Consultatio SA · BCBA:CTIO
Consultatio SA — Q3 2019 Earnings Presentation
56 slides from Consultatio SA's earnings presentation, November 2019
Slide 1: Company Presentation 3Q 2019
Company Presentation 3Q’ 2019
Slide 2: Disclaimer
Disclaimer The following documents contain the general description and background of This document is not in itself and is not part either of an offer or a solicitation of Consultatio S.A. and its subsidiaries (collectively designated hereafter as offers to buy, subscribe or otherwise acquire any se
Slide 3: A leading high-end residential and commercial real estate developer
Company overview > Consultatio at a Glance A leading high-end residential and commercial real estate developer Developed more than 235k sqm of residential and office towers and more than 1,800 has. of sellable land plots Attractive & diversified business segments Successful track-record with unique
Slide 4: Attractive and diversified real estate portfolio
Company overview > Business segments Attractive and diversified real estate portfolio Flexible business model and ability to presell products underpin our financing structure Master-planned Residential Office communities buildings towers Development and Development of for-sale Development of for-leas
Slide 5: Consultatio initiating its third asset expansion phase
Company overview > History and track-record Consultatio initiating its third asset expansion phase Successfully delivered 5 residential & 3 office towers and 31 gated communities Launch and early expansion through Local IPO and aggressive expansion through development Expansion focused opportunistic
Slide 6: Experience managing multiple projects in different stages of development
Company overview > Our projects Experience managing multiple projects in different stages of development Developed more than 235k sqm and more than 1,800 hectares of land Master-planned communities Office towers 65% 34% 80% 100% 100% 0% Nordelta Puertos Las Garzas Catalinas Plaza & Catalinas Norte C
Slide 7: Industry Update
Comultatio REAL ESTATE
Slide 8: The housing sector
Industry update > Housing market The housing sector With a more stable macroeconomic context, attractive fundamentals are set for broad sector opportunity; high- end remains resilient Historic underinvestment in the residential real estate sector & low penetration of mortgage credit in the economy H
Slide 9: Buenos Aires AAA office market
Industry update > AAA office market Buenos Aires AAA office market An undersupplied market relative to other Latam countries, with limited new space entering the market Demand for corporate space has absorbed incoming inventory in the AAA segment 2009-11 2012-15 2016-19 Post global crisis Domestic F
Slide 10: Master-planned communities
Master-planned communities
Slide 11: Pioneers of the Master-planned communities in Argentina
Business segments > Master-planned communities > Summary Pioneers of the Master-planned communities in Argentina With the launch of Nordelta in 1999, Consultatio is the undisputed leader in transforming lifestyles in Northern Buenos Aires Significant sellable area remains Product highlights As of Se
Slide 12: A business model based on a simple premise: land revaluation
Business segments > Master-planned communities > Business model A business model based on a simple premise: land revaluation We start with raw, undervalued land, attract residents and generate demand for the last “precious” land plots 1 Nordelta and Puertos launch neighborhoods and sell land plots t
Slide 13: Our scale, flexibility and variety of services are key differentiators
Business segments > Master-planned communities > Product Our scale, flexibility and variety of services are key differentiators Comfort and safety for family members combined with flexible development planning and a conservative financing model Key innovative concepts The Master- • Combines all faci
Slide 14: Nordelta today
Business segments > Master-planned communities > Nordelta Nordelta today Over 20 years, we transformed a raw landscape into a complex community with 30,000 residents and 10,000 non- resident commuters daily Over invested by 24 neighborhoods 40,000 inhabitants USD 1.5 third parties billion Over 1,700
Slide 15: A 1,700-hectare piece of land with more than 40,000 inhabitants
Business segments > Master-planned communities > Nordelta A 1,700-hectare piece of land with more than 40,000 inhabitants… Based on demand, we can add attractive waterfront to maximize returns Low density 31,000 inhab. 22% 5,016 plots 9,000 inhab. 78% 1,430 plots (estimated) High density 33,000 inha
Slide 16: Characterized by a unique range of services
Business segments > Master-planned communities > Nordelta …characterized by a unique range of services Scale allows Nordelta to include a wide variety of services unseen in peers’ projects • Otamendi and Las Lomas private healthcare • El Muelle, social events developments. and gatherings facing • Wi
Slide 17: The City center
Business segments > Master-planned communities > Nordelta The City center The final phase of the project includes the creation of an urban center Product highlights Big numbers • Integrated area open to outside visitors. 312,000 685,000 Residential sqm • The heart of Nordelta, an urban city center.
