September 2023
Agenda
Atenor at a glance
Market context
Atenor's response & strategy
Financial statements
Investor Presentation
Reasons to invest
Investor Presentation
01
Atenor
at a glance
Atenor at a glance
Investor Presentation
We are…
Real Estate Developer
A leader in the transformation towards a Sustainable environment
… a real estate developer with a
robust business model for future-proof building development
With an International
presence and expertise
Supported by
a strong Governance
3
Investor Presentation
4
From "obsolete"
Brown Discount
To "grade A"
Green Premium
Bringing value at every stage of development
Building permit
delivery
03
04
Launch of the
construction
Building permit
submission
02
05
Leasing
01
Acquisition
06
Sale
A proven business model applied to a well-balanced and diversified portfolio
Investor Presentation
Portfolio by function as of 30 June, 2023 Portfolio by stage as of 30 June, 2023
20%
Permit delivered (cleared of any appeal) 245,250 m²
Permit submitted
305,100 m²
25%
17%
In construction
201,037 m²
Leased
95,605 m²
8%
Others
6%
Residential
39%
Offices
55%
As of the date of this Investor presentation, the Group's portfolio consists of 35
projects representing a surface area of approximately 1.2 million m².
20%
Acquisition & Conception 241,300 m²
10%
m²
Projects sold as of date June 2023, still under
construction Ctry Total
Sold
120,228 m²
City Dox 5 & 7.1
BE
26,628
Realex CC BE 23,400
Au Fil des GP (offices) BE
14,600
Note - The percentages mentioned in these graphs are percentages of the total surface area (m²) and inventory of the Group's portfolio
Lake 11 (3-4-7-8) HO 12,425
Up-site RO 28,125
Twist
LU
15,050
TOTAL 120,228
5
Strong resiliency based
Investor Presentation
on a Pan-European portfolio
Brussels Paris London Lisbon The Hague
Luxembourg ville Leudelange Belval
Esch-sur-Alzette Düsseldorf Warsaw Budapest Bucharest
La Hulpe Mons
15 years of exporting local expertise, knowledge and success through international development with presence in 10 countries.
As of 30 June 2023, 75% of the portfolio is outside Belgium
6
Investor Presentation
Président (LU)
UP-site (BE)
Hermes (RO)
The One (BE)
Naos (LUX)
Robust international track record: consistently developing and selling high quality assets
Year of sale
2010
2015
2018
2019
7
North Galaxy (BE)
Trebel (BE)
Vaci Greens (HU)
Dacia One (RO)
2005
2016
2020 2021
Atenor at a glance - Sustainability strategy
ESG at the heart of our strategy - recognised by reliable institutions
Investor Presentation
Corporate rating as of 2022 Projects certifications for all projects under development as of 30 June 2023
96%
5 stars
Governance
Global Listed Sector Leader
100%
Office
Environmental
Min. excellent level
100%
Office
Well-being
Min. excellent level
92%
Office & Residential
Environmental & social
EU Taxonomy aligned
8
ArchiLab, an in-house think & do tank, where the future of the projects and the company is shaped
ArchiLab defines the best practices
which can be implemented into
projects
Focus on sustainability, architectural
quality, technical innovations and
adaptation to social evolutions
Technical innovations
Wood construction, prefabrication, use of renewable energy
Low waste construction, LCA optimisation, material reuse
Low carbon design
Architectural quality
Design competitions attracting renowned architects leading to high quality designs and renowned tenants
Investor Presentation
Social evolutions
Active ground floor, flexible living
solutions, new ways of working
Proptech's & smart building
implementation
Sustainability
Alignment with EU Taxonomy
Certifications of BREEAM and WELL with excellent scores
Energy monitoring and optimisation,
9
data management
Investor Presentation
A listed company with diversified and committed shareholders
ALVA SA
9.2%
Public
45.3%
Luxempart SA
11.0%
3D NV
13.9%
Reference
shareholders have been present for over 10 years.
