48 slides from Impact Developer & Contractor Sa's conference presentation, March 2023
Slide 1: Leader in sustainable real estate development
Leader in sustainable real estate development March 2023
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 We strive to become the leading Residential Real by developing communities with focus on Estate Developer through sustainable large- susta
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 in the first residential residential & three phases of upper midscale market with community in
Slide 4: Group structure
GROUP STRUCTURE RCTI Company Bergamot 0,01% Developments Greenfield Property Management SRL IMPACT ALLIANCE ARCHITECTURE 51% 99,99% IMPACT ALLIANCE 100% 51% MOLDOVA 51% 99% Bergamot IMPACT Developments Phase II Greenwise 99% Development Developer & Contractor SA 6,23% 99% Spatzioo Greenfield Copou M
Slide 5: Fully committed to best practices in ESG
FULLY COMMITTED TO BEST PRACTICES IN ESG 30+ years on the real estate market demonstrate the power Sustainability lies in the operating policy of IMPACT Group to adapt to the globalization context and the continuous and our flagship projects are a living proof. Taking care of improvement of the busi
Slide 6: ESG framework
ESG FRAMEWORK OFIOUR PROJECTS AREY. BREEAM EXCELLENTa CERTIFIED ‘ RENEWABLE ENERGY IMPACT 6
Slide 7: Our commitment to nZEB requirements
OUR COMMITMENT TO nZEB REQUIREMENTS IMPACT Compliance with the nZEB standard involves: • Minimum 30% of the energy used comes from a renewable source. (geothermal, geo-exchange, photovoltaic, solar –depending on the project) • The insulation of the building is carried out with the best materials • S
Slide 8: Over 80% projects BREEAM Excellent certification
OVER 80% PROJECTS BREEAM EXCELLENT CERTIFICATION BREEAM Excellent certification requirements • Architectural design that enhances the well-being of resident • Terraces and green facades that offer aesthetic advantages and additional insulation of the building • Using strategic sustainability and int
Slide 9: Over 80% projects BREEAM Excellent certification
OVER 80% PROJECTS BREEAM EXCELLENT CERTIFICATION A considerable part in BREEAM certification Our sustainable procurement system takes into process is adopting sustainable principles in consideration: order to: • Construction product manufacturers • Control costs by adopting a wider • Construction pr
Slide 10: Over 80% projects BREEAM Excellent certification
OVER 80% PROJECTS BREEAM EXCELLENT CERTIFICATION With respect of materials used the procurement of goods, works and services has a significant impact on project performance. Key sustainable procurement principles focus on: • Use of responsibly and ethically sourced materials • Re-use of materials an
Slide 11: 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 12: Strategy implementation led by a diverse executive team
STRATEGY IMPLEMENTATION LED BY A DIVERSE EXECUTIVE TEAM CONSTANTIN SEBEȘANU CLAUDIU BISTRICEANU SORIN APOSTOL CRISTOVAO ROCHA OVIDIU GRINICI CEO CFO EXECUTIVE DIRECTOR DEVELOPMENT DIRECTOR SALES & MARKETING DIRECTOR 25+ years of experience in 20+ years of experiece in 20+ years of experience 17+ yea
Slide 13: Market trends
MARKET TRENDS KEY DEMAND OVERVIEW HOUSING STOCK IN HIGHLIGHTS IN ROMANIA ROMANIA • Romania is the European country • Great potential for demand in terms • Room for consistent new with the highest Owner of residential market in Romania deliveries during the next Occupation Rate (95,3% as of main citi
Slide 14: Market trends
MARKET TRENDS PRICE TRENDS ACROSS MAIN CITIES – APARTMENTS FOR SALE +6.1% Annual rate of changes in prices for residential properties for sale, nationwide - new properties (Q4 2022 vs Q4 2021) 14
Slide 15: Market trends
MARKET TRENDS 2022 OPPORTUNITIES THREATS • Increase in sales due to • 41% of Romanians live in an • Recent political & social higher demand following the overcrowded home (Eurostat 2021) disruptive events – war in Ukraine increase of the ceiling for the application of the 5% VAT • Growth for rentals
