PATRIZIA The European Real Estate Investment Company Company Presentation January 2018 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
PATRIZIA is the leading European real estate investment company Top 3 >15 markets European real estate dealmaker* with local operations across Europe EUR >38bn 33 years >350 EUR 450m assets under management experience in real estate institutional clients globally available liquidity Pro-forma data as of Q3 2017, including SPI, TRIUVA and Rockspring; * PropertyEU dealmakers ranking, last published on 3 March 2017 2
Risk PATRIZIA s offer includes all asset and risk classes EUR 20.5BN AUM ACROSS THE RISK - RETURN SPECTRUM MANAGING ALL MAJOR SEGMENTS EUR 0.3bn (2%) Opportunistic 3% 3% 2% 2% 3% Office Retail 36% Residential EUR 6.8bn (33%) Value add EUR 13.4bn (65%) Core/Core+ Return 36% 15% Light Industrial Logistics Hotel Nursing care Other INVESTING ACCORDING TO CLIENTS NEEDS Commingled Funds (Institutional) Separate Accounts Strategic pooling of equity with a focus on geography, sector and style Tailored solutions for individual direct mandates EUR 10.7bn (52%) Investment solutions for a small Club Deals EUR 0.7bn (4%) number of institutional investors Principal Investments Commingled Funds (Retail) Investments on PATRIZIA s own account Investment solutions for a pool of retail investors EUR 8.7bn (42%) EUR 0.1bn (1%) EUR 0.3bn (2%) GEOGRAPHICAL BREAKDOWN OF ASSETS 9% 6% 3% 5% 7% 70% Germany UK & Ireland Netherlands Nordics France & Belgium Other Data as of 9M 2017 3
PATRIZIA s business is about building successful investment products Fundraising >350 Investors DIRECT ACCESS TO CAPITAL Broad and long-term oriented institutional investor base Rapidly growing share of international investors $ Product Development >95 Funds/ Investment structures COMPREHENSIVE MANAGEMENT Multi-fund platform to meet diverse clients needs Special attention to alignment of interests Deal Sourcing EUR >38bn Assets under management DIRECT ACCESS TO ASSETS Unique access to the European real estate market Investment expertise across all segments and risk styles Pro-forma data as of Q3 2017, including SPI, TRIUVA and Rockspring 4
PATRIZIA s competitive strengths as central growth driver LARGE TRACK RECORD AS INDEPENDENT EUROPEAN INVESTMENT FIRM RESULTING POSITION OF COMPETITIVE ADVANTAGE Transactions Fundraising Financing Transactions worth >EUR 25.5bn completed since 2012 More than 9.2 million square metres under management Consistently ranked among top 3 European dealmakers (PropertyEU) EUR 9.5bn of equity raised since 2012 Above 200 institutional clients, largely invested in multiple products Broad range of investment vehicles from open to closed end and public to private EUR 9.3bn of financing volume since 2010 More than 100 financial institutions providing debt funding 100% performing loans since PATRIZIA was established in 1984 Turn to real estate investment manager Direct access to institutional clients worldwide Best-in-class financing capabilities Investment Track Record Product Offering Expertise Consistently producing positive and competitive returns for institutional clients Superior returns for value-add and private equity investments Multi-fund platform offering clients geographical, asset and risk diversification across investment products Investments through regulated funds, single asset mandates and co-investment vehicles Integrated pan-european asset management team with 90 professionals across 15 European countries More than 30 years of experience with real estate only One of Germany s top providers of institutional funds (BVI 2015) 5 Strong investment track record Attractive product offering across all asset classes and risk profiles European network with experienced local teams
