Half-Year Report

2023
 EPIC Suisse | Half-Year Report 2023 | EPIC at a Glance

EPIC at a Glance

EPIC Suisse AG is a Swiss real estate company

with a high-quality property portfolio mainly
located in Switzerland’s major economic hubs,
specifically the Lake Geneva Region and
the Zurich Economic Area. The company has
a strong track record in sourcing, acquiring,
(re)developing and actively managing commer-
cial properties in Switzerland. EPIC has been
listed on SIX Swiss Exchange since May 2022.
2

Our portfolio as at 30 June 2023

Market value of the portfolio Portfolio by use

Based on market value

CHF
43 % Offices

1.5 billion
38 % Retail
14% Logistics / industrial
5% Developments
EPIC Suisse | Half-Year Report 2023 | EPIC at a Glance

Portfolio by region
Based on market value

36%
Zurich Economic Area

50%
14%
Lake Geneva Region Other locations1

25
Properties
324’575 m 2

Rentable area of investment properties in operation

8.1 years
WAULT
4.6 %
Net rental income yield of investment
properties in operation (annualised)

1
Other locations refer to the properties in Glarus, St. Gallen and Roggwil.
 EPIC Suisse | Half-Year Report 2023 | EPIC at a Glance

Key Figures
Result Unit H1 2023 H1 2022
Rental income from real estate properties CHF ('000) 32'872 30'661
Net operating income (NOI)1 CHF ('000) 30'738 28'271
Net gain (loss) from revaluation of properties CHF ('000) (5'885) 5'278
EBITDA (incl. revaluation on properties) CHF ('000) 20'654 24'411
EBITDA (excl. revaluation on properties) CHF ('000) 26'539 19'133
Earnings before interest and tax (EBIT) CHF ('000) 20'558 24'315
Profit (incl. revaluation effects) CHF ('000) 11'230 38'724
Profit (excl. revaluation effects) 2
CHF ('000) 20'856 13'546
Net rental income yield properties in operation (annualised) % 4.6% 4.2%

Balance sheet Unit 30 Jun 2023 31 Dec 2022

Total assets CHF ('000) 1'572'084 1'563'201
Equity (NAV) CHF ('000) 798'616 818'412
Equity ratio % 50.8% 52.4%
Return on equity (incl. revaluation effects)3 (annualised for H1 2023) % 2.8% 8.1%
Return on equity (excl. revaluation effects) (annualised for H1 2023)
4
% 5.2% 4.7%
Mortgage-secured bank loans CHF ('000) 617'547 595'966
Weighted average interest rate on mortgage-secured bank loans % 1.3% 1.0%

4 Weighted average residual maturity of mortgage-secured bank loans Years 5.1 4.1
Net loan to value (LTV) ratio 5
% 39.7% 38.3%

Portfolio Unit 30 Jun 2023 31 Dec 2022

Total portfolio CHF ('000) 1'514'744 1'501'882
Investment properties in operation CHF ('000) 1'441'689 1'447'761
Investment properties under development/construction CHF ('000) 73'055 54'121
Reported vacancy rate (properties in operation) % 4.4% 5.8%
Adjusted vacancy rate (properties in operation)6 % 2.8% 3.3%
WAULT (weighted average unexpired lease term) Years 8.1 8.2

Information per share Unit 30 Jun 2023 31 Dec 2022

Number of outstanding shares as at period end # ('000) 10'330 10'330
Net asset value ("NAV") per share CHF 77.31 79.23
Share price on SIX Swiss Exchange CHF 62.00 63.50

H1 2023 H1 2022
Weighted average number of outstanding shares # ('000) 10'330 8'052
Earnings per share (incl. revaluation effects) CHF 1.09 4.81
Earnings per share (excl. revaluation effects) CHF 2.02 1.68

1
Rental income from real estate properties plus other income less direct expenses related to properties
2
Profit after tax before other comprehensive income excluding revaluation of properties and derivatives and related deferred taxes as well as any
related foreign exchange effects
3
Profit after tax before other comprehensive income divided by the average IFRS NAV. The average IFRS NAV corresponds to ½ of the sum of the IFRS
NAV at the beginning and at the end of the reporting period
4
Profit after tax before other comprehensive income excluding revaluation of properties and derivatives and related deferred taxes as well as any rela-
ted foreign exchange effects divided by the average IFRS NAV. The average IFRS NAV corresponds to ½ of the sum of the IFRS NAV at the beginning
and at the end of the reporting period
5
Ratio of net debt to the market value of total real estate properties including the right-of-use of the land
6
Reported vacancy rate adjusted for absorption and strategic vacancy in certain properties in operation (i.e. Zänti Volketswil, Biopôle Serine)
For alternative performance measures' descriptions, please refer to page 50
EPIC Suisse | Half-Year Report 2023 | Table of Contents

Table of Contents

Letter to Shareholders 6

Report on the Half-Year Results 8

Consolidated Interim Financial Statements 10

Notes to the Consolidated Interim Financial Statements 15

Independent Valuer’s Report 44

Alternative Performance Measures 50

Investor Relations Information 52

Imprint/Disclaimer 53 5
 EPIC Suisse | Half-Year Report 2023 | Letter to Shareholders

Letter to Shareholders

Dear shareholders,
The Board of Directors as well as the Group Executive Management are very pleased
to report significant growth and a strong operating performance for the first half-year
2023. Our semi-annual results were achieved despite a challenging market environ-
ment and are a testimony to the quality of our real estate portfolio and to our success-
ful long-term Buy-Build-Hold strategy.

Higher rental income, vacancies further reduced CHF

32.9
We are pleased to report a substantial increase of 7.2% in rental income from real
estate properties from CHF 30.7 million for the 6 months ending 30 June 2022 to
CHF 32.9 million for the 6 months ending 30 June 2023. The increase in rental income
from operations was mainly driven by additional rent due to indexation, a reduction in
vacancy to 4.4% during this period compared to 6.5% during the equivalent period of
million of rental income
2022, as well as the expiry of rent-free periods granted.1

Value of real estate portfolio steady at CHF 1.5 billion

The value of the real estate portfolio increased by 0.9% compared to year-end 2022
6 and amounted to CHF 1’514.7 million at 30 June 2023. The increase is mainly due to the
investments and construction progresses in our development projects and despite
a net unrealised revaluation loss of CHF 5.9 million mainly as a result of higher real
discount rates applied by the independent real estate valuer. The WAULT (weighted
average unexpired lease term) remained stable and at a long duration of 8.1 years as
at 30 June 2023 compared to 8.2 years as at 31 December 2022.
EPIC Suisse | Half-Year Report 2023 | Letter to Shareholders

Further business update within the portfolio and regarding project developments
We are very satisfied with the progress and achievements in our development pipeline
during H1 2023. The construction of our project PULSE in Cheseaux-sur-Lausanne is
evolving according to plan. As a reminder, PULSE will be made of two best in class ad-
jacent light industrial and/or production buildings with a gross area of around 43’000
m² above ground, and connected with two basement floors that will provide generous
parking, storage and technical areas. Due to the buildings’ technical flexibility, PULSE
represents a unique opportunity for different types of companies to base their pro-
duction and/or R&D operations in the vicinity of Lausanne. Our marketing campaign
has now begun and, starting from August 2023, a new employee dedicated to market-
ing has joined our Lausanne team, to liaise with potential new tenants for the lettings
of our available areas in the Swiss Romandie and in particular of our project PULSE.

The lettings in our building Biopôle Serine are progressing well – we have signed a
new lease for an additional surface in the building, which is expected to begin towards
the end of 2023. While as at 30 June 2022, the vacancy in the building, based on letta-
ble area in m², amounted to 24%, this percentage is now reduced to 20% based on
4.4 %
vacancy rate
signed contracts.

The construction of the next phase of Campus Leman (building C) began in April 2023,
and we expect the building to be completed by H1 2025, with the anchor tenant, In-
cyte, having already firmly committed to renting about one third of the building.

Furthermore, during Q3 2023, a preliminary building permit application will be sub-

mitted for our development land in Roggwil, in order to obtain official feedback from
the authorities before a complete building permit application is submitted.

Finally, we are continuing to closely monitor the progress of our future development
project En Molliau in Tolochenaz. While the site is fully let today and generates rental
7
income, in our view, given the unique size and location of the site, the redevelopment
of the land has significant potential whether using the existing building rights or in the
future more flexible building rights. The municipality of Tolochenaz is opting for more
flexible rights and is driving this change in the new masterplan. We understand from
the municipality that discussions with the cantonal authorities are progressing.

Solid financing
Our balance sheet remains solid with an equity of CHF 798.6 million as at 30 June
2023 compared to CHF 818.4 million as at 31 December 2022 and with a net loan to
value (LTV) ratio of 39.7% at 30 June 2023 compared to 38.3% as at 31 December
2022. For more details and analysis of our H1 2023 results please refer also to the Re-
port on the Half-Year Results on the following page.

We are also very happy to have delivered on the dividend target that was communi-
cated prior to the IPO and to have paid on 4 May 2023 a dividend of CHF 3.00 per
share amounting to a total distribution of CHF 31.0 million. This represents a payout
ratio of 85% of our 2022 FFO (adjusted for the one-off IPO costs).

A word of thanks
After this successful half-year, we would like to thank all our employees for their com-
mitment and hard work. We also would like to express our gratitude to all our business
partners for their continued loyalty. Finally, we would also like to thank you, our share-
holders, for your interest in our company.

Sincerely,

Roni Greenbaum Arik Parizer

Chairman Chief Executive Officer
1
For a glossary of the alternative performance measures, please refer to page 50 of this Half-Year Report.
 EPIC Suisse | Half-Year Report 2023 | Report on the Half-Year Results

Report on the Half-Year Results

H1 2023 performance confirms resilience of our business model

Rental income from real estate properties increased by 7.2% to CHF 32.9 million in the
first half of 2023 compared to CHF 30.7 million in H1 2022, mainly as a result of three
factors, rent indexation combined with lower vacancy rates and incentives. Accord-
ingly, the net annualised rental income yield of our properties in operation reached
4.6% compared to 4.2% in the previous reporting period.

Thanks to stable direct expenses and higher other income this half year (the positive
delta of the other income was mainly of a non-recurrent nature), the net operating in-
come of H1 2023 improved by CHF 2.5 million to CHF 30.7 million, producing a 90.7%
margin (CHF 28.3 million and 90.3% respectively in H1 2022).

The value of our portfolio increased by 0.9% to CHF 1’514.7 million (CHF 1’501.9 million
as at 31 December 2022) primarily due to the advancement of our ongoing development
projects and despite a net unrealised revaluation loss of CHF 5.9 million, following the
reappraisal of all properties by the independent real estate valuer Wüest Partner AG
by the end of June 2023.

The higher interest rate environment has impacted valuation models and transaction
8 volumes in the Swiss real estate market and was the main driver behind the weighted CHF

1’515
average real discount rate increase of 5 basis points to 3.36% end of June 2023 (3.31%
end of December 2022), which affected all sectors except for the developments. The
development sector showed a net unrealised revaluation gain of CHF 3.2 million,
whereas the office, retail and logistics/industrial sectors showed unrealised revaluation
losses of CHF 4.1 million, CHF 3.5 million and CHF 1.5 million respectively.
million portfolio value
The group generated an EBITDA of CHF 20.7 million within the first six months of
the year compared to CHF 24.4 million in the prior analogous period. When exclud-
ing the revaluation on properties as well as the one-off IPO costs of CHF 5.9 million in
H1 2022, the adjusted EBITDA amounts to CHF 26.5 million and CHF 25.0 million for
H1 2023 and H1 2022 respectively, showing a progression of 6.1% mainly as a result of
the top line growth.

The H1 2023 financial result displayed a net expense of CHF 7.9 million versus a net in-
come of CHF 19.1 million in H1 2022, such income resulting from an unrealised revalua-
tion gain from hedging instruments (interest rate swaps) in the amount of CHF 23.1
million. The periodical revaluation of the swaps (negative effect of CHF 4.5 million
by the end of June 2023) does not impact the group’s operations, cash flows or ability
to distribute a dividend. Net bank charges remained stable at CHF 3.5 million during
H1 2023 compared to CHF 3.4 million in the equivalent period last year, principally due
to a lower amount of bank debt during H1 2023.

During the first half of this year, the group showed a net profit of CHF 11.2 million
versus CHF 38.7 million for the previous comparable period. After adjusting for the
revaluation effects as well as the above-mentioned one-off IPO costs incurred during
H1 2022, the net profit rose by 7.4% to CHF 20.9 million compared to CHF 19.4 million
for H1 2022.

The reported vacancy rate of our investment properties in operation further de-
creased to 4.4% in H1 2023 versus 6.5% in the corresponding prior period, largely
driven by the office sector, in particular the recently built property Biopôle Serine.
EPIC Suisse | Half-Year Report 2023 | Report on the Half-Year Results

The WAULT as at 30 June 2023 stayed stable at 8.1 years compared to 8.2 years as at
the end of December 2022, notwithstanding the passing of time effect (0.5 years).