Slide 16: Growth strategy
GROWTH STRATEGY Sustainability Geographic expansion & Innovation and focus portfolio diversification Vertical integration • At the forefront of sustainable • Focus on affordable residential • Vertical integration (construction companies, practices and building GREEN developed in large communities ar
Slide 17: Build a strong presence in key cities
BUILD A STRONG PRESENCE IN KEY CITIES Operating in the main cities like Bucharest, Iași, Constanța Targetting expansion to Timișoara, Brașov, Cluj Diverse project portfolio including CLUJ residential, as well as retail, hotel and commercial real estate BRASOV Attractive landbank in high-dema
Slide 18: Our projects
OUR PROJECTS MID-SCALE AFFORDABLE PROJECTS PROJECTS 18
Slide 19: Greenfield Băneasa Residence & Community Center
6.000+ units, Greenfield Băneasa Residence & District 1, Bucharest Community Center Residence Plaza Headquarter COMPLETED UNITS 2,580 SOLD UNITS 2,574 COMPLETION DATE 2022 COMPLETION DATE 2022 UNDER CONSTRUCTION UNITS 1,167 TOTAL GBA (sqm) 7,364 TOTAL GBA (sqm) 1,183 PIPELINE UNITS 2,554 - Commercia
Slide 20: Boreal Plus
673 units, Boreal Plus Constanța Residence STARTING DATE 2020 COMPLETION DATE Completion in stages first, 209 2025 apartments completed in 2023 UNITS UNDER CONSTRUCTION 673 GBA (sqm) 63,658 GDV (‘000€) 84,310 GBA = Gross Building Area of the Project aboveground, exclusive of parking GDV = Gross Deve
Slide 21: Greenfield Copou Residence & Plaza
1.062 units, Greenfield Copou Residence & Plaza Iași Residence Community center STARTING DATE 2023 STARTING DATE 2023 COMPLETION DATE 2028 COMPLETION DATE 2024 PIPELINE UNITS 1,062 TOTAL GBA (sqm) 4,328 - Kindergarden & Commercial(sqm) 2,418 GBA (sqm) 98,988 - Wellness (sqm) 1,190 GDV (‘000€) 156,10
Slide 22: Greenfield West Residence & Plaza
4,223 units, Greenfield West Residence & Plaza District 6, Bucharest Residence Community center STARTING DATE 2024 STARTING DATE 2024 COMPLETION DATE 2030 COMPLETION DATE 2026 PIPELINE UNITS 4,223 TOTAL GBA (sqm) 14,981 GBA (sqm) 353,136 GDV (‘000€) 25,400 GDV (‘000€) 468,804 GBA = Gross Building Ar
Slide 23: Luxuria Expoziției Residence
630 units, Luxuria Expoziției Residence District 1, Bucharest Residence STARTING DATE 2018 COMPLETION DATE 2021 COMPLETED UNITS 630 SOLD UNITS 74% - 469 GBA (sqm) 66,400 Remaining GDV (‘000€) 29,267 Sold units as at 31 January 2023 GBA = Gross Building Area of the Project aboveground, exclusive of p
Slide 24: Aria Verdi
Mixed use Aria Verdi District 1, Bucharest Commercial Residence STARTING DATE 2026 STARTING DATE 2026 COMPLETION DATE 2027 COMPLETION DATE 2027 TOTAL GBA (sqm) 7,121 TOTAL GBA (sqm) 107,118 GDV (‘000€) 26,534 GDV (‘000€) 334,330 GBA= Gross Building Area of the Project aboveground, exclusive of parki
Slide 25: Key performance indicators
KEY PERFORMANCE INDICATORS Total adjusted assets EPRA Net Reinstatement Value (in EUR thousand) (in EUR thousand) 347,019 300,000 350,000 251,454 295,692 250,000 300,000 209,281 248,343 188,425 228,137 200,000 171,212 250,000 200,000 150,000 150,000 100,000 100,000 50,000 50,000 - - Dec-19 Dec-20 De
Slide 26: Financing mix as of December 2022
FINANCING MIX AS OF DECEMBER 2022 Debt-to-Total Assets 26% Project Bonds Finance 8 43 48 Corporate Loans Debt = Financial Debt computed as of 31 December 2022 Total Assets = Net assets value as of 31 December 2022 26
Slide 27: Land bank
Land bank IFRS preliminary Estimated market Estimated market Permitting stage Area as of unaudited as of value as of value as of 31/12/2022 31/12/2022 31/12/2022 31/12/2022 31/12/2022 sqm thousand EUR thousand EUR thousand EUR/sqm Major plots of land in investment Bucharest - Greenfield Baneasa to b
Slide 28: Summary of financial historical data
