Archicom Sa · GPW:ARH
Archicom Sa — H1 2023 Earnings Presentation
39 slides from Archicom Sa's earnings presentation, September 2023
Slide 1: H1 2023 Results
archicom H1 2023 Results
Slide 2: Table of Contents
archicom Table of Contents = Housing Market in Wroctaw Archicom Highlights Financial Results Highlights after H1 2023 QEA Additional Slides on Fe WN www.archicom.pl
Slide 3: Results Conference
A archicom Results Conference Participants: - are anonymous - are muted by the organizer - can ask questions in the chat Questions: please ask your questions in the chat, we will answer them after the presentation Contact: agata.skowronska-domanska@archicom.pl Waldemar Olbryk President of the Manage
Slide 4: Liability
A archicom Liability This presentation has been prepared by Archicom ("Archicom" or the "Company") for informational purposes only. It does not constitute an offer or invitation to submit offers, in particular regarding securities. This presentation does not contain a complete or comprehensive analy
Slide 5: Housing Market
Market Archicom in Echo leader in Wrocław Investment more than 36 Group years on the market more than 220 Supervision of the completed apartment buildings entire development more than 28,000 process inhabitants 6 investments Financial security currently for sale
Slide 6: Archicom market leader in Wrocław
Archicom with strong sales of apartments - 310 units sold (second quarterly result of this kind over the past two years) Very high margin of 45.1% on completed and sold projects Consistent pursuit of price efficiency, both in purchases and sales of apartments Focus on expanding the land bank
Slide 7: Slide 7
Slide 8: Market events and prospects
A archicom Market events and prospects: * Inflation dropped to 11.1% in June this year * Significant drop in interest rates to 6.0% in September 2023 and possible further reductions at the following meetings of the Monetary Policy Council. * Introduction of the Safe 2% Loan program. Creditworthiness
Slide 9: Archicom's share in sales on the Wrocław market
Archicom's share in sales on the Wrocław market Very dynamic increase in apartment sales on the primary market in Wrocław (1,813 apartments sold in Q2 2023)
Slide 10: Most Important Events at Archicom in H1 2023
Slide 11: 568 apartments sold at prices guaranteeing a high margin
568 apartments sold (including 310 in Q2) at prices guaranteeing a high margin on revenues in the following periods PLN 219.4 million in revenues since the beginning of the year Revenue recognized from 338 delivered apartments vs. 382 in H1 2022 Stable financial situation - increase in cash by PLN 1
Slide 12: Upward sales trend continues
• The company continues the upward sales trend. The result generated in the second quarter is higher by 57% in relation to the second quarter of the previous year. In the new reporting standard, sales only include notarial development and preliminary agreements, but not reservation agreements. Histo
Slide 13: New apartments in Wrocław
Wrocław 98 new apartments in June 2023 186 new apartments in May 2023 NEW PROJECTS
Slide 14: More apartments delivered in Q2 2023
• In Q2 2023, more apartments are being delivered after completion of the next stage of the Olimpia Port investment. Apartments were being delivered also at Browary Wrocławskie after stage completion.
Slide 15: 60% of apartments under construction are sold
60% of apartments under construction are sold • At the end of Q2, there were over 1,400 units under construction and 60% of them had already been contracted.
Slide 16: Financial Results
Slide 17: Income statement H1 2023
PLN mln million PLN H1 2022 H1'2022 H1 2023 H1'2023 Revenue recognized from 338 delivered apartments in H1 2023 vs. 382 in the comparable period of 2022, in line with the operating cycles of the projects Sales Sprzedaż 221.5 221,5 219.4 219,4 under construction. In 2023, delivered apartments will ac
Slide 18: Net profit
PLN million H1 2022 H1 2023 Sales 221.5 219.4 Gross profit/loss 76.9 99.0 Gross margin 34.7% 45.1% SG&A costs -31.7 -33.2 Other operating activities The net result on real estate activity -1.1 -2.7 and revaluations (excluding discontinued operations) was Operating profit (EBIT) 44.2 63.1 higher by P
Slide 19: Assets and liabilities
PLN mln million PLN 31.12.2022 31.12.2022 30.06.2023 30.06.2023 Aktywa Fixed trwałe, assets, w tym: including: 96,7 96.7 107,6 107.6 Stable level of fixed assets compared to December 31, 2022 Rzeczowe Fixed assetsaktywa in kindtrwałe 11,0 11.0 2,7 2.7 Nieruchomości inwestycyjne 10,9 29,1 Real estate
Slide 20: Equity and liabilities
PLN million mln PLN 31.12.2022 31.12.2022 30.06.2023 30.06.2023 Increase in equity as a result of recognition of half-year net income and Equity Kapitał własny 731.7 731,7 733.6 733,6 implementing the dividend policy Zobowiązania Long-term liabilities, including: 176.0 176,0 145.6 145,6 długotermino
