37 slides from Impact Developer & Contractor Sa's investor presentation, September 2022
Slide 1: Leader in sustainable real estate development
Leader in sustainable real estate development Investor Presentation September 2022
Slide 2: IMPACT: 30+ Years of Development
IMPACT: 30 + YEARS OF DEVELOPMENT IMPACT completed 17 projects along time. Real estate market 1995-2001 2002-2010 2007-2019 2018 - 2021 IMPACT starts the first Completion of three phases IMPACT sets footprint in Development of residential & residential community of GREENFIELD BANEASA the upper-class
Slide 3: IMPACT at a Glance
IMPACT AT A GLANCE Years of market experience 30+ • IMPACT the first real estate developer in Romania since 1991 . Listed on BVB since 1996 • Listed on the Bucharest Stock Exchange since 1996. No. of projects delivered 17 • Issuer of the first corporate bonds denominated in foreign currency, at BVB.
Slide 4: Growth Strategy
GROWTH STRATEGY Sustainability Geographic expansion & Financing focus portfolio diversification optimization Next generation development Market-aligned approach Diversified financing approach • At the forefront of sustainable • Focus on affordable residential • Green Bonds issuance - focus practices
Slide 5: Build a Strong Presence in Key Cities
BUILD A STRONG PRESENCE IN KEY CITIES ▪ Already operating in the main cities like Bucharest, Iași, Constanța ▪ Further expansion to Timișoara, Brașov, Cluj ▪ Diverse project portfolio including CLUJ residential, as well as mixted-use, commercial and hotel real estate BRASOV ▪ Attractive landbank in
Slide 6: Key elements of an affordable-medium segment project
Key elements of an affordable- medium segment project • Attractive locations in the most important cities, near green neighborhoods, within city limits or in proximity; • Large land plots of 10-50 ha in areas of those cities with significant growing demand and high employer concentration; • High qua
Slide 7: Leading Sustainable Real Estate Developer in Romania
LEADING SUSTAINABLE REAL ESTATE DEVELOPER IN ROMANIA Mission Vision We Create COMMUNITIES We Build SUSTAINABLE Our mission is to positively impact people’s lives by We strive to become the leading Residential Real developing communities with focus on sustainability, Estate Developer in the region th
Slide 8: Making a Difference Through Sustainable Development
MAKING A DIFFERENCE THROUGH SUSTAINABLE DEVELOPMENT Residential development approach IMPACT sustainability goals • Focus on sustainable residential projects, no matter their size; • Educate the market and expand the concept of intelligent and environmental-friendly housing in Romania; • Invest in su
Slide 9: Fully Committed to Best Practices in ESG
FULLY COMMITTED TO BEST PRACTICES IN ESG 30 years on the real estate market Sustainability lies in the operating policy demonstrate the power to adapt to the of IMPACT Group and our flagship globalization context and the continuous projects are a living proof. Taking care of improvement of the busin
Slide 10: Group Structure
IMPACT GROUP STRUCTURE GREENFIELD PROPERTY MANAGEMENT SRL GREENWISE DEVELOPMENT GREENFIELD COPOU RESIDENCE Phase I GREENFIELD COPOU RESIDENCE BERGAMOT DEVELOPMENTS IMPACT FINANCE & DEVELOPMENTS BERGAMOT DEVELOPMENTS Phase Il SPATZIOO MANAGEMENT SRL CLEARLINE DEVELOPMENT & MANAGEMENT 10
Slide 11: Strategy Implementation Led by a Diverse Executive Team
STRATEGY IMPLEMENTATION LED BY A DIVERSE EXECUTIVE TEAM CONSTANTIN SEBEȘANU CLAUDIU BISTRICEANU SORIN APOSTOL OVIDIU GRINICI CEO CFO EXECUTIVE DIRECTOR SALES & MARKETING DIRECTOR 25+ years of experience in 20+ years of experiece in 20+ years of experience 10+ years of experience in top management, p
Slide 12: Upward Development of the Share Price
UPWARD DEVELOPMENT OF THE SHARE PRICE IMPACT share price history vs BET Capital markets highlights* since 2017 • Multiple times higher performance than market index BET since 2017; • RON 1.07 billion market capitalization (EUR 216.7 million) at 30 of June 2022; • RON 0.646 / share at 30 of June 2022
Slide 13: Stock Exchange Indexes
STOCK EXCHANGE INDEXES Ticker Name Index Weight (%) 30.08.22 BET-BK Bucharest Exchange Trading Benchmark Index 0.93 BET-XR Bucharest Exchange Trading Extended Index 0.41 BET-XT-TR Bucharest Exchange Trading Extended Total Return 0.40 BET-XT-TRN Bucharest Exchange Trading Extended Net Total Return 0.
