Mobimo Holding AG

Interim / Quarterly Report • Aug 3, 2018

HALF-YEAR RESULTS

Halbjahresergebnis

The financial data as well as the other information presented herein constitute selected information.

The information in this presentation does not constitute an offer or invitation and may not be construed as a recommendation by us to purchase, hold or sell shares of Mobimo Holding AG. This information or any copy thereof may not be sent or taken to or distributed in any jurisdiction in which such transmission or distribution is unlawful. This document may contain certain "forward-looking" statements. By their nature, forwardlooking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements.

• 1. Overview of the first half of 2018
• 1. Key financial figures first half of 2018
• 1. Real estate portfolio and pipeline
• 1. Focus and outlook

1. OVERVIEW OF THE FIRST HALF OF 2018

Horgen, Seehallen

Half-year results 2018

37.9 Profit CHF million

Satisfactory half-year result, down on the same period last year in line with expectations

HY|2017: 63.3 54.7 Rental income

CHF million HY|2017: 56.4

Rental income down slightly year-on-year due to changes in the portfolio

6.04 Earnings per share CHF HY|2017: 10.03

Attractive earnings per share thanks to solid half-year result 3.9

Profit on development projects and sale of trading properties CHF million HY|2017: 13.3

Income generated mainly from the sale of ten condominiums

Friendly takeover of Immobiliengesellschaft Fadmatt AG

Friendly takeover of Immobiliengesellschaft Fadmatt AG

Key figures for the takeover

• After successfully signing the transaction agreement, Mobimo has submitted an offer of CHF 28,000 per share to the Fadmatt shareholders.
• At least half of the purchase price of CHF 182.6 million will be paid in the form of newly created registered shares from Mobimo's authorised capital.
• 96% of the Fadmatt shares had been tendered by the end of the offer period on 18 July 2018.
• The transaction is expected to be completed on 22 August 2018.
• The real estate portfolio of Immobiliengesellschaft Fadmatt AG is split between seven good locations in the cantons of Zurich and Schaffhausen.
• The portfolio is in a healthy condition after extensive renovation work and the construction of a replacement building.
• The portfolio has a total value of CHF 289 million and comprises 503 apartments which generate rental income of more than CHF 10 million per year.

Rental income by type of use

Additional rental income from 2018 onwards

CHF million/% Forecast for the change in rental income up to 2020 CHF million

^¢ ¢ Expected change in rental income (assuming vacancy ¢ ¢ rate remains unchanged and excluding any sales)

Developments for our own portfolio: + CHF 27 million target rental income p.a.

• Aarau, Site 2 (Torfeld Süd)
• Horgen, Seestrasse 93 (Seehallen)
• Zurich, Hohlstrasse 485; Albulastrasse 30 40
• Aarau, Bahnhofstrasse 102 (Relais 102)
• Kriens, Am Mattenhof 4, 6, 8, 12/14, 16
• Lausanne, Rue de la Vigie 3
• Lausanne, Ave. Edouard Dapples 9, 13, 15, 15a (GMR)

Fadmatt portfolio

+ CHF > 10 million target rental income p.a.

Market environment

Political/economic environment

• Switzerland is an attractive location for real estate investment
• Positive economic outlook
• Interest rates remain low
• Political risks

Market for office/commercial space

• Continued competitive environment in the commercial space market
• Fierce competition in the retail sector
• Intact demand for cheap commercial space
• Switch to flexible working spaces

Rental apartment market

• High levels of demand, particularly in the mid- and low-price segments in city centres and areas close to centres
• High level of residential construction activity in peripheral areas is leading to higher vacancy rates

Development for Third Parties

Intact demand for development services and investment opportunities

Transaction market

• Demand for investment properties remains stable
• Stable real estate prices expected

Condominiums

• Low interest rates lead to high demand, particularly in the low- and mid-price segments
• Desire to own property
• Low financing costs, but high equity requirement

