Impact Developer & Contractor Sa · BVB:IMP
Impact Developer & Contractor Sa — WOOD Conference September 2022
56 slides from Impact Developer & Contractor Sa's conference presentation, September 2022
Slide 1: Leader in sustainable real estate development
Leader in sustainable real estate development WOOD Conference September 2022
Slide 2: 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 3: 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 Development of Completion of IMPACT sets footprint first residential residential & three phases of in the upper-class community in commercial GREE
Slide 4: Group structure
GROUP STRUCTURE RCTI Company Bergamot 0,01% Developments Greenfield Property Management SRL 51% 99,99% 100% 99% Bergamot Developments Greenwise Development 99% IMPACT Phase II 1% Developer & Contractor SA 6,23% 99% Spatzioo Greenfield Copou Management SRL 100% Residence Phase II 99% 99% 93,77% Clear
Slide 5: Making a difference through sustainable development
MAKING A DIFFERENCE THROUGH SUSTAINABLE DEVELOPMENT Residential development approach IMPACT sustainability goals • Focus on sustainable residential projects, no matter their size; • Educate the market and expand the concept of intelligent and environmental-friendly housing in Romania; • Invest in su
Slide 6: Fully committed to best practices in ESG
FULLY COMMITTED TO BEST PRACTICES IN ESG 30 years on the real estate market Sustainability lies in the operating policy demonstrate the power to adapt to the of IMPACT Group and our flagship globalization context and the continuous projects are a living proof. Taking care of improvement of the busin
Slide 7: Corporate governance
CORPORATE GOVERNANCE IMPACT’s corporate culture is characterized by clear responsibilities, professionalism, mutual respect and trust. Lawful conduct, total transparency and fair competition are integral to our business in order to achieve high performance, quality outputs and expected returns on in
Slide 8: 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 of experiece in 20+ years of experience 10+ years of experience in top management, p
Slide 9: Market trends
MARKET TRENDS 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 main
Slide 10: Market trends
MARKET TRENDS H1 - 2022 OPORTUNITIES IMPACT ACTIONS • Significant increase in sales in the • Significant growth for rentals, • Launch of SPATZIOO, the first 2 months due to higher where yields reached over 7% in property & facility management demand following the increase of June compared to 5% y-o-
Slide 11: Growth strategy
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 - focus practices
Slide 12: 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, as well as retail, hotel and commercial real estate. BRASOV Attractive landbank in h
Slide 13: Our projects
OUR PROJECTS MIDDLE - UPPER AFFORDABLE PROJECTS PROJECTS 13
Slide 14: 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 2,574 COMPLETION DATE Q2 2022 COMPLETION DATE Q1 2022 UNDER CONSTRUCTION TOTAL GBA (sqm) 7,364 TOTAL GBA (sqm) 1,200 UNITS2 1,2
Slide 15: Luxuria Expoziției Residence
630 units, Luxuria Expoziției Residence District 1, Bucharest STARTING DATE 2018 COMPLETION DATE 2021 COMPLETED UNITS 630 SOLD UNITS1 60% - 377 SCT (mp) 66.400 GBV (‘000€) 67.218 1 Sold units as of 30 June 2022 Except for GDV and Gross Margin that are 2022-2027 estimations, the rest of the figures a
Slide 16: 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 17: Boreal Plus
691 units, Boreal Plus Constanța Residence STARTING DATE 2020 COMPLETION DATE 2026 UNITS UNDER CONSTRUCTION 673 GBA (sqm) 63,658 GDV (‘000€) 78,307 Except for GDV that are 2022-2027 estimations, the rest of the figures are total project estimates. 17
Slide 18: 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) 8,000 PIPELINE UNITS 596 TOTAL GBA (sqm) 20,000 ROOMS AND APPARTMENTS 3
Slide 19: 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 20: 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 21: Average selling price for sold residential units
Average selling price for sold residential units Average selling price (EUR/sqm) 1800 1,627 1600 1,381 1400 1,297 1200 1,021 1,013 1000 867 790 800 600 400 200 0 2016A 2017A 2018A 2019A 2020A 2021A H1'22A Sold residential units do not include residential units contracted by clients for projects for
Slide 22: Summary of financial historical data
Summary of financial historical data Consolidated statement of profit or loss EUR thousand Year ended Year ended Year ended Year ended Year ended Year ended 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 30-Jun-21 30-Jun-22 (audited) (audited) (audited) (audited) (unaudited) (unaudited) Revenue from real e
Slide 23: Summary of financial historical data