Capital expenditure
During this reporting period, our capital expenditures in a total amount of CHF 18.7
million were mainly focused on our developments with total investments of CHF 15.7
million, of which CHF 13.3 million related to project PULSE in Cheseaux-sur-Lausanne
and CHF 2.4 million to the construction of building C (Campus Leman) in Morges,
which started in April 2023.

Strong capital base

As at 30 June 2023, the group’s equity amounted to CHF 798.6 million which corre-
sponds to an equity ratio of 50.8% (CHF 818.4 million and 52.4% respectively as at
31 December 2022). A dividend of CHF 3.00 per share, corresponding to a yield of
4.7% based on the closing share price end of last year, was distributed to the share-
holders on 4 May 2023 in line with the target announced in May 2022. Accordingly,
the net asset value per share equalled CHF 77.31 end of June 2023 (CHF 79.23 as at
CHF

77.31
31 December 2022).

All short-term mortgage-secured bank loans as at 31 December 2022 were renewed

with maturities in 2028 and beyond, which is reflected in the longer weighted average
residual maturity of 5.1 years as at 30 June 2023 (4.1 years as at 31 December 2022).
net asset value per share
As at 30 June 2023, the bank loans continued to be well hedged with 71% of the loans
being fixed or benefitting from interest rate swaps, while the net loan to value ratio
stayed low at 39.7% (81% and 38.3% respectively as at the end of December 2022).
9
As anticipated in view of the current interest rate environment, the weighted average
interest rate increased to 1.3% as at 30 June 2023 from 1.0% as at 31 December 2022.
In order to further reduce bank costs, the group entered into 3-year cross currency
swaps for a nominal amount of CHF 91.3 million, which allow for a reduced bank mar-
gin. The foreign currency conversion rates were fixed at inception and maturity of the
swaps, eliminating the crystallisation of any potential foreign exchange currency risk.
Only unrealised revaluation foreign exchange losses or gains will be recorded, which,
similar to any periodic fair value revaluation, will not impact the group’s operations,
cash flows or dividend distributions.

Outlook
Climate change, energy supply, sustainability, interest rates and inflationary risks
­remain amongst the key focus areas with potentially high impacts on the economic
environment. The war in Ukraine and the stakes involved are unfortunately still part
of the geopolitical landscape. Assuming no materially adverse impact on our opera-
tions going forward, we are confident of reaching a net rental income growth target
of circa 4% to 6% for the full year 2023.

Sincerely,

Valérie Scholtes
Chief Financial Officer
 EPIC Suisse | Half-Year Report 2023 | Consolidated Interim Financial Statements

Consolidated statement of profit or loss

and other comprehensive income

CHF ('000) Notes H1 2023 H1 2022

Rental income from real estate properties 7 32'872 30'661

Other income 1'005 634
Total income 33'877 31'295

Gains from revaluation of properties 15 4'986 11'871

Losses from revaluation of properties 15 (10'871) (6'593)
Net gain (loss) from revaluation (5'885) 5'278

Direct expenses related to properties 8 (3'139) (3'024)

Personnel expenses 9 (2'353) (1'627)
Operating expenses 10 (571) (504)
Administrative expenses 11 (1'275) (7'007)
Total operating expenses (7'338) (12'162)

10 Earnings before interest, tax, depreciation and amortisation (EBITDA) 20'654 24'411

Depreciation (96) (96)

Earnings before interest and tax (EBIT) 20'558 24'315

Financial income 12 2'247 23'125

Financial expenses 12 (10'113) (3'976)
Financial result (7'866) 19'149

Earnings before tax (EBT) 12'692 43'464

Income tax expenses 13 (1'462) (4'740)

Profit 11'230 38'724

Items that will not be reclassified subsequently to profit and loss

Remeasurement of defined benefit obligations (net of taxes) - -
Total comprehensive income 11'230 38'724

Weighted average number of outstanding shares (in '000) 10'330 8'052

Basic and diluted earnings per share (in CHF) 22 1.09 4.81
EPIC Suisse | Half-Year Report 2023 | Consolidated Interim Financial Statements

Consolidated statement
of financial position

CHF ('000) Notes 30 Jun 2023 31 Dec 2022

ASSETS
Current assets
Cash and cash equivalents 16'359 20'338
Tenant receivables 14 929 1'251
Other receivables 1'121 1'429
Current derivative financial assets 19 7'581 3'336
Accrued income and prepaid expenses 2'251 1'299
Total current assets 28'241 27'653

Non-current assets
Real estate properties
– Investment properties in operation 15 1'441'689 1'447'761
– Investment properties under development/construction 15 73'055 54'121
Total real estate properties
Other intangible assets
1'514'744
9
1'501'882
9
11
Other tangible assets 295 335
Right-of-use assets 447 502
Non-current derivative financial assets 19 19'535 24'008
Other non-current financial assets 50 54
Other non-current assets 16 5'978 5'861
Deferred tax assets 82 69
Accrued income 2'703 2'828
Total other non-current assets 29'099 33'666
Total non-current assets 1'543'843 1'535'548

Total assets 1'572'084 1'563'201

 EPIC Suisse | Half-Year Report 2023 | Consolidated Interim Financial Statements

Consolidated statement
of financial position (continued)

CHF ('000) Notes 30 Jun 2023 31 Dec 2022

LIABILITIES
Current liabilities
Current financial liabilities 17 4'768 101'894
Current derivative financial liabilities - -
Trade payables 1'279 1'422
Current income tax liabilities 2'635 3'010
Other payables 1'015 885
Accrued expenses and deferred income 18 11'475 8'195
Total current liabilities 21'172 115'406

Non-current liabilities
Other non-current liabilities - 3
Non-current financial liabilities 17 626'410 507'850

12 Non-current derivative financial liabilities

Pension obligations
19 4'259
280 280
-

Deferred tax liabilities 121'347 121'250

Total non-current liabilities 752'296 629'383
Total liabilities 773'468 744'789

EQUITY
Share capital 21 413 413
Share premium 21 431'712 462'702
Retained earnings 366'491 355'297
Total equity 798'616 818'412

Total liabilities and equity 1'572'084 1'563'201

Number of outstanding shares as at period end (in '000) 21 10'330 10'330

Net asset value (“NAV”) per share (in CHF) 22 77.31 79.23
EPIC Suisse | Half-Year Report 2023 | Consolidated Interim Financial Statements

Consolidated statement of cash flows

CHF ('000) Notes H1 2023 H1 2022

A – Operating activities
Earnings before tax (EBT) 12'692 43'464
Adjustments for:
– Financial result 12 7'866 (19'149)
– Revaluations of properties 15 5'885 (5'278)
– Depreciation 96 96
– Share-based compensation 160 -
– Other (3) (2)
Changes:
– Tenant net receivables 322 134
– Other receivables, accrued income and prepaid expenses (259) (570)
– Trade payables (304) (49)
– Other payables, accrued expenses and deferred income 1'613 2'042
Interest received 6 - 13
Income tax paid (1'870) (3'037)
Net cash flows from operating activities 26'204 17'651

B – Investment activities
Investments in real estate properties 15 (17'046) (10'685)
Net cash flows used in investment activities (17'046) (10'685)

C – Financing activities
Proceeds from IPO - 192'445
Proceeds from bank debt 17 137'420 -
Repayment of bank debt 17 (115'382) (168'340)
Bank interest paid (3'554) (3'422)
Lease payments (434) (433)
Other finance costs paid - (175)
Transaction costs related to issuance of new shares 21 - (2'052)
Repayment of shareholders’ loans - (6'500)
Interest in relation to shareholders’ loans - (146)
Dividends paid to shareholders (30'990) (4'500)
Acquisition of treasury shares (197) -
Net cash flows from financing activities (13'137) 6'877

Net change in cash (3'979) 13'843

Net cash at the beginning of the period 20'338 18'240
Net cash at the end of the period 16'359 32'083
 EPIC Suisse | Half-Year Report 2023 | Consolidated Interim Financial Statements

Consolidated statement of changes

in equity

CHF ('000) Notes Share capital Share premium Retained earnings Total equity

As at 31 Dec 2021 300 279'117 298'448 577'865

Capital increase – 25 May 2022 107 182'579 182'686

Capital increase – 28 June 2022 6 9'753 9'759

Profit 38'724 38'724

Other comprehensive income - -
Total comprehensive income 38'724 38'724

Dividend distribution 21 (4'500) (4'500)

Transaction costs related to issuance
of new shares 21 (4'248) (4'248)
As at 30 Jun 2022 413 462'701 337'172 800'286

As at 31 Dec 2022 413 462'702 355'297 818'412

14 Profit 11'230 11'230
Other comprehensive income - -
Total comprehensive income 11'230 11'230

Share-based compensation 160 160

Dividend distribution 21 (30'990) (30'990)
Equity-settled share-based payment (196) (196)
As at 30 Jun 2023 413 431'712 366'491 798'616
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

Notes to the consolidated interim

financial statements

1 Reporting entity
EPIC Suisse AG (hereafter “the Company”) was incorporated on 5 December 2016 and
is organised under the laws of Switzerland for an unlimited period. The Company and
its direct and indirect subsidiaries together are referred to as (the) “EPIC Group”.

The registered office of the Company is established in Zurich, Switzerland.

EPIC Group operates in the real estate sector and its activities generally include the
investment in the holding and management of investment properties. The strategy is
to hold investment properties with the view to generate stable and sustainable results
for the long term.

The Company holds 17 subsidiaries which own 25 properties. All entities are ultimately
controlled by the majority shareholder Alrov Properties & Lodgings Ltd (“Alrov”),
which prepares consolidated financial statements in accordance with International
Financial Reporting Standards (IFRS).

The Company was listed on 25 May 2022 on the SIX Swiss Exchange.
15

2 Accounting framework
The unaudited consolidated interim financial statements as at 30 June 2023 have
been prepared in accordance with IAS 34 Interim Financial Reporting and comply
with legislation in Switzerland as well as with Article 17 of the Directive on Financial
Reporting (DFR) of the SIX Swiss Exchange. They do not include all the information re-
quired for a complete set of IFRS financial statements and should therefore be read in
conjunction with the consolidated financial statements as at 31 December 2022. The
Company’s financial year starts on 1 January and ends on 31 December.

The same consolidation, accounting and valuation principles have been applied as for
the consolidated financial statements as at 31 December 2022. The definitions of the
alternative performance measures can be found under the section “Alternative Perfor-
mance Measures”.

The consolidated interim financial statements as at 30 June 2023 were authorised for
issue by the Company’s Board of Directors on 16 August 2023.

3 Basis of preparation
The consolidated interim financial statements have been prepared on a historical cost
basis, except for investment properties and derivative financial instruments that have
been measured at fair value.

The consolidated interim financial statements are presented in Swiss francs (CHF),
which is the functional currency of the Company and its subsidiaries. All values are
rounded to the nearest thousand Swiss francs unless otherwise stated.
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

Certain numerical figures set out in the consolidated interim financial statements have
been subject to rounding adjustments and, as a result, the totals of the data in the
consolidated interim financial statements may vary slightly from the actual arithmetic
totals of such information.

4 Basis of consolidation
Subsidiaries are entities controlled by the Company. The Company controls an entity
when it is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its influence over the entity. In
assessing control, potential voting rights that presently are exercisable are taken into
account. Subsidiaries are fully consolidated from the date on which control is trans-
ferred to the Company. They are deconsolidated from the date that control ceases. All
of EPIC Group’s companies have 31 December as their year-end.

Intercompany transactions, balances and unrealised gains and losses on transactions

between EPIC Group’s companies are eliminated.

A list of the consolidated entities is set out below:

Share capital Capital and voting interests
30 Jun 2023 30 Jun 2023 31 Dec 2022
Legal entity name D CHF % %

EPIC Suisse AG CH 413'203

16 P.I.H. Property Investment Holdings Luxembourg S.A. (“PIH”) LU 40'762 100% 100%
EPiC ONE Property Investment AG (“EPiC 1”) CH 100'000 100% 100%
EPiC THREE Property Investment AG (“EPiC 3”) CH 110'000 100% 100%
EPiC FIVE Property Investment AG (“EPiC 5”) CH 100'000 100% 100%
EPiC SEVEN Property Investment AG (“EPiC 7”) CH 100'000 100% 100%
EPiC NINE Property Investment AG (“EPiC 9”) CH 206'100 100% 100%
EPiC TEN Property Investment AG (“EPiC 10”) CH 120'000 100% 100%
EPiC ELEVEN Property Investment AG (“EPiC 11”) CH 100'000 100% 100%
EPiC TWELVE Property Investment AG (“EPiC 12”) CH 100'000 100% 100%
EPiC SIXTEEN Property Investment AG (“EPiC 16”) CH 210'000 100% 100%
EPiC NINETEEN Property Investment AG (“EPiC 19”) CH 100'000 100% 100%
EPiC TWENTY Property Investment AG (“EPiC 20”) CH 100'000 100% 100%
EPiC TWENTY-ONE Property Investment AG (“EPiC 21”) CH 100'000 100% 100%
EPiC TWENTY-TWO Property Investment AG (“EPiC 22”) CH 100'000 100% 100%
EPiC TWENTY-THREE Property Investment AG (“EPiC 23”) CH 100'000 100% 100%
EPiC TWENTY-FOUR Property Investment AG (“EPiC 24”) CH 240'000 100% 100%
EPIC Suisse Property Management GmbH (“EPIC SPM”) CH 20'000 100% 100%

D = Domicile, CH = Zurich, Switzerland, LU = Luxembourg City, Luxembourg

In the text, the Swiss subsidiaries’ name will be abbreviated as follows: “EPiC 1” for
EPiC ONE Property Investment AG, etc. and “EPIC SPM” for EPIC Suisse Property
Management GmbH, the management company.

