One United Properties S.A. · BVB:ONE
One United Properties — Investor Day (April 2024)
162 slides from One United Properties's investor day presentation, Apr 4, 2024
Slide 1: Capital Markets Day 2024
UNITED PROPERTIES Capital Markets Day 2024
Slide 2: Capital Markets Day 2024 agenda
=D -Q = One UNITED PROPERTIES Capital Markets Day 2024 April 4th, 2024 18:00 | One Tower | Bucharest, Romania Join us to explore the future of One United Properties at our 2024 Capital Markets Day. The event will focus on our journey since the IPO and our strategic direction up to 2030, detailing ou
Slide 3: Have a question for ONE management team?
Have a question for ONE management team? Scan here to ask! Capital Markets Day 2024
Slide 4: 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 5: Trailer: From ZERO to ONE
Trailer From ZERO to ONE: the story of One United Properties Capital Markets Day 2024
Slide 6: Why ONE? Key investment highlights
Why ONE? Key investment highlights by Victor Căpitanu, co-CEO & co-founder Capital Markets Day 2024
Slide 7: Why Romania?
Why Romania? Capital Markets Day 2024
Slide 8: Increasing affordability
Increasing affordability Years required to purchase 50sqm 1-bedroom apartment in Bucharest 32,8 Source: SVN 27 17,8 15,8 15,5 14,5 13,3 11,6 9,8 9,4 9,8 8,9 8,7 8,3 8,4 8 6,9 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 The lowest ratio of outstanding resident
Slide 9: Why ONE?
Why ONE? Capital Markets Day 2024
Slide 10: One United Properties valuation
One United Properties valuation Segment valuation Ratios Source: Company calculations Source: Company calculations Market capitalization P/E S&P 500 €734m Real Estate 33.8 Residential segment value P/E residential segment € 374m 3.6 Commercial segment value P/BV commercial segment € 359m 1.0
Slide 11: 10+ years delivery track record
10+ years delivery track record Capital Markets Day 2024
Slide 12: Execution in line with IPO strategy
Execution in line with IPO strategy Turnover Net profit in € m in € m CAGR 47% CAGR 32% • As expected, the market dynamics in the premium • Successfully maintain the net profit of residential segment proved to be favorable for ONE even in developments at minimum 35%+ across all 3 context of geopolit
Slide 13: Execution in line with IPO strategy
Execution in line with IPO strategy Sales of residential property Rental income1 includes both rental revenues and revenues from services to tenants 1 Rental income refers to income generated by the Office as well as retail divisions and in € m in € m CAGR 37% CAGR 37% • Successful expansion into th
Slide 14: What we look forward to
What we look forward to Capital Markets Day 2024
Slide 15: ONE 2030
ONE 2030 RESIDENTIAL OFFICE / RETAIL HOSPITALITY Backbone of the business Bringing steady revenues Important for country brand Based on current 275,000+ sqm GLA landbank 11,000+ units completed 3 ***** hotels in operation commercial assets Driven by specific demand. 3 ***** hotels in Future landbank
Slide 16: ONE 2028
ONE 2028 Turnover Net profit in € m in € m 2028* 651.0 2028* 205.8 2024 349.9 2024* 105.1 CAGR 16% CAGR 18% Sales of residential property Rental income1 in € m in € m 2028* 520.2 2028* 64.2 2024 285.0 2024 35.3 CAGR 18% CAGR 20% *The numbers for 2028 outlined herein embody forward-looking statements
Slide 17: Thank you!
