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Mobimo Holding AG

Investor Presentation Aug 4, 2017

933_ip_2017-08-04_8624f23d-a3ba-45bd-abd2-1f8d8f1830dc.PDF

Investor Presentation

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2017 Half-year results

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. First half-year 2017 at a glance

A strong half-year performance 1. First half-year 2017 at a glance

CHF million HY|2016: 89.8

  • A strong performance once again after the extraordinary record results of the previous year
  • Good operating results in all areas

56.4 Rental income CHF million HY|2016: 56.8

91.2

● Stable rental income and low vacancy rate despite portfolio disposals

CHF

HY|2016: 14.39

● On track to continue the stable and attractive dividend policy

Income from sales and services CHF million HY|2016: 59.7

  • 74 transfers of ownership, mostly in Aarau's Aeschbachquartier
  • Expanded pipeline for third-party projects

Market environment 1. First half-year 2017 at a glance

Economic environment
Switzerland offers a stable
environment
/ Trend in real economic growth slightly positive since
2015 /
Inflation set to be in marginally positive territory again

Swiss franc becoming more competitive against the euro again

Attractive location for real estate
investments
/ Real estate offers a very high yield premium over bonds
despite price rises in recent years
Political environment
Regulation is tending to result in a shortage of land, thus making it more expensive

Insufficient use of density and a lack of implementation are making
supply
more expensive
Residential real estate
market
(rental)

Persistently high demand for rental apartments in urban centres

Easing demand in less central
areas
/ Some
signs of overproduction in peripheral areas

Decline in annual net
immigration
/ Change in structure of immigration
Residential real estate
market
(condominiums)

Persistently high demand for low and mid-priced condominiums in good locations

Ongoing positive effect on demand from the current low interest rate environment
Commercial real estate
market
(rental)

Demand for office space trending sideways overall

Tough competition leading to structural adjustment in the retail sector

Slight increase in demand for cheap commercial space

Ongoing digitalisation impacting demand for retail space –
and office space in the medium term –
leading to
changes in future user needs
Transaction market
Continuing high demand for investment opportunities in residential properties and selected
commercial
properties

Highlights of a sustainable development strategy 1. First half-year 2017 at a glance

  • Foundation stone laid: May 2017
  • 129 rental apartments and commercial space
  • Planned completion: 1st half of 2019
  • Start of marketing of the rental apartments: 2018
  • Commercial letting rate: ca. 60%

  • Foundation stone laid: Sept 2016

  • 201 rental apartments and 10 commercial spaces
  • Planned completion: 1st half of 2018
  • Start of marketing of the rental apartments: spring 2017
  • Rental letting rate: ca. 95%

Kriens, Mattenhof Zurich, Labitzke Aarau, Aeschbachquartier

● Foundation stone laid: Sept 2016 / April 2015

Rental apartments

  • 167 rental apartments
  • Planned completion: mid-year 2018
  • Start of marketing of the rental apartments: end of 2017

Condominiums for sale

● Transfers of ownerships: 63/92

2. Key financial figures first half-year 2017

Key figures on the income statement 2. Key financial figures first half-year 2017

CHF million 2014 2015 HY 2016 HY 2017 Change
y-o-y
Rental income 105.1 107.8 56.8 56.4
-
0.7%
Direct expenses for rented properties -
17.6
-
13.8
-
8.5
-
7.8

-
8.7%
Net rental income 87.6 94.1 48.3 48.6
0.7%

Direct cost/income ratio for rented properties
17% 13% 15% 14%
-
8.0%
EPRA like-for-like rental growth 0.6% 0.8% 0.4% -
0.1%

-
125.0%
Income from sale of trading properties and
development services
157.3 86.2 59.7 91.2
52.8%
Direct expenses from sale of trading properties and
development services
-
132.4
-
80.7
-
42.7
-
77.8

82.4%
Profit on sale of trading
(properties) and
development services
24.9 5.5 17.0 13.3
-
21.6%