Slide 14: Residential Market
RESIDENTIAL MARKET KEY DEMAND OVERVIEW RESIDENTIAL STOCK HIGHLIGHTS IN ROMANIA IN ROMANIA • Romania is the European • Great potential for demand in • Room for consistent new country with the highest Owner terms of residential market in deliveries during the next Occupation Rate (95.8% at the Romania
Slide 15: Interest for Pre-Sales
INTEREST FOR PRE-SALES Pre-Sold residential units Value of Pre-Sold residential units Pre-Sales as at 30 Jun 2022 Pre-Sales package value as at 30 Jun 2022 (apartments, units) (EUR thousand) 800 421 109 71 17 618 80,000 46,860 18,563 5,663 2,077 73,163 700 70,000 2,077 600 17 60,000 500 50,000 48,06
Slide 16: Market Trends
MARKET TRENDS H1 - 2022 OPORTUNITIES IMPACT ACTIONS • Significant increase in sales in the • Given demand, the decline in bank • Launch of SPATZIOO, the first 2 months due to higher loan purchases is generating property & facility management demand following the increase of significant growth for re
Slide 17: Our Projects
OUR PROJECTS MIDDLE - UPPER AFFORDABLE PROJECTS PROJECTS 17
Slide 18: Greenfield Băneasa Residence & Plaza
6.000+ units, Greenfield Băneasa Residence & Plaza District 1, Bucharest Residence Plaza Headquarter COMPLETED UNITS 2,580 STARTING DATE 2020 STARTING DATE 2020 SOLD UNITS1 2,574 COMPLETION DATE Q2 2022 COMPLETION DATE Q1 2022 UNDER CONSTRUCTION TOTAL GBA (sqm) 7,364 TOTAL GBA (sqm) 1,200 UNITS2 1,2
Slide 19: Luxuria Expoziției Residence
630 units, Luxuria Expoziției Residence District 1, Bucharest 66.400 STARTING DATE COMPLETION DATE 2018 2021 UNITS UNDER CONSTRUCTION 630 SOLD UNITS1 54% - 339 SCT (mp) 66.400 GBV (‘000€) 67.218 1 Sold units as of 30 June 2022 Except for GDV and Gross Margin that are 2022-2027 estimations, the rest
Slide 20: Greenfield Copou Residence & Plaza
1.062 units, Greenfield Copou Residence & Plaza Iași Residence Plaza STARTING DATE 2022 STARTING DATE 2022 COMPLETION DATE 2025 COMPLETION DATE 2024 PIPELINE UNITS 1,062 TOTAL GBA (sqm) 3,975 - Commercial (sqm) 1,830 GBA (sqm) 99,055 - Wellness (sqm) 2,145 GDV (‘000€) 154,856 GDV (‘000€) 8,745 Excep
Slide 21: Boreal Plus
691 units, Boreal Plus Constanța Residence STARTING DATE 2020 COMPLETION DATE 2026 UNITS UNDER CONSTRUCTION 673 GBA (sqm) 63,658 GDV (‘000€) 78,307 Except for GDV that are 2022-2027 estimations, the rest of the figures are total project estimates. 21
Slide 22: Luxuria City Center
Mix project Luxuria City Center District 1, Bucharest Commercial Residence 5* Hotel & suites STARTING DATE 2023 STARTING DATE 2023 STARTING DATE 2023 COMPLETION DATE 2024 COMPLETION DATE 2027 COMPLETION DATE 2025 TOTAL GBA (sqm) 20,000 TOTAL GBA (sqm) 8,000 PIPELINE UNITS 596 ROOMS AND APPARTMENTS 3
Slide 23: Greenfield West Residence & Plaza
5,528 units, Greenfield West Residence & Plaza District 6, Bucharest Residence Plaza STARTING DATE 2023 STARTING DATE 2023 COMPLETION DATE 2028 COMPLETION DATE 2025 PIPELINE UNITS 5,528 TOTAL GBA (sqm) 7,258 - Commercial (sqm) 3,484 GBA (sqm) 494,040 - Wellness (sqm) 3,774 GDV (‘000€) 301,306 GDV (‘
Slide 24: Pipeline
4,485 units, PIPELINE National New potential projects STARTING DATE 2024 COMPLETION DATE 2030 PIPELINE UNITS 4,485 GBA (sqm) 410,140 GDV (‘000€) 162,451 New potential projects represent new projects for which land has been identified but not yet acquired. Except for GDV that are 2022-2027 estimation
Slide 25: Financial Data - Summary
FINANCIAL DATA - SUMMARY • During the H1 of 2022, the gross margin continued its P&L improvement trend compared to the corresponding period of Consolidated the previous year, increasing at 39% vs. 31%, with gross profit RON thousand H1 2022 H1 2021 Var % also having a consistent increase of 64%. Rev
