ROADSHOW PRESENTATION - September 2023
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ROADSHOW PRESENTATION September 2023
Platform
The spirit to create dynamic performance
Integrated business model combining property holding company and asset management for 3rd parties
Fully integrated Logistics develop-
Real estate track 9 locations with
management 358 properties1 ment pipeline of
record of 25 years 334 employees1
platform c. 139,000 sqm1
Regional footprint Total portfolio1 Balance sheet investments1
Balance sheet
investments: Other2
EUR 4.1 Mixed-Use 6%
billion 8%
(29%)
Retail Logistics
8% 41%
EUR 14.2 EUR 4.1
billion billion
Managed
vehicles
(Institutional
Business):
Office
EUR 10.1
37%
billion
(71%)
1 As of 30 June 2023; 2 Incl. project developments
DIC Asset AG 2 Roadshow Presentation
Platform
The spirit to create diversified income
Real estate management platform of c. EUR 14.2 billion AuM1
c. EUR 4.1 billion AuM c. EUR 10.1 billion AuM
Balance sheet investments (174 assets)1 Managed vehicles (184 assets)1
Balance sheet investments Managed vehicles
(Commercial Portfolio) (Institutional Business)
Directly held portfolio of high quality assets in top locations Commercial real estate (mainly Core/Core+) held and managed exclusively for
DIC (original) portfolio with focus on office in A and B cities institutional clients from Germany and abroad
(ABBA strategy) Providing all real estate services (transaction, asset, property and development
VIB with high quality logistics portfolio along major trading routes management, financing) and DIC occasionally acts as co-investor
Generating rental income and income from disposals Generating fee income and investment income
1 As of 30 June 2023
DIC Asset AG 3 Roadshow Presentation
Platform
The spirit to create
commitment
The targets we have set reflect our ethics and
our sense of responsibility, including for the
environment.
Environment: We make a positive contribution to mitigating climate change
Social: We shape our business with and for the people
Governance: We are a reliable partner, and conduct our business activities
in a transparent and accountable manner
Digitisation: We use high-tech tools as yet another building block for ESG
DIC Asset AG 4 Roadshow Presentation
Commercial Portfolio
The spirit to create success
DIC Asset AG leads the market for office space and logistics properties in Germany.
Overview Commercial Portfolio1 Overview of top 10 tenants1
Rental Asset No. of
Tenant income (%) class assets
Market value EUR 4,096.3 million Volkswagen AG 3.8% Logistics 2
Rental space 1,880,000 sqm
Deutsche Börse AG 3.3% Office 1
WALT 5.0 years
EPRA vacancy rate 4.9% AUDI AG 3.2% Logistics 2
Gross rental yield 4.9% Geis Industrie-Service GmbH 3.1% Logistics 3
Avg. rent per sqm per month EUR 8.52
Mercedes Benz AG 2.9% Mixed-Use 1
Strong rental cash flow of proprietary portfolio as a solid basis for our DKB Service GmbH 2.7% Office 1
business model
Free and Hanseatic City of Hamburg 2.7% Office 4
Highly diverse mix of regions, use types and tenants
C. 26% of market value is located in Top 7 cities in Germany NH Hotels Deutschland GmbH 2.4% Mixed-Use 1
C. 800 tenants overall (excl. residential and parking space tenants), State Property and
2.2% Office 2
no dependency on single tenant Construction Administration
C. 90% of rental contract volume is CPI-linked Imperial Logistics International 1.7% Logistics 1
Top 10 tenants, total 28.0% n/m 18
1 All figures as of 30 June 2023, excl. developments and warehousing (except market value and rental space)
DIC Asset AG 5 Roadshow Presentation
Commercial Portfolio
The spirit to create the right portfolio mix
Focus on logistics and office – continuous optimisation
Commercial Portfolio by asset classes
(as of 30 June 2023)1
As part of the ongoing optimisation of the portfolio,
the two strategic asset classes of logistics and office
Market value Rental income p.a. properties now collectively account for 78% of the
EPRA market value of the Commercial Portfolio as of 30 June
No. of % of % of vacancy
2023 (30 June 2022: 73%)
Asset class assets EUR m total EUR m total rate WALT
Compared to 30 June 2023, the EPRA vacancy rate
Logistics 64 1,680.9 41% 77.9 42% 1.6% 4.8 increased and WALT declined primarily due to disposals
in the second half of 2022 (30 June 2022: 4.2% and 5.7
Office 59 1,516.3 37% 73.4 39% 8.4% 5.4 years)
The Green Building ratio slightly increased year-to-date:
Retail 12 310.8 8% 15.4 8% 3.0% 5.5
Mixed-Use 16 314.9 8% 17.5 10% 8.7% 4.1
Other 18 50.9 1% 2.3 1% 3.8% 1.7 32%
Green
Project developments 5 222.5 5% n.a. n.a. n.a. n.a.
