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Mobimo Holding AG

Investor Presentation Feb 9, 2018

933_ip_2018-02-09_0d6e02ca-8860-4837-9e91-2a0f880f8136.pdf

Investor Presentation

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2017 ANNUAL RESULTS

| Lausanne, Flon (Les Garages) 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.

Agenda

    1. Overview of the 2017 financial year Christoph Caviezel
    1. 2017 key financial figures Manuel Itten
    1. Real estate portfolio and pipeline Christoph Caviezel
    1. Focus and outlook Christoph Caviezel

1. OVERVIEW OF THE 2017 FINANCIAL YEAR

Strong annual results

91.5 Profit CHF million

Strong operating performance in 2017

Stable rental income despite individual sales

24.7

Profit on sale of trading properties and development services CHF million 2016: 23.9

Continuation of the attractive distribution policy

Expanded pipeline for third-party projects

Strong annual results

Active portfolio management Low vacancy rate

The realisation of the project pipeline for the company's own portfolio is on track

Expected rental income from the implementation of the pipeline for the company's own portfolio

Market environment

Political/economic environment

Switzerland is an attractive location for real estate investments

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

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

Strong 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

Trend in interest rate environment – rising interest rates

Refinancing

Stable average financing costs due to the long-term fixed financing arrangement in place (residual maturity as at reporting date 31.12.2017 is 6.5 years)

In the short term, there is an opportunity to further reduce financing costs by means of a new financing arrangement

Real estate valuations

In the event of rising interest rates and the resultant price expectations in the transaction market, the discount rate for real estate valuations could increase in the medium term

Thanks to its solid capital base, Mobimo is also well equipped to deal with changes in valuation

Reference interest rate and indexed rental agreements

Linking of apartment rents to the reference interest rate and linking of commercial rents to the national consumer price index

Medium-term adjustment of apartment rents in the event of rising interest rates (positive effect on real estate valuations)

Adjustment of rents in the event of rising interest rates in connection with inflation (positive effect on real estate valuations)

Positive economic growth

The forecast economic growth could lead to interest rate adjustments in the OECD area, which would also provide the Swiss National Bank with greater leeway again in terms of its monetary policy

Growth with high returns

Portfolio and equity growth

Portfolio growth of CHF 450 million

Share capital has increased by CHF 200 million

Solid equity ratio of more than 40% (target value)

Growth and added value attributable to the company's development activities

Profits realised through sales of investment properties

Rejuvenation of the management structure

Executive Board as at 1.1.2018

New New

Christoph Caviezel
CEO
Manuel Itten
CFO
Thomas Stauber
Head of Real Estate,
Deputy CEO
Marc Pointet
Head of Suisse
romande
Vinzenz Manser,
Head of Realisation
Marco Tondel
Head of Development
Dr. iur., attorney at law Business
Administration FH
Certified civil engineer
ETH/SIA; postgraduate
diploma BWI
Certified architect
ETH, Executive MBA
HSG
Certified architect
HTL; MAS in Real
Estate Mgmt
HWZ
Certified architect ETH,
Executive MBA ZHAW
Joined Mobimo
in 2008
Joined Mobimo
in 2004
Joined Mobimo
in 2011
Joined Mobimo
in 2006
Joined Mobimo
in 2002
Joined Mobimo
in 2012

Interest in real estate company Fadmatt AG

  • The portfolio of real estate company Fadmatt AG is an excellent strategic fit for Mobimo:
  • 501 apartments in the greater Zurich area
  • 7 properties of good quality
  • Reasonable rent level
  • The Mobimo offer to Fadmatt shareholders:
  • At least 50% of the purchase price would be paid in Mobimo shares (attractive for Fadmatt shareholders due to the higher returns, higher liquidity and tax advantage owing to the exchange of stock)
  • Fadmatt AG is ready for sale and will be put to auction
  • It is possible that the offer will be increased after due diligence

2. 2017 KEY FINANCIAL FIGURES

Key income statement figures

Change
CHF million 2014 2015 2016 2017 y-o-y
Net rental income 87.6 94.1 96.2 94.1 -2.2%
Direct cost/income ratio for rented properties 17% 13% 16% 15% -6.3%
Profit on sale of trading properties and development
services 24.9 5.5 23.9 24.7 3.5%
Gross margin 15.9% 6.4% 15.7% 12.4% -21.0%
Net income from revaluation 3.8 34.7 80.7 27.3 -66.2%
Profit on disposal of investment properties 4.9 63.8 34.9 27.5 -21.4%
Operating result (EBIT) including revaluation 97.6 170.4 200.3 142.3 -29.0%
Operating result (EBIT) excluding revaluation 93.8 135.7 119.6 115.0 -3.8%
Tax expense -4.8 -34.1 -15.1 -24.4 61.5%
Profit 63.2 105.0 159.4 91.5 -42.6%