Slide 21: Net financial debt and cash
PLN mln million PLN 31.12.2022 31.12.2022 30.06.2023 30.06.2023 Środki pieniężne i pozostałe Cash and other short-term krótkoterminowe 275.5 452.4 financial assets* aktywa 275,5 452,4 We consciously maintain a high cash balance as a guarantee of business finansowe* security, a basis for dividend pay
Slide 22: Bond maturity profile
PLN million 500 400 300 200 M6/2022 M3/2018 M4/2019 110,4 M7/2023 100 79,1 51 60,8 61,6 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Redeemed bonds Bonds with maturity dates *including funds in trust and blocked accounts Page 22
Slide 23: Debt, equity and prepayments
PLN 172.0 million (unchanged) Corporate bonds PLN 733.6 million PLN 330.4 million + 0.3% +29.3% Equity Prepayments from clients PLN 19.7 million -5.7% Short and long-term bank loans Indices as of June 30, 2023 in relation to December 31, 2022 Page 23
Slide 24: Dividend history
65,0 62,1 54,4 16,8 45,9 42,2 31,8 16,4 31,6 17,2 54,4 48,2 28.0 29,5 30,3 25,0 3,6 2018 2019 2020 2021 2022 2023 Page 24 www.archicom.pl
Slide 25: Events after H1 2023
Slide 26: Events after H1 2023
Events after H1 2023 . * August 1, 2023 - contribution in kind by Echo Investment to » archicom Archicom ECHO residential * Proposed resolution to increase the share capital [issue of series D and E shares] at the Extraordinary General Meeting of Shareholders on September 25, 2023 * Proposed resolut
Slide 27: Apartments offer by city
Number of Offer City apartments Poznań - 20 62 Archicom Wrocław 469 Warsaw - 65 Echo Resi Łódź 9 Łódź – 9 Echo Resi Kraków 87 250 Echo Resi Warsaw 65 Wrocław Echo Resi Poznań 20 469 Kraków - 87 Total 650 Consistent data as of June 30, 2023 and disclosed as of August 1, 2023 after the balance sheet d
Slide 28: Projects in construction and preparation
Project in: City Number of apartments Echo Resi construction Kraków 430 Archicom preparation Kraków 295 Echo Resi preparation Łódź 1,867 Poznań 62 Echo Resi construction Poznań 206 2,432 Warsaw 2,639 Archicom preparation Poznań 561 Echo Resi preparation Poznań 1,665 Łódź Echo Resi construction Warsa
Slide 29: Acquired projects by city
City Number of projects Number of apartments Łódź 3 570 Kraków 1 184 Warsaw 1 556 Poznań Total 5 1,310 Warsaw 556 Łódź 570 Kraków 184 (*) The acquisition date occurred after the end of the reporting period, which is why the data is not visible in Archicom's H1 2023 financial statements.
Slide 30: Expansion into Polish cities
Poznań Warsaw 382 489 ➢ ➢ ➢ ➢ Łódź 279 Wrocław ➢ 366 ➢ ➢ ➢
Slide 31: Marketing campaign in cities in Poland
Marketing campaign in 5 cities in Poland: + Wroclaw and the ARCHICOM brand — number one in Tworzymy tylko takie. Wroctaw kee Warsaw, Poznan, Lodz, Krakow and the ECHO } residential by Archicom brand (combination of the recognizable Echo brand with Archicom) ee ONY) ‘Tworzymy tylko takie. We Wroctawi
Slide 32: Q&A
Slide 33: Additional Slides
Slide 34: Revenue potential
1 400 700 mln 545 mln 584 mln 1 200 600 mln 455 mln 528 mln 511 mln 409 mln 482 mln 445 mln 1 000 382 mln 393 mln 455 mln 444 mln 500 mln 368 mln 426 mln 800 400 mln 600 300 mln 400 200 mln 200 100 mln 898 980 961 926 843 857 917 874 879 921 907 831 876 927 1 0281 0341 1041 2371 103 936 904 827 806
Slide 35: Projects gradually included in the offer
Date of purchase Gradually included Completion Number Investment / Stage / securing the in the offer from: of construction of units land Wrocław / Karkonoska Q3 2023 Q2 2026 472 2016 Wrocław / Browary Wrocławskie Q1 2024 Q1 2026 129 2016 Wrocław / Awipolis stage 4a; Awipolis stage 4b Q4 2023 Q2 2025
Slide 36: Projects gradually included in the offer
Gradually included Completion Number Date of purchase / Investment / Stage in the offer from: of construction of units securing the land Łódź / Widzewska Q3 2023 Q4 2028 1867 2020 Poznań/ Garbary Q4 2023 Q3 2025 120 2019 Poznań/ Janickiego Q4 2023 Q2 2026 684 2020 Poznań/ Opieńskiego Q3 2024 Q1 2028
Slide 37: Delivery schedule and sales status
Ilość lokali planowane uzyskanie planowany termin Ilość lokali % sprzedanych Inwestycja sprzedanych W ofercie pozwolenia na użytkowanie rozpoczęcia przekazań (szt.) lokali (szt.) Olimpia Port M34, M35 zakończona zakończona 56 56 100,0% 0 Razem dla budów planowanych do zakończenia w I kw. 56 56 100,0
Slide 38: Delivery schedule 2024
Ilość lokali planowane uzyskanie planowany termin Ilość lokali % sprzedanych Inwestycja sprzedanych W ofercie pozwolenia na użytkowanie rozpoczęcia przekazań (szt.) lokali (szt.) River Point KM4 I 2024 II 2024 184 136 73,9% 48 Razem dla budów planowanych do zakończenia w I kw. 184 136 73,9% 48 Plant
Slide 39: Thank you
archicom Thank you Archicom S.A. Powstancow Slqskich 9 53-332 Wroctaw www.archicom.pl