PORR AG - UBM Development AG

UBM Development A Trade Developer of European scale April 2015

Disclaimer • •

• •

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1

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. 7 April 2015

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

Strategy

• Focus on three growth markets (Austria, •

•

2

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

UBM Financials 20131

EURm

20142

Total assets

630.8

1,077

Equity Production Output

163.7 286.7 31.9

265 483 57

EBIT

29.4

54

Net Profit

13.5

28

EBITDA

Areas of Operation, based on book value3 Austria

Residential

Residential

Germany

Office

Hotel

Poland

Hotel

11%

Landbank

29%

Other

40%

Office

14%

Other

33%

Other

26%

23% 38%

24%

20%

10%

17%

16%

Country Distribution

Asset Classes

Marked for Exit

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

7 April 2015

COMPANY OVERVIEW

Highly experienced and committed management team with strong track record >40 years of industry experience and group tenure

>21 years of industry experience

Responsibility for: • Accounting, Controlling, Audit, Tax, Compliance

Responsibility for: • Asset Management, Transaction, Marketing, Legal


Heribert Smolé, CFO Responsibility for: • Strategy, Communication, IR, Internal Audit, Risk Management, HR, Integration

Michael Wurzinger, COO



Responsibility for: • Development in Austria, Southeastern Europe, IT, QM

Responsibility for: • Development in Germany, Poland, Czech Rep., Western Europe, Hotel Management

Karl Bier, CEO

Claus Stadler, COO1

3

Martin Löcker, COO

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.

7 April 2015

COMPANY OVERVIEW

UBM Development combines the strengths of UBM and S+P Milestones in UBM's history 1873: UBM listed on Vienna Stock Exchange

1990: Transformation from real-estate company to trade developer

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)

2014/2015: Spin off and Merger of UBM and Strauss & Partner

UBM Independent developer

4

2015/2016: • Capital increase planned • Realization of synergies • New strategy: divestment of asset management portfolio • Clear dividend policy

2016/2017: • Pure-play developer • Portfolio reduction completed • Goal: Prime Market at Vienna Stock Exchange

7 April 2015

VALUE CREATING STRATEGY

Key strategic pillars of UBM Development Strategic focus

Portfolio roadmap

• Focus on home

• Exit of large share of

markets: Austria, Germany and Poland…

current investment portfolio (EUR 250m planned)

• …and on three asset

• Strong project backlog

classes: Residential, Hotel and Office

secures development flow for the next few years

Pure play trade developer • Full coverage of the value chain

• Following the asset light model

• In-house technical expertise along the value chain 5

Operational efficiency

• Lean company structure

• Growth in profitability and dividend capacity

• Performance and risk management secure project returns 7 April 2015

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

1.25 €

• Capital increase in 2015 to enable further growth, strengthen equity ratio and increase free float

+102%

0.62 €

Free Float 40.7%

• High management incentive due to direct shareholdings in course of higher free-float

2013

• Listing on Standard Continuous Market planned for end of April at the latest, Goal: Prime Market

6

20141

Syndicate (Ortner/ Strauss) 48.3%

Management + Supervisory Board 11.0%

Dividend policy going forward, aiming for payout ratio2 of 30-50%

1 Subject to decision of Annual General Meeting 2 Based on net income of the period

7 April 2015

Key investment highlights

7

1

Pure-play developer • “Trade developer” with focused business model

2

Diversification • Balancing of market volatility by investing in several regions and asset classes

3

Synergies and culture change • Critical mass and strong network • Entrepreneurial management team • Capital market commitment

4

Solid financial base • Strong profit development • Realization of cash potential by disposal of non-core real estate assets

7 April 2015

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

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 8

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

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

Concept and design • In-house experts carry out all customer-facing activities • High level of cost control and flexibility

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

7 April 2015

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

9

Development of green field

Developed plot

Development planning

Pre-Marketing of property

General Contracting

Construction

Finalized project

Marketing of property/ hotel management

Divested building

7 April 2015

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.

Individual sale of flats to private individuals. The hotel and office parts were sold to a large international investor.

10

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 (3,200m2).

1

2

4

3 Implementation of construction works. Carcass done by general contractor. UBM responsible for fit out works, project management and controlling.

