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DEVELOPMENT STRATEGY 2022 - 2027
DEVELOPMENT STRATEGY
2022 - 2027
We strive to become the leading Residential Real Estate Developer in the region through sustainable large-scale
residential projects.
Values
Leading developer in Romania
Mission Vision
INTEGRITY. We are honest and promise to always follow and respect the law, take the best decisions and do the right thing for our team, our clients, our company and business partners, so achieving mutual success.
TRANSPARENCY. We observe openness and transparency, equal treatment of all our investors and ethical business conduct.INNOVATE AND LEAD. We seek to be in the upfront of industry innovation, to motivate and thus inspiring all others.
RESPECT THE ENVIRONMENT AND BUILD SUSTAINABLY. We have a Commitment to Green. We apply and implement principles and technologies in order to achieve nZEB and BREEAM Excellent standards in our developments.
RESPONSIBILITY. We build the future for our clients. We are committed to always provide the most valuable propositions to our customers, since we are keen on finding a way to meet their needs and exceed their expectations.
MOTIVATION. We continuously strive to improve ourselves, to be beloved by our customers, trustworthy for our investors and respected by our competition.
Our mission is to positively impact people’s lives by developing communities with focus on sustainability,
efficiency and wellbeing. We generate added value to all our stakeholders through sound investments.
1991IMPACT is established, the first private real-estate company from the post-communist era, and the first company in the industry established by public subscription.
1995IMPACT launches on the Romanian market the concept of “residential compound” when starting the construction of the ALFA Compound in Bucharest (40 luxury dwellings).
1996The company is listed on the Bucharest Stock Exchange, whereby IMPACT becomes the first representative of the real estate development and construction sector listed on the Bucharest Stock Exchange.
1997IMPACT starts the residential development in the Northern area of the Capital – 10 residential compounds of over 1,000 villas to be completed by 2007.
2004IMPACT starts the works at the compounds RouaResidence in Ploiesti, Blume in Oradea andthe first class A office building in Baneasa
2002IMPACT starts the development of the BOREAL Compound in Constanta, of 151 villas, completed in 2010.
2006The Company’s shares are promoted to Category I of the Stock Exchange.
2007The company starts the largest residential project in District 1 of the Capital –GREENFIELD BANEASA RESIDENCE.
1990 2000
Continued ➔
IMPACT: 30 years of Excellence
2010IMPACT completes the first phase of the GREENFIELD BANEASA project with an area of 10 ha and 680 apartments and villas.
2015The company’s shares are promoted to the Premium category of the Bucharest Stock Exchange.
2016IMPACT completes phase two of the GREENFIELD BANEASA project SalcamilorEnsemble, with an area of 7 ha and 35 buildings.
2018IMPACT commences the project LUXURIA RESIDENCE, a compound of 630 apartments.
2020IMPACT completes the first two phases of the LUXURIA project with 500 apartments.
IMPACT starts the BOREAL PLUS project with 673 apartment and 18 villas.
2019IMPACT completes the third phase of GREENFIELD BANEASA project, the PlatanilorCompound, with an area of 10 ha and 39 buildings with 944 apartments.
2021IMPACT completes in Bucharest the final phase of LUXURIA project.
VEKTOR index 10 out of 10 as per ARIR
2010 2020
IMPACT starts GREENFIELD BANEASA PLAZA and the 4th phase of GREENFIELD BANEASA
IMPACT: 30 years of Excellence
Group structureImpact developer & contractor and subsidiaries
Greenfield Property Management SRL
Greenfield CopouResidence
Impact Finance & Developments
IMPACTDeveloper & Contractor
Greenfield CopouResidence Phase II
Greenwise Development
Bergamot Developments
ClearlineDevelopment &
Management
Actual Invest House
Bergamot Developments Phase II
99%
99%
99%
99%
100%
99%
99,99%
6,23%
100%
93,77%
1%
1%1%
1%
0,01%
ESG
30 years on the real estate market demonstrate the power to adapt to the globalization context and the continuousimprovement of the business. IMPACT Developer & Contractor is a company aligned to international business and corporatesocial responsibility standards.
We are focused on aligning to the global sustainability process, including handling Environmental, Social and Governancerisks–ESG risks.
Sustainability lies in the operating policy of IMPACT Group and our flagship projects are a living proof. Taking care of the 3 P's ofsustainability that have a strong impact over the business is a regular practice, since the Planet, the People and the Profit areessentialassets for IMPACT.
Environmental
Environmental
The nZEB standard is applicable to all new buildingslicensed after 1st of January 2021. The nZEB standardrequires a high energy performance, minimum use of fossilfuels and a high use of renewable energy. IMPACTDeveloper & Contractor is a company aligned tointernational business standards, being a Romanian realestate residential market leader for its sustainablepractices and built GREEN communities.
