One United Properties S.a. · BVB:ONE
One United Properties — Investor Presentation (November 2022)
70 slides from One United Properties's investor presentation, November 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION November 2022 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 2: Disclaimer
DISCLAIMER This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of shares issued by One United Properties S.A. (“ONE”), or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy One United Properties share
Slide 3: Contents
Contents Executive Summary 1. About One United Properties 2. Portfolio 3. Historical Results Highlights 4. 9M 2022 Results Highlights 5. 2022 Outlook 6. Management 2022 © ONE UNITED PROPERTIES 3 CONFIDENTIAL DOCUMENT
Slide 4: Executive Summary
EXECUTIVE SUMMARY 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 5: One United Properties
One United Properties is a leading green investor and developer of residential, mixed- use and commercial real estate in Bucharest, Romania. One United Properties is an ONE UNITED innovative company dedicated to accelerating the adoption of construction practices for energy-efficient, sustainable, a
Slide 6: ONE Track Record
ONE TRACK RECORD 2022 – FUTURE 2012 – 2018 2019 – 2021 Focus on large to very large High-end and ultra-high-end developments developments Attention to quality & brand recognition Smaller developments First large-scale high-rise Consolidation of the position developments Entry to the office market on
Slide 7: ONE at a Glance
ONE AT A GLANCE Residential segment prospect Construction Planning phase phase GDV €1,078m €677m No of units 3,666 3,477 Office segment prospect 30.11.2022 Est. by 31.12.2022 Market Value (Gross Asset €269m €364m1 Value) GLA 103K 138K (1) Calculated for the completion of buildings under development
Slide 8: Key Financial Data
KEY FINANCIAL DATA Turnover Net profit 1.523.119.443 548.709.933 509.687.153 1.120.016.103 537.436.296 197.406.676 176.936.343 396.372.769 2019 2020 2021 2022 Budget 2019 2020 2021 2022 Budget Sales of residential property Rental income 71.778.670 1.217.899.669 703.317.672 437.503.724 11.973.375 147
Slide 9: Key Indicators
KEY INDICATORS Built surface1 – residential (m2) GLA office portfolio (m2) 1,047,000 138,000 101,000 483,000 350,000 47,000 270,000 23,000 2019 2020 2021 2022 Budgeted 2019 2020 2021 2022 Budgeted Cumulated, includes both finalized and under construction. 1 Apartments sold2 GLA retail portfolio3 (m2
Slide 10: ONE Today
ONE TODAY ü Above EU average CAGR of GDP per capita I Attractive Market & Macro Conditions ü Unmatched demand of residential properties amid highest overcrowding within EU-27 Proven business model ü Proven residential development process providing returns and superior margins II delivering superior
Slide 11: 1. About One United Properties
1. ABOUT ONE UNITED PROPERTIES 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 12: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 1. FAVOURABLE MARKET DYNAMICS FOR RESIDENTIAL SEGMENT Between 2016-2020, Romania’s GDP per capita increased with CAGR of 3.17%, above EU CAGR of 0.63%. Bucharest-Ilfov region has population of 2.3 million inhabitants and GDP per capita of 160% compared to EU-27 average, mak
Slide 13: Track Record of Excellence; Risk Reduction Through Pre-Sales
4. TRACK RECORD OF EXCELLENCE IN EXECUTION ONE so far developed 8 residential projects with GDV of approx. €300m and 2 office buildings, having won numerous awards both locally and internationally. The developments are distinguishable by the exceptional interior design, made by Lemon Interior Design
