Company Presentation November 2015

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Company Presentation

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Company Presentation

November 2015 2

Content

1)

 

ISARIA Wohnbau AG

2)

 

Strategy and Business Model

3)

 

Residential Real Estate Market Munich

4)

 

Key Financials

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November 2015 Company Presentation 3

At a glance

•  Founded in 1994 | TOP 3 of the Munich developers for

residential projects

•  Focus on business areas construction of ‘new residential

developments’ and ‘revitalization’ of existing buildings

•  Long-standing track record:

more than 2,600 units realised

•  Attractive investment pipeline in the Munich housing

market of multi-year revenues

•  Listed in the Prime Standard of the Frankfurt Stock

Exchange

ISARIA’s headquarters are placed right next to the ‘Siegestor’, in a historic building upon rented premises.

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Management: Michael Haupt (left) and Jan von Lewinski (right)

Management

Michael Haupt

CEO since Feb. 2012

Lawyer

Member of the executive board in various real estate companies

Recently Managing Director of Bouwfonds Investment Management Germany

Jan von Lewinski

COO since Jan. 2014

Banking background

Member of the executive board in various real estate companies

Previously manager/COO in a multinational family office in Frankfurt

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Realised Residential Projects

Unparalleled track record with a strong and established brand and secure access to a broad target group

Karlsfeld nido | so far 395 units

Hohenwaldeckstraße | 261 units

IsarStadtPalais | 144 units

Hirschparkterrassen | 104 units BA 1

Hirschparkterrassen | 206 units BA 2

Giesinger Seenhäuser | 48 units

Schillerstraße | 203 apartments

Stahlstraße La Provence | 55 units

completed 2011

Le Village | 94 units Riem [driem] | 181 units

IsarLiving | 54 units Vogelweidestr. | 167 apartments completed 2011 – 2015 completed 2011 completed 2009 completed 2012 Completed 2011 completed 2007 completed 2012 completed 2011 completed 2007 completed 2012 completed 2006

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Company Presentation November 2015 6

Strategy

Home base

Munich

Expansion to

Hamburg

Residential

projects only

TOP 3 developer for residential projects in Munich 20 years of market experience

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Our targets

Capital market objectives

▶  Currently the only developer for

residential projects listed on the German stock exchange

▶  In 5 years: THE capital market-oriented

developer for residential projects

Unternehmenspräsentation

November 2015 7

Growth strategy

▶  Currently the second-largest residential

construction developer in Munich, expanding to Hamburg

▶  In 5 years: establishment of further

locations through organic growth and/or takeovers/co-operations

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November 2015 8

New Residential Developments

APP.ARTMENTS | Revitalisation

Creation of new housing locations with

up to 500+ units Revitalisation of former ofby transformation into apartments fice buildings

1) vorläufiger Wert zum 30.06.2014

More than 350 apartments realised in former office buildings

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Example for New Developments

District development nido in Karlsfeld

Project Development of _{a unique borough}

Start of Construction 2009 – 2016

Size of plot 154,000 m2

Sections 12

Number of units 553 residential units

Sales volume € 259 million

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Example for APP.ARTMENTS | Revitalisation Project

APP.ARTMENTS Vogelweidestraße 5:

furnished residential apartments

Project Revitalisation of office _building

Number of apartments 167 apartments, furnished

Completed 2014

Sales volume € 50 million

Before After revitalisation

After revitalisation Before

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Germany

ʻ

s metropol regions

continue to grow

Munich expects up to 250,000 additional inhabitant until 2030

Munich annually grows by the population

of Starnberg

This exemplifies the extent of Munich’s rapid growth, that is to say suggests the necessity for a residential development industry capable of realizing homes for an annual population increase comparable to the population of a minor German city of 23,000 inhabitants.

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November 2015 12

Residential Real Estate Market Munich

Munich is one of the most attractive cities within Germany as well as in Europe

Population growth nationwide at the top

▶  Today, already some 30,000 apartments missing

▶  For demographic reasons the number of missing apartments

will continue to rise

By 2030, population growth of approx. 250,000 inhabitants predicted for the greater Munich area

▶  By 2030, Munich has additional demand of approx.

100,000 units

Annually 6,000 apartments are built in Munich on average – significantly less than required

850.000 950.000 1.050.000 2015 2025 2030

30,000

1,050,000 950,000 850,000

expected lack of residental units in 2030:

100,000

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November 2015 13

Development of Rental and

Purchasing Prices for Flats

Source: Gutachterausschuss München 2014, Immobilienscout 24, Statista

(in

€

/qm p.m. and % p.a

.)

