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Neinor Homes SA — Investor Presentation (June 2022)

41 slides from Neinor Homes SA's investor presentation, June 2022

  1. Slide 1: Neinor Homes Corporate Presentation June 2022

    sis Neinor HOMES CORPORATE PRESENTATION Qwustanaurnics @ westanaurtics JUNE 2022 IBEX MID CAP® ESG tec | PRA REGIONAL INDUSTRY SERRA TOP RATED TOP RATED g

  2. Slide 2: Why Now Is the Time to Own Real Estate?

    a Wuy Now IS THE TIME TO OWN REAL ESTATE? SPANISH ESTATE? a RESIDENTIAL PLATFORM THE LEADING ATTRACTIVE BUSINESS COMPELLING VALUE PROPOSITION ra el EE aE

  3. Slide 3: Why Now Is the Time to Own Real Estate?

    a_i Terobarlastet all mr to Real stale i is to increase in ihe ers ears Why Now Is THE TIME TO OWN REAL ESTATE? BpFicnas by By ALou,

  4. Slide 4: The case for real assets

    1. WHY NOW IS THE TIME TO OWN REAL ESTATE? The case for real assets REAL ESTATE IS... A BOND PROXY WITH A GROWING COUPON > a UBS Drivers of real estate value: Sector Keys: |Global Real Estate Real Assets for Real Inflation What to expect from rising rates: Our general view is that real estate is les

  5. Slide 5: Global asset allocation to real estate is poised to increase

    > > 1. WHY NOW IS THE TIME TO OWN REAL ESTATE? The case for real assets b 5 GLOBAL ASSET ALLOCATION TO REAL ESTATE IS POISED TO INCREASE IN THE COMING YEARS Asset allocation to Real Estate has been increasing steadily year after year - currently there are $180 trillion in fixed income, cash and depo

  6. Slide 6: Why Spanish Real Estate?

    Spain is a top living destination worldwide for students, work remotely, travel or retiremen aa Wnuy SPANISH REAL ESTATE? } Citizens: 6)700/000 View over 8 = ~~ Madftid-central -O- Sunshine hours/year: 2900 whig SIESs Gran Via Cg ww oi e. MADRID a

  7. Slide 7: A top living destination worldwide

    <q 2. WHY SPANISH REAL ESTATE? A top living destination worldwide FROM 18 TO 80: STUDY ABROAD, WORK REMOTELY, TRAVEL OR ENJOY RETIREMENT IN A SUNNY PLACE > STUDY ABROAD p> EXPAT DESTINATIONS pen Places in the World to Study Abroad - 7. Barcelona, Spain i2 InterNations : = The top 10 cities in the wo

  8. Slide 8: Great airports, hospitals, universities, cheap cost of living

    <q 2. WHY SPANISH REAL ESTATE? A top living destination worldwide : S GREAT AIRPORTS, HOSPITALS, UNIVERSITIES, STABLE GOVERNMENT, WEATHER, CULTURE AND... CHEAP COST OF LIVING HOMES > Cost of living in the UK or Ireland is twice as high vs Spain. COST OF LIVING COMPARISON VS SPAIN 123% 114% 106% USA

  9. Slide 9: Madrid and Barcelona among the largest metropolitan areas in Europe

    <q 2. WHY SPANISH REAL ESTATE? Size and population growth E S MADRID AND BARCELONA ARE THE 2"? AND 4! LARGEST METROPOLITAN AREAS IN EUROPE > — Madrid and Barcelona stood amongst the fastest growing > _...and are expected to be amongst the fastest growing over the Metropolitan Areas between 2015 and

  10. Slide 10: An attractive moment in the cycle

    <q 2. WHY SPANISH REAL ESTATE? At an attractive moment in the cycle nS GERMANY HOUSE PRICES HAVE NEARLY DOUBLED SINCE 2007...WHILE SPAIN IS STILL BELOW > Restrictive lending policies by Spanish banks (70% LTV after taxes) have kept house prices “under control” and pushed low equity buyers to the ren

