Aves One : presentation of the Annual General Meeting 2020

ANNUAL GENERAL MEETING 2020

AVES ONE AG | 23rd OF JULY 2020

CONTENT

AGENDA

AVES ONE AG

PORTFOLIO

FINANCIAL KEY FIGURES

01

02

03

OUTLOOK

04

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	1

1 | AVES ONE AG

EXPERIENCED MANAGEMENT TEAM

TOBIAS AULICH

Management Board Member since November 2018

Managing Director in Aves One's operating units since May 2015 (joined Aves One AG in 2013)

Relevant experience includes:

• Long-termexperience in the fields of acquisitions, financing and portfolio management
• Highly experienced in scaling asset portfolios
• Previously worked for a Private Equity company in investing roles

Main responsibilities include:

Acquisition/ sourcing container

Portfolio management container

Bank financing rail/ container

JÜRGEN BAUER

Management Board

Member since

September 2016

Relevant experience includes:

• 20 years of experience in leading management and supervisory board positions with established rolling stock leasing companies .
• Active in various sector associations

Main responsibilities include:

Acquisition/ sourcing rail

Portfolio management rail

Investor relations

SVEN MEIßNER

Management Board Member since February 2018

Managing Director in Aves One's operating units since June 2013 (Founding Managing Director)

Relevant experience includes:

• Many years of experience in acquisitions and financing businesses
• Strong operational business experience with capital market knowledge
• Investment experience across various sectors such as transport and logistics, real estate and renewable energy

Main responsibilities include:

Institutional financing rail/ container

Accounting

Legal/ HR

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	2

1 | AVES ONE AG

INVESTMENT FOCUS

OWNER OF LONG-LASTING LOGISTIC ASSETS

RAIL	CONTAINER

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	3

1 | AVES ONE AG

AVES ONE IN THE CAPITAL MARKET

SUSTAINABLE GROWTH WITH A STABLE SHAREHOLDER BASIS

SHAREHOLDER STRUCTURE (STATUS 22.07.2020)

		SUPERIOR Beteiligungen GmbH /
		RSI Societas 1)
32.40%	31.91%	Versorgungswerk der
		Zahnärztekammer Berlin
		Universal-Investment-Gesellschaft
		mit beschränkter Haftung
		(handelnd für das Versorgungswerk
15.03%	20.66%	der Zahnärztekammer Nordrhein)

Freefloat 2)

COMPANY MASTER DATA

NUMBER OF SHARES	13.015.053 no-par shares
SHARE CAPITAL	EUR 13,015,053.00
ISIN	DE000A168114
MARKET SEGMENT	Regulated Market - Prime Standard
STOCK EXCHANGE	Frankfurt (Prime Standard), Hamburg
and Hanover

1. Voting rights are allocated reciprocally.
2. Other shareholders.

ABOUT AVES ONE AG

• One of the leading owners of freight cars in Europe
• Attractive portfolio of logistics assets with freight cars and containers
• Stable cash flows thanks to broad customer base and long-term rental agreements
• Continuous expansion of the freight wagon fleet with particularly strong growth in 2016 and 2018 - since then still at a high level
• In particular, rail asset portfolio is to be further expanded

FIXED ASSETS IN EUR MILLION

1.000				821	923
800
600		451	449
400
240
200
0
2015	2016	2017	2018	2019

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1 | AVES ONE AG

INVESTMENT STRATEGY

STRIVING FOR STABLE AND CONTINUOUS CASH FLOWS

LONG-LASTING		STABLE
LOGISTIC ASSETS		PERFORMANCE

Long-standing costumer relationships through experienced Asset Managers

Continuous cash flows

Risk mitigation through

diversification

of fleet structure

FIXED RENTAL

DIVERSIFIED

CONTRACTS

CUSTOMER

STRUCTURE

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1 | AVES ONE AG

ACTIVE PORTFOLIO HOLDER

OF LONG-LASTING LOGISTICS ASSETS WITH RAIL FOCUS

RAIL		CONTAINER
RAIL WAGONS	SEA CONTAINERS	SPECIAL EQUIPMENT

ASSET

NUMBER/	approx. 10,450 rail and tank	approx. 122,000 units	approx. 8,780 swap bodies
VOLUMES	wagons	approx. 179,000 TEU1)

		Central European state railways	World's largest shipping
		companies	Mainly parcel services
CUSTOMERS	and established industrial
(e.g. Maersk, Hapag Lloyd,	(e.g. DHL, Hermes)
		enterprises
		Cosco)
USEFUL LIFE		Up to 45 years	Up to 15 years in maritime	12-20 years
	transport
Status: 31.03.2020.
1) TEU= Twenty-foot equivalent unit.