PIH serves as holding company of most of the Swiss entities (except EPiC 20 and
EPiC 21 directly held by the Company and EPiC 24 directly held by EPiC 7). The
purpose of the Swiss property entities (EPiC 1 to EPiC 24) is to acquire, hold, lease and
sell commercial premises.
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

5 Critical accounting judgments and

key sources of estimation uncertainty
IFRS requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and reported amounts of assets and
liabilities, income and expenses. Actual results may differ from these estimates. Revi-
sions to the accounting estimates are recognised in the year in which the estimates
are revised if the revisions affect only that period, or in the year of the revisions and
future periods if the revisions affect both current and future periods.

Information about assumptions and estimation uncertainties that have a significant

risk of resulting in a material adjustment in the following reporting periods is included
in the following notes:

– Note 15 – Real estate properties – determining the fair value of the investment
properties in operation and investment properties under development/construction
requires the application of valuation techniques and the use of various estimates
and ­assumptions.
– Note 13 – Income tax expenses – the determination of tax provisions is based on
estimates.

6 Segment reporting
Two operating and reporting segments have been identified based on management’s
approach to and monitoring of the business. EPIC Group’s primary decision-making
authority is the Company’s Board of Directors. The group’s operating activities are di-
vided in accordance to the real estate properties’ classification: (i) Investment proper- 17
ties in operation and (ii) Investment properties under development/construction. In-
vestment properties categorised under “development/construction” are to be held
thereafter by the group for renting (i.e. no intention to be sold). An additional descrip-
tion of the two segments is included in the accounting policy for real estate properties
in Note 29 of the consolidated financial statements as at 31 December 2022.

Each property is classified under one category, with the exception of two properties
as at 30 June 2023, which have a yielding part as well as a development part. In EPiC 19,
the property is undergoing various phases of development – the second and third
phases (buildings C & D) remain in the development segment (see further below). The
same applies to the land reserve in EPiC 21, which is located adjacent to the land of an
existing logistics site which generates rental income. A property under development/
construction will move to the category Investment properties in operation once the
development or construction (for all or part of the property in case of construction un-
dertaken in phases) has been fully completed.

Expenses are only allocated to the segments down to “Net operating income”, which
is defined as rental income and other income minus direct expenses related to the
properties. This is the measure of profit or loss used by the Board of Directors to
­review the performance of the segments. Segment assets and liabilities reported to
the Board of Directors only include real estate properties and mortgage-secured bank
loans as well as the derivative financial assets and liabilities.

Since EPIC Group operates exclusively in Switzerland, no information on geographical

areas is presented.
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

H1 2023
Invest. prop Invest. prop Total Total
CHF ('000) in operation under D/C1 Segments Reconciliation Group

Rental income 32'869 3 32'872 - 32'872

Other income 729 276 1'005 - 1'005
Total income 33'598 279 33'877 - 33'877

Direct expenses related to the properties (3'115) (24) (3'139) - (3'139)

Net operating income 30'483 255 30'738 - 30'738

Personnel expenses (2'353) (2'353)

Operating expenses (571) (571)
Administrative expenses (1'275) (1'275)
Total other operating expenses (4'199) (4'199)

EBITDA before portfolio revaluation 26'539

Net gain (loss) from revaluation (9'109) 3'224 (5'885) - (5'885)

EBITDA after portfolio revaluation 21'374 3'479 24'853 (4'199) 20'654

Depreciation (96) (96)

EBIT 20'558

18 30 Jun 2023

Assets
Real estate properties fair value 1'441'689 73'055 1'514'744 - 1'514'744
Derivative financial assets 27'116 - 27'116 - 27'116
Total segment assets 1'468'805 73'055 1'541'860 - 1'541'860

Assets not split between segments 30'224 30'224

Total assets 1'468'805 73'055 1'541'860 30'224 1'572'084

Liabilities
Mortgage-secured bank loans 617'547 - 617'547 - 617'547
Derivative financial liabilities 4'259 - 4'259 - 4'259
Total segment liabilities 621'806 - 621'806 - 621'806

Liabilities not split between segments 151'662 151'662

Total liabilities 621'806 - 621'806 151'662 773'468

Invest. prop under D/C stands for Investment properties under development/construction
1
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

H1 2022
Invest. prop Invest. prop Total Total
CHF ('000) in operation under D/C1 Segments Reconciliation Group

Rental income 30'658 3 30'661 - 30'661

Other income 634 - 634 - 634
Total income 31'292 3 31'295 - 31'295

Direct expenses related to the properties (3'000) (24) (3'024) - (3'024)

Net operating income 28'292 (21) 28'271 - 28'271

Personnel expenses (1'627) (1'627)

Operating expenses (504) (504)
Administrative expenses (7'007) (7'007)
Total other operating expenses (9'138) (9'138)

EBITDA before portfolio revaluation 19'133

Net gain (loss) from revaluation 4'348 930 5'278 - 5'278

EBITDA after portfolio revaluation 32'640 909 33'549 (9'138) 24'411

Depreciation (96) (96)

EBIT 24'315

31 Dec 2022
19
Assets
Real estate properties fair value 1'447'761 54'121 1'501'882 - 1'501'882
Derivative financial assets 27'344 - 27'344 - 27'344
Total segment assets 1'475'105 54'121 1'529'226 - 1'529'226

Assets not split between segments 33'975 33'975

Total assets 1'475'105 54'121 1'529'226 33'975 1'563'201

Liabilities
Mortgage-secured bank loans 595'966 - 595'966 - 595'966
Derivative financial liabilities - - - - -
Total segment liabilities 595'966 - 595'966 - 595'966

Liabilities not split between segments 148'823 148'823

Total liabilities 595'966 - 595'966 148'823 744'789

1
Invest. prop under D/C stands for Investment properties under development/construction

There are no differences between the accounting and valuation principles used for
segment reporting and those used for the preparation of the consolidated interim
­financial statements. For details about the amounts invested in the segments during
the period, please refer to Note 15.
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

7 Rental income from real estate properties

CHF ('000) H1 2023 H1 2022

Investment properties in operation 32'869 30'658

Investment properties under development/construction 3 3
Total rental income from real estate properties 32'872 30'661

The real estate properties are leased to tenants under operating leases with the
vast majority of rents payable monthly or quarterly. Rentals are mainly fixed and linked
to the development of a consumer price index. Rental agreements generally contain
an index clause stating that rents may be adjusted on the basis of the consumer price
index. As at 30 June 2023, 87.8% of the rental income (on a weighted average basis
excluding rent incentives) is linked to indexation based on the consumer price index.

Over the two periods presented, variable rent depending on the tenant’s sales repre-
sented less than 1% of the rental income.

The group is exposed to changes in the residual value at the end of the current leases.
However, because the group typically enters into new operating leases, it will not im-
mediately realise any reduction in residual value at the end of these leases. Neverthe-
less, expectations about the future residual values are reflected in the fair value of the
properties which impacts the group’s profit.

The five largest tenants (tenants belonging to the same group are shown under the
group’s name) measured according to their first half-year rental income are shown in
20 the below table:

CHF ('000) / % H1 2023 H1 2022

Coop group 6'484 19.7% 5'926 19.3%

Migros group 2'723 8.3% 2'652 8.7%
Centre Hospitalier Universitaire Vaudois group 2'640 8.0% 2'682 8.7%
GXO Logistics Switzerland S.A.G.L. 2'080 6.3% 2'031 6.6%
Hitachi Zosen Inova AG 1'857 5.7% 1'709 5.6%
The five largest tenants 15'784 48.0% 15'000 48.9%

8 Direct expenses related to properties

CHF ('000) H1 2023 H1 2022

Maintenance costs for real estate 1'006 997

Energy and ancillary costs 382 430
Insurances 442 322
Management costs for real estate 139 123
Property tax expenses 584 599
Other direct costs 586 553
Total direct expenses related to properties 3'139 3'024

The marginal increase in direct expenses related to properties of CHF 0.1 million is
largely explained by higher building insurance costs (private and public sectors).
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

9 Personnel expenses
CHF ('000) H1 2023 H1 2022

Salaries 1'787 1'310

Social security contributions 132 105
Expenses for defined benefit plans 121 60
Other personnel expenses 83 21
Board member expenses 230 131
Total personnel expenses 2'353 1'627

Number of employees (#) in Switzerland

Number of employees at period end 22 20
Full-time equivalents at period end 18.7 17.6

Number of Board members (#)

Number of Board members receiving a fee at period end 4 4

The increase in personnel expenses of CHF 0.7 million primarily relates to the new
compensation and incentive program put in place for the Group Executive Manage-
ment and revised board membership fees for the Board of Directors effective from the
listing of the Company end of May 2022.

For more information about related parties, please refer to Note 24.

21
10 Operating expenses
CHF ('000) H1 2023 H1 2022

Rent 50 44
Travel and representation expenses 76 71
Other operating expenses (such as IT, general office
expenses, non-recoverable VAT, capital taxes) 445 389
Total operating expenses 571 504

The minor increase in operating expenses of CHF 0.1 million is mainly driven by the
higher corporate insurance costs in connection with the public status of the Company.

11 Administrative expenses
CHF ('000) H1 2023 H1 2022

Legal fees 168 367

Tax consultancy fees 206 169
Other consultancy fees 663 750
Accounting and audit fees 267 453
Transaction costs (29) 5'268
Total administrative expenses 1'275 7'007
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

The decrease of CHF 5.7 million in administrative expenses between the two periods
is essentially explained by the one-off IPO costs of CHF 5.9 million incurred in H1 2022
and included in various captions of the administrative expenses. Moreover, in H1 2022,
IPO costs of CHF 4.2 million were directly booked in equity under “transaction costs
related to issuance of new shares” as related to the newly issued shares.

In “other consultancy fees” are also included business development costs for investment
properties such, as for example, planning costs relating to potential developments and
compilation of feasibility studies for projects subject to external influences (outside
EPIC Group’s control) which makes it uncertain whether they will be at all realised.

12 Financial result
CHF ('000) H1 2023 H1 2022

Financial income
Revaluation gain from financial instruments (derivatives) - 23'122
Derivatives income 1'634 -
Other financial income 613 3
Total financial income 2'247 23'125

Financial expenses
Interest expenses on loans from shareholders - (59)

22 Loan interest expenses

Derivatives expenses
(5'165)
-
(2'643)
(770)
Interest expenses on lease liabilities (275) (279)
Revaluation loss from financial instruments (derivatives) (4'486) -
Other financial expenses (187) (225)
Total financial expenses (10'113) (3'976)

Financial result (7'866) 19'149

The main driver of the H1 2022 positive financial result stemmed from the unrealised
revaluation gain of CHF 23.1 million on derivative financial instruments (interest rate
swaps) to hedge against interest rate risk (versus an unrealised revaluation loss of CHF
4.5 million in H1 2023). For more information about the derivative financial instru-
ments, please refer to Note 19.

Despite the return of SARON into positive territory (from -0.75% in January 2022 to
1.75% by the end of June 2023), total mortgage-secured interest expenses (recorded in
loan interest expenses, derivatives expenses and derivatives income) only marginally
increased by CHF 0.1 million compared to the previous period, principally due to lower
levels of bank debt.

13 Income tax expenses

EPIC Group is subject to income taxes at a federal, cantonal and municipal level. Sig-
nificant estimates are required in determining the liabilities for income and deferred
taxes. There are transactions and calculations for which the ultimate tax determina-
tion is uncertain. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the current tax and
deferred tax liabilities.
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

The taxation of gains from the disposal of properties is subject to a special property
gains tax in cantons with the monistic tax system. The tax rates depend on the length
of time the property is held and can vary significantly. In the calculation of deferred
taxes on investment properties, a residual holding period is estimated for each prop-
erty that reflects EPIC Group’s strategy. If a sale was to be planned, the respective re-
sidual holding period would be applied. Otherwise, the tax payable on these proper-
ties is calculated on the basis of a holding period of a further 10 years after the balance
sheet date. Should the actual holding period for a property deviate from the estimated
holding period, the amount of tax applicable at the time the property is sold may vary
considerably from the deferred tax estimated.

