Neinor Homes SA · BME:HOME
Neinor Homes SA — H1 2022 Earnings Presentation
33 slides from Neinor Homes SA's earnings presentation, July 2022
Slide 1: 1H22 Results
1H22 RESULTS FULLY ON TRACK TO MEET FY22 GUIDANCE REGIONAL £36 ay | TOPRATED (vy TOPRATED (Y/Y ba a
Slide 2: Disclaimer
pts HOMES DISCLAIMER This Presentation has been prepared by Neinor Homes, S.A (“Neinor’) for information purposes only and it is not regulated information or information which has been subject to prior registration or contol by the Spanish Securities Market Commission. “Presentation” means this docu
Slide 3: Agenda
Neinor HOM ES He 3 L A APPENDIX i) lh, FINANCIAL \ PERFORMANCE REVIEW b BUSSINES PERFORMANCE REVIEW © qH22 RESULTS: P RESULTS: KEY bey TAKEAWAYS HIGHLIGHTS
Slide 4: 1H22 Results: Key Highlights
1H22 RESULTS: KEY HIGHLIGHTS
Slide 5: 1H22 Results: Key Highlights
> 1H22 RESULTS: KEY HIGHLIGHTS gts NAVIGATING MACRO UNCERTAINTY WITH A UNIQUE STRATEGY AND STRONG Neinor RESIDENTIAL FUNDAMENTALS Homes SOLID 1H RESULTS with 1,178# DELIVERIES, €389mn REVENUES, €60mn ADJ. EBITDA, €39mn ADJ. NET INCOME > ATTRACTIVE SHAREHOLDER REMUNERATION with €120mn' (13% yield) AL
Slide 6: 1H22 Results: Key Highlights - Activity Overview
> Te DEVELOPMENT ACTIVITY c12,100# 5,919# ORDERBOOK 1H22 RESULTS: KEY HIGHLIGHTS NAVIGATING MACRO UNCERTAINTY WITH A UNIQUE STRATEGY AND STRONG RESIDENTIAL FUNDAMENTALS Bind RENTAL PLATFORM O# c3,500# LAND LAND ACQUISITIONS BANK 3,985# 2,944 WIP & FP BTR PIPELINE4 2,636# (€707mn) 1,178# 97% DELIVERI
Slide 7: Business Performance Review
BUSSINES PERFORMANCE B. REVIEW ALMENARA HOMES y Delivery: 122 — & onits 17 9 Region: SouthEast
Slide 8: Net Monthly Absorption
JAN-20 MAR-20 MAY-20 JUL-20 2.8% SEP-20 NOV-20 JAN-21 MAR-21 MAY-21 JUL-21 SEP-21 NOV-21 JAN-22 MAR-22 MAY-22 6.3% 8
Slide 9: Business Performance Review: Development Activity
< > BUSINESS PERFORMANCE REVIEW: DEVELOPMENT ACTIVITY PROVEN CAPACITY TO READ INVESTMENT CYCLE TOGETHER WITH HIGHLY DISCIPLINED APPROACH HIGHLY DISCIPLINED INVESTMENT STRATEGY TOTAL LAND BANK ©12,500# c13,000# — c11,000# c9,000# c16,800# — c15,600# rd ed €650mn Zz 8 | uv 22% (10,500 UNITS) By ---LL
Slide 10: Business Performance Review: Rental Platform
BUSINESS PERFORMANCE REVIEW: RENTAL PLATFORM RAMPING UP TOWARDS c4,600#, c€48MIN GRI AND POTENTIAL c€1BN GAV Neinor NORTH: 278# Total: 3,645#! 8% GRI: +€40mn? Operating: 542# (15% oy IP! 1,669# (46% 022 EAST: 818# Operating: 115# CENTRE: 1,605# aoa Operating: 153# IP: 8454 IP: 2134] SOUTH WEST: 235#
Slide 11: Business Performance Review: Rental Platform
<q BUSINESS PERFORMANCE REVIEW: RENTAL PLATFORM gts RAMPING UP TOWARDS c4,600#, cE48MN GRI AND POTENTIAL c€1BN GAV P EVOLUTION OF PASSING GRI' AND OCCUPANCY Rental activity gay 96% 96% > Sardes Portfolio: Occupancy at 97%2 ggy% 89% (+26pp YoY) - already above pre-covid y 93% levels. YTD c7,000 sqm l
