One United Properties S.a. · BVB:ONE
One United Properties — Investor Presentation (December 2023)
68 slides from One United Properties's investor presentation, December 2023
Slide 1: Investor Presentation December 2023
INVESTOR PRESENTATION December 2023 2023 © 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 2023 Results Highlights 5. Management 2023 © ONE UNITED PROPERTIES 3 CONFIDENTIAL DOCUMENT
Slide 4: Executive Summary
EXECUTIVE SUMMARY 2023 © 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 Completed Construction Planning phase phase GDV €635.2m €1,163.3m €775.7m No of units 2,424 4,478 2,956 Commercial segment prospect 15.11.2023 Est. by 31.12.2025 Market Value (Gross Asset €449.3m €778.8m1 Value) GLA 141K 237K (1) Calculated for the comple
Slide 8: Key Financial Data
KEY FINANCIAL DATA Turnover Net profit 1,166 509.7 502.5 1,120 537.4 197.4 396.4 176.9 2019 2020 2021 2022 2019 2020 2021 2022 Sales of residential property Rental income1 769.5 78.9 703.3 437.5 147,4 16.5 11.8 1.7 2019 2020 2021 2022 2019 2020 2021 2022 1 Rental income refers to income generated by
Slide 9: Key Indicators
KEY INDICATORS Built surface1 – residential (m2) GLA office portfolio (m2) 1,047,000 136,000 101,000 483,000 350,000 47,000 270,000 23,000 2019 2020 2021 2022 2019 2020 2021 2022 Cumulated, includes both finalized and under construction. 1 Apartments sold and pre-sold2 GLA retail portfolio3 (m2) 1,7
Slide 10: 2023 Budget
2023 BUDGET The revenues from residential property sales are targeted to reach RON 1bn in 2023 (+31% vs 2022), driven by a diverse product offering of One United Properties in the upper segment of the residential real estate. The rental revenues, including rental income and revenues from services to
Slide 11: 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 12: 1. About One United Properties
1. ABOUT ONE UNITED PROPERTIES 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 13: 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 7.4%, above EU CAGR of 2%. Bucharest-Ilfov region has population of 2.3 million inhabitants and GDP per capita of 164% compared to EU-27 average, making
Slide 14: Track Record of Execution; Risk Reduction Through Pre-Sales
4. TRACK RECORD OF EXCELLENCE IN EXECUTION ONE so far developed 11 residential projects with GDV of €485m and 3 office buildings, having won numerous awards both locally and internationally. The developments are distinguishable by the exceptional interior design. 5. RISK REDUCTION THROUGH BUSINESS M
Slide 15: Strategic Keypoints
STRATEGIC KEYPOINTS 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 of action to achieve this are: • Maintain leadership position in the prim
Slide 16: Residential Timeline
RESIDENTIAL ONE TIMELINE Peninsula ONE Verdi Park II ONE ONE Modrogan Herastrau Vista ONE Timpuri Noi ONE Cotroceni Towers ONE ONE Floreasca City Vista Club ONE ONE Herastrau Floreasca City Towers ONE ONE €51.5 North ONE Cotroceni equity Downtown Park III & IV Lofts raise ONE ONE ELIADE Plaza Techno
Slide 17: 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, bei
Slide 18: 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 19: Recognition
RECOGNITION 2023 2023 2022 2022 2022 2022 One United Properties One United Properties One United Properties One United Properties One Cotroceni Park One United Properties Residential developer Real Estate Developer Best Company in Public Listed Company of the Year Best practices for Best Urban of th
Slide 20: Recognition
RECOGNITION 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 Year One Tower Residential Developer Development of the Year at HOF the first office building in received the WELL H
Slide 21: ONE on BVB