Buildings2
Balance sheet portfolio 174 4,096.3 100% 186.5 100% 4.9% 5.0
1 All figures without project developments and repositioning properties, except for number of properties, market value and rental space; 2 Market value of Green Buildings in relation to market value of
Commercial Portfolio excl. project developments, Green Buildings defined under the DIC Green Bond Framework: https://www.dic-asset.de/download/publikationen/DIC-Green-Bond-Framework.pdf
DIC Asset AG 6 Roadshow Presentation
Institutional Business
The spirit to create investment solutions
Generating recurring fees through one-stop solutions for institutional investors
Management fee elements
Promote/performance fee (one time, success based)
Acquisition and setup fee Asset/property management/
(one time, not success based – recurring) development fee (recurring)
Exit fee (one time, not success based – recurring)
7 vehicles in investment phase 25 vehicles in holding phase
(AuM EUR 3.1 billion)1 (AuM EUR 7.0 billion)1
Sale
Possible reinvest-
ment of proceeds
into new invest-
ment vehicles
Holding
Execution of the respective, individual property strategy
Acquisition/Transfer of warehoused properties
for the realisation of value enhancement potential
Acquisition financed with committed equity and bank financing Repositioning of assets and ongoing reletting activities
up to 50% LTV on purchase price
Optimised properties are managed and a stable cash
Occasionally warehousing of selected assets as an accelerator flow is ensured
of funds
ESG and digitisation as innovation drivers
1 Based on AuM as of 30 June 2023
DIC Asset AG 7 Roadshow Presentation
Institutional Business
The spirit to create long-term partnerships
High granularity of investor base: no dependency from one single mandate
AuM by asset class1
in % Other 4% DIC currently manages 32 vehicles (17 pool funds totalling EUR 6.3 billion,
Mixed-use 5% 8 club deals totalling EUR 1.8 billion and 7 separate accounts (as well as
Retail 6% third-party mandates) totalling EUR 2.0 billion) for a total of 171
institutional investors
Logistics 11% AuM Around 58% of equity comes from investors who have invested in more
EUR 10.1 Office 74% than one DIC investment product
billion Diversifed investor base: no investor has a higher share than 11% of the
total committed equity
Core and core+ investements make up the vast majority of AuM as of 30
June 2023 (c. 93%). C. 66% of market value is located in Top 7 cities in
Investment partners2 Germany.
in % At present, around EUR 180 million in committed equity is still available for
further acquisitions or forward deals that have already been notarised
Family offices
13% Fundraising for as-yet-unplaced shares in the “VIB Retail Balance I” fund
Pension funds,
and the single investment in the “Offenbach Unite” property continues on
sovereign
wealth funds an ongoing basis. These shares are recognised in the consolidated balance
Insurance 34% sheet as “non-current assets held for sale” as at 30 June 2023
companies
26%
Savings banks,
banks
27%
1 Percentages based on AuM as of 30.06.2023; 2 Percentages based on committed equity as of 30.06.2023
DIC Asset AG 8 Roadshow Presentation
Strategy
Highlights H1 2023
Setting the right course for DIC‘s future
LIQUIDITY OPERATIONAL
MANAGEMENT RESULTS
• New syndicated loan of
EUR 505 million with EUR 485 million Lettings y-o-y • Strong letting activities with
257,900 sqm of take-up
seven-year term cash at hand1 +50% despite challenging market
• Notarised disposals environment
of EUR 132 million
Asset classes Logistics and
by end of June Like-for-like •
Office now representing
• First capital raising of rental growth of c. 78% of total market value
of the Commercial Portfolio
EUR 10 million for new
Club Deal with property
7.3%
“Offenbach Unite”
OPTIMISING FINANCIAL
FINANCIAL STRUCTURE RESULTS
• Repayment of bridge Bond LTV of 55.3% H1 2023 FFO • Due to lack of transaction
activity and higher interests,
financing in a volume of
c. EUR 200 million plus down y-o-y to full year guidance 2023
adjusted in early July
prolongation of remaining
EUR 200 million until the end
Bond ICR 2.6x EUR 22.4 million
• Additional write-downs on
of July 2024 disposals negatively impact
Average interest rate of Net result for the the profit for the period
2.9% period of • New action plan
EUR –16.6 million „Performance 2024“
implemented
1 Prior to the partial repayment of the VIB Bridge Loan in the amount of EUR 200.8 million
DIC Asset AG 9 Roadshow Presentation
Strategy
„Performance 2024“ action plan
Five key priorities to cope with the current market environment
12–18 months timeframe
Focus Measures Actions
Returning to
normalised
FFO path
from 2024
onwards
Reducing liabilities and Decreasing LTV Equity release from disposals to be used for
1
boosting liquidity Stabilising Bond ICR further pay down of debt
Ongoing high letting results with strong like-for-like rental growth
(incl. indexations) in 2023 et seqq., steady increase of
2 Portfolio management NAV / EPRA NTA Green building quota (now at c. 32%), selective refurbishments,
portfolio devaluation of c. 4% to 7% at year-end expected
Selective reorganisation, optimisation and increasing efficiency
3 Increasing cost efficiency Lower OPEX through redirection of workflows, OPEX to be reduced by
5% to 10%, mainly from 2024 onwards
Portfolio optimisation Increasing liquidity, Targeting EUR 300 to 500 million notarised disposals from
4 through transactions reducing portfolio risks Commercial Portfolio in 2023
Reliable business partner New equity inflow and Further placement of fund shares and setting up of new
5
for 3rd parties additional fee income investment strategies for our 3rd party clients
DIC Asset AG 10 Roadshow PresentationOperations H1 2023: platform overview Strong letting performance and like-for-like rental growth of 7.3% Letting performance Assets under Management in sqm in EUR billion Like-for-like rental income Lease expiry volume, total platform annualised in EUR million in % of annualised rental income DIC Asset AG 11 Roadshow Presentation
Financials
H1 2023: income overview
Higher contribution from directly-held portfolio,
lack of transaction-related income
Net rental income Real estate management fees
incl. VIB since Q2 2022
AM/PM/Dev. Fees Transaction and performance fees
85.0
39.5
65.3
21.8
22.1
17.4 21.8
H1 2022 H1 2023 H1 2022 H1 2023
Income from associated companies Recurring income
Rents and management fees
104.8 106.8
16.9
79% 100%
Rec. Rec.
