UBM Development A Trade Developer of European scale April 2015
Disclaimer This presentation was prepared by UBM Realitätenentwicklung Aktiengesellschaft ( the Company ; UBM Development ) solely for use at investors meetings and is furnished to you solely for informational purposes. This presentation dates as of April 2015. The facts and information contained herein might be subject to revision in the future. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. None of the Company or any of its parents or subsidiaries or any of such person's directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied as to, and no reliance should be placed on, the accuracy or completeness of the information contained in this presentation. None of the Company or any of its parents or subsidiaries or any of their directors, officers, employees and advisors nor any other person shall have any liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of this presentation. The same applies to information contained in other material made available at the meeting. This document is selective in nature and is intended to provide an introduction to, and overview of, the business of the Company. Wherever external source are quoted in this presentation, such external information or statistics should not be interpreted as having been adopted or endorsed by the Company as being accurate. This presentation contains forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. These statements generally are identified by words such as "believes", "expects", "predicts", "intends", "projects", plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including but not limited to assumptions, opinions and views of the Company or information from third party sources, contained in this presentation are based on current plans, estimates, assumptions and projections and involve uncertainties and risks. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. The Company does not represent or guarantee that the assumptions underlying such forward-looking statements are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation. No obligation is assumed to update any forward-looking statements. By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and of the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company s business. 1
COMPANY OVERVIEW UBM Development at a glance UBM Development Key Facts Listed since 1873 Highly experienced management incentivized due to direct shareholdings Strategic shift from asset management towards asset light pure play trade developer Integrated group will lead to increased capacity of project development resources Lean company structure should lead to increase of profitability and dividend UBM Financials EURm 2013 1 2014 2 Total assets 630.8 1,077 Equity 163.7 265 Production Output 286.7 483 EBITDA 31.9 57 EBIT 29.4 54 Net Profit 13.5 28 Strategy Areas of Operation, based on book value 3 Focus on three growth markets (Austria, Germany and Poland) and three asset classes (residential, office and hotel) Continuous product development and sale along the cash re-investment cycle Consistent cycle speed and high deal flow mitigates business model risk Asset light approach: Operating in partner structures where projects are not fully consolidated New capital market approach Austria Germany Poland Other 40% 26% 24% 10% Country Distribution Residential Office Hotel Landbank Other 11% 29% 23% 20% 17% Asset Classes Residential Hotel Office Other 14% 33% 38% 16% Marked for Exit 2 1 UBM Realitätenentwicklung stand-alone 2 Preliminary Pro-forma UBM Development (01/01/2014 31/12/2014) including PIAG Immobilien AG 3 Book value only consists of completed projects and the percentage of completion for developments
COMPANY OVERVIEW Highly experienced and committed management team with strong track record Karl Bier, CEO >30 years of industry experience Responsibility for: Strategy, Communication, IR, Internal Audit, Risk - Management, HR, Integration >40 years of industry experience and group tenure Responsibility for: Accounting, Controlling, Audit, Tax, Compliance Heribert Smolé, CFO >24 years of industry experience Responsibility for: Development in Austria, Southeastern Europe, IT, QM Claus Stadler, COO 1 >21 years of industry experience Responsibility for: Asset Management, Transaction, Marketing, Legal Michael Wurzinger, COO >10 years of industry experience Responsibility for: Development in Germany, Poland, Czech Rep., Western Europe, Hotel Management Martin Löcker, COO 3 1 Designated as an additional member of the Managing Board, pending his formal appointment requires an amendment to the Articles of Association to increase the maximum number of members of the Managing Board.