2. KEY FINANCIAL FIGURES FIRST HALF OF 2018

Key income statement figures

CHF million	2015	2016	HY 2017	HY 2018	Δ y-o-y
Net rental income	94.1	96.2	48.6	45.4	- 6.5%
Direct cost/income ratio for rented properties	13%	16%	14%	17%	21.4%
Profit on development projects and sale of trading properties	5.5	23.9	13.3	3.9	- 70.9%
Gross margin	6%	16%	15%	12%	20.0% -
Net income from revaluation	34.7	80.7	30.6	17.7	- 42.1%
Profit on disposal of investment properties	63.8	34.9	17.8	6.8	- 62.0%
EBIT including revaluation	170.4	200.3	92.9	57.3	- 38.3%
EBIT excluding revaluation	135.7	119.6	62.3	39.6	- 36.5%
Tax expense	- 34.1	- 15.1	- 16.0	- 7.9	- 50.7%
Profit	105.0	159.4	63.3	37.9	- 40.1%

Key income statement figures

CHF million	2015	2016	HY 2017	HY 2018		Δ y-o-y
Profit attributable to the shareholders of MOH	103.9	158.7	62.4	37.6	-	39.8%
Profit attributable to the shareholders of MOH excluding revaluation	78.6	99.4	40.1	24.4	-	39.3%
EPRA earnings per share (CHF)	8.17	8.27	4.05	3.88		- 4.2%
EPRA like-for-like rental growth	0.8%	0.4%	- 0.1%	0.0%		nmf
%	2015	2016	2017	HY 2018		Δ y-o-y
Vacancy rate	4.7	4.8	4.9	5.1		4.1
Gross yield from investment properties	5.4	5.3	5.1	5.1		0.0
Net yield from investment properties	4.3	4.1	4.0	4.0		0.0

Rental income and vacancy rate

Rental and net rental income

CHF million/% CHF million/%

Fair value of overall portfolio

CHF million

• ¢ ¢ Rental income
• Net rental income
• Vacancy rate

Revaluation income on investment properties

Breakdown of revaluation income

• 1 Commercial investment properties 2 Residential investment properties

• 3 Development properties (Commercial properties) 4 Properties under construction

• TCHF The successful development of properties from the pipeline creates added value for the company's own portfolio from operational performance.

• CHF 18.0 million of the revaluation income can be attributed to investment properties under construction.
• For the DCF valuations as at 30 June 2018, the average capital-weighted nominal discount rate was 4.09% (as at 31 December 2017: 4.10%), within a range from 3.40% to 6.30% (as at 31 December 2017: 3.40% to 6.30%).
• The average capital-weighted capitalisation rate was 3.60% (as at 31 December 2017: 3.60%), within a range from 2.90% to 5.80% (as at 31 December 2017: 2.90% to 5.80%).

1. Overview of the first half of 2018 | 2. Key financial figures first half of 2018 | 3. Real estate portfolio and pipeline | 4. Focus and outlook

Refinancing

CHF million

Financing structure Performance of bonds

CHF million

3. REAL ESTATE PORTFOLIO AND PIPELINE

Performance of overall portfolio

CHF million	2017	HY 2018	Δ y-o-y	Share in %
Investment properties	2,112	2,049	- 3.4%	73
Commercial properties	1,381	1,357	- 1.7%	49
Residential properties	731	684	- 6.4%	24
Development properties	687	773	12.5%	27
Commercial properties (investment)	268	314	17.2%	11
Commercial properties (trading)	55	54	- 1.8%	2
Residential properties (investment)	217	259	19.4%	9
Residential properties (trading)	147	146	- 0.7%	5
Total value	2,799	2,814	0.5%	100

Rental income for investment properties by type of use

in %

1. Overview of the first half of 2018 | 2. Key financial figures first half of 2018 | 3. Real estate portfolio and pipeline | 4. Focus and outlook

Long-term maturity profile and diversified tenant structure

Maturity profile of fixed-term rental agreements¹

¹ Excluding rental agreements of unlimited duration.

