CORESTATE Capital S A : Presentation – Conference Call for Analysts & Investors, 11 August 2020

H1-2020 Results

Presentation - Conference Call for Analysts & Investors, 11 August 2020

Lars Schnidrig, CEO & Dr. Kai Klinger, CMO

Disclaimer

This presentation contains forward-looking statements that are subject to various risks and uncertainties. Such statements are based on a number of assumptions, estimates, projections or

plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change.

Actual results can differ materially from those anticipated

in the forward-looking statements of CORESTATE Capital Holding S.A.

(the "Company") as a result of a variety of factors, many of which are

beyond the control of the Company, including those

set forth from time to time in the Company's press releases and reports and those set forth from time to time in the Company's analyst and investor calls and discussions. The company does not assume any obligation to update the forward-looking statements contained in this presentation.

This presentation does not constitute an offer to sell or a solicitation or offer to buy any securities of the Company, and no part of this presentation shall form the basis of or may be relied upon in connection with any offer or commitment whatsoever.

This presentation is being presented solely for information purposes and is subject to change without notice.

Glossary

€ = Euro

$ = (US)Dollar

• = percentage a = actual acc. = according adj. = adjusted aggr. = aggregated approx. = approximately c(a) = circa
  e = expected
  (F)Y = (financial) year(s) H = half year(s)
  LTM = last twelve months M = month(s)
  Q = quarter(s) k = thousand(s) m = million(s) bn = billion(s)

2

Highlights of Q2-2020

Operations Considerably Impacted by COVID-19 Pandemic

• General market uncertainty and restraints lead to slow-down in RE transactions in April and May, since June markets recover gradually with focus on lower risk-return profiles
• Minor organic RE AuM growth in Q2 of +1.2%
• Resilient performance in AM & PM and private debt business
• Operational pressure on value-add investments esp. in Serviced Apartments and Retail lead to re- valuations and smaller one-off effects in alignment capital
• Challenging environment for STAM in Paris
• Supervisory Board extended and renewed on virtual AGM with focus on independence, various profiles of competency and diversity
• Significant net debt reduction and deleveraging within next 18-24M
• Capital Market Day shifted to 19 November 2020

3

COVID-19 Accelerates Group's Strategic Re-Positioning

Enhanced Market Approach

• Consistent changes in product offerings with high focus on core/core+
• Examples of current product range: residential in B-cities, logistic, student housing, city quarters, affordable housing in A-cities, commercial with A-tenants
• Comprehensive re-brandingand new positioning scheduled for 2021
• Strengthening of equity raising in DACH region
• Group-wideefficiency program launched: simplification, productivity and digitalization

COVID-19 as Catalyst for

Shift of Investment Focus

Risk

2020 2019

Shift in pro-	Oppor-
tunistic
duct range
	Value-add
Core+
Core
	Return

4

Assets under Management on Record High

Assets under Management

• +3.4% net organic growth in RE AuM in H1-2020
• Planned decrease in non-Real Estate AuM of € 0.3bn

					€ 28.2bn
	€ 26.3bn	€ 3.5bn				€ 3.2bn non-RE
Non-Real Estate
		+9.2%		9%
Logistics/Other				14%
5%
Retail	15%
				29%
Office	28%					€ 24.9bn RE
			€ 22.8bn	23%
Micro Living	26%
Residential
26%
			25%
	FY-2019			H1-2020

Sourcing pipeline

• Deal pipeline impacted by COVID-19, but showing signs of recovery
• High percentage in advanced contractual status

in exclusivity / DD

24%

c € 4.6bn

in LOI

10%

under review / identified 66%

5

Real Estate Debt Shows Robust Performance

Through the Crisis

Uses of Mezzanine Funds at the End of H1-2020

▪ Total committed fund volume: c € 1.3bn	Residential		Retail
▪ # of financed projects: 63
71%		15%
▪ Ø size of mezzanine financing: c € 21m		63
▪ Very high demand from developers		projects	Office
▪ Fund raising burdened by changed risk appetite from investors			14%

Regional Break Down of Current Outstanding Financings

in m€

c 70% of lending volume goes to Top7 cities in Germany

306

198
144	113	93	81				88	18	17
	65	59	40

6

COVID-19 Leads to Significant Shifts in Fee Pattern

H1-2020 Revenue Split-Up

in m€ (H1-2019)