ONE ON BVB INDICES ANALYST COVERAGE Average daily liquidity in 2022: RON 1 million P/E : 6.2 on 2022 profit 2022 DivY: 2.5%, paid semi-annually Shareholding structure as of 15.11.2023: Legal entites (13.80%) Andrei-Liviu Diaconescu through OA Liviu Holding Invest SRL (27.72%) Individual Investors (2
Slide 22: ONE Shares Development in 9M 2023
ONE SHARES DEVELOPMENT IN 9M 2023 9M 2023 Liquidity of ONE shares decreased 37% in Q3’23 vs Q2’23, in line with the market, registering trades of RON 58.8m. The average daily traded value for ONE shares in Q3 2023 was RON 0.68m, as ONE shares grew 3.5% within the quarter. In the 9M’23, the share pri
Slide 23: 2. Portfolio
2. PORTFOLIO 2023 © 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 27.72% 27.72% 44.56% One United Properties ONE RESIDENTIAL1 ONE OFFICES OTHER INVESTMENTS OPERATIONAL One Lake District One Long Term One Mircea Eliade One Peninsula One Herăstrău O
Slide 25: Opportunity: Macro Context
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 (%, annual change)
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: 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 28: 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 29: Delivered Developments
ONE VERDI PARK ONE HERASTRAU PLAZA ONE MIRCEA ELIADE ONE FLOREASCA LAKE ONE CHARLES ONE HERASTRAU TOWERS DE GAULLE DELIVERED DEVELOPMENTS MADRIGALULUI ONE HERASTRAU PARK RESIDENCE 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 30: One Verdi Park, Floreasca Vista, Timpuri Noi, Cotroceni Park
ONE ONE VERDI PARK FLOREASCA VISTA Starting date Nov‘19 Starting date Q2’20 Completion date Q1’23 Completion Date Q2’23 RESI UNITS 332 RESI UNITS 63 PP 522 PP 73 GBA (sqm) 62,590 GBA (sqm) 11,677 Saleable (sqm) 38,282 Saleable (sqm) 9,676 - Apartments 35,155 - Apartments 9,676 - Commercial 3,127 GDV
Slide 31: One Herăstrău Towers, Mamaia Nord, Mircea Eliade, Herăstrău Plaza
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 265 PP 71 148 GBA (sqm) 30,982 GBA (sqm) 8,523 18,552 Saleable (sqm) 21,985 Saleable (sqm) 6,285 13,639 - Apart
Slide 32: One Charles de Gaulle, Herăstrău Park, Madrigalului, Floreasca Lake
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: Developments Under Construction & in Pipeline
DEVELOPMENTS UNDER CONSTRUCTION ONE & IN PIPELINE VERDI PARK 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 34: One Peninsula, Modrogan, Herăstrău Vista, Lake Club
ONE ONE PENINSULA MODROGAN Starting date Oct‘20 Starting date Oct‘20 Estimated Completion Date Q4’24 Estimated Completion Date 2024 RESI UNITS 170 RESI UNITS 48 PP 295 PP 90 GBA (sqm) 53,821 GBA (sqm) 14,803 Saleable (sqm) 36,087 Saleable (sqm) 9,739 - Apartments 36,087 - Apartments 9,739 GDV (m) €
Slide 35: One Floreasca Towers, High District, North Lofts, Lake District
ONE ONE FLOREASCA TOWERS HIGH DISTRICT Starting date Nov’22 Starting date Nov’22 Estimated Completion Date Q2’25 Estimated Completion Date Q4’25 RESI UNITS 208 RESI UNITS 829 PP 293 PP 1,134 GBA (sqm) 43,389 GBA (sqm) 108,216 Saleable (sqm) 21,210 Saleable (sqm) 73,016 - Apartments 20,237 - Apartmen
Slide 36: ONE Victoriei Plaza
3 3 ONE Victoriei Plaza 2023 © ONE UNITED PROPERTIES 36 CONFIDENTIAL DOCUMENT
Slide 37: 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 office portfolio GLA of 224K sqm by the SEGMENT end of 2025. Out of that, 114K sqm are already
Slide 38: 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 Q4 2022 (1) 12 month forecast ü During 2022, a total of 286.1k sqm of office space were rented in 7.75% Sofia Bucharest, a figu
Slide 39: Office Portfolio
OFFICE PORTFOLIO ONE ONE COTROCENI PARK 2 COTROCENI PARK 1 Starting date Jun ‘21 Starting date Sep ‘19 Completion Date Dec ‘22 Completion Date Dec ‘21 TOTAL GLA 34,456 TOTAL GLA 46,252 - Offices (sqm) 32,075 - Offices (sqm) 43,261 - Terraces (sqm) 2,111 - Terraces (sqm) 1,975 - Storage (sqm) 270 - S
