38 slides from Impact Developer & Contractor Sa's investor presentation, August 2022
Slide 1: Leader in sustainable real estate development
Leader in sustainable real estate development Investor Presentation August 2022
Slide 2: IMPACT: 30+ Years of Development
IMPACT: 30 + YEARS OF DEVELOPMENT IMPACT completed 17 projects along time. Real estate market 1995-2001 2002-2010 2007-2019 2018 - 2021 IMPACT starts the first Completion of three phases IMPACT sets footprint in Development of residential & residential community of GREENFIELD BANEASA the upper-class
Slide 3: IMPACT at a Glance
IMPACT AT A GLANCE Years of market experience 30+ Listed on BVB since 1996 • IMPACT the first real estate developer in Romania since 1991 No. of projects delivered 17 • Listed on the Bucharest Stock Exchange since 1996. No. of units delivered to date 4500+ • Issuer of the first corporate bonds. • IM
Slide 4: Sustainable Growth Strategy
SUSTAINABLE GROWTH STRATEGY Sustainability Geographic expansion & Financing focus portfolio diversification optimization Next generation development Market-aligned approach Diversified financing approach • At the forefront of sustainable • Focus on affordable residential • Green Bonds issuance - foc
Slide 5: Build a Strong Presence in Key Cities
BUILD A STRONG PRESENCE IN KEY CITIES Already operating in the main cities like Bucharest, Iași, Constanța Further expansion to Timișoara, Brașov, Cluj Diverse project portfolio including CLUJ residential, retail, hotel and commercial real estate BRASOV Attractive landbank in high-demand loc
Slide 6: Key elements of an affordable-medium segment project
Key elements of an affordable- medium segment project • Attractive locations in the most important cities, near green neighborhoods, within city limits or in proximity; • Large land plots of 10-50 ha in areas of those cities with significant growing demand and high employer concentration; • High qua
Slide 7: Leading Sustainable Real Estate Developer in Romania
LEADING SUSTAINABLE REAL ESTATE DEVELOPER IN ROMANIA Mission Vision We Create COMMUNITIES We Build SUSTAINABLE Our mission is to positively impact people’s lives by We strive to become the leading Residential Real developing communities with focus on sustainability, Estate Developer in the region th
Slide 8: Making a Difference Through Sustainable Development
MAKING A DIFFERENCE THROUGH SUSTAINABLE DEVELOPMENT Residential development approach IMPACT sustainability goals • Focus on sustainable large-scale residential projects • Educate the market and expand the concept of intelligent and environmental-friendly housing in Romania IMPACT sustainability feat
Slide 9: Fully Committed to Best Practices in ESG
FULLY COMMITTED TO BEST PRACTICES IN ESG 30 years on the real estate market demonstrate Sustainability lies in the operating policy of the power to adapt to the globalization context IMPACT Group and our flagship projects are and the continuous improvement of the a living proof. Taking care of the 3
Slide 10: Group Structure
GROUP STURCTURE NEW! Acquisition of a construction company Agreement for the takeover of 51% of the shares of RCTI Company, an important player in the Romanian construction market.* * The completion of the transaction is conditioned by the approval of the Competition Council. 10
Slide 11: Strategy Implementation Led by a Diverse Executive Team
STRATEGY IMPLEMENTATION LED BY A DIVERSE EXECUTIVE TEAM CONSTANTIN SEBEȘANU CLAUDIU BISTRICEANU SORIN APOSTOL OVIDIU GRINICI CEO CFO EXECUTIVE DIRECTOR SALES & MARKETING DIRECTOR 25+ years of experience in 20+ years as business 20+ years of financial 10+ years of experience in top management, projec
Slide 12: Upward Development of the Share Price
UPWARD DEVELOPMENT OF THE SHARE PRICE IMPACT share price history vs Capital markets highlights* BET since 2017 • Multiple times higher performance than market index BET since 2017 • RON 1.13 bn market capitalization (EUR 229 mn) as of July 2022, • 2,323 mn shares and RON 580 mn share capital, follow