Slide 14: Strategic Keypoints
STRATEGIC One United Properties’ strategy is to invest in premium development opportunities with prospects of sustained returns and to continue leading the high-end residential development sector. The main directions KEYPOINTS of action to achieve this are: • Maintain leadership position in the prim
Slide 15: Residential Timeline
RESIDENTIAL TIMELINE ONE Herastrau ONE Vista Timpuri Noi ONE Modrogan ONE Verdi Park ONE ONE Floreasca City Vista Club ONE Floreasca Towers ONE €51.5 North equity Lofts raise ELIADE Tower ONE Victoriei Plaza FINANCIAL OFFICE & RETAIL MILESTONES *OFL I – developed under a different company TIMELINE 2
Slide 16: Brands
BRANDS The ONE brand family is the company’s flagship, standing for ultimate design, top quality and exclusive locations. One United Properties uses a brand strategy with a strong high-end brand umbrella covering multiple income segments: medium, medium-high, high and very-high. CC @ ONE Properties
Slide 17: Interior Design
INTERIOR DESIGN Superior interior design is at the core of ONE’s business. All of One United Properties developments are distinguishable by the exceptional design, made by Lemon Interior Design. Lemon is a a multi-award-winning interior design and fit-out company based in Bucharest. Lemon received a
Slide 18: Purpose Statement
PURPOSE STATEMENT One United Properties’ purpose is to improve existing and to build new communities, by developing quality, energy-efficient buildings, as well as to generate long-term value growth for the shareholders. One United Properties has pioneered mixed-use development concept in Romania, b
Slide 19: Sustainability
SUSTAINABILITY One United Properties is a member of Romanian Green Building Council (RGBC), organization promoting environmental responsibility and energy efficiency. All office developments are WELL Health and Safety certified, the most rigorous certification focused on employee wellbeing, as well
Slide 20: Recognition
RECOGNITION Uncompromising quality, commitment to the environment and outstanding design, winning accolades year after year. EUROPEAN EUROPEAN PROPERTY PROPERTY AWARD AWARD 2021 2021 2020 2020 2020 2019 2019 2019 One Tower One Tower One Mircea Eliade One Floreasca City Leader Green Developer of the
Slide 21: ONE on BVB
ONE ON BVB INDICES MARKET MAKERS Average daily liquidity in 2021: RON 1.9 million P/E : 6.9 on 2021 profit 2021 DivY: 2.13%, paid semi-annually Shareholding structure as of 01.09.2022: ANALYST COVERAGE Victor Capitanu (through Vinci Ver Free-float Holding) 27.58% 44.84% Andrei Diaconescu (through OA
Slide 22: ONE Shares Development in 9M 2022
ONE SHARES DEVELOPMENT IN 9M 2022 In 9M’22, ONE was the 9th most traded stock in terms of absolute liquidity, registering trades of RON 175.4m and 13th by liquidity to free- float. The market capitalization as of 30.09.2022, was RON 3.2bn, making One United Properties the most valuable entrepreneuri
Slide 23: 2. Portfolio
2. PORTFOLIO 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 24: Group Structure
GROUP STRUCTURE Victor Căpitanu through Vinci VER Holding Andrei Diaconescu through OA Liviu Holding Invest Free-float 27.58% 27.58% 44.84% One United Properties ONE RESIDENTIAL ONE OFFICES OTHER INVESTMENTS OPERATIONAL One Lake District One Long Term One Mircea Eliade One Peninsula One Herăstrău On
Slide 25: ONE Mamaia Nord, Timpuri Noi, Floreasca Vista