The top 5 tenants

in %

1 SV (Schweiz) AG 2 Swisscom Group 3 Senevita AG 4 Coop 5 Rockwell Automation Switzerland 6 Other tenants

Project pipeline: developments for our own portfolio

Investment properties for our own portfolio

Site development: > CHF 1 billion

1. Overview of the first half of 2018 | 2. Key financial figures first half of 2018 | 3. Real estate portfolio and pipeline | 4. Focus and outlook

Horgen, Seehallen (occupation from Q1 2018)

Rentable area m²

16,280

Investment volume CHF million

55

Expected rental income CHF million p.a. 3.0

Level of occupancy as a % of target rental income 62%

Zurich, Labitzke site (occupation from Q2 2018)

Rentable area m²

15,660

Apartments/studios Number

+ commercial space

Investment volume CHF million

(excluding Development for Third Parties)

Expected rental income CHF million p.a. 5.1

110

201

Level of occupancy

as a % of target rental income 100%

1. Overview of the first half of 2018 | 2. Key financial figures first half of 2018 | 3. Real estate portfolio and pipeline | 4. Focus and outlook

Aarau, Aeschbachquartier, Site 2 (occupation from Q3 2018)

Rentable area m²

19,650

Apartments/studios Number

+ commercial space

Investment volume CHF million (excluding Development for Third Parties)

Expected rental income

107

167

CHF million p.a. 5.1

Level of occupancy as a % of target rental income 36%

1. Overview of the first half of 2018 | 2. Key financial figures first half of 2018 | 3. Real estate portfolio and pipeline | 4. Focus and outlook

Aarau, Relais 102 (occupation from Q4 2018)

Rentable area m²

13,670

Investment volume CHF million

42

Expected rental income CHF million p.a. 2.2

Level of occupancy as a % of target rental income 83%

Kriens, Mattenhof (occupation from Q1/Q2 2019)

Rentable area m²

37,800

Apartments/studios

Number

+ commercial space

129

Investment volume

CHF million (excluding Development for Third Parties)

Expected rental income CHF million p.a. 10.1

172

Level of occupancy as a % of target rental income 60%

1. Overview of the first half of 2018 | 2. Key financial figures first half of 2018 | 3. Real estate portfolio and pipeline | 4. Focus and outlook

Lausanne, Grand Mont Riond (occupation from Q1 2020)

Rentable area m²

7,310

Apartments/studios

Number

+ commercial space

Investment volume CHF million

37

56

Expected rental income CHF million p.a. 1.5

Level of occupancy

1. Overview of the first half of 2018 | 2. Key financial figures first half of 2018 | 3. Real estate portfolio and pipeline | 4. Focus and outlook

4,800

Lausanne, Hotel Moxy in Flon (occupation from Q4 2019)

Rentable area m²

Hotel rooms number

Investment volume CHF million

113

26

Expected rental income CHF million p.a. 1.2

100% Level of occupancy as a % of target rental income

Project pipeline: Development for Third Parties

Condominiums for sale

Development for Third Parties: CHF 800 million

Varied site development throughout Switzerland

4. FOCUS AND OUTLOOK

Focus and outlook

Real estate portfolio

• Reliable realisation and successful marketing of current construction projects
• Further increase in quality and growth of the company's own portfolio through developments, sales and acquisitions
• Integration of the Fadmatt properties into Mobimo's own portfolio
• Consistent progress with the development projects in Lausanne (train station, Rasude and Colombo), Biel/Bienne (Agglolac) and Zurich (Rheinmetall site)

Operating business

• Potential target rental income to increase by CHF 37 million p.a. up to the end of 2020
• Election of the new CEO

Strategy

• Investments are only made when the elements of price, location and future prospects come together in such a way as to create added value for shareholders
• Continuation of the shareholder-friendly distribution policy
• Continued development of the sustainable approach

Digitisation

Successful introduction of the digital tenants' portal and e-mobility for Mobimo tenants