Slide 40: Retail Portfolio
RETAIL PORTFOLIO BUCUR OBOR ELIADE TOWER Acquisition date Oct’22 Acquisition date Feb ’22 TOTAL GLA 8,000 RETAIL GLA 26,000 - Offices (sqm) 8,000 Tenants Auchan and multiple small businesses PP 47 ONE GALLERY Starting date Q3’22 Completion Date Q4’24 RETAIL GLA 13,500 Tenant Multiple (high-end) 2023 ©
Slide 41: Historical Landmarks Portfolio
HISTORICAL LANDMARKS PORTFOLIO 2023 © ONE UNITED PROPERTIES 41 CONFIDENTIAL DOCUMENT
Slide 42: 3. Historical Results Highlights
3. HISTORICAL RESULTS HIGHLIGHTS 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 43: Evolution of the Residential Segment
EVOLUTION OF THE RESIDENTIAL SEGMENT 703.3 769.5 41% The decrease in the number of units sold in 2022 vs 2021 was the result of the lack of 35% 35% available stock throughout most of the year, due to significant delays from authorities in 437.5 451.6 445.5 approving the building permits. The situati
Slide 44: Evolution of the Commercial Segment
EVOLUTION OF THE 78.9 COMMERCIAL SEGMENT The rental income, which also includes 54.2 revenues from tenant services, became significant as of 2022, following the delivery and the lease out of the two major developments of One United Properties, One Tower and One Cotroceni Park Phase 1, as well as acq
Slide 45: Global Result
GLOBAL RESULT 612.7 604.4 576.1 572.9 Accelerated growth in 2022 with over 4x increase in 509.7 502.5 the key indicators between 2018 and 2022. Gross result is the relevant indicator due to significant part of the taxes being deferred. For example, the income tax for 2022 amounted to RON 70.4m, wher
Slide 46: 4. 9M 2023 Financial Results
4. 9M 2023 FINANCIAL RESULTS 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 47: Financial Highlights
FINANCIAL HIGHLIGHTS 1,153.1 908.8 876.2 2% +4 7 % +4 814.7* 597.7 482.9 479.5 429.3 411.3 + 10% +7% 388.8* 385.4* 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 CONSOLIDATED REVENUE FROM CONSOLIDATED GROSS CONSOLIDATED EBITDA TURNOVER RESIDENTIAL SALES PROFIT *Excluding one-off Buc
Slide 48: Key Financial Figures – Gross Profit
KEY FINANCIAL FIGURES – GROSS PROFIT The consolidated turnover of One United Properties grew 27% 1,153.1 in 9M’23 compared to 9M’22, reaching RON 1,153.1m. Excluding 908.8 the Bucur Obor impact of RON 94.1m generated in 2022, the YoY increase in the consolidated turnover was 42%. 2 % Turnover in 9M’
Slide 49: Key Financial Figures - Residential
KEY FINANCIAL FIGURES - RESIDENTIAL 876.2 Revenues from residential division increased 47%, 7 % reaching RON 876.2m in 9M’23 vs RON 597.7m in +4 9M’22. 597.7 The net income from residential property decreased 10% YoY, reaching RON 251.6m in 9M’23 vs 278.2m in 9M’22 due to the revenue recognition of
Slide 50: Key Financial Figures - Commercial
KEY FINANCIAL FIGURES - COMMERCIAL The rental income, which includes the income generated by the commercial division together with 98.7 the revenues from the tenant services, saw a 91% increase, reaching RON 98.7m in 9M’23 vs RON 51.8m in 9M’22. 67.9 1% +9 The effect has been driven by the revenues c
Slide 51: Key Financial Figures
KEY FINANCIAL FIGURES Administrative expenses decreased 23% to RON 56.6m, due to the recognition of the major part of expense related to the 482.9 SOP. The total non-cash value of SOP in 9M’23 is RON 18.8m, vs RON 44m in 9M’22. Excluding the SOP impact, the 429.3 administrative expenses increased 29
Slide 52: Assets – Residential
ASSETS – RESIDENTIAL Current assets grew 20% in 9M’23, reaching RON 2.3 billion due to a 44% increase in inventories (residential properties), which reached RON 953.1m. The significant increase in the inventory represents the addition of One Cotroceni Towers, following the acquisition of the already