  11. Slide 11: House prices attractive on an international basis

    <q 2. WHY SPANISH REAL ESTATE? House prices attractive on an international basis ni: NI einor HOMES UBS REAL ESTATE BUBBLE SHOWS OVERVALUED MARKETS ACROSS DEVELOPED WORLD...WHILE SPAIN IS CURRENTLY A “SAFE HAVEN” > Madrid is one of the few Top Cities worldwide where prices still look reasonable. $17

  12. Slide 12: Spanish market scores well on housing risk indicators

    2. WHY SPANISH REAL ESTATE? House prices attractive on an international basis ss Neinor HOMES SPANISH MARKET SCORES WELL ON HOUSING RISK INDICATORS SHOWING A LOWER SENSITIVITY TO INTEREST INCREASES > In addition to reasonable house prices Spain exhibits healthy set of credit indicators showing a low

  13. Slide 13: From oversupply to undersupply

    <q 2. WHY SPANISH REAL ESTATE? Strong market fundamentals FROM OVERSUPPLY TO UNDERSUPPLY...C90% REDUCTION ON SUPPLY PER CAPITA > In 2007 Spain was building 15# for each 1,000 inhabitants vs 2# today (-90%)... HOUSING DEMAND VS SUPPLY - SPAIN Transactions / 1k inhabitants © » ‘ -1 1 3 5 7 9 im 13 15

  14. Slide 14: Households and banks in much stronger position

    <q 2. WHY SPANISH REAL ESTATE? Strong market fundamentals XE Neinor HOMES ...AND OVERLEVERAGED TO UNDERLEVERAGED, BOTH HOUSEHOLDS AND BANKS ARE NOW IN MUCH STRONGER POSITION > The ratio of loans-to-deposits has halved since 2007 (88% in 2021 > Today Spanish banks and households have one of the stron

  15. Slide 15: Spain Italy U nited K ingdom

    49% 35% 36% 34% 28% 24% 20% 15% Spain Italy U nited K ingdom Fran ce G erm any EU 2001 2008 2019 2019 15

  16. Slide 16: N UMBER OF U NITS N UM . U NITS (‘000)

    25,000 +1,000 4.00 3% NUM . UNITS (‘000) NUMBER OF UNITS 3.00 15% 14% 20,000 15,000 12,461 2.00 +1,000 85% 82% 1.00 10,000 c200 6,052 0.00 5,000 HOUSEHOLDS HOUSING UNITS (MAIN DWELLINGS) 3,174 0 AT MARKET PRICE BELOW MARKET PRICE EST. VACANCY 2022 2023 2024 16

  17. Slide 17: The Leading Residential Platform

    3 THE LEADING RESIDENTIAL PLATFORM Universities|9 ca —

  18. Slide 18: Best-in-class operational track record

    3. THE LEADING RESIDENTIAL PLATFORM. Best-in-class operational track record C E NEINOR IS THE #1 PLAYER WITH C3% MARKET SHARE IN A HIGHLY FRAGMENTED MARKET... > In 2021, Neinor delivered 3,038# (+89% YoY) - the highest value over the last decade NEINOR DELIVERIES (2017-2024) Operational machine 100%

  19. Slide 19: €60k/# €52k/# €37k/# -€11k/# €40k/# €21k/# €14k/# €14k/#

    €60k/# €52k/# €37k/# -€11k/# €40k/# €21k/# €14k/# €14k/# 19

  20. Slide 20: Land bank by region

    NORTH: C1,900# 1 EAST: 3 C2,100# CENTRE: C6,800# 2 4 LEVANTE: SOUTH WEST: C1,700# C1,000# 5 SOUTH EAST: C3,300# 6 20

  21. Slide 21: An experienced management team

    3. THE LEADING RESIDENTIAL PLATFORM. An experienced management team EXPERIENCED MANAGEMENT TEAM BACKED BY HIGHLY SPECIALIZED INVESTOR BASE & JORGE PEPA Executive Vice President - 15 years of experience » Capital markets and Real Estate background from UBS, DB and Credit Suisse 2 BorJa GARCIA EGOTXEA