COMPANY OVERVIEW UBM Development combines the strengths of UBM and S+P Milestones in UBM's history 1873: UBM listed on Vienna Stock Exchange 1992-1999: UBM enters CZ, PL and GER 2000: S+P founded, asset-light approach 2001-2010: UBM enters opportunistic markets with hotels (FR, NL) 2015/2016: Capital increase planned Realization of synergies New strategy: divestment of asset management portfolio Clear dividend policy 1990: Transformation from real-estate company to trade developer 2014/2015: Spin off and Merger of UBM and Strauss & Partner UBM Independent developer 2016/2017: Pure-play developer Portfolio reduction completed Goal: Prime Market at Vienna Stock Exchange 4
VALUE CREATING STRATEGY Key strategic pillars of UBM Development Strategic focus Focus on home markets: Austria, Germany and Poland and on three asset classes: Residential, Hotel and Office Portfolio roadmap Exit of large share of current investment portfolio (EUR 250m planned) Strong project backlog secures development flow for the next few years 5 Pure play trade developer Full coverage of the value chain Following the asset light model In-house technical expertise along the value chain Operational efficiency Lean company structure Growth in profitability and dividend capacity Performance and risk management secure project returns
CAPITAL MARKET STRATEGY UBM Development with stronger capital market focus and attractive dividend development Capital Market Strategy Dividend per share Shareholder Structure Strong capital market focus and commitment to active investor relations approach Capital increase in 2015 to enable further growth, strengthen equity ratio and increase free float High management incentive due to direct shareholdings in course of higher free-float Listing on Standard Continuous Market planned for end of April at the latest, Goal: Prime Market 0.62 2013 1.25 2014 1 +102% Dividend policy going forward, aiming for payout ratio 2 of 30-50% Free Float 40.7% Management + Supervisory Board 11.0% Syndicate (Ortner/ Strauss) 48.3% 6 1 Subject to decision of Annual General Meeting 2 Based on net income of the period
Key investment highlights 1 2 3 4 Pure-play developer Trade developer with focused business model Diversification Balancing of market volatility by investing in several regions and asset classes Synergies and culture change Critical mass and strong network Entrepreneurial management team Capital market commitment Solid financial base Strong profit development Realization of cash potential by disposal of non-core real estate assets 7
PURE-PLAY DEVELOPER UBM Development s competitive strengths along the cash re-investment cycle Reinvestment & dividends Proceeds from high sales turnover rate used for future projects and dividends Acquisition Local network & know-how: helps securing attractive locations, converting land, acquiring permits Good reputation: makes UBM partner of choice Standardized due diligence to minimize risk 32 land bank acquisitions in last 4 years Concept and design In-house experts carry out all customer-facing activities High level of cost control and flexibility 8 Optimized exit timing & yield Established contacts: help identifying right buyers Central transaction team & experience: higher number & frequency of transactions Good reputation: investors want to participate early in project 74 transactions in last 3 years Established strengths guarantee optimal development process Asset-light approach Operating in partner structures where projects are not fully consolidated Furthermore, engaging in forward deals to limit capital exposure 140 experts Implementation Overpriced tenders prevented by in-house experts Tight cost and quality control during execution Flexible on-site management through in-house project managers