Gross yield
16% 6% 28% 15%
-
48.7%

Key figures on the income statement 2. Key financial figures first half-year 2017

CHF million/CHF 2014 2015 HY 2016 HY 2017 Change
y-o-y
Net income from revaluation 3.8 34.7 20.9 30.6
46.5%
Profit on disposal of investment properties 4.9 63.8 33.9 17.8
-
47.6%
Operating result (EBIT) incl. Revaluation 97.6 170.4 105.2 92.9
-
11.7%
Operating result (EBIT) excl. revaluation 93.8 135.7 84.4 62.3
-
26.1%
Tax expense -
4.8
-
34.1
-
2.9
-
16.0

444.6%
Profit 63.2 105.0 89.8 63.3
-
29.5%
Profit attributable to the shareholders of MOH 62.2 103.9 89.5 62.4
-
30.3%
Profit attributable to the shareholders of MOH
excluding revaluation
60.2 78.6 74.2 40.1
-
45.9%
Earnings per share 10.00 16.72 14.39 10.03
-
30.3%
Earnings per share excluding revaluation 9.69 12.65 11.93 6.46
-
45.9%
EPRA earnings per share 8.13 8.17 3.61 4.05
12.2%

Key figures on the real estate portfolio 2. Key financial figures first half-year 2017

2014 2015 2016 HY 2017 Change
y-o-y
Average discount rate for revaluation (real) 4.39% 4.08% 3.75% 3.62% -
3.5%
Vacancy rate 5.4% 4.7% 4.8% 4.9% 2.1%
Gross yield from investment properties 5.6% 5.4% 5.3% 5.3% 0.0%
Net yield from investment properties 4.5% 4.3% 4.1% 4.1% 0.0%
Average financing
costs
(period)
2.5% 2.5% 2.4% 2.1% -
12.6%
Yield spread 2.0% 1.8% 1.7% 2.0% 17.6%

Change in rental income and vacancy rate 2. Key financial figures first half-year 2017

  • Steady increase in rental income through the addition of new investment properties with low vacancy rates from the development pipeline for Mobimo's own portfolio
  • Additional increase in rental income through acquisitions
  • Investment properties under construction for our own portfolio contain a total investment volume of around CHF 480 million and a potential rental income of CHF 25 million p.a.

  • Key financial figures first half-year 2017

Long-term maturity profile of rental agreements and top tenants

Maturity profile of fixed-term rental agreements1)

The top 5 tenants

1) Not including rental agreements of unlimited duration

2. Key financial figures first half-year 2017

Change in sale of trading properties and development services

  • CHF 81 million of income from sale of trading properties
  • 74 apartments transferred to new owners, mostly in Aarau's Aeschbachquartier
  • Targeted expansion of the pipeline for condominium projects through the purchase of a plot of land in Meggen in the canton of Lucerne
  • CHF 10 million of income from development services through the realisation of the attractive pipeline for third-party developments
  • Total investment volume of around CHF 800 million for third-party developments

Long-term financing at excellent conditions 2. Key financial figures first half-year 2017

  • Bond issue to further diversify long-term financing
  • Issue date: 20 March 2017
  • Issue volume: CHF 225 million
  • Coupon: 0.75% p.a.
  • Maturity: 9 years (to 2026)
31 December 2016 30 June 2017
Ø residual maturity as at
reporting date
6.9 years 6.8 years
Ø interest rate as at
reporting date
2.32% 2.02%

3. Property portfolio and pipeline

Performance of overall portfolio 3. Property portfolio and pipeline

Total value: CHF 2,728 million (2016: CHF 2,766 million)

CHF million 2016 HY 2017 Change
Investment properties 2,112 2,060 -
2.5%

Commercial properties
1,388 1,341 -
3.4%
Residential properties 724 719 -
0.7%
Development properties 654 668 2.1%

