Globe Trade Centre S.a. · GPW:GTC
Globe Trade Centre — Q1 2022 Earnings Presentation
34 slides from Globe Trade Centre's earnings presentation, May 19, 2022
Slide 1: Q1 2022 Results Investors Presentation
GTC|® Q1 2022 RESULTS Investors Presentation 19 May 2022
Slide 2: Contents
CONTENTS Key highlights Q1 2022 Portfolio Development projects Operations and financials Additional materials 14 19 GTC|®S Q120212 RESULTS = @® _ Investors Presentation 19 May 2022
Slide 3: Financial Results
FINANCIAL RESULTS Strong Q1 2022 financial results | Dividend from 2021 profit of PLN 0.28 / share + Rental revenues up to €42m in Q1 2022 (€37m in Q1 2021) + Gross margin from rental activity up to €30m in Q1 2022 (€27m in Q1 2021) + Adjusted EBITDA up to €26m in Q1 2022 (€24m in Q1 2021) + FFO | a
Slide 4: Office: new projects in the portfolio combined with stronger leasing activity
OFFICE: NEW PROJECTS IN THE PORTFOLIO COMBINED WITH STRONGER LEASING ACTIVITY Green office portfolio with 89% of assets certified + Disposal of Serbian office buildings for €268m (above the book value) completed in January 2022 + Completion of Pillar, Class A office building in Budapest (29,100 sq m
Slide 5: Retail: back to pre-Covid levels
RETAIL: BACK TO PRE-COVID LEVELS Retailers continue to expand + Occupancy at 96% as of 31 March 2022 (95% as of 31 December 2021) + Weare seeing a positive trend in all malls, footfall is growing and turnover reached pre- Covid levels (100% in March 2022 vs 2019; 98%' in Q1 2022 vs 2019 and 153% in
Slide 6: Retail: footfall and turnovers picking up quickly
RETAIL: FOOTFALL AND TURNOVERS PICKING UP QUICKLY TOWARD 2019 STATS Group footfall and turnover change (2022/2021/2020 vs. 2019) Second lockdown Last lockdown 46% GLA operational 31% GLA operational = FOOTFALL m= TURNOVER 103% 101% - 100% 100% 96% 97% 95% 0 96% 96% 98% 00% 89% 82% 80% 0% 73% 75% 7%
Slide 7: Contents
CONTENTS Key highlights Q1 2022 Portfolio Development projects Operations and financials Additional materials 14 19 GTC|®S Q120212 RESULTS @® Investors Presentation 19 May 2022
Slide 8: High quality property portfolio with focus on offices
HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES + 89% of GAV base is recurring income-producing TOTAL PORTFOLIO (BOOK VALUE) + 65% of recurring income-producing portfolio is office Project under construction | mangers Belgrade 2% andbani 32% p €l48m _ incl, landbank held for sale) + Active dev
Slide 9: Contents
CONTENTS Key highlights Q1 2022 Portfolio Development projects Operations and financials Additional materials 14 19 GTC|®S Q120212 RESULTS @® Investors Presentation 19 May 2022
Slide 10: Pipeline of development projects
PIPELINE OF DEVELOPMENT PROJECTS 11% of portfolio in development projects and land reserve UNDER CONSTRUCTION PROJECTS KEY METRICS 31Mar 2022 31Dec 2021 Gross asset value (€M) 57 132 Lettable area (ths. sqm) 50 54 Office segment share 100% 100% Office 100% PROJECTS UNDER CONSTRUCTION Budapest 33% Be
Slide 11: Office focused development pipeline
OFFICE FOCUSED DEVELOPMENT PIPELINE 50,400 sq m of class A offices under construction to be completed in 2022 with €10.2m expected rental income 10,500 sq m new office space 8,300 sq m new office space >» Redevelopment of 14,700 sq m office space Total investment cost of €23.1m Under LEED certificat
Slide 12: Office focused development pipeline
OFFICE FOCUSED DEVELOPMENT PIPELINE 118,400 sq m of class A offices and 23,100 sq m of residential space ready to be launched in 24 months > Phased priect. > Expected completion > Expected completion @Q4 2024 : 72,500 sqm . of the whole project: > Total cost: ez 026) €18.4m > Total cost: €161.6m > E