Thank you! investors@one.ro
Slide 18: ONE's commitment to Bucharest: economy overview
ONE’s commitment to Bucharest: economy overview by Zuzanna Kurek, IR Manager Capital Markets Day 2024
Slide 19: Romania, CEE's 2nd economy
Romania, CEE’s 2nd economy 9.01% 2016-2022 CAGR RO 1.54% 2016-2022 CAGR EU Continued positive evolution of country GDP CAGR: 7.3% 400 425 321 350 373 284 2022 2023 2024F 2025F 2026F 2027F
Slide 20: Bucharest contributes 28% to Romania's GDP
Bucharest contributes 28% to Romania’s GDP Bucharest Metropolitan Area - GDP evolution (€ bn) 2.2m 6th Source: National Prognosis & Statistics Office largest inhabitants capital in the EU 0.7m 105 111 118 daily 98 61 66 81 90 commuters 54 58 Source: National Prognosis & Statistics Office 2018 2019 2
Slide 21: Romania – growth champion of the CEE
Romania – growth champion of the CEE Cumulative GDP per capita growth across the CEE region, in comparison to Average net salary in Romania evolution EU-27 Average salary in Romania, increased 2.5x between 2013-2023. 49% 46% 900 16% 46% 47% 40% 14% 14% 750 36% 12% 12% 37% 39% 39% 11% 11% 11% 600 30%
Slide 22: The affordability has consistently improved over last decade
The affordability has consistently improved over last decade Increasing affordability Years required to purchase 50sqm 1-bedroom apartment in Bucharest 32,8 Source: SVN 27 17,8 15,8 15,5 14,5 13,3 11,6 9,8 9,8 8,7 9,4 8,9 8,3 8,4 8 6,9 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 23: Romanians prefer to own homes, yet deficit persists
Romanians prefer to own homes, yet deficit of approx. 200K units persists due to overcrowdness and old stock Share of people owning/renting their home Persons living in overcrowded household in 2022 (%) in 2022 (%) Source: Eurostat Source: Eurostat EU-27 50% 41% 42% DE 33% 36% 36% 25% AT 15% 15% 17%
Slide 24: Low ratio of outstanding residential loans
Low ratio of outstanding residential loans, with the majority of transactions being paid in equity Total outstanding residential loans to GDP ratio in 2022 556,000 Romanians Source: Hypostat had a mortgage loan as of March 2023, 86% 85% 76% accounting for 10% 57% 56% 48% 49% 43% 41% 37% 38% 31% 32%
Slide 25: The valuations on BVB remain attractive
The valuations on BVB remain attractive PE ratios as of April 1st, 2024 Dividend Yields as of April 1st, 2024 (%) Source: Intercapital Asset Management, Bloomberg Source: Intercapital Asset Management, Bloomberg 30,9 7,1 23,5 5,2 4,9 3,8 14,7 14,2 14,0 3,4 13,2 3,1 3,0 10,7 2,7 2,6 2,6 10,0 9,9 7,8
Slide 26: Thank you!
Thank you! investors@one.ro
Slide 27: Fireside chat with Daniel Dines
Fireside chat with Daniel Dines Moderated by Andrei Diaconescu Capital Markets Day 2024
Slide 28: How ONE elevates living standards in Bucharest
How ONE elevates living standards in Bucharest by Beatrice Dumitrascu, CEO Residential Division Capital Markets Day 2024
Slide 29: Bucharest: One Emerging City
Bucharest: One Emerging City
Slide 30: Bucharest: One Emerging City
Bucharest: One Emerging City Bucharest accounts for nearly a third of Romania's national GDP, amounting to €98 billion, having one of the highest purchasing powers in the country in one of the most affordable markets in Europe. This makes Bucharest an ideal investment hub for those in our industry l
Slide 31: 2nd Largest Country Economy in the CEE
Bucharest has 2.8 million people with a GDP per capita of 177% of and more than 700K commuters EU average, Bucharest ranked first in the CEE, surpassing Warsaw, Budapest, but also Vienna & Berlin from EU-27 Regions As cheap as only 2nd Bucharest GDP 1,694 euro/sqm Largest Country Economy €98 billion
Slide 32: Residential division as platform for mixed-use ecosystems
The Residential division serves as a pivotal platform for fostering the mixed-use ecosystems ● Our successful record delivery of more than 1400 residential units in 2023, while the Bucharest new housing market delivery dropped to 5.8%, helped us consolidate our position on the market. ● With a Resid
Slide 33: Generating Growth by Empowering Urban Communities
Generating Growth by Empowering Urban Communities
Slide 34: Generating Growth by Empowering Urban Communities
Generating Growth by Empowering Urban Communities We believe the better we understand our market and target customers, the better we can achieve sustainable and predictable growth for all our stakeholders, from residents and investors to the communities we develop in. Our results in 2023 stand as pr
Slide 35: One Residential Key Drivers
One Residential Key Drivers Best Locations in Town High-End Standard across all One Residential always makes sure development customer segments sites are in prime locations aligned with their client One of our core objectives when we decided to segments needs. From Exclusive to Middle Class add new
Slide 36: One Residential expanded from Exclusive to Medium Income communities
One Residential expanded from Exclusive Properties to Upper-Medium and Medium Income communities, with the mission of bringing High- End Design Standard to Large Scale Properties. Luxury High-end Premium A B C Exclusive Premium Prime One-of-a-Kind Upper-Middle Mid-Level Properties Properties Propert
Slide 37: Luxury segment
Luxury segment Targeting customers looking for residencies in ultra-exclusive areas of Bucharest, with landmark design & built features, along with preferential amenities and perks. Exclusive Residential Segment Exclusive Residential clients are looking for one-of-a-kind properties. For this segment
Slide 38: High-end properties
High-end properties Targeting upper-middle customers looking for residencies in Northern and Central areas of Bucharest, interested both in high quality design & build, along with location amenities and quick access to their key points of interest in the city. High-end Residential Segment High-end r
Slide 39: Premium Properties
Premium Properties Middle class clients looking for residencies are our newest targeted customer segment for whom we created large scale developments tailored to their specific needs, while making sure we keep our High-End Design & Build Standard. Prime Residential Segment Prime Residential clients
Slide 40: Proactive sales strategy for new residential segments
As a direct result of our proactive sales strategy for new residential segments, in 2023, we outperformed our last year registered sales by €105.7 million. Proactive direct sales strategies aligned to our new client segments we implemented in 2023 consist of the following: ● 9000 employees from 50 l
Slide 41: Bringing the ONE High-End Standard to Large Scale Developments
Bringing the ONE High-End Standard to Large Scale Developments
Slide 42: Bringing the High-End Design & Build Standard to Large Scale
Bringing the One High-End Design & Build Standard to Large Scale Developments Our main challenge was making sure we deliver to our new customer segments the same quality standard at the best cost of opportunity our brand was known for in the ultra-high-end segments. We made sure we applied the same
Slide 43: Expanding residential portfolio to the premium segment
Expanding our residential portfolio to the premium segment proved highly productive ● The Top Two best-selling properties, One Lake District with 430 unit sales in 2023 and One High District with 251 unit sales, are large scale developments and target middle and upper middle class clients as part of
Slide 44: 71% of 2023 sales were units costing €80K-200K
71% sales in 2023 were units that cost between €80K-200K.
