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PRELIOS: 2014-2016
BUSINESS PLAN PRESENTATION BUSINESS PLAN PRESENTATION
Milan 12
th
June 2014 Milan, 12
th
June 2014
www.prelios.com
PRELIOS PRELIOS
GROUP
Sergio Iasi CEO
2014 2016 Business Plan
3
Business Model (1/2)
PRELIOS GROUP
Prelios Group is a leading European asset management group providing a full range of real estate
and financial services
( )
and financial services.
The Group has been listed on the Italian Stock Exchange since 2002.
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.
Prelios Group comprises an extremely well-qualified structure which includes about 800 employees in Italy and Prelios Group comprises an extremely well qualified structure which includes about 800 employees in Italy and
abroad, with significant professional skills and a track record of excellence in the international arena.
BUSINESS MODEL PRELIOS
Management Platform
Investments
NIC
361 mln Euro
Italy Real
Estate
232 mln Euro
Real Estate
Abroad
118 mln Euro
Italy NPLs
11 mln Euro
4
Business Model (2/2)
PRELIOS GROUP
Over 20 years of experience in advanced real estate and financial services for third parties portfolios
High standards of quality and reliability confirmed by certifications positive evaluations by rating
( )
High standards of quality and reliability, confirmed by certifications, positive evaluations by rating
agencies and international awards
Prelios SGR*: manages real estate funds mainly with 25 funds and nearly 3.7 bln Euro AUM and ranks among the
leading real estate asset management companies in Italy leading real estate asset management companies in Italy
Prelios Credit Servicing is a financial intermediary (compliant with art. 107 of the Consolidated Banking Act) and
specialized in managing and recovering non performing loans (NPL) with 8.5 bln NPL** under management
Prelios Integrated Services provides a complete range of services encompassing the whole life cycle of real estate
assets
Prelios Integra is one of the leading Italian operators providing integrated services for property management and
project development p j p
Prelios Agency provides real estate agency services to national and international clients
Prelios Valuations is one of the leading Italian independent operators in real estate asset and property valuation
Prelios Deutschland is one of the leading platforms providing real estate asset services in the German domestic Prelios Deutschland is one of the leading platforms providing real estate asset services in the German domestic
market. The company provides asset & property management, project management, brokerage & agency services
in the high end segment of Shopping Centers and Highstreet Retail
* The acronym stands for Societ di Gestione del Risparmio, the regulated legal entity according to which
an Italian management company must be incorporated
** Gross book value at 31/12/13
5
PRELIOS GROUP
Ownership structure p
Below a glance at the current shareholder structure of the Company after the capital increase
and the conversion of Prelios convertible debenture loan that took place on 9 April 2014: and the conversion of Prelios convertible debenture loan that took place on 9 April 2014:
ECONOMIC SHARE CAPITAL SHARE CAPITAL WITH VOTING RIGHTS
PIRELLI & C.
Economic share capital
PIRELLI & C.
Share capital with voting rights
PIRELLI & C.
33,6%
23,3%
UNICREDIT
GRUPPO
UNICREDIT
GRUPPO
CAMFIN/LAURO
SESSANTUNO
BANCA MONTE
DEI PASCHI DI SIENA
BANCA POPOLARE DI
MILANO
GRUPPO CAMFIN/LAURO
29,2%
33,1%
9,9%
16,4%
GRUPPO
CAMFIN/LAURO
SESSANTUNO
INTESA SANPAOLO
INTESA SANPAOLO
BANCA POPOLARE DI
MILANO
BANCA MONTE DEI
PASCHI DI SIENA
GRUPPO CAMFIN/LAURO
SESSANTUNO
UNICREDIT
INTESA SANPAOLO
MARKET
3,4%
5,6%
8 1%
6,6%
5,7%
4,6%
4,0%
2,4% BANCA POPOLARE
DI MILANO
PASCHI DI SIENA
FENICE
MARKET
MARKET
8,1%
14,0%
6
PRELIOS GROUP
Top Management team
Giorgio Luca
Bruno
Prelios S.p.A.
Chairman
Massimo Caputi
Prelios S.p.A.
Deputy Chairman
with the mandate of
Sergio Iasi
Prelios S.p.A.
CEO
Marco Andreasi
Prelios S.p.A.