22 23 16 21 20 15 14 14 ONE Mamaia Nord 15 ONE Timpuri Noi 16 ONE Floreasca Vista 21 ONE City Club 22 ONE North Lofts 20 ONE Athenee 23 ONE Herastrau City 2022 © ONE UNITED PROPERTIES 25 CONFIDENTIAL DOCUMENT
Slide 26: Market Opportunity: Bucharest
Bucharest Metropolitan Area - GDP MARKET OPPORTUNITY: evolution (EUR bn) BUCHAREST 81 88 96 66 73 58 61 For at least 20 years, in various ways, the EU is using funds to foster convergence, 54 transferring funds from the states in the developing and mature markets towards those in the emerging market
Slide 27: Bucharest Opportunity: Macro Context
BUCHAREST OPPORTUNITY: MACRO CONTEXT Macroeconomic outlook influenced by high inflation rates across Bucharest GDP per capita is at EU average level and expected to all CEE countries, while GDP growth remains modest grow by a higher CAGR (8.6% until 2025) Harmonized Index of Consumer Price (%, annua
Slide 28: Residential Segment - Target
RESIDENTIAL Premium residential developments concentrate around the northern area of SEGMENT - TARGET Bucharest The target clients of One United Properties for the residential segment are: • clients looking for developments located in premium areas of Bucharest (Herăstrău, Floreasca, Primăverii, Dor
Slide 29: Residential Segment - Development
RESIDENTIAL SEGMENT ONE’S RESIDENTIAL DEVELOPMENT PROCESS - DEVELOPMENT Identifying the investment opportunity Feasibility analysis and urban and legal due diligence Prior to making a decision to acquire land for development, the management carries out a thorough analysis on the investment Adoption
Slide 30: Delivered Developments
ONE MAMAIA NORD ONE HERASTRAU PLAZA ONE MIRCEA ELIADE ONE FLOREASCA LAKE ONE CHARLES ONE HERASTRAU TOWERS DE GAULLE DELIVERED DEVELOPMENTS MADRIGALULUI ONE HERASTRAU PARK RESIDENCE 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 31: ONE Herăstrău Towers and Other Delivered Projects
ONE ONE HERĂSTRĂU TOWERS MAMAIA NORD Phase I Phase II Starting date Oct‘18 Starting date Sep‘18 Q3’22 Completion Date Jan’22 Completion Date Jul‘21 Q4’24 RESI UNITS 147 RESI UNITS 50 86 PP 255 PP 69 148 GBA (sqm) 33,007 GBA (sqm) 8,523 19,800 Saleable (sqm) 21,985 Saleable (sqm) 6,285 10,039 - Apart
Slide 32: ONE Herăstrău Park and Delivered Projects
ONE ONE CHARLES DE GAULLE HERĂSTRĂU PARK Starting date Oct‘15 Starting date Aug‘15 Completion Date Jun‘18 Completion Date May‘17 RESI UNITS 33 RESI UNITS 109 PP 55 PP 155 GBA (sqm) 9,197 GBA (sqm) 27,050 Saleable (sqm) 5,378 Saleable (sqm) 17,806 - Apartments 5,378 - Apartments 17,806 GDV (m) € 22.7
Slide 33: Under Construction & in Pipeline Developments
UNDER CONSTRUCTION & IN PIPELINE DEVELOPMENTS ONE FLOREASCA ONE COTROCENI PARK ONE VISTA VERDI PARK ONE PENINSULA ONE TIMPURI NOI ONE HERASTRAU VISTA ONE LAKE DISTRICT ONE MODROGAN ONE LAKE CLUB 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 34: ONE Timpuri Noi and Other Developments
ONE ONE TIMPURI NOI FLOREASCA VISTA Starting date Apr‘19 Starting date Q2’20 Scheduled Completion Date Q1’23 Scheduled Completion Date Q1’23 RESI UNITS 147 RESI UNITS 63 PP 173 PP 73 GBA (sqm) 18,372 GBA (sqm) 11,719 Saleable (sqm) 14,113 Saleable (sqm) 9,232 - Apartments 13,148 - Apartments 9,232 -
Slide 35: ONE Peninsula and Cotroceni Park
ONE ONE PENINSULA COTROCENI PARK Starting date Oct‘20 Jun‘21 Starting date Scheduled Completion Date Q4’23 Q4’23 Estimated Completion Date RESI UNITS 168 868 RESI UNITS PP 287 1,361 PP GBA (sqm) 52,959 132,978 GBA (sqm) Saleable (sqm) 36,087 82,359 Saleable (sqm) - Apartments 36,087 64,651 - Apartme
