Archicom Sa · GPW:ARH
Archicom Sa — IPO Roadshow (September 2023)
40 slides from Archicom Sa's IPO roadshow presentation, September 2023
Slide 1: Investors Presentation
Investors Presentation www.archicom.pl
Slide 2: Legal disclaimer
Legal disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL OR OTHERWISE RESTRICTED BY LAW. THE INFORMATION CONTAINED IN THIS
Slide 3: Welcome Message from the Chairman of the Supervisory Board
Welcome Message from the Chairman of the Supervisory Board Nicklas Lindberg Chairman of the Archicoms Supervisory Board CEO of Echo Investment www.archicom.pl NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, Page 3 AU
Slide 4: Right time to…
Right time to… Strong business on solid foundation in the favourable market environment Equity issue to boost Company residential offer on plots already identified Successfully completed integration of the Echo residential business Leader of the Wroclaw market with nationwide development potential V
Slide 5: Experienced leadership
Experienced leadership Management Board Supervisory Board Presenters Presenter Waldemar Olbryk Agata Skowrońska-Domańska Dawid Wrona Rafał Zboch Maciej Drozd CEO CFO Board Member Board Member Supervisory Board Member • More than 2 years in • More than 2 years in • In Archicom since 2022 and in • Mor
Slide 6: Key highlights
01 Key highlights www.archicom.pl NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, Page 6 AUSTRALIA, CANADA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL OR OTHERWISE RESTRICTED BY LAW.
Slide 7: Key highlights
Key highlights Archicom supported with the new issue Archicom (after 1 Aug 2023) after aquisition of Echo Investment residential business Increased land bank Archicom (prior 1 Aug 2023) prior aquisition of Echo One of the leading Polish residential developers +70-100k PUM Investment residential busi
Slide 8: Residential operations from Echo and Archicom in one company
Residential operations from Echo and Archicom in one company Apartments in offer Operational efficiency The development of similar companies’ culture and in effect allowing for proper business merger was a long process. The recent consolidation of residential business was the successful conclusion o
Slide 9: Positive residential sentiment to remain
Positive residential sentiment to remain Market events and prospects The abolition of the PCC tax for people who buy their 01 Inflation dropped to 10.1% (y/y) in August this year 04 first apartment and the announcement of a 6% tax (GUS flash estimate). on the sixth apartment. Unemployment in Poland
Slide 10: Use of proceeds from the contemplated new issue to increase land bank
Use of proceeds from the contemplated new issue to increase land bank and facilitate future growth Pressure on land supply Current key challenge The limited availability of land especially in densely populated urban areas may result in higher property prices. Goals New funds will allow for dynamic i
Slide 11: Archicom after acquisition of Echo Investment's residential business has solid foundation
Archicom after acquisition of Echo Investment’s residential business has solid foundation for future growth Archicom becoming one of residential segment leading companies with a focus to grow on all main residential markets in Poland Integration of Group best practices and 12 653 streamlined process
Slide 12: Operating update
02 Operating update www.archicom.pl NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, Page 12 AUSTRALIA, CANADA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL OR OTHERWISE RESTRICTED BY LAW.