CHF ('000) H1 2023 H1 2022

Current tax expenses 1'378 1'327

Change in deferred net tax liabilities 84 3'413
Total income tax expenses 1'462 4'740

The amount of current tax expenses includes the periodical change in refund of com-
plementary property tax in Vaud (TCHF 117 in H1 2023 and TCHF 137 in H1 2022).

Change in deferred taxes in H1 2022 were higher compared to H1 2023 in particular

due to the unrealised revaluation gain on derivative financial instruments and real es-
tate properties (aggregate revaluation effect of CHF 28.4 million), which was then par-
tially compensated for by the positive effect of certain tax rate reductions (see further
below).

The positive effect of the unrealised revaluation losses of CHF 10.4 million on deriva- 23
tive financial instruments and real estate properties in H1 2023 was mainly compen-
sated for by the additional depreciation on the properties.

The real estate companies owned by the group are subject to the tax laws of the can-
tons in which the properties are located. Under IFRS, the reduced tax rates have been
taken into account for the deferred tax liabilities as soon as they were “substantially
enacted” (IAS 12), since the deferred taxes in IFRS are based on an assumed holding
period of 10 years. The corporate income tax rates on the property income have been
reduced significantly in various cantons under the corporate tax reform as per 1 Janu-
ary 2019 and 2020 (Vaud, Geneva, Glarus and St. Gallen) and as per 1 January 2021
(Zurich). As per 1 January 2022 Aargau reduced its corporate income tax rate (reduc-
tion of the effective tax rate from 18.55% to 17.42%, as per 1 January 2023 from 17.42%
to 16.26% and then further to 15.07% as per 1 January 2024). These reduced rates
were taken into account in the calculation of the deferred taxes. The net impact of the
change in applicable tax rates resulted in a positive effect of approximately TCHF 185
in H1 2023 and CHF 3.3 million in H1 2022.

14 Tenant receivables
CHF ('000) 30 Jun 2023 31 Dec 2022

Rent and ancillary costs receivables 992 1'299

Doubtful debt allowances (63) (48)
Total tenant receivables 929 1'251
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

For tenants with an outstanding balance at the end of the period, EPIC Group calcu-
lated a doubtful debt allowance reflecting the expected credit losses. Balances over-
due by more than 30 days are mostly either provisioned for or secured by a deposit or
guarantee from the tenant.

The age structure of the tenant receivables is as follows:

CHF ('000) 30 Jun 2023 31 Dec 2022

Balance not yet due 616 1'024

Balance overdue by up to 30 days 252 128
Balance overdue between 30 to 120 days 22 19
Balance overdue between 120 to 365 days 17 41
Balance overdue by more than 365 days 85 87
Total rent and ancillary costs receivables 992 1'299

15 Real estate properties

Invest. prop Invest. prop Total
CHF ('000) in operation under D/C1 portfolio

Market value as at 31 Dec 2022 1'447'761 54'121 1'501'882

Acquisition costs as at 1 Jan 2023 1'148'673 37'075 1'185'748

24 New acquisitions - - -
Subsequent expenditures 3'037 15'710 18'747
Acquisition costs as at 30 Jun 2023 1'151'710 52'785 1'204'495

Revaluation as at 1 Jan 2023 299'088 17'046 316'134

Revaluation gains 1'476 3'510 4'986
Revaluation losses (10'585) (286) (10'871)
Revaluation as at 30 Jun 2023 289'979 20'270 310'249

Market value as at 30 Jun 2023 1'441'689 73'055 1'514'744

Invest. prop. under D/C stands for Investment properties under development/construction
1

CHF ('000) 30 Jun 2023 31 Dec 2022

Market value as estimated by the external valuer 1'504'623 1'491'796

Accrued operating lease income (2'954) (3'079)
Sub-total 1'501'669 1'488'717
Right-of-use of the land recognised separately 13'075 13'165
Market value for financial reporting purposes 1'514'744 1'501'882

During the first half year of 2023, EPIC Group invested CHF 18.7 million in its portfolio,
of which CHF 15.7 million in its ongoing development projects, being PULSE (EPiC 23)
and Campus Leman building C (EPiC 19) for CHF 13.3 million and CHF 2.4 million re-
spectively. Regarding the investment properties in operation (CHF 3.0 million), the
biggest investment concerned Provencenter (EPiC 9) (CHF 1.1 million) for the new
façade and a smaller portion for the refurbishment of the basement floors 1 and 2.
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

The valuation of the properties as at 30 June 2023 resulted in a net unrealised revalu-
ation loss of CHF 5.9 million. This was mainly driven by the current market conditions
and an increase in the real discount rate by 5 basis points (average weighted real dis-
count rate was 3.36% as at 30 June 2023 versus 3.31% as at 31 December 2022). The
segment of investment properties under development/construction benefitted from a
net unrealised revaluation gain of CHF 3.2 million mainly due to their progression
while the sectors offices, logistics/industrial and retail show a net unrealised revalua-
tion loss (CHF 4.1 million, CHF 1.5 million and CHF 3.5 million respectively). Assuming
an inflation rate of 1.25% as at 30 June 2023 (1.0% as at 31 December 2022), this corre-
sponds to a nominal discount rate of 4.66% (4.34% respectively).

The differences between capitalised costs (CHF 18.7 million in H1 2023) and the
amounts paid under investments in real estate properties in the consolidated state-
ment of cash flows used in investment activities (CHF 17.0 million) correspond to an
increase or decrease in accrued expenses, payables or receivables for VAT purposes.

Further information on the individual properties can be found at the end of this half-
year report under “Property details” in the annexes.

Details on valuation
The valuation of investment properties is carried out in accordance with the provi-
sions of IFRS 13, under which fair value is defined as the price that would be received
when selling an asset or that would be paid when transferring a liability in an orderly
transaction between market participants on the measurement date. Under IFRS 13,
valuation techniques are categorised into three levels in a fair value hierarchy depend-
ing on the extent to which fair value is based on observable input factors.

Fair value hierarchy 25

Level 1 Quoted (unadjusted) market prices in active markets for identical assets or
liabilities
Level 2 Valuation techniques for which the lowest level of input that is significant to
the fair value measurement is directly or indirectly observable
Level 3 Valuation techniques for which the lowest level of input that is significant to
the fair value measurement is unobservable (usually determined based on
management assumptions)

The valuation of investment properties is carried out using the discounted cash flow
method (DCF), according to which a property’s fair value is determined by calculating
the projected future net income (rental income less operating, maintenance and re-
building costs), discounted to the reporting date. No allowance is made for any possi-
ble transaction cost (such as taxes or transaction fees, for example). Furthermore, the
valuation does not account for any taxation (except of mandatory property taxes) or
financing costs. The net income of operations is discounted individually for each prop-
erty with due allowance for specific opportunities and threats, and with adjustments
in line with prevailing market conditions and risks.

The expected capital expenditures for preserving the building and its structure are
calculated by means of a lifecycle analysis of the individual building elements. The
building structure’s remaining lifespan is estimated and periodic refurbishments mod-
elled based on the general condition of building elements as determined during the
property inspection. Appropriate annual repair costs are calculated accordingly, and
plausibility tested using comparables and Wüest Partner’s own benchmarks. The cal-
culation factors in 100% of expected repair costs in the first 10 years; the proportion
applied from year 11 onwards is limited to the value-preserving investments.

In the case of properties under construction, the construction costs still to be incurred
until completion are considered.
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

The discount rate applied to each property is market-derived and risk-adjusted and is
dependent on individual opportunities and risks. Valuations are performed twice a
year as at 30 June and 31 December (or during the year in case of significant value
changes) by Wüest Partner AG, an external, independent and certified real estate ap-
praiser having experience in the location and type of the investment property being
valued.

As at 30 June 2023 and 31 December 2022, all properties have been individually val-
ued by Wüest Partner AG.

As input factors with a material impact, such as discount rates, market rents and
structural vacancy rates, generally have to be derived from information from less ac-
tive markets, the valuations of all properties were categorised under level 3.

Significant inputs
Determination of the significant inputs used in the valuation:

Rental income
Rents are factored into valuations based on contractually agreed conditions. For rent-
al agreements of limited duration, the potential rental income attainable over the long
term, from the current perspective, is applied in the valuation on expiry of the con-
tractually agreed rental period. Potential rental income that is in line with the market is
determined on the basis of the most recent rental agreements concluded either for
the property concerned or for comparable properties in its immediate vicinity, and of
the comprehensive real estate market research carried out by Wüest Partner AG.

The plausibility of potential rental income from retail space is checked using calcula-
26 tions of market-standard turnover figures. For those existing leases, which include
several different uses, the potential rents are calculated separately for each individual
use. Genuine tenants’ options to extend a lease are considered when actual rents are
less than the market rents determined. Non-genuine options where provisions are in
place for rents to be adjusted in line with market rents prevailing at a specific time are
incorporated into the valuations as fixed-term rental agreements, as described above.
For rental agreements of unlimited duration, adjustments in line with the potential
rental income calculated take account of general conditions under rental law and
property-specific fluctuations.

Operating and maintenance costs

In the case of operating costs, it was assumed that separate ancillary cost statements
are issued and that the ancillary costs are consequently passed on in full or in part to
tenants in line with the lease agreements. Maintenance (servicing and repairs) and re-
building costs are calculated using a building analysis tool that determines the residu-
al life of the individual construction components based on an analysis of the building’s
current condition, models periodic renovations and calculates the associated annui-
ties. The values arrived at are plausibility tested using the cost benchmarks compiled
by Wüest Partner AG.

Construction costs (investment under constructions)

The construction cost estimates are based on the financial forecasts for the individual
projects (where available) and are independently evaluated. Where the construction
costs are already secured by means of service contracts with general and full-service
contractors, these are used in the measurement. Depollution costs are excluded un-
less cost estimates for their removal are available.

Discount rate
Discounting is undertaken for each property in accordance with location and proper-
ty-specific criteria. These reflect both the location-relevant features of the macro and
micro situation and the fundamental parameters of the current market and letting situ-
ation. The discount rates applied are verified empirically based on known changes of
ownership and transaction data.
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

Non-observable inputs
Market rents, vacancy rates and discount rates have been identified as the non-ob-
servable input factors with a material impact. They are summarised in the table below:

Category/level/ Non-observable Ranges

valuation method input factor (weighted average)
30 Jun 2023 31 Dec 2022

Retail Fair value CHF ('000) 574'480 576'900

Level 3
Discount rates (real) (%) 2.8%–3.9% (3.42%) 2.8%–3.85% (3.38%)
DCF
Achievable long-term market CHF 180–CHF 357 CHF 179–CHF 352
rents per m2 and year CHF (CHF 250 per m2 and year) (CHF 249 per m2 and year)
Structural vacancy rates (%) 3.5%–6% (4.93%) 3.5%–5.2% (4.79%)

Offices Fair value CHF ('000) 646'198 648'810

Level 3
Discount rates (real) (%) 2.8%–3.8% (3.17%) 2.65%–3.8% (3.1%)
DCF
Achievable long-term market CHF 278–CHF 359 CHF 273–CHF 359
rents per m2 and year CHF (CHF 304 per m2 and year) (CHF 300 per m2 and year)
Structural vacancy rates (%) 4.29%–7.24% (5.23%) 4.0%–7.2% (5.58%)

Logistics/industrial Fair value CHF ('000) 210'890 211'965

Level 3
Discount rates (real) (%) 3.3%–3.75% (3.62%) 3.3%–3.75% (3.58%)
DCF
Achievable long-term market CHF 85–CHF 232 CHF 85–CHF 232
rents per m2 and year CHF (CHF 105 per m2 and year) (CHF 104 per m2 and year)
Structural vacancy rates (%) 5%–5.8% (5.1%) 5%–5.8% (5.1%)

Under development/ Fair value CHF ('000) 73'055 54'121

27
construction
Discount rates (real) (%) 3.6%–4% (3.87%) 3.6%–4% (3.88%)
Level 3
DCF Achievable long-term market CHF 189–CHF 294 CHF 189–CHF 296
rents per m2 and year CHF (CHF 196 per m2 and year) (CHF 196 per m2 and year)
Structural vacancy rates (%) 4%–5% (4.87%) 5%–5% (5%)

Total portfolio
Level 3
DCF Fair value CHF ('000) 1'504'623 1'491'796

The table below shows the reconciliation between the valuation from the external valu-
er and the fair value for financial reporting purposes per category as at 30 June 2023:

External Accrued operating Right-of-use Market value for

CHF ('000) fair value lease income of land financial reporting

Retail 574'480 574'480

Offices 646'198 (2'954) 13'075 656'319
Logistics/industrial 210'890 210'890
Under development/construction 73'055 73'055
Total 1'504'623 (2'954) 13'075 1'514'744
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

Sensitivity of input factors

Fair value increases with lower discount rates and structural vacancy rates and with
higher market rents. The economic environment can be considered as exerting the
greatest influence on input factors, with the factors outlined above influenced to var-
ying degrees by market developments. Any intensification of pressure on market rents
by negative economic sentiment is usually accompanied by a rise in property vacancy
rates. Low interest rates usually prevail in such market circumstances, which have a
positive impact on discount rates (as long as the property market maintains its attrac-
tiveness in comparison to the bond market). To an extent, therefore, changes to input
factors may offset each other.