Slide 12: Financial Performance Review
FINANCIAL PERFORMANCE REVIEW BE te AUN 5 tT CANAVERAL HOMES) | Ny g Delivery: 122 @ units: 207 9 Region: Centre E
Slide 13: Financial Performance Review
FINANCIAL PERFORMANCE REVIEW sts FULLY ON TRACK TO MEET FY22 GUIDANCE OF €140-160MN EBITDA Neinor p> em war 221 TEM rm vor (%) © Key Financials Revenues 326.6 589.4 Ez 978.9 19% . > Revenues: €389mn (+19% YoY) due to Gross profit ais 153.8 252.4 8% stronger development revenues (+21% YoY) - and lowe
Slide 14: Financial Performance Review: Segment Results
FINANCIAL PERFORMANCE REVIEW FULLY ON TRACK TO MEET FY22 GUIDANCE OF €140-160MN EBITDA > (emn) teat 2h21 Tm ov) Development Deliveries (#)" 891 1,843 3,021 32% ASP (€K/#) 350 312 315 8% Devel. revenues? 311.9 575.0 953.0 21% Other revenues? 13.7 13.1 22.5 -32% Total revenues 325.6 588.1 975.5 19% Gr
Slide 15: 1H22 Results: Key Takeaways
1H22 RESULTS: KEY TAKEAWAYS RIBERA HOMES § Delivery: 4021 @ units: 122 9 Region: North
Slide 16: From Oversupply to Undersupply
> 1H22 RESULTS: KEY TAKEAWAYS sts FROM OVERSUPPLY TO UNDERSUPPLY: c90% REDUCTION IN SUPPLY PER CAPITA Neinor HOMES > In e007 Spain was building 15# for each 1,000 inhabitants vs 2# > ..and is one of the markets with the lowest levels of supply per capita. in 2021 (90%)... INTERNATIONAL COMPARISON OF
Slide 17: From Overleveraged to Underleveraged
> 1H22 RESULTS: KEY TAKEAWAYS AND FROM OVERLEVERAGED TO UNDERLEVERAGED: HOUSEHOLDS AND BANKS ARE BOTH IN A MUCH STRONGER POSITION > The loan-to-deposits ratio has halved since 2007 (88% in 2021 vs 167% in 2007) while households have strengthened their balance sheets by 23pp SPANISH HOUSEHOLD DEBT VS
Slide 18: German House Prices Nearly Doubled Since 2007
1H22 RESULTS: KEY TAKEAWAYS > ARE STILL LOWER GERMAN HOUSE PRICES HAVE NEARLY DOUBLED SINCE 2007...\WHILE SPAIN’S as Neinor HOMES > Restrictive lending policies by Spanish banks (70% LTV after taxes) have kept house prices “under control” and pushed low equity buyers to the rental market. 210 HOUSE
Slide 19: Rental Market Share by Country
49% 35% 36% 34% 28% 24% 20% 15% Spain Italy Unite d Kingdom France Germany EU 2001 2008 2019 2019 19
Slide 20: Navigating Macro Uncertainty with a Unique Strategy
NAVIGATING MACRO UNCERTAINTY WITH A UNIQUE STRATEGY AND STRONG Neinor HOMES > 1H22 RESULTS: KEY TAKEAWAYS gts RESIDENTIAL FUNDAMENTALS RESIDENTIAL FUNDAMENTALS have never been STRONGER, and Spain is perceived as a “SAFE HAVEN” worldwide > Deeply UNDERSUPPLIED market, LOW LEVERAGE by households, bank
Slide 21: Appendix
Slide 22: -4.3 1.1 66.7 1H21 1H22
