Group business performance

Mobimo’s profit increased by 44.3% year on year in the 2021 financial year. Net rental income was up 7.1% year on year at CHF 112.5 million (prior year: CHF 105.1 million), due in part to lower rent waivers granted in connection with the coronavirus crisis. Profit on development projects and sale of trading properties was significantly higher than in the previous year at CHF 58.5 million (prior year: CHF 36.8 million). Net income from revaluation of CHF 53.3 million had a positive impact on the result.

Financial performance

› Net rental income was up year on year at CHF 112.5 million (prior year: CHF 105.1 million) thanks to successful letting activity and a less pronounced impact from the coronavirus crisis. › The vacancy rate was reduced to 4.8% as at 31 December 2021 (prior year: 5.5%) and is therefore within the target range. › Profit on development projects and sale of trading properties was pleasingly high in the year under review at CHF 58.5 million, significantly exceeding the prior-year figure of

CHF 36.8 million. The main reasons for the improvement were the sale of the Cosmos project in Dübendorf in the first half of 2021 and the Grace condominium project in Meggen, where all but one of the apartments had been sold as at 31 December 2021. › Net income from revaluation was CHF 53.3 million in the year under review (prior year: CHF 34.3 million) and was driven primarily by the ongoing yield compression for residential properties. Net income of CHF 8.3 million from the revaluation of developments for Mobimo’s own portfolio is primarily attributable to the progress made with the Zurich, Manegg and Zurich, Tiergarten projects.

The profit attributable to the shareholders of Mobimo in the 2021 financial year was CHF 139.4 million (prior year: CHF 96.6 million). Excluding revaluation, the profit was CHF 96.3 million (prior year: CHF 69.7 million). The company recorded EBIT of CHF 194.7 million (prior year: CHF 145.8 million), or CHF 141.3 million excluding revaluation (prior year: CHF 111.5 million). This resulted in earnings per share of CHF 21.13 (prior year: CHF 14.64), or CHF 14.60 excluding revaluation (prior year: CHF 10.56).

Rental business and transaction market In addition to successful letting activity, the reduction in the size of the support package provided to tenants affected by the measures imposed by the Swiss authorities to combat coronavirus (CHF 1.0 million compared with CHF 6.5 million in the previous year) led to an increase of 7.9% in rental income, from CHF 122.5 million to CHF 132.2 million. The direct cost/income ratio for rented properties was slightly higher year on year at 14.9% (prior year: 14.3%). As a result, net rental income rose by 7.1% year on year to CHF 112.5 million (prior year: CHF 105.1 million). The vacancy rate was further reduced in the year under review, in part through the successful letting of commercial premises. As at 31 December 2021, the vacancy rate was 4.8% (prior year: 5.5%). The change in like-for-like rental income was 1.6% (prior year: –0.0%) in the 2021 financial year and was also attributable to the successful letting of commercial premises. Mobimo achieved a slightly lower net yield of 3.4% (excluding Covid-19 effect) with its investment properties as at 31 December 2021 (prior year: 3.5%). This was in line with market trends.

The following investment properties under construction were transferred to the investment portfolio during the financial year: › Zurich, Friesenbergstrasse 75, › Lausanne, Avenue Edouard Dapples 9/13/15/15a.

The annualised target rental income from these additions is CHF 5.6 million.

Key financial performance figures

Unit 2021 2020 Change in %

Net rental income CHF million 112.5 105.1 7.1

Profit on development projects and sale of trading properties CHF million 58.5 36.8 59.0 Net income from revaluation CHF million 53.3 34.3 55.7 Profit on sale of investment properties CHF million 0.0 1.6 –100.0 Operating result (EBIT) CHF million 194.7 145.8 33.6 Operating result (EBIT) excluding revaluation CHF million 141.3 111.5 26.7 Financial result CHF million –25.0 –28.4 –12.1 Tax expense CHF million –32.0 –21.6 48.5 Profit CHF million 139.4 96.6 44.3 Profit excluding revaluation CHF million 96.3 69.7 38.2

The “Definition of Alternative Performance Measures” document, available at www.mobimo.ch > Investors > Investor services > Glossary, includes definitions of performance measures that are not defined under IFRS, EPRA, SIA (Swiss Society of Engineers and Architects) standard D 0213, Corporate Governance Best Practice Recommendations or other standards.

The company’s pipeline comprises further investment properties under construction for the company’s own portfolio with a total investment volume of around CHF 110 million. The potential target rental income of these projects is CHF 5.3 million.

The following commercial properties with total target rental income of CHF 5.3 million were purchased in the reporting period: › Biel/Bienne, Zentralstrasse 42, › Fribourg, Avenue de la Gare 13/Avenue de Tivoli 4, › Lausanne, Côtes-de-Montbenon 28/30 (building), › Neuchâtel, Rue du Seyon 12, › St. Gallen, Oberer Graben 16, › Wangen-Brüttisellen, Zürichstrasse 70, › Wangen-Brüttisellen, Zürichstrasse 72, › Zug, Poststrasse 30, › Zurich, Badenerstrasse 694.

Mobimo did not sell any investment properties in the 2021 financial year.