VALUE GENERATION Typical value-add potential of a fully-integrated real estate developer Development process broken down into key steps Value Creation Exit with insignificant discount possible in earlier stages of development in current market environment Green field Development of green field Developed plot Development planning Marketing of property/ hotel management Pre-Marketing of property General Contracting Construction Finalized project Divested building 9
PURE-PLAY DEVELOPER Example of a typical development project Albert Roßhaupter Straße 43 in Munich Acquisition of plot as a commercial property. Original plan was to build offices and a hotel. Negotiations with the city of Munich followed to convert the plot partly into residential property in order to increase value. Development of several concept studies (school, office, hotel, boarding house) to get permit for residential part. Breakthrough: Agreement with authorities to build 26 flats, a hotel with 207 rooms and an office part (3,200m 2 ). 1 4 2 3 Individual sale of flats to private individuals. The hotel and office parts were sold to a large international investor. Implementation of construction works. Carcass done by general contractor. UBM responsible for fit out works, project management and controlling. 10
Key investment highlights 1 2 3 4 Pure-play developer Trade developer with focused business model Diversification Balancing of market volatility by investing in several regions and asset classes Synergies and culture change Critical mass and strong network Entrepreneurial management team Capital market commitment Solid financial base Strong profit development Realization of cash potential by disposal of non-core real estate assets 11
Market attractiveness DIVERSIFICATION Go-to-market approach defined in terms of markets and asset classes Geographies: Targeting European metropolitan regions with high growth dynamics Segments: Increasing focus on Residential and Hotel while maintaining a diversified portfolio "Follow the Customer" European metropolitan regions with growth potential Focus on hotel Successful examples: Amsterdam, Paris Focus on Growth Top metropolitan areas in Germany, such as Frankfurt, Berlin, Munich, Hamburg, Stuttgart, Cologne, and Düsseldorf plus Vienna, Warsaw, Krakow Strengthen the Core Other large cities in core markets such as Graz, Salzburg (AT), Wroclaw (PL) Strategy for Sector relative share Details / Approach Residential Focus on mid- and high price segment Close look on attractive niches markets (e.g., student or elderly housing) Hotel Focus on European cities with top RevPar-development 1 Coverage of 3* to 5* segments, long stay apartments, and boarding houses Office Focus on CBD locations and business parks with good public infrastructure (e.g., near airports) Reduced share due to high volatility in the segment No coverage Market experience Deepen basis Other Combination of multiple asset classes in one project or other legacy assets Opportunistic approach due to limited number of projects 1 RevPar = Revenue per Room Available 12
DIVERSIFICATION Positive market outlook indicators across targeted markets Austria Germany Poland Broad asset class diversification City focus on Vienna, Salzburg, Graz and Linz Trend: centralization of population in metropolitan areas Population development in Vienna 1 (in k people) Broad asset class diversification City focus on Berlin, Munich, Hamburg and Frankfurt Trend: strong demand and increasing price levels for housing space in metropolitan areas Population growth in GER Top 6 markets 2 (in k people) Thousand 2013 2020e Asset class focus on hotel City focus on Warsaw, Wroclaw, and Krakow Trend: structural change fuels growth of office and residential real estate markets Growth of office occupation in PL 3 (in %) 1,767 +4% 14A 15E 16E 17E 18E 19E 1,838 20E 4,000,000 3,500,000 1,500,000 1,000,000 500,000 0 +137 Berlin +65 Munich Cologne Hamburg +127 +7 +28 Frankfurt/ Main +14 Stuttgart 2.2% 1.7% 13 14 2.2% 15 3.7% 16 Project example Quartier Belvedere Central, Vienna Project example Trikot Office, Munich Project example Alma Tower, Krakow Sources: 1 : ÖROK, ²: Börse Frankfurt, Wohnungsmarktbericht Deutschland JLL, UNHABITAT, ³: DekaBank 13
