FY 2017 PRELIMINARY RESULTS PRESENTATION AG 30
DISCLAIMER This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. Consus Real Estate AG has based these forward-looking statements on its current views and expectations and on certain assumptions of which many are beyond Consus Real Estate AG s control. Actual financial performance could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. The information contained in this presentation is subject to change without notice and Consus Real Estate AG does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. This presentation includes references to non-ifrs financial measures. We have provided these measures and other information in this presentation because we believe they provide investors with additional information to assess our performance. Our use of these supplemental financial measures may vary from others in our industry and should not be considered in isolation or as an alternative to our results as reported under IFRS. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
CONSUS EXECUTIVE BOARD Norbert Kickum CEO Over 35 years experience in banking and real estate industry Various management positions: Airbus Bank (CEO / Board ), FMS Wertmanagement AöR (Board), Aareal Bank, Hypo Bank Former CEO of Aggregate Deutschland S.A. Andreas Steyer COO Over 25 years operational and leadership experience in German real estate companies Former CEO of publicly listed DEMIRE, expansion of buy-to-hold assets > 1bn Previously Deka Immobilien and partner at Ernst & Young Real Estate Benjamin Lee CFO 25 years experience in the financial industry with 14 years at UBS (IB) in London He was previously working at Aggregate Holdings, the majority shareholder of Consus 5 years of experience as board member and CFO of a listed public company 3
DEVELOPMENT DIVISION Christoph Gröner CEO Jürgen Kutz Deputy- CEO/COO Christoph Gröner is the founder and CEO of CG Gruppe and one of the leading entrepreneurs in the German real estate development sectors First company founded 1990 in the construction business, first developments completed in 1995 Leading innovation in the industrialization and digitalisation of the real estate development space Mr. Kutz has been Deputy-CEO and COO since 2011 and is in charge of the project development, forward sales and the financing of projects of CG Gruppe Previously he was a Senior Real Estate Asset Manager with Loan Star Funds, before he was the CEO of the Alpine Finanz group Degree in economics with the focus on taxes and audit from the Technische Universität Berlin Bernd Krüger CFO Mr. Krüger has been CFO of the CG Gruppe since 2016 He gained more than 16 years of knowledge as an auditor at Ernst & Young with the focus on real estate and over 18 years of experience in the financial industry 4
20 + YEARS IN THE REAL ESTATE BUSINESS IN GERMANY Foundation of CG Gruppe Founded as building company 2015 Significant investment in CG Gruppe 2009: First forward sales to institutional purchasers Focusing on insurance companies and pension funds April 2017: Listed Consus Nov 2017: Issue of 200MM convertible bond Consus taps institutional capital markets for the first time Dec 2017: 680MM forward sale Forward sale of 5 different development assets in top German cities to an institutional investor 1995 2007 2009 2010 2017 2018 2007: Start Project development with first project in Plagwitz (Leipzig) 2010: Started expanding in Germany To become a leading development player with a focus on top 9 cities Aug 2017: Integration of CG into listed Consus Consus becomes one of the leading German listed developers with a 50% stake in CG Dec 2017: Consus stake in CG increased to 59% 1 Further development : 750MM growth and development growth smart Purchase of five building individual new projects for a total expected sales volume of around 750 million 2 Strong growth of CG prior to 2017 acquisition by Consus group Note: (1) Controlling and majority shareholding in CG Gruppe (incl. mandatory convertible) on a fully diluted basis (2) GDV=Gross Development Value; Includes 5 new projects with a total GDV of 750MM that have been secured on 16 5
CONSUS TODAY Unique Business Model Key Financials + KPIs Current Development Locations One of the leading integrated German residential developers (by GDV and sqm), diversified across the largest and fastest growing 9 German cities (top 9 cities) 1 Strong market share in undersupplied residential real estate market GDV (owned) 2,4 GDV (Identified Targets) 4 ~ 5.3bn ~ 4.8bn Focused on selling residential projects to institutional investors through forward sale agreements thereby minimizing development risk Fully integrated real estate platform covering the entire value chain Headquartered in Berlin with approx. 420 employees focused on construction and sales Corporate Structure Total GDV 2,4 (Owned + Identified Targets) Forward sales volume contracted + LOI 4 Commercial assets 3,5 Targeted Medium-term EBITA ~ 10.1bn 1.4bn 527MM Approx. 300MM Hamburg Dusseldorf Cologne Frankfurt Berlin Dresden Leipzig 1 Development Business 5.3bn GDV 2,4 development business incl. ~ 214MM self developed build-to-hold 3,5 ~ 313MM commercial assets 3,5 Targeted EBITA-Margin ~20% Targeted Development ROCE in % Total Debt Development Business 5 Total Group Debt 5 Approx. 30% 1,008MM 1,590MM Stuttgart Munich Current Projects in place 6 Note: CG is the third largest developer in the top 7 cities according to Bulwiengesa Projektentwicklerstudie 2018. Management believes CG is the overall market leader in the top 9 German cities (Top 7 cities plus Leipzig, Dresden and Offenbach (1) 59% controlling and majority shareholding in CG Gruppe (incl. mandatory convertible) (2) GDV=Gross Development Value; Includes 5 new projects with a total GDV of 750MM that have been secured on the 16 (3) Further approx. 330MM commercial buy-to-hold currently held via 100% Consus Real Estate AG 148MM and via 58% stake GxP 165MM (4) As of 31.03.2018 (5) As of 31.12.2017 (6) Project in Dortmund included in Düsseldorf, project in Erfurt included in Leipzig, project in Aachen included in Cologne 6