The following sensitivity analysis shows the impact of an increase or decrease in the
discount rates used in the DCF valuation. As illustrated in the below table, a general
reduction of 10 basis points in the discount rate would increase the current fair value
of the investment properties as at 30 June 2023 by 3.10% or CHF 46.7 million. A gen-
eral increase of 10 basis points in the discount rate would reduce the current fair value
of the investment properties as at 30 June 2023 by 3.02% or CHF 45.4 million.

Weighted average discount rate (real) Change in market Change in market Market value
Change in basis points value in CHF ('000) value in % in CHF ('000)

+50 3.86% (201'044) (13.36%) 1'303'579

+40 3.76% (165'199) (10.98%) 1'339'424
+30 3.66% (127'472) (8.47%) 1'377'151
+20 3.56% (87'577) (5.82%) 1'417'046
+10 3.46% (45'387) (3.02%) 1'459'236
28
3.36% 1'504'623

–10 3.26% 46'703 3.10% 1'551'326

–20 3.16% 97'157 6.46% 1'601'780
–30 3.06% 150'876 10.03% 1'655'499
–40 2.96% 208'281 13.84% 1'712'904
–50 2.86% 269'696 17.92% 1'774'319

16 Other non-current assets

CHF ('000) 30 Jun 2023 31 Dec 2022

Refund from complementary property tax 5'978 5'861

Total other non-current assets 5'978 5'861

In case of an asset deal, the complementary property taxes (impôt complémentaire or

“CPT”) paid by EPIC Group in the canton of Vaud will be repaid according to the Vaud
tax law (art. 129 LI). However, the total amount to be refunded by the Vaud Tax Admin-
istration will be a maximum of fifteen times the annual property tax (in any case, the
amount to be refunded must not exceed the real estate transfer tax to be paid in con-
nection with the asset deal).
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

17 Current and non-current financial liabilities

CHF ('000) 30 Jun 2023 31 Dec 2022

Mortgage-secured bank amortisation due within 12 months 3'824 4'089

Mortgage-secured bank loans due for extension or repayment - 96'845
Directly attributable financing costs (46) (57)
Accrued mortgage and swap interest 105 127
Lease liabilities 885 890
Total current financial liabilities 4'768 101'894

Mortgage-secured bank loans 613'723 495'032

Directly attributable financing costs (61) (84)
Lease liabilities 12'748 12'902
Total non-current financial liabilities 626'410 507'850

Total financial liabilities 631'178 609'744

Some of the contracts with the banks contain clauses concerning financial covenants
at the level of the Swiss subsidiaries such as loan to value ratios and interest coverage
ratios. As at the reporting dates (and during the periods), EPIC Group was in compli-
ance with its covenant obligations.

All bank loans as at 31 December 2022 coming to maturity in 2023 were renewed as at
30 June 2023. The weighted average residual maturity of the mortgage-secured bank
loans stood at 5.1 years as at 30 June 2023 compared to 4.1 years as at 31 December 29
2022.

CHF ('000) / in % 30 Jun 2023 31 Dec 2022

Total mortgage-secured bank loans 617'547 595'966
Weighted average interest rate at period end 1.3% 1.0%

During the first half year 2023, mortgage-secured bank loans of CHF 115.4 million
were fully or partially repaid including amortisation amounts of CHF 2.4 million. On
the other hand, mortgage-secured bank loans in a total amount of CHF 137.4 million
were drawn, resulting in a net borrowing effect of CHF 22 million.

In order to reduce the bank margin, EPIC Group entered into cross currency (“XCCY”)
swaps (see Note 19 for further details). The related underlying variable loans were
therefore converted from CHF into USD loans and their revaluation at period end re-
sulted in a net unrealised foreign exchange revaluation gain of CHF 0.5 million (split
between “Other financial income” and “Other financial expenses” in the financial re-
sult, see Note 12). The USD/CHF foreign exchange conversion rates are identical at in-
ception and maturity, so that no currency risks will crystallise at the end of the swap
contracts. Only unrealised foreign exchange revaluation losses or gains will be record-
ed at each balance sheet date through profit or loss.

The vast majority of the variable bank debt is based on a 1 to 3-month variable
CHF-SARON interest rate. The variable loans represent 66% of the total mortgage-se-
cured bank liabilities as at 30 June 2023, with margins varying between 0.71% and
1.05% during H1 2023 (taking into account the XCCY swaps). Of the variable loans,
56% was hedged with interest rate swaps as at 30 June 2023. The fixed interest rates
range between 0.75% and 2.27% over H1 2023.
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

In 2021, EPiC 23 signed a loan agreement for CHF 70 million as amended from time to
time in relation to project PULSE in Cheseaux-sur-Lausanne, subject to certain condi-
tions precedent. No amounts were drawn as at 30 June 2023.

The table below indicates the maturity profile of the mortgage-secured bank liabilities
including future interest:

CHF ('000) 30 Jun 2023 31 Dec 2022

Due within 12 months 11'884 106'382
Due within 2 to 5 years 326'331 259'467
Due within 6 to 10 years 295'318 254'218
Due after 10 years 35'712 -
Total mortgage-secured bank loans including future interest 669'245 620'067

18 Accrued expenses and deferred income

CHF ('000) 30 Jun 2023 31 Dec 2022

Accruals for property expenditures 5'460 3'889

Accruals for general expenses 2'215 1'652
Total accrued expenses 7'675 5'541

Rents received in advance 3'399 1'876

30 Down payments for ancillary costs 401 778
Total deferred income 3'800 2'654

Total accrued expenses and deferred income 11'475 8'195

The increase in accrued expenses is mainly driven by higher property expenditures for
works performed in relation to the construction of building C (EPiC 19), which was
launched in April 2023 (CHF 1.6 million). Furthermore, one tenant paid its entire 2023
rent in advance in January 2023 which is the principal driver for the increase in rents
received in advance (CHF 1.2 million representing 6 months of dues).

19 Derivative financial instruments

The fair value of derivative financial instruments (interest rate swaps and cross curren-
cy (“XCCY”) swaps) is calculated at the present value of future cash flows. The interest
rate swaps are used for hedging existing and future loans against rising interest rates
and the XCCY swaps to reduce the bank margin.

In May and June 2023, EPIC Group entered into XCCY swaps with a 3-year maturity
for a total nominal amount of CHF 91.3 million and fixed foreign exchange conversion
rates at inception and maturity, eliminating the crystallisation of any foreign exchange
currency risks.

The variable interest rate on all swaps is based on a 3-month variable CHF–SARON.
As at 30 June 2023, the interest rate swaps have a fixed interest leg of 0.0% (on top of
which the margins of the variable loans are to be added) and the XCCY swaps a mar-
gin of 0.71% on the equivalent CHF nominal amount.
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

The table below summarises the fair value and maturities of the swaps:

CHF ('000) 30 Jun 2023 31 Dec 2022

Within 12 months 7'581 3'336

Within 2 to 5 years 11'515 16'779
After 5 years 3'761 7'229
Total net positive (negative) fair value 22'857 27'344

Total contract value 319'740 228'490

20 Financial risk management

Fair value of financial instruments
EPIC Group uses valuation techniques that are appropriate in the circumstances and
for which sufficient data is available to measure the fair value, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs significant
to the fair value measurement as a whole.

Derivative financial instruments are the only financial instruments measured at fair
value. The fair value of the interest rate swaps and XCCY swaps is calculated as the
present value of future cash flows. Future cash flows are estimated based on forward
interest rates (from observable yield curves at the end of the reporting period) and
contract interest rates, discounted at a rate that reflects the credit risk of the counter-
parties. It can be allocated to level 2 according to the fair value hierarchy described in 31
Note 15.

The carrying value of short-term receivables (including tenant and other receivables)
and payables (trade and other payables) approximate their fair values as discounting is
not material.

The fair value of the fixed interest-bearing mortgage-secured bank loans (CHF 199.8
million) differs from their carrying value excluding issue costs (CHF 209.6 million). The
group has no fixed-rate financial assets or liabilities that are classified at fair value
through profit or loss. Fixed-rate financial instruments are measured at amortised
costs.

Changes in the fair value of interest rate swaps and XCCY swaps are recognised in the
financial result.

Capital management
With total equity of CHF 798.6 million as at 30 June 2023, the group has a solid capital
base (equity ratio of 50.8% as at 30 June 2023 and 52.4% as at 31 December 2022).
Mortgage bank loans (including interest) account for 39.3% of total assets as at 30
June 2023 (38.1% as at 31 December 2022). Covenants are monitored on a regular ba-
sis and reported on quarterly.

EPIC Group aims to achieve a long-term net loan to value ratio (as defined under sec-
tion “Alternative Performance Measures” of this report) of +/- 45% (this ratio equalled
39.7% as at 30 June 2023 and 38.3% as at 31 December 2022). The adjusted net loan
to value ratio (as defined in “Alternative Performance Measures”) amounts to 40.0% as
at 30 June 2023 and 38.7% as at 31 December 2022.
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

21 Share capital and share premium

As at 30 June 2023, the Company’s share capital amounts to CHF 413’203.04, repre-
sented by 10’330’076 shares with a par value of CHF 0.04 fully paid in (the same as at
31 December 2022).

The Company has conditional capital of CHF 7’500 corresponding to 187’500 regis-
tered shares at a nominal value of CHF 0.04 each at its disposal for the purpose of is-
suing shares or options rights to officers and employees of the Company and its group
subsidiaries. No conditional capital was created during the first half year 2023 or in
2022.

The Company has a capital band at its disposal. The Board of Directors is authorised
to increase or reduce the share capital until 26 April 2028 in a range between CHF
371’882.72 and CHF 454’523.36 (capital band). Capital increases and capital reduc-
tions in partial amounts are permitted. If the share capital is increased from condition-
al capital, the upper and lower limits of the capital band increase accordingly. Capital
increases within the capital band shall be effected by issuing share capital in the max-
imum amount of CHF 41’320.32, divided into 1’033’008 registered shares with a nomi-
nal value of CHF 0.04 each or by increasing the nominal value of the issued shares ac-
cordingly. Capital reductions shall be effected by cancelling a maximum of 1’033’008
registered shares with a nominal value of CHF 0.04 each or by reducing the nominal
value of the issued shares in the maximum amount of CHF 41’320.32. The capital band
was introduced in conjunction with the revision of the Swiss stock corporation law
(which entered into force on 1 January 2023) and approved by the Annual General
Meeting of Shareholders on 26 April 2023.

32 The share premium of CHF 435.9 million (gross of any IPO costs) as per the statutory
balance sheet as at 30 June 2023 (CHF 466.9 million by the end of 2022) constitutes
foreign and domestic capital contribution reserves according to art. 5 para. 1 ter and
art. 5 para. 1 quater lit. a of the Swiss Federal Law on Withholding Tax (effective as of 1
January 2020), which are unconditionally free of withholding tax upon distribution.

The foreign capital contribution reserves of CHF 243.6 million as at 30 June 2023
were approved by the Swiss Federal tax Authorities on 14 June 2023, while the Swiss
capital contribution reserves of CHF 192.3 million (pre-issuance costs) were confirmed
on 28 February 2023 under the reservation of the deduction of the issuance costs in
the amount of CHF 8.1 million, net CHF 184.2 million.

As at 30 June 2022, CHF 4.2 million of IPO related costs (of which CHF 0.1 million was
previously capitalised as at 31 December 2021), which represent the portion attributa-
ble to the newly issued shares, have been directly recognised in the equity of the
Company, whereas IPO costs related to the existing shares (CHF 5.9 million) were ex-
pensed mainly in the administrative expenses.

The Company paid from the share premium a dividend of CHF 31.0 million in the first
half year of 2023 (CHF 3.00 per share) and a pre-IPO dividend of CHF 4.5 million in
the first half year of 2022 (CHF 0.60 per share). Both dividend distributions were made
out of the foreign capital contribution reserves.

22 Earnings per share (“EPS”) and NAV per share

Earnings per share and NAV per share are calculated by dividing the reported profit
and shareholders’ equity respectively, by the weighted average number of ordinary
outstanding shares during the period and the number of outstanding shares at period
end respectively.
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

CHF ('000) / in CHF H1 2023 H1 2022

Profit 11'230 38'724

Weighted average number of outstanding shares (in '000) 10'330 8'052
Basic and diluted EPS 1.09 4.81

Profit excluding revaluation effects 20'856 13'546

Basic and diluted EPS adjusted for revaluation effects 2.02 1.68

Profit excluding revaluation effects corresponds to profit after tax before other com-
prehensive income excluding revaluation of properties and derivatives and related de-
ferred taxes as well as any related foreign exchange effects.