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1 | AVES ONE AG

PARTNER NETWORK (SELECTED)

Excellent network of partners exemplary

Asset Manager		Financing Partners		Asset Users

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	7

1 | AVES ONE AG

HIGHLIGHTS 2019

AVES ONE ON COURSE FOR GROWTH

Fixed assets

+ 21%

+ 27%

- 5%

+ 14%

growth

2018 - 2019

Utilisation1)

95%

99%

96%

95%

Rail

Swap Bodies

Container

Group

•	Continuous expansion of the	•	Acquisition of CAI as new
	portfolio		asset manager in the swap
•	Diversification of the		body sector
	portfolio through	•	Further expansion of the
	acquisitions of various types		portfolio through new
	of wagons		acquisitions
•	Purchase of 102 tank cars	•	Purchase of 2,327 swap
	and 1,210 freight wagons		bodies with an investment
	with an investment volume		volume of approx. EUR 18 mn
	of approx. EUR 111 mn	• 28% used swap bodies and
•	69% used wagons and 31%		72% new swap bodies with
	new wagons with an Ø-age		an Ø-age of 1.9 years
	of 7.3 years

• By the 1st half of 2019, Textainer and Seaco were acquired as new asset managers of two small container portfolios

• Implementation of the capital market instrument bond as a financing tool to optimize refinancing and reduce financing costs
• Sharpening of portfolio structure by selling the storage park and the logistics property

1) Status: 31.12.2019.

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	8

CONTENT

AGENDA

AVES ONE AG

PORTFOLIO

FINANCIAL KEY FIGURES

01

02

03

OUTLOOK

04

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	9

2 | PORTFOLIO

AVES ONE RAIL AND TANK WAGON FLEET

VERY WELL DIVERSIFIED PORTFOLIO

FREIGHT WAGON AND TANK CAR FLEET BY TYPE

[IN % WEIGHTED BY DAILY RENT]1)
Hopper	Other Wagon
	0.5%
	16.0%
Fleet Wagon	Coil Car
13.2%	12.6%
Tank Car	Intermodal
	Wagon
26.5%	26.2%

	Box Wagon			Sliding-Wall Wagon
		3.1%
			2.0%

DISTRIBUTION OF TRANSPORTED GOODS IN DACH + FR IN

	2017
Intermodal	2%
Other	3% 3%
Steel	4%
4%
Ores	34%
Crude Oil	6%
Chemicals	8%
Automotive
Coal	8%
Timber

Agriculture	11%	17%
Building materials

"SCI forecasts the greatest growth for intermodal transport with a

CAGR of 3.1% p.a. until 2022"

The German market is becoming increasingly important

• Aves One generates 88% of its revenues in the DACH region (95% including France)
• Aves One invests in the European top rail markets and segments with attractive growth prospects

1) Daily rental analysis as of the specific date of 31.03.2020.

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	10

2 | PORTFOLIO

AVES ONE CONTAINER PORTFOLIO

INCLUDES THE MOST IMPORTANT CONTAINER TYPES

SHARE OF CONTAINERS AND SWAP BODIES IN THE OVERALL PORTFOLIO

[IN % WEIGHTED BY DAILY RENT]1)

40 Feet High Cube
Total approx.
122,000 units or	41%

179,000 TEU

3%

40 Feet Standard

20 Feet Standard

29%

Swap Bodies (8,780 units)

27%

Revenue in EUR mn

12			10.2
	6.9
8	4.6
4
0
	2017	2018	2019

1) Daily rental analysis as of the specific date of 31.03.2020.

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	11

2 | PORTFOLIO

POSITIVE MARKET OUTLOOK FOR AVES ONE

THE RAIL RENTAL MARKET IS GROWING DISPROPORTIONATELY

RAIL RENTAL COMPANIES ARE BECOMING INCREASINGLY IMPORTANT - EUROPE1) FOLLOWS THE INTERNATIONAL TREND

		Rail rental companies
		Other (incl. national railway companies, private operators...)
			Forecast
				+35%	+22%
			198,000	266,400	324,000
			24%	45%
			36%
627,000	2008	2018	2025
76%
473,600
			64%		396,000
					55%
			Approx. 825,000 wagons	Approx. 740,000 wagons	Approx. 720,000 wagons

• The liberalisation of the railway market changed the market about 20 years ago
• Rail companies focus in transport - Rail rental companies provide modern wagon equipment
• The share of the total wagon fleet of rail rental companies is expected to increase to around 45% by 2025

RAIL RENTAL COMPANIES RENEW OLD FLEETS

Share of new buildings by owner (in %)

27%

42%

58%

2008

2018

73%

FORECAST OF REVENUE DEVELOPMENT OF RAIL RENTAL

COMPANIES IN EUR BN

Forecast

1.4 1.5

1.0

Rail rental companies

Other (incl. national railway companies, private operators...