Commercial
properties(investment)
209 211 1.0%

Commercial properties (trading)
59 59 0.0%

Residential properties
(investment)
140 194 38.6%

Residential properties (trading)
246 204 -
17.1%

Site development: Aarau, Aeschbachquartier 3. Property portfolio and pipeline

  • Conversion of the former industrial site to a mixed-use urban district
  • 167 rental apartments, 92 condominiums and 4,600 m2 of commercial space
  • Investment volume: CHF 170 million (excl. GastroSocial premises)
  • Expected rental income: CHF 5.3 million

3. Property portfolio and pipeline

Site development: Aarau, Aeschbachquartier – sustainability

Site development: Lausanne (Flon), Les Garages 3. Property portfolio and pipeline

Usable area m2

2,046

Studios and office spaces Number 31

10 Investment volume CHF million

Expected rental income CHF million 0.5

Occupation

planned from 9.2017

Site development: Kriens, Mattenhof 3. Property portfolio and pipeline

Usable area

m2 37,885

Apartments Number + Commercial, retail and gastro 129

Investment volume

CHF million (without Development for Third Parties)

Expected rental income CHF million 10.3

175

Occupation

planned from 3.2019

Site development: Zurich, Labitzke 3. Property portfolio and pipeline

Usable area m2

15,583

Rental apartments/studios

Number

+ 10 commercial spaces

Investment volume

CHF million (without Development for Third Parties)

Expected rental income CHF million 5.1

110

201

Occupation

planned from 4.2018

Development for Third Parties 3. Property portfolio and pipeline

Bad Zurzach, Weissensteinweg

Apartments

Units

97

  • Rentable area: 8,547 m2
  • Start of construction: September 2015 (first stage) and August 2016 (second stage)
  • Planned occupation: October 2017 resp. May 2018

Unterengstringen, Langwisenstrasse

Apartments Units

30

  • Rentable area: 2,272 m2
  • Start of construction: April 2017
  • Start of marketing: September 2017
  • Planned completion: September 2018

Killwangen, Zürcherstrasse

Apartments

Units

  • Rentable area: 7,369 m2
  • Start of construction (planned): July 2018
  • Planned completion: 2020

Zurich, Albulastrasse (Labitzke)

Apartments Units

76

  • Commercial units: 2
  • Rentable area: 6,258 m2
  • Start of construction: January 2016
  • Planned occupation: July 2018

Varied site development throughout Switzerland 3. Property portfolio and pipeline

  • Current and future projects with potential investment total of around CHF 1.6 billion
  • 100% Minergie-certified
  • Internal sustainability rating

4. Focus and outlook

Focus in 2017 4. Focus and outlook

Strategy
Further expansion
of
the
activities
and
services
of
Development for
Third Parties

Selective
production
of
condominiums

Continuation
of
the
attractive
dividend
policy
Operating business
Stable rental income,
low vacancy rate and high level of tenant satisfaction

Reinforcement of the service offering for customers through
our own facility management

Strict cost and risk management
Real estate
portfolio

Successful
realisation
of
planned
construction
projects

Continued
increase
in quality
and
growth
of
our
own
portfolio
through
targeted
developments
and
purchases

Targeted
portfolio
diversification
to
achieve
a balanced
portfolio
mix
Transaction market
Ongoing
review
of
purchase
and
sales
opportunities

Reinvestment
of
sales
proceeds
in projects
from
the
pipeline

Mobimo – Well-equipped for the future 4. Focus and outlook

Stable
income

High-value
real estate
portfolio
in prime locations
in Switzerland

Diversified
investment
portfolio

Low vacancy
rate
Growth and
rising
income

Attractive
development
pipeline
at top locations
in Switzerland
Security
High equity
ratio
and
long-term financing
at low
interest
rates
form an
excellent
foundation
for
further
growth
and
for
investments
in the
planned
projects
of
the
pipeline
Know-how
Solid business
model, excellent
positioning

