NAV CHF 266.69 as at 31.12.2002* CHF 287.12 as at 31.12.2001 before deferred taxes Security number 803 838 SWX symbol: SPSN No. 8, March 2003, with annual figures SWISS PRIME NEWS Annual report as at 31.12.2002 Pages 6 7 Top-floor conversion with vision Page 3 More sales space in the portfolio Pages 4 5 High spirits at the Messeturm Page 8 * As a result of the capital increase, comparison with the previous year s values is only partially possible Swiss Prime Site in the business year 2002 Property investment in perfect health In the business year 2002, Swiss Prime Site extended its property stock further and increased its rental income disproportionately. The company balance sheet is in perfect health and successfully withstood Stefan Mächler, President of the Board of Directors of Swiss Prime Site AG. the unfavourable stock market environment of this business year. The increase of the share capital of over 1 million new shares, carried out in autumn 2002, was successfully concluded. Thanks to the positive development throughout the business year 2002, the Board of Directors is proposing to the General Assembly of 29 April 2003 a reduction in the nominal value of CHF 10.00 per share. The repayment would correspond to a 4.29% cash yield (on the year-end price). On the stock market, Swiss Prime Site shares proved to be very stable and clearly beat the SWX IG Real Estate (TR) comparative index which fell by 5.80%. At the end of 2002, the shares closed at CHF 233.00. in the difficult market situation and have been downgraded by up to 52% on the stock market. The SWX IG Real Estate (TR) comparative index fell by 5.80% overall. One of the very few companies which were able to avoid this downwards trend was Swiss Prime Site, which in 2002 even recorded a slight positive yield of 0.03% (TR). With a market capitalisation of CHF 938.2 million (as at The Swiss property market is characterised by a difficult economic environment and increasing vacant of the index heavyweights on the 31.12.2002), Swiss Prime Site is one spaces. Several Swiss property investment company stocks have suffered rage volume of trade in Swiss SWX IG Real Estate Index. The ave- Prime Site shares increased notably compared to the previous year. Rental income increased by one quarter Swiss Prime Site also achieved a very convincing operating result for the business year 2002. In comparison to the previous year, the rental income increased by 25% to CHF 98 million, and this with a constantly good EBIT margin (before revaluation) of over 75%. The operating profit (EBIT, without revaluation) improved by 16.80% to CHF 75.1 million. The net profit (without revaluation effects 1 ) increased by 0.73% to CHF 41.2 million. Taking into account the non-cash-flow-relevant reva- With the addition of the Pizol-Center, the retail sales space of the Swiss Prime Site portfolio increased to about 68,000 m 2. luation effects 1, (CHF -6.2 million respectively CHF +17.4 million in the previous year), the net profit was reduced by 40.07% to CHF 35 million. In the past year, the property portfolio was expanded by 15.80%, breaking the two-billion-franc barrier in doing so. As well as investments made in existing new construction projects, the increase essentially results from the new acquisitions of the Pizol- Center in Mels-Sargans, the Under Höh rounding-off project in the Volkiland shopping centre in Volketswil and the office building in the Manessestrasse in Zurich. 1 Effects of revaluations (IAS 40) and the resulting deferred taxes
Constant quality pays off The strict attention to quality and the concentration on high-quality commercial buildings (office and retail space) are especially advantageous in a difficult economic situation. Thanks to the top-quality use-specific locations in select economic centres throughout Switzerland, sensible rental rates and financially solid tenants, the loss-of-earnings rate showed an insignificant increase to 3.67% after mid 2002. More than 57% of the rental contracts show a remaining term of more than six years and reflect the favourable maturity structure. Apart from the very solid Swisscom, the dependence on tenants from the telecommunications, media and IT sectors is low. The proportion of these sectors was lowered even further in 2002. Selective purchases in the business year 2002 led to the desired 29% increase in retail space to 18% of the total portfolio. Correspondingly, the