2010

2013

2016

2019

2022

2025

Source: SCI assessment before Corona pandemic.

1) Focus on Western European rail rental companies.

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	12

2 | PORTFOLIO

SWAP BODY MARKET OVERVIEW

E-COMMERCE REVENUE IN GERMANY (IN EUR BN)

CAGR (% p.a.): 11.7%

59.2

										53.3
									48.9
							44.2
					39.9
				35.6
			32.0
		28.0
24.4
2011	2012	2013	2014	2015	2016	2017	2018	2019
	NUMBER OF SHIPMENTS IN GERMANY (IN BN DELIVERIES)
									Forecast
		CAGR (% p.a.): 5.0%						CAGR: 4.2%

2.5 2.6 2.7 2.8 3.0 3.2 3.4 3.5 3.7 3.7 3.9 4.1 4.3 4.5

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

COMMENTARY

• Continued growth of e-commerce and therewith shipment of goods to customers is the main driver for demand for swap bodies
• In the last 10 years, online sales increased threefold reaching approximately EUR 59 bn in 2019
• Shipments are expected to increase to 4.5 bn deliveries in Germany in 2024

SHARE OF CEP MARKET IN GERMANY1)

Aves One customer

57%

30%

7%3%1%

DHL		Hermes		dpd	UPS	GLS

SHARE OF CEP FIRMS USED BY THE TOP 500 ONLINE SHOPS IN

GERMAY1)

81%
		25%	21%	19%	17%
	DHL	Click & Collect	Hermes		dpd	UPS

1) Status 2018, weighted by net revenue. Online-shops can use more than one CEP firm. Source: KEP-Study 2019, Statista, BIEK.

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2 | PORTFOLIO

CONTAINER MARKET OVERVIEW

SIZE OF CONTAINER FLEET (IN MN TEU)1)		GLOBAL CONTAINER LEASING MARKET

Prognose

60

60%

CAGR

(% p.a.)

(in % of container leasing market in TEU)

Other

50

49

42

40

30

26

20

10

0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020E

2021E

2022E

2023E

Shipping liners Container rental

07-1919-23

50% 4.0% 3.6%

40%

5.5% 4.5%

30%

20%

2.6% 2.6%

10%

0%

Container rental (%)

			2% 6%
			3%
			4%		28%
			6%
			7%
			11%		18%
				16%

Asset Manager of Aves One

COMMENTARY

• Concentrated market: Top 10 lessors with a market share of over 90%.
• Outsourcing trend: The market share of rental companies is growing continuously and is currently over 50%.
• Demand for containers: Historically, around 3.5 million new TEUs worth between USD 7 and 9 billion have been ordered each year.

1. Fleet by container rental companies, 20-feet-equivalent. Source: Drewry Report, World Cargo News, Harrison Consulting.

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	14

CONTENT

AGENDA

AVES ONE AG

PORTFOLIO

FINANCIAL KEY FIGURES

01

02

03

OUTLOOK

04

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	15

3 | FINANCIAL KEY FIGURES

SELECTED GROUP KEY FIGURES

HIGHLIGHT PROFITABLE GROWTH

EUR MN	2017A	2018A	2019A	3M 2020
Revenue1)	53.4	77.7	116.8	30.3
EBITDA	29.1	52.2	84.6	21.7
EBITDA-margin	54%	67%	72%	72%
Adjusted EBT2)	-8.5	2.8	11.1	1.8
Adjusted EBT-margin	-16%	4%	10%	+6%

REVENUE / EBITDA / EBITDA-MARGIN			FIXED ASSETS IN EUR MN
140			67%	72%	80%		1.000		923
								921
120
55%					60%		800
100
80							40%		600
60								449
40									400
						20%
20									200
0							0%		0
	FY 2017	FY 2018	FY 2019
			Revenue		EBITDA		EBITDA margin			FY 2017 FY 2018	FY 2019

1. In 3M 2020 revenues adjusted for non-operating proceeds from the sale of the Self Storage Park amounting to EUR 3.4 mn.
2. Adjusted for currency effects and for capital measures and off-hire adjustments in FY17.
3. EBITDA-marginat segment level before holding company allocation.