Slide 13: Contents
CONTENTS Key highlights Q1 2022 Portfolio Development projects Operations and financials Additional materials 14 19 GTC|®S Q120212 RESULTS @® Investors Presentation 19 May 2022 13
Slide 14: Income Statement
INCOME STATEMENT Newly acquired assets drove the growth despite impact of COVID-19 (€m) Q1 2022 Q1 2021 Revenue from rental activity 42 37 BREAK DOWN OF OPERATING MARGIN (BRIDGE) Cost of rental operations 2) qo) Gross margin from operations c) 30 27 2.4 30.3 27.5 (4.4) 47 0.1 G&A expenses w/o share
Slide 15: Balance Sheet
BALANCE SHEET 31 March 31 December (€m) 2022 2021 COMMENTS Investment property (excl. right of use) 2,278 2,202) Residential landbank (excl. right of use) 26 26 Right of use 42 40 Assets held for sale 5 291 (1) Meta eine tio is a of a new landbank in Serbia Property, plant and equipment 8 8 Loan gra
Slide 16: Strength of debt metrics
STRENGHT OF DEBT METRICS Confirmed by investment grade ratings of BBB- by Scope, BBB- by Fitch and Bal by Moody’s KEY CREDIT METRICS DEBT MATURITY (€m) 766 @ Loans to be recycled Ze @ Bonds @ Regular amortization aS y) 5.ly c. €1.3bn Weighted average debt maturity total debt (years) 224 ® 142 A 66 @
Slide 17: Cash Flow
CASH FLOW (€m) Q1 2022 Q1 2021 Operating activities Operating cash before working capital changes 26 24 Add / deduct: Change in working capital (3) a Interest paid, net (5) (9) Tax (2) 1) Cash flow from operating activities 16 13 Investing activities Investment in real estate and related (80) (22) A
Slide 18: Contents
CONTENTS Key highlights Q1 2022 Portfolio Development projects Operations and financials Additional materials 14 19 GTC|®S Q120212 RESULTS @® Investors Presentation 19 May 2022 18
Slide 19: Key shareholder information
KEY SHAREHOLDER INFORMATION BASIC SHARE INFORMATION Symbol GTCSA. Share price PLN 6.00 ISIN PLGTCO000037 Performance 12M 13% Primary exchange Warsaw Stock Exchange Market capitalization’ PLN 3.4bn / €0.7bn Shares outstanding 574.3 million SHARE PERFORMANCE 12M Currency: PLN GTC WIG. 75000 10,00 70.0
Slide 20: Leading commercial real estate platform
LEADING COMMERCIAL REAL ESTATE PLATFORM ASSETS LOCATION BY GAV annualized i book value js GLA GTC portfolio # (em) % in: Place tent (ths. sqm) Assets for Income generating (a+b) 45 2,051 89% 138.5 763 stungary Oa 32% a) Office (incl. AHFS) 39 1,330 58% Onl 558 TOTAL GAV €2,315m iti b) Retail 6 721 3
Slide 21: Office portfolio overview
OFFICE PORTFOLIO OVERVIEW Sustainable high occupancy of prime office buildings provides solid recurring income OFFICE ASSETS OVERVIEW €1,330m €91.1m 39 558,000 6.8% GAV annualized in-place rent buildings sqm GLA Yield GREEN CERTIFICATION OCCUPANCY RATE LOCATION by GAV 5 7 Zagreb sectam 92% 93% 93% 9
Slide 22: Retail portfolio overview
RETAIL PORTFOLIO OVERVIEW Landmark shopping centers in local markets RETAIL ASSETS OVERVIEW 8) (a (antit ay €721m €47.4m GAV annualized in-place rent buildings 205,000 sqm GLA Yield GREEN CERTIFICATION BREEAM LEED 29% 59% 88% assets with green certification Under certification 12% OCCUPANCY RATE 90%
Slide 23: High quality portfolio and diversified tenant base helps to mitigate challenges
HIGH QUALITY PORTFOLIO AND DIVERSIFIED TENANT BASE HELPS TO MITIGATE CHALLENGES TENANTS’ BASE BLUE CHIP TENANTS + Strong retention rate across the portfolio Total rent % annualized + GTC’s organic growth strategy and the ae fem) in place rent corresponding high share of own = 57 41% developments in