share of office space fell from 67% to its current level of 64%. In all projects, renting was successful. In the Opus complex in Zug, rental contracts for 87% (phase 1) and 100% (first building of phase 2) of rental space were already secured by 1 February 2003. In the new Under Höh construction in Volketswil, 59% Proposal for an attractive reduction in nominal value of space was already rented by the reporting date, the figure reaching 60% for the Messeturm in Basel. The net property yield 2 for high quality of location and property was increased from 5.25% for the previous year to an excellent 5.31%. In the past year, we consequently turned down several offers to purchase parcels because they did not satisfy our quality criteria, the proposed prices of the sellers were not suitable and/or because the vacant spaces to be purchased would have interfered to too large an extent with the development of Swiss Prime Site. In the current economic environment, we want to hold true to our successful strategy of propertypicking. 2 Net yield = net rental income minus maintenance costs, loss of earnings, property owner costs (e.g. property taxes, water, caretaker, etc.) in relation to the market value at the end of the reporting period. Financing costs, tax on earnings and capital tax, company costs, extraordinary expenditure (cleaning, renovations), depreciation, allocation to reserves, etc. are not taken into account. Due to the positive development in the business year 2002, the Board of Directors is proposing a reduction in the nominal value of CHF 10.00 (+CHF 2.00) per share. The repayment would correspond to a cash yield of 4.29% (at the year-end price). As a result, Swiss Prime Site is also interesting to investors who value a high cash yield. An additional advantage of the reduction in nominal value for private Swiss investors is that there is no income tax caused. Successful capital increase in autumn 2002 In autumn 2002, in order to develop its market position in Switzerland and to be able to react quickly to strategically suitable market opportunities and interesting property offers, Swiss Prime Site incorporated an extra CHF 193 million in equity finance on the capital market. A bank syndicate, led by Credit Suisse First Boston and the Zürcher Kantonalbank (joint lead) and including Rüd, Blass & Cie AG, Bank Sarasin & Cie AG, Bank Julius Bär & Co. AG and Migrosbank, effected the capital increase in an extremely difficult stock market environment with great success. The shareholders, in accordance with their subscription rights, were offered one new share for every three shares held, at the advantageous subscription price of CHF 200.00. The asset-strength and the attractive payment yield of Swiss Prime Site AG has convinced both existing and new investors; a good 100 new shareholders came on board. Strict valuation principles As usual, Swiss Prime Site, in collaboration with Wüest & Partner, effected a critical revaluation of the property portfolio. The economic conditions have led us to a net reduction in the market value of CHF 3.3 million as at the end of 2002. The change is as follows: 22 properties were devalued by CHF 17.0 million due to the change in the economic situation. On the other hand, 14 other properties were revalued upwards by CHF 8.5 million, thanks among other things to new rental contracts and value increasing investments. The value of one property remained unchanged. New acquisitions provided first valuation profits of almost CHF 0.8 million. The completion of the first Opus complex in Zug created an added value of CHF 4.4 million. This is due to an improved rental situation and nonactivated financing costs. The influx of around CHF 193 million from the capital increase in autumn 2002 (see box) increased the shareholders equity to over CHF 1 billion, thus further strengthening the healthy situation of the company. With a shareholders equity ratio of 51% and a low portfolio risk, our finance structure is robust and advantageous. The inflow of funds was used for the acquisition of a shopping centre in Mels and the repayment of short-term loans. Nevertheless, the average debt financing costs as at the end of 2002 ran to only 3.56% (3.69% at end of 2001), and this for an average residual term of 2.9 years (3.3 years at end of 2001). In the currently favourable interest rate situation, we intend to increase the average residual term of the