Summary of financial historical data Consolidated statement of financial position EUR thousand 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 30-Jun-22 (audited) (audited) (audited) (audited) (unaudited) Property, plant and equipment 1,470 1,786 1,551 3,075 4,541 Intangible assets 20 30 28 45 30 Right of u
Slide 24: Summary of financial historical data
Summary of financial historical data Consolidated statement of cash flow EUR thousand Year ended Year ended Year ended Year ended 6m ended 6m ended 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 30-Jun-21 30-Jun-22 (audited) (audited) (audited) (audited) (unaudited) (unaudited) Profit for the period 4,477
Slide 25: Key performance indicators
KEY PERFORMANCE INDICATORS Total adjusted assets EPRA Net Reinstatement Value (th EUR) (in EUR thousand) 233,847 250,000 350,000 317,003 209,281 295,692 188,425 300,000 200,000 171,212 248,343 228,137 250,000 150,000 200,000 150,000 100,000 100,000 50,000 50,000 - - Dec-19 Dec-20 Dec-21 Jun-22 Dec-1
Slide 26: Pre-sales
PRE-SALES Pre-Sold Value of Pre-Sold residential units residential units Pre-Sales as at 30 Jun 2022 Pre-Sales package value as at 30 Jun 2022 (apartments, units) (EUR thousand) 800 421 109 71 17 618 80,000 46,860 18,563 5,663 2,077 73,163 700 70,000 2,077 600 17 60,000 500 50,000 48,067 400 40,000
Slide 27: Continued commitment to deliver top-line growth
CONTINUED COMMITMENT TO DELIVER TOP-LINE GROWTH Consolidated P&L RON thousand H1 2022 H1 2021 Var % • During the H1 of 2022, the Revenue from real estate inventories 90,268 68,941 31% gross margin continued its Gross profit 35,228 21,483 64% improvement trend compared Gross margin % 39% 31% 25% to t
Slide 28: Strong balance sheet
STRONG BALANCE SHEET Consolidated BS • Property, plant, and equipment RON thousand 30 Jun 2022 31 Dec 2021 Var % increased by 60% compared to 31 Non-current assets, of which 615,619 587,318 5% December 2021 following an 1,891 sqm land acquisition within Investment property 591,164 571,882 3% Greenfi
Slide 29: Financing mix as of June 2022
FINANCING MIX AS OF JUNE 2022 Debt-to-Total Assets 20% Project Finance 32% 32% Bonds 36% Corporate Loans Debt = Financial Debt computed as at 30 June 2022 Total Assets = Assets Adjusted to Fair Value According to EPRA guidelines as of 30 June 2022 29
Slide 30: Land bank
Land bank Details on land bank Area as of IFRS Market value Market value 30-Jun-22 As of 30 Jun 2022 As of 30 Jun 2022 As of 30 Jun 2022 sqm thousand EUR thousand EUR thousand EUR/sqm Major plots of land in investment Bucharest - Greenfield Baneasa to be developed 193 44,507 44,507 230 Bucharest - G
Slide 31: Net assets
NET ASSETS METRICS 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 30-Jun-2022 IFRS (consolidated) 2,822 Net profit (EUR thousand) 4,477 32,556 15,476 16,015 6m only Net asset value ("NAV“, EUR thousand) 95,801 122,180 131,601 144,875 159,431 NAV/Share (EUR) 0.09 0.11 0.12 0.09 0.10 EPRA Net Asset Value (co
Slide 32: 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 1.07 billion market capitalization (EUR 216.7 million) at 30 of June 2022; • RON 0.646 / share at 30 of June 2022
Slide 33: Capital market
CAPITAL MARKET Share data 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 30-June-22 Shares out 277,866,574 274,443,532 265,000,000 1,575,000,000 2,322,923,813 Price per share RON 0.99 1.49 1.88 0.70 0.46 Market capitalisation RON 275,087,908 408,920,863 498,200,000 1,102,500,00 1,076,210,603 Market capital
Slide 34: 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 • Up to €50 mil equity increase Debt-to-Assets 1 Avg. Debt-to-EBITDA2 (of which €16 mil. already raised up to August 20
Slide 35: Forecast
Forecast Consolidated statement of profit and loss EURO thousand 2023 F 2024 F 2025 F 2026 F 2027 F Total Revenue from residential inventories 108,447 115,916 245,636 339,881 400,632 1,210,512 Costs of residential inventories (67,152) (68,883) (149,375) (212,113) (243,834) (741,357) Gross margin res
Slide 36: Forecast
Forecast Information Estimated sale of residential units 3,000 2,795 2,500 2,061 2,000 1,506 1,500 1,000 820 653 500 - 2023 2024 2025 2026 2027 Assumptions involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or
Slide 37: Forecast
Forecast Consolidated statement of profit and loss Net Profit Margin 35% 30% 30% 28% 26% 25% 23% 21% 20% 15% Total 10% 369.2 5% 0% 2023F 2024F 2025F 2026F 2027F The forward-looking statements in this presentation are based on numerous assumptions regarding the Company’s present and future business s
Slide 38: Our potential
OUR POTENTIAL We have We target We seek • Over 5,900 permitted units out of • Accelerate development in order to • Financing required for 2022- which 3,500 with building permit or maximize use of the obtained 2024 for to support Company last stage of the building permit building permits & existing l
Slide 39: 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 40: 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 41: Thank You!
