UBM Development : Q3 Report 2021

Interim Report on the First Three Quarters of 2021

o v e r v i e w

Key performance indicators

Key earnings figures (in €m)
1-9/2021	1-9/2020	Change

Total Output 1		340.4		292.1		16.6%
Revenue		218.7		126.8		72.5%
EBT		46.2		51.0		-9.5%
Net profit (before non-controlling interests)	35.9	33.3	7.6%
Key asset and financial figures (in €m)
		30.9.2021		31.12.2020		Change
Total assets	1,558.1	1,372.0	13.6%
Equity		547.1		482.9		13.3%
Equity ratio		35.1%		35.2%		-0.1 PP
Net debt 2		409.5		479.1		-14.5%
Cash and cash equivalents	441.6	247.2	78.6%
Key share data and staff
		30.9.2021		30.9.2020		Change
Earnings per share (in €) 3		3.86		3.63		6.3%
Market capitalisation (in € m)	321.3	231.6	38.7%
Dividend per share (in €) 4		2.20		2.20		0.0%
Staff 5		345		335		3.0%

1. Total Output corresponds to the revenue generated by fully consolidated companies and companies consolidated at equity as well as the sale proceeds from share deals in proportion to the stake held by UBM.
2. Net debt equals current and non-current bonds and financial liabilities, excluding leasing liabilities, minus cash and cash equivalents.
3. Earnings per share after the deduction of hybrid capital interest.
4. The dividend is paid in the respective financial year, but is based on profit of the previous financial year.

Content

1. Management's introduction

1. investor relations
2. interim Management report

14 Consolidated interim Financial Statements

22 Notes to the Consolidated interim Financial Statements

32 Financial Calendar

At a glance

guidance confirmed.

Second-best Q3 in the company's history

esg rating by EcoVadis.

Awarded in Gold

sustainable earnings.

Low net debt and strong balance sheet

outlook.

More than €400m in cash for major acquisitions

i n t r o d u c t i o n

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Dear Shareholders,

Dear Stakeholders,

As you can see from the photo, we are now four on the Executive Board. With Martina Maly-Gärtner, UBM gained a top level manager this past summer who will use her proven expertise and personality to add new impulses to our hotel operations and human resources and insurance activities.

We can also report further success in the area of sustainability. The very first evaluation by the internationally recognised ESG rating agency EcoVadis led to Gold for UBM Development AG. That places us among the top two per cent of the branch (property and residential). It also underscores the determined implementation of our strategic focus on green. smart. and more. At UBM, we translate "green" primarily as wood construction. Six per cent of worldwide CO2 emissions result from the production of the concrete and steel used in building construction, the same amount caused by air, ship and rail travel combined. If we are able - at least in part - to substitute wood for concrete and steel, we will use the greatest leverage available to us as a developer to reduce the CO2 footprint of buildings during construction. At the same time, we intend to use our "smartification" to improve sustainable building operations by our buyers and tenants or, during the development phase, to form the basis for more sustainable ope- rations. We have developed a standard during the past year that will serve as a minimum for every new UBM development project.

Man is a social and not a digital being. More and more employers are coming to realise that it is just as important to offer employees a "community" as well as home office. Community can, however, only arise and grow during personal interaction - in other words, when employees return to the office. In addition to interaction, the focus on the feel-well aspect of work is increasing. Offices must present different or additional opportunities. The spectacularly announced "new office worlds" are faced with competition from the comforts people have become accustomed to at home - from the couch to the kitchen instead of a simple kitchenette. In other words: The new office world must not only be "green" and "smart" but, above all, "more".

A successful strategic transformation requires, not least, a solid financial foundation. UBM continued its profitable course during the first three quarters of 2021. With pre-tax earnings of €46.2m, we recorded the second highest nine-month results since our founding. That also applies to earnings per share, which equalled €3.86. The "corona dip" which we announced at the beginning of 2021 has since been replaced by extremely positive results for the current financial year. Low net debt of €409m and comfortable liquidity of €442m give us the manoeuvring room for further new investments, which will allow us to protect UBM's future profitability beyond the earnings contribution from our €2.2 bn pipeline. We are currently in advanced discussions for further project acquisitions. By the way, the transaction volume for the first nine months in Europe was only 4.5% below the five-year average from 2015 to 2019. And the ranking was led by the office sector, followed by residential properties.

For the final quarter of 2021, we expect continued profitable growth and confirm our guidance for pre-tax earnings of €55m to €60m.

Thomas G. Winkler	Martin Löcker	Patric Thate
CEO	COO	CFO	COO

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