Liven As · OMXTSE:LVN1T
Liven As — Debt Investor Presentation (May 2024)
46 slides from Liven As's debt investor presentation, May 2024
Slide 1: Creating homes with soul
Creating homes with soul May 2024
Slide 2: Disclaimer
• By attending a meeting at which this presentation is made, or by reading the slides of this presentation, or by agreeing to accept this document, you agree to the following restrictions. • The offer will be made on the basis of a prospectus (in Estonian) drawn up for that purpose. Any decision to
Slide 3: Contents
Contents 1 Overview of Liven 2 Overview of the market 3 Business and processes 4 Financial information 5 Liven green bonds
Slide 4: Our core values
Our core values Liven’s goal is to create the coolest homes and to deliver Creating homes with soul is a series of the most personal service experience. coherent activities that support each other. Corporate values: These activities differentiate Liven Responsible, Ambitious, Dependable from its com
Slide 5: Liven AS group
Liven AS group • Liven AS was established in 2014 • Residential real estate developer operating in Tallinn and Berlin Completed 10 33 055 m2 714 projects Delivered Projects Developed area units • The second most reputable developer in Estonia over the last 5 years, and nr 1 in 2022, according to est
Slide 6: What we do – Our criteria for development
What we do – Our criteria for development We want to develop in: What we do not do: - Growing cities - Reconstruction and renovation - Population > 0.5 million - Projects with a turnover of less than - Well-developed economy and financing € 4 million - Projects with a business share of over 25% We d
Slide 7: Road from 2014 - 2023
Road from 2014 - 2023 Preparing for new growth 2019-2023 Reorganisation 2017-2018 - Brand development "Start-up" - Land strategy 2014-2016 - Roles & Structure - Client experience - Renewal of strategy, - Product development - Business model business model - Personalisation - Drafts, templates - Way
Slide 8: Experienced team with strong track record
Experienced team with strong track record Supervisory board Management board Andres Aavik Andero Laur • 27 years of experience in the real estate industry • 17 years of experience in the real estate industry • Previous experience from Skanska • Previous experience from Skanska • Member of Liven supe
Slide 9: Experienced team with strong track record
Experienced team with strong track record • Liven’s team is a creative collective dedicated to creating enjoyable homes for people who can appreciate them • Currently we are a team of more than 25, each of whom is a true professional in their field • We are committed to enabling our key employees th
Slide 10: Shareholders as of 29.04.2024
Shareholders as of 29.04.2024 8.0% 2.5% Number of Number of Shareholder % of share capital shareholders shares 67.7% Verdale OÜ 1 2 820 000 23.8% 21.9% BKK Holding OÜ 1 2 600 000 21.9% OÜ Laur & partners 1 2 600 000 21.9% Probus OÜ 1 1 392 751 11.7% Ivard OÜ 1 1 199 813 10.1% Liven employee share an
Slide 11: Legal structure
Legal structure All subsidiaries 100% owned by group companies • Loan capital has so far been involved in project companies Liven AS • Liven AS has so far essentially no loan commitments. (Issuer) Completed Guarantee Construction Building Detailed For future Germany projects design spatial plan proj
Slide 12: Overview of completed development projects
Overview of completed development projects Completed development projects Homes handed over arv to new owners Müüdud ühikute (AÕL) 2015 Mõtuse 22: 7 row houses 2021 Alasi 5: 44 homes 200 186 148 2016 Ristiku põik 5: 6 homes 2022 Väike Tallinn: 80 homes & a premise 150 2017 Virbi 8/10: 135 homes & pr
Slide 13: Key facts
Key facts €35.8 million (€ 32.6m) 8.0 / 10 (8.9) Revenue of 2023 (2022) Customer feedback score during last 12 months Long-term financial targets: - Return on equity >20% € 0.8 million (€ 3.3m) nr. 2 - Adjusted equity ratio ca 40% 1 Net profit for 2023 real estate developer by reputation in Estonia,
Slide 14: Slide 14
Slide 15: Trustworthy, Meeting deadlines, Trendsetter
Trustworthy Meeting deadlines Trendsetter Stylish and distinctive Outstanding marketing Professional in everything Family-friendly solutions Modern design and architecture Customer friendly service Well-planned apartments Developments in good locations Good quality Good after-sales / warranty suppor
Slide 16: The brand is in the customer's head
OY The brand is in the customer's head
Slide 17: Branding?
