Corestate presents unqualified audit opinion and publishes Annual Report 2021

CORESTATE presents unqualified audit opinion and publishes Annual Report 2021

• Advanced audit procedures concluded, Ernst & Young certifies financial statements without qualification
• The Management Board conducts goodwill impairment of €175m and increases risk provisions by €46m
• Strengthening of the core business, streamlining of Group structure and costs reduction in progress
• Balance sheet equity well in excess of € 600m
• Debt reduction and refinancing implemented as planned in 2022

Frankfurt, 20 April 2022 - Corestate Capital Holding S.A. (Corestate) today announces the final and audited results for the financial year 2021. The auditor Ernst & Young has concluded all its advanced audit procedures. The aggregated revenues and gains reported on 8 March 2022 with regard to continued operations remains unchanged at € 215.4m. In relation to valuations, the Management Board has established additional risk provisions and carried out value adjustments in coordination with the auditor. Taking conservative account of the prospective development of fund volumes, goodwill at Helvetic Financial Services (HFS) was impaired by a total of € 175m to € 345m. In addition, risk provisions totaling € 46m were recognized as an expense, in particular for current balance sheet items with critical maturities. This subsequently led to deviations from the preliminary 2021 results published at the beginning of March: adjusted EBITDA now amounts to € 43.8m. After deducting acquisition- and restructuring-related one-off charges of € 17.4m, the reported EBITDA from continued operations is € 26.4m. Adjusted net profit amounts to € 23.7m, reported net profit from continued operations in 2021 totals to € -192.8m.

CEO Stavros Efremidis says: "We still have a few legacy issues to process, which is not always easy and costs a lot of energy as well as time. However, it is more important to pave the way for a successful future. We have now adjusted risk positions in our balance sheet with great consistency to ensure this is achieved. At the same time, we are working hard to implement our strategic agenda, divesting non-core activities, concentrating on our core business of real estate investments, simplifying and streamlining internal structures, reducing costs and repositioning ourselves with a fresh, strong brand for our clients and investors by the end of the year."

Efremidis adds: "The accounting value adjustments made have no impact on the future performance of our core business. Beyond its operating profitability, Corestate currently has a very resilient substance of assets and co-investments of € 1.4bn with a balance sheet equity of well over € 600m. As planned, we will continue to optimize our capital structure in the current year, free up considerable liquidity and reduce our financial leverage to 2-3x. This forms the basis for our refinancing. Corestate can therefore develop its full potential as an attractive growth and dividend stock on the market in the future."

With the postponement of the publication of the Annual Report 2021, Corestate will also hold the annual shareholder meeting later than originally scheduled - it is still planned to be held as a purely virtual event this year. The annual general meeting 2022 will now take place on 28 June 2022.

Key figures

¹ Adjusted for one-off charges from M&As, transformation and the efficiency program
² Adjusted for one-off charges from goodwill impairment, M&As, transformation and the efficiency program as well as effects from deferred taxes and purchase price allocations (PPAs)

Press contact
Jorge Person
T: +49 69 3535630-136 / M: +49 162 2632369
jorge.person@corestate-capital.com

Investor Relations contact
Dr. Kai Klinger
T: +49 69 3535630-107 / M: +49 152 22755400
ir@corestate-capital.com

About CORESTATE Capital Holding S.A. (CORESTATE)

CORESTATE is an investment manager and co-investor with around € 19 billion in assets under management in the core business. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanization, demographic shifts or sustainability - trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With more than 800 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 11 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London. Please visit www.corestate-capital.com for further information.

Forward-looking statements

This press release may contain certain forward-looking statements based on current assumptions and forecasts made by our management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial position, development or performance of the Company and the estimates given here. These factors include those described in published reports. These reports are available on our website www.corestate-capital.com. The Company assumes no obligation whatsoever to update these forward-looking statements or to conform them to future events or developments. No inappropriate significance should be attached to forward-looking statements, which apply only to the date of this communication.