Specifications:▪ Minimum of 30% of the energy from renewable
sources;▪ The insulation envelope of the building is made with
the best materials;▪ Smart utilization of the energy supply;▪ Reduction of the use of fossil fuels, through
development of smart technical solutions;▪ Both protecting the environment and reducing
consumption costs.
nZEB BUILDINGS
Environmental
BREEAM is the most regarded international certification for the assessmentof sustainability performance of infrastructure projects, individual buildingsand communities. Excellent BREEAM level means a significantimprovement of the well-being of the inhabitants, while contributing to theprotection of natural resources. The efficiency of buildings meanssustainability, ecological solutions, quality of construction, efficiency ofconsumption and determines a high reduction of operating & utilities costs.
With Luxuria Residence as reference, we planned next developments withthe BREEAM Excellent certification as target:
▪ Architectural design which enhances the well-being of the residents;▪ Green terraces and facades that provide aesthetical advantages and
additional insulation of the building;▪ Use of strategical sustainability and integrated solutions of intelligent
design, starting from technical concept phase;▪ Selection of construction solutions is guided by use of sustainable and
healthy materials;▪ Improvement of buildings location and of windows and terraces
design, for a better use of natural daylight.
BREEAM CERTIFICATION
Social
IMPACT pays special attention to international businessstandards and corporate social responsibility standards. Asa result, sustainability is a focus point in the developmentof the Company's projects. We consider that it is our duty tomanage responsibly the impact of our operations onenvironment and people. Therefore, one of our long-termobjective is strong statement: to have a positive impact onsociety and environment while creating value for both theCompany and our clients.
In the last 30 years we were actively involved in varioussocial responsibility projects. Key contributions included:
▪ EDUCATION: Public School and Kindergarten Project,Educational activities
▪ PUBLIC TRANSPORT: Subsidized transport, STBstation
▪ QUALITY OF LIFE: Public functions, Urban mobility
Corporate governance
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Compliance
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IMPA T’ corporate culture is characterized by clear responsibilities, professionalism, mutual respect and trust. Lawfulconduct, total transparency and fair competition are integral to our business in order to achieve high performance, qualityoutputs and expected returns on investments.
▪ responsible, value-based management and monitoring focused on long-term success
▪ efficient cooperation between our Executive Management and Board of Directors
▪ protection of the interests of ourstakeholders
▪ full transparency in corporatecommunication
▪ sound ethics, appropriate risk management and law compliance.
At IMPACT, Corporate Governance stands for:
ISO CERTIFICATIONSCERTIFICATES
CFO CEO Sales Director
Giani Iulian Kacic Constantin b ș Ovidiu Grinici
Executive Management
▪ More than 21 years of experience in thefinancial and accounting sector, gained inmultinational companies;
▪ He started his career in the petroleumindustry and continued in the oil business,occupying for 15 years more managementpositions within the Rompetrol Group,including Finance Manager Rom Oil SA, CFORompetrol Rafinare, Project Manager SAPGroup Rompetrol, Group Cost Control BURafina & Industrail Services GroupRompetrol.
▪ With over 25 years of experience in projectdevelopment and asset management, hehas actively participated in the initiationand operation of dozens of projects, thussupporting the decision-making process forsustainable development and investmentsuccess;
▪ He attended the Polytechnic Institute ofBucharest and completed his studies atCornell and Boston Universities withspecializations in Strategic and FinancialManagement.
▪ 10 years of experience in Real Estate, thefree market in the residential segment;
▪ 5 years experience in Impact Developer &Contractor;
▪ Postgraduate economics studies, appliedsales courses and buyer’s psychology onthe real estate market.
Head of Marketing Technical Director Head of Legal
Loredana Rosu Lucian Udroiu Gina Patrinoiu
Executive Management
▪ 18 years of activity specialized in financialand marketing;
▪ In 15 years of experience in marketing andcommunication, she has coordinateddigital marketing, ATL and BTL campaigns;
▪ Active in the real estate sector for 12 years,coordinating the marketing andcommunication activities for the mainprojects of the company;
▪ Graduate of The Faculty of Management atBucharest Academy of Economic Studies.
▪ 30 years of experience in real estatedevelopments and construction, withaccomplished projects in residential, retail,office and industrial comprising over400,000 sqm built;
▪ 35 years of experience in design, execution,project, property and asset management;
▪ Graduate of Architecture University ofBucharest and certified in ProcessManagement, Project Management andFinancial Management.
▪ Has been practicing law over 17 in theReal Estate Law areas;
▪ Experienced Head of Legal with ademonstrated history of working in theReal Estate industry as in-house counsel;
▪ Skilled in Real Estate Law, Capital Market,Corporate Law, Contract Negotiation,Due Diligence;
▪ Graduate & post-graduate studies in Law,Faculty of Law.
HR Manager ESG & Compliance Officer
Dacian Micu Teodora Danila
Executive Management
▪ 18 years of experience in HumanResources, in multicultural, multi-ethnicenvironment and 11 years ofmanagement experience (middle and topmanagement);
▪ National expert proposed by SocialPartners regarding the program forproposals, tackling undeclared work inthe construction industry – TUWIC,aiming to eliminate the undeclared work,program that involves several nationalexperts from EU countries Phase I and II;
▪ Diploma in International Relations andPolitical Sciences and a master’s degreein Managerial Communication andHuman Resources.