INVESTMENT HIGHLIGHTS 1 Well positioned in the resilient German economy exhibiting significant undersupply of residential real estate 2 One of the leading residential developers with focus on Germany s top 9 cities 3 Institutional forward sales provide early cash flows and minimize development risks 4 Strong development portfolio based on 49 projects with a GDV of 5.3bn with attractive cash recycling 5 Superior development capabilities and strong, executable near-term targets 6 Competitive advantage and increased value creation across the entire value chain through digitalization of residential development 7 Highly experienced management team with an excellent track record in real estate industry 7
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011¹ 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E 1 UNDERSUPPLY IN GERMAN DEVELOPMENT Construction costs below selling price since 2015 Continuing supply / demand imbalance (units) In per m 2 3,500 600,000 Supply (New constructed apartments) Vacancy Demand (Additional households) % 4.5 3,000 2,500 Market Opportunity for real estate development players 2,957 /m 2 2,813 /m 2 480,000 360,000 240,000 4.1 3.6 3.7 3.8 3.9 3.9 3.9 3.7 3.7 3.6 3.4 3.3 3.1 3.0 3.0 2.8 2.5 2.0 3.6 2.7 1.8 2,000 120,000 1.6 1.1 0.9 1,500 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 0 0.7 0.0 Source: Destatis / Empirica Source: Statistisches Bundesamt, Savills, UBS Research Consus is focusing on the most undersupplied market segment: Residential apartments to be developed in the top 9 cities 8
2 ONE OF THE LEADING RESIDENTIAL DEVELOPERS WITH FOCUS ON GERMANY S LARGEST AND FASTEST GROWING TOP 9 CITIES Overview of German Development Market The top ten of German real estate developers are residential developers Consus/CG with standardised supply chain and integrated construction expertise One of few development production factories with ability for broad and complex projects involving both residential and commercial In the project development study of 2018, Bulwiengesa analyzed the status of construction projects currently planned, under construction, or being completed within the period between 2015 and 2022 In such study, only German A-cities were part of the analysis (Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich, Stuttgart) Not included are the German B-Cities such as Leipzig and Dresden which are dominated by CG Group AG CG Gruppe Zech Group Bonava Instone BPD Pandion SSN Group Otto Wulff Project Immo Groth Gruppe in m 2 000 German large 9 Cities Developer 0 200 400 600 800 1,000 1,200 1,400 Source: Bulwiengesa Projektentwicklerstudie 2018 Includes developments in Leipzig, Dresden and Offenbach When including A- and B-Cities, Consus via its development arm is the leading developer in terms of total sellable area Note: Top rank referrers to being among the top 3 ranked cities in: 1 HWWI/Berenberg-Städteranking, 2 WirtschaftsWoche; CG is the third largest developer in the top7 cities according to Bulwiengesa Projektentwicklerstudie 2018. Management believes CG is the overall market leader in the top 9 cities (Top 7 cities plus Leipzig, Dresden and Offenbach). It is based on project development study of 2018, Bulwiengesa analyzed the status of construction projects currently planned, under construction, or being completed within the period between 2015 and 2022. In such study, only German A-cities were part of the analysis (Berlin, Dusseldorf, Frankfurt, Hamburg, Cologne, Munich, Stuttgart). Not included are the German B-cities such as Leipzig, Dresden and Offenbach which are dominated by CG Group AG 9
3 FORWARD SALE MODEL DELIVERS CLEARS COMPETITIVE ADVANTAGE Development with Integrated Forward Sales Model Factory Forward Sales Faster project development possible through high volume sales to single purchasers Accelerates development funding through providing certainty and volume of finance Factory Production Standard institutional forward sales allow for faster re-cycling of equity, and lower equity financing requirement De-risks business model through guaranteed funding and guaranteed sales Future upside from rental increases built in to contracts Factory Supply Well positioned for Quartier development, as institutional buyers will purchase developments with mix residential and commercial tenants Competitive advantage with authorities as institutions are good landlords focused on middle-income tenants The Consus / CG Development Factory with unique cash flow profile and early cash inflows allows faster growth from self-funding 10