Millions PATRIZIA has a track record of superior returns Transactions Products EUR 25.5bn transactions since 2012 in close to 500 individual deals Registered offers for EUR 117.7bn in 8 months of 2017 alone Significant share off-market deals Overall 68 active funds/investments EUR 12.7bn invested capital since 2002 Active on behalf of third party clients and as principal investor INVESTED CAPITAL AVERAGED RETURN OF 19.7% IRR Distribution of net IRRs by invested capital 7,000 6,000 5,000 4,000 median IRR: 6.3% weighted average IRR: 19.7% Returns Majority of funds/investments returns well above 4% IRR p.a. Invested capital produced average 19.7% IRR and 1.4x multiple to date* 3,000 2,000 1,000 Benchmark Consistent outperformance of funds / investments target returns Outperformance of relevant INREV indices 0 < 0% 0-4% 4-8% 8-12% 12-20% > 20% Core Core+ Value-added Opportunity Information as of Q2 2017; return distributions include performance of all funds/investments with an invested capital exceeding EUR 50m, in total 53 funds/investments with a total invested capital of EUR 12.4bn; * Returns weighted by invested capital; returns include leverage and are presented net of costs, taxes and fees 6
PATRIZIA continues on its organic growth path ASSETS UNDER MANAGEMENT (in EUR billion) TOTAL SERVICE FEE INCOME (in EUR million) 6.9 11.8 14.6 16.6 18.6 20.6 20.5 72.8 117.5 140.0 165.2 188.6 174-195 128.8 2012 2013 2014 2015 2016 9M/17 EQUITY RAISED (in EUR billion) 1.0 1.0 3.4 2.4 1.0 4.6 1.2 3.4 6.1 1.5 4.6 8.3 2.2 6.1 1.2 8.3 2012 2013 2014 2015 2016 9M/17 New equity raised Equity raised in previous years accumulated * Excluding EUR 103.4m performance fee from SÜDEWO exit 9.5 7 2012 2013 2014 2015* 2016 9M/17 MANAGEMENT FEES (in EUR million) 35.6 50.1 68.1 81.5 89.1 90-92 66.7 2012 2013 2014 2015 2016 9M/17 Full-year 2017 guidance
and increased its full-year guidance with 9M/17 results HIGHLIGHTS Strong results in the first nine months of 2017 confirm strategic growth path Assets under management increased by EUR 1.9bn to EUR 20.5bn Operating income up 6.1% to EUR 46.6m Profitable AUM growth demonstrates scalability of European investment management platform ASSETS UNDER MANAGEMENT (in EUR billion) 6.9 11.8 14.6 16.6 18.6 20.6 20.5 2012 2013 2014 2015 2016 9M/17 Increased earnings guidance for 2017 Full-year operating income expected to slightly surpass EUR 75m On track to achieve AUM guidance: net organic growth in AUM of EUR 2.0bn expected AUM expected to reach EUR 21.6bn by year-end including SPI acquisition OPERATING INCOME (in EUR million) 6.1% 43.9 46.6 Increased guidance of slightly above EUR 75m 75-60 * Adjusted for Harald portfolio 8 9M/16* 9M/17 2017e Full-year 2017 guidance
Strong recurring nature of cash flows yields long-term stability Recurring fee income from investment management services represents 87% of total income 78% of currents assets under management have maturities of 10 years or more Co-investment income continues to deliver an attractive and recurring return on equity DEVELOPMENT OF INCOME STREAMS MATURITY BREAKDOWN OF AUM Service fee income Investment income Assets under Management maturity 42% 58% 31% 69% 24% 76% 18% 15% 13% 82% 85% 87% Management Fees Transaction Fees Performance Fees 12% 2% 8% 78% >10 years/ unlimited 5-10 years 2-5 years <2 years 2012 2013 2014 2015 2016 9M/17 9
9M/17 results confirm sustainable earnings growth Third-party business Fees Opex Management income Regulated funds Institutional investors Private investors Co-investments Single asset mandates +4.9% 61.3 64.3 9M/16 9M/17 Equity investments Return on equity Opex Investment income Co-investments Principal investments 14.5-12.6% 12.7 (in EUR million) 9M/16* 9M/17 Corporate expenses / Adjustments Operating income 43.9 +6.1% 46.6 9M/16* 9M/17 * Adjusted for Harald portfolio 10