Your contact persons

Dr. Christoph Caviezel CEO

christoph.caviezel@mobimo.ch manuel.itten@mobimo.ch

Manuel Itten CFO

Financial calendar

• 8.2.2019 Publication of annual results 2018
• 2.4.2019 Annual General Meeting

E-mail: ir@mobimo.ch Tel: 044 397 11 95

APPENDIX

Long-term strategy for growth and stable returns

Solid financing

Development projects and sale of trading properties

Income and profit from development projects

CHF million

• ¢ ¢ Income
• Profit

Application of the POC method

• and sale of trading properties Profit on development projects and sale of trading properties of CHF 3.9 million was generated mainly from the sale of ten condominiums.
• Mobimo is to apply the provisions of IFRS 15 from the 2018 financial year onwards. As a result, income from condominium sales will be recognised from the date specified on the publicly notarised purchase contract.

Key balance sheet figures

	2015	2016	2017	HY 2018	Δ y-o-y
Equity (CHF million)	1,264.7	1,366.3	1,399.1	1,379.8	- 1.4%
as a % of total assets	42.8%	45.1%	43.8%	43.7%	- 0.2%
Deferred tax liabilities, net (CHF million)	160.7	156.0	159.1	156.6	- 1.5%
as a % of total assets	5.4%	5.1%	5.0%	5.0%	0.0%
Interest-bearing debt (CHF million)	1,366.7	1,349.4	1,512.8	1,507.9	- 0.3%
as a % of total assets	46.3%	44.5%	47.3%	47.7%	0.8%
Loans (CHF million)	854.2	836.4	774.2	769.0	- 0.7%
Bonds (CHF million)	512.5	513.0	738.6	738.8	0.3%
Non-current capital (liabilities and equity) as a % of total assets	95.3%	93.3%	91.0%	89.0%	- 2.2%
Ø interest rate (period)	2.46%	2.38%	2.17%	2.12%	- 2.3%
Interest coverage ratio	4.6	3.9	3.8	2.7	- 28.9%
Net gearing	90.4%	86.0%	91.2%	93.2%	2.2%

Acquisition and disposals in the first half of 2018

Acquisition Disposals

Horgen, Allmendgütlistrasse 35 and 39

Site area 3,722 m²

Condominiums planned

Greater Geneva area, 6 properties

Rentable area 9,426 m²

Target rental income CHF 2.5 million

Lucerne, Alpenstrasse 9

Rentable area 1,986 m²

Target rental income CHF 0.6 million

Neuhausen, Victor-von-Bruns-Strasse 19

Rentable area 2,631 m²

Target rental income CHF 0.7 million

Updates on projects and properties: Development for Third Parties

Rentable area m2 8,941
Apartments Number 28
Nursing rooms and Tertianum apartments Number 111

Martigny (occupation from Q3 2020) Schaffhausen, Salaia (occupation from Q3 2020)

Updates on projects and properties: Development for Third Parties

Killwangen (occupation from Q4 2020) Zurich, Manegg (occupation from Q1 2022)

271 Expected rental income p.a. 6.1

Current sustainability subjects

• Mobimo's report for the 2017 reporting year was prepared for the first time in accordance with the EPRA Sustainability Best Practice Recommendations Mobimo EPRA sBPR report 2017
• The results of the awards will be announced on 5 September 2018

EPRA sBPR Horgen, Seehallen

Completion: First half of 2018

Photovoltaic system, which will be used as follows:

• General electricity coverage
• Tenants can draw electricity for a fee
• Energy feeds back into the EKZ grid

Concentration in key economic areas

Target rental income of investment properties by region

CHF million

Geographical breakdown (fair value of overall portfolio)

%

• 1 French-speaking Switzerland
• 2 Zurich
• 3 North-western Switzerland
• 4 Central Switzerland
• 5 Eastern Switzerland

Solid foundation for qualitative growth

Equity ratio % Equity ratio in % Target > 40% 44.2 42.8 45.1 42.8 43.7

• Target of > 40% continues to be met
• Capital base still solid

Interest coverage factor

• • Target of > 2 comfortably exceeded Substantially below the maximum limit of 150%
  • High degree of financing leeway

