Preliminary FY 2019 results presentation including Coronavirus - PowerPoint PPT Presentation

Preliminary FY 2019 results presentation including Coronavirus update 23 April 2020

Agenda I Financial and Operational Highlights 2019 Financial and Operational Highlights 2019 4 II II Coronavirus update Coronavirus update 8 III III ADO / ADLER transaction ADO / ADLER transaction 11 11 IV IV Development Portfolio Update Development Portfolio Update 14 14 V Financial Results 2019 Financial Results 2019 26 26 VI VI Outlook Outlook 34 34 VII VII Appendix Appendix 37 37 2 Consus Real Estate AG

Consus’ Management Board A strong and proven management team Theo Gorens Jens Jäpel Benjamin Lee Andreas Steyer CRO / Deputy-CFO CFO CDO (since March 20, 2020) CEO » Several years of experience in » 10 years in various management » Over 25 years operational and » Over 25 years experience in the financial sector in positions for the national and leadership experience in the financial industry with 14 Amsterdam and Frankfurt international development German real estate companies years at UBS (IB) business of ECE » Formerly at ABN Amro / Fortis » Former CEO of publicly listed » Previously at Aggregate Projektmanagement GmbH & Co. and Bethmann Bank DEMIRE, expansion of buy-to- Holdings, the majority KG with overall responsibility for hold assets >€ 1bn shareholder of Consus » Responsibilities at SSN the national and international included Finance, Business development business » Previously at Deka Immobilien » 5 years of experience as Development, Debt Advisory, and Partner at Ernst & Young board member and CFO of a » CEO of Consus RE and Consus Risk Management Real Estate and Arthur publicly listed company Swiss Finance (formerly CG Gruppe Andersen Real Estate » CFO of Consus RE and Consus and SSN Group) Swiss Finance (formerly CG Gruppe and SSN Group) 3 Consus Real Estate AG

Titel I. Financial and Operational Highlights 2019 Consus Real Estate AG VAI Campus in Stuttgart with a GDV of €1,127m the largest development project of Consus

I. FY 2019 Highlights – Consus delivering on its strategy FY 19 Highlights FY 19 Highlights Coronavirus ADO / Adler transaction Portfolio Update Results FY 19 Outlook Appendix Financial Highlights  Total revenue of € 671.0 million (FY 2018: € 485.5 million), overall performance of € 863.8 million (FY 2018 : € 466.5 million) – Growth of 38% and 85% respectively reflecting ramp-up of business and acquisition of SSN  Adjusted EBITDA of € 344.4 million (PF FY 2018: € 253.2 million, FY 2018 : € 197.2 million) as business expanded – Adjusted EBITDA margin of 51%  Reported Net Income of € (5) million (FY 2018: € (3) million)  Net debt at € 2,699.9 million (FY 2018: € 2,104 million) – Increase reflects funding of business growth through project acquisitions, inventory build and contract assets  Net debt / Adjusted EBITDA at 7.8x (FY 2018 pro forma for bond issuance : 8.7x; H1 2019 : 7.8x) – Increase from Q3 based on timing differences of inclusion on upfront sales in LTM, as previously noted  Average run-rate interest rate reduced 0.1% to 7.8%  These results are preliminary and unaudited. The preparation of the financial statements has been finalised; however, due to the impact of remote working requirements resulting from the Coronavirus, delivery of the audit opinion is expected to occur shortly. Continued strong growth in the business 5 Consus Real Estate AG

I. FY 2019 Highlights – Consus delivering on its strategy FY 19 Highlights FY 19 Highlights Coronavirus ADO / Adler transaction Portfolio Update Results FY 19 Outlook Appendix Portfolio Highlights and recent developments Portfolio  Continued portfolio growth: GDV increases to € 12.3 billion from € 9.6 billion as at 31 December 2018  Market Gross Asset Value increased to € 3.62 billion as at 31 December 2019 (FY 2018: € 2.95 billion)  Forward Sales volume at € 2.8 billion (FY 2018: € 2.5 billion)  Upfront sales : LOI signed for Hamburg Holsten with ADO for € 320 million in Q1 2020 Recent events  Jens Jäpel joined Consus group as Chief Development Officer  Full integration of CG Gruppe, now led by Consus CDO and name changed to Consus RE  Strategic Cooperation with ADLER progressing well 6 Consus Real Estate AG

