EPIC Suisse AG, CH0516131684

EPIC Suisse AG, CH0516131684

30.08.2022 - 07:04:38

EPIC Suisse AG publishes today its first half-year results for 2022 in line with its growth strategy

Media release - Ad hoc announcement pursuant to Art. 53 LR

Zurich, 30 August 2022

EPIC Suisse AG publishes today its first half-year results for 2022 in line with its growth strategy

Rental income grew by 8.3% to CHF 30.7 million in H1 2022 versus CHF 28.3 million in H1 2021 Reported vacancy rate as at 30 June 2022 reduced to 6.5% (3.4% on an adjusted basis) due to new lettings (31 December 2021, 7.6% and 3.7% respectively) Long WAULT as at 30 June 2022 at 8.4 years (8.6 years as at 31 December 2021) EBITDA (excl. revaluation on properties and CHF 5.9 million one-off IPO costs) amounted to CHF 25.0 million compared to CHF 24.1 million in H1 2021 Solid equity ratio at 51.6% Development/construction projects running according to plan

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EPIC Suisse AG (SIX: EPIC) (the ?Company? or ?EPIC Suisse?) published today for the first time as a public company its half-year results for 2022 after a successful IPO on SIX Swiss Exchange on 25 May 2022.

Higher rental income and lower vacancies

Rental income from real estate properties amounted to CHF 30.7 million for the first half of 2022 (CHF 28.3 million for H1 2021). The increase of 8.3% was mainly driven by the acquisition of the logistics property in Roggwil (end of March 2021) which contributed an additional three months of rental income from this property (CHF 1.0 million), and lower vacancies and the non-recurrence of Covid reliefs in H1 2022 (aggregate impact of CHF 1.0 million). The reported vacancy rate of investment properties in operation decreased to 6.5% end of June 2022 (7.6% at 31 December 2021; 8.1% at 30 June 2021), primarily as a result of new lettings in the office sector. On an adjusted basis (adjusted for absorption and strategic vacancy in the properties Z?nti Volketswil and Biop?le Serine), the vacancy rate amounted to 3.4% at 30 June 2022 (3.7% at 31 December 2021; 4.2% at 30 June 2021).

Total real estate portfolio valued at CHF 1?484.3 million

The revaluation of the properties by the independent real estate valuer W?est Partner AG led to a net revaluation gain of CHF 5.3 million (loss of CHF 1.0 million in H1 2021). With capital investments of CHF 13.2 million, the portfolio value increased by 1.3% to CHF 1?484.3 million as at 30 June 2022 (CHF 1?465.8 million at 31 December 2021).

Profitability

EBITDA for the first half-year 2022 period increased by 5.8% to CHF 24.4 million (CHF 23.1 million in H1 2021). This includes one-off IPO expenses of CHF 5.9 million in H1 2022 (in addition, one-off IPO costs of CHF 4.2 million were booked in equity during the period). Excluding the unrealised revaluation gain of properties and the above-mentioned one-off IPO costs, the business generated an EBITDA of CHF 25.0 million, representing an increase of 3.7% compared to the first half of 2021.

The financial result came to a net income of CHF 19.1 million (net expense of CHF 1.7 million for H1 2021) and includes unrealised revaluation gains from hedging derivative instruments (interest rate swaps) in the amount of CHF 23.1 million for H1 2022 (CHF 2.0 million for H1 2021). In accordance with IFRS, the interest rate swaps are valued at their current fair value at each balance sheet date and changes in the fair value are reflected in the statement of profit or loss. These fair value adjustments do not impact the Company?s operations, cash flows, or dividend policy.

Profit (including revaluation effects) reached CHF 38.7 million in H1 2022 versus CHF 18.3 million for H1 2021, mainly for the reasons mentioned above. Profit (excluding revaluation effects), including the one-off IPO costs of CHF 5.9 million, was CHF 13.5 million for the 2022 reporting period (CHF 17.3 million for H1 2021).

Strong capital base

As at 30 June 2022, the equity totalled CHF 800.3 million with a solid equity ratio of 51.6% (CHF 577.9 million and 38.6% at 31 December 2021). Net asset value per share amounted to CHF 77.47 (CHF 77.05 at 31 December 2021). Gross proceeds from the IPO amounted to CHF 192.4 million. EPIC Suisse paid back the shareholders? loans, corporate bank debt at the holding level as well as temporarily repaid bank loans in order to reduce its cost of debt.?

Development pipeline

As previously reported, EPIC Suisse signed on 27 July 2022 with Implenia group a total contractor agreement for the construction of its project PULSE in Cheseaux-sur-Lausanne. The fixed price agreed with Implenia is within the construction budget previously mentioned by the Company. The PULSE project will be made of two adjacent light industrial and / or production buildings with a gross area of around 43?000 sqm above ground, and connected with two basement floors that provide generous parking, storage and technical areas. Due to the buildings? technical flexibility, PULSE represents a unique opportunity for different types of companies to base their production as well as R&D operations in the vicinity of Lausanne. The buildings are expected to be completed by H1 2025.

Furthermore, the Company obtained a building permit for the extension of Campus Leman (building C), where the main tenant has already committed to take circa 33% of the building. EPIC Suisse expects construction to begin in H1 2023, subject to preparations of the final execution plans and coordination work required with the SBB due to the adjacent rail tracks.

Outlook

The war in Ukraine, the uncertain progress of geopolitical tensions, the ongoing Covid situation and their multiple consequences, such as an energy crisis, inflation and rising interest rates, all lead to increased risks and uncertainties in the economic environment. Assuming no materially adverse impact on its operations at this point in time, EPIC Suisse reconfirms its rental income target of above CHF 60 million for the full year 2022.