CFO
p g
with the mandate of
Business
Development
He joined Prelios S.p.A. in
February 2014
F 2011 t 2014 h th Chi f
He joined Prelios in May 2013
From 2000 to 2007 he was CEO of FIMIT
SGR
He joined Prelios in December
2012
F 2008 t 2012 h CEO f Sil
He joined Prelios in May 2013
Currently, he is Chairman and Chief Executive
Officer of Pirelli & C. Ambiente S.p.A., a
From 2011 to 2014 he was the Chief
Financial Officer of Maire Tecnimont
S.p.A., a group operating in the
engineering, building, technology and
energy sector.
From 2007 to 2011 he was the Chief
Financial Officer of the energy group
Edi S A
SGR
From 2008 to 2011 he was CEO of FIMIT
SGR and business partner, developing a
6 bln AuM platform. In 2011 he managed
the merger by incorporation of First
Atlantic Real Estate (FARE SGR), a
subsidiary of De Agostini Group, into
FIMIT SGR, from which was created IDeA
From 2008 to 2012 he was CEO of Silvano
Toti Holding S.p.A. (a Rome-based real
estate and financial group); he was Deputy
Chairman of Serenissima SGR and
Chairman of the Board of Directors of Harvip
Investimenti S.p.A.
From 2006 to 2009 he was CEO of
Sansedoni S p A
subsidiary 100% controlled by Pirelli & C. S.p.A.
He is a Member of the Board of Directors of:
I.D.E.A. GRANDA S.CON. S.r.l., a company
operating in the waste management industry,
GWM Renewable Energy II S.p.A. and the
participated company Greentech Energy
Systems A/S,
Edison S.p.A..
From 2002 to 2007 he worked for Techint
S.p.A., as Central Director of
Administration, Finance and Control, and,
subsequently, as Central Director of
Administration, Finance and Control and
General Affairs.
F 2000 t 2002 CFO t Pi lli C i
,
FIMIT SGR, the first Italian investment
company with 10 bln AUM, in which he
was Director with mandate on Italy
development
From 2002 to 2005 he was CEO of
Sviluppo Italia S.p.A.,
From 1998 to 2002 he was CEO of Grandi
Sansedoni S.p.A
From 2003 to 2006 he was CEO of Italia
Turismo S.p.A.,
In 2002 he was appointed Deputy General
Manager at RAI Radio Televisione Italiana,
with full operating and financial powers
From 2000 to 2002 he was Managing
Director of the Europ@web and L Capital
He is a Member of Board of the Foundation
Centro Intermazionale della Fotonica per
lEnergia (CIFE)
He is Chairman and Chief Executive Officer of
Pirelli & C. Eco Technology S.p.A., and Chairman
of Pirelli & C. Eco Technology Romania S.r.l., a
subsidiary controlled by the Italian parent
From 2000 to 2002 CFO at Pirelli Cavi e
Sistemi Energia S.p.A.
From 1999 to 2000 Head of
Administration, Finance and Control at
Pirelli Cavi e Sistemi Italia
From 1994 to 1999 he worked for the
multinational company Kraft Jacobs
Suchard from 1988 to 1994 he worked
Stazioni S.p.A. and during his leadership
he managed the privatization of the
company
From 1985 to 1997 he worked at Proger
S.p.A., the family business
He was a Member of the Board of
Directors of the following companies:
Director of the Europ@web and L Capital
funds of the Arnault/LVMH Group, based in
Paris
From 1996 to 2002 he was Business
Development Manager and, subsequently,
Senior Vice President International and CEO
Assistant at the Canal Plus Group in Paris,
with responsibility for the European and US
company; he is also Member of the Board of
Yanzhou Hixih Ecotech Environment Co. Ltd,
which is controlled by the Italian parent company
as well.
He is Chairman of Pirelli PZERO,
He is also Director of Marco Tronchetti Provera &
C. S.p.A. and of MTP Partecipazioni S.p.A..
Suchard,from 1988 to 1994 he worked
for Andersen Consulting S.A.S, from
1987 to 1988 he worked in Costruzioni
Aereonautiche Giovanni Agusta S.p.A..
From 1987 to 2004 he covered the role of
Professor of IT Systems Universit
Cattolica del Sacro Cuore of Milan.
g p
Banca Monte dei Paschi di Siena S.p.A.,
Banca Antonveneta S.p.A.; MPS Leasing
& Factoring S.p.A. (Deputy Chairman);
MPS Capital Service Banca per le
Imprese; Banca Agricola Mantovana
(Deputy Chairman); Paschi Gestione
Imprese Immobiliari; Libera Universit
with responsibility for the European and US
markets.
