FY 2014 Results Presentation Milan, March 10, 2015 2 PRELIOS GROUP - - PowerPoint PPT Presentation

PRELIOS FY 2014 Results Presentation

Milan, March 10, 2015

2

Integrated management platform

PRELIOS GROUP

• Through independent operating companies, Prelios Group is the first platform of real estate finance and specialized services for

the management and value enhancement of third parties’ portfolios in Italy.

• Our Group comprises an extremely well-qualified structure which includes about 500 employees in Italy and abroad, with

significant professional skills and a track record of excellence in the international arena.

3

FY 2014 Highlights

PRELIOS

• As already anticipated upon the approval of the nine months 2014 results, the performance of FY2014 confirms the

projections included in the Plan with consolidated improvement against the same period of 2013.

• Revenues generated by the service platform confirm the projections included in the Plan, while EBIT improved also

thanks to the persisting focus on cost control.

• Return On Sales (ROS, EBIT/Sales) generated by the management platform1) is improving at about 17% .
• From a property devaluations perspective the main differences against December 2013 refer to property devaluations

following the updating of the independent appraisers’ estimates (in particular for the units indirectly owned in the Tecla Fund) and the completion of preliminary deeds of transfer (in particular for the units owned in the Olinda Fund).

• The Net Financial Position is in line with expectations at euro 187.6 million.
• Better than expected cash in coming form the DGAG sale.
• Real estate asset sales in 2014 amounted to 877.7 million euro, for a pro rata amount for Prelios equal to about 164 million
• euro. The exit value of sales in Dec. 2014 was approx. 6% higher than book value, excluding margins on sale of the Polish

Retail area (Bereaka, JV Lucchini) , the sales on the remaining part of the portfolio were substantially in line with Book Value. As a consequence of those transactions the pro-quota consolidated debt was reduced to 0.5 billion euro from 0.75 billion euro at the end of 2013.”

1) Value not including G&A (Holding) costs.

4

FY 2014 Group Results

PRELIOS GROUP

(€/mln)

1) 2)

1) Actual Dec 2014 includes -39.1 mln of real estate writedowns and revaluations. -13.6 mln of restructuring costs and one off items and -6.3 mln of NPLs portfolio impairment. 2) Includes the one-off positive impact approx. 40 € mln related to Prelios S.p.A. debt restructuring (included into financial expenses). 3) Includes the impact of conversion of Convertible bond

A B ACTUAL DEC 2014 DISCONTINUED ACTUAL DEC 2013 DISCONTINUED DELTA (A - B) / B Revenues Mgmt Platform 70,1 68,6 1,6 2% Revenues investment 2,0 4,5

• 2,5
• 55%

TOT Revenues 72,1 73,1

• 0,9
• 1%

EBIT Mgmt Platform & Holding 0,6 (5,4) 6,1 112%

• EBIT investment

14,4 (22,7) #### 163% TOT EBIT 15,0 (28,1) #### 153% Extraordinary Items (59,3) (153,6) #### n.a. TOT EBIT post Extraordinary Items (44,3) (181,8) #### 76% Discontinued operation 8,1 (142,6) #### 106% Net income (61,1) (332,8) #### 82% ACTUAL DEC 2014 DISCONTINUED ACTUAL DEC 2013 DISCONTINUED PROFORMA Net Equity 107,3 169,6 Net Financial Position 187,6 152,5 Cash 77,2 86,2 Cash available 31,3 69,0 Statutory Net Equity 49,4 122,9

3)

5

Strategic Agreement with iCORE Global

PRELIOS

Prelios entered into a strategic agreement with iCORE Global, a US-based player providing real estate services globally, for the collaboration between the two companies at world level. As a result of this agreement, Prelios Integrated Services, the Group strategic business unit that through operating companies provides a comprehensive range of real estate services (property and project management, valuations, brokerage, agency and administrative management) will have direct access to over 63 countries worldwide and will be able to provide to corporate clients the services of iCORE Global, an US company operating in the real estate services worldwide, like brokerage, landlord and tenant representation. iCORE Global is the leading full service, commercial real estate provider worldwide with over 127 locations servicing 301 major cities across 63 countries and an experience of over 27 years, and has the market intelligence to handle all of your commercial real estate