Slide 36: ONE Lake District, Lake Club, High District
ONE LAKE DISTRICT ONE LAKE CLUB Starting date Q3’22 Starting date Jul ’22 Estimated Completion Date Q3’26 Estimated Completion Date Q3’25 RESI UNITS 2,076 RESI UNITS 663 PP 2,614 PP 853 GBA (sqm) 251,663 GBA (sqm) 122,479 Saleable (sqm) 178,047 Saleable (sqm) 59,290 - Apartments 177,068 - Apartments
Slide 37: ONE Victoriei Plaza Eliade Tower
6 5 5 ONE Victoriei Plaza 6 Eliade Tower 2022 © ONE UNITED PROPERTIES 37 CONFIDENTIAL DOCUMENT
Slide 38: Office Segment
OFFICE Building on its residential success, One United Properties entered the office segment in November 2017 through acquisition of One North Gate. ONE focuses on development of Grade A offices, targeting a GLA of 138K sqm by the end of 2022. Out of that, 102K sqm SEGMENT are already finished (One
Slide 39: Office Market – Regional Perspective
OFFICE MARKET – REGIONAL PERSPECTIVE Bucharest provides some of the most attractive office and Main office trends(2) retail yields among main CEE cities Prime yields (%) in Q1 2022 (1) 12 month forecast ü Annual demand of 280k sqm in 2021, with the most sought-after 7,75% Sofia location being Florea
Slide 40: Office Portfolio
OFFICE PORTFOLIO ONE ONE COTROCENI PARK TOWER Phase I Phase II Starting date Sep ‘19 Jun ‘21 Starting date Mar ‘18 Completion Date Dec ‘21 Dec ‘22 Completion Date Dec ‘20 TOTAL GLA 46,252 34,456 TOTAL GLA 24,039 - Offices (sqm) 43,261 32,075 - Offices (sqm) 23,287 - Terraces (sqm) 1,975 2,111 - Terr
Slide 41: Office & Retail Portfolio
OFFICE & RETAIL PORTFOLIO ONE VICTORIEI PLAZA ELIADE TOWER Acquisition date Oct’22 Acquisition date Jul’22 TOTAL GLA 8,000 TOTAL GLA 12,000 - Offices (sqm) 8,000 - Offices (sqm) 12,000 PP 47 PP 93 BUCUR OBOR ONE GALLERY Starting date Q2’22 Acquisition date Feb ’22 Completion Date Q3’24 RETAIL GLA 26
Slide 42: 3. Historical Results Highlights
3. HISTORICAL RESULTS HIGHLIGHTS 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 43: Evolution of the Residential Segment
EVOLUTION OF THE 36% RESIDENTIAL SEGMENT 703.3 • In 2021 the sales of residential properties 35% reached RON 703.3m in 2021, a 64% increase, generated by sales at One 437.5 451.6 Cotroceni Park and One Verdi Park. • Decrease in sales of 33% between 2018 and 2019 was due to units sold in 2019 were in
Slide 44: Gains from Investment Property
GAINS FROM INVESTMENT PROPERTY 298.6 • Revenue and profits from the development of office buildings increased 412% in 2021, reaching RON 298.6m due to the advanced development of office 189.6 buildings, with the main impact being generated by the reception of OCP Office Phase 1, finalization of stru
Slide 45: Global Result
GLOBAL RESULT 612.7 604.4 • Accelerated growth in 2021 with over 4,5x increase in the key indicators between 2018 and 2021. 509.7 • Despite a significantly larger scale of business, the administrative costs have grown at a much slower pace, registering in 2021 an increase of 8% compared to 2020, rea
Slide 46: 4. 9M 2022 Financial Results
4. 9M 2022 FINANCIAL RESULTS 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 47: Financial Highlights
FINANCIAL 908.8 HIGHLIGHTS 5% +4 628.2 597.7 482.9 479.5 +15% % 521.9 00 5 % +1 +9 247.8 239.3 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 CONSOLIDATED REVENUE FROM CONSOLIDATED GROSS EBITDA TURNOVER RESIDENTIAL SALES PROFIT 2022 © ONE UNITED PROPERTIES CONFIDENTIALin RON m DOCUM
Slide 48: Business Highlights