loans. Exemplary corporate governance and transparency A professional and high level of transparency is part of the basic principles of Swiss Prime Site. We are the only company which publishes all the relevant data right down to the level of individual properties. With regard to corporate governance, we are also among the very best of Swiss real estate companies. With the interim report as at 30.06.2002, Swiss Prime Site fulfilled the SWX Swiss Exchange Corporate Governance guidelines (DCG) ahead of time. The Finanz und Wirtschaft newspaper awarded us top scores with regard to transparency. On course in 2003 For 2003, we are also expecting a difficult economic environment, but are nonetheless not worried, thanks to the high quality of our portfolio. Swiss Prime Site will use the opportunities offered by the market to optimise the portfolio further. As is our custom, we will direct our attention to cash flow-relevant rental contracts while maintaining a streamlined and costefficient company structure. Earnings should allow us to pay the shareholders lasting attractive dividends or implement reductions in the nominal value which are advantageous with regard to tax. You can find a commentary of the property market at: www.swiss-prime-site.ch/ immomarkt Development of the property portfolio Market value 1999 to 2002 Financial report of Swiss Prime Site awarded In a survey carried out in 2002 by the European Public Real Estate Association (EPRA), Swiss Prime Site was awarded second place. The award for the best report for the business year 2001 went to IVG Immobilien AG in Bonn. The jury, consisting of analysts, accountants, investors and economic experts, assessed 72 financial reports according to transparency and respect of bestpractice recommendations in accounting standards. Among other things, the jury praised Swiss Prime Site for its clear and comprehensible evaluation practices. Market value in million CHF 2500 2000 1500 1000 500 0 Dec. 99 March 00 June 00 Sept. 00 Dec. 00 March 01 June 01 Sept. 01 Dec. 01 March 02 June 02 Sept. 02 Dec. 02 2
Photos: Patrick Ritschard, www.internet-loft.ch A platform has been constructed in front of the lowered dormer windows, giving the possibility for a work area with an enviable view over the sights of Zurich. Fraumünster post, Zurich Entirely new perspectives 105 years after its inauguration, the Fraumünster post is still impressive, thanks to its privileged location right on the Limmat and in the immediate vicinity of the town hall. The renovation of the top floor of the former Fraumünster post has opened up some entirely new perspectives: for the future tenant, as he has at his disposal a large open space with a unique view of the classical sights of Zurich; and for the lessor, because the expansion and flexibility of use maintain the long-term value of the property. completed. In the first phase, the restaurant fittings, together with the installations and dividing walls, were ripped out leaving one large room with a gracious ceiling. At regular intervals, the steel beams break the length of the room. The existing dormer windows on the Stadthausquai side were moved downwards slightly, still within the level of the roof. The renovation of the façade, which is protected as a listed building, was carried out in constant cooperation with the city authorities. The former Swisscom staff canteen on the top floor of the building on the In addition, the floor below the windows was raised and a platform corner of Stadthausquai and Fraumünsterstrasse did not lend itself to a was built, which acts as a work space pleasant work atmosphere. The space and from where an entirely new was effectively cut off from the outside world. Although the high dormer opened up. The area along the dormer perspective on the surroundings is windows let in light, they prevented windows has been transformed into visitors from looking out across the most attractive part of the room. Zurich s sights. Quite different from the four floors directly below, rented Maximum flexibility of use by Accenture. From those windows, The new distribution of the technology has been prepared, with the help the eye sweeps from the Münster bridge across the Grossmünster to the of a hollow floor, to such an extent Bellevue. If you lean out just a little, that the new tenants only need to pull you can even see Lake Zurich glinting the wires through and connect them. in the