Estate Operations / Warehousing. (3) As per 30 June 2017 including HL and HFS. Page 5 CORESTATE Capital Holding S.A.

6 Continued share price outperformance Share price performance 2017YTD (1) Shareholder structure (in %) Jul. 2017: Announcement HFS acquisition Increase of 2017E earnings guidance to 85-90m Dec. 2016: Announcement HL acquisition 23 Feb. 2017: c. 23m capital increase 8 May 2017: Increase of 2017E earnings guidance to 36-37m 1 Jul. 2017: Closing HL acquisition +151% 5 Jul. 2017: Closing HFS acquisition c. 345m capital increase (2) +31% S. Ketterer 9% N. Ketterer 8% M. Graf zu Hoensbroech 9% Free Float 41% 100 Flygon Holding LLC 29% Management 4% 50 Total number of shares: 20,992,755 CORESTATE (CCAP) SDAX Company envisages to change listing segment to Prime Standard of Frankfurt Stock Exchange (current listing in Scale segment) Source: Factset and company information. (1) Dividend-adjusted, re-based to starting value of 100%, share price data from 30 December 2016 to 10 August (2) Based on 30 June, 2017 CCAP closing price of 47 per share issued against contribution in kind of all of the shares in Helvetic Financial Services. Page 6 CORESTATE Capital Holding S.A.

7 CORESTATE has reached critical size in terms of AuM Overview of selected European listed Alternatives and Real Estate Investment Managers Comments AuM (in billions) Market capitalisation (1) (in billions) EBITDA 2017E (2) (in millions) CORESTATE s AuM base reached critical size to develop a fully institutionalised business (3) (mid-point guidance) Sufficiently large AuM facilitating broad market coverage and diversification Market capitalisation exceeding 1bn providing attractive acquisition currency and potential to significantly increase trading liquidity subject to higher free float na 36 (4) Considering only real estate, CORESTATE already amongst largest listed managers in Europe (5) Real Estate Diversified Alternative Assets Source: Company information. (1) Market capitalization from Bloomberg as of 23 August 2017; FX rates as at 23 August (2) Factset as of 2 September 2017; management guidance for CORESTATE. (3) Aviation constitutes 7% of total AuM in 2017E. (4) Company information. (5) DIC Asset runs hybrid model, i.e. 1.7bn own portfolio, 1.3bn funds and 0.4bn other investments as of 30 June Page 7 CORESTATE Capital Holding S.A.

8 CORESTATE investment highlights 1 Fully integrated real estate investment manager with 20bn AuM and diversified product offering 2 Strong recurring fee income streams providing stability 3 Unique sourcing capabilities driving superior organic AuM growth 4 Diversified investor base with increasing target allocation to real estate providing sustainable fundraising base 5 Scalable platform with track record of external growth 6 Strong profitability and dividend capacity Page 8 CORESTATE Capital Holding S.A.

9 1 Fully integrated investment manager with diversified product offering AuM break down by asset type (2017E) Other (2) (run-off) Aviation 3% Real estate debt products 26% 25% AuM: 20bn (1) 46% Real estate equity products Comments Clear focus on real estate Broad range of asset classes providing flexibility and diversification Aviation business profitable and with 3.9bn fund raising track record Other asset types consisting of non strategic assets in run-off mode after acquisition of Hannover Leasing AuM break down by capital type (2017E) Comments Debt/ Mezzanine 25% AuM: 20bn (1) 75% Equity Provide broader product offering and capture broader portfolio allocation Cross-selling opportunities HFS acquisition added mezzanine debt product (1) Includes external property management. (2) Others includes: media, life insurance and shipping assets. Page 9 CORESTATE Capital Holding S.A.

10 1 Fully integrated investment manager with diversified product offering (cont d) Illustrative value chain Selected KPIs Comments Sourcing, structuring, execution Fund & Asset Management 1,758 deals offered in 2016 alone; 66 acquisitions signed Assets under Management of 20bn (2017E) Fully integrated real estate investment manager ensuring control over the full value chain With its property- and facility management organisations CAPERA and UpArtments, CORESTATE has in-house capabilities setting the company apart from other market participants (in-house property manager with nationwide footprint) (in-house business apartment manager) Property & Facility Management Exit 1.9m sqm Gross Area under management (2016) In 2016 e.g. sale of a student home portfolio (to BVK) Total purchase price volume: 187.9m Further roll-out of CAPERA management to Hannover Leasing asset base As a strategic participation CAPERA holds minority interest in a Technical Facility Management provider Page 10 CORESTATE Capital Holding S.A.