▪ 22 years of professional experience, outof which 19 years experience as anexternal auditor at EY (6 years asassurance executive director) and 3 yearsexperience at Heidelberg CementRomania with extensive compliance,business processes as well as internalcontrol systems and complianceexperience;
▪ Bachelor’s degree from the Academy ofEconomics Studies in Bucharest,member of the Romanian Chamber ofthe Auditors (CAFR) as well as of theAssociation of Chartered CertifiedAccountants in UK (ACCA).
Investor Communication
Impact is continuously improving the interaction withinvestors and implementing best practices for fulltransparency. A sound and trustful relationship withinvestors is the foundation for a sustainable and successfulbusiness on the capital market, so we guide our activityaccording to a series of strong principles, such as opennessand transparency, equal treatment of all our investorsand ethical business conduct.
Impact is among a few companies that obtained themaximum score of 10 for communication with investors,according to the VEKTOR indicator published by ARIR(Romanian Investors Relations Association).
At the same time, the Company is visible throughcollaboration with analysts such as: Ipopema Securities,Swiss Capital, Wood Financial Group, Sustainalytics andothers.
Strategic keypoints
Our strategic approach comprises:
➔ Geographical expansion in big cities likeBucharest, Iasi, Constanta, Timisoara, Brasov, Cluj.
➔ Portfolio diversification into residential, hotel,office and retail spaces.
Expansion directions for consolidating market leadership
As a prospector we leverage knowledge and goodwillgained through strong experience and innovativetechniques to drive growth through sustainabledevelopments. As a defender we are committed to expandour distinctive capabilities in the years to come in order tomaintain leading position and our competitive advantages.This will secure our success, set new standards in theindustry and create added value to all our stakeholders.
Impact leads the way
A A
TIMI A A
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30 years of expertise in the development of flagship real estate projects, pioneering the Romanian Real Estate market.
As a listed company, we can use an array of financing instruments for own projects such as bonds and share capital.
Solid experience Access to capital
A great team of highly motivated and skilled professionals, with comprehensive expertise in real estate.
Constant growth backed by audited financial results driven by a strong pipeline, constant sales stream and valuable assets.
Highly qualified team Strong financials
Residential communities developed in cities green areas and own land bank with increasing market value.
Valuable portfolio
We offer to our clients: guidance through the whole acquisition and investment process, financing brokerages, facility management and scale economy for furniture, fixtures and equipment.
Extended services
Strong Portfolio & Proven History
Key elements of an affordable-medium segment project▪ Atractive locations in the most important cities, near green
neighborhoods, within city limits or in proximity;
▪ Large land plots of 10-50 ha in areas of those cities with significantgrowing demand and high employer concentration;
▪ High quality with nZEB & EXCELLENT BREEAM certified constructionsas well as sustainable solutions such as of use of renewable energysources, low emission energy sources, electric mobility and manpowered mobility, extended green areas, parks and playgrounds;
▪ Community centers located within the projects that promote sociallife and can include schools andkindergardens, playgrounds, facilities for sport and outdooractivities, police and fire departments, medical clinics andpharmacies, churches;
▪ Proximity shops/services facilities located within the project;
▪ Quality Property and Facility management services after completionwith increased automatization/digitalization for high efficiency.
Our brands & projects
MIDDLE - UPPER PROJECTS
AFFORDABLE PROJECTS
Residential 1997 - 2010
1,500 VILLAS
BUCHAREST - PIPERA
Between 1997 and 2010, IMPACT developed and sold 10residential compounds in the northern area of thecapital, with over 1,000 villas.
More than 3,500 inhabitants live in these units.
CONSTANTA
The BOREAL residential compound covers 65,000 sqmand comprises 150 villas entirely sold.
ORADEA
In Oradea IMPACT built two residential compoundbetween 2004 and 2008 with 350 villas entirely sold.
1 Sold units as of 30 June 20212 GBA= Gross Building Area of the Project3 GBA including parking = GBA including Project parking4 GDV = Gross Development Value= Estimated Value of the Project5 Gross Margin = Gross Margin of the Project; GDV less costs
Greenfield Baneasa
ResidenceBucharest
UNDER CONSTRUCTION UNITS 1,264PIPELINE UNITS 2,986
GBA2 (sqm) 414,316GBA including parking3 (sqm) 525,494
GDV4 (‘000€) 301,680GROSS MARGIN5 (‘000€) 121,557
COMPLETED UNITS 2,589
SOLD UNITS1 2,528
Except for GDV and Gross Margin that are 2022-2027 estimations, the rest of the figures are total project estimates.