• needs. Commercial real estate teams from around the

globe are united in a centralized platform to deliver high quality services and empower strategic real estate

• perations

for local, national and multi-national

• corporations. With over $ 47.5 bln in transactions 2013,

iCORE Global is the eighth largest brokerage firms in the world. in partnership with

6

MoU with Negentropy Capital Partners LLP

PRELIOS

Prelios entered into a MoU finalized to the acquisition of 80% of Negentropy Capital Partners LLP, a London-based asset manager operating under the supervision and regulation of FCA. Such transaction will allow to create Prelios Europe, thus setting up in a very short time an AIFMD-compliant European platform capable to carry out fund raising activities, by collecting capitals from foreign investors who want to invest in Italy. Moreover, thanks to this platform, Prelios will be able to structure products in order to facilitate investments by Italian institutional investors in foreign countries. The expected benefits of international expansion are as follows:

• Access to new sources of capital
• Benefits from the fund raising platforms and partners’ experience in specific sectors and countries
• Expanding the range of products offered to its investors
• Increasing diversification of investments on an international scale in line with the strategies of the major players in the

sector in Europe

• Support the growth of AuM: from Italian market player to global market player

Negentropy Capital Partners LLP is a London-based asset manager operating under the supervision and regulation of FCA

7

Prelios SGR – FY 2014 Main Achievements (1/2)

PRELIOS GROUP

1) AUM up to December 2014 around 72mln Euro, including binding agreement up to 77mln Euro – AUM expected 95mln Euro

• Prelios SGR 2014 main achievements:

 New AUM 0.4 € mln Euro  Revenues 20.5 € mln Euro  EBIT 7.4 € mln euro (ROS 36%)

• Four new ordinary full equity real estate funds were established between 1Q 2014 and beginning of 2015:

 Fondo PAI – Parchi Agroalimentari Italiani promoted for the implementation of the F.I.CO. (Fabbrica Italiana Contadina) project, sponsored by Eataly within the Agricultural-Food Market of Bologna. The Fund was established through the transfer of the area and the underwriting by numerous investors of units to be paid up in cash. Total AUM expected 95 € mln (1)  Fondo IGEA, dedicated to investments in projects with significant potential development and real estate asset

• renovation. The Fund is open to both institutional investors interested in financial investments and other qualified

investors who will contribute with assets in kind (areas or properties).  Fondo Primo RE, dedicated to Cassa Nazionale di Previdenza e Assistenza dei Dottori Commercialisti (CNPADC) to be invested in real estate assets and real property rights with mainly an office/light industrial destination.  AURORA, completed on January 14, 2015 and established through the contribution of part of the real estate assets

• wned by the pension fund for employees of Banca di Roma. The real estate consists of seven properties located

primarily in the city of Rome and intended use offices.

• Management of Fondo ASCI, mainly owned by CdP, and dedicated to Social Housing projects in the South and Centre of

Italy, increasing the number of funds under management to 26.

8

Prelios SGR – FY 2014 Main Achievements (2/2)

PRELIOS GROUP

• Focus on ordinary and innovative new funds established with low leverage leaving the world of
• pportunistic funds
• Increased AUM for the funds already managed
• Completion of the revision and fine-tuning of the governance and of the internal regulations (policies and

procedures) also in the light of the organizational changes implemented in 2013.

• Agreement with Secondcap Ltd – a company authorised by FCA in London, managing a platform for transactions

to be completed in the secondary market of closed-end funds, in order to increase investment liquidity in the reserved real estate funds managed by the SGR

9

Prelios Credit Servicing – FY 2014 Main Achievements

PRELIOS GROUP

• Prelios Credit Servicing 2014 main achievements:

 Revenues 7.7 € mln Euro  EBIT -1.5 € mln euro

• Acquisition of the role of Key Player on the NPL market thanks to the participation in the following transactions:

 Operating partner of Fortress, for the acquisition of UCCMB  Agent in over 20 «open market» contracts and additional contracts in the pipeline with some of Italy’s main banks.