Pan-European platform drives diversified income streams DEVELOPMENT OF FEE STREAMS Increasing service fee income confirms scalability of PATRIZIA s platform Total service fee income up 5.2% to EUR 128.8m Stable management fees despite sale of property management business beginning of 2017 Significant growth in performance fees leads to increase of operating income guidance 2017 Outstanding transaction pipeline of approximately EUR 1.5bn will further accelerate income streams until year end TOTAL SERVICE FEE INCOME (in EUR million) 122.4 +5.2% 128.8 6.9 30.7 48.6 31.4 Management fees Transaction fees Performance fees 72.8 37.2 35.6 117.5 13.4 54.1 50.1 66.8 66.7 9M/16 9M/17 140.0 19.7 52.2 68.1 165.2 25.0 58.7 188.6 29.2 70.3 81.5 89.1 CAGR 2012-2016 +29.6%** +17.2% +25.8% 2012 2013 2014 2015* 2016 * Excluding SÜDEWO exit performance fee; **CAGR: 2013-2016 11
AUM growth translates into recurring management fees STEADILY GROWING MANAGEMENT FEES PATRIZIA receives recurring service fees for managing real estate assets for more than 200 international investors Fee income is steadily growing as assets under management are further broadening on a pan-european basis and across all asset classes Strong organic growth of management fees compensated sale of property management business beginning of 2017 Progressive increase in management fees demonstrates the reliability and scalability of PATRIZIA s integrated investment management platform ASSETS UNDER MANAGEMENT (in EUR billion) 6.9 MANAGEMENT FEES (in EUR million) 35.6 11.8 50.1 14.6 68.1 16.6 81.5 18.6 89.1 20.6 20.5 2012 2013 2014 2015 2016 9M/17 90-92 66.7 2012 2013 2014 2015 2016 9M/17 Full-year 2017 guidance 12
with transaction fees remaining a consistent part of total income TRANSACTION FEES EXPECTED TO MAKE UP LEEWAY IN Q4 2017 Transactions worth EUR 3.0bn completed in the first nine months of 2017 Promising deal pipeline ahead: signed transactions worth approximately EUR 1.5bn to be closed in Q4; acquisitions and sales largely balanced Full-year transaction level expected to be broadly in line with annual long-term average 2016 transaction volume includes EUR 1.1bn from the sale of the Harald-portfolio 2015 transaction volume includes sale of SÜDEWO and acquisition of Harald totalling EUR 2.5bn Q4 2017 indication 13 TRANSACTION VOLUME (in EUR billion) 3.2 0.6 2.6 4.8 3.0 5.1 0.5 4.1 1.9 0.7 4.3 3.4 4.2 3.2 0.8 2.2 2012 2013 2014 2015 2016 9M/17 Acquisitions TRANSACTION FEES (in EUR million) 37.2 9.4 27.8 54.1 52.2 17.0 17.7 26.7 37.1 34.5 32.0 Sales 22.2 48.1 3.0 31.4 10.6 20.8 2012 2013 2014 2015 2016 9M/17 Acquisition fees 7.2 58.7 70.3 Sales fees Ø EUR 4.9bn Ø EUR 54.5m
and performance fees emphasising PATRIZIA s track record PERFORMANCE FEES AS RELIABLE PART OF ANNUAL FEE STREAM Third-party funds and co-investments generate performance fees upon exceeding pre-determined return hurdles PERFORMANCE FEES (in EUR million) 128.4 EUR 30.7m of performance fees in the first nine months of 2017 emphasize asset management capabilities and investment track record Performance fees expected to come in above the upper end of the guidance range of EUR 29m to EUR 38m in 2017 13.4 19.7 25.0 29.2 30.7 29-38 2013 2014 2015 2016 9M/17 Performance fee SÜDEWO exit Performance fees Full-year 2017 guidance 14
Full-year operating income expected to slightly surpass EUR 75m INCREASED EARNINGS GUIDANCE FOR 2017 Operating income of slightly above EUR 75m expected, compared to previous range of EUR 60m to EUR 75m INCOME BRIDGE (in EUR million) Increase caused by higher than expected performance fees Shift of fees from transaction to performance fees in 2017 Performance fees expected to come in above the upper end of the previous range of EUR 29m to EUR 38m Transaction fees expected to stay at the lower end or slightly below the previous range of EUR 55m to EUR 65m 72 92 90 65 55 38 29 39-148 -153 81 65-5 Increased guidance of slightly above EUR 75m 75 60 2016 2017 Base operating income* Management fees** Transaction fees Performance fees Investment income Net operating expenses EBITDAR D&A and financial result Operating income * Adjusted for Harald portfolio ** 2016 starting base like for like EUR 10m lower due to the sale of the property management business beginning of 2017 15 New 2017 guidance