I. FY 2019 Highlights – Consus delivering on its strategy FY 19 Highlights FY 19 Highlights Coronavirus ADO / Adler transaction Portfolio Update Results FY 19 Outlook Appendix Coronavirus update and outlook Coronavirus update  All construction sites operating and existing forward sales largely unaffected  Certain upfront sales and new forward sales are currently delayed  Consus believes that German residential real estate will prove to be one of the most robust asset classes  Cash in group of over € 190m, and undrawn credit lines of over € 200m Outlook  Adjusted EBITDA of c. € 450m in 2020, adjusted EBITDA margin of c. 20% and target Net Debt / adjusted EBITDA of ~ 3x in medium term, as previously communicated  As at reporting date, Consus does not assume that Coronavirus pandemic will have material impact on Group’s business  Significant forward and upfront sales planned for 2020 7 Consus Real Estate AG

Titel II. Coronavirus update Consus Real Estate AG Cologneo I Corpus in Cologne forward sold to institutional investor with a GDV of €241m

II. Coronavirus – Operational update FY 19 Highlights Coronavirus Coronavirus ADO / Adler transaction Portfolio Update Results FY 19 Outlook Appendix Existing projects New sales Construction : Forward sales to institutions: • • All construction sites are operating; with the initial disruption of reduced Currently on hold as institutions evaluate implications of Coronavirus availability of labour and certain materials now resolved pandemic • • No material shortages and significant disruption are expected going forward Demand for long-life high-quality yielding assets in low yield environment • The impact in the short-term on the construction operations is therefore a not expected to materially change • limited rise in costs and limited delays to completion. Consus has not received any indication of this in its ongoing discussions • In the medium term, Consus expects to benefit from the changed market conditions, with construction cost pressures reduced and costs potentially Forward sales of condominiums: • falling, and residential supply favourably impacted Limited individual activity in current environment • Underlying demand in top 9 cities expected to drive volume rebound when Personnel: Coronavirus pandemic is controlled • • Office based personnel are working from home The restrictions put in place as part of the pandemic have highlighted the • No issues with construction labour availability despite closures of borders in importance of living space to individuals Eastern Europe Upfront sales: • Prepayments: Upfront sales are less impacted • • Institutional and individual customers are making payments as per the Expressions of interest continue to be received at good price levels • contract Timing on closing of transactions is uncertain Forward sales : • Actions taken Existing forward sales are continuing to operate • Consus does not expect to pay any penalties from late delivery due to the Coronavirus pandemic • • Cost cutting programme based on the full integration of all operations General contractor agreements may be reopened; potential for both sides to • negotiate All non-essential expenditure and recruitment postponed • No project acquisitions and portfolio reductions to reduce leverage 9 Consus Real Estate AG

II. Coronavirus – Liquidity overview FY 19 Highlights Coronavirus Coronavirus ADO / Adler transaction Portfolio Update Results FY 19 Outlook Appendix Liquidity status and actions  Current cash throughout the group of over € 190m  Undrawn project credit lines of over € 200m  Projects subject to forward sale agreements – Funded from prepayments – Limited working capital requirements  Projects for condominiums – Construction loans  Consus is currently evaluating various additional group financing options – Includes loans from the German state-owned development bank KFW and German Government guarantees via the German- Wirtschaftsstabilisierungsfonds – Consus aims to be in a position to access these financing options if required – Other payment deferrals utilised as appropriate  Medium term, material proceeds expected from upfront sales Operating cashflows largely unchanged with cashflows from certain new sales delayed 10 Consus Real Estate AG

Titel III. ADO / Adler transaction Consus Real Estate AG Ostforum project in Leipzig forward sold to institutional investor with a GDV of €67m