Company Presentation Consus Real Estate AG July 2019 Consus - PowerPoint PPT Presentation

Company Presentation Consus Real Estate AG July 2019

Consus’ Management Board A strong and proven management team Andreas Steyer » Over 25 years operational and leadership experience in German real estate companies CEO » Former CEO of publicly listed DEMIRE, expansion of buy-to-hold assets >€ 1bn » Previously at Deka Immobilien and Partner at Ernst & Young Real Estate and Arthur Andersen Real Estate » Over 25 years experience in the financial industry with 14 years at UBS (IB) Benjamin Lee CFO » Previously at Aggregate Holdings, the majority shareholder of Consus » 5 years of experience as board member and CFO of a publicly listed company Theo Gorens » Several years of experience in the financial sector in Amsterdam and Frankfurt CRO / Deputy-CFO » Formerly at ABN Amro / Fortis and Bethmann Bank » Responsibilities at SSN included Finance, Business Development, Debt Advisory, Risk Management 2 Consus Real Estate AG

Titel I. Overview Consus Real Estate AG Vitopia Kampus Kaiserlei in Frankfurt/Offenbach forward sold to institutional investor for a GDV of €60m

I. Consus - the leading real estate developer in Germany Unique business model Key financials + KPIs The leading German residential developer, with focus on top 9 German cities ▶ €9.6bn GDV (1) €2.7bn €450m Strong market share in undersupplied German residential real estate market development ▶ GDV in forward sales Targeted Adjusted portfolio across with focus on affordability volume contracted + EBITDA (3) 2020 64 projects LOI (2) Forward sale-oriented business model de-risks development, financing and exit ▶ Fully integrated real estate platform covering the entire value chain ▶ ~20% 3.0x €3.07bn Headquartered in Berlin with ~780 employees currently focused on Targeted Medium-term Targeted Medium-term ▶ construction and sales Adjusted EBITDA Market GAV (4) Net Debt / Adjusted margin EBITDA PF FY2018 Revenues of €656m and Adjusted EBITDA of €253m ▶ Development portfolio breakdown Diversified across the top 9 cities in Germany Focus on Forward Sales Breakdown of the development portfolio by city (5) Development portfolio breakdown Munich Dresden Forward Sold (2) 5% Condominiums Dusseldorf 4% 26% Hamburg 20% 4% 20% Cologne GDV: 11% €9.6bn (1) 64 projects in total (1) Stuttgart Upfront sale/LOI signed Leipzig 18% 18% 13% Target Forward Sales 35% Frankfurt Berlin 13% 12% (1) On a consolidated basis as of 31 March 2019; Includes three development projects of which the acquisition is signed but not yet closed; (2) As of 31 May 2019, incl. LOIs of €68m, LOIs under negotiation of €659m and pre-sold condominiums of €160m; (3) EBITDA pre Purchase Price Allocation (PPA) and pre one-off costs; (4) Based on Market GAV of the Consus property assets on 100% basis as estimated by management as of 31/03/2019 (5) Dortmund is included in Düsseldorf, Erfurt is included in Leipzig; Böblingen, Karlsruhe and Mannheim are included in Stuttgart, Bayreuth and Passau are included in Munich, Offenbach is included in Frankfurt am Main 4 Consus Real Estate AG

I. Key investment highlights I. Exposure to Germany’s favorable macro conditions in highly attractive locations Exposure to Germany’s favorable macro conditions in highly attractive locations II. Unique and flexible business model Unique and flexible business model III. Robust development portfolio Robust development portfolio IV. Strong operational capabilities and track record Strong operational capabilities and track record V. Solid cash flow generation model and performance visibility Solid cash flow generation model and performance visibility VI. Experienced management team Experienced management team 5 Consus Real Estate AG

Titel II. Company highlights Consus Real Estate AG Cologneo I Corpus in Cologne forward sold to institutional investor for a GDV of €241m