PATRIZIA s strategic bridge to the future ASSETS UNDER MANAGEMENT (in EUR billion) Completed transformation to a leading European Real Estate Investment Manager Deploy cash Realise M&A >50 VISION PATRIZIA the global provider of 38.3 Continue European expansion Broaden product portfolio Expand international client base European real estate assets 5.2 2011 Q3/17* 2021 and beyond *Pro-forma value as of Q3 2017, including SPI, TRIUVA and Rockspring 16
PATRIZIA has four major strategic initiatives for further growth I MARKETS II PRODUCTS III INVESTORS IV ACQUISITIONS Continue European expansion Build out PATRIZIA s pan-european investing platform and thereby grow AUM and fee income Underlying principle all business is local Broaden product portfolio Further extend the PATRIZIA product range in terms of sectors and risk Expand product offering for institutional and retail clients Expand international client base Strengthen PATRIZIA s reputation outside Europe and obtain more investment on a global basis Leverage the new offices in New York and Asia/Pacific Capture relevant opportunities Prudently consider corporate M&A opportunities to integrate suitable geographies and/or assets Keep an eye out for attractive co-investment opportunities VISION PATRIZIA the global provider of European real estate assets 17
Markets: Further develop PATRIZIA s pan-european expertise ATTRACTIVE SET-UP European market liquidity approx. EUR 260bn, investible real estate approx. EUR 7,000bn: market still underinvested, potential for PATRIZIA FOCUS ON LOW COUNTRY RISKS IN CORE GEOGRAPHIES PATRIZIA offices FOCUS Focus on maintaining deep expertise in core markets Germany, UK, France Germany: Retention and further growth of market share UK & France: Market penetration to increase market share STRENGTHEN Strengthen other PATRIZIA country platforms to serve pan-european product lines Leverage on local expertise & knowledge for cross-border investment MONITOR Systematically monitor new markets for entry opportunities Focus on locations with low country risk and according ratings and where there is proven investor demand Source: S&P, RCA, Reuters, Pramerica, Hodes & Weill 18
Products: Expand product range and client base DIVERSIFICATION OF ASSET CLASSES Broaden PATRIZIA s product portfolio into various dimensions in order to offer clients a broad range of products and investment strategies Segments: Stronger diversification over property types and segments; strengthen new areas such as logistics Risk profiles: Develop more value add products and thereby diversify the portfolio risk Target group: Expand product offer beyond large institutional clients; e.g. further establish funds for private investors Besides, shift to larger volume and sustainable products vs. transaction oriented one-off opportunities PATRIZIA Logistics Management Europe 2015: launch of first pan-european logistics real estate fund Initial target investment volume: EUR 500m Market with high growth potential due to continuing e-commerce trend COMPLETION OF CLIENT REACH Funds for institutional investors + Funds for private investors Only low investments required Specific underlying properties In the long-term expansion of asset classes from real estate to real assets and thus grow product portfolio beyond real estate Individual mandates for institutional investors Direct investments for private investors 19