Munich Hamburg

Continuing price increase driven by strong demand

(in € /qm p.m. and % p.a .) Unternehmenspräsentation Dezember 2015 14

Entwicklung der Immobilienpreise im

europäischen Vergleich

Munich Hamburg existing building 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 new construction

new construction new construction

-2 .8 % 0% _1.4% _2.7% 8% 9. 9% _13.5% ₁₂.9 % 4. 4% 2. 8% 2010 2015 2005 2005 2010 2015 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 existing building new construction -0 .0 4% 8.2% -0 .9 % -1 .2 % 11 .3 % 5. 2% 11.7 % 5. 1% 1. 8% 6.7% _2.5% 4. 4%

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Source: Statistisches Landesamt der jeweiligen Region

Index 1995 = 100

November 2015 14

Development of real estate prices

in Europe

Metropoles

Germany (Existing and new buildings)

Great Britin (Existing and new buildings) Spain (Existing and new buildings) France (Existing buildings) Netherlands (Existing buildings) Region Zürich Copenhagen Munich Paris London Wien Amsterdam Barcelona/Madrid 0 50 100 150 200 250 300 350 400 1995 2000 2005 2010 Index 1995 = 100 Source:

European Central Bank (ECB)

Countries 0 100 200 300 400 500 600 700 1995 2000 2005 2010

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100 150 200 250 300 350 400 450 500 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Company Presentation November 2015 15

Development of Prices

for Building Land in Munich

ISARIA acquired land worth € 700 million in revenues between 2008 and 2011.

housing prices over 40 % land prices over 60 %

Source: Immobilienmarktbericht 2014 – Gutachterausschuss

Consumer prices Buildingcosts Prices forbuildingland

Strong increase in value since2012

Index 1980 = 100

•  These plots contain sleeping assets of

90 million through price development as well as successful zoning

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Company Presentation November 2015 16 55,7 112,9 83.6 _42.4 110,6 126,7 17.8 53,4 156,0 _59,0

Order Situation

Orderson hand Notarised Sales Handovers

Q4 2014 Q3 2015

Currently ISARIA sells only from `the

drawing board` and so has future revenues

of around 40 million Euro on the books

in € million

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November 2015 17

Order Situation @

_{30 Sept 2015}

vs. planned Revenues 2015

Majority of planned revenues 2015 of

€ 100 million already on the books

60% Actuals 9% Open 31% Already covered by orders

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Results of Operations 9M 2015

9M 2015 €m 9M 2014 €m Change €m Revenues _63.2 _65.5 _-2.3 Total output _103.6 _80.7 _22.9 Cost of materials _-83.1 _-63.3 _-19.8 Gross revenue 20.5 17.4 3.1 Operating expenses _-11.7 _-12.4 _0.7

Fair-value measurement of investment

properties _0.8 _0.0 _0.8

Amortisation _-1.2 _-1.3 _0.1

EBIT _11.6 _5.2 _6.4

Financial result -11.4 -7.8 -3.6

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Net Assets 9M 2015

09/30/2015 €m 12/31/2014 €m Change €m Non-current assets 47.9 38.1 9.8 Current assets _224.3 262.3 _-38.0

thereof properties held for sale _166.7 136.4 _30.3

Non-current liabilities _165.1 115.6 _49.5

Current liabilities 84.1 161.9 -77.8

Total liabilities 249.2 277.5 -28.3

thereof interest-bearing _198.0 190.0 _8.0

Equity 23.0 22.9 0.1

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November 2015 20

Financial position

One Group replaces the more expensive mezzanine financing

Ø Interest rate of interest-bearing liabilities 2012 | 14,2% 2014 | 9,5% 2013 | 10,4% 9M 2015 | 8,1%

Financial position

Unternehmenspräsentation Oktober 2015 18

One Group Funding Prepayments from cumstomers

0 million.€ 50 100 150 200 250 2013 2014 2015 Q3 2012 15 30 88 2 58 95 35 60 106 12 80 26 39 28 47 135 181 229 ₂₂₄ 47% 36% 12% 5%