Slide 45: Delivered properties and under-construction pipeline status
ONE RESIDENTIAL DELIVERED PROPERTIES AND UNDER-CONSTRUCTION PIPELINE STATUS 2011- 2022 2023 by 2027 Delivered Residential Delivered Residential Estimated Deliveries Delivered Developments: 8 Delivered Developments: 4 Under construction Developments: 9 Sellable SQM: 104K sqm Sellable SQM: 123K sqm Se
Slide 46: 59% YoY increase in residential unit sales
59% YoY increase in residential unit sales 953 unit sales with associated GDV of €274.9 milion Our 2021 IPO objective of delivered more units in 2023 than all previous years combined extending our 1430 units across 4 developments with associated GDV of €350.4 millions portfolio to the 2023 best sell
Slide 47: Vision 2030: We Are One City
Vision 2030 We Are One City
Slide 48: We are One City
We are One City Going a step further than our tall, state-of-the-art landmark buildings equipped with the latest tech and top-of-the-line quality provided to our direct customers, ONE is part of a paradigm shift among Eastern European property developers. We start to develop beyond brick-and-mortar
Slide 49: New pipeline developments
NEW PIPELINE DEVELOPMENTS AG Surface: 179k sqm AG Surface: 42k sqm Estimated GDV: €251.5m Estimated GDV: €118.6m Other One Developments One Cotroceni Towers One Herastrau City in Early Feasibility Stages One Park Line One City Club AG Surface: 153k sqm AG Surface: 166k sqm Estimated GDV: €297.7m Est
Slide 50: Thank you!
Voluntary ESG Rating by Sustainalytics • Low risk ESG rating awarded by Morningstar Sustainalytics. • 3rd lowest ESG Risk Rating from BET index, after TLV (17.0) and BRD (14.4). Thank you! • 29.4% improvement in ESG programs, practices and policies in 2023 vs. 2022. beatrice@one.ro • Above-industry
Slide 51: Office buildings of the future
Office buildings of the future by Mihai Paduroiu, CEO Office Division Capital Markets Day 2024
Slide 52: Why do we develop offices in Bucharest
Why do we develop offices in Bucharest Capital Markets Day 2024
Slide 53: Why do we develop offices in Bucharest
W H Y D O W E D E V E L O P O F F I C E S I N B U C H A R E S T ? WHY DO WE DEVELOP OFFICES IN BUCHAREST • Contained Success can describe the 2023 real estate market in a nutshell. New heights achieved in terms of modern stock and leasing activity, intertwined with the country’s macroeconomic contex
Slide 54: 2023 a year of economic growth for Romania
2023 altogether for Romania is a year of economic growth, where the annual evolution of GDP indicated three years in a row on an exclusively upward trend. GDP (real) Evolution Romania Eurozone Unemployment Rate Evolution 4,000,000 7% 3,500,000 6% 5% 3,000,000 4% 2,500,000 3% 2,000,000 2% 1,500,000 1
Slide 55: Modern office stock in Bucharest
Modern office stock in Bucharest stands at the end of 2023 at 3.41mln. sq m after adding 110,000 leasable sq m representing the total area of five buildings. The new supply was welcomed by the Center, Center-West and North West sub-markets. The Center sub-market is the largest receiver of the newly
Slide 56: CEE Comparison
CEE Comparison 7,000,000 6,000,000 Q4 2023 5,000,000 Capital City Total Stock Population SQ M/ Person 4,000,000 Prague 3,914,381 1,357,326 2.88 3,000,000 Budapest 4,369,901 1,671,004 2.62 2,000,000 Warsaw 6,229,788 1,869,188 3.33 1,000,000 Bucharest 3,409,486 2,272,163 1.50 0 Bratislava 2,091,647 72
Slide 57: Almost half a million sq m leased in 2023
Almost half a million sq m leased in 2023 in Bucharest, marking a premiere in terms of transactional activity for its’ office market. Demand Evolution 500,000 60% Total leasing activity (TLA) in 2023 amounts 476,000 sq m, total wth 450,000 62% higher compared with the previous year’s data, the value
Slide 58: Leasing activity
Leasing activity 2023 Total Leasing Activity By Sub-market The leasing activity by sub-market, shows Floreasca/ Barbu Vacarescu as year’s main attraction having a quarter from TLA, CLOSELY FOLLOWED BY Dimitrie Pompeiu and Center-West areas with 1% 0.4% shares of 21% and 17%. Even though leasing tran