2.8
H1 2022 H1 2023 H1 2022 H1 2023
Rents Mgmt. fees (rec.) Mgmt. fees (non-rec.)
All figures in EUR million
DIC Asset AG 12 Roadshow PresentationFinancials
H1 2023: Funds from Operations (FFO)1
2
1
+4.4
+19.7 1• Net rental income growth from
VIB consolidation and like-for-like
increases of rents
2• Increase of recurring
4 management fee income but lack
53.0 of transaction-related fee income
+10.6
–22.1 4 3• Lower transaction-related income
–4.0
2
+0.1 from associates and joint venture
3 disposal effect in prior-year lead
–10.1 –10.1 to lower share of the profit of
3 5 associates
–10.5 4• Transaction cost effect in prior-
22.4
5 year and first cost efficiency
–6.9 measures improve OPEX
–1.7
5• Increase of interest expenses by
EUR 10.1 million due to VIB
consolidation and refinancing
activities and EUR 10.5 million
due to unhedged interest costs
for VIB bridge
1 Excluding non-controlling interest (NCI), before taxes
DIC Asset AG 13 Roadshow PresentationFinancials
H1 2023: financial profile
Focus on deleverage while monitoring covenants
Maturities of loans and borrowings, nominal values in EUR million Average interest rate • VIB bridge loan was renegotiated, an additional
as of 30 June 2023 amount of EUR 201 million was repaid in July
2023
• Remaining financial maturities in 2023 (mainly
1.600 4.1% 3.7% 2.9% 2.3% 2.6% 2.8% EUR 150 million 18/23 bond) covered by
remaining cash on hand after recent bridge loan
repayment (pro-forma c. EUR 284 million)
1.400
Paid back
• Remaining bridge loan in 2024 will be paid back
51 from equity release of disposals and
in July 2023
1.200 free cash flow
• Bank debt 2024 already in refinancing process
In refinancing
1.000 process • Bond covenants at 30 June 2023 with sufficient
headroom:
− Bond LTV 55.3% (covenant level 60.0%)1
800
− Secured LTV 25.0% (covenant level 45.0%)1
− Bond ICR 2.6x (covenant level 1.8x)2
600 1.239
• LTV covenants will be challenged by expected
144
portfolio devaluation, but stabilised by disposals
200
400 • ICR covenant challenged by bridge costs and
low fee income in 2023 but should see a
201 9 248 400 turning point in 2024
200 68 43
9 • Average interest rate of 2.9% reflects high cost
150 133 157 156 of debt of short-term maturities
16 81
0
2023 2024 2025 2026 2027 2028 and later
Bank debt Bonds Promissory Notes Other VIB Bridge 1 Incurrence-based; 2 Maintenance-based
DIC Asset AG 14 Roadshow PresentationFinancials
Outlook 2023
Updated guidance confirmed
Gross rental income EUR 185–195 million
Real estate management fees EUR 50–55 million
FFO I (after minorities and before taxes) EUR 50–55 million
Acquisitions EUR c. 100 million, thereof:
Commercial Portfolio: no acquisitions
Institutional Business: c. EUR 100 million
Disposals EUR 300–600 million, thereof:
Commercial Portfolio: EUR 300–500 million
Institutional Business: EUR 0–100 million
DIC Asset AG 15 Roadshow PresentationOther
Contact
Financial calendar
2023
12.09. SRC Forum Financials + RE 2023
20.09 Baader Investment Conference 2023
26.09 Degroof Petercam's Real Estate Conference
08.11. Publication Quarterly Statement Q3 2023
28.11 German Equity Forum 2023
Peer Schlinkmann Maximilian Breuer, CFA
Head of Investor Relations & Senior Investor Relations Manager
Corporate Communications
Tel. +49 69 94 54 858-1492 Tel. +49 69 94 54 858-1465
Fax +49 69 94 54 858-9399 Fax +49 69 94 54 858-9399
ir@dic-asset.de ir@dic-asset.de
More information Follow us
DIC Asset AG 16 Roadshow PresentationAppendix
More facts and figures.
DIC Asset AG 17 Roadshow PresentationPlatform
Benefits of our platform-driven business model
Leveraging the platform for stronger cash flow with lower risk profile
Transact
Superior market penetration
• Close relationships to all relevant participants (real estate agents,
financing banks)
• EUR 3.3 billion transaction volume in 2022 (incl. EUR 2.3 billion for
VIB)
Operate
Full regional coverage in Germany through
• 9 locations with 212 out of 334 people on the ground1
• Cost synergies and economies of scale (one headquarter,
360°
one investment team, etc.)