DIVERSIFICATION Current portfolio 1 UBM Development asset values Segment Matrix UBM Development balance sheet view 2,3 Land Bank 2,3 Book value, in m Portfolio share in % 13.5m 119.3m 108.1m 99.1m 94.7m 1.3% 11.0% 10.0% 9.2% 8.6% 84.0m 54.9m 89.8m 53.8m Regional split 1.6m 7.8% 119.1m 5.1% 53.6m 42.2m 8.3% 42.7m 5.0% 0.2% 11.0% 4.95% 3.9% 3.9% 21.9m 22.0m 19.1m 16.1m 26.6m Other 2.0% 2.0% 1.8% 1.5% 2.5% 14 Residential Office Other Split by segment Hotel 864.4m 217.8 m 1 Portfolio consists of completed projects held for sale and current developments 2 All data as of December 31 st 2014 3 Including 100% of value of fully consolidated assets and respective value shares of at equity held assets
HOTEL RESIDENTIAL DIVERSIFICATION Attractive project pipeline in metropolitan cities (1/2) St. Peter, Graz Land area: 1,740 m² Number of units: 36 Sales volume: 7,5 mn Start / Completion: 05/2014 / 07/2015 Keibelstraße, Berlin Land area: 3,944 m² Sales volume: 58 60 mn Start / Completion: 04/2014 / 09/2015 Central Living, Frankfurt Land area: 3,643 m² GFS above ground: 7,423 m² Number of units: 78 Start / Completion: BA II: 02/2014 / 02/2016 KAHN 1, Graz Land area: 4,549 m² GFS above ground: 3,648 m² Number of units: 48 Start / Completion: 07/2014 / 07/2016 St. Peter Hauptstraße 2 8042 Graz Keibelstraße 6 10178 Berlin Friedrich-Dessauer Straße 60438 Frankfurt a. M. Kahngasse 12 8045 Graz 2015 15 16 17 2018 Holiday Inn, Berlin Category: Holiday Inn Express Rooms: 184 Operator: IHG Start / Completion: 04/2015 / 11/2016 Holiday Inn, Munich Category: Holiday Inn Express Rooms: 302 Operator: IHG Start / Completion: 04/2014 / 11/2016 Gateway Gardens, Frankfurt Category: 3-4* Rooms: 288 Start / Completion: 04/2015 / 12/2016 Hyatt Regency, Amsterdam Category: 5* Rooms: 211 Operator: Hyatt Regency Start / Completion: 2015 / 2016-2017 15 Klosterstaße 48 Berlin Birketweg 80639 Munich Bessie-Coleman-Str. 16 60549 Frankfurt a. M. Sarphatistraat 102-104 1018 GV Amsterdam
MIXED OFFICE DIVERSIFICATION Attractive project pipeline in metropolitan cities (2/2) Arena Boulevard, Berlin Land area: 1,692 m² ~ 8,700 m² GFS above ground Start / Completion: 06/2014 / 09/2015 Trikot, Munich Land area: 4,886 m² GFS above ground: 12,976 m² Start / Completion: 04/2013 / 04/2015 Poleczki Business Park, Warsaw Poleczki B2: Land area: 6,533 m² GFS above gr. 9,600 m², in construction Poleczki B3: land area: 7,668 m² GFS above ground 9,600 m², Start / Completion: 01/2016 / 04/2017 Poleczki C2: Land area: 7,700 m² GFS above ground 14,600 m², Start / Completion : 01/2017 / 06/2018 Am Ring 20, Munich Land area: 9,190 m² GFS above ground: 12,453 m² Start / Completion: 04/2015 / 04/2017 Valeska-Gert Straße 10243 Berlin Elsenheimerstraße 1 80687 Munich Poleczki 35 02-822 Warsaw Leuchtenbergring 20 81677 Munich 2015 15 16 17 2018 Office: Residential: QBC ½ land area: 6,531 m² / GFS 47,000 m² / 2016-2018 QBC 3 land area: 1,090 m² / GFS 8,900 m² / 2015 2017 QBC 4 land area: 2,510 m² / GFS 20,000 m² / 2016-2017 Hotel: Land area: 2,362 m² GFS: 14,100 m² (incl. loggia) Sales volume: 35.7 mn Number of apartments: 135 Start / Completion: 2015 / 2017 Boarding-House: 16 Category: 3- and 4 star Rooms: 311 (3*) and 266 (4*) Operator: Accor / Ibis (3*) and Novotel (4*) Start / Completion: 2015 / 2016 Land area: 1,014 m² GFS: 11,300 m² Serviced apartments: 175 Start / Completion: 2015 / 2017 Quartier Belvedere Central, Main Railway Station, Vienna, Austria