The EPRA earnings calculation excludes from the reported profit the mark-to-market
revaluation impacts of the properties and derivatives (see “EPRA Performance Meas-
ures” in the annexes for the reconciliation). In comparison, profit excluding revaluation
effects is adjusted in addition for the unrealised foreign currency fluctuations of the
underlying loans linked to the XCCY swaps (net impact of CHF 0.5 million in H1 2023).

When the profit excluding revaluation effects is adjusted for the one-off IPO costs of
CHF 5.9 million (TCHF 19’420), the corresponding basic and diluted EPS in H1 2022
would have amounted to CHF 2.41 per share.

CHF ('000) / in CHF 30 Jun 2023 31 Dec 2022

Shareholders’ equity 798'616 818'412

33
Number of outstanding shares at period end (in '000) 10'330 10'330
NAV per share 77.31 79.23

Shareholders’ equity before net deferred taxes 913'903 933'732

NAV per share before net deferred taxes 88.47 90.39

The shareholders’ equity before net deferred taxes is calculated as the reported equity
plus (i) the provision for deferred tax liabilities less (ii) deferred tax assets and less (iii)
the Vaud complementary property tax.

Return on equity is based on profit before other comprehensive income and the aver-
age equity, calculated as the ½ sum of the equity at the beginning and end of the re-
porting period.

CHF ('000) / in % 30 Jun 2023 31 Dec 2022

Average equity 808'515 698'139

Return on equity (annualised for H1 2023) 2.8% 8.1%

Return on equity excluding revaluation effects (annualised for H1 2023) 5.2% 4.7%

23 Shareholders
As at the reporting date, the following two principal shareholders held the following
quota (%) of the Company’s share capital: (i) 56.5% – Alrov Properties & Lodgings Ltd,
Tel-Aviv, Israel (“Alrov”) and (ii) 16.1% – EPIC LUXEMBOURG S.A., Luxembourg City,
Grand Duchy of Luxembourg (“EPIC LUX”). EPIC LUX is controlled by a Jersey trust
whose beneficiary is the Greenbaum family. The remaining 27.4% is held by the public.
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

24 Related parties
The related parties encompass the members of the Board of Directors, Group Execu-
tive Management (being the CEO, CFO and Portfolio Director), the Alrov group and
companies controlled by members of the key management personnel. Among the
companies controlled by members of the Board of Directors is European Property In-
vestment Corporation Ltd (London) (“EPIC UK”) (which at the same time is also indi-
rectly held by Alrov and EPIC LUX).

Interest charges accrued to Alrov amounted to CHF 0.1 million for H1 2022 (none in H1
2023). The Alrov shareholders’ loans in a total amount of CHF 6.6 million including any
interest payables were fully repaid in May 2022.

Stefan Breitenstein and Ron Greenbaum signed board membership agreements with
the Company with effective date 1 October 2017, Andreas Schneiter with effective
date 1 April 2020 and Leta Bolli Kennel with effective date 15 March 2022. All board
members were re-elected on 26 April 2023 for another year until the next Annual Gen-
eral Meeting to be held on 25 April 2024.

The total compensation for services rendered by the related parties (consulting fees
and expenses), board members’ and management remuneration can be broken down
as follows:

CHF ('000) Type of services H1 2023 H1 2022

EPIC UK Advisory services - 111

34 Total services by related parties - 111

Short-term employee benefits

– Ron Greenbaum Chairman of the Board 86 51
– Other external board members 128 73
Post-employment benefits 16 7
Total remuneration of the Board of Directors 230 131

Short-term employee benefits 839 678

Share-based payment benefits 160 -
Other long-term benefits 67 -
Post-employment benefits 168 87
Total remuneration of management 1'234 765

Post-employment benefits include the employer social security contributions and

pension contributions (if any).

EPIC UK, of which Ron Greenbaum is a director, rendered strategic management and/
or IPO services to the EPIC Group and charged a total fee of CHF 0.1 million including
travel expenses in the first half year 2022. This arrangement was terminated with
effective date 30 April 2022.

As at 30 June 2023, there were no outstanding balances in relation to the above-men-

tioned services by EPIC UK (TCHF 3.6 as at 30 June 2022).

The Company has adopted a management incentive plan for the Group Executive
Management that came into effect on the first day of trading of the Company and ap-
plies to the year ending 31 December 2022 and 31 December 2023. The plan consists
of two separate bonus schemes. For the first one, the relevant key performance indi-
cator is return on equity, where return on equity is defined as earnings after tax and
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

before revaluation on properties and derivatives (taking into account the related de-
ferred taxes as well as any related foreign exchange effects) (excluding any one-off
IPO costs) divided by the average IFRS equity of each reporting period. For the sec-
ond bonus, the key performance indicator is based on ESG target(s), whose basis of
allocation is determined by the Remuneration and Nomination Committee. Both bo-
nuses are capped and granted half in shares and half in cash. The lock-up period for
the share portion is one year with respect to one third of the granted shares, two years
with respect to another third, and three years for the last third.

Furthermore, the shareholders’ meeting approved in May 2022 a retention arrange-

ment whereby members of Group Executive Management will be entitled to a one-
time loyalty bonus of up to CHF 400’000 in aggregate subject to certain terms and
conditions, including three years of service from 25 May 2022.

25 Events after the reporting date

There were no material subsequent events.

35
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

Property details

Legal entity Property name Address Zip City Canton Ownership

Retail
EPiC 1 Le Forum Place du Marché 6 1820 Montreux Vaud P by F – 50%
EPiC 3 Wiggis-Park Molliserstrasse 41 8754 Netstal Glarus Sole owner
EPiC 3 Florapark Florastrasse 1 8800 Thalwil Zurich P by F – 48%
EPiC 5 Tägipark Jurastrasse 42 5430 Wettingen Aargau Sole owner
EPiC 7 Markt am Bohl Bohl 9 9000 St. Gallen St. Gallen Sole owner
EPiC 10 Uster West Winterthurerstrasse 18 8610 Uster Zurich Sole owner
EPiC 10 "Zänti" Volketswil Im Zentrum 18 8604 Volketswil Zurich Sole owner
EPiC 16 En Noyer-Girod En Noyer-Girod 2–12 1063 Etoy Vaud Sole owner

Offices
EPiC 7 Lake Geneva Center B Route de la Longeraie 7 1110 Morges Vaud Sole owner
EPiC 9 Provencenter Avenue de Provence 82 1007 Lausanne Vaud Sole owner
Owner of building
EPiC 9 Office Building Lutry Rue de Remparts 2 1095 Lutry Vaud Parking – P by F
Hardturmstr. 123/125/127/129
EPiC 9 com.West Förrlibuckstr. 70/72 8005 Zurich Zurich Sole owner

36 EPiC 11 Biopôle Metio & Lysine Route de la Corniche 2–4 1066 Epalinges Vaud
Land lease –
P by F 96.5%
EPiC 12 Lake Geneva Center A Route de la Longeraie 9 1110 Morges Vaud Sole owner
EPiC 16 Biopôle Proline Route de la Corniche 10 1010 Lausanne Vaud Land lease
EPiC 16 Vennes III Chemin des Roches 1a et 1b 1010 Lausanne Vaud Sole owner
EPiC 16 Rue du Tunnel Rue du Tunnel 6, 8, 10 & 12 1227 Carouge Geneva P by F – 13.3%
EPiC 19 Campus Leman – A&B Rue du Docteur Yersin 10 1110 Morges Vaud Sole owner
EPiC 20 Biopôle Serine Route de la Corniche 6, 8 1066 Epalinges Vaud Land lease
EPiC 22 Lancy Office Center Avenue des Morgines 8/10 1213 Petit-Lancy Geneva Sole owner

Logistics/industrial
EPiC 7/ Route du Molliau 30
EPiC 24 En Molliau Rue de la Petite Caroline 13 1131 Tolochenaz Vaud Sole owner
EPiC 9 Vuarpillière Chemin de la Vuarpillière 27/29 1260 Nyon Vaud Sole owner
EPiC 10 Fegistrasse Fegistrasse 9 8957 Spreitenbach Aargau Sole owner
Lagerhausstrasse 9, 10, 12,
EPiC 21 Brunnpark 13, 14, 15, 17, 19 4914 Roggwil Bern Sole owner

SUBTOTAL

Under development/construction
EPiC 19 Campus Leman – C&D Rue du Docteur Yersin 10 1110 Morges Vaud Sole owner
EPiC 21 Brunnpark Steigmatte 2, 8 4914 Roggwil Bern Sole owner
Cheseaux-sur-
EPiC 23 PULSE Chemin du Châtelard 1033 Lausanne Vaud Sole owner

TOTAL PORTFOLIO
EPiC 3 and EPiC 10 (Zänti Volketswil) have land lease rights of 605 m2 and 3’381 m2 respectively which are not included in the table
P by F – Property by floor
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

m2
Total
Construction Renovation Extension Logistics/ Rentable Parking
Year Year Year Land Area Retail Offices industrial Other Area Unit (#)

2000 - - 5'897 9'735 - - 1'585 11'320 193

1996 2002 2008/2014 37'368 21'674 1'324 - 6'170 29'168 627
1993 - 2006 4'913 7'562 - - 50 7'612 183
2003 - 2012 25'405 22'992 - - - 22'992 522
1989 - - 1'086 1'309 816 - 1'303 3'428 -
1914 - 2004 11'545 4'320 2'891 - 1'110 8'321 163
1973 2020 - 20'803 11'324 1'089 - 2'139 14'552 550
2002 - - 20'506 6'746 - - - 6'746 219
127'523 85'662 6'120 - 12'357 104'139 2'457

2006 - - 5'157 - 5'364 - 1'334 6'698 152

1992 2015 - 1'980 - 6'404 - 478 6'882 84

2002 - - 468 - 1'348 - 87 1'435 18

2002 - - 9'938 404 21'408 - 2'756 24'568 154

2008 - - 4'462 646 4'847 - 816 6'309 84

37
2008 - - 6'508 - 5'319 - 1'037 6'356 145
2012 - - 1'776 - 3'127 - 482 3'609 17
2013 - - 4'891 - 5'165 - 380 5'545 76
2017 - - 3'797 - 1'216 - 163 1'379 14
1950 2020 - 6'600 928 8'792 - 1'880 11'600 125
2020 - - 2'075 - 8'319 - 406 8'725 -
2002 - - 7'775 1'225 8'221 - 3'598 13'044 191
55'427 3'203 79'530 - 13'417 96'150 1'060

1972
1967 - - 80'359 - 302 41'897 - 42'199 362
1987 2019 2015 6'007 - 276 7'557 - 7'833 65
1989 - - 11'132 - - 19'079 138 19'217 158

1920 2013 - 79'208 - - 55'037 - 55'037 -

176'706 - 578 123'570 138 124'286 585

359'656 88'865 86'228 123'570 25'912 324'575 4'102

2'449 n/a n/a n/a n/a n/a n/a

29'286 n/a n/a n/a n/a n/a n/a

31’879 n/a n/a n/a n/a n/a n/a

63’614

423’270
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

Additional information about investment properties under development/construction

EPiC 19 – Campus Leman

Buildings C & D Rue du Docteur Yersin 10, 1110 Morges
Description Status of the project Completion

Complete renovation and construction in 3 phases, phase 1 (Buildings A&B) was completed by the end of 2020

Phase 2: Construction of Building C Building permit was received in January 2022. On 31 March 2023, Estimated H1 2025
tenant of Building B exercised its option to take 2 floors out of 6
floors in Building C.
Construction started in April 2023.

Phase 3: Construction of Building D Tenant of Building B has an option to rent this building. Option Estimated 2027
has to be exercised by December 2023. Once the tenant's plans
are known, either the building will be planned together with the
tenant or the development will be carried out alone and the building
offered for rent in the open market.

EPiC 21 – Brunnpark Steigmatte 2–8, 4914 Roggwil

Description Status of the project Completion

Construction of a logistics building Land reserve acquired in March 2021. Project is currently in its feasi- Estimated
bility study phase. A preliminary building permit (“Voranfrage”) will 2026
be submitted in Q3 2023 in order to facilitate the submission of the
definitive building permit.

38 EPiC 23 – PULSE Chemin du Châtelard, 1033 Chesaux-sur-Lausanne

Description Status of the project Completion

Construction of two activity buildings The buildings together will offer circa 43’000 m2 of gross area as well Estimated
as underground parking, storage and technical areas. H1 2025

Depollution and excavation works were completed by the end of

September 2022. A total contractor agreement was signed with
Implenia group on 27 July 2022 for total construction costs capped at
less than CHF 100 million for the current specifications of the project.
Implenia started construction in October 2022.