  22. Slide 22: A Real Estate specialist shareholder structure

    3. THE LEADING RESIDENTIAL PLATFORM. A Real Estate specialist shareholder structure EXPERIENCED MANAGEMENT TEAM BACKED BY HIGHLY SPECIALIZED INVESTOR BASE c65% Stoneshield 22.7 RION APITAL Stoneshield MANAGERS Real Estate AREF LAHHAM VAN J. STULTS JUAN PEPA FELIPE MORENES specialist shareholders - »

  23. Slide 23: Non-financial performance

    3. THE LEADING RESIDENTIAL PLATFORM. Non-financial performance AWARDED STATUS OF MOST SUSTAINABLE DEVELOPER WORLDWIDE FOR 2ND YEAR IN A ROW SUSTAINALYTICS ESG RISK ASSESSMENT ESG Risk Rating ESG Risk Score 78 Updates Ape 19,2022 eEbssnnares ESG Risk Rating Category Distribution -ESG Risk Rating Negl

  24. Slide 24: Attractive business model with BTS and BTR

    premium segment with ~ . if La strong support from Spanish bank — + = nding cr HOutsta — ATTRACTIVE oO: BUSINESS . MODEL WITH BTS AND BIR (@ Citizens: 100/000 BUCO se Guggenheim and Bilbao 0: Sunny hours/year: 2,400 river #4 Michelin restaurants: BILBAO

  25. Slide 25: Build-to-sell: Premium product and target client

    > 4. ATTRACTIVE BUSINESS MODEL WITH BTS AND BTR. Build-to-sell: Premium product and target client MODERN PRODUCT WITH QUALITY DESIGN AND LOCATED IN HIGH DEMANDED EXPANSION AREAS RIVERSIDE HOMES LH Q Madrid # 52 @~ 2019 LAND ACQUISITION AND COMMERCIALIZATION - A 80% Multifamily product with S 90% Fir

  26. Slide 26: Build-to-sell: Target client with low interest rate sensitivity

    > 4. ATTRACTIVE BUSINESS MODEL WITH BTS AND BTR. Build-to-sell: Target client with low interest rate sensitivity DESPITE HIGHER INTEREST RATES, NEINOR’S CLIENTS CONTINUE TO SHOW A HEALTHY EFFORT RATE > Neinor's house price to income currently stands at 5.1x vs national average of 8.3x (includes peop

  27. Slide 27: Build-to-sell pipeline by region

    NORTH: 1,686# 21% EAST: 1,747# 21% CENTRE: 2,413# 30% 5% SOUTH WEST: 430# LEVANTE: 379# 5% SOUTH EAST: 1,488# 18% 27

  28. Slide 28: Build-to-sell: Proven track record

    > 4. ATTRACTIVE BUSINESS MODEL WITH BTS AND BTR. Builc-to-sell: Proven track record PROVEN TRACK RECORD WITH +8,000 DELIVERED ACROSS THE TOP-6 REGIONS OF SPAIN EXAMPLES OF DEVELOPMENT PROJECTS DELIVERED BY NEINOR Alquerias Homes Atria Homes Bolueta Homes Marina Badalona —ae - 9 Barcelona —= tt 42 28

  29. Slide 29: Build-to-sell: Proven track record

    > 4. ATTRACTIVE BUSINESS MODEL WITH BTS AND BTR. Builc-to-sell: Proven track record PROVEN TRACK RECORD WITH +8,000 DELIVERED ACROSS THE TOP-6 REGIONS OF SPAIN EXAMPLES OF DEVELOPMENT PROJECTS DELIVERED BY NEINOR Palacio Homes Teatinos Homes 29

  30. Slide 30: Build-to-sell: Illustrative P&L

    > 4. ATTRACTIVE BUSINESS MODEL WITH BTS AND BTR. Builc-to-sell: Illustrative P&L ss HIGH VISIBILITY ON CASH FLOWS AS WE ONLY START CONSTRUCTION WITH +30% PRE-SALES > High support by Spanish commercial banks as Neinor produces the primest mortgages in Spain ILLUSTRATIVE P&L OF STANDARD DEVELOPMENT To