ForAtenoR SA
12.0%
Stéphan Sonneville SA &
Treasury shares consorts
4.2% 4.3%
10
Note - ForAtenoR's shareholder basis is constituted of 3D (59,5%), SS SA (32%) and others (8,5%)
11
Frank Donck
Chair & Member of
the Audit Committee
Appointed upon nomination by 3D NV
Stéphan Sonneville
Chief Executive Officer &
Member of the Board
Rep. of Stéphan
Sonneville SA
Emmanuèle Attout
Independent Director & Chair of the Audit Committee
Rep. of Investea SRL
Nadine Lemaitre
Director & Chair of the Nomination Committee
Rep. of Sogestra SRL
Laure le Hardÿ
de Beaulieu
Independent Director & Member of the Audit Committee
Rep. of Trionna SRL
Investor Presentation
Relying on an experienced and stable Board of Directors
John Penning
Director & Member of the Audit Committee
Appointed upon nomination by Luxempart
Christian Delaire
Independent Director & Member of the Nomination Committee
Philippe Vastapane
Director & Member of the Audit Committee
Michèle Gregoire
Independent Director & Member of the Nomination Committee
Rep. of MG Praxis SRL
12
Investor Presentation
Managed by a dynamic and forward thinking team
Stéphan Sonneville*
Chief Executive Officer & Member of the Board
Rep. of Stéphan
Sonneville SA
William Lerinckx *
Executive Officer Rep. of Lerinvestimmo Scomm
Laurent Collier*
Executive Officer
Rep. of Strat UP SRL
Sven Lemmes*
Executive Officer Rep. of Weatherlight SA
Laurent Jacque
mart
*
Chief Financial Officer
Rep. of Value Add Consulting SRL
* Member of the Executive Committee
Hans Vandendael
Int. Legal Director, Company Secretary, Compliance officer
Rep. of Real Serendipity CommV
Julie Willem
ArchiLab Director
Rep. of Make it real! SRL
Jonathan Loos
Group HR Manager
Rep. of New Turns SRL
Stephanie Geeraerts
Investor Relations Manager
Rep. of Thibrox BV
115 People worldwide
Investor Presentation
Transversal and local structure of management
Country directors
19
13
7
14
9
2
3
4
4
5
Corporate team
Int. Executive Directors
Marketing & Communication
Legal
Finance & Control
Local team (FTE)
Executive Committee
13
Belgium Netherlands Luxembourg France Portugal Germany Poland Hungary Romania UK
Investor Presentation
02
Market
context
14
Market changes impacting the real estate sector
Covid-19 impact
Financial changes
'Wait & see' mode for investors
Impact on real estate
Rapid increase in the cost of financing
Investor Presentation
Geopolitical changes
ECB Interest rates %
4%
3%
2%
1%
15
0%
Accelerating trends in real estate
Real estate
Real Estate is responsible for 40% greenhouse gas emissions
Investor Presentation
(Source - UN Environment Programme)
Market changes
Demand for sustainable buildings
40% CO2
33% water consumption
50% energy consumption
50% material flows
Societal trends
16
33 % waste
Investor Presentation
ESG buildings facilitate higher rents
Note - Vacancy grade A buildings remains below 1% despite Covid-19 crisis
17
Source JLL
and lower vacancy
Source JLL - Brussels Regeneration report 2023
Source Savills
16 July, 2023
Rents of prime office space in Europe have increased by an average of 7.4% since Covid-19, says Savills
Investor Presentation
03 Atenor's
response & strategy
Atenor's short term response to the current environment
Continued impact on sales due to 'wait and see' attitude in the
Investor Presentation
industry leading to short term actions
Sales at market conditions
of 10% of portfolio (in terms of surface area) as of 30 June 2023
Sale of the 50% participation in Deinze
( 35,000 m² mixed use)
Pre-sales of 3 projects would bring EUR 83M of cash (net of EUR 118M indebtedness) on the Jan-June 2024 period
Establishing partnerships
Respond to the current
environment
19
with Besix Red on Well Be in Lisbon (29,000 m² office)
with Cores Development on Square 42 in Lux (20,427 m² office and 839 m² retail)
Capital increase Financing
with preferential rights
firm commitments from the reference shareholders and new investors of up to EUR 133.5 M
switching from CP & EMTN financing to more project financing.
An increase of the backup line from EUR 65 million to EUR 100 million
Sustainable and international growth plan
PHASE
1
2017 -
2021
Investor Presentation
(international increase and doubled gross margin)
73.05
57.7 58.83
54.53
39.07
43.31 43.01
30.37
34.7
25.39
Highlighting our sustainability approach in each territory with the objective of becoming a reference player in each country
Aiming to select new projects with an optimized average cycle of 4,5 years and an average gross margin EUR 450 /m² for offices and EUR 270/m² for residential
Project gross margin per year in M EUR
150
160
140
2022 -
2023
Year of transition
120
100
80
60
40
20
PHASE
2
2024 -
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
0
2026
20
PHASE 2
PHASE 1
(Pursuing optimal development)
Investor Presentation
Strong long term development strategy and growth plan underpinned by international and sustainable pillars
1
Sustainability
the strategy plan
same of or lower cost of building
2
International
country
21
Response & Strategy - Sustainability
Atenor on track to reach targets
2025
Deliver 100% projects with energy consumption at least 10% below the Nearly Zero Energy Building standard (actual performance of 92% in 2022)
Produce renewable energy in 100% of projects
100% of projects integrate climate adaptation and promote innovations (actual performance of 92% in 2022)
Investor Presentation
Extend participative dialogue with stakeholders
Align 100% of projects in development with
the EU Taxonomy (actual performance of 92% in 2022)
Sustainability:
Upgrade the future
Strategy translated into clear and quantitative objectives
Targets 2030
100% long term financing recognized as green
100% of projects to operate as zero emissions buildings
100% of projects include reused materials
22
Recognised by strong ESG rating
Investor Presentation
On 18 October 2022, Atenor obtained 5 stars, the highest score awarded by the Global Real Estate Sustainability Benchmark (GRESB), an international organisation evaluating Environmental, Social and Governance (ESG) performance of companies. 1,820 real estate actors participated in this assessment worldwide. Atenor distinguished itself with an exceptional result of 96%, and is therefore recognised as one of the 12 Global Sector Leaders in its category.