Slide 13: Stock Exchange Indexes
STOCK EXCHANGE INDEXES Ticker Name Index Weight (%) BET-BK Bucharest Exchange Trading Benchmark Index 0.95 BET-XR Bucharest Exchange Trading Extended Index 0.42 BET-XT-TR Bucharest Exchange Trading Extended Total Return 0.41 BET-XT-TRN Bucharest Exchange Trading Extended Net Total Return 0.41 BETPlu
Slide 14: Residential Market
RESIDENTIAL MARKET KEY DEMAND OVERVIEW RESIDENTIAL STOCK HIGHLIGHTS IN ROMANIA IN ROMANIA • Romania is the European • Great potential for demand in • Room for consistent new country with the highest Owner terms of residential market in deliveries during the next Occupation Rate (95.8% at the Romania
Slide 15: Interest for Pre-Sales
INTEREST FOR PRE-SALES Average selling price for sold Pre-Sold residential units residential units (EUR/sqm) 550 70,000 1,440 1,381 500 509 1,297 60,000 441 450 1,021 1,013 50,000 867 790 400 40,000 350 226 30,000 300 250 20,000 25,809 46,648 58,388 2016A 2017A 2018A 2019A 2020A 2021A Q1'22A 200 10,
Slide 16: Market Trends
MARKET TRENDS H1 - 2022 OPORTUNITIES IMPACT ACTIONS • Significant increase in sales in the • Given demand, the decline in bank • Launch of SPATZIOO, the first 2 months due to higher loan purchases is generating property & facility management demand following the increase of significant growth for re
Slide 17: Our Projects
OUR PROJECTS MIDDLE - UPPER AFFORDABLE PROJECTS PROJECTS 17
Slide 18: Greenfield Băneasa Residence & Plaza
6.000+ units, Greenfield Băneasa Residence & Plaza District 1, Bucharest Residence Plaza Headquarter COMPLETED UNITS 2,580 STARTING DATE 2020 STARTING DATE 2020 SOLD UNITS1 2,563 COMPLETION DATE Q2 2022 COMPLETION DATE Q1 2022 UNDER CONSTRUCTION TOTAL GBA (sqm) 7,364 TOTAL GBA (sqm) 1,200 UNITS2 1,2
Slide 19: Luxuria Expoziției Residence
630 units, Luxuria Expoziției Residence District 1, Bucharest STARTING DATE 2018 COMPLETION DATE 2021 COMPLETED UNITS 630 SOLD UNITS1 58% - 367 GBA (sqm) 66,400 GDV (‘000€) 67,218 Except for GDV and Gross Margin that are 2022-2027 estimations, the rest of the figures are total project estimates. 19
Slide 20: Greenfield Copou Residence & Plaza
1.062 units, Greenfield Copou Residence & Plaza Iași Residence Plaza STARTING DATE 2022 STARTING DATE 2022 COMPLETION DATE 2025 COMPLETION DATE 2024 PIPELINE UNITS 1,062 TOTAL GBA (sqm) 3,975 - Commercial (sqm) 1,830 GBA (sqm) 99,055 - Wellness (sqm) 2,145 GDV (‘000€) 154,856 GDV (‘000€) 8,745 Excep
Slide 21: Boreal Plus
691 units, Boreal Plus Constanța Residence STARTING DATE 2020 COMPLETION DATE 2026 UNITS UNDER CONSTRUCTION 341 PIPELINE UNITS 332 GBA (sqm) 63,658 GDV (‘000€) 78,431 Except for GDV that are 2022-2027 estimations, the rest of the figures are total project estimates. 21
Slide 22: Luxuria City Center
Mix project Luxuria City Center District 1, Bucharest Commercial Residence 5* Hotel & suites STARTING DATE 2023 STARTING DATE 2023 STARTING DATE 2023 COMPLETION DATE 2024 COMPLETION DATE 2027 COMPLETION DATE 2025 TOTAL GBA (sqm) 20,000 TOTAL GBA (sqm) 8,000 PIPELINE UNITS 596 ROOMS AND APPARTMENTS 3
Slide 23: Greenfield West Residence & Plaza
5,528 units, Greenfield West Residence & Plaza District 6, Bucharest Residence Plaza STARTING DATE 2023 STARTING DATE 2023 COMPLETION DATE 2028 COMPLETION DATE 2025 PIPELINE UNITS 5,528 TOTAL GBA (sqm) 7,258 - Commercial (sqm) 3,484 GBA (sqm) 494,040 - Wellness (sqm) 3,774 GDV (‘000€) 301,306 GDV (‘
Slide 24: Pipeline
4,485 units, PIPELINE National New potential projects STARTING DATE 2024 COMPLETION DATE 2030 PIPELINE UNITS 4,485 GBA (sqm) 410,140 GDV (‘000€) 162,451 New potential projects represent new projects for which land has been identified but not yet acquired. Except for GDV that are 2022-2027 estimation
Slide 25: Continued Commitment to Deliver Top-Line Growth
CONTINUED COMMITMENT TO DELIVER TOP-LINE GROWTH • In Q1 2022 the gross margin increased P&L considerably to 45%, compared to 29% in Q1 2021, with gross profit having a consistent RON thousand Q1 2022 Q1 2021 Var % increase, up to 49%. Sales from residential 37,491 39,397 (5%) property • Revenues are