EBITDA-MARGIN (%)3)

100%		84%
	74%	76% 77%
80%	74%

62%

60%

40%

20%

0%

FY 2017

FY 2018

FY 2019

Container Rail

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020

16

3 | FINANCIAL KEY FIGURES

FOCUS ON THE RAIL SEGMENT

in EUR mn	Development of the total portfolio by asset class
1.000			Container		Swap Bodies		Rail
	Invest Rail in the

800 first half of 2020

			EUR 65.3 mn													652	71%
600
400
																		48	5%
200																		223	24%
0
2013	2014	2015	2016	2017	2018	2019
Revenue of asset classes in 2019							EBITDA before holding costs of asset classes in 2019

in EUR	25%	9%	66%	100%
mn
140				116 1)
120			76
100
80
60		10
40
29
20
0
	Container	Swap Bodies	Rail	Revenue 2019

in EUR	24%	10%	66%	100%
mn
100				1)
		59	89
80
60
40		8
	21
20
0
	Container	Swap Bodies	Rail	EBITDA 2019

1) Excluding holding activities and consolidations.

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	17

CONTENT

AGENDA

AVES ONE AG

PORTFOLIO

FINANCIAL KEY FIGURES

01

02

03

OUTLOOK

04

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	18

4 | OUTLOOK

OUTLOOK ON FINANCIAL DEVELOPMENT

FIXED ASSETS IN EUR MN

REVENUE IN EUR MN

1.000	923	No actual
forecast
800	821

140

120

100

117 >117

600

451 449

400

240

200

0

2015 2016 2017 2018 2019 2020 Forecast

ADJUSTED EBITDA IN EUR MN1)

100

85 >85

80

60	55

4029

2010

7

0

2015 2016 2017 2018 2019 2020 Forecast

78

80

6053

4029

22

20

0
2015	2016	2017	2018	219	2020
						Forecast
		OVERVIEW OF TARGETS IN EUR MN
			2019		Forecast 2020
Fixed Assets		922.6		No actual forecast
Revenue		116.8		> 117.0
EBITDA		84.6		> 85.0

1) EBITDA adjusted for currency effects in 2015 & 2016; since 2017 currency effects are shown in interest expense, in 2018 a one-time provision for a lawsuit was not considered.

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	19

4 | OUTLOOK

STRATEGIC OUTLOOK

PORTFOLIO EXPANSION AND OPTIMISATION

Acquisition and organic growth

Optimisation of the financing structure to increase profitability

	Active portfolio
	management with
Strengthening and	focus on stable
expanding our market	operational cash flows
position as an active
asset owner









AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	20

THANK YOU FOR YOUR ATTENTION!

AVES ONE AG

Große Elbstraße 61

22767 Hamburg

Germany

Phone[phone] Fax [phone] [e-mail]

www.avesone.com

QUESTIONS

LIST OF QUESTIONS

1. Why can Aves One AG continue to grow especially in the rail sector, although the Corona pandemic leads to declining revenues in other sectors?

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	22

QUESTIONS

LIST OF QUESTIONS

2. What opportunities and challenges currently exist in the container sector?

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	23

QUESTIONS

ANSWER TO QUESTION 2

Container handling in China is recovering [in thousand TEUs]

25.000

22.500

20.000

17.500

15.000

12.500

10.000

7.500

5.000

2.500

0

Feb 2020 - May 2020: Container turnover has increased by approx. 48.5% in this period and is now back at the level of 2019.

May-10

May-11

May-12

May-13

May-14

May-15

May-16

May-17

May-18

May-19

May-20

Source: Harrison Consulting, Container Trade Watch June 2020.

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	24

QUESTIONS

ANSWER TO QUESTION 2

Container life cycle

cycle of about 15 years at sea

Initial	• Long-term rental agreement with a rental period of up to eight years
lease	• Lease extension up to 3 years

Master

Life

lease

• Option for lessees to deliver containers under pre-defined conditions

Sale	• End of use in maritime transport and sale to the secondary market

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	25

QUESTIONS

LIST OF QUESTIONS

3. Why did Aves One AG decide to issue bonds? What is the use of the proceeds of the bonds? Will more bonds be issued in the future?

AVES ONE AG | ANNUAL GENERAL MEETING| HAMBURG, 23rd OF JULY 2020	26

QUESTIONS

LIST OF QUESTIONS

4. How has the financing mix of Aves One AG developed since 2016?

CAGR: 27.5%

EUR 972.4 mn1)

3.9%

23.7%

Development nominal interest rate2)

6,0%

5.2%

5,0%

Saving of 170 bps

			+1.4%
EUR 468.9 mn1)
	1.9%
22.3%			56.9%
			+19.2%
37.7%
38.1%		-22.6%	15.5%

4,0%

3,0%

2,0%

1,0%

0,0%

3.5%

31.12.2016

31.12.2019

Direct investments

Banks

Institutional investors

Bonds and other lending activities

31.12.201631.12.2019

1. Financial liabilities at the respective reporting date of the fiscal year.
2. The nominal interest rate refers to all interest expenses and other financing costs incurred in raising funds and not capitalised as acquisition costs under the effective interest method on the loans raised.

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27