Key income statement figures

2014 2015 2016 2017 Change
y-o-y
Profit attributable to the shareholders of MOH
(CHF million)
62.2 103.9 158.7 91.6 -42.2%
Profit attributable to the shareholders of MOH
excl. revaluation (CHF million)
60.2 78.6 99.4 71.9 -27.7%
EPRA earnings per share (CHF) 8.13 8.17 8.27 8.05 -2.7%
EPRA like-for-like rental growth 0.6% 0.8% 0.4% -0.4% nmf
Vacancy rate 5.4% 4.7% 4.8% 4.9% 2.1%
Gross yield from investment properties 5.6% 5.4% 5.3% 5.1% -3.8%
Net yield from investment properties 4.5% 4.3% 4.1% 4.0% -2.4%
Average financing costs (period) 2.5% 2.5% 2.4% 2.2% -8.8%
Interest rate spread 2.0% 1.9% 1.7% 1.8% 5.9%

Rental income and maturity profile

Income and net rental income

Maturity profile of fixed-term rental agreements1)

1) Excluding rental agreements of unlimited duration.

Change in sale of trading properties and development services

Income and profit on sale of trading properties and development services

Condominiums

82 apartments transferred to new owners, 66 of which were from the project Aarau, site 4 (Torfeld Süd) and last apartments transferred in Lucerne (Am Meggerwald) and Feldmeilen (Flair)

Pipeline supplemented with the purchase of a plot of land in a central location in Meggen in the canton of Lucerne

The total investment volume of the pipeline for the sale of condominiums stood at CHF 150 million as at 31.12.2017

Development for Third Parties

Conclusion of the first stage of the project in Bad Zurzach and sale of a building on the Labitzke site

The total investment volume of the pipeline of Development for Third Parties stood at approximately CHF 850 million as at 31.12.2017

Revaluation income on investment properties

Breakdown of revaluation income

Successful development of properties from the pipeline creates added value for the company's own portfolio from operational performance

CHF 36.3 million of the revaluation income can be attributed to the properties under construction

The valuation of other investment properties resulted in a depreciation of CHF –9.0 million, which corresponds to a lower valuation of –0.4%.

Long-term financing at excellent conditions

Financial liabilities

March 2017: Issue of a CHF 225 million bond with a coupon of 0.75% and a nine-year term

Maturity profile of financial liabilities

Selected topics

Investments

Investment in the project pipeline for the company's own portfolio creates added value due to attractive returns

Additional rental income growth of around CHF 25 million over the coming years

Refinancing

Bond expiring in October 2018 with a coupon of 1.5%

Further reduction of the average financing costs to 2.06% as at the reporting date 31.12.2017

IFRS 15

Condominiums now sold in accordance with the PoC method

Development services for third-party investors remain unchanged, normally in accordance with the PoC method

IFRS 16

Recognition of building rights agreements as the grantee of building rights

Recognition of long-term rents of premises, vehicles and office equipment

3. REAL ESTATE PORTFOLIO AND PIPELINE

Performance of overall portfolio

Total value 2,766 2,799 1.2% 100

Residential properties (trading)
246 147 -40.2% 5

Residential properties (investment)
140 217 55.0% 8

Commercial properties (trading)
59 55 -6.8% 2

Commercial properties (investment)
209 268 28.2% 10
Development properties 654 687 5.0% 25
Residential properties 724 731 1.0% 26

Commercial properties
1,388 1,381 -0.5% 49
Investment properties 2,112 2,112 0.0% 75
CHF million 2016 2017 Change Share
in %

Rental income by type of use1)

in %

1) Breakdown of target rental income by type of use (investment properties).

2) Other use mainly comprises car parks and ancillary uses.

Selected acquisitions and sales in the reporting year

Acquisition Sale

Lausanne, Place de la Gare 10; Rue du Petit-Chêne 38

Meggen (LU) trading property

Site area 5,207 m2

planned

Condominiums

Renens, Chemin de la Rueyre 116/118

Zurich, Stauffacherstrasse 41 (Apollo)

Target rental income CHF 0.9 million Rentable area

4,341 m2

Target rental

CHF 2.4 million Rentable area

income

6,755 m2

Versoix, Chemin de l'Ancien Péage 2-4

Target rental income CHF 1.1 million Rentable area 4,495 m2

Target rental income CHF 1.9 million Rentable area 14,261 m2

Kriens, Sternmatt 6 (partial sale of office building)

| 9.2.2018 Annual results 2017 22

Acquisition of investment property Lausanne, Place de la Gare 10

Rentable area m2

10,184

Future investment volume CHF million

30

Fair value as at 31.12.2017 CHF million

67

Current rental income CHF million p.a. 2.3

Site development: Aarau, Aeschbachquartier, Site 2 (occup. from Aug 2018)