Key investment highlights 1 2 3 4 Pure-play developer Trade developer with focused business model Diversification Balancing of market volatility by investing in several regions and asset classes Synergies and culture change Critical mass and strong network Entrepreneurial management team Capital market commitment Solid financial base Strong profit development Realization of cash potential by disposal of non-core real estate assets 17
SYNERGIES AND CULTURE CHANGE UBM Development - value added through productivity synergies and enhanced growth 1 GROWTH Full value chain expertise in all markets UBM Realitätenentwicklung s technical expertise plus S+P s experience with asset-light approach Most client-facing activities carried out in-house: consistent cost control, greater flexibility, deeper customer relationship Leveraging asset class synergies Combining S+P's and UBM Realitätenentwicklung s experience and know-how in the hotel, office and residential segments leading to better penetration of all asset classes in all markets EXAMPLES Application of the asset-light approach to the office and hotel segment Full end-to-end service for the customer in cities where S+P could not use the UBM network in the past Projects in markets where so far mainly S+P has been active; e.g. in Berlin Better penetration of the residential market in Austria 2 COST / PRODUCTIVITY Avoidance of operational redundancies and best practice sharing Process integration: bundling know-how, Shared Services, etc. Improve borrowing conditions due to increased size EXAMPLES Location consolidation Previously outsourced activities by S+P are now carried out by in-house experts which leads to higher cost control 18
Key investment highlights 1 2 3 4 Pure-play developer Trade developer with focused business model Diversification Balancing of market volatility by investing in several regions and asset classes Synergies and culture change Critical mass and strong network Entrepreneurial management team Capital market commitment Solid financial base Strong profit development Realization of cash potential by disposal of non-core real estate assets 19
SOLID FINANCIAL BASE Strong financial growth trajectory expected to continue UBM Realitätenentwicklung stand alone UBM Development 2014 2 xx Growth, in % Production output Production output (in EURm) and growth (yoy) 281.9-8 258.3 11 286.7 Merger 483 EBITDA 57 2011 12 1 2013 EBIT 54 Net profit (in EURm) 8.9 13.7 13.5 Net profit 28 2011 12 1 2013 2014 2015 20 1 Restated; acc IAS 8; 2 Preliminary 2014 pro-forma numbers
SOLID FINANCIAL BASE. and is backed up by a solid financing structure UBM Realitätenentwicklung stand alone UBM Development 2014 Mid- and mid-term targets Equity/ Equity Ratio xx Equity ratio, in % 24.4 24.2 26.0 145 154 Equity in EURm 164 2014 preliminary Total assets: EUR 1.077mn Equity: EUR 265mn Net debt 1 : EUR 571mn Targets (mid-term) Equity ratio: 30 40% Payout ratio: 30 50% LTV: 40 50% Net debt 1 : 571-250 2011 2012 2013 2014 2 Mid-term 21 1 Net Debt: debt resulting from bonds, financial liabilities, liabilities to affiliated companies, financing of working capital reduced by liquid funds and excess cash 2 2014 preliminary pro-forma numbers
Regional Split UBM DEVELOPMENT ASSET LIGHT PORTFOLIO APPROACH Portfolio reduction in 2015/16 will boost earnings and increase cash-flow INDICATIVE PLANNING FIGURES Divestment targets Planned Divestments UBM Development 1, in percentage of total divestments 250 4.2% 10.3% 15.2% 10.1% 12.7% 5.9% 12.1% 72 Already realized 2.5% 8.4% 1.5% EUR 250m total net cash-in target Other 10.8% 6.4% 22 1 Excl. M6 highway 2 Includes projects under development Residential Hotel Office Other Split by segment