7 April 2015


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2


3


4


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7 April 2015

DIVERSIFICATION

Go-to-market approach defined in terms of markets and asset classes Geographies: Targeting European metropolitan regions with high growth dynamics

"Follow the Customer"

•

•

European metropolitan regions with growth potential Focus on hotel Successful examples: Amsterdam, Paris

Market attractiveness

• •

Focus on Growth Top metropolitan areas in Germany, such as Frankfurt, Berlin, Munich, Hamburg, Stuttgart, Cologne, and Düsseldorf plus Vienna, Warsaw, Krakow

Segments: Increasing focus on Residential and Hotel while maintaining a diversified portfolio

Sector Residential

Hotel

Strategy for relative share Details / Approach • Focus on mid- and high price segment • Close look on attractive niches markets (e.g., student or elderly housing) • •

Focus on European cities with top RevPar-development1 Coverage of 3* to 5* segments, long stay apartments, and boarding houses

Strengthen the Core

•

Office Other large cities in core markets such as Graz, Salzburg (AT), Wroclaw (PL)

• Other

No coverage

Deepen basis Market experience

•

• •

Focus on CBD locations and business parks with good public infrastructure (e.g., near airports) Reduced share due to high volatility in the segment 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

7 April 2015

DIVERSIFICATION

Positive market outlook indicators across targeted markets Austria

Germany

Poland

• Broad asset class diversification • City focus on Vienna, Salzburg, Graz

• Broad asset class diversification • City focus on Berlin, Munich,

• Asset class focus on hotel • City focus on Warsaw, Wroclaw, and

•

and Linz Trend: centralization of population in metropolitan areas

Population development in Vienna1 (in k people)

•

Hamburg and Frankfurt Trend: strong demand and increasing price levels for housing space in metropolitan areas

+4% 1,838 1,767

’14A ’15E ’16E ’17E ’18E ’19E ’20E Project example Quartier Belvedere Central, Vienna

4,000,000 3,500,000

2013

Krakow Trend: structural change fuels growth of office and residential real estate markets

Growth of office occupation in PL3 (in %)

Population growth in GER Top 6 markets2 (in k people) Thousand

•

2020e

3.7%

+137 +65

+127 +7

1,500,000 1,000,000 500,000 0

2.2% +28

+14

Berlin Ham- Munich Colo- Frank- Stuttgart burg gne furt/ Main

Project example Trikot Office, Munich

’13

1.7%

’14

2.2%

’15

’16

Project example Alma Tower, Krakow

Sources: 1: ÖROK, ²: Börse Frankfurt, Wohnungsmarktbericht Deutschland JLL, UNHABITAT, ³: DekaBank 13

7 April 2015

Book value, in €m

DIVERSIFICATION

Current portfolio1 UBM Development – asset values Segment Matrix UBM Development – balance sheet view2,3 €13.5m

€119.3m

1.3% €84.0m

11.0%

€1.6m

€21.9m

€94.7m

5.1%

€53.8m

5.0%

8.3% €53.6m

11.0% €22.0m

8.6%

9.2% €89.8m

€119.1m

0.2%

€99.1m

10.0%

€54.9m

7.8%

Regional split

€108.1m

Portfolio share in %

Land Bank2,3

€42.2m

4.95% €19.1m

€42.7m

3.9% €16.1m

3.9% €26.6m

Other 2.0%

Residential

2.0%

Office

1.8%

Other

1.5%

2.5%

Hotel

Split by segment € 864.4m 14

1 Portfolio consists of completed projects held for sale and current developments 2 All data as of December 31st 2014 3 Including 100% of value of fully consolidated assets and respective value shares of at equity held assets

€ 217.8 m 7 April 2015

DIVERSIFICATION

RESIDENTIAL

Attractive project pipeline in metropolitan cities (1/2) St. Peter, Graz

Keibelstraße, Berlin

Central Living, Frankfurt

KAHN 1, Graz

• • •

• • • • •

• •

• •

• •

Land area: 1,740 m² Number of units: 36 Sales volume: € 7,5 mn Start / Completion: 05/2014 / 07/2015

St. Peter Hauptstraße 2 8042 Graz

Keibelstraße 6 10178 Berlin

15

15

• • •

Land area: 3,643 m² GFS above ground: 7,423 m² Number of units: 78 Start / Completion: BA II: 02/2014 / 02/2016