sun. Consequently, the room can quickly be transformed into cells or remain as City location made transparent a large, open-plan space. Workplaces Show the uniqueness of the location, can be set up everywhere. This flexibility contributes to the lasting main- emphasise the characteristic halftimbering, create a generous space tenance of the value of the property. with flexibility of use those were the The icing on the cake is the roof instructions for the people in charge terrace. The tenant has the option of of the conversions. Written, planned, exclusive use of the existing roof 3 terrace. The project for the stairs from the office to the roof has already been approved by the city authorities and can be undertaken at any time. The terrace, which is on the roof of the stairwell, offers a panorama that brings even dyed-in-the-wool Zurich people flocking to see. office. The postal vehicles, which required most space, were located on the Stadthausquai on the long frontage of an irregular rectangle. The short side on the Fraumünsterstrasse was reserved for letter post. The location of the main entrance was on Kappelergasse where the main hall, lightened by the seven large arched Post and Telegraph Building in the Tuscan Renaissance style The Fraumünster post is one of the properties of Swiss Prime Site since its purchase in April 2001. This striking office building, at the junction of openings, served the public with the counters for the various post and telegraph services, wrote the Swiss Construction Journal in August 1902 in honour of the new building. The construction costs per cubic meter Fraumünsterstrasse, Kappelergasse amounted to CHF 38.50. and Stadthausquai, was built between 1895 and 1898 by the architect Emil Schmid-Kertez. The style of the building is early Tuscan Renaissance. The large hall of the Post and Telegraph Building was sumptuously decorated and is today more reminiscent of a wealthy bank than a post The original main hall in the Fraumünster post, inaugurated in 1898, had cross vaults and was decorated in the Italian Renaissance style. The main hall shows that building materials were purchased all over the world, even 100 years ago. The pilasters were made from yellow limestone from Lommiswil SO, the side columns from red marble from Verona and the bases and capitals of the columns were in bronze from Munich. Photo: Repro Wolf-Bender
Pizol-Center, Mels SG Shop & Go The four-storey Pizol-Center contains 30 shops. They provide Swiss Prime Site with a net rental income of close to CHF 6 million per year. With the acquisition of the new shopping centre in Sarganserland, Swiss Prime Site increased its proportion of retail space considerably. The Pizol-Center in Mels has a market value of CHF 94.7 million and optimises the risk structure of the Swiss Prime Site portfolio. The main tenant is Coop. The 24 October 2002 was a milestone in Sarganserland and another the list of the 63 biggest Swiss shopping centres. optimisation of the Swiss Prime Site portfolio. Since this date, the Pizol- Outstanding strategic location Center has been operational and has The Pizol-Center is located in expanded the property stock of Swiss Prime Site with an attractive property covering a rental space of 19,400 m 2 Sarganserland and benefits from a catchment area which extends into the Chur region, the Principality of and possessing a healthy earnings Liechtenstein and the Walensee potential. The Pizol-Center is 13th on area. The 185-metre-long building complex, located right next to the A3 motorway, is impossible to miss. The Mels-Sargans motorway exit takes visitors straight to this shoppers Mecca. The nearby motorway intersection with the A13 also makes the Pizol-Center attractive to shoppers from the Rhine valley, direction St. Gallen. The microlocation of the shopping centre is unusual in that it is outside a city centre and is surrounded by other shopping centres. In fact, the customer finds himself in the Riet area, between Mels and Sargans, extending for one kilometre along the A3, in the middle of a veritable collection of shopping centres which complement each other perfectly: Pizol-Center with Coop and about 30 other tenants Pizol-Park (Migros) Möbel Pfister Jumbo Cash & Carry Angehrn McDonald s Reit-Center with Inderdiscount and Horse Accessories Schnider s Möbel Manor (a little further away) presented, offering goods and services in the fields of