Remeasurement The revaluation of investment properties and of investment properties under construction resulted in net income from revaluation of CHF 53.3 million (prior year: CHF 34.3 million), of which CHF 8.3 million is largely attributable to operating performance, i.e. progress in the realisation of investment properties under construction for the company’s own portfolio. The value of the other investment properties increased by CHF 45.0 million (prior year: CHF 3.2 million), due primarily to the reduction in discount and capitalisation rates, especially for residential properties, in line with market trends. The average (nominal) discount rate applied by the independent property appraiser in the valuations was 3.6% (prior year: 3.7%). The average (real) capitalisation rate was 3.1% (prior year: 3.2%).

Development projects and sale of trading properties Income of CHF 138.4 million (prior year: CHF 135.8 million) was generated from development projects and the sale of trading properties. After deducting the relevant expenses, this resulted in profit of CHF 58.5 million. The sale of the Cosmos project in Dübendorf and the positive response to the Grace condominium development in Meggen in the canton of Lucerne, with all six commercial spaces and 29 of the 30 apartments notarised as at the reporting date, were major contributors to this strong performance.

As at 31 December 2021, the pipeline comprised one condominium project under construction with a total investment volume of CHF 40 million, planned condominium projects with a total investment volume of some CHF 640 million, and planned developments of investment properties for third parties with a total investment volume of around CHF 400 million.

Personnel, operating, administrative and tax expenses The number of FTEs as at the reporting date grew slightly to 162.0 (prior year: 159.6), of which 37.8 were attributable to Mobimo FM Service AG (prior year: 40.6). Personnel expenses in the reporting period were CHF 29.8 million (prior year: CHF 30.0 million).

Operating and administrative expenses were reduced to CHF 10.1 million in 2021 (prior year: CHF 11.6 million).

As a result of the higher profit, the tax expense also increased year on year to CHF 32.0 million (prior year: CHF 21.6 million).

Financial position

› As at 31 December 2021, total assets were CHF 3,770.5 million, above the prior-year figure of CHF 3,619.9 million. › The equity ratio was a solid 43.9% (prior year: 43.2%).

As at the end of the 2021 financial year, total assets had increased by a further 4.2% (prior year: 4.5%) to CHF 3,770.5 million. The real estate portfolio, the largest component of the balance sheet, grew by 7.3% year on year to CHF 3,599 million (prior year: CHF 3,353 million) due to investments and positive revaluation income.

With an equity ratio of 43.9% as at 31 December 2021 (prior year: 43.2%), Mobimo continues to have a solid capital base. The company’s corporate strategy specifies an equity ratio of at least 40%.

The gross loan to value ratio (LTV) as at 31 December 2021 was 49.6% (prior year: 51.4%), and the net LTV was 48.9% (prior year: 47.3%). At 5.9, the interest coverage ratio was well above the minimum target of 2.0. This means that Mobimo is readily able to finance its financial obligations from its operating activities. With regard to its capital structure, Mobimo aims to achieve long-term net gearing of a maximum of 150%. As at 31 December 2021, Mobimo had net gearing of 106.4% (prior year: 101.3%).

Key financial position figures

Unit 2021 2020 Change in %

Assets CHF million 3,770.5 3,619.9 4.2 Non-current assets CHF million 3,350.8 3,150.1 6.4 Current assets CHF million 419.6 469.8 –10.7 Equity CHF million 1,654.0 1,564.8 5.7 Return on equity % 9.1 6.4 42.2 Return on equity excluding revaluation % 6.3 4.6 37.0 Liabilities CHF million 2,116.4 2,055.1 3.0 Current liabilities CHF million 537.8 395.5 36.0 Non-current liabilities CHF million 1,578.6 1,659.5 –4.9 Equity ratio % 43.9 43.2 1.5

Equity ratio %

43.8 45.0 44.2 43.2 43.9

> 40% Financial liabilities CHF million

1 ,513 739

774 1 ,541 729

812 1 ,594 729

865 1 ,725 949

776 1 ,785 1 ,069

716

2017

2018 Minimum target value

2019 2020 2021 2017

2018 ¢¢ Bonds ££ Mortgages

2019 2020 2021

Financial liabilities The company’s financial liabilities currently consist of listed bonds, private placements and mortgage-secured bank loans, with the latter making up 40% of its financing. Mobimo once again benefited from the low interest rate environment in 2021, cutting the average rate of interest for the period for financial liabilities to 1.3% (prior year: 1.6%). As at the reporting date, the average interest rate fallen further, to 1.0% (prior year: 1.5%). Mobimo will continue to use the attractive interest rate environment to keep interest rates low. The average residual maturity of financial liabilities as at the reporting date was still within the target range at 4.7 years (prior year: 5.0 years). The long-term financing and solid equity ratio are a strong basis for the company’s further development.

Gross and net loan to value ratio (LTV) %

54.0

45.6 50.0 45.1 48.3 46.9 51.4 47.3 49.6 48.9

2017 ¢¢ Gross LTV ££ Net LTV

2018 2019 2020 2021 Investments Investment activities at Mobimo focus on the realisation of the project pipeline. As at 31 December 2021, the pipeline contained projects for the company’s own portfolio with a total investment volume (excluding building plots) of some CHF 570 million, which included: › investment properties for the company’s own portfolio – under construction: CHF 110 million, › investment properties for the company’s own portfolio – in planning: CHF 460 million.

The pipeline for Development for Third Parties and condominium projects, with a combined project volume of around CHF 1,080 million, breaks down as follows: › trading properties: condominiums under construction:

CHF 40 million, › trading properties: condominiums in planning: CHF 640 million, › development of investment properties for third parties in planning: CHF 400 million.

Stefan Hilber, CFO