6,839 units
Greenfield Plaza Baneasa
Bucharest
STARTING DATE 2020COMPLETION DATE 2021
TOTAL GBA (sqm) 7,258
- Commercial (sqm) 3,484
- Club (sqm) 3,774
G (‘000€) 21,830
G MA GI (‘000€) 8,730
Greenfield Baneasa Offices
Bucharest
STARTING DATE 2020COMPLETION DATE 2021
TOTAL GBA (sqm) 1,333
G (‘000€) 3,550G MA GI (‘000€) 1,420
LuxuriaExpozitieiResidence
Bucharest
630 units
STARTING DATE 2018COMPLETION DATE 2021
COMPLETED UNITS 630
SOLD UNITS1 237
GBA (sqm) 66,400GBA including parking (sqm) 92,860
G (‘000€) 34,049
G MA GI (‘000€) 11,376
1 Sold units as of 30 June 2021
Boreal Plus
Constanta
691 units
STARTING DATE 2020ESTIMATED COMPLETION DATE 2024
UNDER CONSTRUCTION UNITS 359PIPELINE UNITS 332
GBA (sqm) 66,571GBA including parking (sqm) 76,181
G (‘000€) 70,110G MA GI (‘000€) 22,059
Greenfield Copou
Residence Iasi
1,062 units
STARTING DATE 2021ESTIMATED COMPLETION DATE 2024
PIPELINE UNITS 1,062
GBA (sqm) 89,575GBA including parking(sqm) 129,650
G (‘000€) 152,042G MA GI (‘000€) 67,104
Greenfield Plaza Copou
Iasi
ESTIMATED STARTING DATE 2022ESTIMATED COMPLETION DATE 2023
TOTAL GBA (sqm) 2,500- Commercial (sqm) 1,000
- Club (sqm) 1,500
G (‘000€) 8,057G MA GI (‘000€) 3,223
Greenfield West
Bucharest
5,528 units
ESTIMATED STARTING DATE 2022ESTIMATED COMPLETION DATE 2031
PIPELINE UNITS 5,528
GBA (sqm) 494,040
GBA including parking (sqm) 598,880
G (‘000€) 233,613
G MA GI (‘000€) 87,431
Out of which Phase 1:Units 623
GBA (sqm) 67,500
GDV (‘000€) 74,950
GROSS MARGIN (‘000€) 31,898
Except for GDV and Gross Margin that are 2022-2027 estimations, the rest of the figures are total project estimates.
Greenfield West Plaza
Bucharest
ESTIMATED STARTING DATE 2026
ESTIMATED COMPLETION DATE 2026
TOTAL GBA (sqm) 7,258
- Commercial (sqm) 3,484
- Club (sqm) 3,774
G (‘000€) 18,180
G MA GI (‘000€) 7,272
Luxuria City Center
ResidentialBucharest
596 units
ESTIMATED STARTING DATE 2023ESTIMATED COMPLETION DATE 2027
PIPELINE UNITS 596
GBA (sqm) 80,000GBA including parking (sqm) 105,025
G (‘000€) 128,140G MA GI (‘000€) 53,818
Luxuria City Center
COMMERCIALBucharest
ESTIMATED STARTING DATE 2023ESTIMATED COMPLETION DATE 2027
TOTAL GBA (sqm) 8,000
G (‘000€) 26,084G MA GI (‘000€) 10,559
Luxuria City Center
5* Hotel & suitesBucharest
ESTIMATED STARTING DATE 2023ESTIMATED COMPLETION DATE 2026
TOTAL GBA (sqm) 20,000
ROOMS & SUITES 300
G (‘000€) 40,000G MA GI (‘000€) 15,980
Lotus
Oradea
277 units
ESTIMATED STARTING DATE 2025
ESTIMATED COMPLETION DATE 2027
PIPELINE UNITS 277
GBA (sqm) 24,440GBA including parking (sqm) 36,060
G (‘000€) 20,673
G MA GI (‘000€) 7,236
Except for GDV and Gross Margin that represents estimations for 2022 - 2027, the rest of the figures are total project estimates.
New Pipeline
Potential New Projects
4,485 units
ESTIMATED STARTING DATE 2022
ESTIMATED COMPLETION DATE 2028
PIPELINE UNITS 4,485
GBA (sqm) 410,140GBA including parking (sqm) 523,603
G (‘000€) 353,465
G MA GI (‘000€) 134,317
Potential new projects represents projects for which land has been identified but not acquired yet.Except for GDV and Gross Margin that are 2022 – 2027 estimations, the rest of the figures are total project estimates.