• • •

Friedrich-Dessauer Straße 60438 Frankfurt a. M. 16

HOTEL

2015

Land area: 3,944 m² Sales volume: € 58 – 60 mn Start / Completion: 04/2014 / 09/2015

Holiday Inn, Berlin • Category: Holiday Inn Express • Rooms: 184 • Operator: IHG • Start / Completion: • 04/2015 / 11/2016

Klosterstaße 48 Berlin

Land area: 4,549 m² GFS above ground: 3,648 m² Number of units: 48 Start / Completion: 07/2014 / 07/2016

Kahngasse 12 8045 Graz 17

Gateway Gardens, Holiday Inn, Frankfurt Munich • Category: Holiday Inn • Category: 3-4* Express • Rooms: 288 • Rooms: 302 • Start / Completion: • Operator: IHG • 04/2015 / 12/2016 • Start / Completion: • 04/2014 / 11/2016

Birketweg 80639 Munich

Bessie-Coleman-Str. 16 60549 Frankfurt a. M.

2018

Hyatt Regency, Amsterdam • Category: 5* • Rooms: 211 • Operator: • Hyatt Regency • Start / Completion: • 2015 / 2016-2017

Sarphatistraat 102-104 1018 GV Amsterdam

DIVERSIFICATION

OFFICE

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

Valeska-Gert Straße 10243 Berlin

Elsenheimerstraße 1 80687 Munich

MIXED

2015

16

15

16

Poleczki Business Park, Warsaw

Am Ring 20, Munich

• • • • • • • •

• • • • •

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

Poleczki 35 02-822 Warsaw

Land area: 9,190 m² GFS above ground: 12,453 m² Start / Completion: 04/2015 / 04/2017

Leuchtenbergring 20 7 April 2015 81677 Munich 2018

17

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

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

Boarding-House: Quartier Belvedere Central, Main Railway Station, Vienna, Austria


1


2


3


4


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7 April 2015

SYNERGIES AND CULTURE CHANGE

UBM Development - value added through productivity synergies and enhanced growth GROWTH

1

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

•

COST / PRODUCTIVITY

EXAMPLES • Location consolidation • Previously outsourced activities by S+P are now carried out by in-house experts which leads to higher cost control

• Avoidance of operational redundancies and best practice

2

18

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

• •

sharing Process integration: bundling know-how, Shared Services, etc. Improve borrowing conditions due to increased size

•

Projects in markets where so far mainly S+P has been active; e.g. in Berlin Better penetration of the residential market in Austria

7 April 2015


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3


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7 April 2015

SOLID FINANCIAL BASE

Strong financial growth trajectory expected to continue… UBM Development 20142

UBM Realitätenentwicklung stand alone

Production output

Growth, in %

xx

483 -8

Production output (in EURm) and growth (yoy)

281.9

11

258.3

286.7 Merger

EBITDA 57

2011

121

2013 EBIT 54

13.7 Net profit (in EURm)

13.5

8.9

Net profit 28

2011

20

121

2013

1 Restated; acc IAS 8; 2 Preliminary 2014 pro-forma numbers

2014

2015

7 April 2015

SOLID FINANCIAL BASE

…. and is backed up by a solid financing structure UBM Realitätenentwicklung stand alone xx Equity ratio, in %

Equity in EURm

Mid-and mid-term targets UBM Development 2014 2014 preliminary Total assets: EUR 1.077mn

24.4

145

24.2

154

26.0

164

Equity: EUR 265mn Net debt1: EUR 571mn Targets (mid-term) Equity ratio: 30 – 40%

Equity/ Equity Ratio

Payout ratio: 30 – 50% LTV: 40 – 50% Net debt1:

571 -250

2011

21

2012

2013

20142

Mid-term

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

7 April 2015

UBM DEVELOPMENT ASSET LIGHT PORTFOLIO APPROACH

Portfolio reduction in 2015/16 will boost earnings and increase cash-flow INDICATIVE PLANNING FIGURES Planned Divestments UBM Development1, in percentage of total divestments

Divestment targets

Regional Split

250

72

4.2%

10.3%

15.2%

12.7%

5.9%

12.1%

2.5%

8.4%

Already realized

EUR 250m total net cash-in target

Other

10.8%

Residential 22

1 Excl. M6 highway 2 Includes projects under development

Hotel

10.1%

1.5%

6.4%

Office

Split by segment

Other 7 April 2015

DIVERSIFICATION

A pure-play trade developer with an asset-light focus - unique among publicly traded companies Differentiation of UBM from its peer group