3 FORWARD SALES TO INSTITUTIONAL PURCHASER DE-RISKING EARLY IN PROCESS Forward Sales Contracts Min price forward sale contract clauses ensure costs are fully covered by institutional investors Base price on basis of pre-set rent multiple of fully let building and pre-set Upside based on overdelivering rent as well as vacancy Contained risk of losses by the developer High construction quality standards One-stop-shop approach / turnkey solutions Sustainable buildings with low maintenance costs Reliable time delivery Institutional forward sales backlog ~ 1.4bn 2,000 1,500 1,000 680MM VauVau 500 0 Completed + Contracted + LOI: 1.7bn 338 840 1,2 82 77 68 289 Total Forward Sales Backlog 2 338 2018 Forward Sales Volume Completed 2014+earlier 2015 2016 2017 2018 Strong FCF Conversion 2018YTD VauVau only 131MM cash in 3 from Forward Sale for 3 out of 5 VauVau projects after successful contractual procurement of the building permits 3 Contracted + LOI: 1.4bn 1,2,3 LOI: 0.3bn Capital recycling boosted by expertise in forward sales to institutional purchaser of development projects Current institutional forward sales > 1.4bn with immediate cash conversion from recent forward sale projects Note: (1) LOI Commitments (2) Two projects with total forward sales volume of 308MM previously under 2017 have been favorably renegotiated and are shown in 2018, additionally one project with 35MM GDV has been delivered end 2017 (3) As of April; Excludes property sales of 79MM 11
3 WITH LIMITED EQUITY REQUIREMENT AND EFFICIENT CAPITAL MANAGEMENT DRIVING STRONG CASH FLOWS Illustration of Target Consus Forward Sold Development Project Cash Flow 160% 140% 120% 100% 80% 60% 40% 20% 0% Acquisition 0% -20% 20% Development / Forward sale Projects are cash positive after 12 months with strong positive free cash flow in year 2-3 Land Acquisition 30% 5% 5% Development/Forward Sale Construction Targeted cash EBITA margin of 20% 60% 11% 54% Construction Delivery 10% 20% 1% Delivery Project Cash Collection Project Cash Costs Cumulated Project Cash Flow 40% 30% 20% 10% 0% -10% -20% -30% -40% Forward sales model supports early capital recycling Target cash flow positive after 12 months Lower cost of capital comparatively to the traditional real estate development peers Shorter lock-in period of equity investment given forward sale business model nature Targeted Return on Capital Employed (ROCE) (1) 30% ~2 Months ~10 Months ~17 Months ~3 Months Notes: (1) Defined as run-rate EBITA / (Net Debt+Book value of Equity); Timeline reflects minimum execution timeline 12
3 RECENT PROOF POINT: 680MM FORWARD SALE VAUVAU TO AN INSTITUTIONAL INVESTOR IN DECEMBER 2017 New Market Standards via CG Branded Vertical Village VauVau Renovation and conversion of office buildings and high-rises into modern residential and commercial complexes Located in major cities under the brand VauVau The Vertical Village concept offers smart and efficient usage of space and combines new ways of living and technology (shared office space, integrated services etc.) Residential Area: 91,548 m², # Residential units: 1,744, Commercial Area: 28,383 m² OFFENBACH/FRANKFURT # units 632 Residential space 31,538 m 2 Commercial space 6,207 m 2 Completion date 2020/2021 DRESDEN Annenstraße # units 191 Residential space 11,155 m 2 Commercial space 3,323 m 2 Completion date 2020/2021 COLOGNE - Stolkgasse # units 202 Residential space 10,207 m 2 Commercial space 12,754 m 2 Completion date 2020/2021 DUSSELDORF Mercedesstraße # units 423 Residential space 22,606 m 2 Commercial space 1,799 m 2 Completion date 2021/2022 LEIPZIG - Pragerstraße # units 296 Residential space 16,042 m 2 Commercial space 4,300 m 2 Completion date 2020/2021 Strong FCF Conversion 2018YTD (1) 131MM cash in from Forward Sale for 3 out of 5 VauVau projects after successful contractual procurement of the building permits Underscores Consus ability to execute large projects and minimize development risks early and achieve target margins Five individual projects under the proprietary brand VauVau forward sold to an institutional investor Note: (1) As of April 10 th, 2018 the underlying basis for the payment were the contractual procurement of the building permits for the three construction projects in Leipzig, Frankfurt / Offenbach and Düsseldorf by the project developer CG Gruppe 13
4 STRONG DEVELOPMENT PORTFOLIO BASED ON 49 PROJECTS WITH A GDV OF 5.3bn WITH ATTRACTIVE CASH RECYCLING Developments Projects Split by Geography (by GDV MM) Hamburg Top Rank in total population 141,386 sqm Total Area 682MM GDV 13% of total GDV Hamburg Berlin Top 3 Rank in Population Growth 170,048 sqm Total Area 718MM GDV 14% of total GDV Leipzig/Erfurt 22.9% Stuttgart 0.7% Berlin 13.6% Cologne/Aachen 18.7% Dusseldorf (1) Top rank Demography Index 63,465 sqm Total Area 241MM GDV 5% of total GDV Cologne Top rank population growth 213,844 sqm Total Area 989MM GDV 19% of total GDV Frankfurt (2) Top 3 rank in residential prices 148,613 sqm Total Area 999MM GDV 19% of total GDV Dusseldorf Cologne Frankfurt Stuttgart Berlin Leipzig Dresden Dresden Top 3 rank in demography index 91,393 sqm Total Area 417MM GAV 8% of total GAV Leipzig (3) #1 rank in Trend Index 508,113 sqm Total Area 1,213MM GDV 23% of total GDV Stuttgart Top 3 rank in residential prices 7,470 sqm Total Area 39MM GDV 1% of total GDV Hamburg 12.9% Retail + Hotel 25% Frankfurt/Offenbach 18.9% Dresden 7.9% Düsseldorf/ Dortmund 4.6% Sales by Split by Class (by sqm) Office 13% Others 6% Residential 56% Note: (1) Includes a property in Dortmund (2) Includes properties in Offenbach (3) Includes a property in Erfurt 14
4 WITH RECENT GROWTH THROUGH NEW DEVELOPMENT PROJECTS: 750MM ADDED IN 2018 Geographical distribution of the targeted land (by sqm) Portfolio met acquisition criteria Stuttgart Erfurt 5% 5% 43,896 Over 1,800 Standardised apartments in top 9 cities 2 Hamburg 29% 1 Hamburg Standardised rental apartment blocks with (Mietwohnung): e.g. Hamburg Cologne 61% 66,725 27,458 2 Cologne 1 6,951 Erfurt 710 Integrated residential and commercial developments ( Quartier ): e.g. Cologne All projects with potential for forward sale to institutional purchasers Total newly acquired Project KPIs # units 1,874 Residential space 123,241 m 2 Commercial space 29,968 m 2 Completion date 2020-24 EBITA Margin Approx. 20% Sales Price (Residential) 1 4,680-6,284/sqm Sales Price ( Sozialwohnungen ) 1 3,160/sqm Note: (1) Expected sales price for condominiums (2) Except Erfurt 5,670 1 Sites Commercial sqm Residential sqm Stuttgart New land purchase adds significant value to existing projects and is in line with guided acquisition targets Rightsized for demand (1-2 bedroom with 50-70 sqm) Targeted EBITA margin ~20% 15 1,800