electronics, jewellery, bodycare and books. Some rental contracts contain turnover clauses which should make it possible in the medium term to exceed the current minimum rental income (initial rate of return). Just how much people enjoy shopping in Mels is reflected in the high visitor numbers. Even non-motorised shoppers are attended to. Since October 2002, public busses run between Mels, Sargans, Wangs and Riet. The Mels municipality is considering making a further four hectares of land available for specialist markets and leisure centres. The Pizol-Center would also have the right and the technology to build an additional level on the existing roof. A windfall in the portfolio For CIO Peter Lehmann, the acquisition of the centre is a windfall which gives our portfolio a welcome push towards diversification. The proportion of retail space in the Swiss Prime Site portfolio has increased from 14% to 18% thanks to the purchase in Sarganserland. Apart from Pizol-Park, which was opened 30 years ago, the other 50 shops only opened in the second half of the nineties. The turnover of all the shops is estimated at CHF 500 million per year. Attractive tenants, high frequency The anchor tenant is Coop, with its entire food and department store range, a DIY and hobby centre and The Pizol-Center extends the retail space owned by Swiss Prime Site to approx. 68,000 m 2. Of this, about 34,000 m 2 is covered by the retail space in the Volkiland shopping centre in Volketswil. Another 5,500 m 2 will be added to this with the opening of the Under Höh expansion in Volketswil. a terrace restaurant on a 11,000 m 2 site. Other major tenants are Karl Vögele AG, Mode Weber and Schild Mode. About 25 companies are re- 4
The increased commitment to retail trade has a positive effect on the risk structure, as experience has shown that vacant lots in successfully managed shopping centres are of a very short duration. Moreover, the further rejuvenation of the structure optimises the overall maintenance costs of the property stock and has a positive influence on the already high EBIT margin. The long-term, index-linked rental contracts (length of contract between 10 and 20 years) with fixed minimum rents stabilise the earning power of the portfolio, even in times of economic difficulty. The Pizol-Center extends the Swiss Prime Site portfolio, characterised by large-volume investment properties, in the ideal way. Pizol-Center, 8887 Mels KEY FIGURES Purchase date 24.10.2002 Purchase price CHF 93.0 m Year of construction 2001/ 2002 Surface area 18,636 m 2 (incl. entire plot) Rental situation 100 % Market value CHF 94.7 m Net target rental income p.a. CHF 5.9 m 5
in CHF 1,000 01.01. 31.12.2002 01.01. 31.12.2001 Rental income from investment properties 98,013 78,363 Other operating income 1,114 2,268 Total income 99,127 80,631 Direct operating expenditure 13,307 9,742 Change in fair market value, net 3,332 (33,595) Personnel costs 232 180 Other operating expenditure 10,483 6,420 Depreciation of non-real-estate fixed assets 8 7 Start-up and organisation costs Total operating expenditure 27,362 (17,246) Operating profit (EBIT) 71,765 97,877 Financial expenditure 33,774 23,598 Financial income 30 342 Profit before tax on earnings 38,021 74,621 Current tax on earnings 125 123 Deferred tax on earnings 2,875 16,147 Profit for the period under review 35,022 58,351 Earnings per share for the period under review 10.83 19.39 The notes are an integral component of the consolidated financial report. Consolidated balance sheet in CHF 1,000 31.12.2002 31.12.2001 Assets Current assets Cash and other liquid assets 1,494 3,565 Receivables from deliveries and services 9,498 4,457 Other receivables 9,043 266 Accrued income and prepaid expenses 10,533 1,557 Total working capital 30,567 9,845 Fixed assets Long-term financial assets 515 927 Non-real-estate fixed assets 2 10 Investment properties 2,003,759 1,730,476 Total fixed assets 2,004,276 1,731,413 Total assets 2,034,843 1,741,258 Liabilities Short-term liabilities and Accounts payable 268 178 shareholders Other short-term liabilities 7,300 780 equity Advance payments 12,515 8,010 Accrued expenses and deferred income 19,480 19,167 Total short-term liabilities 39,564 28,135 Long-term liabilities Long-term financial liabilities 926,000 853,000 Deferred tax liabilities 32,112 29,238 Total long-term liabilities 958,112 882,238 Total liabilities 997,676 910,374 Shareholders equity Share capital 769,811 599,131 Capital reserves 145,471 144,889 Profit reserves 121,885 86,864 Total shareholders equity 1,037,167 830,884 Total liabilities and shareholders equity 2,034,843 1,741,258 The notes are an integral component of the consolidated financial report. Annual reportsconsolidated income statement Consolidated cash flow statement Portfolio by regions Based on market value as of 31.12.2002 Zurich 42% Western Switzerland 1% Southern Switzerland 0% Eastern Switzerland 6% Geneva 12% Central Switzerland 11% Northwestern Switzerland 15 % Bern 13 % in CHF 1,000 01.01. 