Slide 13: Residential developer active on 5 markets
Residential developer active on 5 markets Portfolio of projects under construction as at June 30, 2023 Total projects under construction: Archicom’s projects under construction 2 338 apartments City # of projects # of apartments Wroclaw 10 1 414 Echo Investment’s residential project under constructi
Slide 14: Land Bank covers 5 cities
Land Bank1 covers 5 cities Archicom’s Land Bank Potential for construction of 9 005 apartments City # of projects # of apartments Cracow 4 295 Poznan 2 561 Warsaw 2 684 Wroclaw 18 2 266 Total 26 3 806 25% Poznan 26% Echo Investment’s residential Land Bank Warsaw as of June 30, 2023 (acquired Aug 1,
Slide 15: Archicom manages Echo's remaining ongoing projects
Archicom manages Echo’s remaining ongoing projects Due to ongoing construction or multi-phase/mixed-use projects, some projects could not be transferred Archicom’s markets of operation Echo Investment’s residential portfolio as of June 30, 2023 that was not a subject Markets with Echo Investment’s p
Slide 16: Consolidated operations allow for significant offer growth
Consolidated operations allow for significant offer growth Q2 2023 showed further improvement of the Acquistion should result in significant growth of the offer apartments offer both in Wroclaw and with acqusition of Echo Investment’s reidential business also in other which should drive sales in upc
Slide 17: Acquisition allows for higher yearly sales level
Acquisition allows for higher yearly sales level Planned apartment sales level with additional land bank acquired with the funds from a potential new issue Significant Archicom’s 390 568 sales growth potential apartments sold in H1 2023 735 440 apartments 300 >3.5k sold jointly in Total planned H1 2
Slide 18: Larger organization allows for operational effectiveness
Larger organization allows for operational effectiveness Based on the handovers plan 338 497 handover handover A significant apartments in apartments in part of the 1 689 handovers is Wroclaw in H1 H1 2023 1 369 planned for 2023 H2 2023 928 159 2021 2022 2023 handover apartments in 4 cities in It
Slide 19: Significant expansion of the offer to be visible already in Q4 2023
Significant expansion of the offer to be visible already in Q4 2023 Portfolio of projects under construction planned at December 31, 2023 Total projects under construction: Archicom’s projects under construction 2 446 apartments City # of projects # of apartments Warsaw 1 257 Wroclaw 11 1 196 Total
Slide 20: The acquisition significantly increases the number of projects in development
The acquisition of the Echo Investment residential significantly increases the number of projects in development The potential for introduction by end of 2023 is approximately 1 500 apartments Investments in progress 1 884 1 976 2 446 1 525 1 669 1 692 1 524 1 381 1 414 71% 30% 36% 52% 39% 43% 51% 6
Slide 21: Active care for the environment
Active care for the environment Archicoms sustainable operations meet stakeholders needs and are annually reported in compliance with GRI Standards at basic level ESG Strategy Actions Creating good living spaces Ethics and values positively influencing the development of cities Acting with ESG princ
Slide 22: Financial update
03 Financial update www.archicom.pl NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, Page 22 AUSTRALIA, CANADA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL OR OTHERWISE RESTRICTED BY LAW.
Slide 23: Growing profits from residential operations
Growing profits from residential operations Revenue recognized from 338 handovers in 1H23 vs. 382 in the PLN mn 1H22 1H23 comparable period of 2022, in accordance with the operating cycles of the implemented projects. In 2023 the transfers should accumulate in the 2nd half of the year. Sales 221.5 2
Slide 24: Balance sheet – the foundation for growth
Balance sheet – the foundation for growth PLN mn Dec 31, 2022 Jun 30, 2023 Fixed assets, including: 96.7 107.6 Stable level of fixed assets compared to December 31, 2022 PPE 11.0 2.7 Changes in the accounting classification of assets due to change Investment properties 10.9 29.1 of the Company's reg
Slide 25: Balance sheet – the foundation for growth
Balance sheet – the foundation for growth PLN mn Dec 31, 2022 Jun 30, 2023 Equity capital 731.7 733.6 Change in equity as a result of net profit and dividends paid Long-term liabilities, including: 176.0 145.6 Change in long-term liabilities as a result of bond issue (+) M7/2023 Credits, loans and b
Slide 26: Consolidation of the residential business
Consolidation of the residential business Balance sheet of the Echo Residential Business Division Echo Investment Transaction structure Archicom’s PLN mn residential Mar 31, 2023 Mar 31, 2023 Total Assets 1 430.9 963.2 Working capital 539.5 752.1 Issuance of shares in Contribution in kind of the Inv
Slide 27: Financial readiness to seize opportunities
Financial readiness to seize opportunities PLN mn Dec 31, 2022 Jun 30, 2023 Consciously maintaining a high cash balance as a guarantee of Cash and other short-term financial assets* 275.5 452.4 business security, a basis for sustaining the practice of dividend payments as well as increasing the flex
Slide 28: Bonds maturity (as of June 30, 2023)
Bonds maturity (as of June 30, 2023) 500 PLN 452mn cash balance* as at June 30, 2023 450 400 350 300 250 200 150 M6/2022 100 M4/2019 M7/2023 M3/2018 50 110,4 79,1 60,8 61,6 51,0 0 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 PLN mn Bonds with maturity dates Bonds redeemed * inclu
Slide 29: Diversified financing
Diversified financing PLN 172.0 mn (stable) Corporate PLN 330.4 mn bonds +29.3% PLN 733.6 mn Clients prepayments +0.3% Equity PLN 19.7 mn -5.7% Bank debt Data as of June 30, 2023 in comparison to December 31, 2022 Source: Archicom financial reports and Archicom www.archicom.pl NOT FOR RELEASE, PUBLI
Slide 30: Dividend policy
Dividend policy Dividend (PLN mn) in CF terms, i.e. in the year in which it was paid 65,0 62,1 54,4 16,8 45,9 Dividend from profit 2022 42,2 31,8 On June 23, 2023, the Management Board adopted a 16,4 31,6 17,2 resolution recommending the payment of dividend from profit for 2022 in the amount of PLN
Slide 31: Q&A
04 Q&A www.archicom.pl NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, Page 31 AUSTRALIA, CANADA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL OR OTHERWISE RESTRICTED BY LAW.