5 CONSUS GROWTH AND CAPITAL ALLOCATION BASED ON CLEARLY DEFINED INVESTMENT CRITERIA German Residential Development Market as Growth Opportunity Project Development Investment Criteria Not institutionalised Fragmented, regional market Illiquid, often lacking scale Single unit, luxury end focused No access to capital markets Asset Class: Standardised rental apartment blocks ( Mietwohnung ) and integrated residential and commercial developments ( Quartier ) Location: Standardised 100+ apartments in top cities Developers Identified Targets Consus Development Growth Strategy Organic Growth New project (to be acquired) In-Organic Growth New developer(s) (to be acquired) New project (to be acquired) Forward Sale: Forward sale to institutional purchasers including favourable forward selling price agreed before start of construction Lot Size: Rightsized for demand (1-2 bedroom with 60-80sqm) + VauVau concept at around approx. 50sqm Target EBITA margin ~20% Consus focuses on a market segment providing for significant growth opportunities 16
5 SUPERIOR DEVELOPMENT CAPABILITIES... 1 All-rounder capabilities: Develop large-scale residential with commercial apportionment 2 Large scale development capabilities: Ability to develop sustainable vertical villages and quarters 3 Conversion capabilities: Ability to convert listed and commercial into residential space Ability to digest and develop complex large-scale projects, which require a combination of residential as well as commercial development expertise, clearly differentiating us from most competitors who lack such capabilities Broad and established sourcing network with on-the-ground local presence Close cooperation with regulators and engagement of communities as well as long-lasting relationships and excellent reputation with municipalities across all Germany s top 9 cities, ensuring access to superior projects Preferred developer for large size projects given certainty of funds track record and reputation of completing projects within budget and delivering on schedule Approx. 80% of unit deliveries Expertise of converting listed buildings, with track record in office, logistic and other commercial conversion projects Space creation through prime real estate access and municipalities trust with land-mark building projects Approx. 20% of unit deliveries from conversions Superior space creation capabilities providing high growth potential despite decreasing conventional build land 17
5 WITH UNIQUE CAPABILITES FOR COMPLEX QUARTER CREATION CASE STUDY FEUERLANDHÖFE Macro Location: Berlin Micro Location: Berlin Mitte Transformation Development Challenge Before Large Quarter on old industrial ground with mixed buildings: residential, commercial + old industry site with factory building Site Location After Old building with heritage-protection and contaminated site Complex and large site with construction challenges Address Chausseestraße 38-42 a, Berlin Residential sqm 33,057 Commercial sqm 2,342 Total sqm 35,399 # of Residential Units 394 Completion 2017/2018 GDV Key Information 85.0MM EBIT Margin (New Build)% 20% Solution Project completed in expected timeline Unique skill set of Consus development arm CG Group including construction experience : Transforming old and complex mixed development quarters into completely revamped neighborhood defining areas Redefining entire area with upgrading to highest living and shopping standards Strong EBIT margin (New build) of approx. 20% despite construction challenges Conversion of industrial area large development of residential area 18
5...AND STRONG, EXECUTABLE NEAR-TERM IDENTIFIED TARGETS LIST Geographical distribution of the targeted land Commentary Leipzig & Area Cologne 8% 1% Frankfurt Munich 5% & Area 15% 1.5bn GDV Hamburg 1.1bn GDV CG Gruppe key competitive advantage is the development of Quarters and complex integrated residential and commercial projects Sourcing via strong relationships with institutional investors, construction companies and banks Hamburg 28% 5.5bn GDV Stuttgart & Area 24% Berlin 19% Stuttgart & Area Berlin 0.5bn GDV 0.1bn GDV Cologne 0.3bn GDV Frankfurt 1.3bn GDV 0.8bn GDV Leipzig Large amount of Consus acquisitions are exclusive Identified targets include both acquisition of additional developers and new CG projects Short term identified target projects with 0.75bn secured and announced recently in 2018 1.2bn near-term identified targets of CG Gruppe Munich & Area Location of sites 3.5bn identified targets via acquisition of developer with potential to transform via Consus DNA Consus short term execution list of identified targets has the potential to double the existing GDV to around 10bn 19