31.12.2002 01.01. 31.12.2001 Profit for period under review 35,022 58,351 Adjustments for: Change in fair market value, net 3,332 (33,595) Depreciation on non-real-estate fixed assets 8 7 Financial expenditure 33,774 23,598 Financial income (30) (342) Taxes on earnings 125 Changes in working capital: Increase in receivables from deliveries and services (5,041) (1,632) Decrease/increase in other receivables (8,777) 465 Increase in accrued income and prepaid expenses (8,976) (672) Increase in accounts payable 90 120 Increase in other short-term liabilities and advance payments 11,024 4,606 Increase in accrued expenses and deferred income 2,244 9,623 Increase in deferred tax liabilities 2,875 16,147 Interest payments made (35,814) (20,923) Interest payments received 30 394 Payment of tax on earnings (16) Net inflow of funds from operational activity 29,869 56,148 Investments in investment properties (276,615) (905,667) Investments in non-real-estate fixed assets Investments in/desinvestments of long-term financial assets 412 (927) Dividend payments received Net outflow of funds from investment activity (276,203) (906,594) Acceptance of short-term financial liabilities Acceptance of long-term financial liabilities 73,000 806,000 Capital increase including premium, minus capital increase costs 193,447 Revenue from sale of own subscription rights 55 Reduction in nominal value (24,160) Sale/purchase of own shares 1,921 (5,417) Payment of profit distributions Net inflow of funds from financing activity 244,263 800,583 Net decrease of cash and other liquid assets (2,071) (49,863) Cash and other liquid assets at the beginning of the period under review 3,565 53,428 Cash and other liquid assets at the end of the period under review 1,494 3,565 The notes are an integral component of the consolidated financial report. 6 Portfolio by usage type Based on target rental income as of 31.12.2002 Commercial 18 % Cinemas Restaurants 3 % Store rooms 5 % Offices 64 % Apartments 2 % Rest 3 % Parking 5 %
Market matrix: Market valuation of individual properties (Source: Wüest & Partner) QUALITY OF PROPERTY Question mark 34 36 IV Average 21 22 8 14 5 13 I III 48 26 37 1719 46 39 40 38 47 24 9 3 7 Top property 41 27 15 44 42 43 25 35 16 31 23 20 1 10 4 45 11 12 II 2 18 6 Consolidated statement of changes in equity Share capital Capital reserves Profit reserves Total shareholders in CHF 1,000 (premium) equity As at 1 January 2001 603,514 145,923 28,513 777,950 Distributed profits Profit for the period under review 58,351 58,351 Purchase of own shares (4,383) (1,034) (5,417) As at 31 December 2001 599,131 144,889 86,864 830,884 Distributed profits Profit for the period under review 35,022 35,022 Capital increase 11 October 2002 (incl. premium) 193,280 8,053 201,333 Capital increase costs (7,887) (7,887) Revenue from sale of own subscription rights 55 55 Reduction in nominal value as at 29 Juli 2002 (24,160) (24,160) Sale of own shares 1,560 361 1,921 As at 31 December 2002 769,811 145,471 121,885 1,037,167 Notes to the consolidated financial statements Earnings per share The profit used to calculate the earnings per share or the diluted earnings per share is the annual profit reported by the Swiss Prime Site Group. The average number of shares is: Problem property 1 Am Bohl 1/ Goliathgasse 6, 9000 St. Gallen 2 Reitergasse 9/11, 8004 Zurich 3 Birchstrasse 117, 8050 Zurich 4 Quai du Seujet, 1203 Geneva 5 Josefstrasse 53/59, 8005 Zurich 6 Stauffacherstrasse 94 96, Molkenstrasse 15 17, 8004 Zurich 7 Kirchstrasse 20, 8913 Dietikon 8 Lagerhausstrasse1, 4500 Solothurn 9 Röschibachstrasse 22, Hönggerstrasse 40, 8037 Zurich 10 Steinenvorstadt 67, 4051 Basel 11 Schulstrasse 34/36, 8050 Zurich 12 Freiestrasse 26 / Falknerstrasse 3, 4001 Basel 13 Aemmenmattstrasse 43, 3123 Belp 14 Froburgstrasse 15, 4601 Olten 15 