From 1994 to 1996, he was a Principal at
Booz Allen Hamilton, from 1989 to 1994 he
was Senior Consultant at Project Group
From 1986 to 1988 he was Deputy Manager
of Industrial Relations for the
Mechanical/Engineering Industries at
In 2002 he joined the Board of Directors of
Camfin S.p.A., where he was Chief Executive
Officer from 2008 to 2009.
In 2002 he was appointed Chief Executive Officer
of CAM Petroli, a Joint-Venture equally
participated by Camfin S.p.A. and ENI Group; he
held the office until December 2007.
p ;
Internazionale degli Studi Sociali LUISS
Guido Carli; ACEA S.p.A..
Mechanical/Engineering Industries at
Assolombarda, Milan.
In 1990 he joined Camfin Group as Chief
Financial Officer and in 1998 he was appointed
General Manager of Camfin S.p.A
In 1986 he began working in IFIL Group, in the
M&A department. From there he moved to FIAT
Group, where he worked as Controller of the sub-
holding company PRIME S.p.A..
7
PRELIOS GROUP
2012-2013 Reorganization and Foundation for Relaunch (1/2) g ( )
2012
Consolidated revenues: 85.9 mln (*)
Consolidated EBIT: - 18.9 mln (*)
Consolidated Net Result: 241 7 mln (*) Consolidated Net Result: - 241.7 mln (*)
MAIN EVENTS
Selection of the industrial partner (Feidos 11)
Release of the Companys restructuring plan ex art. 67 reorganization plan ( cd Project Fenice)
Negotiation of governance agreements
* Numbers are not including Residential in Germany (discontinued operations IFRS 5).
REORGANIZATION AND TRANSITION FROM CAPTIVE TO NON-CAPTIVE
8
PRELIOS GROUP
2012-2013 Reorganization and Foundation for Relaunch (2/2)
2013
Consolidated revenues: 73.1 mln (*)
g ( )
( )
Consolidated EBIT: - 28.1 mln (*)
Consolidated net result: - 332.8 mln (*)
MAIN EVENTS
Entry of new qualified managers in the
Completion of the Group recapitalization process and debt
y q g
operating companies
Detailed due diligence of real estate asset portfolios:
NIC segmentation and adoption of different management
strategies for the respective identified segments
p p p p
rescheduling
Strengthening the business development function at the
holding company and operating companies level
strategies for the respective identified segments
Implementation of new operating systems relating to the
periodical assessment of key resources
Focus on Information and Communication Technology
Repositioning of the operating companies in three key
segments: asset management, property and project
services, NPLs management
Implementation of the new organization structure Focus on Information and Communication Technology,
as a key to support the new comptitive positioning of Prelios
Implementation of the new organization structure
envisaging a leaner holding company and more autonomy
for the Strategic Business Units (SBUs)
*
Numbers are not including Residential in Germany (discontinued operations IFRS 5).
REORGANIZATION AND TRANSITION FROM CAPTIVE TO NON-CAPTIVE
9
PRELIOS GROUP
Main Results achieved in 2013
Contracts achieved for the establishment of two real estate funds managed by Prelios SGR
Fund PAI and Fund Cassa dei Commercialisti
F k t b t P li I t t d S i d T l
Management
platform
Framework agreement between Prelios Integrated Services and Telecom
Preliminary agreement with Enel for the mapping of instrumental real estate assets
Revamped pipeline of new projects under development (over 180)
platform
development
Reduction of fixed
92 units (managers and white collars) vs 2012 (from 878 units in 2012 to 786 units in 2013)
Reduction of fixed
costs by about
14 mln
vs. 2012
- 92 units (managers and white collars) vs. 2012 (from 878 units in 2012 to 786 units in 2013)
Rationalization of resources both at holding company level and at operating companies level
Further reduction of personnel by 300 units planned in mid 2014 through the completion of the
disposal of German residential service platform
Reduction of non
consolidated debt by
0.5 bln (vs. 1.5 bln at
the end of 2012)
Disposal of DGAG residential asset portfolio
Gradual disposal of Highstreet retail asset portfolio in Germany
Transfers of minor residential asset portfolios in Germany (Sig Re)
the end of 2012)
Recovery of
PRECS
management
Repurchase of 20% of PRECS held by Calyon
Granted 19 new NPLs management mandates
management
autonomy
Reduced Exposure
t t i k
Granted 19 new NPLs management mandates
Consistent reduction of Group exposure to tax risks
(settlement of litigations related to Tamerice and
to tax risk
fiscal codes issues)
10
PRELIOS GROUP
Investments Overview
The Investment Portfolio Management SBU is devoted to monitoring, management and valorisation/disposal of
Prelios Investments (Real Estate Vehicles (SPV), Funds and NPLs in Italy, Germany and Poland).