A capable
and
committed
Mobimo
team
Return
Share with
a stable
return

Attractive
dividend
of
CHF 10.00

Your contact persons

Christoph Caviezel CEO

  • Dr. iur., attorney at law
  • Chairman of the Executive Board
  • CEO of the Mobimo Group since October 2008
  • Direct Manager of the Purchase and Divestment Division
  • Several successful years as CEO and member of the BoD of a listed Swiss real estate company

[email protected] [email protected]

[email protected], Tel. 044 397 11 86

Manuel Itten CFO

  • Business Administration FH
  • Member of the Executive Board
  • Joined Mobimo in 2004, working as CFO since 2009
  • Head of Controlling until February 2009
  • Longstanding experience in the real estate market

Annex

Annex

Long-term strategy for qualitative growth and stable returns

Capital gains Appreciation in value Rental income
. Profit on trading properties and
development services
• Profit on sale of investment properties
. Increasing total value of the portfolio
• Quality optimisation of the portfolio
• High level of customer satisfaction
• Net income from revaluation
• Stable and growing rental income
• Net rental income
• Return on equity including/
excluding remeasurement
. Gross yield from investment properties
. Net yield from investment properties
Development for Third Parties Development properties Investment properties
Buying/selling Development Portfolio management Solid financing
• Successful acquisitions
. Good regional and user-specific
diversification
• Many aspects to site
. Planning and realising residential
and commercial properties
• Planning and realising
condominiums for third parties
• Considering the needs of
the environment
• Strategic development
• Portfolio optimisation
· Considering environmental,
economic and social aspects
• Reacting quickly and flexibly to
changes in the market
• Appropriate equity ratio for
further qualitative growth
• Long-term guaranteed financing
at excellent conditions

Concentration of properties in key economic areas Annex

Well-balanced and stable portfolio mix Annex

  • The portfolio mix is subject to continuous optimisation
  • The residential component is gradually being increased through the planning and construction of investment properties for the company's own property portfolio
  • Residential component in target range of 30%
  • The portfolio mix of the investment portfolio comprises approximately one-third residential usage, one-third office usage and one-third other commercial usage

Solid equity ratio as basis for further high-quality growth Annex

  • 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

Key figures for Mobimo shares Annex

2014 2015 2016 30.6.2017 Change
y-o-y
Number of registered shares issued 6,216,606 6,218,170 6,218,170 6,218,170 0.0%
NAV per share, diluted
(CHF)
195.93 202.45 217.33 217.66 0.2%
Share price as at 30 June (CHF) 199.20 222.70 254.75 269.00 5.6%
Premium to NAV 2% 10% 17% 24% 41.2%
Market capitalisation (CHF million) 1,238.3 1,384.8 1,584.1 1,672.7 5.6%
Distribution for previous year (CHF) 9.50 10.00 10.00 10.00 0.0%
Dividend yield 4.8% 4.5% 3.9% 3.7% -
5.1%