BUSINESS HIGHLIGHTS RESIDENTIAL OFFICE RETAIL 260 apartments sold and pre-sold 30-fold increase in the rental revenue Construction works ongoing at in 9M’22. As of 30.09.2022, 83% of of the commercial segment, driven by One Gallery, the former Ford apartments under development and One Tower (100% le
Slide 49: Business & Governance Highlights
BUSINESS & GOVERNANCE HIGHLIGHTS In Q4 2022, 1,759 new apartment units In October 2022, Company informed the The management maintains the 2022 were added to the sales team portfolio market about the acquisition of Eliade budget as approved in the AGOA from following the receival of the permits for T
Slide 50: Key Financial Figures
KEY FINANCIAL 908.8 FIGURES 5% +4 Consolidated turnover of One United Properties grew 45% in 9M’22 compared to 9M 2021, reaching RON 628.2 908.8m. 479.5 Turnover included revenues from apartment sales (RON % 00 597.7m), gains from office buildings under development +1 (RON 39.3m), gains from bargain
Slide 51: Key Financial Figures - Residential
KEY FINANCIAL FIGURES - RESIDENTIAL 597.7 +15% Revenues from residential division reached RON 597.7m in 9M’ 22, a 15% increase. 521.9 The net income from residential property 278.3 increased by 56% YoY, reaching RON 278.3m % due to the major developments getting closer 6 +5 to the completion. This g
Slide 52: Key Financial Figures - Commercial
KEY FINANCIAL FIGURES - COMMERCIAL The rental income and revenues from services to tenants registered an increase of 722%, going from RON 6.3m for 9M’21, to RON 51.8m in 51.8 9M’22. The effect has been driven by the revenues 35.4 % coming from tenants at One Tower (leased out 22 +7 100%), One Cotroc
Slide 53: Key Financial Figures
KEY FINANCIAL 482.9 FIGURES 5% Excluding the extraordinary non-cash expense without +9 effect on the equity, the G&A expenses increased 35% YoY, driven by larger scale of the business, costs related to public listing and capital increase operation expenses. The non-cash SOP allocation of RON 44m was
Slide 54: Assets – Residential
ASSETS – RESIDENTIAL At the end of Q2’22, One Lake Club (Phase 2) and in Q3’22, One Herastrau Vista were added to the inventory. Still, the inventory (residential properties) decreased 12% in the analyzed period due to continued sales, reaching RON 303.5 m. 83% of the apartments at developments unde
Slide 55: Assets – Office, Retail & Landbank
ASSETS – OFFICE, RETAIL & LANDBANK The non-current assets increased 58%, reaching RON 2.4bn, increase driven primarily by a 58% increase in investment properties, representing the commercial segment and the landbank. One Project 11 One Victoriei All the developments under investment properties incre
Slide 56: Cash Position
CASH POSITION Due to the successful closing of the share capital increase in 694.7 Q3’22 during which the company raised RON 253.7m, and 7% despite the continuous investments, the cash position +3 increased 37% since the beginning of the year, up to RON 508.3 694.7m. The loan to value ratio was 31%
Slide 57: Liabilities
LIABILITIES The increase in the non-current liabilities was driven by a 58% growth of the loans and borrowings, representing a 896 major part of long-term bank loan amounting to approx. RON 763m, which mainly represents the amounts drawn % from bank loans in subsidiaries One Victoriei Plaza, One +54
Slide 58: Residential Pre-Sales
RESIDENTIAL PRE-SALES 260 apartments with a total surface of 24,505 sqm, 544 parking spaces and other unit types were sold and pre-sold for a total of EUR 103.8m in 9M’22. 139.4 28,581 m2 -26% -14% In the same period of 2021, the Group sold 24,505 m2 and pre-sold 276 apartments (569 apartments 103.8