Summary of financial historical data Consolidated statement of profit or loss Year ended Year ended Year ended Year ended Year ended 31 Dec 2022 EUR thousand 31 Dec 2018 31 Dec 2019 31 Dec 2020 31 Dec 2021 (preliminary (audited) (audited) (audited) (audited) unaudited) 1 Revenue from real estate inv
Slide 29: Summary of financial historical data
Summary of financial historical data Consolidated statement of financial position 31 Dec 2022 31 Dec 2018 31 Dec 2019 31 Dec 2020 31 Dec 2021 EUR thousand (preliminary (audited) (audited) (audited) (audited) unaudited) Property, plant and equipment 1,470 1,786 1,551 3,075 12,502 Intangible assets 20
Slide 30: Net assets
NET ASSETS METRICS 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 31-Dec-22 No. of shares 274,443,532 265,000,000 265,000,000 1,575,000,000 2,365,679,951 Nominal value of shares (EUR) 0.05 12m average trading price 0.09 (1.03.2022-28.02.2023) Market capitalization @1.03.2023 172,863 (EUR thousand) IFRS (co
Slide 31: Key targets
KEY TARGETS Key assumptions summary Targeted Ratios • Our estimated forecast figures are based primarily on development of own land bank 40% 3.5 Max. Debt-to-Assets 1 Avg. Debt-to-EBITDA2 • Financing estimates W/O bank loans : • Up to €25 mil equity increase • Excess cash together with additional pr
Slide 32: Strong fundamentals
STRONG FUNDAMENTALS We have We target We seek • Over 9,500 units are in process to • Double of net assets value through: • Financing required for 2023- be permitted, out of which 3,500 2024 for to support Company with building permit or last stage of Accelerate development in contribution in proje
Slide 33: Six reasons to invest with us
SIX REASONS TO INVEST WITH US SOLID EXPERIENCE VALUABLE PORTFOLIO 30+ years of expertise in the development Residential communities developed in green of flagship real estate projects, building areas of large cities and own land bank with communities & pioneering in the Romanian increasing market va
Slide 34: 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 35: Thank You!
Thank You! For Further Inquiries please contact us at: ir@impactsa.ro
Slide 36: Annexes
IMPACT “ANNEXES: 36
Slide 37: Market details
MARKET DETAILS Average selling prices for all houses Average net salary EUR/sqm RON 1,600 6,000 1,400 5,000 1,200 4,000 1,000 800 3,000 600 2,000 400 200 1,000 - - 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Bucharest EUR/sqm 1,315 1,342 1,470 1,512 1,506 Bucharest 3,482 3,991 4,260 4,622 5,15
Slide 38: Market details: prices & costs
MARKET DETAILS PRICES & COSTS According to the “Romanian Residential Market Report Q4 2022” of analizeimobiliare.ro, the quarterly growth of asking prices for properties available for sale, at national level was of 4.1% in Q4 2022, three times smaller to Q4 2021 growth rate, when there was registere
Slide 39: 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 40: 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 41: 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 42: 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 43: Market details
MARKET DETAILS Building permits for residential buildings, Housing stock 2018-2021 2015 - 2022 New 60,000 constructions Housing stock 51,287 Year (units) (units) 50,000 41,603 42,694 42,541 41,311 43,660 2018 59,713 9,031,317 39,112 38,653 40,000 2019 67,488 9,092,963 2020 67,816 9,156,311 30,000 20
Slide 44: 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 Bulgaria 100 100.8 103.3 106.3 111.6 114 127.9 is lower than the increase in Czechia 100 100.3 103 107.2 113.1 115.5 125.1 construct
Slide 45: 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 46: 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 47: 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. 2022 IMPACT, awarded "The most sustainable real estate developer" at the Financial Intelligence Awards Gala 2022 IMPACT Develo
Slide 48: ISO certifications
ISO CERTIFICATIONS CERTIFICATES 48