Asset Manager

Europe

Immofinanz

SIMPLIFIED ILLUSTRATION

Asset Management and Development

Real Estate Developer

CA IMMO

IMMOBEL

National

GTC

Pure Play Asset Managers in Germany and Austria

Kaufman Broad

VIB Vermögen

++

HIAG

Asset intensity

nexity

Berkeley

ISARIA

DOM

--

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 23

Technical expertise Benchmark in architecture, planning and realization

Network Experienced management with strong network for developments, financing and transactions 7 April 2015

VALUE GENERATION

Ongoing project developments

PROJECT DEVELOPMENTS (including pipeline)

Standing asset base

UBM’s value comprises value of standing assets, ongoing developments and potential project pipeline (1/2)

STANDING ASSET BASE

24

TOTAL VALUE

7 April 2015

VALUE GENERATION

Standing asset base1

Ongoing project developments

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

Hotels

• •

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

•

Accounted for at costs, regular depreciation

•

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

GAV2: EUR 682mn LTV3: 58.6%

Office

Average rental yield: 7% Other

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

7 April 2015

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%

16.8%

7.6%

13.5%

6.5%

1.9%

Regional split

Other

4.2%

Residential

4.6%

Office

Hotel

1.5%

Other

€ ~1.5bn 26

7 April 2015

INVESTOR RELATIONS

IR Information for UBM Development Share Information Merger PIAG/UBM Share price1 Market capitalisation Official market

Number of shares outstanding Ticker symbol ISIN

27

Shareholder structure 19 Feb 2015 41,00 EUR 246 m EUR Vienna Stock Exchange Std. Auction Market No indices 6,010,000

UBS VI AT0000815402

Free Float 40.7%

Syndicate (Ortner/ Strauss) 48.3%

Management + Supervisory Board 11.0%

IR Calendar 2015

IR Contact

14.04.2015 14.04.2015 12.05.2015 20.05.2015 22.05.2015 26.05.2015 27.08.2015 11.11.2015

Do you have any questions?

Annual report 2014 Press conference Q1 2015 134th Annual General Meeting Trade Ex-dividend 2014 Payment dividend 2014 Half-year report 2015 Q3 2015

1 as of Mar 31st, 2015

For further information please contact the department Investor Relations.

Julia Kozielski T +43 (0)50 626-3827 [email protected] 7 April 2015

Contents

• Projects Overview • Financials & Other

29

7 April 2015

DIVERSIFICATION

Reference projects (1/3) Office Neue Mitte Lehen, Salzburg, Austria

Project B picture

• • • • • •

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

Project B picture

• 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

Project C picture

30

• • • • • •

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

7 April 2015

DIVERSIFICATION

Reference projects (2/3) Hotel KEMPINSKI, Palais Hansen, Vienna, Austria

Project A picture

• • • • • •

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

Project B picture

• • • • •

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

Intercontinental, Warsaw, Poland

Project C picture

31

• • • • •

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

7 April 2015

DIVERSIFICATION

Reference projects (3/3) Residential Sternbrauerei, Salzburg, Austria

Project A picture

• 100 units and 146 parking spaces • Sales volume: € 62.9 mn • Construction completed: June 2014 • Address: Rainbergstraße 1 & Steinbruchstraße 1, 5020 Salzburg

Inselstraße, Berlin, Germany

Project B picture

• • • •

88 units Sales volume: € 34.75 mn Construction completed: November 2013 Address: Inselstraße 9-10, 14129 Berlin

Villa Galicija, Krakow, Poland

Project C picture

32

• • • •

72 units Sales volume: € 8.2mn Construction completed: 2011 Address:Ul. Dominikanow 32, 31-409 Krakau

7 April 2015

Contents

• Projects Overview • Financials & Other

33

7 April 2015

DIVERSIFICATION

Current portfolio1 UBM Development – operational KPIs Segment Matrix UBM Development – full view2 Area3 in thd. sqm, hotel segment in number of rooms in operation