6 COVERING THE ENTIRE VALUE CHAIN DIFFERENTLY: THE REAL ESTATE FACTORY ACQUISITION PROCUREMENT & BUSINESS DEVELOPMENT DEVELOPMENT PROJECT & DEVELOPMENT MANAGEMENT INSTITUTIONAL FORWARD SALES MARKETING & SALES MANAGEMENT CONSTRUCTION CAPABILITIES CONSTRUCTION & REHABILITATION ASSET MANAGEMENT PROPERTY & FACILITIES MANAGEMENT Land bank acquisition Acquisition based on clear set of acquisition criteria Business Plan and Risk Analysis Due Diligence Market Intelligence Property Acquisition Legal, Notary & Registry Development Planning via Digitalisation Marketing Strategy Architecture & Engineering Design Interior Design as well as Space Planning Estimating Costs & Budget Control Financial Advisory & Structuring Approvals, Licenses & Permits and Accounting Strong cash inflow from forward sales of units supports working capital build for construction Advertising & Communication Marketing & Branding Sales Negotiation Occupancy Planning Model Apartment Customer Relationship Management Digital construction through Building Information Modelling (BIM) Hardscaping and Infrastructures Building Construction Construction expenses primarily financed by forward sales Rehabilitation & Renovation Consus as integrated Real Estate Factory covering the entire value chain: Early forward sales before construction phase delivers early cash flows and de-risking of development projects Strong asset management team with already significant progress made in the history to extend WALT and reduce vacancy Lease Management After Sales Support Property Management Facilities Management 20
6 COMPETITIVE ADVANTAGE THROUGH DIGITALIZATION OF RESIDENTIAL DEVELOPMENT... 1 Setting New Building Standards Introduction of proprietary Building Information Modelling (BIM) Overview of BIM BIM is no Blackbox the system helps achieving predefined goals with the information given 100% 80% 60% 80% 80% Overview of BIM 80% Overall cost reduction of up to 30% 2 Digital Construction System BIM method for mass customization in residential development Creation of digital construction and development system via Digitales Bauen GmbH More information means increased input with low amount additional work BIM develops the 2D planning into a 5D construction model with all required data displayed Simple 2D Model 40% 20% 0% 3D Geometry model Analysis time savings Post preparment savings Illustration of BIM 20% 20% Material cost savings Project time reduction Risk reduction 20% Quality improvemnet Additional cost, time and effectiveness measurements 3 Mass Production with Best-In Class Partners Construction relationship with a mass parts producer and its own factory EMC European Modular Constructions GmbH with Flextronics and RIB Software as partner 2D 3D 5D The digitalisation of the mass production allows Consus to increase efficiency, decrease cost by up to 30% and implement changes much faster than its competitors 21
6 RESULTING IN COST ADVANTAGE ON TOP OF PROFITABILITY THROUGH OPTIMIZING ENTIRE DEVELOPMENT CHAIN Upside profit margin ~20% 60-65% Thereof approx. 15% Planning costs 15-20 % Land Construction Developer Margin 1 2 3 4 Margin upside potential: Institutional forward sale agreement allows Consus to capture upside from rent increases upon construction completion/renting of finished projects Favourable rent multiple embedded in institutional forward sales Strong incentive from institutional purchasers to acquire project through forward sale agreements as completed projects are valued at higher rent multiples Construction costs covered by forward contract: Min price forward sale contract clauses ensure costs are fully covered by institutional purchasers Contained risk of losses by the developer Up to 30% construction costs reduction potential: Standardisation of bathrooms / kitchens / layouts Direct labour employment Business Information Modelling (BIM) to planning Industrialized approach to construction Highly competitive land acquisition access: Long-lasting network built over decades with strong access to municipalities and key decision makers Well established player in the market with robust reputation Strong identified targets of new projects and ability to continuously source land at highly competitive prices Strategic advantage through targeting large size Quartier projects, commitment to develop and engagement with local communities Bottom up approach drives strong profitability at highly competitive sale prices 22
7 EXCELLENT LONG TERM DEVELOPMENT TRACK RECORD CARRÉ PARKAUE Berlin New Frankfurt Towers Berlin CARRÉ RAIMAR Berlin INTERDRUCK PALAIS Leipzig BAHRENFELDER CARRÉ Leipzig WEISSERITZ GÄRTEN Dresden 2000-2012 2013-2015 2016 3 2017 3 177 MM 1 701MM 1 911MM 1 1,100MM 1 Leipzig Berlin Leipzig Berlin Cologne Leipzig Berlin Frankfurt Dresden Cologne Top 9 cities # of apartments 1,920 # of apartments 1,738 # of apartments 762 # of apartments 681 m 2 residential 105,387 m 2 residential 124,922 m 2 residential 56,752 m 2 residential 52,187 m 2 commercial 46,644 m 2 commercial 60,574 m 2 commercial 10,660 m 2 commercial 4,486 # of employees 2 105 # of employees 2 223 # of employees 258 # of employees 420 GDV volume in MM 177 GDV volume in MM 524 GDV volume MM 211 GDV volume in MM 189 Note: (1) Cumulative projects sold and under construction / delivered (2) Number as of 2015 (3) Based on Management numbers and include not completely delivered projects 23
Development Model & KPIs
DEVELOPMENT: DIFFERENTIATED MODEL 1 2 3 4 5 Core Business Model Value Chain Size of development Development Product Calculation Approach Standardised rental apartment blocks (Mietwohnung) and integrated residential and commercial developments ( Quartiere ) Forward sale to institutional purchasers Fully integrated developer with own construction capabilities Well diversified development portfolio Several sources of financing incl. early forward sale Integrated residential and commercial developments ( Quartier ) Standardised 100+ apartments in top 9 cities Rightsized for demand (1-2 bedroom with 50-70 sqm) Bottom-up cost disciplined via standardised construction Average 2,000-2,500 /sqm all-in construction costs 6 Exit approach Minimum project duration (from time of construction begin until hand-over of project) of approx. 27 months, limiting risk and development exposure in final phase of construction through forward-sale model Benchmarked off market rents for good quality new development product in attractive regions within Germany s top 9 cities Institutional forward sale valuations at rent multipliers of approx. 20-25x 7 Cash flow profile Cash-flow recycling nature of the business 25