Develop
ESG strategy for the whole portfolio Value Creation
Refurbishment capabilities for the whole platform lead to:
• Recurring profits from disposal (balance sheet portfolio)
• Promote and performance fees (managed vehicles)
Match
We connect assets, investors and tenants
Constantly improving portfolio KPIs (WALT vacancy rate, price per sqm)
Institutional Business deal generation through Warehousing capabilities:
• Seed portfolios for institutional investors
• Generation of off-market transactions
1 As of 30 June 2023
DIC Asset AG 18 Roadshow PresentationPlatform
Fully integrated service model
In-house competence for provision of full suite of value-adding services (incl. ESG)
Employees1
Corporate functions
80
Acquisition Value enhancement & preservation Exit
42
Portfolio/fund Asset Property Investment
Investment Financing Development
management management management management
212
Deal sourcing Review of financing Portfolio management Property strategies Condition control Development and Contract negotiation
and structuring structures Structuring of Business plans of the property refurbishment Closure
Due diligence Bank selection, investment vehicles Inspections of know-how
ESG due diligence tendering,
Representation of
Investor reporting the owner’s interests technical installations (Green) CAPEX
Off-market deals and benchmarking
bidding procedures Contract negotiation Performance analysis Increase in rental Repairs
Contract negotiation and closure Risk and compliance income Object accounting
Closure Fulfilment of the pay- Optimisation of and service charge
Sustainable Finance settlement
out condition running costs and
Disclosure Regulation
Administration energy efficiency
(SFDR)
and reporting,
Refurbishments
ESG link
Control of property
management
9 branches in Germany (incl. VIB Vermögen AG) responsible for 358 properties and gross lettable area of 4.8 million sqm1
Onsite teams operate nationwide to ensure portfolio value is maintained and increased through an active asset management approach
USP Direct access to tenants, target-oriented letting management, planning and implementation of CAPEX/TI measures
Regulatory reporting & risk management services (KVG) outsourced
1 As of 30 June 2023
DIC Asset AG 19 Roadshow PresentationCommercial Portfolio
Top 20 assets in Commercial Portfolio1
As at 30 June 2023, by market value2
Location Address Type Rental space EPRA Annualised Market value WALT
of use thsd. sqm vacancy rental income EUR million Years2
rate (%)2 EUR million2
1 Kösching Zeppelinstr. 33 Logistics 115.2 0.0 9.0 253.6 7.2
2 Berlin Taubenstr. 7-9 Office 10.1 0.0 5.0 115.0 3.5
3 Düsseldorf Werdener Str. 4 Mixed-Use 29.7 11.3 6.0 112.4 3.9
4 Kösching Einsteinstr. 6 Logistics 54.7 0.0 3.8 91.0 2.3
5 Nürnberg Beuthener Str. 43 ff Logistics 98.8 5.5 5.0 80.5 3.3
6 Regensburg Osterhofener Str. 8-19 Logistics 38.6 13.7 4.1 74.9 2.5
7 Frankfurt Insterburger Str. 7a Office 14.3 6.6 6.3 74.2 1.9
8 Munich Georg-Brauchle-Ring 56, 58 Office 9.2 1.3 2.7 74.0 1.8
9 Halle Neustädter Passage 17 a-d Retail 30.7 1.0 4.4 73.2 6.3
10 Eschborn Frankfurter Str. 1 Office 9.3 0.0 3.0 73.1 5.1
11 Cologne Mercedes-Allee 1 Mixed-Use 23.4 0.0 3 71.3 3
12 Hamburg Marckmannstr. 129 a-e Office 23.4 0.0 2.8 65.7 8.5
13 Neufahrn Lilienthalstr. 6 Logistics 35.0 0.0 3.1 63.6 4.4
14 Erlangen Kraftwerkstr. 25 Logistics 32.0 0.0 2.3 63.4 2.5
15 Erlangen Kraftwerkstr. 21-23 Logistics 30.1 0.0 2.1 60.2 5.3
16 Frankfurt Kaiserstr. 62-64 Mixed-Use 9.3 4.9 2.4 57.9 9.7
17 Leverkusen Horst-Henning-Platz 1 Office 13.4 0.0 2.4 57.2 11.7
18 Duisburg Steinsche Gasse 26 Office 12.6 0.0 2.4 56.9 13.5
19 Frankfurt Königsberger Str. 29 Office 12.7 16.3 2.2 52.0 7.6
20 Wiesbaden Gustav-Stresemann-Ring 12-16 Office 26.1 34.8 2.9 49.9 4.1
Top 20 properties 628.6 5.2 77.2 1,620.0 4.9
Other properties 1,251.4 4.8 109.3 2,476.3 5.0
Total properties (excl. Warehousing) 1,880.0 4.9 186.5 4,096.3 5.0
Properties in Warehousing 0.0 n.a. 0.0 0.0 n.a.
