June 2020 Disclaimer This document is not a securities - PowerPoint PPT Presentation

June 2020

Disclaimer This document is not a securities prospectus, and the to be correct. In particular, any statements on acquisitions information contained therein does not constitute an offer to presuppose the actual signing of the necessary contracts or the sell, or a solicitation of an offer to buy, securities of Noratis AG successful procurement of the necessary equity and debt capital. (“ Noratis ”) in the Federal Republic of Germany or in any other The future development and actual results achieved by Noratis country, specifically not if such an offer or solicitation is and its affiliates are subject to a number of risks and prohibited or not approved. uncertainties, and may therefore differ materially from these forward-looking statements. Many of these factors are beyond The information contained in this document may not be Noratis' control and cannot be accurately appraised in advance, distributed outside the Federal Republic of Germany, specifically including the future economic environment or the actions of not in the United States of America, to US persons (as defined in competitors and other market players. Noratis does not intend to Regulation S under the United States Securities Act of 1933) or to update its forward-looking statements. publications with a general circulation in the United States, unless such distribution outside the Federal Republic of Germany is prescribed by mandatory provisions of applicable law. Any violation of these restrictions may constitute a breach of the securities laws of certain countries, in particular those of the United States of America. Securities of Noratis are not publicly offered for sale outside the Federal Republic of Germany. This document contains forward-looking statements based on current estimates and assumptions made by the senior management of Noratis. Such statements are not to be understood as guarantee that predictions of this sort will prove

Agenda 1. Company overview 04 2. Projects 14 3. Market 21 4. Financials 24 5. Strategy and summary 28 6. Appendix 32

1. Company overview Location Krefeld

1. COMPANY OVERVIEW Noratis – enhancement of property values Listed, specialised developer-trader Covering all core functions along the of residential property portfolios value chain (acquisition, technical based in Eschborn near Frankfurt and commercial development, am Main sales) with own employees Focus on portfolios from around 20 Enhancement of property values in residential units of basic to medium the interest of all stakeholders, standard with potential for deve- from tenants and employees to lopment financing partners and investors Investments across Germany with Preferably housing estates, emplo- focus on peripheral regions of yee housing and quarters; flexibility metropolitan areas and cities with regarding vacancy rate or property stable demographic development conditions 5

1. COMPANY OVERVIEW Development of existing properties with clear exit strategy for each portfolio Acquisition Development Focus on housing stocks with po- Increase in value through invest- tential for development in secon- ments and active asset manage- dary locations ment Reinvestment Sales Reinvestment of disposal proceeds; Two exit strategies: disposal positioning as attractive dividend through block sales and / or sales stock of individual apartments 6

1. COMPANY OVERVIEW Holding structure of Noratis AG (1) Registered office: Eschborn near Frankfurt am Main Employees: 47 (FTE Q1 2020) (2) Foundation year: 2002 (2012 first full operational year) Nor oratis AG AG  Holding company directly owns properties (several projects), provides services to project companies and holds shares in a subsidiary Proje oject com ompanie ies (without employees) Sub ubsid idiarie ies (own employees) 65 % 100 % 100 % 94 % Nor Noratis is Woh ohnen Gmb mbH Nor Noratis is Ha Habitat Gmb mbH Nor Noratis is Li Livi ving Gmb mbH Nor Noratis is West GmbH  Project in Neu-Isenburg  Project in Frankfurt  Currently no projects  Focus on small assets in the Rhineland and Ruhr region Merged with 2. HeBa Sales completed   Immobilien UG and Noratis  Assets in both Krefeld and Residential GmbH Mönchengladbach (1) As of May 31, 2020; (2) According to German GAAP 7

1. COMPANY OVERVIEW Our strengths along the value chain Acquisition Development Sales  Established network  Team with great expertise in planning and  Exit strategy with two distribution channels managing development measures executed  Outstanding access to sellers and brokers  Block sales by external partners with a high number of off-market offers  Sales of individual apartments  High specialisation and process  Tripling of the offers received to more than standardisation including technical due  Own sales employees on site in case of sales 220,200 residential units since 2015 (1) in diligence of individual apartments the value of approx. 22.7 bn EUR  High cost transparency and planning  No remaining apartments (“Swiss cheese”) Specific contact and information  security  High acceptance and trust of residents management tool  Asset management team monitors external  No dependency on external sales partners  Collection and assessment of all incoming facility managers and realises rent potentials offers through the Company‘s customised  High consulting quality  Continuous reduction of vacancy rates, IT tool increase of rents and improvement of  Identification of sales team with both the  Market information for secondary payment behaviour asset and the Company locations available internally  High flexibility and use of local know-how Transparent and efficient communication  with tenants (1) As of December 31, 2019 8

1. COMPANY OVERVIEW Business model with an attractive risk-return profile combines ... + ... the advantages of a property developer with …  Excess return: through realisation of developer margin upon disposal  Potential: reduction of vacancy rates and increase of rents due to Project development measures developer  Exit orientation: clear definition of development measures and exit strategy for each portfolio RETURN ... the advantages of a portfolio holder  Substance: stable assets with significant hidden reserves  Secure cash flows: recurring cash flows from rents Stability: rents cover both capital and operating costs  Portfolio  Risk avoidance: no increase in vacancy rate through tenant-friendly holder modernisation of the portfolios RISK - + 9

1. COMPANY OVERVIEW Merz Group as new anchor investor Merz Group at a glance Merz as new major shareholder of Noratis Lo Long-term-or orie iented sh sharehold lder Tran ansacti tion on str tructure  Renowned family company with a tradition of over 110 years  Investment through Merz Real Estate GmbH & Co. KG in March 2020  Acquisition / secondary placement of 29,4 % of the total shares Ope peratio ional l foc ocus on n the he he health althcare se sector Subscription of 252,525 new shares at 19.80 EUR per share in a capital  The Merz Group ' s main operation focuses on the globally oriented  increase subject to an exclusion of subscription rights (closing in May healthcare sector with the businesses Merz Aesthetics, Merz 2020) Therapeutics and Merz Consumer Care to be known for its brands tetesept and Merz Spezial  With currently around 35 % of the total shares, Merz is the largest shareholder of Noratis  The Merz Group also operates in other businesses, among others the real estate sector Long-term strategic approach backed by the commitment to invest up  to 50 m EUR of equity until the end of 2024 Glob lobal l pr presence Str trategic ic mot motivati tion n Based in Frankfurt with subsidiaries and offices in Europe, USA, Canada,  Latin-America and Asia-Pacific  Accelerated portfolio growth with accompanying short-term reduction in sales activities Financia ial l str trength Increased focus on recurring stable cash flows from rents aiming at  The Merz Pharma Group alone has around 3,200 employees worldwide  independency from sales revenues with a turnover of 1.1 bn EUR in 2019 generating an EBIT of around Optimising the time of sale of the developed portfolios  138 m EUR  No change in the strategic focus: Noratis remains a portfolio developer with clear exit strategy for each portfolio 10