Shareholder structure Annex

  • Free float as at 30 June 2017: 100% (as per SIX Swiss Exchange definition)
  • The following shareholders held 3% or more of the share capital as at 30 June 2017:
  • BlackRock, Inc., 4.97%
  • Zuger Pensionskasse, 3.38%
  • Norges Bank (the central bank of Norway), 3.17%
Investment properties for
our
own
portfolio
Condominiums
for
sale
2017 2018 2019 2020 2017 2018 2019 2020
Under
construction
In planning
Sale
of
plots
Investment CHF 480 million
CHF 370 million
(prior year: CHF 480 million)
(prior year: CHF 370 million)
CHF 10 million
(prior year: CHF 80 million)
CHF 100 million
(prior year: CHF 100 million)
Investment properties for
our
own portfolio
2017 2018 2019 2020 Project Usage
Under construction: CHF 480 million (prior year: CHF 480 million)
Aarau, Site 2 (Torfeld Süd) 6 residential/office buildings,
167 apartments
Horgen, Seestrasse 93 (Seehallen) Commercial and retail
Kriens, am Mattenhof 4, 6, 8, 12/14, 16 Office, residential, retail, hotel,
129 apartments
Lausanne, Rue
Côtes-de-Montbenon 1/3/5
(Les Garages)
Small businesses
Rheinfelden, Rütteliweg 8/Spitalhalde 40 Renovation, 84 apartments
Zurich, Hohlstrasse 485 10 office/commercial units,
201 apartments, 80 parking
spaces
Investment properties for
our
own portfolio
2017 2018 2019 2020 Project Usage
In planning: CHF 370 million (prior year: CHF 370 million)
Aarau, Bahnhofstrasse 102 (Mediapark) Refurbishment of commercial
space
Lausanne, Avenue Edouard Dapples
9, 13, 15, 15a (GMR)
Renovation of residential
property
Lausanne, Rasude site development Urban development
Lausanne, Rue de Genève 19/21
(Jumeaux)
Retail, office, storage
Lausanne, Rue de la Vigie 3 Hotel
Lausanne, Rue de la Vigie 5 Residential, office, retail
Lausanne, Rue des Côtes-de-Montbenon
8-14
Residential, office, retail
Condominiums
for
sale
2017 2018 2019 2020 Project Usage
Under construction: CHF 10 million (prior year: CHF 80 million)
Bad Zurzach, Weissensteinweg
(Salzturm)
21 apartments
In planning: CHF 100 million (prior year: CHF 100 million)
Merlischachen, Chappelmatt-Strasse
(Burgmatt)
78 apartments, 140 parking spaces
Sale of plots Weggis, Hertensteinstrasse 105 open
Address Fair value
as
at
30.6.2017 in TCHF
Usage
Lausanne, Horizon 4-6
Avenue d'Ouchy 4-6
127,930 Commercial property
Zurich, Mobimo Tower Hotel
Turbinenstrasse
18
122,310 Hotel
Affoltern a. A., Obstgartenstr. 9/
Alte Obstfelderstr. 27/29, 31-35
110,110 Retirement home,
retirement and rental
apartments
Lausanne, Ilot du Centre
Rue Beau Séjour
8
103,750 Rental apartments

1) Total fair value CHF 1,088 million

Address Fair value
as
at
30.6.2017 in TCHF
Usage
Zurich, Friesenbergstrasse
75/
Im Tiergarten 7
86,800 Commercial property
Lausanne, Petit
Mont-Riond
Rue Voltaire 2-12
74,600 Rental apartments
Lausanne, Les Merciers
Voie du Chariot 4-7
68,080 Commercial property
Zurich,
Letzigraben 134-136
67,000 Rental apartments

1) Total fair value CHF 1,088 million

Address Fair value
as
at
30.6.2017 in TCHF
Usage
Zurich, Mobimo
Skyscraper
Hardturmstrasse
3/3a/3b
63,230 Commercial property
Regensdorf,
Sonnenhof
Schulstrasse
61,460 Rental apartments
Kreuzlingen, Ziil Center
Leubernstrasse
3/Bottighoferstrasse
1
57,460 Commercial property
Lausanne, Les Pépinières
Rue des Côtes-de-Montbenon 20-24
43,900 Commercial property

1) Total fair value CHF 1,088 million

Address Fair value
as
at
30.6.2017 in TCHF
Usage
Onex,
Avenue des Grandes-Communes 21-23-25
37,800 Rental apartments
Lausanne,
Rue de Genève 7
33,400 Commercial property
Lausanne,
Place de la Gare 4
30,490 Commercial property

Site development: Lausanne, Rasude Annex

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 Swiss Federal Railways)

Investment Approx. CHF 270 million

Location

Right next to Lausanne train station

Site development: Aarau, Aeschbachquartier Annex

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 Annex

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 Annex

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 Annex

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 Annex

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, canton of Vaud Annex

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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