Slide 59: Prime rent
Prime rent Prime rent gradually increased throughout the year from €19.75 sq m/ month at Q4 closing. The constant growth of prime rent €20.50 reflects the impact of the inflation and sq m/ month interest rates evolution in 2023 coupled with Prime rent for office space the expected pipeline shortage
Slide 60: What sets ONE apart
What sets ONE apart Capital Markets Day 2024
Slide 61: What sets us apart
Flexibility Wellness & Sustainability WHAT SETS Technology US APART Turnkey solutions Community
Slide 62: What sets ONE apart - flexibility
What sets ONE apart - flexibility 01 Covers short-term needs 02 Allows for fast ramp up 03 Incubates business ecosystems
Slide 63: What sets ONE apart – wellness and sustainability
What sets ONE apart – wellness and sustainability
Slide 64: Office building of the future
Office building of the future 01 No gas connection 02 No chillers 03 No gas central heating Zero emissions via the 04 GeoExchange system Structural Innovations to 05 accommodate laboratories
Slide 65: What sets ONE apart - technology
What sets ONE apart - technology
Slide 66: What sets ONE apart – turnkey solutions
What sets ONE apart – turnkey solutions
Slide 67: What sets ONE apart - community
What sets ONE apart - community
Slide 68: Success stories
Success stories Capital Markets Day 2024
Slide 69: Our clients tell our success stories
Our clients tell our success stories
Slide 70: Leases signed
Leases signed LEASES SIGNED IN LEASES SIGNED IN 2021 2023 37558.46 sqm 31675.03 sq m 20410.81 sqm 33867.79 sqm LEASES SIGNED IN LEASES SIGNED IN 2020 2022
Slide 71: Outlook for the future
Outlook for the future Capital Markets Day 2024
Slide 72: ONE Gallery
ONE Gallery
Slide 73: ONE Cotroceni Park Office Phase 3
ONE Cotroceni Park Office Phase 3
Slide 74: ONE Cotroceni Park Office Phase 4
ONE Cotroceni Park Office Phase 4
Slide 75: ONE Technology District - Infineon
ONE Technology District - Infineon
Slide 76: Thank you!
Voluntary ESG Rating by Sustainalytics • Low risk ESG rating awarded by Morningstar Sustainalytics. • 3rd lowest ESG Risk Rating from BET index, after TLV (17.0) and BRD (14.4). Thank you! • 29.4% improvement in ESG programs, practices and policies in 2023 vs. 2022. mp@one.ro • Above-industry govern
Slide 77: Romanian hospitality reimagined
Romanian hospitality reimagined by Riad Abi Haidar, CEO Hospitality Division Capital Markets Day 2024
Slide 78: Global luxury brands looking to expand to Bucharest
Global luxury and lifestyle brands are looking for appropriate locations to expand their footprint to Bucharest.
Slide 79: Bucharest Destination
Bucharest Destination Corporate Destination Tourism contributed 4.19% to Romania's GDP in 2022, which means €11.8 billion and o Bucharest has become expected to achieve 5.72 % in a thriving hub for the next 4 years. HP Honeywell international companies 1500 1300 Oracle Ubisoft Leisure Destination o
Slide 80: Bucharest Destination: tourism demand
Bucharest Destination Bucharest Tourism Demand (2013 – 2023 Forecast) Bucharest Nationality Mix (2023) 2.5 4.5 USA 24% 4.7% Overnight stays (in millions) 4.0 UK Arrivals (in millions) 2.0 3.5 5.1% 3.0 76% Germany 1.5 2.5 6.1% 2.0 Israel 1.0 1.5 6.4% Italy 0.5 1.0 National Guests 0.5 Other countries
Slide 81: Bucharest hotel supply
Bucharest hotel supply Bucharest Hotel Supply Growth YoY Bucharest – Existing Room Supply per Class (2023) Luxury 9% Economy 19% Upper Upscale 13% Upscale 15% Midscale 27% Upper Midscale 17% Total Rooms Additional Rooms Years Supply Increase YoY Source: STR Global
Slide 82: Bucharest hotel supply
Bucharest hotel supply 2023 – DOW Analysis Occupancy ADR RevPAR Month 2022 2023 2022 2023 2022 2023 Jan 25.3 51.1 82.6 112.5 20.9 57.4 Feb 38.3 60.5 85.8 122.7 32.8 74.3 Mar 59.3 65.2 94.0 127.4 55.7 83.1 Apr 52.3 59.6 95.6 125.3 50.0 74.7 May 63.0 72.9 113.2 136.2 71.3 99.2 Jun 61.6 76.4 115.3 136.