Summary of financial historical dataConsolidated statement of profit or loss
EUR thousandYear ended
31 Dec 2018(audited)
Year ended 31 Dec 2019
(audited)
Year ended 31 Dec 2020
(audited)Revenue from real estate inventories 21,819 33,019 42,256
Costs of real estate inventories (13,212) (17,682) (29,151)
Gross profit 8,607 15,337 13,105
Net rental income 663 1 192
General and administrative expenses (3,957) (4,396) (4,520)
Marketing expenses (382) (979) (940)
Other operating income/expenses (1,119) (339) (750)
Total other income / expenses (4,795) (5,713) (6,018)
EBITDA, reported 3,812 9,624 7,087
Depreciation and amortization (192) (195) (359)
Unrealised gains / (loss) on investment property 5,027 30,464 13,299
Impairment of assets (474) - -
Other income/expense (exceptional) (790) - -
EBIT 7,383 39,893 20,027
Finance costs, net (1,277) (1,248) (1,122)
Gross profit 6,106 38,645 18,905
Income tax credit/(charge) (1,629) (6,089) (3,429)
Net profit 4,477 32,556 15,476 RON/EUR average: 2020 – 4.8371, 2019 – 4.7452, 2018 – 4.65350
Consolidated statement of financial position
37
RON/EUR closing: Dec 2020 – 4.8694, Dec 2019 – 4.7793, Dec 2018 – 4.6639
EUR thousand31 Dec 2018
(audited)31 Dec 2019
(audited)31 Dec 2020
(audited)Property, plant and equipment 1,470 1,786 1,551 Intangible assets 20 30 28 Investment property 46,552 80,393 93,996 Financial assets - - 443 Long term trade and other receivables 253 - -Total non-current assets 48,295 82,209 96,018 Inventories 78,422 90,123 89,280 Trade and other receivables 5,535 6,881 5,457 Cash and cash equivalents 6,591 9,512 12,121 Total current assets 90,548 106,516 106,858 Total assets 138,843 188,725 202,876 Equity 95,801 122,180 131,601 Loans and borrowings 24,465 29,045 34,390 Trade and other payables 247 69 392 Deferred tax liability 5,537 9,619 11,357 Total non-current liabilities 30,249 38,733 46,139 Loans and borrowings 7,482 12,308 18,150 Trade and other payables 5,182 15,314 6,849 Provisions for risk and charges 129 190 137 Total current liabilities 12,793 27,812 25,136 Total liabilities 43,042 66,545 71,275
Total equity and liabilities 138,843 188,725 202,876
Summary of financial historical data
Consolidated statement of cash flow
38
RON/EUR average: 2020 – 4.8371, 2019 – 4.7452, 2018 – 4.6535
Summary of financial historical data
EUR thousandYear ended
31 Dec 2018(audited)
Year ended 31 Dec 2019
(audited)
Year ended 31 Dec 2020
(audited)Profit for the period 4,477 32,556 15,476
Adjustments for:
Depreciation and amortisation 192 195 359
Write-offs, net 790 (826) (425)
Changes in fair value of investment property (5,027) (30,464) (13,299)
Income tax 1,629 6,089 3,429
Interest expenses / (income), net 1,287 538 1,279
Other adjustments 686 722 301
4,034 8,810 7,120
Changes in working capital (2,335) (6,654) (6,910)
Income tax paid (706) (1,241) (1,487)
Interest paid (1,181) (529) (1,268)
Net cash used in operating activities (188) 386 (2,545)
Net cash from investing activities (233) (3,253) (2,082)
Net cash used in financing activities (3,175) 5,971 7,430
Translation difference 8 (183) (194)
Net increase / (decrease) of cash and equivalents (3,588) 2,921 2,609
Cash and equivalents at 1 January 10,179 6,591 9,512
Cash and equivalents as at 31 December 6,591 9,512 12,121
Debt-to-Assets 26.7%
Mix of Financing
31.1 mil EUR Bonds,
56.56%
18.6 mil EURProject loans,
33.82%
5.3 mil EURWorking capital,
9.62%
All provided date as of 30 June 2021
Net Assets
40
▪ EPRA= European Public Real Estate Association.▪ EPRA NRV, EPRA NTA and EPRA NDV are determined in accordance with the EPRA standards being disclosed in the Company’s annual and quarterly reports. ▪ The Amounts are translated in EUR at the NBR average and closing RON/EUR foreign exchange rate for each period.
1EPRA NRV = EPRA Net Reinstatement Value
2EPRA NTA = EPRA Net Tangible Assets
3EPRA NDV = EPRA Net Disposal Value
METRICS 31-Dec-18 31-Dec-19 31-Dec-20 30-June-21
IFRS (consolidated)
Net profit (EUR thousand) 4,476 32,556 15,475 (562)
et asset value (" V“, U thousand) 95,801 122,181 131,603 129,263
NAV/Share (EUR) 0.34 0.45 0.50 0.0812
EPRA Net Asset Value (consolidated)
EPRA NRV1
(EUR thousand) 154,381 171,212 188,426 192,884
EPRA NTA2
(EUR thousand) 151,151 166,372 182,719 187,238
EPRA NDV3
(EUR thousand) 147,960 161,593 177,069 181,673
EPRA NRV/Share (EUR) 0.56 0.62 0.71 0.1218
EPRA NTA/Share (EUR) 0.54 0.61 0.69 0.1198
EPRA NTD/Share (EUR) 0.53 0.59 0.67 0.1157
Capital Market
43
▪ BSE historical data.