  31. Slide 31: Build-to-sell: Illustrative cash cycle

    > 4. ATTRACTIVE BUSINESS MODEL WITH BTS AND BTR. Build-to-sell: Illustrative cash cycle ss Neinor HIGH VISIBILITY ON CASH FLOWS AS WE ONLY START CONSTRUCTION WITH +30% PRE-SALES r > Business model based on acquiring land, marketing, designing, constructing and selling the development to clients |S D

  32. Slide 32: Build-to-rent: Premium product and target client

    > 4. ATTRACTIVE BUSINESS MODEL WITH BTS AND BTR. Builc-to-rent: Premium product and target client ss HACIENDA HOMES WAS THE FIRST RENTAL SMART BUILDING IN SPAIN HACIENDA HOMES Q Malaga #146 @e~ 2021 Fi) }=PRODUCT AND TARGET CLIENT S 100% multifamily product oS Couples with €3k salaries 4 Average siz

  33. Slide 33: Operating, WIP, launched

    OPERATING LAUNCHED WIP HMB2 33

  34. Slide 34: Build-to-rent: Rental portfolio

    > 4. ATTRACTIVE BUSINESS MODEL WITH BTS AND BTR. Build-to-rent: Rental portfolio ss Neinor HIGH RAMP-UP VISIBILITY TOWARDS C4,600#, CE48MNGRI AND POTENTIAL CE1BN GAV EXAMPLES OF DEVELOPMENT PROJECTS DELIVERED BY NEINOR Sky Homes Europa Homes Dual Homes 34

  35. Slide 35: Build-to-rent: Rental portfolio

    > 4. ATTRACTIVE BUSINESS MODEL WITH BTS AND BTR. Build-to-rent: Rental portfolio ss Neinor HIGH RAMP-UP VISIBILITY TOWARDS C4,600#, CE48MNGRI AND POTENTIAL CE1BN GAV EXAMPLES OF DEVELOPMENT PROJECTS DELIVERED BY NEINOR Sevilla Homes Montesa Homes Olarizu Homes 35

  36. Slide 36: Rental income to EBITDA and yield

    Gross Rental Leakage Net Rental SG&A EBITDA Gross Yield Target Market Higher rents/ Valuation Income Income YoC Compression Yield Lower Yields Upside 36

  37. Slide 37: A Compelling Value Proposition

    Neinor __ Attractive shareholder remuneration with €125mn approved for 2022 (14% yield) — ~ = — 3 » pane ee & = ry Citizens: 2)500/00 arene ani “QO: Sunshine hours/year: 2/800 Q World's healthiest city to live? VALENCIA 1. As of 13/06/2022. 2. Monkey.co

  38. Slide 38: Neinor Homes history at a glance

    5. A COMPELLING VALUE PROPOSITION. Neinor Homes history at a glance IVIAIN CORPORATE MILESTONES AND THREE INVESTMENT PHASES SINCE 2015 PRIVATE COMPANY PUBLIC COMPANY STAGE ND BANK AND INDUSTRIALIZATION PROCESS STAGE 2: DEVELOPMENT RAMP-UP STAGE 3: RENTAL EXPANSION 2015 2016 2017 2018 2019 2020 2021

  39. Slide 39: Attractive entry point at significant discount

    <q 5. A COMPELLING VALUE PROPOSITION. Attractive entry point at significant discount to direct investments ss WITHIN REAL ESTATE, LISTED COMPANIES PROVIDE THE MOST ATTRACTIVE OPPORTUNITY > Neinor is trading at discount to Book Value and NAV despite strong profit and NAV growth expectations LISTED RE

  40. Slide 40: Value creation underpinned by Rental Platform

    <q 5. A COMPELLING VALUE PROPOSITION. Value creation underpinned by Rental Platform ss ACCELERATING RENTAL PLATFORM CRYSTALLIZATION AND SHAREHOLDER REMUNERATION > NEINOR VALUATION BRIDGE DEC. 24 1350 -539 Net debt corporate debt BIS GAV Net Debt & WC- BTS €38mn GRI includes the Stabilized for entire

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