Slide 24: Green certification
GREEN CERTIFICATION Sustainability is our goal INCOME PRODUCING ASSETS (BOOK VALUE) BREEAM 37% BREEAM 29% y, 89% assets with green certification 88% assets with green certification Under certification 10% __ No certification 1% We have been recognized for our ESG affords: * 2021 EPRA Sustainability
Slide 25: Portfolio: income generating properties
PORTFOLIO: INCOME GENERATING PROPERTIES Poland Hungary Belgrade Zagreb Bucharest Sofia Total OFFICE PROJECTS Number of buildings 16 12* - 3 5 3 39 Total GLA (ths. sq m) 196 223 - 28 67 44 558 Book value (€m) 374 626 - 62 172 96 1,330 Average rent (€/sq m) 14.2 15.6 - 15.2 18.8 14.4 15.3 Average occu
Slide 26: Property overview
PROPERTY OVERVIEW High quality assets base in Poland, Hungary and capital cities of CEE Top properties Asset class Country City Book value GLA Rent € Occupancy =M ths. sqm /Sam/ month % Galeria Pétnocna =] Poland Warsaw 254 65 19.6 93% Galeria Jurajska =) Poland Czestochowa 189 49 22.7 98% City Gate
Slide 27: Unique development pipeline
UNIQUE DEVELOPMENT PIPELINE Unlocking significant embedded value through development projects City Total GLA Investment Total investment Expected Revaluation Book value Expected development —_ Expected (ths. sqm) cost (€M) cost (€M) in-place rent gain recognized ém) yield / Expected completion (eM)
Slide 28: Funds from operations (FFO I)
FUNDS FROM OPERATIONS (FFO 1) Robust acquisitions and developments drive FFO | FFO! (€m) > FFO I per share of €0.03 74 70 66 61 » Robust operational performance despite impact of COVID-19 47 ssl? > — Significant development pipeline to further boost FFO | 28 » — Solid basis for sustainable and long
Slide 29: EPRA NTA
EPRA NTA EPRA NTA (€m) 1,272 1,288 1170 4200 1,073 44112 897 779 614 31Dec'l4 31Dec'IS 31Dec'l6 31Dec'l7 31Dec'!8 31Dec'l9 31Dec'20 31Dec'21 31Mar'22 EPRA NTA per share €2.21(PLN 10.18) €2.24 (PLN 10.43) 31 Dec 2021 31 Mar 2022 EPRA NTA bridge (€m) 133 1,288 17 1,122 33 1139 an au | Total equity Non
Slide 30: Debt and LTV
DEBT AND LTV 31 DECEMBER 31 DECEMBER 31 MARCH 2022 2021 Loans and bonds 1,299 1,299 1,441' Loans from minorities (8.5) (9) (9) Deferred debt expenses 10 N 1 Bank loans and bonds 1,301 1,301 1,443 Cash & cash equivalents & deposits 303 362 128 Net debt 998 939 1,315 ivestment ropereyasetseldfor 3s 22
Slide 31: Useful information
USEFUL INFORMATION INVESTOR CONTACT ESG Matgorzata Czaplicka Investor Relations Director T: +48 22 16 60 710 EPRA mcezaplicka@gtc.com.pl sBPR FINANCIAL CALANDAR 3 g 24.08.2022 Publication of H1 2022 report 16.11.2022 Publication of Q3 2022 report Corporate governance 2020 ESG report Corporate sectio
Slide 32: Definitions
DEFINITIONS AVERAGE YIELD calculated as in-place rent divided by fair value of asset FFO profit before tax less tax paid, after adjusting for non-cash transactions (such as fair value or real estate remeasurement, depreciation and amortization share base payment provision and unpaid financial expens
Slide 33: Definitions
DEFINITIONS ADJUSTED EBITDA consolidated profit/(loss) of the Group before taxes, depreciation, amortisation and impairments, non-controlling interest and share of profit/(loss) of joint ventures, excluding any fair value adjustments, the net result on sale of financial investments, financial income
Slide 34: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT FOR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN. THIS PRESENTATION IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. BY ATTENDING OR VIEWING THIS PRESENTATION, YOU ACKNOWLEDGE AN