Slide 18: Nordelta
Business segments > Master-planned communities > Nordelta Nordelta Tigre, Argentina 18
Slide 19: Nordelta
Business segments > Master-planned communities > Nordelta Nordelta Tigre, Argentina 19
Slide 20: Puertos today
Business segments > Master-planned communities > Puertos Puertos today Following our experience with Nordelta, we launched Puertos in 2010 7 neighborhoods 2 schools 800 students Over 1,400 hectares 2,028 lots sold USD 255 executed investments million by CTIO 2010 2019 As of September 30, 2019. 20
Slide 21: Launched in 2010, Puertos is our second master-planned community
Business segments > Master-planned communities > Puertos Launched in 2010, Puertos is our second master-planned community With a total area of 1,400 hectares, Puertos is almost the size of Nordelta Low density 13,764 Hab. 2,294 Plots 36% 64% 24,681 Hab. 4,114 Plots (Estimated) High density 1% 298 Ha
Slide 22: By capitalizing on Nordelta's success, Puertos was well received
Business segments > Master-planned communities > Puertos By capitalizing on Nordelta’s success, Puertos was well received Since its first launch in 2010 the project sold 2,021 lots, 2 macrolots and 16 residential units from our first set of buildings Product highlights Big numbers • Puertos has been
Slide 23: The Puertos commercial area
Business segments > Master-planned communities > Puertos The Puertos commercial area First mixed-use building launched to increase visitor flow and attract more residents Product highlights Location of City center (mixed-use project) • New mixed-use project launched in 4Q’2017. • 5,100 sqm of sellab
Slide 24: Puertos
Business segments > Master-planned communities > Puertos Puertos Escobar, Argentina 24
Slide 25: Las Garzas
Business segments > Master-planned communities > Las Garzas Las Garzas Exclusive gated residential resort near Punta del Este, Uruguay Project description Big numbers • Located in a touristic area - 20 minutes away from José Ignacio in a unique location. 240 474 sellable 2,500 land average lot • 240
Slide 26: Exclusive amenities to enjoy nature
Business segments > Master-planned communities > Las Garzas Exclusive amenities to enjoy nature Designed for families seeking relaxation and tranquility • Beach club • Massage room with sauna • Waterfront deck • Gym • Tennis courts • Adult pool with jacuzzi • Living room and restaurant managed by a
Slide 27: Las Garzas
Business segments > Master-planned communities > Las Garzas Las Garzas Rocha, Uruguay 27
Slide 28: Historically strong and value generating sales performance
Business segments > Master-planned communities > Financials Historically strong and value generating sales performance Nordelta Contracted sales (USD million) Price per sqm (USD/sqm) Total project As of today Remaining Remaining (%) Contracted sales USD 2.1 bn USD 963 M USD 1.1 bn 54% 79,5 74,2 Area
Slide 29: Residential Buildings
Residential Buildings Comuttatio REAL ESTATE
Slide 30: Initial launches in Buenos Aires
Business segments > Residential buildings > Buenos Aires Initial launches in Buenos Aires Three iconic residential buildings consolidate the Consultatio brand Our initial residential buildings Product highlights As of September 30, 2019 Quartier Ocampo Grand Bourg Torre Oro • Landmark properties in
Slide 31: Our experience in the US: Oceana was born
Business segments > Residential buildings > Miami Our experience in the US: Oceana was born Two luxury residential towers in the US developed where scarcity was assured Projects Product highlights As of September 30, 2019 Oceana Key Biscayne Oceana Bal Harbour • The Oceanas are located in Miami, U.S
Slide 32: Oceana Key Biscayne
Business segments > Residential buildings > Miami Oceana Key Biscayne Florida, United States 32
Slide 33: Oceana Bal Harbour
Business segments > Residential buildings > Miami Oceana Bal Harbour Florida, United States 33
Slide 34: Office Towers
Office Towers Comultatio REAL ESTATE
Slide 35: Highly desirable locations with top tier tenants
Business segments > Office towers > Summary Highly desirable locations with top tier tenants Three well-known AAA office towers in the Catalinas business area Project description Top tier tenants • Office towers are located in today’s most dynamic and demanded commercial area in the City of Buenos A
Slide 36: Catalinas Norte Tower
Business segments > Office towers > Catalinas Norte Catalinas Norte Tower Buenos Aires, Argentina 36
Slide 37: Pipeline
/ / Pipeline Comultatio REAL ESTATE
Slide 38: Consultatio today: defensive mode prepared for quick reaction