Slide 26: Financial Data - Summary
FINANCIAL DATA - SUMMARY RON thousand 30 June 2022 31 December 2021 Var % • Property, plant, and equipment increased by 60% compared to 31 December 2021 Non-current assets, of which 615,619 587,318 5% following an 1,891 sqm land acquisition within Greenfield Băneasa area. Investment property 591,164
Slide 27: Key Performance Indicators
KEY PERFORMANCE INDICATORS Total adjusted assets EPRA Net Reinstatement Value (th EUR) (in EUR thousand) 250,000 233,847 350,000 317,003 209,281 295,692 188,425 300,000 200,000 171,212 248,343 228,137 250,000 150,000 200,000 150,000 100,000 100,000 50,000 50,000 - - Dec-19 Dec-20 Dec-21 Jun-22 Dec-1
Slide 28: Land Bank
LAND BANK Details on land bank IFRS IFRS EPRA EPRA book value book value value value Location City Project Surface (ha) (RONm) (EURm) (RONm) (EURm) Băneasa Bucharest Greenfield Baneasa 39.4 330.9 66.9 408.0 82.5 Blvd. Timisoara - Ghencea Bucharest Greenfield West 25.9 128.2 25.9 128.2 25.9 Barbu Văc
Slide 29: Residential Development Pipeline
RESIDENTIAL DEVELOPMENT PIPELINE GDV Project Geo Project Total Under construction Pipeline Estimated 2022-2027 Name GBA City Units Units Sqm Units Sqm Th. Eur Location Phases Sqm Greenfield Băneasa București 68,953 732 732 68,953 - - 94,184 Phases 1,2,3 Greenfield Băneasa București 38,404 435 435 38
Slide 30: Financing Mix as of June 2022
FINANCING MIX AS OF JUNE 2022 Debt-to-Total Assets 20% Project Finance 32% 32% Bonds 36% Corporate Loans Debt = Financial Debt computed as at 30 June 2022 Total Assets = Assets Adjusted to Fair Value According to EPRA guidelines as of 30 June 2022 30
Slide 31: Main Forecast Assumptions
MAIN FORECAST ASSUMPTIONS Key assumptions summary Target ratios • Our estimated forecast figures are based primarily on development of own land bank. • Financing estimates: 40% 3.5 • Min. €50 mil equity increase (of Debt-to-Assets 1 Avg. Debt-to-EBITDA2 which €16 mil. already raised up to August 202
Slide 32: Investment Program
INVESTMENT PROGRAM Greenfield Băneasa Greenfield Copou In order to support our development strategy we aim Residence for an investment program of: Up to EUR 50 mn capital increase By issuing shares according to the shareholders' decision of August 20, 2021 Up to EUR 100 mn in bonds By issuing green
Slide 33: 2022-2027 Strategic Targets
2022-2027 STRATEGIC TARGETS 100+ 40+ thousand sqm currently in thousand commercial sqm to be construction developed 1,300+ ~500 mil EUR thousand residential sqm to be estimated gross margin developed >1.3 bn EUR gross development value 33
Slide 34: Six Reasons to Invest with Us
SIX REASONS TO INVEST WITH US SOLID EXPERIENCE VALUABLE PORTFOLIO 30 years of expertise in the development of Residential communities developed in green flagship real estate projects, building areas of large cities and own land bank with communities & pioneering in the Romanian increasing market val
Slide 35: Forecast
Forecast Consolidated statement of profit and loss Net Profit Margin 35% 30% 30% 28% 26% 25% 23% 21% 20% 15% Total 10% 369.2 5% 0% 2023F 2024F 2025F 2026F 2027F The forward-looking statements in this presentation are based on numerous assumptions regarding the Company’s present and future business s
Slide 36: Forecast
FORECAST Consolidated statement of profit and loss EURO thousand 2023 F 2024 F 2025 F 2026 F 2027 F Total Revenue from residential inventories 108,447 115,916 245,636 339,881 400,632 1,210,512 Costs of residential inventories (67,152) (68,883) (149,375) (212,113) (243,834) (741,357) Gross margin res
Slide 37: Stay in touch with us!
CONTACT: Teodora Dănilă Head of ESG & Investor Relations ir@impactsa.ro +40 729 100 144 Stay in touch with us!