• Confirmed positive rating by Fitch and Standard & Poor’s, (RSS2/CSS2 and Above Average)
• Completed transformation of the business model from captive to open market:

 Reduction in fixed costs through: − Revision of the business model which included the reduction of the number of employees by leveraging on

• utsourcing

− Outsourcing of administrative/corporate activities to SARE and development of synergies with the Group (centralization of some support/service functions).

10

Prelios Credit Servicing – FY 2014 Main Achievements (2/2)

PRELIOS GROUP

• Completed transformation of the business model from captive to open market:

 Revision and subsequent upgrade of the corporate structure: − Strengthening of the Governance structure with the introduction of an independent director in the BoD − Integration of new resources (Head of Operations, Business Development, Controller, Loan Manager, Application Management) − Updating of the corporate regulations.

• Positive rating by the Board of Directors of the adequacy of the organizational, administrative and accounting

structure of the Company pursuant to Article 2381, par. 3, of the Italian Civil Code.

• PRECS worked and is continuing to work as a catalyst for all the other Busines Units activities.

11

Prelios Integrated Services – FY 2014 Main Achievements

PRELIOS GROUP

• Prelios Integrated Services 2014 main achievements:

 Revenues 28.1 € mln Euro  EBIT 3.7 € mln euro (ROS 13.2%)

• More than 50% of the Turnover generated with non captive clients (for example: INPS, Telecom Italia, Gruppo

Unicredit, Sisal, ING Direct, Deutsche Bank, UBI Banca, Prisma Sgr).

• Continues the focus on large size institutional clients and on contracts with longer length and higher margins
• Main new mandates acquired from third parties in the period:

 Banks and Insurance Companies: Bank of Italy, BNL, Intesa San Paolo, Italease, Unicredit, UniCredit Leasing, UBI  SGR: Beni Stabili, BNP Paribas, REIM SGR, Fabrica Immobiliare SGR, Fabrica Immobiliare SGR, Generali Real Estate Italy  Large-sized non-financial companies: A2A, Eni Servizi SpA, Eni Servizi SpA, Enel Energia SpA, Sisal SpA

• The current commercial pipeline includes approximately 200 new opportunities on nearly 100 clients.
• In 2014 Integrated Services Italy has revised its organization hiring new key managers and redefining all the strategic

roles and strengthened the technical team with new professionals.

• In December 2014 was assigned to Prelios Integra Spa the "Rating of Legality" with a score of 2 stars ++. The "Rating of

Legality", awarded by the Italian Competition Authority (AGCM).

• In 2014 Continued the commercial action vs banks to strengthen its presence in the market for loans services.

12

Germany – FY 2014 Main Achievements

PRELIOS GROUP

• Prelios Germany 2014 main achievements:

 Revenues 15.1 € mln Euro  EBIT 3.3 € mln euro (ROS 22.2%)

• Strong leverage on a very dynamic and remarkable size market of more than 40bn.

 headcount “rightsizing” (which has been slowed down by the otherwise unsuccessful attempt to establish a Work Council) to be completed in the first half of 2015.  New business development acceleration from mid 2014, with a particular focus on Shopping Center Management, Development Services and Transaction Management. Focus on lower number of project but bigger and more profitable.  Three senior people (including a new hire) focused on the business development .  Completed the financial and company restructuring of the Prelios Deutschland group  Completed the exit from the residential portfolio focusing on higher margin projects  Strong leverage on Germany as a developing platform for Northern Europe activities. Strong focus on new business development closing new important mandates with:  Pramerica: Management of a shopping center / Städtische Werke Magdeburg: Brokerage activity to manage a property sale process in Magdeburg  Erste Immobilien KAG: Property management of a real estate asset in Hamburg for 4 years / CJ Schmidt: Concept definition of a new shopping center in Husum.

13

Poland – FY 2014 Main Achievements

PRELIOS GROUP

• Prelios Poland 2014 main achievements:

 Revenues 0.3 € mln Euro  EBIT -0.4 € mln euro

• The figures already presented for Poland are related to the service activity. It’s relevant to underline also an important

result related to the investment Polish portfolio. In mid 2014 Prelios supported by Cushman&Wakefield and Dentons started the disposal process of Berea (the property is 100% hold by Pireh II, a participated holding owned 40% by Prelios and 60% by Grove).

