Public Credit Suisse Investment Foundation Real Estate Germany Opening 2018 Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018
Overview Key Information in Brief and Facts on the Opening Product Overview Global Real Estate Team- CSA Real Estate Germany Real Estate Market in Germany Properties in the Portfolio Global Real Estate International January 2018 2/27
CSA Real Estate Germany Key Information in Brief Opening with a subscripiton period until April 2018. The capital will be used to further expand the portfolio and to reduce debt capital in the short term. With the purchases recently made and the current purchasing commitments of CHF 130 million, the debt financing ratio is approximately 30%. Another real estate pipeline with some CHF 120 million and a gross yield of 5.7% has already been identified. Source: Credit Suisse Asset Management (Switzerland) Ltd. Historical performance data and financial market scenarios are not reliable indicators of future performance Global Real Estate International January 2018 3/27
CSA Real Estate Germany Facts on the Opening Investor group Subscription period Tax-exempt pension funds domiciled in Switzerland April 30, 2018, 12:00 noon (CET) Value date May 31, 2018 Issue price Issuing premium Indicative price: CHF 1,249.65 per unit (NAV as of December 31, 2017); the NAV as of March 31, 2018, is definitive 1% will be put into the investment group assets Identification of units Security number: 23 547 751 ISIN: CH0235 477 517 Source: Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018 4/27
CSA Real Estate Germany Portfolio Expansion Purchases and Purchasing Commitments Location Usage Purchase Price Gross Yield Commencement Münster, Monasterium Commercial property (office/retail) CHF 35.0 million 5.3% 01.11.2017 Cologne, Haubrichforum Medical practices with residential and retail zoning CHF 27.0 million 5.0% 04.12.2017 Düsseldorf, The Frame Office property CHF 30.0 million 5.5% 31.12.2017 Duisburg, ICC Business Center Office property CHF 38.6 million 6.4% 30.04.2018 Intended Purchases Location Usage Purchase Price Gross Yield Commencement Troisdorf, Logistics Logistics CHF 20.0 million 6.5% Spring 2018 Bochum, Kortumstrasse Commercial property (office / retail) CHF 57.5 million 5.6% Spring 2018 Erlensee Logistics CHF 35.8 million 5.9% Spring 2018 Total current purchases, purchasing commitments and intended purchases CHF 245 million 5.7% 2017/18 Source: Credit Suisse Asset Management (Switzerland) Ltd. Historical performance data and financial market scenarios are not reliable indicators of future performance Global Real Estate International January 2018 5/27
CSA Real Estate Germany Properties Acquired Münster, Monasterium Purchase price CHF 35.0 million Gross yield 5.3% Construction date 1994/2001 Usage Commercial property (office and retail) Weighted average lease 8.2 years Cologne, Haubrichforum Purchase price CHF 27.0 million Gross yield 5.0% Construction date 1989 / Renovated 2009 Usage Medical practices with retail/residential properties Weighted average lease 4.5 years Source: Credit Suisse Asset Management (Switzerland) Ltd. Historical performance data and financial market scenarios are not reliable indicators of future performance Global Real Estate International January 2018 6/27
CSA Real Estate Germany Properties Acquired and Certified Dusseldorf, The Frame Investment volume CHF 32.7 mn Gross yield 5.5% Construction date 1974 / Exterior renovations 2006 Interior renovations 2017/18 Usage Office property Weighted average lease 11 years Duisburg, ICC Business Center Purchase price CHF 38.6 million Gross yield 6.4% Construction date 2002 Usage Office property Weighted average lease 5.9 years Source: Credit Suisse Asset Management (Switzerland) Ltd. Historical performance data and financial market scenarios are not reliable indicators of future performance Global Real Estate International January 2018 7/27
Product Overview Profile First Swiss investment foundation with investment focus on commercial investment properties in Germany Only Swiss pension funds that are zero rated for tax purposes are approved as investors The units are valued each quarter on the basis of the net asset value (NAV) - no premium / discount Reinvestment of profits (no distribution) The product currency is the Swiss franc (CHF) the euro risk is not hedged Maximum of one-third debt capital Source: Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018 8/27
Product Overview Success Factors Economic development in Germany is creating growth and yield potential in the real estate market. Liquid real estate market with a high transaction volume; this opens up interesting investment opportunities. NAV-based real estate investment group offers attractive entry opportunities (without premium). Diversification compared to Swiss real estate products; the real estate markets in Switzerland and Germany behave differently. Global Real Estate has a long track record in the German real estate market. Source: Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018 9/27
Product Overview Investment Strategy Growth market Investment focus Diversification Earnings and value orientation The real estate market in Europe's largest economy offers attractive growth potential (positive rent growth, declining vacancy rates). The focus is on commercial real estate in Germany. More than 20 cities with over 200,000 residents have been identified as target markets. The portfolio is broadly diversified both geographically and in terms of property types, with commercial real estate in economically powerful and central locations in Germany. Earnings and value potential is identified and exploited in a targeted manner thanks to proactive asset management and by establishing clearly defined property strategies. Source: Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018 10/27
