Pro Kapital Grupp AS · OMXTSE:PKG1T

Pro Kapital Grupp AS — Investor Presentation (February 2013)

29 slides from Pro Kapital Grupp AS's investor presentation, February 2013

  1. Slide 1: Pro Kapital Grupp Investor Presentation

    PRO KAPITAL GRUPP Investor Presentation February, 2013

  2. Slide 2: Important Notice

    Important Notice This Presentation has been prepared by Aktsiaselts Pro Kapital Grupp (the “Company” or “PKG”) for information purposes only and is not to be relied upon in substitution for the exercise of independent judgment. This Presentation does not constitute or form part of, and should not be

  3. Slide 3: Agenda

    Agenda 1. Introduction to the Case 2. Market Background 3. Company Overview Appendices 3

  4. Slide 4: 1. Introduction to the Case

    Introduction to the Case J ‘ibe { ‘4 ee ; Lie ay | I C. aN [ eS | “ = Ce ‘a iz ; ema CROKAPITAL a

  5. Slide 5: Unique Opportunity in the Growing Baltic Real Estate Market

    Unique Opportunity in the Growing Baltic Real Estate Market… Opportunity to capitalize on recovering Baltic real estate Track record of market Pure exposure on successful project Baltic macro development recovery Conservative Strong project balance sheet portfolio …Providing Baltic Macro Exposure 5

  6. Slide 6: Growing Real Estate Company in the Baltics

    Growing Real Estate Company in the Baltics  AS Pro Kapital Grupp (“PKG” or “Company”) develops, manages and sells real estate in the capitals of Baltic States mainly focusing on development of Projects in PKG’s portfolio retail and upscale residential properties Project Appraised value  Real estat

  7. Slide 7: 2. Market Background

    2. Market Background

  8. Slide 8: Baltic Macro Environment is Improving

    Baltic Macro Environment is Improving…  Baltic economies are recovering Sovereign debt levels are under control (2012)  Increasing exports together with internal devaluation and regained competitiveness have been driving growth 180% Government’s debt, % of GDP  Foreign investors’ attitude towards

  9. Slide 9: Baltic Real Estate Market Presents Growth Opportunities

    Baltic Real Estate Market Presents Growth Opportunities…  Activity in the Baltic real estate market is mainly concentrated in the Average apartment price in city centre (€/m2, 2012)1 capitals – Tallinn, Riga and Vilnius  Premium locations for residential projects include city centres of Tallinn, 8

  10. Slide 10: Residential Real Estate in Tallinn, Riga and Vilnius

    Residential Real Estate in Tallinn, Riga and Vilnius…  Residential real estate market in Tallinn, Riga and Vilnius is recovering, Average apartment price (€/m²)1 with the number of transactions and prices gradually increasing  Average apartment price in Tallinn increased by 9% in 2010, by 16% in 2

  11. Slide 11: Affordability of Residential Real Estate in Baltics

    Affordability of Residential Real Estate in Baltics…  Increasing affordability of residential real estate1 in the Baltics implies Housing Affordability Index1 high potential of the residential real estate market in these countries  Households in Tallinn have the highest purchasing power for apartm

  12. Slide 12: Retail Real Estate Market in Tallinn

    Retail Real Estate Market in Tallinn…  Retail sales have picked up in Estonia Rent levels in shopping centres in 2012 (€/m2/month)  In 2012 retail trade increased in real terms by 7% 50  The total retail space in Tallinn has seen marginal increases lately 42 40  The total supply of retail space

  13. Slide 13: Tallinn Shopping Centres Map

    Viru Keskus  Opened in 2004  GLA of 23,000 m2  Owned by a group of investors CBD Rocca Al Mare Old Town Panorama  Opened in 1999; expanded in 2009  Planned shopping centre with GLA of  GLA of 53,000 m2 55,000 m2  Owned by Citycon  Status: Start of construction in 2013 Kristiine Shopping Cent

  14. Slide 14: 3. Company Overview

    3. Company Overview PROKAPITAL

  15. Slide 15: Strong Project Development Track Record

    Strong Project Development Track Record  PKG is one of the leading real estate development and management companies in the Baltic region  The Company was established in 1994, making it one of the first major players in the Estonian real estate market  In 1997 and 1998 PKG expanded to Latvia and L