Rentable area m2

19,152

Apartments Number

167

+ commercial and gastronomy space

Investment volume CHF million

101

Expected rental income CHF million p.a. 5.1

Site development: Zurich, Labitzke site (occupancy from April 2018)

Rentable area m2

15,590

Apartments/studios Number

201

+ commercial space

Investment volume

CHF million (excluding Development for Third Parties) 110

Expected rental income CHF million p.a. 5.1

Project pipeline: Development for our own portfolio

Investment properties for our own portfolio

Under construction: CHF 470 million (prior year: CHF 480 million) In planning: CHF 370 million (prior year CHF 370 million)

Site development: > CHF 1 billion

Project pipeline: Development for Third Parties

4. FOCUS AND OUTLOOK

Focus in 2018

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

Real estate portfolio

Successful realisation and marketing of current construction projects

Further increase in quality and growth of the company's own portfolio through developments and acquisitions

Operating business

Stable rental income, low vacancy rate and high level of tenant satisfaction

Selective production of condominiums

Strict cost and risk management

Transaction market

Ongoing review of purchase and sale opportunities

Reinvestment of sales proceeds in projects from the pipeline

Your contact persons

Dr. Christoph Caviezel CEO

[email protected] [email protected]

Manuel Itten CFO

Financial calendar

  • 27.3.2018 Annual General Meeting
  • 3.8.2018 Publication of interim results

E-mail: [email protected] Tel: 044 397 11 95

APPENDIX

|

Business model Appendix

Growth and stable returns
Rental income Appreciation in value
Capital gains
Service income
75% 25%
Investment properties Development properties
Core competences
Buying and selling
Development and realisation
Portfolio and real estate management

Sustainability Appendix

Development properties

Certified 2016: 100%

Investment properties

Certified 2016: 20% 100%

World's most comprehensive collection of environmental data

Organisation for assessing the sustainability performance of real estate portfolios

Certification system for assessing the sustainability of buildings/neighbourhoods

Organisation for Sustainability Reporting Guidelines

Building standards for new and modernised buildings

Fair value of overall portfolio by economic area Appendix

Target rental income of investment properties by economic area Appendix

Key balance sheet figures Appendix

2014 2015 2016 2017 Change y-o-y
Equity (CHF million) 1,222.5 1,264.7 1,366.3 1,399.1 2.4%
-
as a % of total assets
44.2% 42.8% 45.1% 43.8% -2.9%
Deferred tax liability, net (CHF million) 120.3 160.7 156.0 159.1 2.0%
-
as a % of total assets
4.3% 5.4% 5.1% 5.0% -2.0%
Interest-bearing debt (CHF million) 1,292.7 1,366.7 1,349.4 1,512.8 12.1%
-
as a % of total assets
46.7% 46.3% 44.5% 47.3% 6.3%
-
Loans (CHF million)
780.7 854.2 836.4 774.2 7.4%
-
Bonds (CHF million)
512.0 512.5 513.0 738.6 44.0%
-
Non-current capital (liabilities and equity)
as a % of total assets
95.9% 95.3% 93.3% 91.0% -2.5%
Net financing costs (CHF million) 31.4 33.6 28.5 28.6 0.3%
Ø interest rate (period) 2.51% 2.46% 2.38% 2.17% -8.8%
Interest coverage ratio 3.3 4.6 3.9 3.8 -2.6%
Net gearing 87.1% 90.4% 86.0% 91.2% 6.0%

| 9.2.2018 Annual results 2017 36

Solid equity ratio as the basis for qualitative growth Appendix

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

Target of > 2 comfortably exceeded Substantially below the maximum limit of 150%

High degree of financing leeway

Share data Appendix

2014 2015 2016 2017 Change
y-o-y
Issued shares (number) 6,216,606 6,218,170 6,218,170 6,218,170 0.0%
Share capital (CHF million) 180.3 180.3 180.3 180.3 0.0%
Market capitalisation (CHF million) 1,238.3 1,384.8 1,584.1 1,626.1 2.7%
(CHF)1)
NAV per share
195.93 202.45 217.33 222.58 2.4%
EPRA NAV per share (CHF) 229.05 244.06 258.53 259.94 0.5%
Year-end price (CHF) 199.20 222.70 254.75 261.50 2.7%
Earnings per share (CHF) 10.00 16.72 25.52 14.74 -42.2%
Distribution per share (CHF) 9.50 10.00 10.00 10.00 0.0%
Payout ratio 95% 60% 39% 68% 74.4%

1) As at 31 December 2017, the NAV corresponded to the diluted NAV.