Products: PATRIZIA s new retail fund business is developing fast New business Attractive conditions In 2016 PATRIZIA started selling real estate funds to private investors; typically each fund consists of one specific property with existing rental or lease contracts With investments as little as EUR 10,000 now also private investors can benefit from PATRIZIA s institutional expertise and generate average pay-outs of around 5% before taxes Stuttgart Südtor City quarter with a diverse mix of uses Equity: EUR 55m Strong demand The first three funds with approximately EUR 95 million of equity have already been fully placed; three other funds are currently on sale and one more is in preparation CURRENT INVESTMENT VOLUMES OF PRIVATE FUNDS * (in EUR million) 700 600 500 400 300 200 100 0 "Campus Aachen" "Stuttgart Südtor" "Den Haag Wohnen" "Kopenhagen Südhafen" "München Leopoldstraße" "Mainz Rheinufer" "Die Stadtmitte Mühlheim" Q1/16 Q3/16 Q1/17 Q3/17 2017e 2018e Kopenhagen Südhafen new group of buildings with127 residential units Equity: DKK 263m München Leopoldstr. Modern office building in top location Equity: EUR 33m * Shown in the quarter/year where placement starts 20
Public Pension Fund Superannuation Scheme Private Sector Pension Fund Sovereign Wealth Fund Endowment Plan Insurance Company Foundation UK North America Switzerland Australia South Korea Netherlands Germany Denmark Japan Investors: Global under-allocation to real estate to drive growth INVESTMENT PRESSURE BY TYPE OF INVESTOR Average allocation to real estate (as % of overall portfolio) INVESTMENT PRESSURE BY COUNTRY Average allocation to real estate (as % of overall portfolio) 10.1% 9.0% 9.1% 8.6% Current Allocation Target Allocation 9.9% 9.6% 9.3% Ø 9.1% 7.9% 8.1% 7.7% 7.4% Ø 7.2% 6.1% 5.9% 5.3% Current Allocation Target Allocation 20.8% 15.0% 12.9% 12.3% 13.4% 11.5% 10.7% Ø 11.7% 10.6% 10.3% 10.3% 8.9% 8.1% 7.7% Ø 8.6% 7.4% 6.8% 7.3% 5.2% 4.0% Source: Brookfield Financial Source: INREV 21
Investors: Roll-out of fundraising offices to accelerate growth Fundraising offices Fundraising offices planned New York London Copenhagen Amsterdam Japan Paris Augsburg Hong Kong Melbourne EQUITY COMMITMENTS BY CAPITAL TYPE (as of 9M 2017) EQUITY COMMITMENTS BY GEOGRAPHY (as of 9M 2017) 26% 6% 2% 5% Pension funds Insurance companies 42% 19% Savings banks Banks, Banks Endowments and Corporates Retail investors Other 5% 4% German investors European investors Rest of world investors 91% 22
Acquisitions: PATRIZIA is well positioned for potential M&A deals Strong balance sheet ratios and capital structure to facilitate further profitable growth Issuance of bonded loan of EUR 300m significantly increased financial flexibility and growth options Total available cash amounts to more than EUR 700m as of 30.09.2017; however, following the acquisitions of SPI, TRIUVA and Rockspring in Q4 2017, available liquidity decreased to approx. EUR 450m Options to deploy cash continue to include M&A opportunities Increase in shareholder value and high degree of financial discipline remain priorities Strong Balance Sheet in EUR million 30.09.2017 Total assets 1,212.2 Equity (excl. minorities) 740.8 Equity ratio 61.1% Bank loans 0 Bonded loans 322.0 - Cash and cash equivalents 531.9 - Deposits and securities 238.0 = Net cash -447.9 Significant Liquidity in EUR million 30.09.2017 Bank balances, cash and deposits 769.9 - Transaction-based liabilities Harald portfolio 22.2 - Regulatory reserve KVGs (investment companies) 6.9 - Cash in retail funds business special purpose vehicles 0.1 = Available cash 740.7 Net equity ratio 83.2% 23
Acquisitions: PATRIZIA is prudently pursuing M&A opportunities GOALS Acquire and integrate complementary platforms sharing the same vision and business strategy Add value and expertise through closing gaps in existing capabilities Selective co-investments where strategically relevant and economically reasonable CRITIERIA M&A s must be financially accretive Targets to be significant enough in size in order to achieve notable contribution to expansion Cultural fit to PATRIZIA to ensure value orientation and mind-set FOCUS MARKET Ensure top quartile performance in existing investments Provide access to new markets Proactive sourcing of investments and active asset management FOCUS PRODUCT Broaden product portfolio over new product lines Ensure products meet investor requirements FOCUS INVESTOR Expand global investor base Ensure reporting and performance is rated highly by investors ACTIVITIES Oct 2017: Acquisition of SPI, a Copenhagen-based leading provider of fund of funds products Nov 2017: Acquisition of TRIUVA increases PATRIZIA s AUM to more than EUR 30bn Dec 2017: Acquisition of London-based Rockspring further increases PATRIZIA s international platform 24