Expiry of investment properties’ lease contracts based on 30 June 2023 rent before
any incentives

Year Excluding the exercise of any early break option

2023 (6 months) 5.1%

2024 5.1%
2025 8.3%
2026 4.7%
2027 5.5%
2028 7.6%
2029 7.9%
2030 10.5%
2031 12.2%
2032 3.4%
2033+ 29.7%
Total 100.0%
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

Key information for investment properties in operation for H1 2023 by category

Net Net rental Target Implied yield Vacancy Vacancy

Market revaluation operating rent based on as % of as at
value gain (loss) income target rent target rent period end
Category CHF '000 CHF '000 CHF '000 CHF '000 % % m2

Retail 574'480 (3'536) 11'969 13'346 4.6% 4.8% 7'612

Offices 656'319 (4'060) 12'832 15'409 4.7% 5.4% 6'685
Logistics/
industrial 210'890 (1'513) 4'953 5'278 5.0% 0.6% 588
Total 1'441'689 (9'109) 29'754 34'033 4.7% 4.4% 14'885

Net rental Other Total Direct Net operating Yield based on

income income income expenses income (NOI) achieved rent
Category CHF '000 CHF '000 CHF '000 CHF '000 CHF '000 %

Retail 13'294 480 13'774 (1'325) 12'449 4.6%

Offices 14'329 135 14'464 (1'497) 12'967 4.4%
Logistics/
industrial 5'246 114 5'360 (293) 5'067 5.0%
Total 32'869 729 33'598 (3'115) 30'483 4.6%
39
Yield calculations for the period are annualised.
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

EPRA Performance Measures

Summary table EPRA Performance Measures

Measure Unit H1 2023 H1 2022

A EPRA Vacancy Rate % 4.4% 6.5%

B EPRA Earnings CHF ('000) 21'313 13'546

EPRA Earnings per share CHF 2.06 1.68

Unit 30 Jun 2023 31 Dec 2022

C EPRA NRV CHF ('000) 907'517 922'133

EPRA NRV per share CHF 87.85 89.27
EPRA NTA CHF ('000) 828'650 843'841
EPRA NTA per share CHF 80.22 81.69
40 EPRA NDV CHF ('000) 806'888 826'805
EPRA NDV per share CHF 78.11 80.04

A) EPRA Vacancy Rate

CHF ('000) / in % H1 2023 H1 2022
Estimated rental value of vacant space (A) 1'500 2'161
Estimated rental value of the whole portfolio (B) 34'033 33'022

EPRA vacancy rate (A / B) 4.4% 6.5%

The definitions of the above key performance measures can be found at www.epra.com.
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

B) EPRA Earnings and EPRA Earnings per share

CHF ('000) H1 2023 H1 2022

Earnings according to the consolidated statement of profit or loss 11'230 38'724

Adjustments for:
Changes in value of investment properties, development properties
(i) held for investment and other interests 5'885 (5'278)
Profits or losses on disposal of investment properties, development properties
(ii) held for investment and other interests n/a n/a
Profits or losses on sales of trading properties including impairment charges
(iii) in respect of trading properties n/a n/a
(iv) Tax on profits or losses on disposals n/a n/a
(v) Negative goodwill/goodwill impairment n/a n/a
(vi) Changes in fair value of financial instruments and associated close-out costs 4'486 (23'122)
(vii) Acquisition costs on share deals and non-controlling joint venture interests n/a n/a
41
(viii) Deferred tax in respect of EPRA adjustments (288) 3'222
(ix) Adjustments (i) to (viii) above in respect of joint ventures n/a n/a
(ix) Non-controlling interests in respect of the above n/a n/a

EPRA earnings 21'313 13'546

Weighted average number of outstanding shares during the period (in '000) 10'330 8'052

EPRA earnings per share in CHF 2.06 1.68

The definitions of the above key performance measures can be found at www.epra.com.
 EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

C) EPRA Net Asset Value (NAV) and EPRA NAV per share
30 Jun 2023
CHF ('000) EPRA NRV EPRA NTA EPRA NDV
Equity (NAV) according to the consolidated statement
of financial position 798'616 798'616 798'616
Dilution effects n/a n/a n/a
Diluted equity (NAV) 798'616 798'616 798'616

Include:
ii.a) Revaluation of IP (if IAS 40 cost option is used) n/a n/a n/a
ii.b) Revaluation of IPUC (if IAS 40 cost option is used) n/a n/a n/a
ii.c) Revaluation of other non-current investments n/a n/a n/a
iii) Revaluation of tenant leases held as finance leases n/a n/a n/a
iv) Revaluation of trading properties n/a n/a n/a
42 Diluted NAV at fair value 798'616 798'616 798'616

Exclude:
v) Deferred tax in relation to fair value gains of IP 104'673 52'337
vi) Fair value of financial instruments (22'857) (22'857)
vii) Goodwill as a result of deferred tax n/a n/a n/a
viii.a) Goodwill as per the IFRS balance sheet n/a n/a
viii.b) Intangibles as per the IFRS balance sheet (9)

Include:
ix) Fair value of fixed interest rate debt 8'272
x) Revaluation of intangibles to fair value n/a
xi) Real estate transfer tax 27'085 563

EPRA NAV 907'517 828'650 806'888

Fully diluted number of shares (in '000) 10'330 10'330 10'330

EPRA NAV per share in CHF 87.85 80.22 78.11

The definitions of the above key performance measures can be found at www.epra.com.
EPIC Suisse | Half-Year Report 2023 | Notes to the Consolidated Interim Financial Statements

C) EPRA Net Asset Value (NAV) and EPRA NAV per share
31 Dec 2022
CHF ('000) EPRA NRV EPRA NTA EPRA NDV
Equity (NAV) according to the consolidated statement
of financial position 818'412 818'412 818'412
Dilution effects n/a n/a n/a
Diluted equity (NAV) 818'412 818'412 818'412

Include:
ii.a) Revaluation of IP (if IAS 40 cost option is used) n/a n/a n/a
ii.b) Revaluation of IPUC (if IAS 40 cost option is used) n/a n/a n/a
ii.c) Revaluation of other non-current investments n/a n/a n/a
iii) Revaluation of tenant leases held as finance leases n/a n/a n/a
iv) Revaluation of trading properties n/a n/a n/a
43
Diluted NAV at fair value 818'412 818'412 818'412

Exclude:
v) Deferred tax in relation to fair value gains of IP 104'446 52'223
vi) Fair value of financial instruments (27'344) (27'344)
vii) Goodwill as a result of deferred tax n/a n/a n/a
viii.a) Goodwill as per the IFRS balance sheet n/a n/a
viii.b) Intangibles as per the IFRS balance sheet (9)

Include:
ix) Fair value of fixed interest rate debt 8'393
x) Revaluation of intangibles to fair value n/a
xi) Real estate transfer tax 26'619 559

EPRA NAV 922'133 843'841 826'805

Fully diluted number of shares (in '000) 10'330 10'330 10'330

EPRA NAV per share in CHF 89.27 81.69 80.04

The definitions of the above key performance measures can be found at www.epra.com.
 EPIC Suisse | Half-Year Report 2023 | Independent Valuer’s Report

Wüest Partner AG
EPIC Suisse AG Alte Börse
Executive Board Bleicherweg 5
Seefeldstrasse 5a 8001 Zürich
Schweiz
8008 Zurich
T +41 44 289 90 00
wuestpartner.com
Regulated by RICS

Zurich, 25 July 2023

Valuation as of 30 June 2023 – Reference

Independent valuer’s report 105868.2306

Commission
Wüest Partner AG (Wüest Partner) was commissioned by the Executive Board of

44 EPIC Suisse AG (EPIC) to perform a valuation, for accounting purposes, of the

properties directly or indirectly held by EPIC as of 30 June 2023 (reporting date).
The valuation encompasses all investment properties as well as sites and devel-
opment properties.

Valuation standards
Wüest Partner hereby confirms that the valuations were performed in accordance
with national and international standards and guidelines in particular with the In-
ternational Valuation Standards (IVS and RICS/Red Book) and the Swiss Valuation
Standards (SVS) and as well as in accordance with the requirements of the SIX
Swiss Exchange.

Accounting standards
The market values determined for the investment properties conform to the con-
cept of the fair value as defined in the International Financial Reporting Standards
(IFRS) on the basis of IAS 40 (Investment Property) and IFRS 13 (Fair Value Meas-
urement).

Definition of fair value

Fair value is the price that independent market operators would receive as at the
date of valuation if an asset were sold under normal market conditions or the price
that such operators would pay if a liability (debt) were transferred under normal
market conditions (exit price).

An exit price is the selling price postulated in the purchase contract upon which Transaction costs, gross fair
the parties have jointly agreed. Transaction costs, which normally consist of es- value

tate agents' commission, transaction taxes and land registry and notary fees, are
not taken into account when determining fair value. This means that in line with
paragraph 25 IFRS 13, fair value is not adjusted by the amount of the transaction
costs incurred by the purchaser in the event of a sale (gross fair value). This is in
line with Swiss valuation practice.

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EPIC Suisse | Half-Year Report 2023 | Independent Valuer’s Report

Valuation at fair value assumes that the hypothetical transaction involving the as- Main market, active and most
set to be valued takes place on the market with the largest volume and the most advantageous market

business activity (main market) and that the frequency and volume of transactions
are adequate for there to be sufficient price information available for the market
(active market). If no such market can be identified, it will be assumed that the
asset is being sold on the main market, which would maximize the assets selling
price on disposal.

Implementation of fair value

Fair value is calculated on the basis of the best possible use of a property (highest Highest and best use
and best use). The best possible use of a property is that which maximizes its
value. This assumption presupposes a use, which is technically and physically
possible, legally permitted and financially realizable. As fair value is calculated on
the basis of maximization of use, the best possible use may differ from the actual
or planned use. In the assessment of fair value, future investment spending for
the purpose of improving a property or increasing its value will be taken into ac-
count accordingly.

The use of the highest and best use approach is based on the principle of the Materiality in relation to the high-
materiality of the possible difference in value in terms of the ratio of the value of est and best use approach
the specific property to the total real estate assets and in terms of the possible
absolute difference in value. A property's potential added value within the usual
estimating tolerance of a specific valuation is regarded as immaterial in this con- 45
text and is therefore disregarded.

Fair value is determined according to the quality and reliability of the valuation Fair value hierarchy
parameters, in order of diminishing quality/reliability: Level 1 market price, Level 2
modified market price and Level 3 model-based valuation. At the same time, when
a property is valued on the basis of fair value, different parameters may be applied
to different hierarchies. In this context, the total valuation is classed according to
the lowest level of the fair value hierarchy in which the material valuation parame-
ters are found.

The value of the properties of EPIC is determined using a model-based valuation Valuation level for property
according to Level 3 on the basis of input parameters, which cannot be directly valuations

observed on the market. Here too adjusted Level 2 input parameters are used (e.g.
market rents, operating/maintenance costs, discounting/capitalization rates, pro-
ceeds of sales of residential property). Non-observable input factors are only used
where relevant observable input factors are not available.

The valuation approaches used are those that are appropriate under the given Valuation approach
circumstances and for which sufficient data are available to determine fair value.
At the same time, the use of relevant observable input factors is maximized, while
the use of non-observable input factors is minimized. In the case of the present
valuation procedure, an income-based approach is applied, using discounted
cash flow valuations, which are widespread in Switzerland.

Market rents, vacancy levels and discount rates are defined as significant input Significant input factors,
factors. These factors are influenced to a varying degree by market develop- influence on fair value
ments. If the input factors change, the property’s fair value also changes. For each
input factor, these changes are simulated on the basis of static sensitivity anal-
yses. Owing to interdependence between the input factors, their effects on fair

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 EPIC Suisse | Half-Year Report 2023 | Independent Valuer’s Report

value may either offset or potentiate each other. For example, the effect of re-
duced market rents combined with higher vacancies and higher discount rates
will have a cumulative negative impact on fair value. However, as the portfolio is
diversified geographically and by properties, changes to input factors seldom ex-
ert a cumulative effect in the short term.

The most important factor influencing the input factors is the economic environ-
ment. If a negative mood in the economy increases the pressure on market rents,
vacancies in real estate usually increase as well. At the same time, however, such
market situations might result in a favourable, i.e. low, interest rate level, which
has a positive effect on the discount rates. Thus, a certain compensation of the
input factors can be assumed. Ongoing optimisation measures for properties (e.g.
conclusion/extension of long-term leases, investments in the expansion of rental
space, etc.) prevent such short-term market shocks, which mainly affect the fac-
tors of market rents and vacancies. As mentioned above, the individual risk-ad-
justed discount rate of the property follows the yield expectations of the respec-
tive investors or market participants and can only be influenced by the owner to a
limited extent.

Valuation method
In valuing EPIC's real estate holdings, Wüest Partner applied the discounted cash

46 flow (DCF) method, by which the market value of a property is determined as the
total of all projected future (infinity) net earnings discounted to the date of valua-
tion. Net income is discounted separately for each property with due allowance
for specific opportunities and threats, and adjustment in line with market condi-
tions and risks.

Basis of valuation
Wüest Partner is familiar with all the properties, having carried out inspections and
examined the documentation provided. The properties have been analyzed in de-
tail in terms of their quality and risk profiles (attractiveness and rentability of
rented premises, construction type and condition, micro- and macro-location
etc.). Currently vacant premises are valued with allowance made for a reasonable
marketing period and incentives if market driven. Wüest Partner inspects proper-
ties at least every three years, as well as after a purchase and after completion of
major refurbishment and investment projects.