II. Exposure to Germany’s favourable macro conditions in highly attractive locations in the strongest European economy Germany as “safe haven” economy Largest housing market in Europe Strong and consistent rental price growth GDP CAGR 2008-2018 Rental-price index GDP growth Forecast of total population per country in 2020 (m) 6,0% 110 Forecast of total households per country in 2020 (m) 4,0% 1,3% 82,5 1,3% 100 2,0% 67,3 65,7 1.0% 0,9% 0,0% 90 46,5 41,5 ‐2,0% 30,4 28,1 ‐4,0% 0,4% No decline in rental prices 80 18,9 18,2 in over 20 years across the ‐6,0% 8,0 economic cycle 70 ‐8,0% 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2018 Germany UK France Spain EU (1) Germany UK France Spain EU (1) Source: EIU Source: BMI Source: Destatis, EIU Lowest “risk free” rate in Europe Strong rental culture; low home ownership Rent affordability remains healthy 10-year government yield Mar-2019 Home ownership rate (%) (2017) Share of rent in disposable household income as % of total (2017) Government debt (2017, % of GDP) 77,1% 32,1% 69,3% 64% 87% 98% 98% 82% 65,0% 29,6% 64,4% 1,1% 1,1% 0,9% 51,4% 24,7% 22,6% 20,6% 0,4% 0,0% Germany UK France Spain EU (1) (1) (2) Germany UK France Spain EU Germany UK France Spain EU Source: EIU, Bloomberg as of 21 Mar 2019 Source: Eurostat Source: Eurostat (1) Average based on 28 EU member countries; (2) Average based on 25 EU member countries excluding Estonia, Luxembourg and Malta 7 Consus Real Estate AG

II. Exposure to Germany’s favourable macro conditions Excellent business opportunity for residential developers „We want to build 1.5 million new apartments and homes in the next 4 years. This is absolutely necessary“ Source: German Chancellor Angela Merkel, Die Bundesregierung, May 26, 2018 German Chancellor Angela Merkel Demand of 1.5m units with c. 300bn GDV (1) in next 4 years Supply mismatch led to rising rents and declining vacancies (2) …and provides market opportunities for developers (4) » Residential market is highly undersupplied due to population growth » Since 2015 apartment prices exceed construction costs for the first and low development activities time since reunification in Germany making it more attractive for developers » With c. 285,000 completed apartments in 2017, supply is still below » Due to reluctance against homeownership in Germany, property prices the annual requirement of c. 400,000 apartments (3) have stagnated/partly decreased for almost two decades (1995-2015) » Development sector is highly fragmented in Germany, with limited large scale companies (1) Based on estimated average price of €200k per unit (2) Empirica, CBRE; (3) Welt.de – Real Estate; (4) Statistisches Bundesamt, Savills, UBS Research, Destatis/Empirica 8 Consus Real Estate AG

II. Unique and flexible business model Core business model consists of forward sales to institutional purchasers II. III. IV. I. Post building Plan Build Sell Buy permit, construction phase takes Plots & Deliver Project Forward ~24-36months I II. III. IV. Construction begins after Finalize the project and obtain Prior to starting construction, completion of the forward-sale Consus acquires land plots and building permits for residential projects are forward-sold to and is paid on the basis of pre- lays out overall project structure developments with commercial agreed milestones over the institutional purchasers potential construction period Business model focused on Forward Sales – existing project portfolio enables dynamic portfolio management Development portfolio  Forward sales model targeting a cash flow positive profile as soon as the first payment is received 80% with forward sales approach  Flexibility to optimise development pipeline based on local demand GDV: €9.6bn (1)  Reduced requirement for capital due to early capital recycling  Minimize “lock-in” period of equity investment given forward sale business model (1) On a consolidated basis as of 31 March 2019; Includes three development projects of which the acquisition is signed but not yet closed 9 Consus Real Estate AG

II. Unique and flexible business model Condominiums sold to retail purchasers complement the core business model II. III. IV. I. Post building Plan Build permit, Buy Sell construction phase takes Plots & Deliver Project ~24-36months I II. III. IV. Significant amount of construction Condominium units sold to retail Consus acquires land plots and Finalize the project and obtain cost covered by regular payments purchasers with higher margins lays out overall project structure building permits with final instalment received at compared to forward sales completion Business model for Condominium projects Development portfolio  Complements the core business model as condominiums are often a part of larger quartier developments 20% with condominium  Pre-defined payment schedule with typical 30% payment upfront and pre-agreed payment sales milestones GDV: approach €9.6bn (1)  Favourable legal framework with the customer liable in full for the scheduled payments unless incurred during personal bankruptcy  Majority of construction costs can be covered by financing secured on the customer’s payments  Focused on higher value properties where materially higher pricing obtained through to retail sales (1) On a consolidated basis as of 31 March 2019; Includes three development projects of which the acquisition is signed but not yet closed 10 Consus Real Estate AG