Successful real estate development for over 10 years EYEMAXX Real - - PowerPoint PPT Presentation

EYEMAXX, June 2011

Successful real estate development for over 10 years EYEMAXX Real Estate bond investment

Disclaimer

This publication does not constitute an offer to sell nor an invitation to buy Amictus AG securities, in future: Eyemaxx Real Estate AG. An offer will be made exclusively by means of and on the basis of a prospectus, which will be published in connection with the offer. In accordance with Section 14 (2) no. 3a of the Securities Prospectus Act (Wertpapierprospektgesetz – WpPG), plans are to publish the prospectus on the website of the issuer and on other websites, including Amictus AG, in future: Eyemaxx Real Estate AG (Auhofstrasse 25, 63741 Aschaffenburg, Germany, phone: +49+6021 386 69 – 10) where it will be available for downloaded free of charge.

EYEMAXX is one of the leading companies to develop, sell and utilise commercial real estate in Central

• Europe. This provides EYEMAXX with a presence in regions that are recording far above-average growth

but also offer a large degree of stability and security. EYEMAXX builds its success on long-standing and successful partnerships with top anchor tenants and an experienced management team. EYEMAXX successfully implemented its profitable business model even during the financial and real estate crisis and is now starting into another period of sustained and rapid growth.

Mission Statement

• 1. Investment Highlights
• 2. At a Glance
• 3. Business Concept and Product Strategy
• 4. Market Environment and Competition
• 5. Private Equity Financing vs. Internal Financing
• 6. Performance Indicators
• 7. Projects and Structure
• 8. Allocation of Resources: Project Pipeline
• 9. EYEMAXX Bond 2011 – 2016
• 10. EYEMAXX – Strengths – An Overview

Content

• 1. Investment Highlights

7.50% return and triple security Profitable business Net annual profit on account of successful real estate development, even during the crisis Investment in tangible assets Clearly defined project pipeline for investments in specialist stores, logistics centres and hotels in Central Europe Additional, external collateralisation Almost entirely external real estate portfolio of company founder provides additional collateralisation for bond

• 1. Investment Highlights

Strong markets Central Europe has above-average growth perspectives Strong partners International trade and hotel chains with top credit ratings are anchor tenants and long-terms partners Highly experienced Proven concepts and construction technology, approximately EUR 200 million realised and sold Strong brands Own brands such as BIG BOX, MyBOX and STOP.SHOP. (licensed by IMMOFINANZ AG) Weak competition Great demand for specialist stores, logistics centres and budget hotels in Central Europe, but only small, regional competitors Solid figures Profitable business, around EUR 14 million equity

• 2. At a Glance

Foundation 1996 – Establishment of operating subsidiary EYEMAXX International Holding & Consulting GmbH, Austria Integration Q2 2011 – Eyemaxx International is integrated in the company shell (General Standard)

• f Amictus AG (ISIN DE000A0V9L94) as part of a non-cash capital increase. Future

company name: EYEMAXX Real Estate AG Focus Specialising in developing, selling and utilising real estate in the specialist store and logistics sectors as well as constructing buildings according to customers’ requirements with focus on Poland, the Czech Republic, Slovakia, Germany and Austria Track record Developing real estate with an approximate volume of EUR 200 million between 2006 and 2011 alone (even during the real estate crisis)

• 2. At a Glance / Experienced Management Team
• Mag. Dr. Michael Müller

CEO and founder Long-standing experience in project and general management KR Ing. Norbert Adelmann Manager Brands 35 years experience in real estate acquisition, planning and project management

• Mag. Georg Dobler

Manager Project Companies Over 10 years’ experience in acquisition, planning, construction management and controlling Jon A. Pirtle Manager Hotel Dev.

• Prev. Management

Ritz-Carlton,

• ver 40 successful hotel

developments

• Mag. Christian Künz

Manager EYEMAXX Finance Long-standing experience in banking and financial services Maximilian Pasquali LL.M Head of Legal Dept. Extensive expertise in business, trade and capital markets law

• Mag. Helmut Herglot

CFO 7 years’ experience in management functio accounting (IFRS), controlling and proje financing

• 3. Business Concept and Product Strategy

• 3. Business Concept, Core Markets

and Product Strategy

Specialist stores Budget hotels (tailor-made solutions) Other (logistics centres, DIY stores etc.)