DEVELOPMENT ASSETS OVERVIEW Development Assets as of Development Balance Sheet ( MM) 2016 2017 Investment Property (related to developments) 183.2 213.7 Thereof Investment Property Finished 109.7 120.4 Thereof Investment Property under construction 73.4 93.3 Inventories 777.0 984.0 Thereof Real Estate Institutional 742.2 833.3 Thereof Real Estate Parking - 17.4 Thereof Real Estate ETW (Condominium Sales) 159.7 222.4 Thereof Construction Services 16.8 20.6 Thereof Prepayments for rental costs 3.6 2.3 Thereof less repayments received from forward sales (145.3) (111.9) Total investment and inventory development 954.0 1,186.4 Balance sheet values at fair value in Consus accounts of 1.21bn inventory Inventories include assets under construction (work in progress) and acquired land and buildings for the purpose of project development, Total inventories are up 27% Total assets development segment are up in total by 24% 299MM GDV Condominiums in construction 5.6% 329MM GDV Planning (Forward sold) 6.2% Project Portfolio by Status (as of March 2018) 46MM GDV Construction (No Forward Sale Yet) 0.9% 206MM GDV Yielding Assets 3.9% 752MM GDV New Acquired Projects 14.2% 1,332MM GDV 1 Construction (Forward Sold) 25.1% 2,334MM GDV Planning 44.1% Currently a total anticipated GDV volume of 1.7bn is under construction ~38% of entire GDV de-risked: under construction and/ or forward sold ~31% forward sold: total backlog at > 1.4bn Note: (1) Including institutional sale of property to ArtInvest 26
DEVELOPMENT PORTFOLIO: FORWARD VS. CONDO SALES Total Gross Development Split (by sqm) by Type Gross Development Split by Forward vs. Condo Sales Condominiums 10% Yielding Assets 13% 177,707 sqm Condominium projects 3 1.2bn MM ~164,465 m 2 Build to Hold Properties 0.2bn MM ~177,707 m 2 137,115 sqm Total 1,344,332 sqm 5.3bn GDV Institutional Sales 40% 536,019 sqm Projects already forward sold 2 Projects to be forward sold "Quartiersentwicklung" 26% 1,7bn MM ~374,800 m 2 2.2bn MM ~627,350 m 2 350,927 sqm Vertical Village VauVau (VauVau) 11% 142,564 sqm 49 Development Projects 5.3bn GDV 71% 1 of entire GDV with forward sales approach 1.4bn already presold 1.34 million sqm of sellable area Offices located across 8 cities Note: (1) Including all forward sales mostly Institutional and Vertical Village (2) Includes property sale to institutional (3) Condominium projects are reclassified on the right chart in two projects due to forward sales 27
TOP 10 DEVELOPMENT PROJECTS DIVERSIFIED Project Top 9 City GDV in MM Split Residential/ Commercial in % 2 Projected EBITA Margin in % Sellable area m 2 Current Status Forward Sale Project 1 Leipzig 1 793 61.8%/38.2% 25.6% 272,500 Planning Phase Forward Sale Forward Sales Status To be forward sold Until 2025 Project 2 Cologne 383 35.4%/64.6% 22.7% 95,132 Under construction 4 Forward Sale LOI 2018-2020 To be forward Project 3 Hamburg 354 46.3%/53.7% 30.1% 78,427 Planning Phase Forward Sale/ETW sold To be forward Project 4 Cologne 347 64.4%/35.6% 19.7% 71,583 Planning Phase Forward Sale sold To be forward Project 5 Frankfurt 283 53.8%/46.2% 16.7% 39,000 Planning Phase Forward Sale/ETW sold To be forward Project 6 Hamburg 232 100.0%/0.0% 14.3% 43,895 Planning Phase Forward Sale/ETW sold Project 7 Frankfurt 218 83.6%/16.4% 14.2% 37,745 Under construction Forward Sale Dec 2017 2020 Project 8 Frankfurt 217 74.7%/25.3% 31.7% 19,825 Planning Phase ETW/MABV n.a. 2021 Project 9 Berlin 201 88.2%/11.8% 26.9% 26,991 Under Construction ETW/MABV n.a. 2021-2023 3 Project 10 Düsseldorf 162 96.0%/4.0% 18.7% 23,553 Under construction Forward Sale Dec 2017 2021 Top 10-3,190 62.4%/37.6% 22.9% 708,651 - - - - Top 10 Projects in % of Total (based on GDV) 60% % of Top 10 Projects Forward Sale (based on GDV) 77% Delivery Date 2022 2024 2023 2023 Note: (1) Projects with different sub projects and delivery times (2) Based on square meters (3) Includes properties to hold (4) Partly under construction 28
DEVELOPMENT PORTFOLIO: TOP 9 CITIES ONLY Project Overview DUSSELDORF: 4 VauVau UpperNord Tower UpperNord Quartier 3 UpperNord Hotel Südtribüne (Dortmund) COLOGNE: 6 VauVau CologneApart Miner s Veltmanplatz 1 (Aachen) Cologneo I Cologneo II Cologneo III FRANKFURT: 6 VauVau Kaiserlei Vitopia Kampus Kaiserlei (2) Frankfurt Ostend Grand Ouest (2) STUTTGART: 1 Project acquired MUNICH: Project in acquisition Note: (1) Completed (2) Partly completed (3) Property Sale Dusseldorf Cologne Frankfurt Current Projects in place HAMBURG: 3 Bahrenfelder Carre Neuländer Quaree Billwerder Neuer Deich Stuttgart Hamburg Leipzig Munich In acquistion Berlin Dresden BERLIN: 7 VauVau XBerg Tower Steglitzer Kreisel (2) Hymat Feuerlandhöfe 2 DRESDEN: 6 VauVau MaryAnn Apartments Quartier Hoym (QIII) Carré Löbtau Königshöfe am Palaisplatz (2) Residenz am Postplatz LEIPZIG: 16 VauVau FourLiving Johannistor Residenz (2) Kunst- & Gewerbehöfe Plagwitz (4) Leipzig 416 (prev. Freiladebahnhof) Residenz am Waldplatz Dessauer / Hamburger Straße Residenz am Ernst Reuter Platz Carré Sama Riga Schuhmann s Gärten 1 Katharinenstraße Naunhofer Str. Ritterstraße TA-Pressehochaus Mariannenpark 29
