Archicom Sa · GPW:ARH
Archicom Sa — Q3 2023 Earnings Presentation
34 slides from Archicom Sa's earnings presentation, November 2023
Slide 1: Q3 2023 Results
archicom Q3 2023 Results
Slide 2: Agenda
-archicom ONO PWD 2 Overview Residential Market Archicom in Q3 . Financial Results — Q3 Events after Q3 Summary Q&A . Additional Slides
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: Disclaimer
A archicom Disclaimer 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 anal
Slide 5: Overview
Slide 6: Successful integration of residential business
Successful integration of residential business • Archicom the exclusive residential operator for Echo Investment Group. Becoming nationwide residential developer • Active on 5 biggest markets in Poland: Warsaw, Cracow, Wroclaw, Lodz, Poznan • 15 projects currently in sale • more than: 36 years on th
Slide 7: Archicom with strong sales in Q3 2023
Archicom with strong sales in Q3 2023 – 493 units sold vs. 310 units (in Q2 2023 ) High gross margin of 45,5% in Q3 2023 vs 45,1% in Q2 2023 PLN 316.4 million in revenues in Q3 2023 vs 219,4 in Q2 2023 Share issue in the amount of PLN 220 million Purchase of real estate in Warsaw for PLN 55 million
Slide 8: Residential Market
Slide 9: Market events and prospects
A archicom Market events and prospects: * Significant drop-in interest rates to 6.0% in September 2023 and % and another reduction in October 2023 to 5.75% thanks to lower inflation. * Introduction of the Safe 2% Loan program. + Unemployment in Poland decreased by 0.5 p.p. from January to September
Slide 10: Sales vs offer on the residential market
Sales vs offer on the residential market Aggregation for 7 markets: Katowice, Cracow, Lodz, Poznan, Tricity, Warsaw, Wroclaw Units put on sale Units sold end of the month offer data source: own study based on OtoDom Analytics www.archicom.pl 10
Slide 11: Archicom in Q3
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Slide 12: Archicom and Echo sales and offer
600 1600 1149 500 87 1200 400 989 859 856 885 866 300 648 682 800 605 607 583 477 200 406 336 334 310 400 235 258 100 227 198 182 113 0 0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q2023 2021 2022 2023 Archicom sprzedaż sales Archicom ECHO Echo sprzedaż sales(*) Archicom oferta &&ECHO Archic
Slide 13: Modern Mokotów, 554 units
Modern Mokotów Warsaw Start of sales of Modern Mokotów, the first stage contains 554 units. This first stage of the investment remained in ECHO's portfolio, while Archicom exclusively manages them, including sales, marketing, construction under a separate agreement. www.archicom.pl 13
Slide 14: Handovers
600 500 400 300 590 200 305 302 293 45 282 253 100 209 172 134 129 100 0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 2021 2022 2023 przekazania Archicom Archicom handovers przekazania Echo Echo handovers (*) (*) ECHO handover refers to premises where Archicom exclusively manages the apart
Slide 15: 64% of units under construction are sold
3 171 1 884 64% 64% of units 1 669 1 692 1 525 1 524 under 1 381 1 414 construction are sold 36% 52% 60% 39% 43% 51% 30% 31.12.2021 31.03.2022 30.06.2022 30.09.2022 31.12.2022 31.03.2023 30.06.2023 30.09.2023 ArchicomArchicom sprzedane sales ArchicomArchicom dostępne available sprzedane (*) Echo ECH
Slide 16: Portfolio of projects under construction
Total projects under construction: 2 213 units Portfolio of projects under construction as of September 30, 2023 City # of projects # of units Miasto Wroclaw Liczba projektów 10 Liczba1 mieszkań 289 Poznań Cracow 3 430 9% 13% Warszawa Poznan 1 206 Łódź Warsaw 1 288 30% 58% Wrocław TOTAL 15 2 213 20%
Slide 17: Archicom's Land Bank as of September 30, 2023
Potential for construction of 8 562 units Archicom’s Land Bank as of September 30, 2023 City # of projects # of units Cracow 4 280 Poznan 10 2 332 Poznań 27% Warsaw 9 2 185 26% Warszawa Wroclaw 14 2 063 20% 25% Lodz 9 1 702 Łódź 24% 3% Wrocław Total Archicom today 46 8 562 3% Kraków Consistent data