__ Branding? | cut uns ari
Slide 18: Anett and Rauno, homeowners in Alasi development
Anett and Rauno homeowners in Alasi development
Slide 19: Liisi and Silver, homeowners in Uus-Meremaa
Liisi and Silver homeowners in Uus-Meremaa
Slide 20: Contents
Contents 1 Overview of Liven 2 Overview of the market 3 Business and processes 4 Financial information 5 Liven green bonds
Slide 21: Competitive landscape in Tallinn
Competitive landscape in Tallinn The number of units available on the market from developers TOP15 developers, reputation index (part of the reputation survey): 180 160 Merko Liven 140 Invego 120 Kaamos Hepsor 100 Metro Capital YIT Eesti Arco Vara 80 Nordecon Pro Kapital 60 Triple Net Capital Fund E
Slide 22: Real estate supporting macroeconomic indicators
Real estate supporting macroeconomic indicators Financial market expectations for EURIBOR 4.0% 3.0% 2.0% 1.0% 0.0% 2024 2025 2026 2027 Source: Bloomberg 6-month EURIBOR 6 kuu Euribori expectations ootused Eurozone inflation Eurotsooni forecast inflatsiooni prognoos Wage growth and unemployment rate
Slide 23: Overview of the real estate market in Tallinn
Overview of the real estate market in Tallinn 5500 5500 5000 5000 4500 4500 4000 4000 3500 3500 3000 3000 Number EUR 2500 2500 2000 2000 1500 1500 1000 1000 500 500 0 0 2017 2018 2019 2020 2021 2022 2023 2024 Aktiivseid pakkumisi kv.ee Offers at kv.ee Transactions Tehningute arvinTln Tallinn Maa-ame
Slide 24: Recent developments and Outlook
Recent developments and Outlook • Macroeconomic factors contributed to lower consumer confidence levels in 2023 • This has also led to a slower pace of transactions and the postponement of purchasing decisions • There are early signs of recovery this year • Competition remains strong – a large suppl
Slide 25: Contents
Contents 1 Overview of Liven 2 Overview of the market 3 Business and processes 4 Financial information 5 Liven green bonds
Slide 26: How we do it – Our way of working
How we do it – Our way of working The Liven ‘way of working’, our operating system, combines separate activities into a unique and coherent whole which ensures competitive advantage to all our projects The precondition for land plot purchase is detailed risk assessment to uncover the competitive adv
Slide 27: Creating value throughout all the project stages
Creating value in throughout all the project stages Luuslangi Peakorter Magdaleena 4 Uus- II-III Meremaa Virmalise 3 Regati Regati I Alasi 5 II Land plot Building Construction Building End of acquisition right permit completion warranty Kadaka tee Iseära III-V Iseära II 88 Luuslangi I Wohngarden Väi
Slide 28: Developments in Estonia
Developments in Estonia 5 developments in sale Regati Magdaleena 4 Iseära Luuslangi Uus-Meremaa Ehitus valmis 2023; müüa 24 kodu + äripind Nearly 700 homes to be developed in five other sites in Tallinn and Berlin in the future
Slide 29: Development portfolio as of 31.12.2023
Development portfolio as of 31.12.2023 Estimated construction period (years, quarters) Year of Total sellable Breakdown of sellable units Estimated • The total saleable area of the existing Project Project phase 2 2024 2025 2026 2027 2028 2029 revenue acquisition area (m ) (EURm) portfolio is more t
Slide 30: First development property in Berlin
First development property in Berlin 2023 2024 2025 2026 2027 Q3 Q2 Q4 Q2 Q3 Start of Completion End of sales Acquisition Start of sales construction of construction period Wohngarden is a residential development that offers a compelling blend of affordability, quality, and personalisation. The proj
Slide 31: Contents
Contents 1 Overview of Liven 2 Overview of the market 3 Business and processes 4 Financial information 5 Liven green bonds
Slide 32: The sales process and the different contracts
The sales process and the different contracts Illustration Paid reservation Contract under Real right contract 10-15 thousand euros law of obligations Transfer of home right to withdraw without penalty 75-80% payment 10-15% down payment Pre-sales period Construction and sales Proceeds from the sale
Slide 33: General principles of project financing, so far