Share data

	2015	2016	2017	30.6.2018	Δ y-o-y
Issued shares (number)	6,218,170	6,218,170	6,218,170	6,218,170	0.0%
Share capital (CHF million)	180.3	180.3	180.3	145.5	- 19.3%
Market capitalisation (CHF million)	1,384.8	1,584.1	1,626.1	1,672.7	2.9%
NAV per share (CHF)1	202.45	217.33	222.58	219.47	- 1.4%
EPRA NAV per share (CHF)	244.06	258.53	259.94	255.09	- 1.9%
Year-end price (CHF)	222.70	254.75	261.50	245.00	- 6.3%

¹ As at 30 June 2018, the NAV corresponded to the diluted NAV

%

Positive share price performance

Share performance (indexed) compared with SPI and SXI

Source: SIX Swiss Exchange

• Outperformed indices in a five-year comparison.
• Average annual performance (total return) of 6.0% since the initial public offering in June 2005.
• The share price fell by 6.3% from CHF 261.50 at the start of the year to CHF 245.00 as at 30 June 2018.
• As at 30 June 2018, Mobimo Holding AG's share price of CHF 245.00 was 11.6% above the diluted NAV of CHF 219.47.
• Liquidity remains good
• An average of some 7,287 shares were traded each day (first half of 2017: 8,567).
• Generating half-year revenues of around CHF 228.5 million (first half of 2017: CHF 282.0 million).

Composition of shareholders

Shareholder structure in %

1 Pension funds, insurers, banks 2 Shares pending registration 3 Individuals 4 Foundations, funds 5 Other companies

• Free float as at 30 June 2018: 100% (as per SIX Swiss Exchange definition)
• As at 30 June 2018, the following shareholders held 3% or more of the share capital:
• BlackRock, Inc., 4.98%
• Zuger Pensionskasse, 3.38%
• Credit Suisse Funds AG, 3.10%
• UBS Fund Management (Switzerland) AG, 3.10%
• Dimensional Holdings Inc., 3.00%

Project pipeline

	Project/use	2018	2019	2020	2021
	Investment properties for our own portfolio
Under construction	Aarau, Site 2 (Torfeld Süd): 6 residential/office buildings, 167 apartments
CHF 490 million (PY: CHF 470 million)	Horgen, Seestrasse 93 (Seehallen): Commercial and retail
	Zurich, Hohlstrasse 481 – 485b; Albulastrasse 30 – 40: 10 office/commercial units, 201 apartments
	Aarau, Bahnhofstrasse 102 (Relais 102): Refurbishment of commercial space incl. clearance of hazardous materials
	Kriens, Am Mattenhof 4, 6, 8, 12/14, 16: Office, retail, hotel, 129 apartments
	Lausanne, Rue de la Vigie 3
	Lausanne, Avenue Edouard Dapples 9, 13, 15, 15a (GMR): Renovation of residential property
In planning CHF 470 million (PY: CHF 370 million)	Zurich, Im Tiergarten 7
	Lausanne, Rue de Genève 19/21 (Jumeaux): Retail, office, storage
	Dübendorf, Zürichstrasse 98
	Lausanne, Rue des Côtes-de-Montbenon 8 – 14: Residential, office, retail
	Zurich, Allmendstrasse 92 – 96 (Manegg): Residential
	Lausanne, Rasude site development: Urban development
	Condominiums for sale and Development for Third Parties
Under construction CHF 0 million (PY: CHF 0 million)	No projects under construction as of the reporting date
In planning	Schaffhausen, Fischerhäuserstrasse 61: 11 apartments, 10 parking spaces
CHF 150 million (PY: CHF 150 million)	Lachen, Zürcherstrasse 19: 8 apartments, 13 parking spaces
	Merlischachen, Chappelmatt-Strasse (Burgmatt): 78 apartments, 140 parking spaces
	Meggen, Gottliebenrain 5/7: 30 apartments, 45 parking spaces, commercial
	Weggis, Hertensteinstrasse 105: Open