Total properties 1,880.0 4.9 186.5 4,096.3 5.0
Green Buildings
1 Top 20 list without non-strategic properties and properties earmarked for current or future repositioning activities; 2 all figures without project developments and repositioning properties, except for
number of properties, market value and rental space; 3 Not disclosed due to reasons of competition
DIC Asset AG 20 Roadshow PresentationCommercial Portfolio
Strong repositioning capabilities –
case study Darmstadt
Phase 1: repositioning phase on balance sheet
11/17–04/20
Complete renovation, energy modernisation and structural
alterations for handicap accessability; energy savings of
around 40%; long-term rental contract with State of Hesse
(Regierungspräsidium Darmstadt)
Market value old (12/17): EUR 60.5 million
CAPEX/TI: EUR 31.9 million
Market value new (06/20): EUR 113.0 million
360 degrees
Phase 2: transfer to new fund managed by DIC value creation
12/20–01/21 on DIC’s
platform
Transfer to biggest open-ended institutional fund in
company’s history (part of the seed portfolio of a total
EUR 780 million AuM, together with three other Core office
properties)
Disposal at market value plus additional management fees
for setup, paid in Q4 2020 ahead of the transfer
Transfer of ownership end of January 2021, net disposal
profit of c. EUR 12.0 million in P&L Q1 2021
Ongoing fees for asset and property management
DIC Asset AG 21 Roadshow PresentationCommercial Portfolio
Constantly improving portfolio KPIs
Growing balance sheet portfolio … … leading to robust annualised rental income & higher sqm prices
Fair value of investment properties (EUR million)1 in EUR million (excl. Warehousing)
11.39 8.26
>+100%
4,452 203.8
1,900 2,000 2,222 97.6 101.8 95.8 105.5
1,697
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Average rent per square meters p.m. (EUR)
Strong letting activities leading to reduction in vacancy rate … … and stable level of WALT
EPRA vacancy rate %1 (Incl. attractive new acquisitions/VIB), in years1
–2.9 pp
7.2%
6.5%
5.4% 5.3% 5.8 6.0 6.5 5.9
4.3% 5.5
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
1 As of 31 December 2022
DIC Asset AG 22 Roadshow PresentationInstitutional Business
Income from Institutional Business
Strong base of recurring fee income
Types of fees Recognition of fee income Classification
Warehousing income
Setup1
Sourcing/ Set up fees for new investment vehicles
Transaction
acquisition Transaction fee income recognised as percentage
Acquisition
Real estate investment lifecycle
of transaction volume
Investment/ Asset/property management Recurring fee income recognised as percentage of AuM Asset/property
property management/
management Repositioning of office and retail projects generally recognised development
Development
as percentage of construction cost
Transaction fee income recognised as percentage
Sales fees Transaction
of transaction volume
Exit/
Promote Income recognised upon successful exit of sale of the properties
Realisation
Performance
Fee payable when return hurdles of investment vehicle
Performance fees
are met or exceeded
Equity return from co-investments Recognition of equity return Classification
Regular equity return from own investment in DIC investment
Equity return Equity return
vehicles (fixed return levels)
Dividend
Gain in value of equity stake in investment vehicle following
Return upside Equity return
positive performance
Recurring (not success based) One time (success based)
1 Setup fee for new investment vehicles where DIC secures 1–2 properties as start assets for the investment vehicle
DIC Asset AG 23 Roadshow PresentationInstitutional Business Deal structures tailored to investor needs Pool funds Club deals Separate accounts Pool funds specialised in regions or asset classes Investments for institutional investment partners We initiate joint investment strategies for with a proven track record in real estate in Germany's top 10 markets for selected investment partners within the Funds legally structured as special funds under commercial real estate, either in single-asset or framework of individual mandates the German or Luxembourg regime portfolio transactions The investment strategies may not interfere with Joint investments with investment partners, DIC secures property(ies) in order to mitigate the the existing pool funds and club deals co-investment by DIC transaction uncertainty; the investment partners Strong individual property size then join Typically a portfolio of 7–8 properties acquired over time Individual property EUR 20–60 million Individual property sizes Individual property sizes Typically a portfolio of 7–8 properties Typically 2–3 properties with Typically individual property; acquired over time 2–3 institutional investors no portfolio investments EUR 6.3 billion1 EUR 1.8 billion1 EUR 2.0 billion1 1 AuM 30 June 2023; separate accounts incl. third-party mandates DIC Asset AG 24 Roadshow Presentation
Institutional Business
Institutional Business
portfolio spotlight
Top performing properties in Germany’s most significant markets