11 2 Strong recurring fee income streams Predominant share of revenues is expected to be recurring Recurring Success based Revenue share Duration Types of fees Sourcing / Acquisition 0 6 months Acquisition Warehousing Large number of transactions leading to stable acquisition-related fees Warehousing properties converted into investment products, including on-boarding fee Potential Repackaging Investment / property management Target range: 85-90% years Asset management Couponparticipation fee Property management Investment and property management services throughout holding period providing a source of high quality recurring fees Coupon-participation fee through sustainable and significant excess returns of HFS product above hurdle rate Exit / realisation Target range: 10-15% 0 6 months Exit fees Capital gain and Promote Fixed exit fees at term-end Promote fees related to total cash return of investment Decreasing reliance on promote fees due to increased focus on institutional investors Page 11 CORESTATE Capital Holding S.A.

12 3 Unique sourcing capabilities driving superior AuM growth Superior deal sourcing network Deal sourcing scheme 2016 Agents Advisors Banks Property companies Servicers Insolvency receivers 1 Total deals offered: 1,758 Access approximately 1,500 agents, covering all regional sub-markets Local coverage with more than 10- year track record CORESTATE dedicated sourcing teams Residential, student housing and micro living Building granular network to all relevant major market participants since 2006 Retail Commercial Spain 2 Fit of investment criteria and priciples: 420 Highly structured investment process 3 Signing: 66 (1) Predominant part of sourcing in narrow range around moderate average deal value (1) In 2017 YTD, 45 deals have been already signed. Page 12 CORESTATE Capital Holding S.A.

13 3 Strong acquisition pipeline provides visibility on near-term organic growth Development of CORESTATE acquisition pipeline Comments (in bn) 5.7bn, thereof - 12% in exclusivity - 15% in LOI/due diligence - 73% under review/ identified 5.7 Large, visible and diversified pipeline Particular importance of pipeline for growth in current market environment 3.2 Growth of pipeline to 5.7bn from 3.2bn through acquisition of HL Pre HFS/HL acquisitions Post HL acquisition (1) (1) As of 31 August Page 13 CORESTATE Capital Holding S.A.

14 4 Corestate increasingly targets institutional investors Break-through achieved in accessing institutional investor base Recent fundraising success provides equity for next growth steps Break-down of equity raising Asset class Investor Seed volume ( m) Target volume ( m) 45% Micro living Multiple investors % 88% 95% 81% High street retail Bavarian pension institution 700 2,000 44% 28% Diversified German life insurer % 12% 11% 5% 4% Alignment Investment Semi-Institutional Institutional Residential Multiple investors CORESTATE has successfully transformed its investor base to a highly diversified footprint Total 770 3,000 Page 14 CORESTATE Capital Holding S.A.

15 4 Investors increasingly seeking for more exposure to Real Estate Global Real Estate AuM (1) (USD in billions) 2, , Institutional investors allocations to real estate by type (2) 9.7% 10.4% 9.8% 10.3% 10.4% 8.3% 8.1% 7.7% 6.8% 8.1% 9.1% 6.1% 5.7% 8.0% Public pension fund Superannuation scheme Private sector pension fund Sovereign wealth fund Endowment plan Insurance company Foundation Average current allocation Average target allocation Structural support from trends in target asset allocation towards alternative asset classes and particularly real estate (1) PwC Market Research Centre analysis based on Prequin, HFR and Lipper data. (2) Preqin Alternative Asset Outlook, H (survey with 49% North American, 33% European and 18% Rest of the World respondents). Page 15 CORESTATE Capital Holding S.A.

16 5 Upgrade of operating platform corporate setup established enabling further growth Illustrative platform overview Acquisition integration update CORESTATE Holding Criteria Support functions/shared services HR Billing HR Financing Shared Services IT Recruiting Accounting/Finance Corestate Hannover Leasing HFS IT Scalable platform able to integrate additional assets at limited marginal costs Introduction of state of the art SAP infrastructure Operations Combination of experienced and stable management team with additional high quality new hires in the organisation Centralisation of corporate functions, but flexibility at the front Kicked off In progress - on track Completed Page 16 CORESTATE Capital Holding S.A.

