CAPITAL MARKETS DAY 2017 ZURICH, 25 OCTOBER 2017 Welcome address - PowerPoint PPT Presentation

CAPITAL MARKETS DAY 2017 ZURICH, 25 OCTOBER 2017

Welcome address Today’s Agenda – Swiss Prime Site Capital Markets Day 2017 Management presentations 10.00 – 11.00 René Zahnd (CEO Swiss Prime Site) & Peter Lehmann (CEO Swiss Prime Site Immobilien) 11.00 – 12.30 First site visit 12.30 – 13.30 Lunch 13.30 – 16.00 Second site visit 16.00 – 17.00 Apero 17.00 End of programme Zurich | 25 October 2017 Capital Markets Day 2017 2

WE OFFER PERSPECTIVES

CEO Swiss Prime Site Guidance for 2017 confirmed  Increase operating income Top line  Raise operating result (EBIT) before revaluations Profitability  Cut vacancy rate Vacancy-rate management  Further growth through project developments and acquisitions Portfolio  Maintain attractive dividend pay-out Dividend policy Zurich | 25 October 2017 Capital Markets Day 2017 4

CEO Swiss Prime Site Five reasons for project development INDEPENDENCE GROWTH PROFITABILITY INNOVATION SUSTAINABILITY Exploiting additional Gaining Exploiting Actively influencing income streams Acquiring further independence from opportunities for sustainable (rental income, redevelopment know investment property higher yields within development models capital and how transaction market the portfolio and projects revaluation gains) Zurich | 25 October 2017 Capital Markets Day 2017 5

CEO Swiss Prime Site Development drivers – Spaces Density  Immigration is a key population and Basle business driver Zurich Zug  Cantons to implement new Federal Law on Spatial Planning (RPG 1) by 2019 Lucerne Berne Arc Lémanique 6 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Development drivers – Traffic axes Perspective on traffic development until 2040 Mobility  General increase in traffic volumes until 2040  Further development of the traffic axes throughout the country Source: Federal Department of the Environment, Transport, Energy and Communications (DETEC) 7 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Development drivers – Key themes Demography Health Education  All scenarios predict  Significant increase in  Digital «re/evolution» creates continuous increase in healthcare spending seen demand for continuing average age of Swiss over last 20 years is expected education across all sectors population to continue and age bands Source: Federal Statistical Office 8 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Development drivers – Opportunities for redevelopment projects Industry 4.0 Environment  Increasing speed in automatisation and  Climate change is having significant impact on artificial intelligence general mindset  Vacant traditional industrial areas are ready  Debate about utilisation of resources, for redevelopment conventional energy and «embodied» energy 9 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Development drivers – Growth & Profitability Espace Tourbillon Weltpostpark SOL SOLD SOLD SOLD 10 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Development drivers – Innovation YOND 11 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Development drivers – Sustainability Schönburg Greenhouse gas emissions cut by more than 40% (9,433 t CO2) Embodied energy use reduced by more than 30% (26,754 MWh) 12 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Development drivers – Industry 4.0 Medienpark 13 Zurich | 25 October 2017 Capital Markets Day 2017

WE PROVIDE ADDED VALUE

CEO Swiss Prime Site Immobilien Real estate strategy – Focus on growth and inward densification Acquisition and sale of single properties Investments in innovative projects or portfolios | realisation of capital gains e.g. living habitats through the sale of development projects Focus on Growth Inward densification through development of own sites Acquisition of sites in Swiss urban agglomerations Reconstruction | repositioning | Active, value-generating portfolio and refurbishment of portfolio properties asset management 1 portfolio management, asset management, sales and acquisitions, development, construction (management), transaction management, market knowledge 2 realisation, facility management, property management, construction management/supervision, property valuation, macro analysis Zurich | 25 October 2017 Capital Markets Day 2017 15

CEO Swiss Prime Site Immobilien Real estate business model – Active portfolio and asset management 6) Sales 1) Acquisition  Sale of developed projects and  Scouting  Feasibility and return assessment properties  Transactions  Assets / projects 2) Development 1 6  Project evaluation  Market analysis 5) Modernisation  User sourcing 2  Competitiveness  Recognition of megatrends 5  Project development sales  Re-densification  Building regulation procedures  Needs-oriented redesign  Project innovation  Marketing  Marketing  Value creation 3 4 3) Constuction 4) Portfolio Mgmt  Quality management  Vacancy management  Cost management  Portfolio and property strategy  Timetable management  Reporting  Reporting  Sustainability Zurich | 25 October 2017 Capital Markets Day 2017 16