Acquisition #1: SPI Closing of transaction on 12 October 2017 Property Investors KEY FACTS COMPANY BASED IN COPENHAGEN WITH GLOBAL REACH 12 years of experience across the World within real estate fund of funds 1 Office INVESTORS NORDIC INSTITUTIONAL INVESTOR BASE 9 of the 15 largest institutional Danish investors 21 Investors 11 Employees 4 Funds 3 Continents 0.9 AUM (EUR bn) PRODUCTS REAL ESTATE FOCUSED FUND OF FUNDS Global real estate fund of funds investment managers in the smalland mid-cap segment SOLID TRACK RECORD Superior returns vs. benchmarks INREV, NCREIF, ANREV FOCUSED STRATEGY A leading global real estate fund of funds investment managers in the small- and mid-cap segment GEOGRAPHICAL FOOTPRINT 29% Americas 46% Europe 25% Asia 25
Acquisition #2: TRIUVA Closing of transaction on 1 January 2018 KEY FACTS COMPANY EUROPEAN PLATFORM More than 40 years of experience across Europe within real estate INVESTORS POWERFUL INSTITUTIONAL INVESTOR BASE More than 80 German speaking institutional investors and successfully attracting Asian capital PRODUCTS REAL ESTATE CORE (EUR 6.6bn AUM) Real estate investments, mostly office and retail in Europe 11 Countries 80 Investors 15 Offices 200 Employees REAL ESTATE EXTENDED (EUR 0.8bn AUM) Funds for special real estate strategies in logistics and healthcare CAVERNS (EUR 2.2bn AUM) Infrastructure investments in caverns, qualifying as RE investment LIQUIDATION (EUR 0.2bn AUM) Legacy funds, earmarked for liquidation within 2017 9.8 AUM (EUR bn) 40 Funds Note: Total AUM of EUR 9.8bn is including fund of funds business and liquidity within the funds 26
Acquisition #3: Rockspring Closing expected in Q1 2018 KEY FACTS COMPANY LONDON HEADQUARTER AND EUROPEAN PLATFORM More than 30 years of experience across Europe within real estate 7 Offices 110 Employees 7 Countries INVESTORS GLOBAL INSTITUTIONAL INVESTOR BASE >120 32% of investors outside Europe, 31% UK and no German investors Investors FUND MANAGEMENT CENTERED 100% COMMERCIAL REAL ESTATE FOCUS Pure commercial real estate investment focus, 52% retail DISCRETIONARY MANDATES AND SEPARATE ACCOUNTS Trans European Property series (approx. 20%) Hanover & Pan-European (approx. 16%) UK Value series (approx. 10%) VALUE ADD AND CORE MANATES 43% Value add/core+ 57% Core/Core+ INVESTOR BASE 12 Funds 68% n.a. 31% 32% 27% 5% 7 AUM (EUR bn) EUROPE Germany UK REST OF WORLD APAC North America 27
Following the acquisitions, PATRIZIA doubles AUM to EUR 38bn Combined Assets under Management (EUR bn) AUM BY COUNTRY TOTAL TOTAL AUM AuM 20.5 9.8 7.0 0.9 38.3 100% Germany 14.3 6.8 2.4 23.5 61% UK & Ireland 1.8 0.5 2.4 4.7 12% France 0.4 0.1 0.9 1.4 4% Netherlands 1.3 0.2 0.2 1.8 5% Rest of Europe 1.5 2.1 1.1 0.2 4.9 13% Rest of World 1.2 0.7 1.9 5% Resi 7.5 0.4 7.8 20% LEGEND x x x x Property Investors Property Investors AuM BY ASSET CLASS Office Retail Logistics/ Industrials Infrastructure 7.4 3.2 1.1 1.1 0.4 2.2 4.5 1.2 3.7 1.7 0.2 0.1 0.2 13.8 8.0 2.8 2.2 36% 21% 7% 6% 25% Europe FoF BY GEOGRAPHY 46% Americas FoF Others Fund-of-funds 1.4 0.9 1.6 0.4 0.2 3.5 0.9 9% 2% 29% Asia Pro-forma data as of Q3 2017, including SPI, TRIUVA and Rockspring 28