17 5 Clear acquisition criteria to facilitate disciplined growth path Acquisition criteria Adds c. 4.3bn AuM Adds c. 11.6bn AuM Strategic fit (e.g. new product capabilities, institutional footprint, internationalisation, cross-selling) Adds Mezzanine/debt fund product Broadens investor base Suitable in regulatory environment Strengthens expertise in office properties Broadens investor base Combined servicing platform Cost synergies Focus on recurring fees Stability through unique positioning of product creating sustainable returns Majority of fees is recurring EPS accretive Increase net income guidance Path to near-term increased contribution of high quality earnings stream Criteria fulfilled Criteria fulfilled significantly Highly significant contribution Page 17 CORESTATE Capital Holding S.A.

18 5 Ample room to grow in fragmented European sector landscape acquisition opportunities for CORESTATE High degree of fragmentation providing ample room for consolidation (1) Comments (Number of asset managers by size) > 30bn 10-30bn < 10bn 94 European real estate asset management market is fragmented there are over 90 asset managers with AuM below 10bn (1) Financial institutions are refocusing on their core business and are considering the sale of non-strategic assets Real Estate managers (Concentration of Real Estate AuM by top 5 managers) (2) Average AuM ( bn) Top 5 Managers 16% High and rising regulatory costs impose a meaningful burden on smaller asset managers that lack scale Client demand and market requirements are becoming increasingly sophisticated, giving larger asset managers a competitive edge Rest 84% (3) (1) Property Funds Research and Institutional Real Estate Inc., Global Investment Managers 2016 ; Patron Capital Partners, Global Investment Managers (2) Includes short-term, intermediate-term, long-term, multisector, high-yield, bank-loan and retirement-income categories. Page 18 CORESTATE Capital Holding S.A.

19 6 Strong profitability and dividend capacity Aggregate revenues Adjusted EBITDA (in million) >230 (in million) (2) (1,2) > (1) 2017E Guidance Pre Acquisitions 2017E Guidance Post Acquisitions 2018E Guidance 2017E Guidance Pre Acquisitions 2017E Guidance Post Acquisitions 2018E Guidance Adjusted net income Commentary (in million) (1) (1,2) >110 Growing revenues with high share of recurring income, strong margins and capital light business model (= high cash conversion) creating basis for attractive cash returns 2017E Guidance Pre Acquisitions 2017E Guidance Post Acquisitions 2018E Guidance Dividends: target payout ratio of 50% Strong cash flow generation and dividend capacity (1) Adjusted for one-off items (i.e. M&A transaction-related expenses, etc.). (2) Post acquisition of Hannover Leasing and Helvetic Financial Services, which are consolidated from Q onwards. Page 19 CORESTATE Capital Holding S.A.

20 Key financials Page 20 CORESTATE Capital Holding S.A.

21 H Key Highlights (1/2) Company Development: Increased AuM to c. 20bn (1,2) through transformational acquisitions of Hannover Leasing (HL) and Helvetic Financial Services (HFS) Substantially broadened product offering across real estate equity and mezzanine debt Sourcing pipeline increased to 4.9bn (2), enabling further organic growth Assets Under Management (including HL and HFS) billion 3.5 (3) 11.6 (1) 4.3 c. 20 H HL HFS Post Acquisitions (1) (1,2) Operations: Significantly increased transaction volume through new and exclusive investment mandates Organic AuM growth of 1.2bn on a yearon-year basis Continued focus on realising further synergies and growth opportunities post HL and HFS acquisition Sourcing Pipeline billion 3.2 Pre Acquisitions HL & HFS (2) Post Acquisitions (1) Forecast for year-end 2017 including HL and HFS. (2) Post acquisition of Hannover Leasing and Helvetic Financial Services. (3) As of 30 June. Page 21 CORESTATE Capital Holding S.A.

22 H Key Highlights (2/2) Reported figures do not include the HL and HFS acquisitions, unless indicated otherwise Financials: Aggregate revenues grew by 116% organically to 48.6m Strong growth of recurring fee revenues Achieved high organic growth across key (adjusted) profitability metrics Dividend payout of 1.00 per share (70% of adjusted 2016A net income) Aggregate Revenues (1) million x 48.6 H H Recurring Fee Revenues (2) million x 23.3 H H Guidance: Increased 2017E guidance during H for the second time since the 2016 financial report Increase in guidance primarily driven by contributions from HL and HFS acquisitions Adj. EBITDA (3) million x 26.0 Adj. Net Income (3) million x 22.8 H H H H (1) Include Revenue from Acquisition Related Fees, Asset and Property Management, Realised Promote Fees, Share of Profit and Loss from Associates and Joint Ventures, and Total Income from Real Estate Operations / Warehousing. (2) Recurring fee revenues include revenue from Acquisition Related Fees and from Asset and Property Management. Adjustment of definition used on page 11. (3) Adjusted for one-off items (i.e. M&A transaction-related expenses, etc.). Page 22 CORESTATE Capital Holding S.A.