External financing by banks and One Group

Prepayments received from customers as a quasi-equity component

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November 2015 21

One Group

•  Offers access to equity for project developments

ProReal Deutschlands Fonds 2 + 3

▶  fully placed with a volume

of € 100 million

•  'tailor-made' short-term project development funds (approx. 3 years)

ProReal Deutschlands Fonds 4

▶  at present already more than € 18 million placed

▶  planned issuing volume: € 75 million

▶  conditions: 6,00 % p.a. in the first year (starting 1.10.2016)

6,25 % p.a. in the second year 6,50 % p.a. in the third year group´s own financing platform

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Project financing

3-pillar-model

Project finance

20 – 30%

*

_{70 – 80%}

* Project Equity substitute One Group | ProReal Deutschland Fonds 2 – 4 Equity

ISARIA Wohnbau AG

Debt financing

Bank

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November 2015 23

Project financing

high volume of prefinancing required

Project financing

0% 20% 40% 60% 80% 100% 120% 140% Q15 Q14 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q1 Q2 Q3 Q4 Q5 Q6 Land purchase Start of sales Development phase Start of construction End of construction Profit margin Construction phase

cash-in from Costumers

Borrowed capital Equity-/mezzanine capital Costs accumulated

Distribution phase Unternehmenspräsentation Oktober 2015 18

Project financing

0% 20% 40% 60% 80% 100% 120% 140% Q15 Q14 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q1 Q2 Q3 Q4 Q5 Q6 Land purchase Start of sales Development phase Start of construction End of construction Profit margin Construction phase

cash-in from Costumers

Borrowed capital Equity-/mezzanine capital Costs accumulated

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60 70 80 90 100 110 120 130 140 150 160 01.01.15 01.02.15 01.03.15 01.04.15 01.05.15 01.06.15 01.07.15 01.08.15 01.09.15 Company Presentation November 2015 24

Equity: years with

high profits expected

EPRA Germany ISARIA Wohnbau AG Share EPRA Europe

Share price performance in 2015

Index 01.01.2015 = 100

€4.20

€4.00

€

90 million

Sleeping assets of the projects’ acquisition costs

15%

developers margin of €1 billion project volume

€

4.76/share

€

23 million

equity

€5

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November 2015 25

Widespread

Shareholder Structure

The shareholder structure is characterised by institutional and retail investors.

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All Shareholders below 11%

Freefloat

62.81%

Fidelity Investment Funds

2.88% Helvetic Private Investment 10.05% Captree GmbH 8.84%

aeris CAPITAL S.A.

7.78%

Thomas Ermel

3.79%

Janus Capital

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November 2015 26

Project Sales Volume _{in million}_€

Karlsfeld 146

Elsenheimer Str. 73

Allach 259

Tower 179

Tübinger Straße | Hansastraße 182 Kapstadtring 1 | Hamburg 26 Wohnpark Nord | Hamburg 150

Total 1.015

Elsenheimer Str.

Karlsfeld

Development Projects 2015 and beyond

Elsenheimer Str. Allach

Tübinger Straße Tower

Wohnpark Nord | Hamburg

Developments worth sales volume of average

€ 200 million p.a. for 5 years

Kapstadtring 1 | Hamburg

Coming soon

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Contact

Michael Haupt CEO ISARIA Wohnbau AG Leopoldstraße 8 80802 Munich Tel.: +49 89 | 38 99 84 – 100 Fax: +49 89 | 38 99 84 – 790 E-Mail: [email protected] Bernhard Bucher

Head of Group Accounting ISARIA Wohnbau AG Leopoldstraße 8 80802 Munich Tel.: +49 89 | 38 99 84 – 240 Fax: +49 89 | 38 99 84 – 790 E-Mail: [email protected]

Financial calender

24 November 2015

German Equity Forum 2015, Frankfurt am Main

18 March 2016

Publication Annual Financial Statements 2015

21 April 2016

Annual General Meeting

13 May 2016 Publication of Q1 Report 12 August 2016 Publication of Q2 Report 14 November 2016 Publication of Q3 Report

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Disclaimer

This presentation contains statements referring to the future. Forward-looking statements are statements, which are not based on historical events and facts. These statements are based on assumptions, forecasts and evaluations of future developments by the Executive Board. These assumptions, forecasts and evaluations were made on the basis of all the information available at the current time. If the assumptions of future developments used in the statements and evaluations do not materialise, the actual results might deviate from the current expectations. The Executive Board and the Company do not accept any liability to continue any statements or adjust such to future events and developments over and above the legal requirement.