National Europe DIVERSIFICATION A pure-play trade developer with an asset-light focus - unique among publicly traded companies SIMPLIFIED ILLUSTRATION Differentiation of UBM from its peer group Asset Manager Asset Management and Development Real Estate Developer Immofinanz CA IMMO IMMOBEL GTC Pure Play Asset Managers in Germany and Austria Kaufman Broad VIB Vermögen HIAG nexity Berkeley ISARIA DOM ++ Asset intensity -- UBM Development offers a unique combination of core competence, asset classes, and focus markets Diversification Balancing of market volatility by investing in several regions and asset classes Technical expertise Benchmark in architecture, planning and realization Network Experienced management with strong network for developments, financing and transactions 23
Standing asset base Ongoing project developments VALUE GENERATION UBM s value comprises value of standing assets, ongoing developments and potential project pipeline (1/2) PROJECT DEVELOPMENTS (including pipeline) TOTAL VALUE STANDING ASSET BASE 24
Ongoing project developments VALUE GENERATION UBM s value comprises value of standing assets, ongoing developments and potential project pipeline (2/2) Future scope of ongoing developments (orderbook) Total project volume EUR 1.1bn Finalized share of ongoing developments GAV: EUR 400mn Current total development pipeline of EUR 1.5bn incl. assumed minimum margin requirement Not yet on UBM s balance sheet Profit margin will be realized once the project is sold Target gross margin of total volume depends on asset class and reflects costs including overhead of UBM Group Represents ca. 24 months of outstanding project duration Accounting treatment depends on asset class All directly allocable costs charged to the project No partial profit realization Represents on average ca. 12 months of project duration Standing asset base 1 GAV 2 : EUR 682mn LTV 3 : 58.6% Average rental yield: 7% Hotels Accounted for at costs, regular depreciation Office Other Accounted for at costs plus reasonable exit margin significantly below target gross margin, but conservative markup to market value Accounted for at costs plus reasonable exit margin significantly below target gross margin, but conservative markup to market value 1 Currently marginal residential assets on UBM s balance sheet 2 Including 100% of value of fully consolidated assets and respective value shares of at equity held assets but not including off-balance lease structures 3 Only includes debt of project entities, excluding mezzanine and bond instruments on UBM Group level 25
GROWTH POTENTIAL UBM is continuously screening projects worth of up to EUR 5bn p.a. to fuel growth backed by a strong project pipeline of currently ca. EUR 1.5bn UBM s project volume is spread across asset classes and regions Estimated total project volume for the next 3 years 13.6% 24.4% 5.4% Regional split 16.8% 7.6% 13.5% 6.5% 1.9% Other 4.2% 4.6% 1.5% Residential Office Hotel Other ~1.5bn 26
INVESTOR RELATIONS IR Information for UBM Development Share Information Merger PIAG/UBM 19 Feb 2015 Share price 1 41,00 EUR Market capitalisation 246 m EUR Official market Vienna Stock Exchange Std. Auction Market No indices Number of shares 6,010,000 outstanding Ticker symbol UBS VI ISIN AT0000815402 Shareholder structure Free Float 40.7% Management + Supervisory Board 11.0% Syndicate (Ortner/ Strauss) 48.3% IR Calendar 2015 14.04.2015 Annual report 2014 14.04.2015 Press conference 12.05.2015 Q1 2015 20.05.2015 134th Annual General Meeting 22.05.2015 Trade Ex-dividend 2014 26.05.2015 Payment dividend 2014 27.08.2015 Half-year report 2015 11.11.2015 Q3 2015 IR Contact Do you have any questions? For further information please contact the department Investor Relations. Julia Kozielski T +43 (0)50 626-3827 investor.relations@ubm.at 27 1 as of Mar 31 st, 2015
Contents Projects Overview Financials & Other 29