Pipeline > Overview Consultatio today: defensive mode prepared for quick reaction We built a solid pipeline since 2017 land acquisitions with very low downside risk Unique … at very attractive valuations. For We have no … so there’s no pressure to achieve landbank instance we paid an incidence of US
Slide 39: New residential in Argentina
Pipeline > Residential buildings New residential in Argentina In 2017, we purchased three lots for USD 75 million to develop new residential projects in Buenos Aires Projects Product highlights Oceana Puerto As of September 30, 2019 Oceana Nordelta Huergo 475 Madero • Limited supply of luxury reside
Slide 40: Oceana Puerto Madero
Pipeline > Residential buildings Oceana Puerto Madero After securing 43% of sellable area for USD 88 million , we started construction works in 3Q’18 Project description • In 2Q’17, we acquired an 11,362 sqm land plot in Puerto Madero for USD 45 million already paid. • The project has 27,785 sqm of
Slide 41: Oceana Puerto Madero
Pipeline > Residential buildings Oceana Puerto Madero Buenos Aires, Argentina 41
Slide 42: Oceana Nordelta
Pipeline > Residential buildings Oceana Nordelta A unique location inside our master-planned community project surrounded by water and near Nordelta’s city center Project description • In 3Q’17, we acquired a 23,080 sqm land plot in Nordelta for USD 11 million already paid. • We have a 50% stake on
Slide 43: Oceana Nordelta
Pipeline > Residential buildings Oceana Nordelta Tigre, Argentina 43
Slide 44: Project Huergo
Pipeline > Residential buildings Project Huergo Acquisition of a new land lot in Macrocentro area facing Puerto Madero. This area will be transformed by new infrastructure works already in progress. Project description Location: Macrocentro area facing Puerto Madero • In 4Q’17, we acquired a 3,920 s
Slide 45: Catalinas Río
Pipeline > Office towers Catalinas Río Consultatio recently acquired 3 adjacent lots in the Catalinas submarket for USD 140 million Project description Location • In 4Q’17, we acquired three adjacent lots located in Catalinas district, each with an area of 3,200 sqm for a total USD 140.3 million (al
Slide 46: New Catalinas Business District
Pipeline > Office towers New Catalinas Business District Paseo del Bajo and Catalinas Norte II will consolidate Catalinas Business District 46
Slide 47: Catalinas Río
Pipeline > Office towers Catalinas Río Buenos Aires, Argentina 47
Slide 48: Company Structure
\ A { RE a Au WWI EZ — | Leal — | — ages Company Structure Comultatio REAL ESTATE
Slide 49: Project structure
Organizational structure > Portfolio ownership Project structure We have control over all our projects currently under development, except for Nordelta where we share equal voting rights with our partners Master-planned US Residential Residential buildings Office towers communities buildings 49.9% 8
Slide 50: Corporate structure
Organizational structure > Corporate structure Corporate structure A clean structure controlled by its founder Eduardo Costantini ANSES¹ Free float 70.4% 24.9% 4.7% 100% 49.9% 45%² 55.1%4 55.1%4 55.1%4 Consultatio Las Garzas Blancas Consultatio Consultatio Consultatio Nordelta S.A. Argentina S.A.U.
Slide 51: Top-tier management supported by experienced directors
Organizational structure > Team and corporate governance Top-tier management supported by experienced directors Senior Management team with a proven track-record and average experience of over 7 years in the company Senior Management Board of Directors Eduardo Costantini – Founder, CEO and Chairman
Slide 52: A pure real estate developer that is passionate about design
Organizational structure > Activities A pure real estate developer that is passionate about design Fully integrated from conception to delivery Our Offices: Headquarters Tigre Miami Master-planned Residential Office towers communities buildings Business Inhouse Tigre + Catalinas Inhouse Catalinas In
Slide 53: Appendix
Appendix
Slide 54: Nordelta, a development story
Appendix > Nordelta timeline Nordelta, a development story A 20-year story of growth, showing our long-term view and determination. Nordelta went through two economic crashes and three years of local exchange rate controls Strong investments in Commercial agreements to attract visitors Condominiums
Slide 55: Major events & financial structuring
Appendix > Miami timeline and structuring Major events & financial structuring Besides presales, equity investors have been our primary source of funding Major events in Oceana Key Biscayne Major events in Oceana Bal Harbour Land Consultatio buys Land acquisition. Construction starts. acquisition Co
Slide 56: REAL ESTATE
REAL ESTATE