• This process was successfully closed at the end October, selling the property to Master Management Group («MMGM»)

with a positive impact on Prelios numbers, generating a capital gain of 20mln Euro for Prelios.

• After few years of downsizing and restructuring process Prelios Polska’ restarted its activity as a real estate service provider

mainly focusing on:  Advisory and Brokerage in Real Estate Transactions  Property and Project Management Services  .Administration Services

• With a stable economy, Poland remains an attractive investment destination in Europe. As one of the best performers

in Europe it manages to avoid recession in the recent downturn and generate a solid growth. The GDP growth in 2014 was around 3.2%

14

Outlook 2015-2017

PRELIOS GROUP

• Consistently with the strategy of the Group and thanks to the intensive business development, Prelios is

consolidating his position in the market as a Pure Asset Manager and has the ambitious goal of becoming the reference "Asset Manager and Service Provider" in Italy and in some European markets

• Following the 2015 – 2017 Outlook, the Business Units will move along the following lines:

 SGR business will growth both through the acquisition of new assets, to enrich new products to be distributed to investors (national and not) and / or existing funds, either through the direct acquisition of products from other SGR or through the integration with some of them having:

• a range of complementary products;
• a complementary shareholding structure
• the relationships with the main investors;
• Reinforcement of the open market strategy of PRECS to grant a sustainable growth, development of extraordinary
• perations with upfront to finance the growth and the development of a co-investment activity in partnership with other investors
• n small/medium size portfolios to catch the opportunities arising from the real estate cycle.
• Expansion of the non-captive customer base of Integrated Services, margins improvement and consolidation of the national

leadership on a wide range of services with the aim of being perceived as the only "Full Service" player active on the Italian market;

• Repositioning of the German platform as a "German" operator, focused on value-added services for international investors,

and with the unified leadership responsibility for Germany and Poland

15

Outlook 2015-2017

PRELIOS GROUP

• The Group started a number of new strategic projects that could further improve the Group's

performance in the period of the plan, in particular:

 Expansion into new asset under management markets ("Prelios Europe”). Prelios, in line with the current market trends and taking into account the rules related to asset management (so-called" AIFMD "), is finalizing the acquisition of the majority of an asset management company authorized by the FCA (Negentropy Capital Partners) with the aim of attracting international investors with alternatives products to real estate funds.  Potential launch of new indirect investment vehicles taking advantage of the recent regulatory changes and with the aim of attracting new international assets on Italian regulated markets.  Expansion into new innovative sectors next to the Real Estate. Prelios is considering the opportunity of diversifying in innovative sectors with real estate contents and, in particular in the field of energy efficiency and promotion of cultural heritage in Italy from the real estate point of view  Leverage on the German platform to create the second Prelios Group “HUB" (apart from Italy), with responsibility for business development in Central and Northern Europe.

16

FY 2014 Consolidated Profit and Loss

PRELIOS GROUP

(€/mln) ACTUAL DEC 2014 DISCONTINUED ACTUAL DEC 2013 DISCONTINUED Delta Actual 2014 vs Actual 2013 DISCONTINUED Delta % Actual 2014 vs Actual 2013 DISCONTINUED Revenues 72,1 73,1 (0,9)

• 1%
• f which service activities

70,1 68,6 1,6 2%

• f which other revenues

2,0 4,5 (2,5)

• 55%

EBIT services 0,6 (5,1) 5,7 113% Income from equity participations services 0,0 (0,3) 0,3 101% Management platform/G&A 0,6 (5,4) 6,0 112% EBIT consolidated investment activities (8,8) (24,8) 16,0 64% Income from equity participations 18,7 (6,7) 25,4 378% Interest income from participations 4,5 8,8 (4,3)

• 49%

Investments 14,4 (22,7) 37,1 163% EBIT 15,0 (28,1) 43,1 153% Financial charges (22,5) 6,6 (29,2)

• 439%
• f which:

Financial expenses (8,0) (10,5) 2,5 23% Fair value adjustment 39,9 (39,9)

• 100%

Implicit financial expenses (12,3) (11,6) (0,7)

• 6%

Upfront fees (on existing financing) (8,8) 8,8 100% Other (2,3) (2,4) 0,2 7% Profit before restr. costs, writedown/ reval. & taxes (7,5) (21,5) 13,9 ns Restructuring costs (13,9) (42,6) 28,7 ns Property writedowns/revaluations (39,1) (84,0) 44,9 ns Impairment test (6,3) (27,1) 20,7 ns Profit before taxes (66,8) (175,2) 108,4 ns Income taxes (2,8) (16,0) 13,2 82% Net income before discontinued operations (69,6) (191,2) 121,6 ns Discontinued operations 8,1 (142,6) 150,7 ns Net income (61,5) (333,8) 272,3 ns Minority interests 0,4 1,0 (0,6)

• 62%

Net income after minority interests (61,1) (332,8) 271,7 ns

17

Management Platform: FY 2014 Revenues and Ebit

PRELIOS GROUP

(€/mln)

ACTUAL DEC 2014 DISCONTINUED ACTUAL DEC 2013 DISCONTINUED ∆ ACTUAL 2014 vs ACTUAL 2013 ∆% ITALY SGR Revenues 20,5 21,0 (0,5)

• 3%

Ebit 7,3 7,6 (0,3)

• 3%

ROS 35,7% 36,0% Integra Revenues 19,1 15,2 3,9 26% Ebit 2,5 0,8 1,7 212% ROS 13,0% 5,2% Agency Revenues 5,0 1,6 3,4 219% Ebit 0,9 (3,4) 4,3 125% ROS 17,4%

• 219,2%

Valuation Revenues 4,0 3,4 0,6 17% Ebit 0,3 0,4 (0,1)

• 8%

ROS 8,5% 10,8% Franchising Revenues 0,0 0,4 (0,4) n.s. Ebit 0,0 (0,7) 0,7 n.s. ROS

• 68,0%

NPL - Credit Servicing Revenues 7,8 8,5 (0,7)

• 8%

Ebit (1,4) (3,2) 1,7 55% ROS

• 18,3%
• 37,3%

Management Platform ITALY Revenues 56,3 50,0 6,3 13% Ebit 9,6 1,5 8,0 536% ROS 17,0% 3,0% GERMANY Management Platform GERMANY Revenues 15,1 17,9 (2,8)

• 16%

Ebit 3,3 5,3 (2,0)

• 37%

ROS 22,2% 29,6% POLAND Management Platform POLAND Revenues 0,3 0,5 (0,2)

• 37%

Ebit Ebit (0,4) (0,5) 0,1

• 11%

ROS

• 142,8%
• 100,6%

Management Platform Foreign Countries Revenues 15,4 18,4 (3,0)

• 16%

Ebit 2,9 4,8 (2,0)

• 40%

ROS 18,9% 26,1% G&A G&A (Holding) Revenues (1,6) 0,1 (1,7)

• 1427%

Ebit (11,8) (11,8) (0,0)

• 201%

TOTAL MANAGEMENT PLATFORM Revenues 70,1 68,6 1,6 2% Ebit Management Platform 0,6 (5,4) 6,0 112% ROS 0,9%

• 7,9%

Revenues escluding G&A 71,7 68,4 3,2 5% Ebit Management Platform escluding G&A 12,5 6,3 6,1 96% ROS 17,4% 9,3%

1) Result of Management Platform 2013 includes values related to Franchising. company sold in Sept 2013 (+0.4 revenues and -0.7 ebit)

1)

18

Investment: FY 2014 Ebit

PRELIOS GROUP

(€/mln)

ACTUAL DEC 2014 DISCONTINUE D ACTUAL DEC 2013 DISCONTINUED ∆ ACTUAL 2014 vs ACTUAL 2013 ∆% Vehicles Ebit : (6,1) (26,1) 20,0 77% Funds Ebit : 2,6 3,8 (1,2)

• 32%

Structure Ebit: (3,4) (4,3) 0,9 20% ITALY Real Estate Ebit (6,9) (26,5) 19,6 74% ITALY NPL Ebit 0,3 4,7 (4,4)