▪ On 21 April 2021 the Shareholders’ approved increase of the Company share capital through reserves incorporation and increase of the number of shares through split of the shares. Both operations have been approved by Romanian Trade Register on 23 June 2021. As result of this operations, as of 30 June 2021, the Company share capital has increased to RON 393,750,000 and the number of shares increased to RON 1,575,000,000. However, the Central Repository did not process these changes up to 5 July 2021, thus the BSE discloses as 30 June 2021 a different share capital RON 262,500,000 and number of shares 262,500,000.
Share data 31-Dec-18 31-Dec-19 31-Dec-20 30-Jun-21 31-Aug-21
Shares out 277,866,574 274,443,532 265,000,000 262,500,000 1,575,000,000
Price per share RON 0.99 1.49 1.88 3.06 0.6450
Market capitalisation RON 275,087,908 408,920,863 498,200,000 803,250,000 1,015,875,000
Market capitalisation EUR 58,982,377 85,560,827 102,312,400 163,040,168 205,859,407
12M shares traded 33,104,375 13,147,243 17,124,933 18,769,385 53,882,948
12M trading days 249 249 249 246 244
Daily average vol shares 132,949 52,800 68,775 76,298 220,832
12M turnover RON 29,553,652 15,250,991 25,516,810 43,071,036 60,151,664
12M avg daily turnover RON 118,689 61,249 102,477 175,086 246,523
12M avg daily turnover EUR 25,449 12,815 21,045 35,538 49,956
12m high/low RON 1.155/0.85 1.545/0.92 2/1.21 3.28/1.37 0.705/0.231667
Performance 31-Dec-18 31-Dec-19 31-Dec-20 30-Jun-21 31-Aug-21
1M performance 4% 7% 30% 5% 25%
3M performance 4% 29% 26% 5% 33%
12M performance (6)% 51% 26% 105% 165%
Capital MarketIMPACT shares price upward trend
Relative evolution of IMP vs. BET index2017 – 2021 (August)
▪ BSE historical data
▪ As of 31 Aug 2021 IMPACTshares were traded at 0.6450RON/share on BSE with aRON 1.015.875.000 marketcapitalization.
▪ On 5 July 2021 following thesplit of the shares and theincrease of share capital byreserves incorporation theCompany has 1,575 milshares and RON 394 millionshare capital
Blue line – IMP Orange line – BET index
▪ In order to support our ambitious growth strategy, we intend to obtain financing through:
o Equity of minimum EUR 50 mil through share issuance as per hareholders’ decision dated 20 Aug 2021
o Bonds issuance up to 100 mil EUR according to our financing needs to implement our development, as per hareholders’decision dated 21 April 2021
o Project finance loans, corporate loans, working capital loans
▪ Our estimated forecast figures are based primarily on development of own land bank.
▪ Excess cash (above EUR 30 million) together with additional project bank financing is intended to be used for land acquisition(to supplement developed land) and for new projects.
▪ We are committed to maintain a maximum 40% Debt-to-Assets 1 and an average 3.5 Debt-to-EBITDA2 .
▪ We plan for a projects financing T ’ of 65% (inclusive land value)
▪ We are targeting a 35% Gross Margin3 in our projects.
▪ A minimum 90% of the Net profit resulting from operational activities will be assigned for dividend distribution and shares buyback, maintaining the compliance with the targeted ratios.
Assumptions involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and maycause the actual results, performance or achievements of the Company to be materially different from those expressed or implied herein (please refer to the Disclaimer above).1 Debt-to-Assets = Total loans and borrowings /Total assets2 Debt-to-EBITDA =Total loans and borrowings /EBITDA3 Gross Margin per project = (Project Sales- Project Cost of sales)/ Project Sales
ForecastAssumptions
SUSTAINALYTICS is of the opinion that the IMPACT Green Bond Framework is credible and impactful and aligns with the fourcore components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
PROJECT EVALUATION / SELECTION
MANAGEMENT OF PROCEEDS
REPORTING
We have developed the IMPACT Green Bond Framework to be used in future green financing.
The Framework defines eligibility criteria in the following areas:
1. Green Buildings2. Sustainable Water and Wastewater Management3. Renewable Energy4. Clean Transportation
In 2020 IMPACT engaged SUSTAINALYTICS to review the IMPACT Green Bond Framework and provide a Second-Party Opinion onthe ramewor ’s environmental credentials and its alignment with the Green Bond Principles 2018 (GBP). SUSTAINALYTICS, aMorningstar Company, is a leading ESG research, ratings and data firm that supports investors around the world with thedevelopment and implementation of responsible investment strategies.