Slide 83: Hospitality strengths
Bucharest hotel supply Attractive ONE solid setup On a virtuous path High staff engagement Professional brands with excellent across all of high quality and and entrepreneur corporate sharp profiles business units high rate mindset leadership team Excellent management Unequaled expertise Openness to
Slide 84: Principles and opportunities
Principles and opportunities We will outsource what partners do better than ourselves Track record of purchase and selling assets in Romania We empower our people and lead by example Instill asset management thinking and leadership think like an owner We will be lean in administration and support fu
Slide 85: Our strategy
Our strategy Proactively seek expansion opportunities in Primary Locations across Romania Other cities and regions will be considered on an opportunistic basis Utilize strategic advantages to mitigate disadvantages. Employ flexible contracting methods to adapt to changing market conditions and meet
Slide 86: We will continuously assess and track performance
We will continuously assess and track performance 4 KPIs monitored continuously 01 Enterprise value 02 Profit per SQM 03 Guest Experience Indicator 04 Employee satisfaction
Slide 87: Ambitious target by 2030
Ambitious target by 2030 Secure a stable turnover Be recognized as an contribution innovative Hospitality division in Romania 1 3 2 4 6 hotels in operation and Target the EBITDA in development of 40%
Slide 88: Mondrian Hotel
Mondrian Hotel — mnie Does
Slide 89: Bonnie at Mondrian Hotel
Bonnie at Mondrian Hotel • Paris Society has always known how to create and develop restaurant concepts with strong identities • Today, the group owns 12 very competitive brands organized in 3 families: casual luxury, lifestyle, festive. • Bonnie, a lifestyle brand of Paris Society will open at Mond
Slide 90: Slide 90
Slide 91: Exclusive discussion for Hoxton Bucharest
Exclusive discussion for Hoxton Bucharest
Slide 92: Thank you!
Voluntary ESG Rating by Sustainalytics • Low risk ESG rating awarded by Morningstar Sustainalytics. • 3rd lowest ESG Risk Rating from BET index, after TLV (17.0) and BRD (14.4). Thank you! • 29.4% improvement in ESG programs, practices and policies in 2023 vs. 2022. rah@one.ro • Above-industry gover
Slide 93: Why we have the best product on the market
Why we have the best product on the market by Andrei Diaconescu, co-CEO & co-founder Capital Markets Day 2024
Slide 94: Reliability, Amenities, Location, Comfort
Reliability Amenities Location Comfort Community Safety Design Prestige
Slide 95: Reliability
Reliability Publicly listed company, ensuring transparency and security all stakeholders. Prudent capital management, safeguarding investments and ensuring development completion. On-time delivery of developments. High visibility and accountability in all our operations.
Slide 96: Location
Location Premium locations, enhancing the value and appeal of our properties. Emphasis on the '15-minute city' concept, prioritizing accessibility and convenience. Development of necessary infrastructure to support and enhance each location. Emphasizing sustainable urban planning in the choice and d
Slide 97: Community
Community Creation of vibrant communities by providing essential amenities and public spaces. Non-gated developments that encourage interaction and inclusivity. Facilities like restaurants, medical centers, shops, and schools to cater to all needs. Fostering a sense of belonging and community spirit
Slide 98: Design
Design Architectural innovation that visually enhances the cityscape. Modern and trend-setting designs that prioritize aesthetic appeal and functionality. Attention to detail in every aspect of design, from exteriors to interior finishes. Innovative use of materials that not only follow the latest d
Slide 99: Amenities
Amenities Comprehensive amenities to meet all residents’ and tenants needs within the development, ensuring work-life-play balance. Ground-floor facilities including retail outlets, leisure spaces, and essential services implemented under mixed-use concept. Spacious garages and lift access for acces
Slide 100: Comfort
Comfort Spacious lobbies with reception desks across all developments, ensuring a welcoming environment and assistance. High standards of service and maintenance for a hassle-free living experience. Advanced security systems and protocols in place across all developments. State-of-the-art building m
Slide 101: Safety
Safety Building structures that can absorb and dissipate the energy of earthquakes, preventing collapse and minimizing damage. Use of fire-resistant materials or coatings and constructed to contain fires and prevent them from spreading. The use of high-strength, durable materials that contribute to
Slide 102: Prestige
Prestige Adherence to green building standards, minimizing environmental impact while maximizing energy efficiency. Recognized as 24th most valuable Romanian brand; the most valuable real estate brand. Becoming part of ONE community is an aspiration. Setting benchmarks in living, working and soon –
Slide 103: Thank you!