• 3. Business Concept and Product Strategy

Pre-selecting a location Location analysis Anchor tenant Concluding option agreements Technical planning Planning construction and

• perating license

Developing rent agreements Call for tender Project financing Appointing general Contractor Construction phase Project management & Controlling Connecting Infrastructure Final inspection Facility management Business administration Reporting Sale to strategic investors

• r

institutional investors as individual projec

• r portfolio

Along the entire value added chain

• 3. Business Concept and Product Strategy

Strong anchor tenants and customer traffic generators

• 3. Business Concept and Product Strategy

(1) Specialist stores

Market leader in Central Europe

• Market leader for local consumer supplies via own specialist store concepts
• Long-standing partners are anchor tenants under the brand names BIG BOX, MyBOX and STOP.SHOP. (brand of

IMMOFINANZ) Low risk for investment cost planning

• Low planning and construction risks thanks to proven concepts and construction technology
• Short realisation periods due to high degree of standardisation
• Real estate prices in target markets are still largely stable at present

Highly secure in terms of achievable rent income / cash flow

• Proven brands are reliable tenants with top credit ratings and generally long-term rent agreements
• Indexed rent agreements, dependent on general price performance, provide permanent hedge against inflation
• General contractors provide comprehensive performance guarantees, secured by bank guarantees

High planning security with regard to current operating costs

• If additional bank loans are used, they have fixed interest rates for the entire term
• Long-term comprehensive facility management agreements to ensure maintenance

• 3. Business Concept and Product Strategy

(2) Budget hotels – tailor-made solutions

Own image: EUROPEAN HOTEL PARTNER

• Team has gathered experience from numerous projects for leading brands such as ACCOR Group, including Dorin

NOVOTEL, ibis, etap etc.

• Cooperation with ACCOR for the joint development and construction of sustainable hotels
• Pre-selection of location (pipeline) already defined by ACCOR
• Extensive experience from other tailor-made solutions, e.g. for BAUHAUS
• Risks are minimised by signing rent agreement prior to commencing work, then sale afterwards

Budget hotel segment

• Largely standardised customer-specific construction concepts
• Standardised repair and maintenance agreement concepts
• Indexed 15-year rent agreements with operators, including group guarantee

Tailor-made projects for operators and investors

• Accredited, high-calibre team of hotel experts with long-standing market know-how
• Rent agreements with minimum 15-year terms provide for long-term investment security
• Tailor-made solutions – no blind pool development

New projects in the pipeline

• Nuremberg, Aschaffenburg, Munich

• 3. Business Concept and Product Strategy

(3) Other – Logistics Centres

Long-standing experience

• 14 logistics centres in Germany and Austria in the portfolio of sister company Birkart KG
• Tenants include: LOGWIN, RABEN, QUEHENBERGER, BRENO

Competitive advantage in the logistics sector

• Short realisation periods thanks to high degree of standardisation and proven concepts
• Close to potential tenants via portfolio of sister company Birkart

Tailor-made projects for operators and investors

• Highly secure return due to budgets being adhered to in a professional and timely manner
• Operator focusses on operating business – EYEMAXX plans, finances and constructs
• No blind pool development

New projects in the pipeline

• Airport Logistic Center Nis (third-largest city in Serbia, north of Belgrade) with 22,000 sqm floor space

• 4. Market Environment and Competition

Growth markets – a quick guide

GDP growth 2011e 2012e Eurozone +1.4% +1.9% Poland +3.9% +4.5% Slovakia +4.0% +4.5% Czech Republic +1.5% +2.3% Austria +2.5% +2.0% Germany +3.4% +2.5%

Source: Raiffeisen Research 2011

Above-average consumer spending rises (Poland +9.9% p.a. from 2009 – 2012) Not enough specialist stores and hotels up to now Economic growth increases demand for logistics Stable legal framework in Central Europe provides security

• 4. Market Environment and Competition

Specialist stores – competition

• Special focus on cities with a population between 30,000 and 50,000 → low competition and large

catch-up potential

• Investment volume per specialist store from EUR 5 million to EUR 15 million, depending on location

→ to little for large international real estate developers

• Regional developers at the most, in individual cases as competitors
• Market potential in Poland alone expected to be 200 specialist stores

• 4. Market Environment and Competition

Budget hotels – competition

• Demand for budget hotels is growing considerably in Central Europe
• Only few international hotels up to now

(merely 21% of capacities are owned by hotel chains)

• Hotel developers interested in partnerships with experienced real estate developers
• Significant opportunities in the emerging market

• 4. Market Environment and Competition

Logistics – competition

• In 2011, floor space in Germany up 30% on the years 2005 to 2009 (source: JLL)
• Logistics centres in Poland and the Czech Republic develop particularly dynamically after the crisis