Slide 32: Appendix
05 Appendix www.archicom.pl NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, Page 32 AUSTRALIA, CANADA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL OR OTHERWISE RESTRICTED BY LAW.
Slide 33: Projects under construction – Archicom's portfolio
Appendix Projects under construction as of June 30, 2023 – Archicom’s portfolio Planned Estimated Expenses PUM Number of Sales level Construction Planned Project revenues budget incurred [sqm.] apartments [% of units sold] begins completion [PLN mn] [PLN mn] [%] Wroclaw Olimpia Port M24, M25, M26 /
Slide 34: Projects under construction – Echo Investment's residential portfolio
Appendix Projects under construction as of June 30, 2023 – Echo Investment’s residential portfolio (acquired August 1, 2023)1 Planned Estimated Expenses PUM Number of Sales level Construction Planned Project revenues budget incurred [sqm.] apartments [% of units sold] begins completion [PLN mn] [PLN
Slide 35: Projects in preparation – Archicom's portfolio
Appendix Projects in preparation as at June 30, 2023 – Archicom’s portfolio (prior of Echo residential segment acquistion) Planned Estimated Expenses PUM Number of Sales level Construction Planned Project revenues budget incurred [sqm.] apartments [% of units sold] begins completion [PLN mn] [PLN mn
Slide 36: Projects in preparation – Archicom's portfolio
Appendix Projects in preparation as at June 30, 2023 – Archicom’s portfolio (prior of Echo residential segment acquistion) Planned Estimated Expenses PUM Number of Sales level Construction Planned Project revenues budget incurred [sqm.] apartments [% of units sold] begins completion [PLN mn] [PLN mn
Slide 37: Projects in preparation – Echo Investment's residential portfolio
Appendix Projects in preparation as at June 30, 2023 – Echo Investment’s residential portfolio (acquired August 1, 2023)1 Planned Estimated Expenses PUM Number of Sales level Construction Planned Project revenues budget incurred [sqm.] apartments [% of units sold] begins completion [PLN mn] [PLN mn]
Slide 38: Projects in preparation – Echo Investment's residential portfolio
Appendix Projects in preparation as at June 30, 2023 – Echo Investment’s residential portfolio (acquired August 1, 2023)1 Planned Estimated Expenses PUM Number of Sales level Construction Planned Project revenues budget incurred [sqm.] apartments [% of units sold] begins completion [PLN mn] [PLN mn]
Slide 39: Projects at an early stage of preparation
Appendix Projects at an early stage of preparation as at June 30, 2023 – Echo Investment’s residential portfolio (acquired August 1, 2023)1 Land area GLA/PUM Project [sqm.] [sqm.] Warszawa, ul. Towarowa 12 300 26 400 Łódź, ul. Widzewska 29 600 33 700 Total 41 900 60 100 Projects at an early stage of
Slide 40: Remaining land and office projects in operation
Appendix Remaining land of Archicom as of June 30, 2023 Land area Project [sqm.] Wrocław, Murowana 3 100 Wrocław, Jagodno 3 500 Wrocław, Vespucciego 701 Total 7 301 Office projects in operation as of June 30, 2023 - Archicom’s portfolio (prior of Echo residential segment acquistion) Recognized gain