Acquisitions provide access to new investors, markets and products Key additions to PATRIZIA INVESTOR BASE MARKET COVERAGE PRODUCTS Strengthening existing investor base in DACH region Supporting coverage European markets and new offices in Dusseldorf, Brussels, Milan, Warsaw, Stockholm & Vienna Expanding product coverage to adjacent infrastructure asset class and offering all investors clear flagship vehicles Increasing global investor base, particularly in Asia and North America Establishing new investment hub in London and strengthening pan- European presence Adding capabilities in managing discretionary capital Expanding value-add capabilities Property Investors Providing access to majority of leading Danish institutional investors Enabling growth in overseas real estate markets Providing market insight through network of asset managers Expanding product coverage to fund-of-funds business Transition from DACH dominated to global investor base while consolidating DACH market position Extension of pan-european market coverage Establishment of foothold in overseas real estate markets Enhancement of existing product coverage Addition of discretionary capital, infrastructure and fundof-funds capabilities 29
Appendix 30
Consolidated Income Statement for the first nine months of 2017 9 months 2017 9 months 2016* EURk 01.01.-30.09.2017 01.01.-30.09.2016 Revenues 163,006 163,935 Income from the sale of investment property 268 1,153 Changes in inventories -19,359-20,617 Other operating income 13,152 6,330 Income from the deconsolidation of subsidiaries 1 3,691 Total operating performance 157,068 154,492 Cost of materials -11,411-15,737 Cost of purchased services -8,977-10,762 Staff costs -59,780-62,642 Other operating expenses -40,167-31,764 Income from participations 13,680 10,256 Earnings from companies accounted for using the equity method 2,109 3,936 Cost from the deconsolidation of subsidiaries -750 0 EBITDAR 51,772 47,779 Reorganisation expenses -3,578-13,732 EBITDA 48,194 34,047 Amortisation of fund management contracts, depreciation of software and fixed assets -4,234-4,799 Earnings before finance income and income taxes (EBIT) 43,960 29,248 Finance income 759 1,458 Finance costs -3,454-4,683 Currency result -2,106-6,721 Earnings before income taxes (EBT) 39,159 19,302 Income tax -8,866-8,467 Net profit/loss for the period 30,293 10,835 * Adjusted for Harald portfolio 31
Consolidated Balance Sheet as of 30.09.2017 Assets ASSETS in EURk 30.09.2017 31.12.2016 A. Non-current assets Goodwill 610 610 Other intangible assets 33,922 35,416 Software 10,769 10,772 Investment property 9,627 12,226 Equipment 4,768 4,460 Participations in associated companies 83,742 85,923 Participations 101,284 102,033 Loans 14,444 7,015 Long-term tax assets 0 35 Deferred taxes 280 323 Total non-current assets 259,446 258,813 B. Current assets Inventories 120,294 182,931 Securities 11,010 44 Short-term tax assets 6,796 11,941 Current receivables and other current assets 282,666 99,311 Bank balances and cash 531,949 440,219 Total current assets 952,715 734,446 TOTAL ASSETS 1,212,161 993,259 32
Consolidated Balance Sheet as of 30.09.2017 Equity and Liabilities EQUITY AND LIABILITIES in EURk 30.09.2017 31.12.2016 A. Equity Share capital 90,142 83,956 Capital reserve 139,402 184,005 Retained earnings Legal reserves 505 505 Non-controlling shareholders 1,691 1,691 Currency translation differences -11,267-10,803 Consolidated unappropriated profit 521,972 491,679 Total equity 742,445 751,033 B. Liabilities NON-CURRENT LIABILITIES Deferred tax liabilities 16,830 17,992 Retirement benefit obligations 693 648 Bonded loans 300,000 22,000 Non-current liabilities 6,083 6,866 Total non-current liabilities 323,606 47,506 CURRENT LIABILITIES Short-term bank loans 0 53,200 Bonded loans 22,000 5,000 Short-term financial derivatives 0 0 Other accruals 18,060 27,627 Current liabilities 80,833 75,343 Tax liabilities 25,217 33,550 Total current liabilities 146,110 194,720 TOTAL EQUITY AND LIABILITIES 1,212,161 993,259 33