(source: Colliers)

• Experience is a definite competitive advantage
• Partnerships between real estate developers and logistics companies

• 5. Private Equity Financing vs. Internal Financing

Example: STOP.SHOP.* specialist store in CZ (financed with private equity, so-called forward sale)

Investment criteria at the start of project: (1) Tenants’ and purchasers’ location criteria  ok (2) Option agreement with real estate owner  ok (3) Positive external location analysis  ok (4) Investment calculation confirmed by independent expert  ok (5) Positive rating of general contractor / fixed price agreement offer  ok (6) Use of certified construction technology  ok (7) Total project financing  ok (8) Rent agreements for at least 60% of rental space  ok Project details and financial result (actual result)

• Small city location:

Population: 35,000

• Rental space:

5,043 sqm

• Total investment costs:

EUR 5,597 million

• Net rental income p.a.:

EUR 560,000 / exit price EUR 6,585,000 = 8.5% yie

• EBT at SPV level relating to exit price:

15.02% of which 50% private equity partner

• Profit share EYEMAXX 50%

7.51% of exit price

• Plus services charged to SPV

3.70% = 11.21% total gross profit EYEMAXX

*STOP.SHOP. is a brand of IMMOFINANZ

Private equity vs. internal financing: Example – project sales price EUR 10.0 million

(Income PE partner: 8.25% interest on equity share + 50% profit of SPV) With PE (forward sale) Internal financing EUR % EUR % thousand thousand Exit price at net rental income of EUR 850,000 p.a. 10,000 100.0 10,625 106.25

(PE yield = 8.5% or multiple 11.76 / internal financing yield = 8.0% or multiple 12.5)

Construction costs, incl. land and ancillary costs 7,800 78.0 7,800 78.0 + Construction financing share 70% at forward sale (18 months at 6%) 246 2.5

• + Own share 30% (interest rate 24 months at 8.25% / of which 10% Eyemaxx)

386 0.4

• Comparison: 100% internal financing (24 months at 7% / average EUR 3.9 million) -
• 546

5.5 = Total investment costs 8,432 80.9 8,346 83.5 Profit at SPV level 1,568 15.7 2,279 22.8 Profit allocation (50% for PE and 100% for internal financing) 784 7.8 2,279 22.8 + Profit margin Eyemaxx of 3.7%, incl. in construction costs 372 3.7 333 3.3 Total profit margin EYEMAXX Real Estate AG 1,156 11.5% 2,565 25.1%

Internal financing provides twice as much earnings potential

Typical specialist store project calculation – a comparison

(with / without private equity (PE))

• 5. Private Equity Financing vs. Internal Financing

Business cycle (Example: Specialist store exit yield 8%, net rent EUR 850 thousand)

Exit price at 8% yield EUR 10.6 million Construction costs incl. GS 73.5% exit price EUR 7.8 million Total investment costs EUR 8.4 million Profit margin Ø 25.1% EUR 2.6 million

Debt service + profit Project financing Exit Real estate collateralisation Technical & financial engineering Pre-renting Renting Facility management

• 5. Private Equity Financing vs. Internal Financing

• 6. 2007 to 2010 Performance Indicators – A Comparison

(cons.) in EUR million Balance sheet key figures 2007 2008 2009 2010

Non-current assets 10.8 11.5 9.1 6.5 Current assets 13.8 15.2 14.5 28.0 Equity 10.6 12.6 13.5 14.1 EBITDA 3.8 3.3 1.2 1.2 Earnings after taxes EAT 4.0 2.0 1.0 0.8 Financial liabilities 2.0 0.7 0.6 2.0

For bond performance indicators see page 28

Bond investor

EYEMAXX Real Estate AG

Trustee holds securities for interest rate payments and repayment claim Accredited tenants with top credit ratings

Project companies 1 to n

Contractual relationships – internal financing (bond)

Sale Project companies Contracting partner debt capital

Real estate purchasers – institutional real estate investors

Issuer of repayment claim collateral receives liability fees Real estate owner / seller General contractor constructs turn-key projects

• 7. Projects and Structure

Project references comparison – separate presentations

Between 2005 and 2010, real estate projects with a total volume of approximately EUR 200 million were developed, constructed and sold.