Slide 18: Echo Investment's residential portfolio
Total projects under construction: 958 units Due to ongoing construction or multi-phase/mixed-use projects, some projects could not be transferred Echo Investment’s residential portfolio as of September 30, Potential for construction: 355 units 2023 that was not a subject of contribution to Archicom
Slide 19: Financial Results – Q3
Slide 20: Income statement Q1-Q3 2023
PLN million Q1-Q3 2022 Q1-Q3 2023 Revenue recognized from 468 delivered apartments from the beginning of 2023 Sales 379,0 316,4 vs. 675 in the comparable period of 2022. Gross profit/loss 139,4 144,0 High gross margin 45,5% thanks to high gross margin projects: Browary Wrocławskie and Olimpia Port h
Slide 21: Assets
PLN million 31.12.2022 30.09.2023 Fixed assets 96,7 188,9 Current assets, including: 1 230,2 2 340,6 Inventory 645,8 1 456,8 Increase thanks to contribution in kind of Echo residential business. Liabilities 159,1 262,4 Cash and other short-term assets 275,8 462,0 Strong cash position – readiness for
Slide 22: Equity and liabilities
PLN million 31.12.2022 30.09.2023 Equity 731,7 898,6 Equity increase by PLN 167 million due to issuance of new shares related to contribution in kind of Echo residential business and recognition of quarterly net Long-term liabilities, income and dividend payment 176,0 169,1 including: Bonds 110,0 60
Slide 23: Net financial debt
PLN million 31.12.2022 30.09.2023 PLN 186 milion - we consciously maintain a high cash balance as a guarantee of business security, a basis for dividend payments as well as increasing the flexibility Cash and other short-term of our business decisions (land purchases) in the face of expanding the sc
Slide 24: Bond maturities
PLN million 500 400 300 200 M6/2022 M3/2018 M4/2019 109,9 M7/2023 100 79,1 51 60,8 61,5 0 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 1Q25 Redeemed bonds Bonds with maturity dates *including funds in trust and blocked accounts www.archicom.pl 24
Slide 25: www.archicom.pl
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 www.archicom.pl 25
Slide 26: Events after Q3
Slide 27: New funds and new landbank
New funds: • receipt of PLN 220 million from the issue of series D and E share • issuance of bonds worth PLN 210 million • an annex to the overdraft facility agreement increasing the available funds to PLN 160 million New landbank: • new land acquisitions in Wrocław for an amount of PLN 127 million
Slide 28: Introducing 396 units for sale after Q3 2023
Awipolis Wroclaw Introducing 396 units for sale after Q3 2023 • Awipolis in Wroclaw – 56 unit • Sady nad Zielona in Wroclaw – 122 units • Planty Racławickie in Wroclaw – 98 units • Zenit in Lodz– 120 units Sady nad Zieloną Wroclaw Planty Racławickie Wroclaw Zenit Lodz
Slide 29: Potential for upcoming introductions
FUZJA Lodz Potential for upcoming introductions is more than 900 units: Południk 17 • Fuzja Lofty in Lodz Wroclaw • Poludnik 17 in Wroclaw • Modern Mokotow in Warsaw (next stage) Accumulated handovers in Q4 for more than 1,000 units. Modern Mokotow Warsaw
Slide 30: Summary
Successful integration becoming nationwide residential developer Successful D & E share issue Successful M8 bonds issue Increase of the amount of the available overdraft agreement Strong financial position: new funds allow for dynamic investment in land bank and rapid growth of offer supporting the
Slide 31: Q&A
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Slide 32: Additional Slides
Slide 33: Revenue potential
2 500 1 400 mln 1 260 mln 1 203 mln 1 200 mln 1 155 mln 2 000 1 000 mln 1 500 800 mln 545 mln 455 mln 584 mln 409 mln 455 mln 528 mln 511 mln 600 mln 1 000 382 mln 393 mln 368 mln 482 mln 445 mln 444 mln 426 mln 400 mln 500 200 mln 898 980 961 926 843 857 917 874 879 921 907 831 876 927 1 0281 0341
Slide 34: Thank you
archicom Thank you Archicom SA — Powstancow Slqskich 9 53-332 Wroclaw www.archicom.pl