Changes in portfolio composition

No purchases, sales or reclassifications were made during the reporting period
from 1 January 2023 to 30 June 2023.

Results
As of 30 June 2023, Wüest Partner valued a total of 25 properties. Following the
split of two properties (EPiC 19 & EPiC 21) into two segments according to the
stage of completion of the different development phases and following the group-
ing of the two properties in Tolochenaz (EPiC 7 & EPiC 24), Wüest Partner carried
out a total of 28 valuations (25 in the segment «Investment properties in opera-
tion» and 3 in the segment «Investment properties under development/construc-
tion»).
The market value of all 25 properties is estimated at 1,504,623,000 Swiss Francs
as of 30 June 2023.

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EPIC Suisse | Half-Year Report 2023 | Independent Valuer’s Report

C hange in value w ithin the rep orting p eriod (like -for-like; excl. developm ents)1
As at the reporting date of 30 June 2023, the fair value of the investment proper-
ties in operation already valued on the reporting date of 31 December 2022 («like-
for-like») amounts to 1,431,568,000 Swiss Francs. Compared to the reporting date
31 December 2022, this corresponds to a gross change in value (before deduction
of investments made in the reporting period) of approximately -0.4% and a net
change in value (after deduction of investments made in the reporting period) of
approximately -0.6%.

Independence and confidentiality

Wüest Partner performed the valuation of EPIC's real estate holdings inde-
pendently and neutrally in conformity with its business policies. It was carried out
solely for those purposes specified above. Wüest Partner shall accept no liability
in respect of third parties.

Evaluation fee
The fee of the valuer's services is independent of the valuation results. The rate is
based upon the numbers of the valuations performed and the size and type of
property. Thus, the amount of the fee does not depend on the results of the valu-
ations.

Wüest Partner AG 47
Zurich, 25 July 2023

Moritz Menges MRICS Patrik Schmid MRICS

Director Partner

1 This information is to be understood independently of the effective IFRS accounting used in EPIC
consolidated financial statements and does not include the properties in the segment «Investment
properties under development/construction».

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 EPIC Suisse | Half-Year Report 2023 | Independent Valuer’s Report

Annex: Valuation assumptions

With regard to the significant input factors, the following ranges for the discount
rates, achievable long-term market rents and structural vacancy rates were ap-
plied to the property valuations:

Weighted
Asset class / Valuation method Fair value Input factors Minimum Maximum
average
in 1,000 CHF
Retail 574’480 Discount rates (real) Percent 2.80% 3.42% 3.90%
Level 3 Achievable long-term market rents CHF/m2 p.a. 180 250 357
DCF Structural vacancy rates Percent 3.50% 4.93% 6.00%
Offices 646’198 Discount rates (real) Percent 2.80% 3.17% 3.80%
Level 3 Achievable long-term market rents CHF/m2 p.a. 278 304 359
DCF Structural vacancy rates Percent 4.29% 5.23% 7.24%
Logistics/Industrial 210’890 Discount rates (real) Percent 3.30% 3.62% 3.75%
Level 3 Achievable long-term market rents CHF/m2 p.a. 85 105 232
DCF Structural vacancy rates Percent 5.00% 5.10% 5.80%
Under development/construction 73’055 Discount rates (real) Percent 3.60% 3.87% 4.00%
2
Level 3 Achievable long-term market rents CHF/m p.a. 189 196 294
DCF Structural vacancy rates Percent 4.00% 4.87% 5.00%

Calculation

Averages as well as minima and maxima were calculated at the level of entire properties, i.e. aggregated over all rental objects of a property.

48 The valuations were based on the following general assumptions:

— The rent rolls from EPIC used in the valuation are dated 1 July 2023.
— A two-phase DCF model was adopted. The valuation period extends from the
valuation date to infinity with an implied residual value in the eleventh period.
— Discounting is based on a risk-adjusted interest rate. Rates are determined in-
dividually for each property on the basis of appropriate benchmarks derived
from arm's-length transactions. They may be broken down as follows: risk-free
interest rate + property risk (immobility of capital) + premium for macro-location
+ premium for micro-location depending on use + premium for property quality
and income risk + any other specific premiums. Real discount rates range be-
tween 2.80% and 4.00% depending on the property, use and location (please
see table above).
— Unless otherwise stated, the valuations assume 1.25% annual inflation for in-
come and all expenditure. Where a nominal discount rate is applied, this is ad-
justed accordingly.
— Credit risks posed by specific tenants are not explicitly factored into the valua-
tion.
— Specific indexations of existing leases are taken into account on an individual
basis. After expiry of the contracts, an indexation level of 100 per cent is as-
sumed.
— For existing tenancies, the timing of individual payments is assumed to comply
with the terms of the lease. Following lease expiry, cash flows for commercial
premises are taken to be quarterly in advance.
— In terms of running costs, entirely separate service charge accounts are as-
sumed, with no tenancy-related ancillary costs to be borne by the owner.
— The maintenance (repair and upkeep) costs were calculated using a building
analysis tool. This tool is used to estimate the remaining lifespan of individual
components based on their present condition, to model periodic refurbish-
ments and to calculate the associated annuity. The calculated values are
checked for feasibility using cost benchmarks derived from Wüest Partner sur-
veys.

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EPIC Suisse | Half-Year Report 2023 | Independent Valuer’s Report

The following, additional assumptions were applied to the valuations of the devel-
opment properties and the investment properties under construction:
— The background data provided by EPIC has been verified and, where appropri-
ate, adjusted (e.g. plot ratio, lettable areas, deadlines/development process,
letting/absorption).
— The valuations undergo independent earnings and cost assessment and yield
analysis.
— It is assumed that construction cost certainty has been achieved through the
agreement of general contracts and design-and-build contracts.
— Allowance is made in the construction costs for enabling works where these are
known (e.g. remediation of contaminated sites, demolitions, infrastructure).
— The construction costs include the usual incidental costs, excl. construction fi-
nancing. This is implicit in the DCF model.
— Allowance is made for value-relevant services previously provided by third par-
ties or EPIC, insofar as these are known.
— The posted construction costs of development properties and investment prop-
erties under construction are calculated exclusive of value-added tax if appli-
cable (commercial use).
— The valuations do not contain latent taxes.

49

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 EPIC Suisse | Half-Year Report 2023 | Alternative Performance Measures

Alternative Performance Measures

Adjusted vacancy rate (properties in operation) Reported vacancy rate (properties in operation) adjusted for
absorption and strategic vacancy in certain properties in opera-
tion (for 30 June 2023 and 31 December 2022 Zänti Volketswil and
Biopôle Serine)
Adjusted net LTV ratio Ratio of net debt to the market value of total real estate properties
excluding the right-of-use of the land

EBIT Earnings before interest and tax corresponds to EBITDA after

depreciation and amortisation

EBITDA or EBITDA (incl. revaluation of properties) Earnings before interest, tax, depreciation and amortisation
including net gain (loss) from revaluation of properties

EBITDA (excl. revaluation of properties) Earnings before interest, tax, depreciation and amortisation
excluding net gain (loss) from revaluation of properties
EBITDA (excl. revaluation of properties) margin EBITDA (excl. revaluation of properties) divided by total income
EBITDA (excl. revaluation of properties) yield EBITDA (excl. revaluation of properties) divided by the fair value
of total real estate properties
FFO yield (IFRS) FFO divided by IFRS NAV as at the respective date
Funds from operations (FFO) EBITDA (excl. revaluation of properties) less financial
50 expenses and less cash tax and before capital expenditure
and mortgage-secured bank debt amortisation
IFRS NAV Total equity as shown in the consolidated statement of
financial position
IFRS NAV (before net deferred taxes) IFRS NAV excluding deferred tax liabilities, deferred tax assets
and other non-current assets (corresponding to the complem-
entary property tax in canton of Vaud)
Internal rate of return (IRR) Total shareholder return (IRR) is IFRS NAV appreciation and
dividends paid expressed as an annualised percentage (using
the IRR formula from Excel)
Net debt Total debt net of cash and cash equivalents
Net loan to value (LTV) ratio Ratio of net debt to the market value of total real estate properties
including the right-of-use of the land
Net operating income (NOI) Rental income from real estate properties plus other income less
direct expenses related to properties
NOI margin NOI divided by total income
NOI yield (total portfolio) NOI divided by the fair value of total real estate properties
Net rental income Rental income from real estate properties on the statement
of profit and loss
Net rental income yield (properties in operation) Net rental income of investment properties in operation divided
by the fair value of investment properties in operation (classified
as such) during the period (i.e. before any period-end transfers
between categories)
Net rental income yield (total portfolio) Net rental income of the total portfolio divided by the fair value of
total real estate properties
Net rental operating income (NROI) Rental income from real estate properties less direct expenses
related to the properties
Profit (excl. revaluation effects) Profit after tax before other comprehensive income excluding re-
valuation of properties and derivatives and related deferred taxes
as well as any related foreign exchange effects
Reported vacancy rate (properties in operation) Vacancy of the properties in operation divided by target rental
income of the properties in operation for the reporting period
EPIC Suisse | Half-Year Report 2023 | Alternative Performance Measures

Return on equity (excl. revaluation effects) Profit after tax before other comprehensive income excluding
revaluation of properties and derivatives and related deferred
taxes as well as any related foreign exchange effects divided by
the average IFRS NAV. The average IFRS NAV corresponds to ½
of the sum of the IFRS NAV at the beginning and at the end of the
reporting period
Return on equity (incl. revaluation effects) Profit after tax before other comprehensive income divided by
the average IFRS NAV. The average IFRS NAV corresponds to ½
of the sum of the IFRS NAV at the beginning and at the end of the
reporting period
Total debt Total of mortgage-secured bank loans and shareholders’ loans
Vacancy Sum of the target rental income of vacant units
WAULT (weighted average unexpired lease term) Weighted average unexpired lease term (in number of years)
calculated as the sum-product of lease maturities based on
contract expiration and corresponding rental income divided by
the total rental income, excluding early breaks, adjusted for rent-
al contracts that terminated during the relevant financial period
and with annualised contractual rental income for rental contracts
that started during the relevant financial period

51
 EPIC Suisse | Half-Year Report 2023 | Investor Relations Information

Investor Relations Information

Agenda
23 November 2023 Publication of selected numbers – YTD 30 September 2023
25 March 2024 Publication Annual Report 2023
25 April 2024 Annual General Meeting of Shareholders 2024
May 2024 Publication of selected numbers – YTD 31 March 2024
August 2024 Publication Half-Year Report 2024

Information regarding registered

shares as at 30 June 2023
Number of outstanding shares 10’330’076 registered shares with nominal value of CHF 0.04 each
Listing SIX Swiss Exchange since 25 May 2022

52 Swiss Security Number (Valorennummer) 51613168

ISIN number CH0516131684
Ticker symbol EPIC
Market capitalisation CHF 640.5 million
Closing price end of period CHF 62.00

Other information
Accounting standard IFRS
Auditors KPMG AG, CH-Zurich
Independent valuation expert Wüest Partner AG, CH-Zurich
Share register areg.ch ag, CH-Hägendorf

Contact addresses
Media and Investor contact Valérie Scholtes
Chief Financial Officer
+41 44 388 81 00
[email protected]
Address details EPIC Suisse AG
Seefeldstrasse 5a
CH-8008 Zurich
+41 44 388 81 00
EPIC Suisse | Half-Year Report 2023 | Imprint/Disclaimer

Imprint/Disclaimer

53

Disclaimer and declaration of forward-looking statements

This publication may contain specific forward-looking statements, e.g. statements including terms like “be-
lieve”, “assume”, “expect”, “forecast”, “project”, “may”, “could”, “might”, “will” or similar expressions. Such for-
ward-looking statements are subject to known and unknown risks, uncertainties and other factors which may
result in a substantial divergence between the actual results, financial situation, development or performance
of EPIC Suisse AG and those explicitly or implicitly presumed in these statements. Against the background of
these uncertainties, readers should not rely on forward-looking statements. EPIC Suisse AG assumes no re-
sponsibility to update forward-looking statements or to adapt them to future events or developments.
All of the publications and further information are available at www.epic.ch.

EPIC Suisse AG uses certain key figures to measure its performance that are not defined by IFRS. These alterna-
tive performance measures may not be comparable to similarly titled measures presented by other companies.
Additional information on these key figures and alternative performance measures can be found on page 50 of
this report.

Imprint
Publisher EPIC Suisse AG, Zurich
Concept/Design/Realisation/Editorial Neidhart + Schön Group, Zurich
Tolxdorff Eicher Aktiengesellschaft, Horgen
Cover © Urs Pichler, Adliswil
© EPIC Suisse AG 2023
EPIC Suisse AG
Seefeldstrasse 5a
8008 Zurich
+41 44 388 81 00
[email protected]