2 -4.3 1.1 9 66.7 1 14 378 311 1H21 1H22 22
Slide 23: Balance Sheet
€944MN €913MN €673MN €562MN €349MN €348MN €1,726MN €1,584MN €241MN €239MN FY21 1H22 NON-CURRENT ASSETS CURRENT ASSETS NON-CURRENT LIABILITIES CURRENT LIABILITIES EQUITY 23
Slide 24: Cash Flow Statement
APPENDIX CASH FLOW STATEMENT (€mn, unless stated otherwise) 1H21 Change (%) EBT 56.6 -16% Adjustments 0.6 NLM. CF from operating activities 57.2 17% Working capital change 50.7 NM. Change in inventories -13.0 NM. Book value sold 235.7 23% Land acquisition 124.5 87% Capex & others -124.3 17% Other WC
Slide 25: 1H21 1H22 1H21 1H22
31% 22% 25% 19% 1H21 1H22 1H21 1H22 20.0 3.0 2.2 6.1 1H21 1H22 1H21 1H22 25
Slide 26: 1H Asset Appraisal: GAV Bridge
APPENDIX 1H 22 ASSET APPRAISAL > 1H22 GAV BRIDGE 43 GAV FY21 LfL Change 143 Capex 10 Investment -369 Sales Other 1,735 GAV 1H22 26
Slide 27: 1H Asset Appraisal: GAV to NAV Bridge
APPENDIX 1H 22 ASSET APPRAISAL > 1H22 GAV To NAV AND NNAV BRIDGE 1,698 1,196 GAV Inventory Cost 1. Excludes treasury shares position. 37 -326 Net Debt HMB -130 WC & Other (€17.17/SH') 1,279 NAV 95 -109 DTAs Taxes (€19.66/SH') 198 1,463 (€16.99/SH') 1,264 DTAs outside BS NNAV Adj. NNAV 27
Slide 28: Rental Portfolio: Operating
q APPENDIX RAMPING UP TOWARDS c4,600#, cE48MN GRI AND POTENTIAL c€1BN GAV Neinor hoMes OPERATING: 542# (16% Sardes Portfolio Portico Urquinaona Borrell a Units: [EE a Units: a Units: BZ 9 Region: SENET 9 Region: 2 9 Region: EE (mca: SERDEET ew. 700 scr SEeReIEY3, 200 scr] Alqueria Can Batlet Ozono a
Slide 29: Rental Portfolio: Operating
APPENDIX gts RAMPING UP TOWARDS c4,600#, c€48MN GRI AND POTENTIAL c€1BN GAV Neinor OPERATING: 542# (16% Hacienda & units: 9 Region: See)
Slide 30: Rental Portfolio: In Progress
< APPENDIX RAMPING UP TOWARDS c4,600#, cE48MN GRI AND POTENTIAL c€1BN GAV IP': 1,669# (48% a Units: AIR) 9 Region: [eine SSSY25, 400 sar} @ vnits: 9g Region: LidmelWWa 3,300 sqm @ nits: 146] 9g Region: a Units: EZ = Region: G&iney @ nits: 164] ] Region: 1 At the date of the presentation. 30
Slide 31: Rental Portfolio: In Progress
< APPENDIX gts RAMPING UP TOWARDS c4,600#, c€48MN GRI AND POTENTIAL c€1BN GAV Neinor IP!: 1,669# (48% Alovera a Units: EE a Units: a Units: 9 Region: SEY 9g Region: SNES) 9g Region: Sea) fre {rs ou: {re ca: EROS Olarizu a Units: 3] a Units: [EB a Units: [Ee gy Region: Saney 9 Region: [tia 9 Region:
Slide 32: Rental Portfolio
APPENDIX q RAMPING UP TOWARDS c4,600#, cE48MN GRI AND POTENTIAL c€1BN GAV Units: Units: Region: Region: m? GLA: m? GLA: Units: Units: Region: Region: m? GLA: m? GLA: 1. At the date of the presentation. 2. Lyra has 28 additional units under WIP through an adcon that is already under construction, 32
Slide 33: Video: ENG / ESP
- VIDEO: ENG / ESP