The 15 biggest properties1

Address	Fair value as at 30.6.2018 in TCHF	Usage
Lausanne, Horizon 4 – 6 Avenue d'Ouchy 4 – 6	127,840	Commercial property
Zurich, Mobimo Tower Hotel Turbinenstrasse 20	122,190	Hotel
Affoltern a. A., Obstgartenstr. 9/ Alte Obstfelderstr. 27/29, 31 – 35	108,520	Retirement home, retirement and rental apartments
Lausanne, Ilot du Centre Rue Beau-Séjour 8	103,760	Rental apartments

The 15 biggest properties1

Usage	Fair value as at 30.6.2018 in TCHF	Address
Commercial property	87,020	Zurich, Friesenbergstrasse 75/ Im Tiergarten 7
Rental apartments	74,950	Lausanne, Petit Mont-Riond Rue Voltaire 2 – 12
Commercial property	68,590	Lausanne, Les Merciers Voie du Chariot 4 – 7
Rental apartments	67,060	Zurich, Letzigraben 134 – 136

The 15 biggest properties¹

Address	Fair value as at 30.6.2018 in TCHF	Usage
Lausanne, Place de la Gare 10 Rue du Petit-Chêne 38	66,830	Commercial property
Zurich, (Mobimo Tower) Hardturmstrasse 3	64,180	Commercial property
Regensdorf, "Sonnenhof" Schulstrasse	61,060	Rental apartments
Kreuzlingen, Ziil Center Leubernstrasse 3/Bottighoferstrasse 1	56,860	Commercial property

The 15 biggest properties¹

Address	Fair value as at 30.6.2018 in TCHF	Usage
Lausanne, Les Pépinières Rue des Côtes-de-Montbenon 20 – 24	44,200	Commercial property
Onex, Avenue des Grandes-Communes 21, 23, 25	38,120	Rental apartments
Lausanne, Rue de Genève 7	33,390	Commercial property

Site development: Aarau Aeschbachquartier

Site area

55,000 m² (incl. park)

Usage

1,100 workplaces, 92 condominiums, 167 rental apartments, retail, gastronomy, commercial

Investment

approx. CHF 170 million (excluding third parties)

Location

Central, near Aarau train station

Site development: Lucerne South (Kriens), Mattenhof

Site area 25,000 m²

Usage

Offices, commercial, hotel, apartments, retail, gastronomy

Investment approx. CHF 260 million

Location

Mattenhof train station, in the immediate vicinity of the motorway junction

Site development: Allaman, Vaud

Site area 23,000 m²

Usage (planned) 300 compact apartments (26,100 m² main usable area)

Rental

Tenants: logistics; rental agreements run until 31 December 2019

Location

Wine-growing village to the south-west of Morges; right next to the train station on a gentle slope facing the lake

Site development: Biel/Bienne, Agglolac

2018	2019	2020	2021	2022	2023	2024

Gross floor area approx. 110,000 m²

Usage

Development of a city district, offices, commercial, hotel, apartments(condominiums/ rental apartments), retail, gastronomy (project with the towns/cities of Nidau and Biel/Bienne)

Investment

approx. CHF 350 million

Location

Next to the lake, near the train station

Site development: Lausanne, Flon Vision 2025

2018	2019	2020	2021	2022	2023	2024

Site area

55,000 m²

Usage

Further development of the Flon district

Investment approx. CHF 200 million

Location

Central, in the immediate vicinity of a metro station

Site development: Lausanne, Rasude

2018	2019	2020	2021	2022	2023	2024

Site area

19,000 m² (12,000 m² Mobimo)

Usage

Offices, hotel, apartments (condominiums/rental apartments), retail, gastronomy (joint project with SBB)

Investment

approx. CHF 270 million

Location

Right next to Lausanne train station

Site development: Zurich Oerlikon, Rheinmetall

Site area 53,000 m²

Usage

Offices, commercial, apartments (condominiums/rental apartments), gastronomy, events

Investment

approx. CHF 500 million

Location Near Oerlikon train station