5stars
96%
score
Regional Listed Sector Leader Europe
Global Listed Sector Leader
23
A solid and strong business model: an illustrative example of an office building
EUR/m2 | 2021 | 2022 | Future | ||
Acquisition costs | 650 | 650 | 520 (-20%) | ||
Development costs | 2,625 | 2,887 (10%) | 3,018 (5%) | ||
Total costs | 3,275 | 3,537 | 3,538 | ||
Interest charges | 61 (2,5%) | 101 (3,5%) | 101 |
SALE
24
Investor Presentation
Lease | 200 | 220 | 220 | ||
Yield | 5% | 7% | * 5% | ||
Sale price | 4,000 | 3,666 | 4,400 | ||
Gross margin | 664 | Break even | 761 |
ESG strategy applied to new projects allows for the maintenance of yield levels despite the growth in interest rates and supports an increase in rental prices.
CRISIS EFFECT
ESG EFFECT
* A yield of 7% is assumed for grade B and C buildings
A robust and science-based approach for future-proof buildings
1200
Investor Presentation
1000
800
The SBTi (Science-Based Target initiative) developed Sectoral Decarbonization Approach, a scientifically-informed method for companies to set necessary greenhouse gas (GHG) reduction targets.
kgCO2eq/m²
600
400
200
0
office requirement
1000
residential requirement
800
office objective
residential objective
575
competitors
470
315
2023 2025 2030 2035 2040 2045 2050
Atenor committed to achieve the level of climate ambition required to meet the 1.5°C goal of the Paris Agreement.
Furthermore, Atenor positions itself to be 10 years ahead.
25
Global pathway for buildings' embodied emissions (construction related) aligned with 1.5°C limit
Consolidated loans (Figures x 1,000,000 EUR)
31-12-2021
31-12-2022
30-06-2023
31-12-2027
1,000
900
800
Diversification
of funding sources towards green financing
700
100% sustainable financing*
600
100% sustainable financing
500
400
300
Investor Presentation
200
100
31-12-2027
31/12/20…
-
26
*Regardless of what the total amount will be, it will be 100% sustainable financing
Expanding international presence with local teams
A strong local expertise across 10 European countries.
1998
Luxembourg
1994
Belgium
2008
Hungary Romania
Investor Presentation
2017
France
2018
Portugal Germany
2017
Poland
2020
The Netherlands
27
2022
UK
Portfolio diversification underpinned by 35 projects
Belgium 26% - 304 EUR
France 20% - 235 EUR
Hungary 13% - 146 EUR
Romania 12% - 144 EUR
Lux 9% - 101 EUR
Poland 9% - 101 EUR
Germany 4% - 46 EUR
Portugal 3% - 31 EUR
The Netherlands 2% - 28 EUR
UK 2% - 24 EUR
Value per country - June 2023
(Figures x 1,000,000 EUR)
A source of resilience in times of crisis
A growth driving force in times of recovery
A risk diversification for investors
Due to long permit deliveries in Belgium, the internationalisation helps reducing the average lifecyle
9%
9%
12%
3% 2%2%
Investor Presentation
4%
26%
20%
13%
28
TOTAL of 1,162 EUR
2023-2025 Value creation cycle per year
2 4 /
23 | 150,000 | |
22 | 265,000 | |
21 | 299,000 | |
20 | 188,000 |
2 4 / 2 5
M²
2 5
23
22
21
20
19
31
240,000
122,500
223,000
78,800
79,200
M²
0,000
M²
22 108,000
21 128,500
20 92,000
19 130,000
M²
22
21
20
19
100
45,000
70,000
86,
,500
500
Building permit delivery
03
04
Launch of the construction
Building permit submission
02
05
Leasing
01
Sale
06
Acquisition
Apartment
22
361
21 470
20 124
105,000
102,100
Investor Presentation
19
M²
18,000
38,000
215,000
100,000
23
22
21
20
19 388,500
M²
Office
19,700
14,600
40,500
22
21
20
19
29
148,000