Voluntary ESG Rating by Sustainalytics • Low risk ESG rating awarded by Morningstar Sustainalytics. • 3rd lowest ESG Risk Rating from BET index, after TLV (17.0) and BRD (14.4). Thank you! • 29.4% improvement in ESG programs, practices and policies in 2023 vs. 2022. investors@one.ro • Above-industry
Slide 104: 2030 growth blueprint
2030 growth blueprint by Victor Căpitanu, co-CEO & co-founder Capital Markets Day 2024
Slide 105: ONE 2030
ONE 2030 RESIDENTIAL OFFICE / RETAIL HOSPITALITY Backbone of the business Bringing steady revenues Important for country brand Based on current 275,000+ sqm GLA landbank 11,000+ units completed 3 ***** hotels in operation commercial assets Driven by specific demand. 3 ***** hotels in Future landbank
Slide 106: 2024/2028 Deliveries
2024/2028 DELIVERIES One City Club GDV: €118.64 One Herastrau One Peninsula One Modrogan One High District One Gallery One Technology One Lake One Herastrau Vista District District GDV: €159.32m GDV: €76.50m GDV: €193.14m GDV: €90m City GDV: €49.36m GDV: €318.5m GDV: €341m 2024 2025 2026 2027 2028 O
Slide 107: Land sourcing
Land sourcing EXISTING LANDBANK PIPELINE UNDER NEGOTIATION Land Holdings: 265,000+ sqm of prime land locations Ongoing negotiations for strategically located land for future development in ownership or pre-SPA plots in Bucharest, including large properties for future developments targeting Bucharest
Slide 108: Residential segment expansion
RESIDENTIAL SEGMENT EXPANSION
Slide 109: Market overview
Market overview Market segmentation for residential deliveries in Bucharest Metropolitan area • Consistently decreasing market supply, not sufficient to address market demand Mass Middle Premium • Relatively stable segmentation of developments 59,2% across mass/middle/premium segment 55% 55,2% 54,3%
Slide 110: High-end premium
Targeted sub-segments • Target market: middle market Common ONE PREMIUM • Price per sqm: ≈120-180% of market average denominators across all • Differentiators: balanced mix of affordability and quality, offering large-scale construction with access to essential infrastructure. Modern design, subsegm
Slide 111: Deliveries by subsegment
Deliveries by subsegment One United Properties units segmentation 10.000+ • Continued application of “Mercedes- Benz” branding strategy of targeting the upper market segment Affordable premium housing targeting • Accelerate development of affordable middle class segment of premium housing targeting
Slide 112: Growing scale
Growing scale One Herastrau Park One Cotroceni Park New development 109 units 996 units 5k+ units 2014 2017 2021 2023 2025 2028 Madrigalului One Mircea Eliade One Lake District Residence 14 units 260 units 1,967 units
Slide 113: Growth driven by demand
Growth driven by demand • Avoidance of market saturation by creating products addressable to approx. 50% of Bucharest market. ONE 2030 • Steady cash flow and financial stability as high-end and premium projects generally offer quicker turnaround times for return on investment PREMIUM compared to lux
Slide 114: GDV
GDV GDV in construction GDV (Gross Development €1,296m Value) is the total value of a real estate project once it's completed and ready to be sold. GDV in planning, land secured €889m Historically, GDV of One United Properties increased from the first estimates until the completion of sales due to p
Slide 115: ONE 2028 residential
ONE 2028 Sales of residential property Residential Margin evolution curve in € m 2028* 520.2 2024 285.0 CAGR 18% 2024 2025 2026 2027 2028 • Residential sales will grow at accelerated pace due to • Residential margin curve will continue to fluctuate as in rich sales portfolio, supported by continuous
Slide 116: Commercial segment expansion
COMMERCIAL SEGMENT EXPANSION
Slide 117: Non-speculative office expansion
Non-speculative office expansion Built-to-Suit Office Solutions Innovation in Sustainability Focus on developing fully customized office spaces Establish a new sustainability standard in the office that cater to specific needs, signed on long-term, segment, using geothermal and solar panel energy. f
Slide 118: ONE 2028 rental income
ONE 2028 Rental income1 Net rental income in € m 2028* 64.2 2024 35.3 CAGR 20% 1 Rental income refers to income generated by the Office as well as retail divisions and 2024 2025 2026 2027 2028 includes both rental revenues and revenues from services to tenants Continue stable and consistent increase
Slide 119: Hospitality segment establishment
HOSPITALITY SEGMENT ESTABLISHMENT
Slide 120: Enhancing market attractiveness
Enhancing market attractiveness REVITALIZE ABANDONED LANDMARKS GLOBAL BRAND PARTNERSHIPS Convert central Bucharest's historical landmarks Secure partnerships with renowned hospitality and neglected buildings into luxury venues, brands to develop high-quality hotels that will enhancing the city's all
Slide 121: Global partners of ONE
Global partners of ONE MONDRIAN (#] ARMANI / CASA the hoxton Qs PARIS SOCIETY
Slide 122: Financing strategy
yall 3 mi Fie yon iy cya
Slide 123: Financing strategy
Financing strategy Demand driven by commercial segment (not impacting CF) BANK FINANCING and expansion in the mid-market where clients preponderently use the 30%/70% payment method. Refinance existing debt - when the time is right - at more CORPORATE BOND attractive terms, considering average intere
Slide 124: ONE 2028
ONE 2028 Turnover Net profit in € m in € m 2028* 651.0 2028* 205.8 2024 349.0 2024 105.1 CAGR 16% CAGR 18% Significant majority of turnover is expected to Dividend strategy to maintain the twice-a-year come from residential sales, with 10% of total pay-out, with focus on reinvestment of majority of
Slide 125: Thank you!