NIC* 361 millions
Prelios Investments (Real Estate Vehicles (SPV), Funds and NPLs in Italy, Germany and Poland).
NIC* 361 millions
Real Estate
Italy
Real
Estate
Other
Npl
Italy
232
millions
Other
countries
118
millions
11
millions
About 150
vehicles/investment structures
*NICatMarch31st
11
PRELIOS GROUP
Net Invested Capital break-down p
ITALY OTHER COUNTRIES
Funds + Holdings 177,6
Vehicles (SPV) + Holdings 54,9
V hi l D l t 41 8
Germany 112,1
DGAG - Excluded Assets 22,1
DGAG - Residential 27,2
Highstreet 41 0
Vehicles - Development 41,8
Vehicles - Portfolio 12,8
Vehicles with Significant Equity Commitments 6,5
Other* -6,3
Highstreet 41,0
Mistral 16,2
Prelios Minorities/Altro 5,7
P l d 5 8
NPL 11,4
NIC Total 243,8
Poland 5,8
NIC Total 118,0
Italy
Other Countries
Vehicles(SPV)+
Holdings
22% 22%
NPL
5%
Poland 5%
Funds +
Holdings
73%
Germany 95%
*NICincludestheguaranteedepositrelatedtoTamericefiscaltransaction(11Mln)
12
PRELIOS GROUP 2014-2016 PLAN
Highlights (1/2)
The pure player model focused on two business lines is confirmed
Asset management (Prelios SGR and Prelios Credit Servicing)
Real estate services (Integrated services)
Pure
pla er model
g g ( )
Focus on larger accounts, long-term contracts and non-captive clients
Play a leading role to aggregate subjects in asset management and services
Start the process to create an European asset management platform
player model
Focus on:
Geographical
presence
Focus on:
Italy
Germany (primarily shopping centers and use that country presence as a platform for
opportunistic development in the area of Northern Europe)
Stand alone
development
Revenue growth on a Stand Alone basis. Actions aimed at developing management platform
revenues through the implementation of projects encompassed in the business development pipeline
and also by starting stable synergies with Shareholders/Lenders.
The Plan does not reflect the option of aggregation with Fortress operating structures. The
management assumes that, from 2015, it will be possible to start further aggregation options
Margin
Cost Efficiency actions aimed at further rationalizing the cost structure of the Group (after the
already significant savings in 2013) without affecting the development and retention of human
excellences primarily through:
improvement
actions
excellences primarily through:
streamlining the cost of staff
further rationalization of the costs of consultancy and head quarter
Focus on higher margin clients and services mix
COMPANY MARKET LEADERSHIP CONSOLIDATION AND NEW POSITIONING AS A PURE MANAGEMENT COMPANY
13
PRELIOS GROUP 2014-2016 PLAN
Highlights (2/2)
Investment
Disposal strategy confirmed, focus on maintaining the portfolio value
d t ti th i t t ith b
g g ( )
Investment
portfolio
and protecting the investments, either by
a) transfer in 2014-2016 period
b) through possible deconsolidation transactions
Strengthening
of relations with
banking partners
Strengthen the relationships with banking partners with the goal to
make Prelios become the reference player in the Real Estate and
NPL sector in the next two years
Financial
Improvements
Actions to balance the financial straits and promote the correlation
between cash inflows and cash out, trough optimizations and
postponement beyond the term of the Plan
COMPANY MARKET LEADERSHIP CONSOLIDATION AND NEW POSITIONING AS
A PURE MANAGEMENT COMPANY
PRELIOS
GROUP
Marco Andreasi CFO
2014 2016 Business Plan
3
PRELIOS GROUP

RISTRUCTURING
PROCESS
Delay of more than
nine months in the
completion
of the Group
restructuring plan
ADVERSE MARKET
ENVIRONMENT
INTEGRATED
SERVICES
AGENCY
REAL ESTATE
ASSETS
PRECS GERMANY
Persistent downturn of
the market that does not
allow recovery of the
investment value