• 7. Projects and Structure

• 8. Allocation of Resources: Project pipeline – Selected Items

Project

• 1. Specialist store Kyjov (CZ)
• 2. Specialist store Pelhrimov (CZ)
• 3. Specialist store Louny (CZ)
• 4. Specialist store Krnov (CZ)
• 5. Specialist store Jablonec (CZ)
• 6. Specialist store Poland I (PL) *
• 7. Specialist store Poland II (PL) *
• 8. Specialist store Poland III (PL) *
• 9. Hotel Germany I (DE) *
• 10. Hotel Germany II (DE) *

Total investment volume EUR 3.9 million EUR 2.0 million EUR 6.5 million EUR 4.0 million EUR 6.7 million EUR 6.5 million EUR 7.0 million EUR 7.5 million EUR 8.0 million EUR 9.0 million Estimated date of completion MAR 2012 APR 2012 SEP 2012 OCT 2012 NOV 2012 OCT 2012 NOV 2012 NOV 2012 MAR 2013 MAY 2013

*) Although location is known, no detailed information is being provided on account of competition

• 9. EYEMAXX Real Estate AG Bond 2011 – 2016

Volume: Up to EUR 25 million Interest coupon: 7.50% p.a. Term: 26 July 2011 to 26 July 2016 (final payment), interest rate date on 26 July of each year Listing: Entry Standard of Frankfurt Stock Exchange Allocation of resources: Investment in high-profit tangible assets and to a lesser extent in working capital; creating collateral under supervision of a notary, who also acts as trustee. Resources are only allocated once collateral has been created Collateralisation of bond: Certified land charges in favour of the notarial trustee of EUR 26 millio bond subscriber (80% of market value primary + 20% secondary) (Real estate from the private portfolio of majority shareholder Dr. Michael Müller) Group liability of issuer, net assets of: about EUR 14 millio Rating: BBB+ (credit reform)

Bond performance indicators 2009 2010 2011e 2012e 2013e

EBIT interest coverage

• 1,31

6.47 2.42 2.80 3.81 EBITDA interest coverage 2.09 8.67 2.42 2.97 4.23 Net debt / EBITDA 3.32 9.58 16.71 15.37 6.36 Total debt / capital 0.19 0.39 0.63 0.73 0.70

• 9. EYEMAXX Real Estate AG Bond 2011 – 2016

*) Figures based on 2011 to 2013: Estimates by fairesearch

• 9. EYEMAXX Real Estate AG Bond 2011 – 2016

Largely external real estate portfolio provides additional security

• Additional real estate portfolio of EYEMAXX founder supplements EYEMAXX securities for bond

creditors (certified land charge: EUR 26 million)

• Almost entire portfolio does not belong to EYEMAXX = No third-party access should EYEMAXX face

financial problems

• Conservative market valuation confirms portfolio value
• Collateralisation of EUR 20 million in first tranche / additional EUR 6 million in second tranche with

considerable value buffer

• Additional EUR 0.8 million rental income per year of the external portfolio is pledged to cover bond

interest payments

Real estate fund investment versus real estate bond investment

Advantages of a real estate bond investment with EYEMAXX

Multiple security: Direct collateralisation on the project plus resources are allocated for high-profit tangible assets plus liability with total assets of issuer

• Repayment claim collateralised with private real estate assets of majority shareholder
• Net equity of issuer amounts to EUR 14 million (financial liabilities approximately EUR 2 million)
• Issuer is listed on the regulated market (General Standard) and has high standard of transparency

Fungibility and high interest rates for the entire term

• Annual interest payments of 7.50%
• Listed security with investment grade rating
• Securities prospectus approved by BaFin

Bond investment provides financial advantages

• Favourably-priced security
• Simple, highly transparent management
• Low transaction fees upon sale
• 9. EYEMAXX Real Estate AG Bond 2011 – 2016

• 10. EYEMAXX – Strengths – An Overview
• Top-quality construction concepts, in strict compliance with sustainability aspects (tailor-made solutions)
• Scalable business model with high degree of standardisation
• Long-standing successful partnerships with renowned tenants such as

etc.

• Implemented specialist store concepts BIG BOX, MyBOX and STOP.SHOP. (a brand of IMMOFINANZ AG) enjoy

high level of acceptance

• Focus on “local consumer supplies” key niche market with total investment costs of EUR 5 million to EUR 15 millio

per specialist store and around EUR 2.0 billion potential in the target markets

• First mover advantage provides for locations to be secured early and cost-effectively in accordance with tenants’

criteria

• Track record: In the past five years 2006 to 2010, real estate projects with a volume of approximately EUR 200

million were planned, constructed and sold to investors

Many thanks