Frankfurt
WINX
Frankfurt Dusseldorf Dusseldorf Type: Development
Goldenes Haus Business Campus CABO
Type: Club deal am Park Type: Manage-to-
Type: Club deal core (value)
Hamburg
Frankfurt
Frankfurt Cologne Hamburg Berlin Global Tower
Japan Center Triforum Elbspeicher Type: Individual mandate (under
Type: Individual Type: Club deal Type: Value-add refurbishment)
Dusseldorf
mandate
Cologne
Frankfurt
Frankfurt Frankfurt Munich
IBC Campus Eurotheum Junges Quartier
Mannheim
Type: Club deal Type: Individual Obersendling
Stuttgart
Munich
mandate Type: Infrastructure VIB | Neuburg Sapporobogen
Type: Club deal
Munich
Frankfurt
Garden Tower
Type: Individual
mandate DIC Offices
Berlin
Pressehaus Alexanderplatz
Type: Individual mandate
DIC Asset AG 25 Roadshow PresentationFinancials
Adjusted NAV
Slight year-to-date decrease to EUR 21.19 per share
Reconciliation of Net Asset Value (NAV) to Adjusted NAV Net Asset Value (NAV) per share decreased
all values in EUR per share to EUR 17.66 (31 December 2022:
EUR 18.29), mainly due to the negative
net result in H1 2023 and the dividend
payment for FY 2022 (incl. slight dilution
+6.26 -2.73 from scrip dividend)
Adjusted NAV per share decreased similarly
21.19
to EUR 21.19 (31 December 2022:
EUR 21.84)
+5.36 17.66 Per share figures calculated with 83,566
thousand shares outstanding at the end of
June 2023
13.26 -0.18 -0.78
12.30
Equity* Net result* Other changes Equity* Fair value NAV IBU Less goodwill + Adjusted
31.12.2022 for the in equity 30.06.2023 adjustment of 30.06.2023 fair value other intangible NAV
period IP and other and other assets 30.06.2023
H1 2023 adjustments and liabilities
* Excl. non-controlling interests
DIC Asset AG 26 Roadshow PresentationFinancials
P&L – Commercial Portfolio segment
Strong rental growth after VIB integration
Commercial Portfolio Segment reporting
in EUR million H1 2023 H1 2022
• Comparability with the prior-year quarter is only possible to a limited extent, as Commercial Instit. Total Commercial Instit. Total
Portfolio Business Portfolio Business
VIB was not yet included in the first quarter of 2022.
Gross rental income (GRI) 96.6 96.6 75.2 75.2
• Due to good letting performance in the first half of 2023 with a like-for-like Net rental income (NRI) 85.0 85.0 65.3 65.3
growth of the directly received rental income of 4.8 %, but also due to the
Profits on property disposals 8.2 8.2 12.4 12.4
first-time recognition of VIB in the first half of 2022, the net rental income
rose to EUR 85.0 million (previous year: EUR 65.3 million). Real estate mgmt. fees 21.8 21.8 39.5 39.5
Share of the profit or loss of
• Operating expenses increased to EUR 11.4 million in the first half of 2023 associates
1.4 1.4 2.8 12.1 4.8 16.9
(previous year: EUR 7.8 million, adjusted for EUR 10.6 million in one-off Depreciation -58.2 -2.0 -60.2 -27.4 -4.3 -31.7
effects from the VIB transaction in 2022), primarily because VIB was Net other income 0.3 0.3 1.1 1.1
integrated for the entire six months of the current financial year, whereas its Net interest result -45.1 0.0 -45.1 -23.0 -1.5 -24.5
initial consolidation on 1 April 2022 meant it was only integrated for three Operational expenditure
-11.4 -22.0 -33.4 -18.4 -25.7 -44.1
months in the previous year. (OPEX)
- of which admin costs -3.7 -7.6 -11.3 -13.4 -9.3 -22.7
• The net interest result of EUR -45.1 million (previous year: EUR -23.0 million) - of which personnel costs -7.7 -14.4 -22.1 -5.0 -16.4 -21.4
fell in particular due to the interest costs for the bridge financing concluded in
Other adjustments 2.4 0.2 2.6 8.7 0.0 8.7
the previous year and due to one-off financing costs of EUR 1.1 million.
Non-controlling interests -10.6 -1.0 -11.6 -9.9 0.0 -9.9
• The segment's FFO contribution fell to EUR 22.0 million after deduction of Funds from operations
(FFO) after non-controlling 22.0 0.4 22.4 35.9 17.1 53.0
minorities (previous year: EUR 35.9 million). This is mainly due to the interests
significantly higher interest expenses compared to the previous year. Funds from operations II
(FFO II) after non- 29.5 0.4 29.9 48.3 17.1 65.4
• The segment’s FFO II contribution that includes the value added by disposals controlling interests
was at EUR 29.5 million (previous year: EUR 48.3 million).
DIC Asset AG 27 Roadshow PresentationFinancials
P&L – Institutional Business segment
Increase of recurring management fees
Institutional Business Segment reporting
in EUR million H1 2023 H1 2022
• Real estate management fees from asset management, property management Commercial Instit. Total Commercial Instit. Total
Portfolio Business Portfolio Business
and development fees rose year-on-year to EUR 21.8 million (previous year:
Gross rental income (GRI) 96.6 96.6 75.2 75.2
EUR 17.4 million). In the prior-year period, additional transaction and
Net rental income (NRI) 85.0 85.0 65.3 65.3
performance fees of EUR 22.1 million were received. Overall, real estate
management fees amounted to EUR 21.8 million compared with EUR 39.5 Profits on property disposals 8.2 8.2 12.4 12.4
million in H1 22.