Slide 53: Assets – Office, Retail & Landbank
ASSETS – OFFICE, RETAIL & LANDBANK The non-current assets increased 9%, reaching RON 2.6 billion, growth driven primarily by a 9% increase in investment properties to 2.5bn as of the end of 9M 2023, representing the commercial segment and the landbank. The appreciation is primarily due to the inclus
Slide 54: Liabilities
LIABILITIES The increase in the non-current liabilities was driven by a 29% growth of L&B from banks and other entities, representing a major part of long-term bank loan amounting to approx. RON 822.9m. The increase is primarily due to new loan for One Athénée Plaza and drawings for financing One Cot
Slide 55: Cash Position
CASH POSITION 567 -20 Due to significant development activity in 9M’23 as well as payment of % 454.5 the second tranche of the 2022 dividend in the amount of RON 37.5m on 30.05.2023, the cash position declined 20%, down to RON 454.5m. However, compared to the situation as of the end of Q2’23, the ca
Slide 56: Cash Inflow
CASH 238 INFLOW 70 142 168 Amounts to be collected under contracts concluded 137 with customers as of 30.09.2023, are EUR 305m in 128 additional cash by 2025. There are the amounts due only for the units that were pre-sold and are to be 98 delivered in the future, excluding any sale done after 30.09
Slide 57: Residential Pre-Sales
RESIDENTIAL PRE-SALES 66,212 m2 795 apartments with a total surface of 66,212 sqm and 230.2 1,310 parking spaces and other unit types were sold and pre-sold for a total of EUR 230.2m in 9M’23. 2 % 0 % + 12 17 In 9M’22, the Group sold and pre-sold 260 apartments + with a total surface of 24,505 sqm,
Slide 58: Resi Trends
RESI TRENDS Despite a 3.8% YoY decrease in residential sales in Bucharest for Q3’23, One United Properties defied market trends by selling a record 329 apartments in 3 months, marking a substantial 254% YoY increase. At 9M 2023, the most sought-after development was One Lake District, followed by On
Slide 59: Resi Trends
RESI TRENDS Note: 2 room = 1 bedroom. Over half of the apartments sold by One United Properties Studio 5+ room/villas in 9M’23 were two-room apartments, with a total sellable 6% 3% area of 28,428 sqm (43% of saleable area), with the demand for these units increasing 170% vs 9M’22. Demand for the 2-r
Slide 60: Business & Governance Highlights
BUSINESS & GOVERNANCE HIGHLIGHTS Finalization of 524 residential units at Agreement with Infineon Technologies The management maintains the 2023 One Verdi Park, One Floreasca Vista for a future office development of 20K budget, targeting turnover of RON 1.43 and One Timpuri Noi, with a total GBA GLA
Slide 61: 5. Management Team
5. MANAGEMENT TEAM 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 62: Organizational Structure
ORGANIZATIONAL STRUCTURE GENERAL SHAREHOLDERS MEETING BOARD OF DIRECTORS Nomination & Risk & Audit EXECUTIVE MANAGEMENT Remuneration Committee Committee PROJECT FINANCIAL LEGAL INVESTOR INVESTMENTS DEVELOPMENT RELATIONS ESG Committee Internal Audit Litigations ASSET Accounting ARCHITECTURE SALES MAN
Slide 63: 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 64: 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 , Capital Markets and Opera
Slide 65: 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 66: 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 long
Slide 67: 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 68: For any follow-up questions
For any follow-up questions: Zuzanna Kurek, IR Manager investors@one.ro 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
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