Product Overview Data Report Annual Financial Statements as of 30.06.2015 30.06.2016 30.06.2017 Total assets in CHF mn 207.0 283.3 402.55 Net assets in CHF mn 179.1 250.7 357.90 Asset value per unit in CHF 950.05 1,051.03 1,131.55 Rate of loss of rental income 9.20% 7.33% 4.24% Debt financing ratio 25.04% 12.80% 10.60% Leverage ratio 13.49% 11.50% 11.09% Operating profit margin (EBIT margin) 87.57% 73.51% 80.59% Operating expense ratio (TER ISA ) GAV 0.77% 0.82% 0.84% Operating expense ratio (TER ISA ) NAV 0.89% 0.94% 1.02% Return on equity (ROE) -1.21% 8.28% 7.13% Return on invested capital (ROIC) -2.72% 8.53% 6.71% Investment return -4.99% 10.63% 7.66% Average discount rate real/nominal 4.97% / 6.44% 4.23% / 5.79% 4.14% / 5.71% Source: Data report as of June 30, 2017 Historical performance data and financial market scenarios are not reliable indicators of future performance Global Real Estate International January 2018 11/27
Product Overview Development of investment return Performance Attribution 15% 10% 10.63% 7.66% 5% Cashflow-Rendite yield 0% -5% -10% -4.99% 1) Bewertungen Valuation Fremdwährungs-Effekte Effect of FX Anlagerendite Total Total investment return -15% 2014/15 2015/16 2016/17 1) The figures from 2014 (with the exception of the investment return) are approximate / launched in 2014 Historical performance data and financial market scenarios are not reliable indicators of future performance Source: Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018 12/27
Product Overview Broad Diversification Number of properties Market value CHF Up to CHF 10 mn CHF 10-20 mn CHF 20-50 mn More than CHF 50 mn Source: Data report as of June 30, 2017 Global Real Estate International January 2018 13/27
Product Overview Ten Largest Tenants Tenant Property Lease Ends Share TJX (TK Maxx / Department store chain) Pforzheim / Singen 28.02.2025* 7.0% DPD (logistics service) Ludwigsburg 28.02.2026 5.9% State of Baden Württemberg Stuttgart, Heilbronner Str. 31.10.2024 5.5% Sumitomo Dusseldorf, Glockhaus 30.06.2019 4.4% BDO AG Dusseldorf, Glockhaus 30.09.2022 3.9% Hennes & Mauritz SA Singen, August-Ruf-Str. 30.09.2023 3.6% KPMG Leipzig, Münzgasse 30.04.2019 3.1% Joey's Pizza Service Hamburg, Kontorhaus 31.05.2019 1.9% L'ORÉAL Deutschland GmbH Dusseldorf, Glockhaus 31.12.2017 1.8% TARGOBANK Dusseldorf, Glockhaus 30.04.2021 1.5% *Weighted average of leases by annual income Source: Credit Suisse Asset Management (Switzerland) Ltd. Last data point: June 30, 2017 Global Real Estate International January 2018 14/27
Product Overview Remaining Term of Leases 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5-6 years 6-7 years 7-8 years 8-9 years 9-10 years > 10 years Source: Credit Suisse Asset Management (Switzerland) Ltd. Last data point: 30.06.2017 Global Real Estate International January 2018 15/27
Global Real Estate Team - CSA Real Estate Germany Proven Experience Operational Management Radhia Rüttimann Product Manager Peer Petersen Acquisitions and Sales Europe Bernd Wesendahl Asset Management Germany Sven Walter Construction & Development Zoltan Szelyes Head of Global Real Estate Strategy Hanspeter Streule Finance Manager Investment Committee Christoph Schumacher Head of Global Real Estate Francisca Fariña Fischer Head of Real Estate International Karl-Josef Schneiders Head of Real Estate Germany Source: Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018 16/27
Real Estate Market in Germany Economic Development 45 40 35 30 25 20 15 10 5 0 Employment in mn Unemployment rate in % (RHS) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E 10 9 8 7 6 5 4 3 2 1 0 Positive macroeconomic environment expected to continue CS Research forecasts economic growth of 2.7% in 2018 Private consumption continues to offer significant support and is driven by the strong labor market Source: Credit Suisse Asset Management (Switzerland) Ltd., Eikon These forecasts are not reliable indicators of future performance Global Real Estate International January 2018 17/27
Real Estate Market in Germany Rental Markets in Germany The robust conditions on the demand side are likely to lead to further rent increases Prime office rents in EUR per sq.m 3.5 3.0 Office Retail Rental price forecasts for prime rents 2018-2021 per year on average in % 2.5 2.0 1.5 1.0 0.5 0.0 Munich Berlin Dusseldorf Cologne Frankfurt Hamburg Stuttgart Source: Credit Suisse, PMA; last data point September 2017 Global Real Estate International January 2018 18/27
German Real Estate Market Volatility and Total Returns Annualized volatility (MSCI / IPD total returns 2002-2016) Total returns p.a. in % Historical performance data and financial market scenarios are not reliable indicators of future performance Source: Credit Suisse, MSCI/IPD; last data point December 2016 Global Real Estate International January 2018 19/27
Properties in the Portfolio CSA Real Estate Germany