12.1 (15.5)

47.4 (40.4)

24.9 (23.6)

-0.1(0)

4.1 (10.9)

4.9 (16.4) 2.3 (14.2)

95.6 (121)

Acquisition rel. fees	▪	Slow-down followed by partial recovery
Asset & property mgt.	▪	Stable performance
Coupon particip. fee	▪	HFS shows solidity even in times of crisis
Promote/sales fee	▪	Value-add market remains nearly closed
Mezzanine loans	▪	Reduced balance sheet exposure
Alignment capital	▪	Market uncertainties impacting re-valuations
Warehousing/	▪	Disciplined approach
RE operations

Aggr. revenues	▪ Recovery of transaction market as main
driver for further upside

7

Changing Market Conditions Burdening Cost Structure

		Key P&L Figures H1-2020
		in m€
		Aggr. revenues	95.6	100%	▪ Higher OpEx ratio (>50%) driven by group's fixed
		Expenses from RE investment mgt.	-46.0
		48.1%	cost basis and weaker revenue lines esp. in
					warehousing and alignment capital
		Alignment capital expenses	-8.3	8.7%
		▪ Increase of alignment capital expenses due to
		Warehousing expenses	-3.5
		3.7%	higher efforts on COVID-19 affected co-
					investments (Serviced Apartments, Retail)
		G&A expenses	-16.5	17.3%
		▪ G&A burdened by HR related one-off items incl.
		Other income	4.5
		4.7%	first measures of efficiency program (€ 5-10m in
					FY2020)
		EBITDA	25.9	27.1%
		▪ D&A includes IFRS 16 effect and consolidation of
		D&A	-16.3
		17.1%	STAM
					▪ Adjustments on net profit level
		EBIT	9.6	10.0%
		− Management contracts € 12.6m
		Financial result	-9.2	9.6%
		− DTA € -1.7m
		Net profit	0.4	0.4%
		Adj. net profit	11.4	11.9%

8

Key Balance Sheet Figures in times

Debt Overview at the End of June 2020

in m€

	585 1)	55
Bank &
other debt	119
(incl. € 33m in
warehousing		530
debt)
Senior	296
bond

Convertible 193 bond

Total debt 1)

Cash 2)

Net debt

• Seasonal cash outflow in Q2
• Net debt reduction planned via
• • Placements out of inventories, associates/JVs and financial instruments (>€ 200m in 18-24M)
  • Cash flow from operations
• Financial leverage IFRS 16-adjusted at 4.0x 3) mid-term target range of between 2.0x and 3.0x remains in place
• Main financial instruments not affected by higher leverage (>3.5x limits only issuing of new debt instruments)
• No substantial redemptions/refinancing needs until end of 2022

1. Total financial debt adjusted for rental and leasing liabilities
2. incl. restricted cash
3. Net debt / EBITDA LTM of € 131.4m; excl. IFRS 16 adjustments, financial leverage would be at 4.2x

9

Outlook

2020: High Uncertainties in Transaction Markets, but Prudent Signals for a Revival*

• Acquisition-basedfees still with broad ranges
• • current expectation: Bottoming-out in Q2, recovery under way and improvement in Q4
• Asset & property management fees will remain steady (incl. fees from real estate debt business)
• Only minor earnings' contributions from warehousing and alignment capital
• Cost base broadly unchanged
• • € 5-10mone-off costs in 2020 from efficiency program
• Operationally clearly profitable

Well Positioned to Return Stronger from the Crisis

• Increasing pressure towards real estate investments ("lower for longer")
• Attractive product range driven by megatrends urbanization
• Corestate to refine and standardise its brand identity with focus on ESG
• Expansion of sales in the DACH region

• Under the caveat of no long-lastingsupra-regional shutdowns or other public measures with severe impacts on transaction environment

10

IR Contact and Financial Calendar 2020

Investor Contact

Financial Calendar 2020

Dr. Kai G. Klinger

Chief Markets Officer

Phone: +49 69 [e-mail]

25 February 24 March 12 May 05 June

11 August

1. November

1. November

Publication preliminary results for FY 2019

Annual financial report 2019

Publication results for Q1

Annual General Meeting

Publication results for H1

Publication results for first nine months

Capital Markets Day

Please note that these dates may be subject to change