23 Appendix Page 23 CORESTATE Capital Holding S.A.

24 Income Statement Comments 1 (k ) unaudited unaudited Revenue from Acquisition Related Fees 9,073 3,129 Revenue from Asset and Property Management 14,263 9,806 1 Strong increase in acquisition related fees due to successful placement of Highstreet retail as well as residential asset based investment products Revenue from Promote Fees realised 13,140 (191) 2 Revenue from Real Estate Investment Management 36,476 12,744 Management expenses (16,351) (12,116) 2 Real estate investment management revenues providing an attractive and stable source of earnings Earnings from Real Estate Investment Management 20, Net Rental Income 1, Revenue from Service Charges Net Gain from Selling Property Holding Companies 5,359 8,543 Total Income from Real Estate Operations / Warehousing 6,865 8,715 3 Increase in total expenses reflects expansion of CORESTATE s property management business and can predominantly be attributed to real estate investment management, acquisition related, and other one-off expenses Expenses from Real Estate Operations / Warehousing (935) (84) Earnings from Real Estate Operations / Warehousing 5,930 8,631 Earnings from Alignment Capital 5, General, Administrative and Other Expenses (8,664) (3,261) EBITDA 22,659 6,773 Depreciation and Amortisation (337) (167) EBIT 22,322 6,606 Net Financial Income / (Expenses) (2,047) (1,847) EBT 20,275 4,759 Income Tax Expenses (620) (1,104) Net Profit / (Loss) for the Period 19,656 3,655 Attributable to equity holders of parent company 19,443 3,554 Attributable to non-controlling interests Page 24 CORESTATE Capital Holding S.A.

25 Balance Sheet (1/2) Assets Comments 1 (k ) Non-Current Assets unaudited audited Property, Plant and Equipment 1,358 1,235 Intangible Assets 1, Investment in Associates and Joint Ventures 40,486 35,747 Other Financial Instruments 4,199 2,217 1 Net increase in Investment in Associates and Joint Ventures by 13.3% due to: Project Highstreet: Real estate portfolio comprising retail properties in mid-sized German cities with a targeted aggregate gross asset value of up to 210m Project Liver: Acquisition of the Grade A Royal Liver Building office building in Liverpool Long-term Loans to Associates 656 2,493 Deferred Tax Assets 2,696 2,363 Total Non-Current Assets 50,973 44,985 Current Assets Asset management mandates and sale of retail portfolios to funds of the Bayerische Versorgungskammer (90 properties in German cities and sub-portfolios acquired as part of HIGHSTREET projects) 2 Advance Payments for Property Purchase Prices 1,900 1,305 Inventories 41,133 15,905 2 Warehousing transfer of commercial property holding subsidiaries to Project HIGHSTREET VII in June 2017 Receivable from Joint Venture & Associates 7,305 9,294 3 Trade Receivables 11,185 5,271 Other Current Assets 10,519 5,636 3 Increase in Receivables due to higher extent of business 4 Cash and Cash Equivalents 61,777 48,209 Total Current Assets 133,818 85,619 4 Increase in cash holdings by 28.1% due to strong operating performance and new equity issuance Total Assets 184, ,605 Page 25 CORESTATE Capital Holding S.A.

26 Balance Sheet (2/2) Liabilities & Equity Comments 1 1 (k ) Equity unaudited audited Share Capital 1, Other Reserves 94,287 69,699 1 Issuance of 996,318 new shares (c.8% of share capital) through placement by way of an accelerated book building process in February Share count as of 30 June 2017: 13,606,999 2 Net Profit / (Loss) for the Period 19,443 15,396 Subtotal Capital Accounts of shareholders of parent company 114,751 86,040 Non-controlling Interests Total Equity 115,337 86,446 2 Ongoing strong momentum in business activities and earnings providing a further boost to the CORESTATE s equity capital Non-Current Liabilities Long-term Financial Liabilities to Banks 13,983 14,126 Net Employee defined Benefit Liabilities Loan facility for the acquisition of real estate assets in Europe 3 Other non-current Liabilities 29,567 9,730 Total Non-Current Liabilities 43,643 23,957 Current Liabilities 4 Increase in trade payables due to higher extent of business activities Short-term Financial Liabilities to Banks 2,629 4,004 Short-term Liabilities to Associates Trade Payables 11,966 7,266 Current Income Tax Liabilities 1,085 1,050 Other Current Liabilities 9,848 6,934 Total Current Liabilities 25,812 20,202 Subtotal Liabilities 69,455 44,159 Total Equity and Liabilities 184, ,605 Page 26 CORESTATE Capital Holding S.A.