Thank You! For Further Inquiries please contact us at: ir@impactsa.ro
Slide 42: Annexes
IMPACT Annexes 42
Slide 43: Market details
MARKET DETAILS Average prices for houses Average net salary EUR/sqm RON 1,800 1,677 6,000 1,600 1,463 5,096 1,345 5,000 4,622 1,400 1,210 1,259 4,260 3,991 3,871 1,200 4,000 3,482 3,543 3,307 3,099 1,000 2,696 3,000 800 600 2,000 400 1,000 200 - - 2018 2019 2020 2021 6'M 2022 2018 2019 2020 2021 6M
Slide 44: Market details
MARKET DETAILS Evolution of finished dwellings delivered 2021 – the second year of pandemic brought in Romania by development regions new records for Romanian real estate TOTAL deliveries and transactions Bucharest-Ilfov OFFER Center North-West At national level, in 2021, the residential developers
Slide 45: Market details
MARKET DETAILS DEMAND Evolution of apartments transactions in Romania The year of 2021 marked a new record on the Romanian residential 200,000 market, after over 183,000 apartments worth over 12 billion euro were traded, this being the highest level in the last five years. 180,000 Thus, residential
Slide 46: Market details
MARKET DETAILS PRICES & COSTS According to the “Romanian Residential Market Report Q2 2022” of analizeimobiliare.ro, the quarterly growth of asking prices for properties available for sale, at national level was very robust in Q2 2022, of 14.3%, as compared to Q4 2021 when there was registered a qua
Slide 47: Market details
MARKET DETAILS Average Transaction Price of a New Dwelling in Selected Countries (EUR/sqm), 2021 Romania 1,266 EUR/sqm (+7.29%) compared with Serbia 1,520 EUR/sqm (+7.50%), Hungary 2,014 EUR/sqm, Poland 1,7129 EUR/sqm (+21.51%), Czech Republic 3,342 EUR/sqm (+18.42%). Germany (4,600 EUR/sqm ) an
Slide 48: Market details
MARKET DETAILS Affordability of Owning Houses, 2021 In Romania buyers need on average 6.3 annual gross salaries in order to purchase a new dwelling. In Poland however, there are needed 7.9 annual gross salaries, while in Hungary there are needed 8.3 annual gross salaries to buy a new dwelling. C
Slide 49: Market details
MARKET DETAILS Outstanding Residential Loans, 2021 • The lowest rate of indebtedness is found in Romania, with only 13%. Countries in Central Europe, such as Czech, Poland, Latvia and Hungary, maintain their level of indebtedness under 50%, with 41.9%, 31.5%, 22.0% and respectively 17.0%. • The high
Slide 50: Market details
MARKET DETAILS Average Transaction Price of a New Dwelling (EUR/sqm) and annual change, 2021 In Romania, the capital city is surpassed by Cluj, which is the most expensive city in the country from the point of view of the average transaction price of a new dwelling – with 1,940 EUR/sqm compared wi
Slide 51: Market details
MARKET DETAILS Building permits for residential buildings, Housing stock 2018-2022 2015 - 6M 2022 New constructions Housing stock Year (units) (units) 2018 59,713 9,031,317 2019 67,488 9,092,963 2020 67,816 9,156,311 2021 71,405 9,587,153 Source: NIS, centralized and processed by IMPACT 51
Slide 52: Market details
MARKET DETAILS Construction cost for new dwellings Country 2015 2016 2017 2018 2019 2020 2021 The increase in price index (2021 vs 2015) for new dwellings in Romania is Bulgaria 100 100.8 103.3 106.3 111.6 114 127.9 lower than the increase in construction Czechia 100 100.3 103 107.2 113.1 115.5 12
Slide 53: Market details
MARKET DETAILS Overcrowded homes as % from total population 60. In Romania in 2021 41% of the population lives in an overcrowded home. 50. All through period 2015-2021 period the 40. % was higher for Romania than the ones in 30. the neighboring countries Bulgaria, Czechia, Hungary and Poland. 20
Slide 54: Accounting policies & practices
Accounting policies & practices Key details for disclosed historical information IMPACT Group consolidated accounts are prepared in accordance with International Financial Reporting Standards as endorsed by European Union. Revenue recognition revenues from sale of residential units were recogniz
Slide 55: IMPACT Recognitions
IMPACT Recognitions We are focused on continuously improving standards in the development of the real estate sector and the granted distinctions can validate our commitment. “The first real estate company listed on BVB, with over 30 years of experience and a market 2022 capitalisation of over 1 bill
Slide 56: ISO certifications
ISO CERTIFICATIONS CERTIFICATES 56
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