Delays in
attracting new
business plan
provided by
Fenice Plan
Overestimation of
transactions in 2013 and
of the potential of Prelios
network to attracting non-
captive business
(especially in the second
half of 2013)


Solving management
mandates securitization
vehicles of Crdit
Agricole

Mandatory" sale
of the service platform
together with the sale
of the residential porfolio
of DGAG
Need to realign the
values of some more
difficult assets than
expected in the
Fenice Plan

New 2014-2016 Business Plan vs Fenice Plan
4
PRELIOS GROUP 2014-2016 PLAN
Highlights New Positioning as a Pure Management Company (1/2)
The pure player model focused on two business lines is confirmed
Asset management (Prelios SGR and Prelios Credit Servicing)
Real estate services (Integrated services)
Focus on larger accounts, long-term contracts and non-captive clients
Play a leading role to aggregate subjects in asset management and services
Start the process to create an European asset management platform
Pure
player model
Geographical
presence
Focus on:
Italy
Germany (primarily shopping centers and use that country presence
as a platform for opportunistic development in the area of Northern Europe)
Stand alone
development
Revenue growth on a Stand Alone basis. Actions aimed at developing management platform
revenues through the implementation of projects encompassed in the business development
pipeline and also by starting stable synergies with Shareholders/Lenders.
The Plan does not reflect the option of aggregation with Fortress operating structures.
The management assumes that, from 2015, it will be possible
to start further aggregation options
Margin
Improvement
Actions
Cost Efficiency actions aimed at further rationalizing the cost structure of the Group (after
the already significant savings in 2013) without affecting the development and retention of human
excellences primarily through:
- further rationalization of the costs of consultancy and head quarter
- streamlining the cost of staff
Focus on Higher Margin Clients and Services Mix
5
PRELIOS GROUP 2014-2016 PLAN

Confirmed disposal strategy, protecting the value of portfolio
investments, either by
transfer in 2014-2016 time span
through possible deconsolidation transactions
Investment
portfolio
Strengthening
of relations with
banking partners
Strengthen the relationships with banking partners with the
goal to make Prelios become the reference player in the Real
Estate and NPL sector in the next two years
Financial
Improvements
Actions to balance the financial straits and promote the
correlation between cash inflows and cash out, trough
optimizations and postponement beyond the term of the Plan
Highlights New Positioning as a Pure Management Company (2/2)
6
EBIT Management Platform: CAGR (2013-2016) + 40%
(2013 Value: 6.3 mln Euro
NET FINANCIAL POSITION: in 2016 < 200 mln Euro
(2013 Value: 388.4 mln Euro)
1) Il valore 2013 non include lesercizio del Convertendo (pari a 235,9 milioni di euro al 31/12/2013) avvenuto in data 14 Aprile 2014
PRELIOS GROUP
2014-2016 Targets
7
PRELIOS GROUP

REVENUES GROWTH ON A
STAND ALONE BASIS
FOCUS ON HIGHER
MARGIN SERVICES
AND CLIENTS MIX
CAGR EBIT / CAGR
REVENUES ~ 2.5x
EBIT 2013
6.3 mln Euro
CAGR ~ 40%
EBIT MANAGMENT PLATFORM: CAGR (2013-2016)
How to get the 2014-2016 Targets
8
INVESTMENT CASH FLOW: CASH
GENERATION AND NIC PROTECTION
NET FINANCIAL POSITION 2016: < 200 mln Euro
MANAGEMENT PLATF. CASH FLOW:
STABLE GROWTH
CASH IN / CASH OUT BALANCE
NFP 2013
388 mln Euro
NFP 2016
< 200 mln Euro
EXECUTION OF CONVERTIBLE
ALREADY DONE
PRELIOS GROUP
How to get the 2014-2016 Targets
PRELIOS: 2014-2016
BUSINESS PLAN PRESENTATION
www.prelios.com
Milan, 12
th
June 2014
www.prelios.com