• 94%

GERMANY Real Estate Ebit 2,6 0,6 2,0 320% POLAND Real Estate Ebit 18,4 (1,5) 19,9 1311% TOTAL Ebit Investment 14,4 (22,7) 37,1 163% Total (Management and Investment) 15,0 (28,1) 43,1 153%

19

FY 2014 Consolidated Balance Sheet

PRELIOS GROUP

(€/mln) ACTUAL FY 2014 ACTUAL FY 2013 ACTUAL FY 2013 pro forma Fixed assets 346.4 380.4 380.4

• f which participations and shareholders' loan

285.7 317.7 317.7

• f which goodwill

56.4 56.4 56.4 Net working capital 17.0 13.9 13.9 Inventories 43.5 48.4 48.4 Trade receivables 35.0 35.0 35.0 Trade payables (47.3) (48.1) (48.1) Other payables/receivable (14.2) (21.4) (21.4) Net invested capital 363.4 394.3 394.3 Net equity 107.3 (66.3) 169.6

• f which group net equity

104.8 (69.1) 166.8 Funds 68.5 72.2 72.2 Net financial position 187.6 388.4 152.5 Net Financial Position discontinued 187.6 388.4 152.5 Total sources 363.4 394.3 394.3

1) Values reflect the impact of discontinued operation related to DGAG sale on participations for 2.2 €mln and on shareholders’ loan for 10 €mln. 2) After conversion of Convertible (execution date 14 April 2014)

20

Net Financial Position Dec 2013 – December 2014

PRELIOS GROUP

(€/mln)

1) 1) Discontinued figures

(€/mln) 24.8 2.7 20.3 187.6 December 2014 20.5 (40.4) December 2013 7.8 Sales and distributions Equity

• contrib. to

funds and SPV Restructuring costs

Financial expenses

Other and NWC Taxes

• f which:

+ 10.7 Tamerice + 10.1 Earn In (no cash item) + 2.5 Lay-off + 1.5 Other

• f which:

+ 8.0 Financial expenses (of which 2.0 mln cash item) + 12.3 Fair value adjustment on Senior and Super Senior (no cash items)

388.4 Conversion of Covertible (236.5)

• f which:

+ 0.4 Aree Urbane- Italy + 0.6 Polish- Poland + 0.5 Highstreet - Germany + 0.4 Gadecke + 0,8 Other

• f which:

(30.3) DGAG (4.8) SIG (3) FOK (0.7) Orione (1.6) Other

21

Financial situation of co-investments

PRELIOS GROUP

• LTV 2) Real Estate 45%: Italy 63%. Germany 23% (pro rata Real estate 53%: Italy 65%, Germany 23%)
• Average Duration 1.1 (Italy 1.0, Germany 1.6)
• Average Spread: 503 bps
• 18% interest rate risk hedged
• Recourse guarantees for approx. 12.5 € mln 3) (pro-rata Prelios).

Bank Loan characteristics (figures 100% basis)1)

1) Excluded NPL 2) Calculated on net debt 3) Recourse guarantees include 4.9 €mln related to Aree Urbane SPV. already included as financial indebtness in Net Financial Position. 5.0 mln related to Kempinsky Plaza and 2.6 mln related to Gamma Re.

€/mil 100% pro-rata Actual FY 2014 1,570 526 Actual FY 2013 2,643 749 Actual FY 2012 6,068 1,478 Variance FY 2014 vs FY 2013

• 1,073
• 223

NET DEBT

22

Prelios Assets Breakdown as of December 2014

PRELIOS GROUP

ITALY 1,806 1,723 1,132 643 613 418 65% 226 196

• 7.0

GERMANY 1,060 1,056 245 150 148 34 23% 115 90 2.6 POLAND 56 11

• 51

23 5

• 20
• 90%

43 24 18.4 TOTAL REAL ESTATE CO- INVESTED 2,922 2,790 1,326 815 765 432 53% 384 311 13.9 THIRD PARTIES 2,289 N/A N/A 23 N/A N/A 7 0.1 TOTAL REAL ESTATE 5,211 2,790 1,326 838 765 432 384 318 14.0 NPL (investment) 5 0.3 TOTAL INVESTMENT 323 14.4 MANAGEMENT PLATFORM 42 0.7 TOTAL PRELIOS 365 15.0 EBIT+IEP+IIP Book Value pro rata Prelios Net Debt pro rata Prelios LTV pro rata NAV pro rata Prelios NIC pro rata Prelios Book Value 100% 31.12.14 Net debt 100% 31.12.14