% of Total GDV Volume DELIVERY OF EXISTING PROJECTS 12% Diversification on Single Development Projects volume by project phase in MM 1 Top 10 Projects 10% 8% 6% 4% 2% 0% 2017 2018 2019 2020 2021 2022 2023 2023 2024 2025 2026-2% Completion Date Consus has a great diversification among its development projects in its time frame Note: (1) Size of bubbles dependent of GDV size in MM, Timing of completion latest completion date chosen, with potential subprojects being finished earlier; Large development project is re-clustered on the basis of commercial and residential parts. Leipzig project (indicated 2025) has various sub-stages, for simplicity reasons and to be aligned with other projects the last point of completion for the last sub-stage of the project is assumed 30
DEVELOPMENT KPIs IN DETAIL Statistics 2016 + 2017 Completed Overview of Development Projects as of 31.03.2018 2016 2017 Total Revenue of Development Segment 3 (in MM) 74.5 205.2 Number of apartments built 195 552 Average sales price range ( /sqm) 2 3,000 2,900 3,300 3,800 Achieved rent multiplies range (x) 2 18x-19x 18x-20x Total area (in sqm) 14,200 43,208 Thereof residential 14,085 38,722 Thereof Commercial & Others 115 4,486 # of Units Floor area (in sqm) GDV (in MM) Currently under construction 3,580 333,468 1,676,935 Thereof residential 3,580 239,626 Thereof commercial 93,842 Planned construction start in 2018 5 2,006 214,480 884,224 Thereof residential 2,006 131,585 Thereof commercial 82,895 In planning stage 5,863 618,678 2,531,683 Thereof residential 5863 378,324 Thereof commercial 240,353 Build to hold/completed 150 177,707 205,730 Total 11,599 1,344,332 5,298,571 Area Sold (in sqm) Realized Average Price (1) (in per sqm) GDV Sold (in MM) 14,200 115 14,085 43,208 4,486 38,722 2016 2017 Residential Commercial 3,130 3,335 2016 2017 47 161 2016 2017 Notes: (1) Blended commercial and residential (2) Residential properties only (3) Includes revenues from rents and others (4) Based on Management numbers and include not completely delivered projects (5) Includes property sales/partly finished projects 31
NEW PERCENTAGE COMPLETION REPORTING STANDARDS New Accounting principles apply for Consus New IFRS 15 standard Revenue from Contracts with Customers being adopted from 1/1/2018 Percentage of completion accounting, reflecting fact that assets are being built for a specific customer and are unique Impact is earlier recognition of revenue and margins vs. previously only at delivery EBITA tracks cashflow more closely Projects initially recognised in inventory at cost, prior to a forward sale at this time, all costs are capitalized At signing of forward sale, all revenue and EBIT relating to proportion of costs already incurred is recognised at that date After forward sale, as costs are incurred, revenue and EBIT are recognised proportionately based on expected profitability of the project Impact on P&L by Project Expect approx. 30% of revenue to be recognised on signing If expected profitability changes, it is reflected in EBIT recognition at that time New mandatory Percentage Completion Accounting will provide accurate proxy of project status New mandatory Percentage Completion Accounting will provide more accurate reported revenues and EBIT in line with progress and also tracking cash flow more closely 32
ILLUSTRATIVE DEVELOPMENT STAGES FOR INDIVIDUAL PROJECT: PERCENTAGE COMPLETION METHOD Land Acquisition Illustration of standard forward sold development project cash flow Development / Forward Sale Construction Delivery Cash Flow Statement Cash Inflows - 30% (1) 60% 10% 100% Acquisition / Capex (20%) (5%) (50%) - (75%) Opex - - (4%) (1%) (5%) Operating Cash Flow (20%) 25% 6% 9% 20% Cumulative Cash Flow (20%) 5% 11% 20% 20% Financing Cash Flow 15% (15%) - - - Change in Cash (5%) 10% 6% 9% 20% Profit & Loss Account Revenue - 31% 68% 1% 100% COGS - (25%) (50%) - (75%) Opex - - (4%) (1%) (5%) Contribution Margin - 6% 14% 0% 20% Balance Sheet Inventory 20% - - - - Contractual Assets - 31% 99% - - Contractual Liabilities - (30%) (90%) - - Financing (15%) - - - - Note: (1) first settlement on forward sales right after building permission before start construction Cumulative 33
FINANCIALS AND TARGETS
ACCOUNTING AND REPORTING STANDARDS Accounting Standards: First Time Consolidation IFRS audit for Consus group by Grant Thornton and all key subsidiaries (CG Gruppe and GxP are separately audited) First time consolidation of CG Gruppe under IFRS, previously German GAAP First time consolidation of GxP under IFRS Acquisition accounting results in fair value adjustments for CG Gruppe and GxP balance sheets. All inventory on CG Gruppe balance sheet fair valued as of 31.12.2017 Independent valuation appraisals as of 31 December 2017 for key development assets (CG Gruppe) by JLL Independent valuation appraisals as of 31 December 2017 for commercial assets (GxP, Consus, CG Gruppe) by BNP Paribas New percentage of completion IFRS accounting standard applied to development going forward. FY 2017 Preliminary Financials: Key Elements Consolidated P&L FY 2017 not representative as consolidation of CG and GxP close to year end 2017 FY 2016 and FY 2017 consolidated P&L for CG Gruppe under IFRS provides previous performance for the development segment Consolidated Balance Sheet FY 2017 including Development Balance Sheet FY 2017 provided under IFRS Key KPIs (see next page) Core development KPIs reported on quarterly basis (GDV, Forward sold volume, received payments, sqm area sold) 2017 revenue recognition at delivery (as completed) 35
REPORTING STANDARDS: OPERATIONAL KPIs PUBLISHED Overview of Key KPI s Current GDV 5.3bn GAV Commercial 527MM GDV break-down Projects already forward sold: 1.7bn Projects to be forward sold 2.2bn; Condominium Projects: 1.2bn Build to hold 0.2bn NAV Commercial 227MM Current Contracted forward sales 1.4bn Run-rate ø interest rate 6.3% Current Prepayments (received 2018YTD) 131MM Net Debt/EBITA 1 (based on medium term EBITA target) Approx. 5.1x Identified Targets 4-5bn ROCE Development Run-Rate ~30% Total debt 1,590MM Targeted Medium Term EBITA Approx. 300MM 36