Cityport, 8050 Zurich-Oerlikon 16 Rue du Rhône/Place Fusterie, 1204 Geneva 17 Industriestrasse 1, 8604 Volketswil 18 Freischützgasse 14, 8004 Zurich 19 Hofwiesenstrasse 50, 8153 Rümlang 20 Vadianstrasse 25, 9000 St. Gallen 21 Weltpoststrasse 5, 3015 Bern QUALITY OF LOCATION Shortcoming 22 Route de Chancy 59, 1213 Petit-Lancy 23 OPUS 1, Gubelstrasse 22, 6300 Zug 24 OPUS 2 (Project), 6300 Zug 25 Route de Malagnou, Rue Michel-Chauvet 7, 1208 Geneva 26 Rte du Petit-Moncor 1, 1752 Villars-sur-Glâne 27 Messeturm (Project), 4021 Basel 31 Genfergasse 14, 3001 Bern 34 Alte Tiefenaustrasse 6, 3048 Worblaufen 35 Peter Merian-Strasse 80, 4002 Basel 36 Route de Meyrin 49, 1211 Geneva 37 Weinberglistrasse 4, 6000 Lucerne 38 Geissensteinring, 6000 Lucerne 39 Tribschenstrasse 56/60, 6000 Lucerne 40 Quartierzentrale Tribschen, 6000 Lucerne 41 Bahnhofquai 20, 4600 Olten 42 Swisscom Gasse 2, Bahnhofquai 18, 4600 Olten 43 Theaterstrasse 17, 8400 Winterthur 44 Fraumünsterstrasse 16, 8000 Zurich 45 Brandschenkestrasse 25, 8000 Zurich 46 Under Höh (Project), 8604 Volketswil 47 Manessestrasse 85, 8003 Zurich 48 Pizol-Center, 8887 Mels 01.01. 31.12.2002 01.01. 31.12.2001 Issued shares 01.01. 31.12. (360 days) 3,020,000 Issued shares 01.01. 10.10. (280 days) 3,020,000 Issued shares 11.10. 31.12. (80 days) 4,026,667 Average stock of own shares (360 days) 10,137 11,011 Average weighted number of shares 01.01. 31.12. (360 days) 3,233 567 3,008,989 The average weighted earnings per share in CHF amount to: Annual earnings per share 10.83 19.39 No dilution effects occurred in the reporting period 01.01 to 31.12.2002. No diluted earnings per share have therefore been reported. Shareholders equity The General Assembly of Shareholders on 29 April 2002 adopted a resolution on the repayment of nominal value in the amount of CHF 24.160 million, reducing the nominal value to CHF 579.840 million. Following the repayment, the nominal value per share amounts to CHF 192.00. The reduction in nominal value was effected as of 29 July 2002. On 23 August 2002, the Board of Directors decided to increase the share capital in the context of the approved capital of the company. The total of 1,006,667 new shares with a nominal value of CHF 192.00 (subscription price CHF 200.00) were traded on the SWX for the first time on 11 October 2002. Portfolio by contractual end of rental relationship Based on net rental income as of 31.12.2002 End of contract over number of years 10 9 8 7 6 5 4 3 2 1 0 3.73% 6.40% 5.71% 7.39% 6.47% 11.93% 8.64% 9.44% 8.79% 10.42% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% As a % of net rental income 21.08% 30.00% 35.00% Selected company data As at As at Change Data in 31.12.2002 31.12.2001 in percent Group EBITDA CHFm 71.8 97.9 26.66 EBIT CHFm 71.8 97.9 26.66 Profit (+) / Loss ( ) CHFm 35.0 58,4 40.07 Shareholders capital CHFm 1,037.2 830.9 24.83 Equity ratio % 50.97 47.72 6.81 Borrowed capital CHFm 997.7 910.4 9.59 Borrowed capital ratio % 49.03 52.28 6.22 ROE (weighted) % 4.00 7.25 44.83 ROIC (weighted) % 3.81 6.33 39.81 Details without effect of revaluation* Operating profit (EBIT) CHFm 75.1 64.3 16.80 EBIT margin % 75.76 79.72 4.97 Profit for period under review CHFm 41.2 40.9 0.73 Earnings per share (weighted) CHF 12.75 13.59 6.18 ROE (weighted) % 4.97 5.29 6.05 *No account has been taken of the revaluations (IAS 40) and the resulting deferred taxes. Details of real estate portfolio as of 31.12.2002 7 Market value in CHF m Net rental income in CHF m Net yield Rent default rate Lettable space in m 2 31.12.02 31.12.01 31.12.02 31.12.01 31.12.02 31.12.01 31.12.02 31.12.01 31.12.02 31.12.01 Zurich 802.8 755.2 43.3 35.5 5.16% 5.09% 3.42% 1.35% 156,868 143,683 Central Switzerland 174.8 92.2 10.4 4.6 5.55% 6.12% 10.53% 3.27% 41,079 24,524 Eastern Switzerland 121.2 27.1 2.9 1.6 5.90% 5.26% 0.87% 4.35% 24,812 5,485 Northwestern Switzerland 163.3 162.8 9.5 7.8 5.33% 5.24% 2.68% 5.45% 34,916 35,717 Bern 267.9 270.5 16.2 14.3 5.28% 5.35% 1.86% 0.80% 67,874 67,970 Geneva 230.9 229.9 13.8 12.6 5.33% 5.22% 1.35% 2.79% 47,564 45,900 Western Switzerland 28.9 29.1 1.9 1.4 5.21% 5.41% 8.87% 5.08% 8,879 8,869 Subtotal 1,789.8 1,566.8 98.0 77.8 5.31% 5.25% 3.67% 2.16% 381,992 332,148 Projects 214.0 163.6 0.0 0.6 n/a n/a 0.00% 0.00% 57,470 80,567 Total 2,003.8 1,730.4 98.0 78.4 n/a n/a 3.67% 2.15% 439,462 412,715