IMPACT Green Bonds
Residential▪ 93,000 sqm currently in construction ▪ 1,211,000 sqm expected to be developed in 2022-2027▪ Gross Development Value 1,294 mil EUR▪ Gross Margin 505 mil EUR
Gross Development Value
1,411 mil EUR
Estimated Gross Margin
~552 mil EUR
Office / Commercial / Community Centers / Hotel▪ 9,000 sqm currently in construction▪ 38,000 sqm expected to be developed in 2022-2027▪ Gross Development Value 117 mil EUR▪ Gross Margin 47 mil EUR
2022 – 2027 Forecast Figures
Landbank▪ 734,500 sqm available for development
*inclusive 2021 acquisitions
Consolidated statement of profit or lossForecast
46
The forward looking statements in this presentation are based on numerous assumptions re ardin the Company’s present and future business strate ies and the environment in which the Company operates. Forward looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements in this presentation. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Company operates or in economic trends or conditions.No representation or warranty is made that any forward-looking statement will come to pass or that any forecast results will be achieved.
EURO thousand 2022 F 2023 F 2024 F 2025 F 2026 F 2027 F TotalRevenue from residential inventories 114,178 108,873 239,767 260,569 268,222 302,164 1,293,773 Costs of residential inventories (73,136) (64,499) (143,478) (157,044) (163,103) (187,616) (788,876)Gross margin residential inventories 41,042 44,374 96,289 103,525 105,119 114,548 504,897 Revenue from commercial & other 21,830 3,551 8,058 26,085 40,000 18,180 117,704 Costs of commercial & other (13,098) (2,131) (4,835) (15,525) (24,020) (10,908) (70,517)Gross margin commercial & Other 8,732 1,420 3,223 10,560 15,980 7,272 47,187 Net other income 810 982 1,243 1,597 1,954 2,340 8,926 General, administrative & other expenses
(7,908) (8,780) (12,357) (11,044) (12,648) (13,703) (66,440)
Total other income / expenses (7,098) (7,798) (11,114) (9,447) (10,694) (11,363) (57,514)EBITDA 42,676 37,996 88,398 104,638 110,405 110,457 494,570 EBITDA margin % 31% 34% 36% 37% 36% 34% 35%
Depreciation and amortization (352) (354) (357) (359) (58) (58) (1,538)EBIT 42,324 37,642 88,041 104,279 110,347 110,399 493,032 Finance costs, net (5,403) (5,500) (6,200) (7,276) (7,077) (3,173) (34,630)Profit before tax 36,921 32,142 81,841 97,003 103,270 107,226 458,402 Income tax (5,907) (5,143) (13,095) (15,520) (16,523) (17,156) (73,345)
Net profit 31,014 26,999 68,746 81,483 86,747 90,070 385,057 Net profit margin % 23% 24% 28% 28% 28% 28% 27%
Company data and estimates based on projected costs & income 1 Debt-to-Assets = Total loans and borrowings /Total assets2 Debt-to-EBITDA =Total loans and borrowings /EBITDA3 Debt Service Coverage = loan repayments (excluding bonds)/Net income from residential and commercial.4 LTV excluding land = loans and bonds drawings used for projects/Construction cost
Consolidated Cash FlowForecast
EUR thousand 2022 F 2023 F 2024 F 2025 F 2026 F 2027 F TotalProceeds from sale of residentials 118,356 122,024 245,511 261,735 269,005 296,994 1,313,625 Development payments (93,318) (152,337) (164,122) (138,753) (135,998) (149,958) (834,486)Land acquisition (6,311) (25,244) (26,284) (27,620) (19,997) (23,184) (128,640)Other proceeds 810 982 1,243 1,597 1,954 2,340 8,926 Other payments (7,918) (8,792) (12,370) (11,056) (12,660) (13,715) (66,511)Income tax (5,907) (5,143) (13,095) (15,520) (16,523) (17,156) (73,344)Operating cash flow 5,712 (68,510) 30,883 70,383 85,781 95,321 Investment proceeds 21,830 3,551 8,058 26,085 40,000 18,180 117,704 Investment payments (1,516) (10,426) (19,225) (4,665) (9,363) - (45,195)Investment cash flow 20,314 (6,875) (11,167) 21,420 30,637 18,180 Free cash flow 26,026 (75,385) 19,716 91,803 116,418 113,501 Loans 15,933 80,438 112,492 88,948 87,121 86,425 471,357 Debt repayments (64,001) (29,350) (83,141) (82,800) (180,662) (100,227) (540,181)Interest payment (5,403) (5,500) (6,200) (7,276) (7,077) (3,173) (34,629)Dividends /payments to shareholders (10,533) (27,913) (24,300) (61,872) (73,333) (78,073) (276,024)Financing cash flow (64,004) 17,675 (1,149) (63,000) (173,951) (95,048)Net cash flow for the period (37,978) (57,710) 18,567 28,803 (57,533) 18,453 Cash at the beginning of the period 169,772 131,794 74,084 92,651 121,454 63,921
Cash at the end of the period 131,794 74,084 92,651 121,454 63,921 82,374
Debt-to-Assets1
26% 35% 35% 34% 20% 17% 28%Debt-to-EBITDA
22.25 3.88 2.00 1.75 0.81 0.68 1.55
Debt Service Coverage3
0.89 1.43 1.11 1.31 1.15 1.14 1.16 LTV excluding land
470% 65% 61% 62% 60% 58% 62%
IMPACT Recognitions
We are focused on continuously improving standards in the development of the real estate sector and the granted distinctions can validate our commitment.