Real estate mgmt. fees 21.8 21.8 39.5 39.5
• At EUR 1.4 million, the share of the profit or loss of associates is down y-o-y Share of the profit or loss of
1.4 1.4 2.8 12.1 4.8 16.9
due to the lower transaction-related income (previous year: EUR 4.8 million). associates
Depreciation -58.2 -2.0 -60.2 -27.4 -4.3 -31.7
• Despite the y-o-y increase in assets under management, operating expenses at Net other income 0.3 0.3 1.1 1.1
EUR 22.0 million were down around 14% on the previous year. This was Net interest result -45.1 0.0 -45.1 -23.0 -1.5 -24.5
mainly the result of lower transaction activity compared to the prior year, with Operational expenditure
-11.4 -22.0 -33.4 -18.4 -25.7 -44.1
the biggest proportion of cost savings coming from personnel costs, which fell (OPEX)
by EUR 2.0 million to EUR 14.4 million (previous year: EUR 14.4 million) - of which admin costs -3.7 -7.6 -11.3 -13.4 -9.3 -22.7
- of which personnel costs -7.7 -14.4 -22.1 -5.0 -16.4 -21.4
• The segment’s FFO contribution excluding non-controlling interests is Other adjustments 2.4 0.2 2.6 8.7 0.0 8.7
EUR 0.4 million (previous year: EUR 17.1 million).
Non-controlling interests -10.6 -1.0 -11.6 -9.9 0.0 -9.9
Funds from operations
(FFO) after non-controlling 22.0 0.4 22.4 35.9 17.1 53.0
interests
Funds from operations II
(FFO II) after non- 29.5 0.4 29.9 48.3 17.1 65.4
controlling interests
DIC Asset AG 28 Roadshow PresentationFinancials
Balance sheet:
Characterised by high liquidity
1• Total assets have slightly increased by EUR 41.7 million to EUR 5,222.0 Balance sheet overview
million since the beginning of the year.
2• Non-current assets decreased by EUR 149.3 million to EUR 4,098.3 million
1
(previous year: EUR 4,247.6 million) mainly due to the reclassification of
2
three logistics properties (EUR 115.2 million) to current "non-current assets
3
held for sale".
3• The increase in current assets is mainly due to the increase in cash and cash 4
equivalents by EUR 296.7 million to EUR 485.1 million (previous year:
EUR 188.4 million). The increase primarily results from the net cash inflows
from financing at VIB in the amount of EUR 181.1 million.
4• Compared to 31 December 2022, equity as at 30 June 2023 fell by 5
EUR 77.7 million to EUR 1,586.4 million (31 December 2022: EUR 1,664.1
million), mainly as the result of the payment of the cash dividend in the 4
amount of approx. EUR 59.6 million and negative consolidated net income
of EUR -16.6 million euros in the first half of 2023. The balance sheet
equity ratio stood at 30.4 % as at the reporting date (31 December 2022:
32.1%).
5• Non-current financial liabilities fell only slightly by EUR 2.9 million, while the
increase in current financial liabilities was mainly due to the partial
repayment of the bridge financing in the amount of EUR 200.8 million (cash
outflow occurred after the balance sheet date)
DIC Asset AG 29 Roadshow PresentationFinancials
LTV reconciliation
In EUR million
Assets/ Balance sheet Balance Adjustment Other Reported Adjustment Adjusted DIC reports at historical cost in the
liabilities items sheet fair value Adjust- LTV fair value LTV balance sheet. To reflect current market
30.06.231 properties ments IBU values, a fair value adjustment is made
The company also temporarily holds
Total assets (A) 4,494.1 363.9 -89.2 4,768.8 285.9 5,054.7
assets on balance sheet to place them
Real estate assets 3,941.9 363.9 -209.52 4,096.3 4,096.3
into vehicles (other adjustments)
Investment properties 3,529.8 363.9 3,893.7 3,893.7
The table shows a reconciliation from
Non-current assets held for sale 412.1 -209.52 202.6 202.6
balance sheet items to Reported LTV
Equity investments 188.6 120.33 308.9 308.9
and Adjusted LTV
Investments in associates 85.9 120.33 206.2 206.2
Adjusted LTV includes the full value of
Other investments 102.7 102.7 102.7
the Institutional Business (fair value
Institutional Business 236.4 236.4 285.9 522.3
adjustment IBU)
Goodwill 190.2 190.2 190.2
Intangible assets and other assets4 46.2 46.2 285.9 332.1
Loans to and receivables from related parties 127.2 127.2 127.2
Financial liabilities 3,319.8 -87.95 3,231.9 3,231.9
Secured debt / IFRS 5 debt / 2,776.3 -87.95 2,688.4 2,688.4
Promissory notes
Corporate bonds 543.5 543.5 543.5
Cash 485.1 485.1 485.1
Net debt (B) 2,834.7 -87.93 2,746.8 2,746.8
LTV (=B/A) 57.6% 54.3%
1 Investment properties at historical cost in balance sheet; 2 EUR 89.2 million assets from several vehicles not included (to be placed) and EUR 120.3 million reclassification of IFRS 5 assets as investments
in associates; 3 Reclassification of IFRS 5 assets as investments in associates; 4 Service agreements included in balance sheet items „Intangible assets“ and „Other receivables“; 5 EUR 87.9 million debt from
several vehicles not included (to be placed)
DIC Asset AG 30 Roadshow PresentationOther
Shareholder structure
Long-term investment by anchor shareholders, free float of 45.6%1
Basic data on the DIC Asset AG share
Deutsche Shares
83,565,510 registered shares
Immobilien outstanding
Chancen
Group WKN/ISIN A1X3XX/DE000A1X3XX4
Other free 34.3%
float
42.5% Ticker symbol DIC
Free float Free float 45.6%
of 45.6% Exchanges XETRA, all German exchanges
Segment
Prime Standard
Deutsche Börse
Designated ODDO BHF Corporates & Markets AG,
sponsors Baader Bank AG
Yannick
Patrick Heller