Valued at EUR 1.8bn PATRIZIA is among the top players in the SDAX PATRIZIA SHARE PERFORMANCE as of 02.01.2018 EUR/share 25.00 Closing price YTD L6M L12M 20.00 EUR 19.74 2.1% 32.3% 31.8% 15.00 10.00 5.00 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ANALYST RECOMMENDATIONS as of 02.01.2018 PATRIZIA ON THE CAPITAL MARKET PATRIZIA is listed in the Prime Standard segment of Deutsche Börse AG and member of the SDAX index Initial listing on 31 March 2006 Market capitalisation as of 02.01.2018: EUR 1.8bn Average daily trading volume: ~190,000 shares In the past years PATRIZIA distributed bonus shares in a ratio of 10:1 instead of paying a dividend In 2017, PATRIZIA bought back own shares in a volume of approximately EUR 50m SHAREHOLDER STRUCTURE as of 02.01.2018 6 2 0 BUY HOLD SELL target price: EUR 21.74 resulting upside: +10.2% 29% 10% First Capital Partner GmbH* 3% 3% 3% 52% WA Holdings, Inc. (Wasatch) Union Investment Privatfonds GmbH PATRIZIA Immobilien AG Other institutional shareholders Private shareholders Source: Thomson Reuters, Share register; * First Capital Partner is attributable to CEO Wolfgang Egger 34
Successful completion of share buy-backs RATIONALE Key rationale: Use shares as additional M&A currency Increase flexibility in purchase price consideration Avoid dilution of existing shareholders Align goals of target s existing management team with PATRIZIA Other options include cancellation of shares and employee participation programmes STRUCTURE In August 2017, PATRIZIA announced a public share buy-back offer aiming to buy back up to 2.3m shares In the course of this offer, the Company acquired 2,011,980 PATRIZIA shares at a purchase price of EUR 17.40 per share A subsequent share buy-back programme of up to EUR 15.0m was completed on 30 October 2017 As of 30 October 2017, PATRIZIA held a total of 2,796,417 treasury shares (3.03% of shares outstanding) 35
PATRIZIA KinderHaus Foundation: Building a future together With the Foundation established by Wolfgang Egger in 1999, PATRIZIA is transforming its economic success into social commitment The Foundation is active worldwide and focused on building schools, children hospitals and orphanages 100% of donations go into the projects; administration costs are met by PATRIZIA Immobilien AG ACCOMPLISHMENTS The Foundation has already realised projects on 4 continents in Africa, Asia, Europe and South America In cooperation with local partners a total of 15 PATRIZIA KinderHäuser (children s homes) have been built Thereby the Foundation has provided more than 150.000 children a chance for a better future Further projects are in the pipeline For more information visit https://kinderhausstiftung.de/?lang=en 36
Financial calendar 2018 March 15 Financial statements 2017 May 9 Interim report for the first quarter of 2018 June 20 Annual General Meeting, Augsburg August 7 Interim report for the first half of 2018 November 14 Interim report for the first nine months of 2018 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 37
Contact details KARIM BOHN CFO MARTIN PRAUM GROUP HEAD OF IR PATRIZIA Immobilien AG PATRIZIA Bürohaus Fuggerstrasse 26 86150 Augsburg Germany T +49 821 50910-402 F +49 821 50910-399 M +49 151 19685445 martin.praum@patrizia.ag LAURA WANZL MANAGER IR VERENA SCHOPP DE ALVARENGA MANAGER IR T +49 821 50910-347 F +49 821 50910-399 M +49 151 41411174 laura.wanzl@patrizia.ag T +49 821 50910-351 F +49 821 50910-399 verena.schoppdealvarenga@ patrizia.ag Disclaimer This document does not constitute an offer or invitation to purchase or subscribe for any securities, and neither this document nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer of securities or commitment to make an offer whatsoever in any jurisdiction. This document contains specific forward-looking statements that relate in particular to the business development of PATRIZIA and the general economic and regulatory environment and other factors to which PATRIZIA is exposed. These forward-looking statements are based on current estimates and assumptions by the Company made in good faith, and are subject to various risks and uncertainties that could render a forward-looking estimate or statement inaccurate or cause actual results to differ from the results currently expected. PATRIZIA does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this publication. Due to commercial rounding of figures and percentages small deviations may occur. 38