Q1 Results Investor Presentation 2017.06.29 www.echo-pp.com
2 Disclaimer This document has been prepared and issued by and is the sole responsibility of the management of Echo Polska Properties N.V. (the “Company” or “EPP”) and its subsidiaries. No information made available in connection with this presentation may be passed on, copied, reproduced, in whole or in part, or otherwise disseminated, directly or indirectly, to any other person. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract commitment or investment decision in relation thereto nor does it constitute a recommendation regarding the securities of the Company. Investors and prospective investors in securities of the Company are required to make their own independent investigation and appraisal of the business and financial condition of the Company and the nature of the securities. This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements, beliefs or opinions, including statements with respect to the Company’s business, financial condition and results of operations. These statements, which contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect”, “forecast” and words of similar meaning, reflect the Directors’ beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Past performance of the Company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this presentation and the Company expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in this presentation is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. The information on which these statements has been based has not been reviewed or reported by EPP’s auditors. This document speaks as of the date hereof. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness, accuracy or fairness. The Company, its advisers and each of their respective members, directors, officers and employees are under no obligation to update or keep current the information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice. No representation or warranty, express or implied, is given by the Company, or any of its subsidiary undertakings or affiliates or directors, officers, Java Capital or any of its directors or employees or any other person as to the fairness, accuracy or completeness of the information or opinions contained in this presentation and no liability whatsoever for any loss howsoever arising from any use of this presentation or its contents otherwise arising in connection therewith is accepted by any such person in relation to such information. Q1 Results Investor Presentation
3 Agenda: Highlights Q1 Financial Results Property Operations Development Projects Acquisitions Growth Prospects Q1 Results Investor Presentation
4 Highlights Integration team of 10 people hired EPP to continue its focus to to assist in the integration of all new become a pure retail property fund assets. by 2019. EPP has won three prestigious awards. EPP successfully raised € 150 M. of new equity which was oversubscribed. Q1 Results Investor Presentation
5 Q1 Financial Results Q1 Results Investor Presentation
6 Financials at a glance € 16.0 million Distributable Earnings (for the 3 month period to 31 Mar 2017) € 679 million Total NAV 1 € 1.16 NAV per share € 1 511 million Total assets € 926 million 3 Market capitalisation Cost of debt 1.87% 52.5% 2 LTV 1 NAV excluding deferred tax 2 Value includes the investment in joint venture – Towarowa and unrestricted cash 3 As of 21 June 2017 with EUR/ZAR rate: 14.61 Q1 Results Investor Presentation
7 Summary statement of comprehensive income Actual for the Budget for the % quarter ended quarter ended Variance EUR million 31 Mar 2017 31 Mar 2017 Net property income 21.7 21.7 0.2% Other income / (expenses) 0.4 0.3 25.0% Administrative expenses and corporate costs (1.8) (1.7) 7.0% Profit from operations 20.3 20.3 0.0% Finance income / (expenses) (3.8) (3.9) -2.6% Current income taxes (0.7) (1.1) -54.5% Profit from JV 0.2 0.1 20.8% Distributable income attributable to shareholders 16.0 15.4 3.2% Distributable earnings for the period 1 Jan to 31 Mar 2017 16.0 15.4 3.2% Q1 Results Investor Presentation
8 Statement of financial position EUR million 31 Mar 2017 31 Dec 2016 Number of shares in issue ASSETS Investment properties 1 367 1 359 586 051 293 1 Investment in JV 56 54 Other financial assets 19 19 Trade, VAT and other receivables 17 33 Cash and restricted cash 51 44 Net asset value per share Total assets 1 511 1 509 € 1.16 2 EQUITY AND LIABILITIES Share capital and premium 570 570 Accumulated profit /(loss) 57 54 Deferred tax liability 52 59 Loan to value (LTV) Bank borrowings 779 769 VAT borrowings - 26 52.5% 3 Trade and other liabilities 53 31 Total equity and liabilities 1 511 1 509 1 As of March 31 2017 2 NAV excluding deferred tax 3 Value includes the investment in joint venture – Towarowa and unrestricted cash Q1 Results Investor Presentation
9 Debt summary Net LTV Average maturity 52.5% 4.8years Hedging level 1 Average cost of debt 99% 1.87% 1 Current level of hedging with ROFO bank debt and Oxygen hedged in Q2 2017 Q1 Results Investor Presentation
10 Property Operations Q1 Results Investor Presentation
11 Portfolio snapshot as at 31 March 2017 Total no. of projects Retail projects Office projects 10* 9 19 Development JV projects Total portfolio value Cities in Poland € 1.5 BILLION 14 2 *Two projects in Bełchatów (Olimpia and Echo) are now counted as one as they are located in direct proximity Q1 Results Investor Presentation
RETAIL KEY FACTS – Q1 2017 12 4 . 6% 7 . 5% 1 . 26% 302 818 FOOTFALL SALES GLA sqm VACANCY Q1 2017 Q1 2017 Q1 2017 + 6,6% Q1 2017 LFL WALT by GLA 12. 7% 16. 8% 845 6 . 13 5 . 42 Number RTS* OCR* of tenants Q1 2017 Q1 2017 WALT by NOI *Rent to Sales *Occupany Cost Ratio Q1 Results Investor Presentation
OFFICE KEY FACTS – Q1 2017 13 3. 0% 176 207 112 VACANCY Number Q1 2017 GLA sqm of tenants 4.3% on 31 Dec. 2016 3.91 4.17 WALT WALT by NOI by GLA Q1 Results Investor Presentation
14 Development Projects Q1 Results Investor Presentation
15 Towarowa • One of the most spectacular urban retail projects in Europe and the biggest in Poland • Will be a diverse urban complex encompassing the first modern multifunctional and the biggest shopping centre in Warsaw, new attractive public areas, art and cultural space and high quality apartments • Located in the fast growing Wola district – new city centre of Warsaw and next to arterial roads passing Estimated cost at development ( € million; land 420 acquisition included) through Warsaw Estimated NOI on completion ( € million) 33.8 • During rush hour the property is passed by approx. Estimated yield on cost c. 8% 6,000 vehicles per hour Estimated valuation yield on completion c. 5% EPP capital uplift ( € million) c.180 • Acquisition of land completed for € 78 million • Project under development scheduled for completion CATCHMENT AREA Drive time 3 000 2020/2021 Population (000s) • Strong interest from all anchor tenants active in Poland 2 000 1 512 1 002 1 000 702 0 0 – 20 20 – 40 40 – 60 Total minutes minutes minutes Q1 Results Investor Presentation
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