  16. Slide 16: PKG is Managed by Experienced Team

    PKG is Managed by Experienced Team Key Personnel Paolo Vittorio Michelozzi Allan Remmelkoor Ruta Juzulenaite Ervin Nurmela CEO COO CFO Head of the Legal Department  With PKG 18 years  With PKG 15 years  First year with PKG  With PKG 5 years  30+ years of real estate  Has managed development of

  17. Slide 17: Strong Supervisory Council and Corporate Governance

    Strong Supervisory Council and Corporate Governance Supervisory Council Emanuele Bozzone Giuseppe Prevosti Renato Lorenzo Bullani Chairman Member Member  In the Supervisory Council since July 2010  In the Supervisory Council since July 2010  In the Supervisory Council since July 2010  Founder an

  18. Slide 18: Book Value and Appraised Value of PKG Property

    Book Value and Appraised Value of PKG Property  The figure below represents a reconciliation of Company’s portfolio appraised value by illustrating the difference between net book and net appraised values of the portfolio Bridge From Book to Appraised Value of Property1 200,000 180,000 160,000 3,13

  19. Slide 19: Priority Projects to be Developed by PKG

    Priority Projects to be Developed by PKG 1 2 3 Parameter Peterburi Rd Shopping Centre Tondi Quarter Tallinas St. Residential Complex Location Tallinn, Estonia Tallinn, Estonia Riga, Latvia Project scope Shopping centre Residential / commercial Residential / commercial Tondi Quarter is a large premiu

  20. Slide 20: Selected Completed Development Projects (1)

    Selected Completed Development Projects (1) Domina Shopping Centre Kristiine Shopping Centre  Domina Shopping Centre is one of the first and largest shopping  Kristiine Shopping Centre is the one of the first and largest centres in Riga, located on one of Riga’s main streets shopping centres in Ta

  21. Slide 21: Selected Completed Development Projects (2)

    Selected Completed Development Projects (2) Kuģu street 26 Pulkveža Brieža street 11  Kuģu street 26 is a residential building situated next to the  Pulkveža Brieža street 11 is an apartment building developed river Daugava with an exceptional view of the classical Riga in the same complex with Do

  22. Slide 22: Robust Financial Performance Coupled with Low Leverage

    Robust Financial Performance …  Inventories and investment property, which include finished real Balance sheet1 estate and real estate under construction, represent the largest part of the Company’s balance sheet (74% as of September 30, 2012) € million 2007 2008 2009 2010 2011 Q3 2012 Non-current

  23. Slide 23: Appendices

    Appendices pare oe oan og > lar “ s = a J alae igs = PROKAPITAL

  24. Slide 24: Basics of Real Estate Accounting

    Basics of Real Estate Accounting  Real estate is classified in the following way according to IFRS  Inventories include buildings completed and construction in progress (residential developments)  Tangible assets include land and buildings used in a company’s operations (offices, hotels)  Invest

  25. Slide 25: Current Project Portfolio

    Current Project Portfolio  The current project portfolio is listed in the table below Project Type GSA/GLA Development Description Means of exit Peterburi Rd Development of a large commercial project located in Tallinn Lasnamäe Sale of the property after Shopping Centre Commercial 77,880 m2 2012 –

  26. Slide 26: History and Track Record

    History and Track Record  The completed (e.g. exited) projects are listed in the table below Project Type GSA/GLA Development Description Means of exit Domina Domina Shopping was one of the largest shopping centres in Riga when Sold to German investors in Commercial 48,500 m2 2001-2007 Shopping Cen

  27. Slide 27: Tallinn Project Map

    Kalaranna Ilmarine District1 PK Ilmarine Hotel CBD Jegorovi Pro Kapital Business Centre Old Town Rüütli 13 Vene 19 Domina City Hotel Demini Kristiine Shopping Centre Peterburi Rd Shopping Centre Tondi Quarter Map: Google Maps Completed projects Development projects 1 Ilmarine district includes on-go

  28. Slide 28: Riga Project Map

    Zvaigznes Tallinas Domina Shopping Centre Domina Inn Riga Pulkveža Brieža 11 Stabu 19 Old Town Kliversala Vecpilsētas 8A Kuģu 26 Map: Google Maps Completed projects Development projects Source: Company 28

  29. Slide 29: Vilnius Project Map

    Old Town Domina Plaza Saltiniu Namai1 Saltiniu Namai 2 Map: Google Maps Completed projects Development projects Source: Company 29

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