For selected key figures, please refer to the appendix of this press release as well as to the Half-Year Report for further information and a glossary of alternative performance measures (on page 50 of the report).

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Contact information

Val?rie Scholtes, CFO, EPIC Suisse AG, Phone: +41 44 388 81 00, E-mail: investors@epic.ch

Reporting

The Half-Year Report 2022 is available on the Company?s website under Media & Investors ? Financial Reports:? https://ir.epic.ch/en/financial-reports/

About EPIC Suisse AG

EPIC Suisse AG is a Swiss real estate company with a high-quality property portfolio of about CHF 1.5 billion in market value. It has a sizeable development pipeline and a strong track record in sourcing, acquiring, (re)developing and actively managing commercial properties in Switzerland. EPIC?s investment properties are mainly located in Switzerland's major economic hubs, specifically the Lake Geneva Region and the Zurich Economic Area. Listed on SIX Swiss Exchange since May 2022 (SIX ticker symbol EPIC; Swiss Security Number (Valorennummer) 51613168; ISIN number CH0516131684). More information: www.epic.ch

Disclaimer

This publication may contain specific forward-looking statements, e.g. statements including terms like "believe", "assume", "expect", "forecast", "project", "may", "could", "might", "will" or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of EPIC Suisse AG and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties, readers should not rely on forward-looking statements. EPIC Suisse AG assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.

Alternative performance measures

This media release contains references to operational indicators, such as reported vacancy rate, adjusted vacancy rate and WAULT, and alternative performance measures (APM) that are not defined or specified by IFRS, including EBITDA (incl. revaluation of properties), EBITDA (excl. revaluation of properties), net operating income, return on equity (incl. revaluation effects), return on equity (excl. revaluation effects), profit (excl. revaluation effects), net loan to value (LTV) ratio. These APM should be regarded as complementary information to and not as substitutes of the Group?s consolidated financial results based on IFRS. These APM may not be comparable to similarly titled measures disclosed by other companies. For the definitions of the main operational indicators and APM used, including related abbreviations, refer to the section ?Alternative Performance Measures? on page 50 of the Company's Half-Year Report 2022.

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SELECTED KEY FIGURES - FIRST HALF-YEAR 2022 ?Result ?Units ?H1 2022 ?H1 2021 Rental income from real estate properties CHF (?000) 30?661 ? 28?323 Net operating income (NOI)1 CHF (?000) 28?271 26?943 Net gain (loss) from revaluation of properties CHF (?000) 5?278 (1'048) EBITDA (incl. revaluation of properties) CHF (?000) 24?411 23?063 EBITDA (excl. revaluation of properties) CHF (?000) 19?133 24?111 Profit (incl. revaluation effects) CHF (?000) 38?724 18?254 Profit (excl. revaluation effects)2 CHF (?000) 13?546 17?252 ?Balance sheet ? ?30 Jun 2022 ?31 Dec 2021 Total assets CHF (?000) 1'552?392 1'498?481 Equity (NAV) CHF (?000) 800?286 577?865 Equity ratio % 51.6% 38.6% Return on equity (incl. revaluation effects), annualised for H1 20223 % 11.2% 14.3% Return on equity (excl. revaluation effects), annualised for H1 20224 % 3.9% 7.0% Weighted average interest rate on mortgage-secured bank loans % 0.9% 0.9% Weighted average residual maturity of mortgage-secured bank loans Years 4.8 5.0 Net loan to value (LTV) ratio5 % 38.1% 51.4% ?Portfolio ? ?30 Jun 2022 ?31 Dec 2021 Total portfolio CHF (?000) 1?484?251 1?465?792 Investment properties in operation CHF (?000) 1?445?661 1?433?982 Investment properties under development/construction CHF (?000) 38?590 31?810 Reported vacancy rate (properties in operation) % 6.5% 7.6% Adjusted vacancy rate (properties in operation)6 % 3.4% 3.7% WAULT (weighted average unexpired lease term) Years 8.4 8.6 ?Information per share ? ?30 Jun 2022 ?31 Dec 2021 Number of shares outstanding at period end # (?000) 10?330 7?500 Net asset value (NAV) per share CHF 77.47 77.05 Share price on SIX Swiss Exchange CHF 65.10 n/a ? ?? ?H1 2022 ?H1 2021 Weighted average number of outstanding shares # (?000) 8?052 7?500 Earnings per share (incl. revaluation effects) CHF 4.81 2.43 Earnings per share (excl. revaluation effects) CHF 1.68 2.30

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1Rental income from real estate properties plus other income less direct expenses related to properties

2Profit after tax before other comprehensive income excluding revaluation of properties and derivatives and related deferred taxes

3Profit after tax before other comprehensive income divided by the average IFRS NAV. The average IFRS NAV corresponds to ? of the sum of the IFRS NAV at the beginning and at the end of the reporting period

4Profit after tax before other comprehensive income excluding revaluation of properties and derivatives and related deferred taxes divided by the average IFRS NAV. The average IFRS NAV corresponds to ? of the sum of the IFRS NAV at the beginning and at the end of the reporting period

5Ratio of net debt to the market value of total real estate properties including the right-of-use of the land

6Reported vacancy rate adjusted for absorption and strategic vacancy in certain properties in operation (i.e. Z?nti Volketswil, Biop?le Serine)

Additional features:File: Media release (PDF)End of Inside Information Language: English Company: EPIC Suisse AG Seefeldstrasse 5a 8008 Z?rich

Switzerland Phone: 044 388 81 00 E-mail: info@epic.ch Internet: www.epic.ch ISIN: CH0516131684 Valor: 51613168 Listed: SIX Swiss Exchange EQS News ID: 1430011 ? End of Announcement EQS News Service

1430011??30-Aug-2022?CET/CEST

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