• Mkt. Value

100% 31.12.14

• Mkt. Value

pro rata Prelios

2) Asset breakdown doesn't include initiatives in “winding up process” or similar processes (Fondo Portafogli Misti, Riva dei Ronchi, Induxia, Maro, Roca , Lupicaia, Aree Urbane and Golfo Aranci) with a total 286 mln gross debt 100% and gross debt pro-rata 101 mln. 1) Including initiatives with a Prelios share lower than 5% or not participated. The gross debt 100% of Fdo Cloe is about 243 mln. 2)

23

Italy Assets Breakdown as of December 2014

PRELIOS GROUP

COMMERCIAL YIELDING & CORE 1,143 1,078 558 375 353 212 57% 163 126 1.7 TRADING & SOHO 316 309 363 118 114 123 104%

• 5

21

• 1.5

DEVELOPMENT 130 128 88 61 60 40 66% 21 7

• 1.2

LANDS 218 207 124 89 85 42 47% 47 41

• 6.0

TOTAL ITALY CO- INVESTED 1,806 1,723 1,132 643 613 418 65% 226 196

• 7.0

THIRD PARTIES 2,289 N/A N/A 23 N/A N/A 7 0.1 TOTAL ITALY 4,095 1,723 1,132 666 613 418 226 203

• 6.9
• Mkt. Value 100%

31.12.14 Book Value 100% 31.12.14 Net debt 100% 31.12.14 EBIT+IEP+IIP

• Mkt. Value

pro rata Prelios Book Value pro rata Prelios Net Debt pro rata Prelios NIC pro rata Prelios LTV NAV pro rata Prelios

1) Including initiatives with a Prelios share lower than 5% or not participation. The gross debt 100% of Fdo Cloe is about 243 mln.

24

Germany and Poland Assets Breakdown as of December 2014

PRELIOS GROUP

DGAG (Residential) 12 0.0 HIGHSTREET (Commercial) 1,003 1,003 241 121 121 29 24% 92 41

• 0.5

Residential Small deals 0.0 Commercial &

• ther

57 53 4 28 27 6 19% 23 37 3.1 TOTAL GERMANY 1,060 1,056 245 150 148 34 23% 115 90 2.6 TOTAL POLAND LANDS 57 11

• 51

23 5

• 20.2
• 89%

43 24 18.4 EBIT+IEP+ IIP Book Value pro rata Prelios Net Debt pro rata Prelios LTV NAV pro rata Prelios

• Mkt. Value 100%

31.12.14

• Mkt. Value

pro rata Prelios NIC pro rata Prelios Book Value 100% 31.12.14 Net debt 100% 31.12.14

1) Not Including initiatives with a Prelios share lower than 5% or not participated.

25

Outlook Management Platform 2015-2017

PRELIOS GROUP

Revenues EBIT ex G&A 2015 2016 2017 € 75-80 mln € 100-105 mln € 120-125 mln € 6-8 mln € 10-12 mln € 18-20 mln G&A Costs Reduction

• 50%

Prelios Group

Ownership structure

Source: July 2014, as it results from the Shareholders' Book supplemented by disclosures pursuant to Article 120 of Italian Legislative Decree n.58/1998 and by other available information.

Economic share capital Share capital with voting rights

27 Marco Andreasi, Prelios’s Financial Reporting Officer declares - pursuant to Legislative Decree

• No. 58 of 24 February 1998 “Consolidated Law on

Finance” - the conformity of the accounting information contained in this presentation against document results, books and accounts records. Investor Relations Prelios Francesca Cocco Tel.+39/02/62.81.4104 ir@prelios.com