DIVERSIFICATION Reference projects (1/3) Office Project B picture Project B picture Project C picture Neue Mitte Lehen, Salzburg, Austria Size: 16,626 m² gross land area Construction completed: 2008 Main tenants: DM, Libro, Ernstings Family, Flöckner, Stadtbücherei, Egos, Bodner, Avg. rent per sqm per month: 17.40 Owner: UBM Development Address: Schumacherstraße 14, 5020 Salzburg Office Campus / O2 World, Berlin, Germany Size: 26,000 m² gross land area Construction completed: June 2014 Main tenants: Zalando, Anschutz Entertainment, EHC Eisbären Management Avg. rent per sqm per month: 15.54 Sold in December 2014 Address: Mühlenstraße 11-12, 10243 Berlin ALMA Tower, Cracow, Poland Size: 13,171 m² gross land area Construction completed: April 2014 Main tenants: Alma, Vistula, Krakchemia, Onet Avg. rent per sqm per month: 14.0 Owner: UBM Development Address: Pilotów 10 3, 1-462 Krakow 30
DIVERSIFICATION Reference projects (2/3) Hotel Project A picture Project B picture KEMPINSKI, Palais Hansen, Vienna, Austria Number of rooms: 152, category 5* Occupancy rate 2014: 63.4% Construction completed: February 2013 Managed by Kempinski Hotel Vienna Management GmbH Owner: UBM Development and project partners Address: Schottenring 24, 1010 Vienna ANGELO Westpark, Munich, Germany Number of rooms: 207, category 3*plus Occupancy rate 2014: 73% Construction completed: February 2013; Sold in September 2013 Managed by Vienna International Hotelmanagement AG Address: Albert-Roßhaupter-Straße 45, 81369 Munich Project C picture Intercontinental, Warsaw, Poland Number of rooms: 401, category 5*plus Occupancy rate 2014: 79.55% Construction completed: 2003 Managed by Intercontinental Hotels Group Address: Emilii Plater 49, 00-125 Warszawa 31
DIVERSIFICATION Reference projects (3/3) Residential Project A picture Sternbrauerei, Salzburg, Austria 100 units and 146 parking spaces Sales volume: 62.9 mn Construction completed: June 2014 Address: Rainbergstraße 1 & Steinbruchstraße 1, 5020 Salzburg Project B picture Inselstraße, Berlin, Germany 88 units Sales volume: 34.75 mn Construction completed: November 2013 Address: Inselstraße 9-10, 14129 Berlin Project C picture Villa Galicija, Krakow, Poland 72 units Sales volume: 8.2mn Construction completed: 2011 Address:Ul. Dominikanow 32, 31-409 Krakau 32
Contents Projects Overview Financials & Other 33
DIVERSIFICATION Current portfolio 1 UBM Development operational KPIs Area in thd. sqm/ hotel rooms Segment Matrix UBM Development full view 2 Area 3 in thd. sqm, hotel segment in number of rooms in operation Land Bank 2,3 20.5 67.2 46.1 719 rooms 782.4 38.9 36.8 703 rooms 119.2 Regional split 0.9 108.6 37.1 517 rooms 492.9 Other 11.2 9.3 48.0 144 rooms 1,398.7 34 Residential Office Split by segment Other Hotel 434.2 thd. sqm 2,083 rooms 2,793 thd. sqm 1 Portfolio consists of completed projects held for sale and current developments 2 Assuming a 100% share for rooms and area - both for fully consolidated and at equity held assets; 3 For land bank: full view, size of plot
DIVERSIFICATION Current portfolio 1 UBM Development AG fully consolidated properties Book value, in m Portfolio share in % Segment Matrix UBM Development 2 Land Bank 12.2m 115.6m 47.6m 11.9m 78.9m 1.74% 16.5% 6.8% 1.7% 11.3% 84.0m 41.2m 50.9m 35.9m Regional split 1.6m 12.0% 35.1m 5.9% 53.6m 20.7m 7.3% 42.6m 5.1% 0.2% 5.0% 7.6% 3.0% 6.1% Other 21.9m 11.0m 10.0m 3.1% 1.6% 1.4% Residential Office Other Hotel Split by segment 26.6m 3.8% 35 1 Portfolio consists of completed projects held for sale and current developments 2 All data as of December 31st 2014 only fully consolidated projects 517.2m 183.9m
DIVERSIFICATION Current portfolio 1 UBM Development at-equity held properties Book value, in m Portfolio share in % Segment Matrix UBM Development 2 Land Bank 1.3m 3.7m 60.5m 87.2m 15.8m 0.3% 1.0% 15.9% 22.9% 4.2% 13.7m 38.9m 17.9m Regional split 84.0m 3.6% 21.5m 10.2% 0.1m 4.7% 22.0% 5.6% 0.0% Other 11.0m 9.2m 16.1m 2.9% 2.4% 4.2% Residential Office Other Hotel Split by segment 347.2m 33.9m 36 1 Portfolio consists of completed projects held for sale and current developments 2 All data as of December 31st 2014 only at equity held projects