Positive share price performance Appendix

Share performance (indexed) compared with SPI and SXI

Outperformance of indices

Liquidity remains good

  • An average of some 7,516 shares were traded each day (2016: 10,035)
  • Generating annual revenues of around CHF 497 million (2016: CHF 581 million)

Composition of shareholders Appendix

Breakdown of shareholders by sector

Free float as at 31.12.2017: 100% (as per SIX Swiss Exchange definition)

As at 31.12.2017, the following shareholders held 3% or more of the share capital:

  • BlackRock, Inc., 4.41%
  • Zuger Pensionskasse, 3.38%
  • Norges Bank (the Central Bank of Norway), 3.14%
  • Credit Suisse Funds AG, 3.10%

Appendix

Project pipeline: Development for the own portfolio and Third Parties

Project/use 2018 2019 2020 2021
Investment properties for our own portfolio
Horgen, Seestrasse 93 (Seehallen): Commercial and retail
Zurich, Hohlstr. 485;Albulastr. 30-40: 10
office/commercial units, 201 apartments, 80 parking spaces
Aarau, Site 2 (Torfeld Süd): 6 residential/office buildings, 167 apartments
Under con
struction
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, Avenue Edouard Dapples 9, 13, 15, 15a (GMR): Renovation of residential property
Investment: CHF 470 million (prior year: CHF 480 million)
Lausanne, Rue de la Vigie 3: Hotel
Lausanne, Rue de Genève 19/21 (Jumeaux): Retail, office, storage
In planning Lausanne, Rue des Côtes-de-Montbenon 8-14: Residential, office, retail
Zurich, Allmendstrasse 92-96 (Manegg): Residential
Lausanne, Rasude site development: Urban development
Investment: CHF 370 million (prior year: CHF 370 million)
Condominiums for sale
Under con
struction
No projects under construction as of the reporting date Investment: CHF 0 million (prior year: CHF 80 million)
Lachen, Zürcherstrasse 19: 8 apartments, 13 parking spaces
Schaffhausen, Fischerhäuserstrasse 61: 11 apartments, 10 parking spaces
In planning Merlischachen, Chappelmatt-Strasse (Burgmatt): 78 apartments, 140 parking spaces
Meggen, Gottliebenrain 5/7: 30 apartments, 45 parking spaces, commercial
Weggis, Hertensteinstrasse 105: Open
Investment: CHF 150 million (prior year: CHF 100 million)
Address Fair value as at 31.12.2017
in TCHF
Usage
Lausanne, Horizon 4-6
Avenue d'Ouchy 4-6
127,870 Commercial property
Zurich, Mobimo Tower Hotel
Turbinenstrasse 18
122,750 Hotel
Affoltern a. A., Obstgartenstr. 9;
Alte Obstfelderstr. 27/29, 31-35
109,440 Retirement home, retirement
and rental apartments
Lausanne, Ilot du Centre
Rue Beau-Séjour 8
103,710 Rental apartments
Address Fair value as at 31.12.2017
in TCHF
Usage
Zurich, Friesenbergstrasse
75;
Im Tiergarten 7
86,780 Commercial property
Lausanne, Petit
Mont-Riond
Rue Voltaire 2-12
74,490 Rental apartments
Lausanne, Les Merciers
Voie du Chariot 4-7
68,140 Commercial property
Zurich,
Letzigraben 134-136
67,040 Rental apartments
Address Fair value as at 31.12.2017
in TCHF
Usage
Lausanne,
Place de la Gare
10;
Rue du Petit-Chêne 38
66,830 Commercial property
Zurich, (Mobimo Tower)
Hardturmstrasse 3/3a/3b
63,970 Commercial property
Regensdorf,
Sonnenhof
Schulstrasse
61,310 Rental apartments
Kreuzlingen, Ziil Center
Leubernstrasse
3; Bottighoferstrasse
1
57,120 Commercial property
Address Fair value as at 31.12.2017
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
38,080 Rental apartments
Lausanne,
Rue de Genève 7
33,410 Commercial property

Varied site development throughout Switzerland Appendix

Site development: Lausanne, Rasude Appendix

2017 2018 2019 2020 2021 2022 2023

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: Aarau, Aeschbachquartier Appendix

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: Lausanne, Flon Vision 2025 Appendix

2017 2018 2019 2020 2021 2022 2023

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: Lucerne South (Kriens), Mattenhof Appendix

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: Biel/Bienne, Agglolac Appendix

2017 2018 2019 2020 2021 2022 2023

Gross site 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: Zurich Oerlikon, Rheinmetall Appendix

Gross site area 53,000 m2

Usage

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

Investment approx. CHF 500 million

Location Near Oerlikon train station

Site development: Allaman, Vaud Appendix

Site area 25,000 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

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