Thank you! investors@one.ro
Slide 126: Insights on key financial aspects
Insights on key financial aspects by Cosmin Samoila, CFO Capital Markets Day 2024
Slide 127: Key Investment Highlights
Key Investment Highlights • Above EU average CAGR of GDP per capita, with GPD estimated to reach €350bn in 2024 A t t r a c t i v e M a r k et & Macro Conditions • Unmatched demand of residential properties amid 2nd highest overcrowding within EU-27 P r o v en bus i n es s • Proven residential devel
Slide 128: A leading company
A leading company Capital Markets Day 2024
Slide 129: Key phases of evolution
Key phases of evolution Turnover Turnover € 66 m actual 2018 • First large-scale high-rise developments € 605 m estimated 2028 • Development of top-quality office buildings 2012 – 2018 • Increased focus on sustainability, urban 2023 – Future regeneration • First developments on the mid-income market
Slide 130: Historical performance
Historical performance Net profit % margin and Turnover 50% 46% Turnover has increased year-on-year and net 45% 43% 300 308 profit margins remain over 30% 33% 236 30% 228 200 Revenues from residential sales overpassed EUR 30% 200m for the first time in 2023 15% 100 111 Revenues from commercial renta
Slide 131: Residential timeline
RESIDENTIAL As of 2024, the delivery dates are estimated. TIMELINE ONE High District ONE ONE ONE ONE ONE ONE ONE ONE ONE ONE ONE ONE Herăstrău Herăstrău Mamaia Verdi Herăstrău Mamaia Lake Cotroceni Herăstrău Madrigalului Timpuri Modrogan Park Plaza Nord I Park Vista Nord II District Towers City Noi
Slide 132: Business segments
Business segments Residential sales division • Generates sales volumes, significantly contributing to revenue and turnover • Drives profitability with high returns on property sales and substantial profit margins • Capitalizes on market demand and property appreciation for premium pricing, increasin
Slide 133: Residential sales revenue recognition
Residential sales revenue recognition One United Properties recognizes revenues according to IFRS 15, based on sales and pre-sales, matched with the percentage of completion method. The timing of sales and construction completion stage, particularly in relation to the reporting period, can impact re
Slide 134: Major asset transactions
Major asset transactions Bucur Obor One Verdi Park Retail 1,974 sqm of retail rented to Lidl, sold for €8.8m, profit of €6.1 m • 26,000 sqm retail space, 90%+leased • Acquisition of control package of 54% One North Gate 5K sqm office, sold for EUR • Acquisition at discounted price of €13.5 million 6
Slide 135: Cost structures and efficiency
Cost structures and efficiency Land cost is in average 15% of total cost, on the current completed and development portfolio. Depending on the market segment of the development, it has lower weight going up to 5% in developments addressing medium and upper-medium market segments and can be higher up
Slide 136: Predictable cash-flow structure
Predictable cash-flow structure
Slide 137: Financing structures
Financing structures LTV ratio Loan to Value (financial debt proportion in total real estate assets) is reduced, 28% at 28% end of 2023, compared to average 39% of European listed real-estate companies; 30% 28% 24% Loans value as of year end were in total of 207 mEUR (major loans to banks such as Er
Slide 138: Historical financial achievements
Historical financial achievements Capital Markets Day 2024
Slide 139: Financial performance evolution (EUR m)
Financial performance evolution (EUR m) Result from operating activity Net profit 125 117 114 120 120 104 102 91 Turnover (total revenues) 90 98 80 53 360 45 60 83 308 42 37 40 270 228 236 30 - 180 - 2019 2020 2021 2022 2023 111 2019 2020 2021 2022 2023 84 217 90 Revenues from sales of residential R
Slide 140: Financial position evolution (EUR m)
Financial position evolution (EUR m) Total assets Investment Property Residential property 1.003 1.047 1.060 88% 600 250 545 200 856 1.000 900 85% 202 455 200 84% 450 800 83% 150 700 83% 84% 134 293 150 82% 163 159 600 300 483 500 565 208 128 100 100 350 350 80% 165 400 270 275 150 300 74 50 50 70 5
Slide 141: Outlook on continuous growth
Outlook on continuous growth Capital Markets Day 2024
Slide 142: Outlook – continued growth
in EUR for the year Actual 2023 Budget 2024 Budget 2024 vs. Actual Outlook – continued growth 2023 Revenues from sales of residential 228,524,000 284,999,526 25% property Cost of sales of residential property (162,284,641) (175,597,512) 8% • Turnover budgeted to increase to EUR 350 m, +14%, Other pr
Slide 143: 5 years strategy – key financials
5 years strategy – key financials Net Profit % Margin Revenues from sales of residential property Revenues from commercial rentals and services 520 70 64 45% 206 450 32% 200 50 30% 30% 30% 285 35 300 229 30 26 100 15% 91 105 150 10 - 0% - 2023 Actual 2024 Budget 2028 Forecast 2023 Actual 2024 Budget
Slide 144: Thank you!
