Romreal Ltd. · OSL:ROM
Romreal — Q3 2015 Earnings Presentation
16 slides from Romreal's earnings presentation, Nov 27, 2015
Slide 1: Q3 2015 results
RomReal Limited Investor presentation Q3 2015 results Harris Palaondas Investor Relations 27 November 2015 This Presentation of the Q3 2015 results of RomReal Ltd (the “Company”) has been prepared for discussion purposes only and should be read in conjunction with the Q3 2015 Report which is filed o
Slide 2: Contents
Contents Q3 2015 highlights 3 NAV movement in Q3 2015 4 Financial highlights – IFRS 5 RomReal Properties per Q3 2015 6 Mamaia Nord Plot Operational highlights 7 Romania Macro Developments 8 Romania Real Estate Update 9 - 11 RomReal shareholders 12 - 13 Lake Morii Plot - Bucharest The Alpha Bank Loan
Slide 3: Highlights of the Q3 2015 results
Highlights of the Q3 2015 results Net Asset Value (NAV) • Net Asset value was EUR 0.46 (NOK 4.50) per share at the end of Q3 2015, a 1.2% decrease compared to the end of Q2 2015 (in EUR). Operational highlights • The Company sold two more plots in Tatar Peninsula and closed a pre-sale agreement of a
Slide 4: NAV movement in Q3 2015
NAV movement in Q3 2015 Asset base Q3 2015 Q2 2015 EUR ’000 EUR/share NOK/share EUR ’000 EUR/share NOK/share Investment 27,339 0.66 6.41 27,363 0.66 5.69 property Inventories 2,300 0.06 0.54 2,399 0.06 0.50 Cash 1,031 0.01 0.24 303 0.01 0.06 Other (11,471) (0.28) (2.69) (10,636) (0.26) (2.21) assets
Slide 5: Financial highlights - IFRS
Financial highlights - IFRS EUR '000 Q3 2015 Q3 2014 YTD 2015 YTD 2014 Operating Revenue 139 61 1,400 363 Operating Expenses (248) (221) (665) (682) Other operating income/ (expense), net (512) (160) 735 (319) Net financial income/(cost) 864 350 563 652 Pre-tax result 243 (2) (280) (370) Result for
Slide 6: RomReal Properties Q3 2015
RomReal Properties Q3 2015 Plot name Location Size (m2) 1 Ovidiu Lakeside Constanta North/Ovidiu 61,029 2 Badulescu plot Constanta North/Ovidiu 50,000 3 Tatar Peninsula Constanta North/Ovidiu 1,266 4 Ovidiu Town Constanta North/Ovidiu 4,641 5 Ovidiu (Oasis) Constanta North/Ovidiu 25,127 6 Centrepoin
Slide 7: Operational highlights
Operational highlights • RomReal sold additional 3 properties at Tartar Peninsula – bringing the total number of sold properties up to 12 of 15 plots. One of the plots is pre-sold and expected to close in Q1 2016 • The conditional sale of 1,956 sqm at Balada market for a net price of EUR 537,900 as
Slide 8: Romanian Macro development
Romanian Macro development • During the third quarter, GDP increased by 3.6%. Economists expect GDP to come in around 3.5% for 2015 and they expect the growth to continue in 2016 with 3.7% growth. • As a result of reduced VAT rate for food and lower energy prices, inflation went into negative territ
Slide 9: Romania Real Estate Update
Romania Real Estate Update The real estate market recovers with strong transaction volume, increased construction spending and higher prices. Construction work increased 10.5% over the first three quarters and building permits for residential dwellings increased 8.3% during the third quarter, th
Slide 10: Apartment Price Development
Apartment Price Development Romania • Housing prices in Romania have increased 3% compared with September last year Constanta • Apartment prices in Constanta have increased 7.2% compared to September last year. RomReal Limited – Third quarter 2015 10
Slide 11: Real Estate market shows recovery signs
Real Estate market shows recovery signs RomReal Limited – Third quarter 2015 11
Slide 12: RomReal shareholders as at 17/11/2015
RomReal shareholders as at 17/11/2015 SHAREHOLDERS HOLDING % SIX SIS AG 11,699,278 28.3% THORKILDSEN KAY TØNNES 5,415,756 13.1% GRØNSKAG KJETIL 3,850,307 9.3% TONSENHAGEN FORRETNINGSSENTRUM 2 A 1,614,444 3.9% SILJAN INDUSTRIER AS 1,600,000 3.9% SKANDINAVISKA ENSKILDA BANKEN S.A. 1,323,372 3.2% SAGA
Slide 13: Market capitalization and NAV development
Market capitalization and NAV development NOK million Source: Company; OSE; Infront; Market capitalization numbers for 2007 and 2008 are Company estimates. Exchange rate YE for both quarters in year . For 2015 exchange rate as of Nov. 23, 2015 RomReal Limited – Third quarter 2015 13
Slide 14: The Alpha Bank loan
The Alpha Bank loan • Secured loan with nominal value EUR 10,549,000 and accrued interest of EUR 1,036,000 at end of Q3 2015. The loan matures November 27, 2015 • The Company has called the option to extend the loan one year, provided that the interest is paid up-front. The Company has the required
Slide 15: Main focus areas going forward
Main focus areas going forward • RomReal expects that the recent positive development in the macroeconomic environment will contribute to a recovery in the real estate market in 2015 and 2016. • In addition to sale of plots, the Company seeks to add incremental value to the individual plots during t
Slide 16: Thank you
Thank you Investor Relations Harris Palaondas +40 731123037 | investors@romreal.com 16 Burnaby Street, Hamilton HM11, Bermuda For further information on RomReal, including presentation material relating to this interim report and financial information, please visit www.romreal.com DISCLAIMER The inf