Fidelity 10.1% Paying agent Joh. Berenberg, Gossler & Co. KG
Securities
RAG
Fund
Foundation
3.1%
10.0%
Free Float
1 Based on most recent WpHG notifications and company information
DIC Asset AG 31 Roadshow PresentationOther
Management
Board
The spirit to create leadership
From left to right:
Christian Fritzsche Sonja Wärntges
Chief Operating Chief Executive
Officer Officer/ Chief
(COO)
Financial Officer
(CEO/ CFO)
Johannes v. Mutius Torsten Doyen
Chief Investment Chief
Officer Institutional
(CIO) Business
Officer
(CIBO)
DIC Asset AG 32 Roadshow PresentationOther
Supervisory Board
Highly reputable supervisory board members with long-term real estate expertise
Prof. Dr. Gerhard Schmidt Michael Zahn Dr. Angela Geerling
Chairman of the Supervisory Board, Deputy Chairman of the Supervisory Board, Portfolio Manager, Schroders Real Estate
Managing Partner Germany of Former Chief Executive Officer of Asset Management GmbH
Weil, Gotshal & Manges LLP Deutsche Wohnen SE
Eberhard Vetter René Zahnd Prof. Dr. Ulrich Reuter
Head of Investments Chief Executive Officer Chairman of the Audit Committee,
of RAG-Stiftung of Swiss Prime Site AG President of the savings banks association in
Bavaria
Independent, as defined by Deutscher Corporate Governance Kodex (DCGK) as of 28 April 2022
DIC Asset AG 33 Roadshow PresentationOther Notes DIC Asset AG 34 Roadshow Presentation
Other Notes DIC Asset AG 35 Roadshow Presentation
Other
Disclaimer
This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to any securities. In case of an offer of securities the information legally required to be
provided to investors will be contained only in a securities prospectus as approved by the competent authority. The information contained herein is not for distribution, directly or
indirectly, in or into the United States of America (including its territories and possessions of any State of the United States of America or the District of Columbia) and must not be
distributed to U.S. persons (as defined in Regulation S of the U.S. Securities Act of 1933, as amended ("Securities Act")) or publications with a general circulation in the United
States of America. This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to any securities in the United States of America. None of the securities
of DIC Asset AG have been registered under the Securities Act and may not be offered or sold in the United States of America absent registration or an exemption from
registration under the Securities Act.
This publication is only addressed to and directed at persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(e) of the
Prospectus Directive (Directive 2003/71/EC as amended) ("Qualified Investors"). In addition, in the United Kingdom, this publication is being distributed only to, and is directed only at,
Qualified Investors who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005, as amended (the "Order"), (ii) are high net worth entities falling within Articles 49(2)(a) to (d) of the Order, or (iii) are other persons to whom it may
otherwise lawfully be communicated. This presentation should not be regarded by the recipient as a substitute for the exercise of its own judgment. Nothing contained herein is, or shall
be relied upon as, a promise or representation as to the past or future. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the
fairness, accuracy, completeness or correctness of the information, or opinions contained in this presentation. Neither DIC Asset AG nor any of its advisors or representatives shall have
any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection
with this presentation.
This presentation speaks as at the date hereof (unless an earlier date is otherwise indicated in the presentation) and in giving this presentation, no obligation is undertaken and nor
is any representation or undertaking given by any person to provide the recipient with additional information or to update, revise or reaffirm the information contained in this
presentation or to correct any inaccuracies therein which may become apparent. This presentation may contain certain forward-looking statements, forecasts, estimates, strategic
targets, projections and opinions ("Forward Statements"). No representation is made or will be made that any Forward Statements will be achieved or will prove to be correct.
Actual future results and operations could vary materially from the Forward Statements. Similarly, no representation is given that the assumptions disclosed in this presentation
upon which Forward Statements may be based are reasonable.
UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION, DATA, VIEWS AND FORWARD-LOOKING STATEMENTS CONTAINED IN THIS COMPANY PRESENTATION
ARE BASED ON INFORMATION, DATA AND FORECASTS AVAILABLE TO THE COMPANY AT THE TIME OF THE PUBLICATION OF THIS COMPANY PRESENTATION. THE
COMPANY IS NOT OBLIGED TO UPDATE THIS COMPANY PRESENTATION UNDER RELEVANT LAWS AND THEREFORE WILL NOT UPDATE THIS COMPANY
PRESENTATION WHATSOEVER. ALL INFORMATION AND DATA CONTAINED IN THIS COMPANY PRESENTATION ARE BASED ON INFORMATION AND DATA, WHICH WAS
PREVIOUSLY PUBLISHED BY THE COMPANY IN CONNECTION WITH ITS CONTINUOUS REPORTING OBLIGATIONS UNDER RELEVANT FINANCIAL OR SECURITIES LAWS.
Roadshow presentation as of September 2023
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