20.5

67.2

38.9

36.8

0.9

108.6

11.2

9.3

46.1

Area in thd. sqm/ hotel rooms

Land Bank2,3

719 rooms

782.4

703 rooms

119.2

37.1

517 rooms

492.9

48.0

144 rooms

1,398.7

Regional split

Other

Office Other Residential Split by segment 434.2 thd. sqm 1 Portfolio consists of completed projects held for sale and current developments

Hotel 2,083 rooms

2,793 thd. sqm

34 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

7 April 2015

Book value, in €m

DIVERSIFICATION

Current portfolio1 UBM Development AG – fully consolidated properties


Segment Matrix UBM Development2 €12.2m

€115.6m

€11.9m

6.8%

€41.2m

12.0%

Regional split

€47.6m

16.5%

1.74% €84.0m

Land Bank

€1.6m

€50.9m

€35.1m

€21.9m

1.7%

5.9%

0.2%

€78.9m

€35.9m

7.3% €53.6m

€20.7m

7.6%

5.0% €11.0m

11.3%

5.1% €42.6m

3.0%

€10.0m

6.1% €26.6m

Other 3.1%

Residential

1.6%

Office

1.4%

Other

3.8%

Hotel


1 Portfolio consists of completed projects held for sale and current developments 2 All data as of December 31st 2014 – only fully consolidated projects

€ 183.9m 7 April 2015

Book value, in €m

DIVERSIFICATION

Current portfolio1 UBM Development – at-equity held properties


Segment Matrix UBM Development2 €1.3m

€3.7m

Land Bank

€60.5m

1.0%

0.3%

€87.2m

15.9%

€13.7m

22.9% €38.9m

3.6%

Regional split

€15.8m

€17.9m

10.2%

€84.0m

€21.5m

22.0% €11.0m

4.2%

€0.1m

5.6% €9.2m

4.7%

0.0%

€16.1m

Other 2.9%

Residential

Office

2.4%

Other

4.2%

Hotel


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

€ 33.9m 7 April 2015

DIVERSIFICATION

UBM's hotel development models 1/2: Straight sale

UBM Development develops hotel assets

Cash streams

Purchase price for the hotel

Hotel operator

Investor

Monthly lease payments

• • • 37

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 7 April 2015

DIVERSIFICATION

UBM's hotel development models 2/2: Sell, lease & operate Revenues from hotel operation

Purchase price for the hotel

Hotel operator

Investor

Management fee

38

Cash streams

Monthly lease payments (20 years contract)

• •

UBM Development sells hotel to investor when development is finalized

•

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

Investor is not permitted to run hotel; UBM Development steps in to create rental income (lease payment)

7 April 2015

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

7 April 2015

BACK UP - FINANCIALS

Consolidated income statement (UBM stand alone until 2013 and 2014 pro-forma including PIAG) €m Sales revenues

31.12.2014 (pro-forma)

31.12.2013 (UBM stand alone)



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

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

(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

Material expenses and other services

Financial results

40

7 April 2015

BACK UP - FINANCIALS

Consolidated balance sheet (UBM stand alone until 2013 and 2014 pro-forma including PIAG) €m

31.12.2014 (pro-forma)

Total assets

31.12.2013 31.12.2012 (UBM stand alone) (UBM stand alone)


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

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 (€)

1.251

0.62

0.55

0.55

28.7%

29.0%

27.0%

33.3%

Equity ratio

Payout ratio

41

1 Subject to decision of Annual General Meeting

7 April 2015

COMPANY OVERVIEW

EBT and equity development of UBM EBT development (€m) 16.6

17.8

16.8 14.2

14.4

14.6 12.9

11.4 9.3

8.3

4.1

3.1

1991

1992

EBT

1993

9.9

7.2

6.8 3.3

11.2

1994

4.9

3.9 3.1

1995

1996

3.5

1997

4.4

3.4

1998

1999

2000

2001

2002

2003

2.6

2.7

3.0

3.3

3.3

3.0

3.3

3.3

2004

2005

2006

2007

2008

2009

2010

2011

3.3

3.7

20121) 2013

Profit and loss transfer agreement

Thereof dividend paid

Equity development (€m)

122.8 102.0

54.7

58.3

59.1

59.8

59.4

58.5

60.0

52.4

58.4

64.4

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

72.4

72.0

2001

2002

77.6

2003

86.6

90.1

2004

2005

2006

132.5

139.5 144.8

153.7

163.7

108.5

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

7 April 2015