20201st place Bucharest Business TOP, award offered to Impact Developer & Contractor by the Romanian
Chamber of Commerce and Industry.
2020Best Developer Website, Award offered to IMPACT for www.impactsa.ro website, by International Property
Award.
2020 Architecture Multiple Residence, Award offered to Luxuria Residence by International Property Award.
2020 Residential Development, Award offered to Boreal Plus by International Property Award.
2020 „BestUpscale Residential Project” award offered to Luxuria Residence by THE TIMES - Investing in Property
2019Greenfield Residence: Best Smart Green Project at Smart Real Estate and Residential Category, acquired at
the Smart City Industry Awards 2019
20191st prize in the Top of Romanian Companies - 2019 - granted by the Chamber of Commerce and Industry of
the Municipality of Bucharest
2018The “ rchitecture Multiple esidence” award - offered to Luxuria Domenii Residence by the International
Property Award
2016“The best residential compound that uses sustainable architecture and desi n” obtained by Greenfield
Baneasa in 2016 at Smart City Industry Awards Gala.
This presentation does not constitute or form part of, and should not be construed as, any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase orsubscribe for, any securities of IMPACT DEVELOPER & CONTRACTOR S.A. (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 connectionwith, any contract or investment decision in relation thereto nor does it constitute a recommendation regarding the securities of the Company. Investors and prospective investors in the securities ofthe 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.The information herein has been prepared by the Company solely for information purposes only and does not constitute of form part of, and should not be construed as, an offer or the solicitation ofan offer to subscribe for or purchase securities of the Company nor does it purport to give legal, tax or investment advice.The information contained in this presentation does not purport to be comprehensive and is subject to updating, completion, revision and amendment and such information may change materially.None of the Company or any of its or their respective directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever (whether in contract, tort or otherwise) for/ormakes any representation, warranty or undertaking, express or implied, as to the truth, fullness, fairness, accuracy or completeness of the information in this presentation (or whether anyinformation has been omitted from the presentation) or for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Each of suchpersons accordingly disclaims all and any liability whatsoever, whether arising in tort, contract or otherwise in respect of this presentation or any such information.This presentation does not constitute an offer of securities to the public in any jurisdiction.The information in this presentation may include forward-looking statements, which are based on current expectations, projections and assumptions about future events. These statements mayinclude, without limitation, any statements preceded by, followed by or including words such as “tar et”, “believe”, “e pect”, “aim”, “intend”, “may”, “anticipate”, “estimate”, “plan”, “project”,“will”, “can have”, “li ely”, “should”, “would”, “could” and other words and terms of similar meaning or the negative thereof. These forward-looking statements include all matters that are nothistorical facts.The forward looking statements in this presentation are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Companyoperates. Forward looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may notoccur in the future and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements inthis presentation. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions, currencyfluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's ability to continue to obtain financing to meet its liquidity needs, changes inthe political, social and regulatory framework in which the Company operates or in economic trends or conditions.No representation or warranty is made that any forward-looking statement will come to pass or that any forecast results will be achieved. There are a number of factors that could cause actual resultsand developments to differ materially from those expressed or implied by these statements and forecasts. Past performance of the Company and the group cannot be relied on as a guide to futureperformance. Forward-looking statements speak as of the date of this presentation and no one undertakes to release any update or revision of any such forward looking statement, whether as aresult of new information, future events or otherwise. No statement in this presentation is intended to be a profit forecast. Accordingly, undue reliance should not be placed on any forward-lookingstatement contained in this presentation.To the extent available, the industry, market and competitive position data contained in this Presentation come from official or third party sources. Third party industry publications, studies andsurveys generally state that the data contained therein have been obtained from sources believed to be reliable, but there is no guarantee of the accuracy or completeness of such data. While theCompany reasonably believes that each of these publications, studies and surveys has been prepared by a reputable source, none of the Company nor its directors, officers, employees, advisers oragents, have independently verified the data contained therein.Financial and statistical information contained in this presentation is subject to rounding adjustments. Accordingly, any discrepancies between the totals and the sums of the amounts listed are dueto rounding. Certain financial information and operating data relating to the Company or its group contained in this presentation has not been audited and in some cases is based on managementinformation and estimates and is subject to change. This presentation also includes certain non-IFRS measures, which have not been subject to a financial audit for any period and which may differmaterially from similarly -titled measures used by other companies.The information in this presentation has not been independently verified. The information and opinions contained in this presentation are provided as at the date of the presentation and are subject
to amendment, completion and change without notice. In giving this presentation, none of the Company nor its directors, officers, employees, advisers or agents, undertakes any obligation to
amend, correct or update this presentation or to provide the recipient with access to any additional information that may arise in connection with it.
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