General principles of project financing, so far Illustration Before the start of construction During construction 20% 55% 45% 60% 20% Equity Equity Mezzanine (junior, full-bullet) Collateralised loan (up to 70% of plot value) Bank loan (85%-100% of construction cost) time
Slide 34: Specificities of financial statements for real estate developers
Specificities of financial statements for real estate developers Accounting policies Development costs, including purchased land and borrowing costs, are capitalised and recognised as inventories over the development period. Inventories also include a pro rata share of staff and overheads. Expenditu
Slide 35: Asset and capital structure
Asset and capital structure in thousands of euros Total assets at the end of 2023: 68.6 million euros 70 000 70 000 60 000 60 000 50 000 50 000 40 000 40 000 30 000 30 000 20 000 20 000 10 000 10 000 0 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Non-current Receivables and Construction Other
Slide 36: Key performance indicators and ratios
Key performance indicators and ratios EUR’000 (unless specified) 2019 2020 2021 2022 2023 • The Group's 2023 revenue amounted to €35.8 million in total, Contracts under the law of obligations (number) 43 127 125 106 69 with 69 new sales contracts concluded during the year. Real right contracts (numb
Slide 37: Income statement
Income statement (in euros) 2021 2022 2023 Revenue 6 277 573 32 617 554 35 764 896 Cost of sales -4 099 830 -27 211 649 -32 681 380 Gross profit 2 177 743 5 405 905 3 083 516 Marketing and distribution costs -762 526 -868 971 -1 021 535 Administrative expenses -771 683 -1 198 965 -1 199 781 Other op
Slide 38: Financial position
Financial position Assets Liabilities and equity (in euros) 31.12.2022 31.12.2023 (in euros) 31.12.2022 31.12.2023 Current assets Current liabilities Cash and cash equivalents 3 660 282 3 720 839 Borrowings 5 889 919 17 106 068 Trade and other receivables 438 976 1 325 917 Trade and other payables 9
Slide 39: Statement of cash flows
Statement of cash flows (in euros) 2022 2023 (in euros) 2022 2023 Cash flows from operating activities Cash flows from financing activities Operating profit 3 324 440 867 428 Proceeds from loans received 20 878 594 30 147 276 Adjustments: Repayments of loans received -15 417 255 -26 286 297 Deprecia
Slide 40: Contents
Contents 1 Overview of Liven 2 Overview of the market 3 Business and processes 4 Financial information 5 Liven green bonds
Slide 41: Green Financing Framework
Green Financing Framework For financing of projects that align with Reviewed and approved by Eligible developments must meet at the sustainability criteria established S&P Global least one of the following criteria: within Liven's Green Financing LEED Gold, or BREEAM „Very good“ Framework certificat
Slide 42: Bond is a fixed income monetary instrument
Bond is a fixed income monetary instrument Similarities to a loan Specific features Tradability • The borrower is the issuer • A bond is a security • Nasdaq Baltic Bond List • Principal is the total nominal • Investors are the lenders • First North list value of the bonds • Principal repayable on th
Slide 43: Positive trend in the Baltic bond market
Positive trend in the Baltic bond market Total volume of the Baltic bond market (primary issues) 1 Total volume of the Baltic 2 000 25 bond market (primary issues)1 23 23 21 20 1 500 € million 30% 15 1 000 10 € 3.7m 500 4 5 5 3 3 2 0 1 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 Bond Green bond T
Slide 44: Terms & conditions of the public offer of Liven 10.5% green bonds
Terms & conditions of the public offer of Liven 10.5% green bonds Issuer Liven AS Bond series type Unsecured green bonds Total nominal valu 4 000 000 - 7 000 000 euros Nominal values 1 000 euros Interest rate 10.5% per annum Interest payments Quarterly (23.08, 23.11, 23.02, 23.05) Issue date 23.05.2
Slide 45: Key takeaways for bond investors
Key takeaways for bond investors TOP 2 reputable Strong portfolio for the Solid profitability and Financing green developer in Estonia coming years financial position projects • 700+ handed-over homes • Revenue for 2023 increased • Weighted average • The raised capital will be and 33 000+ m2 of spac
Slide 46: Creating homes with soul
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