Messeturm Basel At the summit Shop talk, celebrations and fireworks at the topping-out ceremony on 5 December 2002. Up and on to new heights that was the motto of an event the like of which Basel has never seen. For the toppingout ceremony of the 105-metre high Messeturm in Basel, the Batigroup set off a firework display to match anything you might see on the Swiss national holiday. For all those involved in the construction (about 450), it was a moment of satisfaction, joy and pride. They have built a symbol which shines out across the city of Basel. And they kept to a very ambitious schedule! But you can be sure that they were uncompromising with regard to quality. No wonder that, on 5 December, it wasn t just idle talk and clinking glasses that you could hear, but also the sound of a load being taken off their minds. High, but unobtrusive Only one year ago, there was still nothing to be seen of the tower on the Messeplatz in Basel. It only really got going in April 2002. In record time, week after week, another storey kept appearing on top of the last one. Yet the 22,000 m 3 of concrete and 6,700 tonnes of structure and reinforced steel of the Swiss Prime Site property, put together by the overall entrepreneur Batigroup, are not visible. The tower is so unobtrusive that it is as if it has always been on the Messeplatz. Today, the cranes are nowhere in sight. The work goes on in silence. The extension of the Sorat Hotel with 230 rooms is at full throttle. On the office and restaurant floors, too, it s all go. The biggest construction risks are behind us. Soon, the Messeturm will be bustling with hotel guests, conference participants and employees. Then the 31-storey building will be full of life. Share data Share price (01.01. 2002 31.12.2002) as at 31.12.2002 CHF 233.00 High CHF 253.70 Low CHF 213.50 Market capitalisation as at 31.12.2002 CHF 938.2 m NAV (before deferred taxes)* as at 31.12.2001 CHF 287.12 as at 31.12.2002 CHF 266.69 Change 7.12% NAV (after deferred taxes)* as at 31.12.2001 CHF 277.36 as at 31.12.2002 CHF 258.68 Change 6.73% Earnings per share (weighted) as at 31.12.2001 CHF 19.39 as at 31.12.2002 CHF 10.83 Share statistics Total registered shares 4,026,667 Security number 803,838 ISIN no. CH 000 803 838 9 SWX symbol SPSN First day of trading 05.04.2000 *As a result of the capital increase, comparison with the previous year s values is only partially possible. Contacts Company Swiss Prime Site AG Froburgstrasse 15, 4601 Olten Phone 062 213 06 06 Fax 062 213 06 09 www.swiss-prime-site.ch Chairman of the Board of Directors Stefan Mächler stefan.machler@swiss-prime-site.ch CEO Markus Graf markus.graf@swiss-prime-site.ch CFO Peter Wullschleger peter.wullschleger@swiss-prime-site.ch CIO Peter Lehmann peter.lehmann@swiss-prime-site.ch Media enquires Susanne Richner susanne.richner@swiss-prime-site.ch COMPETITION And the winner is......eduard Werder, Chur SPS share performance (reinvested) from 01.01. 31.12.2002 total yield 110 105 100 95 Source: Bloomberg Agenda 20 March 2003 Press Briefing on Annual Results, FY 2002 29 April 2003 General Assembly, FY 2002 Mr. Werder has won a weekend in the Sorat Hotel in the Swiss Prime Site prize draw. The hotel on 90 85 80 September 2003 Interim Report as at 30 June 2003 the Messeplatz in Basel will be opening in March 2003. It is in the tallest building in Switzerland, a Swiss Prime Site project. Congratulations! 75 70 65 60 01.01.2002 Share price 01.01. 31.12.2002 per 31.12.2002 CHF 233.00 High CHF 253.70 Low CHF 213.50 15.01.2002 29.01.2002 12.02.2002 26.02.2002 12.03.2002 26.03.2002 09.04.2002 23.04.2002 07.05.2002 21.05.2002 04.06.2002 18.06.2002 02.07.2002 16.07.2002 SPSN SMI SWX IG Real Estate (TR) 30.07.2002 13.08.2002 27.08.2002 10.09.2002 24.09.2002 08.10.2002 22.10.2002 05.11.2002 19.11.2002 03.12.2002 17.12.2002 31.12.2002 Impressum Published by Swiss Prime Site AG Concept and realisation ibl und partner ag, solothurn Disclaimer: The financial data and other reporting which appear in Swiss Prime News are selected information. A complete annual and interim report can be obtained upon request, in writing or by telephone, to the company. This information constitutes neither an offer nor a recommendation to buy Swiss Prime Site AG shares. It cannot be distributed in any legal system if this contravenes the laws or regulations in force. Statements regarding the future contain uncertainties and risks which may lead to the actual company events deviating from the forecast situation. 8