Thank you! investors@one.ro
Slide 145: Our commitment to sustainability
Our commitment to sustainability by Andrei Diaconescu, co-CEO & co-founder Capital Markets Day 2024
Slide 146: Our impact
Our impact Capital Markets Day 2024
Slide 147: People living in ONE developments, 2023
2023 3,500+ 10,000+ 21,000+ people1 living in people working in ONE persons employed ONE office buildings across ONE developments construction sites 1 Own estimate based on the average household size in Romania (2.5) as of 2021, multiplied with units finalized as of 31.12.2023.
Slide 148: 2030e people living in ONE developments
2030e 26,000+ 20,000+ 40,000+ people living in people working in ONE persons employed ONE office buildings2 across ONE developments1 construction sites3 1 Own estimate based on the average 2 Own estimate based on the average 2 Own estimate based on the planned household size in Romania (2.4) for 203
Slide 149: Our Strategy
Our Strategy Capital Markets Day 2024
Slide 150: 3D approach to sustainability
One United Properties has a 3D approach to sustainability: Scale From our residents to city level, and our impact to environment. Duration From now to 2030 and beyond, we plan ahead and execute. Collaboration Engaging stakeholders involved in shaping life in a city.
Slide 151: ONE Bucharest
ONE Bucharest Better Friendlier Working Collaboration for Neighborhoods Sites Development Doing urban Constantly Building projects regeneration reducing w/ nonprofits, even better by pollution beyond academia & co-creating with regulation public authorities. local community. requirements.
Slide 152: ONE Developments
ONE Developments The Highest 15 minutes cities Full Certification Quality of Life Prevent urban 100% Office with Indoor-tests, sprawl and LEED/WELL & increasing improve mobility Residential with biodiversity through walking Green Homes. creating a & cycling. healthier lifestyle.
Slide 153: ONE Company
ONE Company Circular Economy Reducing Carbon Efficiency & Footprint Wellbeing Improve Efficiency in Increase energy Digitalising our Design, Build & efficiency, use of work, Improving Operations & renewables & the wellbeing of Increase reduce gas- our employees. Recycling. heating.
Slide 154: Restoration portfolio
Restoration portfolio € 239 million current GDV of restoration portfolio, blending commercial and hospitality segment One Gallery One Athenee Mondrian Bucharest Hoxton Bucharest Retail Residential & Retail Hospitality Hospitality
Slide 155: One Technology District
One Technology District The first office project without connection to the gas network.
Slide 156: CO2 emissions savings by development
One Lake District One High District 53 2,000t of CO2 emissions will be 955t of CO2 emissions saved each year will be saved year One Lake Club – Armani Casa One Peninsula 905t of CO2 550t of CO2 emissions will be emissions will be saved each year saved each
Slide 157: Measuring our progress
Measuring our progress Capital Markets Day 2024
Slide 158: Voluntary ESG Reporting since 2020
Voluntary ESG Reporting since 2020 First ESG report, following Incl. materiality matrix, Incl. Scope 1 & 2 CO2 Incl. Scope 1, 2 and 3 basic GRI standards. engaging with our emissions reporting for reporting for both stakeholders on ESG residential segment, Scope residential & matters. 1, 2 & 3 for c
Slide 159: Voluntary ESG Rating by Sustainalytics
Voluntary ESG Rating by Sustainalytics • Low risk ESG rating awarded by Morningstar Sustainalytics. • 3rd lowest ESG Risk Rating from BET index, after TLV (17.0) and BRD (14.4). • 29.4% improvement in ESG programs, practices and policies in 2023 vs. 2022. • Above-industry governance practices. 2022
Slide 160: Thank you!
Thank you! investors@one.ro
Slide 161: Have a question for ONE management team?
Have a question for ONE management team? Scan here to ask! Capital Markets Day 2024
Slide 162: Fireside chat with Victor Căpitanu and Andrei Diaconescu
Fireside chat with Victor Căpitanu and Andrei Diaconescu Moderated by Zuzanna Kurek Capital Markets Day 2024