Properties in the Portfolio Dusseldorf, Glockhaus Frankfurt, Feldbergstrasse Cologne, Hohenstaufenring Stuttgart, Heilbronner Strasse Year of construction: 2001 CHF 54.7 million 16.2% of the portfolio Office property Year of construction: 1972/2007 CHF 40.1 million 11.9% of the portfolio Office property Year of construction: 1967/2005 CHF 27.0 million 8.0% of the portfolio Business property (office and retail) Year of construction: 1976/2009 CHF 17.0 million 5.1% of the portfolio Office property Source: Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018 21/27
Properties in the Portfolio Berlin, Alte Jakobstrasse Berlin, Friedrichstrasse Hamburg, Kontorhaus Leipzig, Münzgasse Year of construction: 2012 CHF 17.6 million 5.2% of the portfolio Business property (office and retail) Year of construction: 2012 CHF 41.2 million 12.2% of the portfolio Business property (office and retail) Year of construction: 1957/2004 CHF 12.9 million 3.8% of the portfolio Office property Year of construction: 1996/97 CHF 9.7 million 2.9% of the portfolio Office property. 5.2% of the portfolio Office property Source: Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018 22/27
Properties in the Portfolio Singen, August-Ruf- Strasse Pforzheim, Karl-Friedrich- Strasse Stuttgart, Hirschstrasse Ludwigsburg, Carl-Benz- Strasse Year of construction: 1965/2012 CHF 25.9 million 7.7% of the portfolio Retail property Year of construction: 1980/2014 CHF 17.6 million 5.2% of the portfolio Business property (office and retail) Year of construction: 1956/1992 CHF 10.8 million 3.2% of the portfolio Business property (office and retail) Year of construction: 1986 CHF 15.7 million 4.6% of the portfolio Logistics property Source: Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018 23/27
Properties in the Portfolio Regensburg, Posthof Year of construction: 1927/2002 CHF 47.0 million 13.9% of the portfolio Business property (office and restaurants) Source: Credit Suisse Asset Management (Switzerland) Ltd. Historical performance data and financial market scenarios are not reliable indicators of future performance Global Real Estate International January 2018 24/27
Credit Suisse Investment Foundation Real Estate Germany Your Contacts Radhia Rüttimann Real Estate Portfolio Manager Director Ulrich Braun Real Estate Strategies & Advisory Managing Director radhia.ruettimann@credit-suisse.com Tel. +41 44 334 81 74* ulrich.braun@credit-suisse.com Tel. +41 44 332 58 08* * Please note that telephone calls to these numbers may be recorded. We assume that, by calling us, you accept this business practice. Source: Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate International January 2018 25/27
Credit Suisse Investment Foundation Real Estate Germany Risks and Risk Mitigation Risk Mitigation Limited liquidity compared with larger listed investment products The values of properties may fluctuate, for example due to the following: Unfavorable changes in supply or demand that negatively impact the acquisition/sale or rental of properties Development of interest rates and/or currencies Taxes or changed regulatory conditions in the respective markets Environmental risks Disasters Force majeure and terrorism Thorough due diligence prior to purchase of any property Continuous monitoring of individual investments, rental markets and the macroeconomic environment by our Global Real Estate Strategy team Local internal and external experts on regulatory framework conditions and taxes Broad portfolio diversification through carefully selected properties Investments primarily through equity and a carefully selected level of debt capital absorb negative interest rate developments Global Real Estate International January 2018 26/27
Disclaimer The information provided herein constitutes marketing material. It is not investment advice or otherwise based on a consideration of the personal circumstances of the addressee nor is it the result of objective or independent research. The information provided herein is not legally binding and it does not constitute an offer or invitation to enter into any type of financial transaction. The information provided herein was produced by Credit Suisse Group AG and/or its affiliates (hereafter "CS") with the greatest of care and to the best of its knowledge and belief. The information and views expressed herein are those of CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness of the information and does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. Neither this information nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). It may not be reproduced, neither in part nor in full, without the written permission of CS. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor's reference currency. The key risks of real estate investments include limited liquidity in the real estate market, changing mortgage interest rates, subjective valuation of real estate, inherent risks with respect to the construction of buildings and environmental risks (e.g., land contamination). Credit Suisse Investment Foundation, Zurich, is the issuer and manager of CSA products. Credit Suisse (Switzerland) Ltd, Zurich, is the custodian bank. The articles of incorporation, regulations and investment guidelines, as well as the most up-to-date annual report and fact sheets, may be obtained free of charge from the Credit Suisse Investment Foundation. Only pension funds domiciled in Switzerland that are not subject to tax are permitted as direct investors. Copyright 2018 Credit Suisse Group AG and/or its affiliates. All rights reserved. Global Real Estate International January 2018 27/27