DIVERSIFICATION UBM's hotel development models 1/2: Straight sale Cash streams UBM Development develops hotel assets Purchase price for the hotel Hotel operator Investor Monthly lease payments UBM Development sells hotel to investor when development is finalized UBM Development is no longer involved in daily operations Operator leases hotel from investor and operates it 37
DIVERSIFICATION UBM's hotel development models 2/2: Sell, lease & operate Revenues from hotel operation Purchase price for the hotel Cash streams Hotel operator Investor Management fee Monthly lease payments (20 years contract) UBM Development sells hotel to investor when development is finalized Investor is not permitted to run hotel; UBM Development steps in to create rental income (lease payment) UBM Development receives all proceeds from hotel operation and pays management fee to operator UBM Development guarantees lease payments for 2 years and builds provisions for it 38
SYNERGIES AND CULTURE CHANGE Strong and well-established local brands under the umbrella of UBM Development form a strong network UBM Development Insights Headquarters in Vienna allow local proximity and optimal cooperation Local companies in home markets and interesting locations enable access to local know-how, opportunities, skilled employees, and partners Strong local brands enable tailored market presence 39
BACK UP - FINANCIALS Consolidated income statement (UBM stand alone until 2013 and 2014 pro-forma including PIAG) m 31.12.2014 (pro-forma) 31.12.2013 (UBM stand alone) 31.12.2012 (UBM stand alone) 31.12.2011 (UBM stand alone) Sales revenues 315,3 217.3 134.0 196.3 Own work capitalized in noncurrent assets 27,4 0.3 0.0 0.0 Other operating income 12,9 2.3 7.8 7.6 Result from associated companies Material expenses and other services 24,8 12.7 4.5 (1.0) (244,6) (145.5) (83.8) (133.9) Personnel expenses (34,2) (20.4) (17.9) (16.0) Other operating expenses (45,0) (34.8) (30.1) (29.2) EBITDA 56,8 31.9 14.5 24.8 Depreciation & amortization (3,3) (2.5) (2.4) (1.7) EBIT 53,5 29.4 12.1 23.1 Financial results (22,1) (11.6) 0.8 (8.6) EBT 31,4 17.8 12.9 14.5 Taxes on income (3,2) (4.3) 0.8 (5.6) Net income 28,2 13.5 13.7 8.9 40
BACK UP - FINANCIALS Consolidated balance sheet (UBM stand alone until 2013 and 2014 pro-forma including PIAG) m 31.12.2014 (pro-forma) 31.12.2013 (UBM stand alone) 31.12.2012 (UBM stand alone) 31.12.2011 (UBM stand alone) Total assets 1,077.4 630.8 633.0 592.6 Non-current assets 726.6 427.7 437.8 389.2 Current assets 350.8 203.1 195.2 202.4 Shareholders equity 265.3 163.7 153.7 144.8 Equity ratio 24.6% 26.0% 24.2% 24.4% Current liabilities 250.8 118.6 92.8 131.8 Non-current liabilities 561.3 348.5 386.5 315.0 Net debt 571 321.9 333.3 288.1 Earnings per share ( ) 4.35 2.14 2.15 1.65 Dividends per share ( ) 1.25 1 0.62 0.55 0.55 Payout ratio 28.7% 29.0% 27.0% 33.3% 41 1 Subject to decision of Annual General Meeting
COMPANY OVERVIEW EBT and equity development of UBM EBT development ( m) 3.3 3.1 6.8 4.1 3.9 3.1 3.5 3.4 4.9 8.3 4.4 7.2 11.4 16.6 16.8 17.8 14.2 14.4 14.6 12.9 11.2 9.3 9.9 2.6 2.7 3.0 3.3 3.3 3.0 3.3 3.3 3.3 3.7 1) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 EBT Thereof dividend paid Profit and loss transfer agreement Equity development ( m) 52.4 54.7 58.4 58.3 59.1 59.8 59.4 58.5 60.0 64.4 72.4 72.0 77.6 86.6 90.1 102.0 108.5 122.8 132.5 139.5 144.8 153.7 163.7 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Positive earnings since 1991 despite of several financial and economic crises Sustainable increase of equity due to stable earnings development and stable dividend policy 1) restated; the comparative figures have been adjusted in accordance to IAS 8 42