Slide 59: Resi Trends
RESI TRENDS The decrease in unit sales in 9M’22 compared to same period of 2021 was driven by the lack of available stock and the fact that only a limited number of the apartments is available at each of the developments. As of 30.09.2022, 83% of apartments under development or delivered were sold o
Slide 60: Resi Trends
RESI TRENDS Most of the apartments sold by One United Properties in 9M’22 were two-rooms apartments at One Cotroceni Park and Note: 2 room = 1 bedroom. One Verdi Park, to be delivered in 2023. 5+ rooms/villas Studio In Q4'22, One United Properties will have additional 67 2% 0% apartment units at OCP
Slide 61: 5. 2022 Outlook
5. 2022 OUTLOOK 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 62: 2022 Outlook
2022 OUTLOOK The management maintains the 2022 budgeted profitability approved in GSM from 26.04.2022. As of 30.09.2022, One United Properties has been on track with the realization of the budget, having registered results in line with expectations. *The rental income estimate excludes the impact ge
Slide 63: 6. Management Team
6. MANAGEMENT TEAM 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 64: Organizational Structure
ORGANIZATIONAL STRUCTURE GENERAL SHAREHOLDERS MEETING BOARD OF DIRECTORS Nomination & Risk & Audit EXECUTIVE MANAGEMENT Compensation Committee Committee PROJECT FINANCIAL LEGAL SALES INVESTMENTS DEVELOPMENT ESG Committee Internal Audit Accounting Compliance LEASING ASSET ARCHITECTURE (incl. KYC/AML)
Slide 65: Corporate Governance
CORPORATE GOVERNANCE As a listed Company, One complies with the Corporate Governance Code of the Bucharest Stock Exchange and report annually on its Corporate Governance compliance status in accordance with the Bucharest Stock Exchange requirements: • 5 independent directors out of a total of 7 • A
Slide 66: Andrei Diaconescu, Victor Căpitanu
ANDREI DIACONESCU VICTOR CĂPITANU Victor is the co-founder and Executive Andrei is the co-founder and Executive Member of the Board of Directors at One Member of the Board of Directors of United Properties, coordinating Sales, One United Properties, coordinating Marketing and Investments. Operations
Slide 67: Non-Executive Directors
NON-EXECUTIVE DIRECTORS CLAUDIO HORIA MARIUS AUGUSTA DRAGIC MAGDALENA CISULLO DIACONU SOUCEK MANDA Non-Executive Chairman of the Board Non-Executive Director Non-Executive Director Non-Executive of Directors Director Director Mr. Cisullo is the founder Mr. Diaconu is an active Mrs. Magdalena Soucek
Slide 68: Management Team (I)
MANAGEMENT TEAM (I) BEATRICE MIHAI COSMIN VICTOR IONUȚ PĂDUROIU SAMOILĂ SAVI - NIMS DUMITRESCU OCTAVIAN ZUZANNA DUMITRAȘCU CEO Office Chief Financial Chief Legal Officer Partner Office AVRĂMOIU KUREK CEO Residential Division Officer Division Partner Investor Relations Division Manager Mihai has a lo
Slide 69: Management Team (II)
MANAGEMENT TEAM (II) MARIUS ADRIAN ADRIAN ANDRA ANDREI CĂLIN RADU FLORIN CĂLIN ARENDT IONIȚĂ BIZON COROBEA-BÎRCEANU STAN NEACȘU Lead Architect Owner Design Head of Litigation Head of Financing Project Director Project Director Project Director Representative With 30+ years of Adrian has a vast Adria
Slide 70: For any follow-up questions
For any follow-up questions: Zuzanna Kurek IR Manager zuzanna.kurek@one.ro +40 742 431 111 2022 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
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