Slide 26: Strong Balance Sheet
STRONG BALANCE SHEET • Tangible assets increased by 15% compared to December 31, 2021 following the acquisition of 1,891 RON thousand Mar 31, 2022 Dec 31, 2021 Var % sqm plot in the Greenfield Băneasa Non-current assets, of which 599,274 587,318 2% area. Investment property 581,580 571,882 2% • Inve
Slide 27: Key Performance Indicators
KEY PERFORMANCE INDICATORS Total adjusted assets EPRA Net Reinstatement Value (th EUR) (in EUR thousand) 295,692 293,399 220,039 248,343 209,281 228,137 188,425 171,212 Dec-19 Dec-20 Dec-21 Mar-22 Dec-19 Dec-20 Dec-21 Mar-22 Landbank – 738.200 sqm SQM under construction = Square meters under constru
Slide 28: Land Bank
Land bank Details on land bank Area of IFRS Market value Market value 31 Mar 2022 As of 31 Mar 2022 As of 31 Mar 2022 As of 31 Mar 2022 sqm thousand EUR thousand EUR thousand EUR/sqm Bucharest -Greenfield Baneasa to be developed 193 44,497 44,497 230 Bucharest - Greenfield Baneasa Plaza under develo
Slide 29: Residential Development Pipeline
RESIDENTIAL DEVELOPMENT PIPELINE GDV Under Project Geo Project Total Pipeline Construction Estimated construction 2022-2027 Name GBA City Units Units Sqm Units Sqm Start Delivery Th. Eur Location Phases Sqm Greenfield Băneasa Phases 1,2,3 București 68.953 732 732 68.953 2021 2023 94.184 Greenfield B
Slide 30: Financing Mix as of March 2022
FINANCING MIX AS OF MARCH 2022 Debt-to-Total Assets 20% Project Finance 32% 32% Bonds 36% Corporate Loans Debt = Debt as of 31 March 2022 Total Assets = Assets Adjusted to Fair Value According to EPRA guidelines as of 31 March 2022 30
Slide 31: Main Forecast Assumptions
MAIN FORECAST ASSUMPTIONS Key assumptions summary Target ratios • Our estimated forecast figures are based primarily on development of own land bank. • Financing estimates: 40% 3.5 • Min. €50 mil equity increase (of Debt-to-Assets 1 Avg. Debt-to-EBITDA2 which €12 mil. already raised in Jan 2022) • U
Slide 32: Forecast
Forecast Consolidated statement of profit and loss EURO thousand 2022 F 2023 F 2024 F 2025 F 2026 F 2027 F Total Revenue from residential inventories 102,551 108,447 115,916 245,636 339,881 400,632 1,313,063 Costs of residential inventories (66,946) (67,152) (68,883) (149,375) (212,113) (243,834) (8
Slide 33: Investment Program 2022
INVESTMENT PROGRAM 2022 In order to support our Greenfield Baneasa Greenfield Copou development strategy we aim for an investment program of: Residence Up to EUR 50 mn capital increase By issuing shares according to the shareholders' decision of August 20, 2021 Up to EUR 100 mn in bonds By issuing g
Slide 34: Forecast
Forecast Consolidated statement of profit and loss Net profit margin % 30% 28% 26% 23% 21% Total 387.5 18% 2022 F 2023 F 2024 F 2025 F 2026 F 2027 F The forward-looking statements in this presentation are based on numerous assumptions regarding the Company’s present and future business strategies an
Slide 35: 2022-2027 Strategic Targets
2022-2027 STRATEGIC TARGETS 100+ 40+ thousand sqm currently in thousand commercial sqm to be construction developed 1,300+ ~500 mil EUR thousand residential sqm to be estimated gross margin developed >1.3 bn EUR gross development value 35
Slide 36: Six Reasons to Invest With Us
SIX REASONS TO INVEST WITH US SOLID EXPERIENCE VALUABLE PORTFOLIO 30 years of expertise in the development of Residential communities developed in green flagship real estate projects, building areas of large cities and own land bank with communities & pioneering in the Romanian increasing market val
Slide 37: Disclaimer
Disclaimer This presentation does not constitute or form part of, and should not be construed as, any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of IMPACT DEVELOPER & CONTRACTOR S.A. (the "Company")
Slide 38: Stay in touch with us!
CONTACT: Teodora Dănilă Head of ESG & Investor Relations ir@impactsa.ro +40 729 100 144 Stay in touch with us!