27 Cash Flow Statement Comments (k ) unaudited unaudited Earnings before Taxes (EBT) 20,275 4,759 Adjustments: Depreciation and Amortisation Share of results from Associates and Joint Ventures (5,255) (1,031) Total Other Adjustments Total Adjustments (4,252) (763) Operating Cash Flows before changes in Working Capital 16,023 3,996 Changes in Working Capital: Net increase / (Decrease) from Inventories and Advance Payments (68,738) 2,963 Change in Receivables and Other Assets (non-investing activities) (53,500) 8,353 Changes in Liabilities that are not attributable to Financing Activities 113,785 12,165 Total changes in Working Capital (8,453) 23,481 Cash Flows from Operations 7,570 27,477 Income Taxes Received / (Paid) (760) (403) Net Cash Flows from Operating Activities 6,810 27,075 Inflow / (Outflow) for Alignment Capital 517 (5,332) Purchases and Additions of Tangible and Intangible Assets (738) (322) 1 2 Issuance of 996,318 new shares (c.8% of share capital) through placement by way of an accelerated book building process in February 2017 Dividend of 1 per share corresponding to dividend ratio of c.70% based on 2016 adjusted net profit 1 2 Net Cash Flows generated from / (used in) Investing Activities (222) (5,654) Net Proceeds from Issuance of New Share Capital 22,122 - Dividend Payments (13,659) - Sale / (Acquisition) of Non-controlling Interests - (108) Proceeds / (Repayment) of Loans and Borrowings (1,322) (7,485) Net Interest Received / (Paid) (161) (2,356) Net Cash Flows (used in) / from Financing Activities 6,980 (9,948) Net Increase in Cash and Cash Equivalents 13,568 11,473 Cash and Cash Equivalents at beginning of Period 48,209 12,447 Net Increase in Cash and Cash Equivalents 13,568 11,473 Cash and Cash Equivalents at end of Period 61,777 23,920 Page 27 CORESTATE Capital Holding S.A.

28 Preliminary pro forma balance sheet post Hannover Leasing and HFS acquisitions Preliminary Pro Forma Consolidated Balance Sheet as of Closing: c. 1,200m (1,2,3) Comments Transformational effect on balance sheet through acquisitions of HL and HFS 287 Other Liabilities (5) Goodwill (4) Alignment Capital Investments Other Assets (5) Own Real Estate Assets in Warehouse Cash & Cash Equivalents Growth of total balance sheet to 1.2bn on a preliminary pro-forma basis as per 30 June 2017 (including HL and HFS) compared to respective balance sheet size of 185m as per 30 June 2017 stand-alone Creation of significant goodwill in context of acquisitions of capital light targets HL and HFS Fragmented debt structure providing earnings upside potential through refinancing Almost 20% RoE based on around 460m book equity and 87.5m net income guidance (mid-point) for Corporate Debt (Recourse) 457 Non-Strategic Assets Financing (Non-Recourse) (5) RCF (Non-Recourse) Acquisition Debt (Non-Recourse) Acquisition Debt (Recourse) Equity (4) Assets Equity & Liabilities (1) Preliminary, subject to further review of Purchase Price Allocation (PPA), and Closing Accounts Mechanism for Hannover Leasing Transaction. (2) CCAP, including Hannover Leasing, Helvetic Financial Services. (3) Hannover Leasing based on December 31, 2016 accounts. (4) Based on June 30, 2017 CCAP closing price of 47 / Share. (5) Includes non-strategic products from Hannover Leasing to be reduced over medium term and resulting from historic leasing structures. Page 28 CORESTATE Capital Holding S.A.

29 Investor Contact CORESTATE Capital Holding S.A. CORESTATE Capital Group 4, rue Jean Monnet L-2180 Luxembourg corestate-capital.com IR Contact Alexander Groschke Phone: Page 29 CORESTATE Capital Holding S.A.