CEO Swiss Prime Site Immobilien Portfolio – Focus on Swiss economic areas | Vacancy rate cut to 5.5% Vacancy rate in % (Group) Comments  Significant reduction in vacancy rate to 5.5%  Further improvements expected in H2 2017 Zurich | 25 October 2017 Capital Markets Day 2017 17

CEO Swiss Prime Site Immobilien Substantial CHF 2.1 billion pipeline covering all phases Construction Etzelgut, Zurich Riantbosson Centre, Meyrin Geneva Business Terminal, Meyrin YOND, Zurich Schönburg, Berne Espace Tourbillon, Geneva Development NZZ site, Schlieren Stücki Business Park, phase I, Basle Du Lac, Paradiso (Lugano) Etzelblick, Richterswil Stücki Business Park, phase II, Basle VMA Pré-Bois, Meyrin Acquisitions Lokstadt, Winterthur Pont Rouge, Lancy Reserves Various projects 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 18 Zurich | 25 October 2017 Capital Markets Day 2017

WE SHAPE THE FUTURE

CEO Swiss Prime Site Immobilien Construction projects with expected average net yield of 5.4% (1|3) SOLD SOLD SOLD SOLD Espace Tourbillon, Plan-les-Ouates (Commercial) Schönburg, Berne (Hotel, Retail, Residential) 2017 – 2021 2017 – 2020 Realisation Realisation Investment volume* CHF 233 million Investment volume* CHF 193 million Rental space 50 400 m 2 Rental space 19 600 m 2 Rental income CHF 19 million Rental income CHF 7.2 million Gross yield (on cost) 8.2% Gross yield (on cost) 3.7% Net yield (on cost) 7.3% Net yield (on cost) 3.4% *including land 20 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Immobilien Construction projects with expected average net yield of 5.4% (2|3) YOND, Zurich (Commercial) Riantbosson Centre, Meyrin (Office | Retail) 2017 – 2019 2016 – 2018 Realisation Realisation Investment volume* CHF 89 million Investment volume* CHF 42 million Rental space 20 000 m 2 Rental space 6 300 m 2 Rental income CHF 5.4 million Rental income CHF 2.3 million Gross yield (on cost) 6.0% Gross yield (on cost) 5.6% Net yield (on cost) 5.0% Net yield (on cost) 5.0% *including land 21 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Immobilien Construction projects with expected average net yield of 5.4% (3|3) Geneva Business Terminal (Office) Etzelgut, Zurich (Assisted Living) 2016 – 2018 2016 – 2017 Realisation Realisation Investment volume* CHF 21 million Investment volume* CHF 26 million Rental space 2 600 m 2 Rental space 2 900 m 2 Rental income CHF 1.4 million Rental income CHF 1.3 million Gross yield (on cost) 6.4% Gross yield (on cost) 5.1% Net yield (on cost) 5.2% Net yield (on cost) 4.6% *including land 22 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Immobilien Development projects with expected rental income of CHF ~50 m (1|4) VMA Pré-Bois, Meyrin (Commercial) NZZ site, Schlieren (Commercial) 2021 – 2023 2018 – 2019 Realisation Realisation Investment volume* CHF 155 million Investment volume* CHF 100 million Rental space 24 000 m 2 Rental space 23 700 m 2 Rental income CHF 9.3 million Rental income CHF 5.7 million Gross yield (on cost) 6.0% Gross yield (on cost) 5.7% Net yield (on cost) 5.0% Net yield (on cost) 5.1% *including land 23 Zurich | 25 October 2017 Capital Markets Day 2017

CEO Swiss Prime Site Immobilien Development projects with expected rental income of CHF ~50 m (2|4) Stücki Business Park I, Basle (Commercial) Stücki Business Park II, Basle (Commercial) 2018 – 2020 2021 – 2023 Realisation Realisation Investment volume* CHF 95 million Investment volume* CHF 95 million Rental space 13 300 m 2 Rental space 13 300 m 2 Rental income CHF 5.9 million Rental income CHF 5.9 million Gross yield (on cost) 6.2% Gross yield (on cost) 6.2% Net yield (on cost) 5.4% Net yield (on cost) 5.4% *including land 24 Zurich | 25 October 2017 Capital Markets Day 2017