FY 2017 PRELIMINARY RESULT HIGHLIGHTS 1 2 3 4 Development Portfolio with strong Growth FY 2017 Consolidated Financials Development Profitability on Track (CG Gruppe) Progress of Development incl. Forward Sales GDV of existing projects 31/12/2017: 4.6bn, and 5.3bn as of 31/03/2018 GDV of additional acquisition 2018YTD: 752MM GDV of remaining identified targets: 4-5bn Revenues of 9.2MM due to first consolidation of CG and GxP at the end of 2017 EBIT of 6.6MM including remeasurement of investments Total consolidated debt of 1,590MM and total cash and cash equivalents of 71MM Total revenues from development segment sales 2017: 205MM Development segment EBIT 2017: 91.4MM Development segment EBIT margin: 45% Development segment ROCE 2017: ~30% 1.4bn forward sold in total, excluding completed projects 0.8bn forward sold in 2017 0.5bn Pre-Payment Received in 2017 131MM Payment Received in 2018 YTD 37
CONSUS FINANCIAL SNAPSHOT / OVERVIEW PRELIMINARY RESULTS Financial Profile Proforma Basis ( MM) 2016 2017 Development Segment Revenues 2 74.6 205.2 Change in project related Development inventory 298.9 118.7 Overall performance development 373.4 323.9 Development EBIT 42.3 91.4 Development EBIT margin (%) 56.7% 44.5% Revenues from commercial yielding assets (Consus/GxP) n.a. 3 16.9 1 Commercial yielding EBITDA 4 (Consus/GxP) n.a. 4.2 1,2 GAV Commercial n.a. 527.4 NAV Commercial n.a. 226.6 Group - Total Debt 1,589.5 Group - Net Debt 1,518.2 Group - Equity 816.2 LTV (%) (Development CG Group) 68% LTV (%) (Commercial yielding assets of GxP and Consus) 59% 1 4 5 Comments 1 Consus development (CG Gruppe) was first time consolidated as an associate as of closing of CG contribution on 2 November 2017 and fully consolidated end December 2 Revenues included are therefore on a proforma basis for CG Gruppe with 205.2MM development revenues added to overall performance 3 As of November 10, 2017 Consus acquired 58.0% of the shares in GxP German Properties AG. Full year GxP has been added on proforma basis 4 Commercial GAV of 527.4MM and NAV of 226.6 are on 100% basis 5 Total group debt of 1,589.5MM includes Consus bonds of 150.0MM and convertible bonds of 200.0MM, commercial debt of 181.8MM and development loans of 1,008MM Note: (1) Consus commercial assets + GxP proforma (2) Excludes remeasurement gains 38
2017 P&L BREAKDOWN: DEVELOPMENT SEGMENT Development Profit & Loss Statement ( MM) 2016 2017 Revenues 74.6 1 205.2 Increase of inventory of unfinished products 298.9 118.7 Overall performance 373.5 323.9 Cost of Materials (307.4) (203.2) Net income from the remeasurement of investment properties 3.9 4.9 Other operating income 3.8 11.4 Personnel expenses (12.7) (20.4) Other operating expenses (18.1) (19.7) EBITDA 43.0 2 92.5 EBITDA Margin in % 57.6% 45.0% Depreciation and amortization (0.7) (1.1) EBIT 42.3 91.4 Financial Income 3.7 0.3 Financial Expenses (29.3) (67.8) Share of profit or loss associates accounted for using the equity method - - EBT 16.7 23.8 Income tax expenses (4.5) (6.0) EAT 12.2 17.8 Comments Revenues include proceeds from sale of property development. Sales accounted for 161.5MM and construction & other services accounted for 22.1MM in 2017. Letting activities of investment properties stood at 21.6MM 1 EBITDA generation by CG Gruppe with 93MM in 2017 which is 140% up from 2016. 2 39
2017 EBITDA BREAKDOWN: DEVELOPMENT SEGMENT ( MM) 2017 Development Profit & Loss Statement Reclassified capitalised interest Rent & Other Services Development Projects Completed projects Revenues 205.2 1-37.9 6.4 160.9 Increase of inventory of unfinished products 128.7 57.1 (6.8) 167.9 (103.9) Overall performance 333.9 2 57.1 31.1 174.3 57.0 Cost of Materials (203.2) - (18.0) (160.6) (24.5) Net income from the remeasurement of investment properties (4.9) - - 4.9 - Comments 1 Development P&L includes rent, projects in development as well as completed contract sales 2 The major element which impacts the reported profitability is the capitalization of the interest costs and their positive EBITA impact while a project is under development, plus the negative input on EBITA when a completed contract is sold 3 Once all these items are adjusted for, the average EBITA margin achieved for completed projects in 2017 was 20%, including the sale to an ArtInvest which achieved an exceptional gain Other operating income 11.4 - - 11.4 - Personnel expenses (20.4) - - (20.4) - Other operating expenses (19.7) - (3.2) (16.4) - EBITDA 92.5 3 57.1 9.9 (6.9) 32.4 EBITA 91.4 57.1 8.8 (6.9) 32.4 EBITA Margin in % 45.0% - - 20.1% Note: Completed projects include: Feuerlandhöfe, Quartier am Veltmanplatz, Schuhman s Gärten, Otto Suhr Alle and the sale of UpperNord Quarter commercial development & ArtInvest 40
CONSUS GROUP - BALANCE SHEET OVERVIEW Balance sheet - Assets ( MM) 2017 Non current assets 1,250.8 Investment property 1 527.4 Advance payments on investment property 10.5 Property, plant and equipment 4.9 Goodwill 2 700.1 Other intangible assets 2.9 Financial assets 5.0 Current assets 1,375.6 Work-in-progress including acquired land and buildings 3 1,211.8 Trade and other receivables 56.3 Receivables from related parties 27.8 Tax receivables 0.3 Financial assets 2.6 Other assets 5.5 Cash and cash equivalents 4 71.3 Total assets 2,626.4 1 Commercial assets of Consus + GxP Assets + CG Gruppe 2 Goodwill in the amount of 700.1MM is attributable to CG acquisition and 1.6MM is attributable to GxP acquisition 3 Fair value of development inventory, following acquisition accounting 4 Consus Group had 71MM cash as of 31 December 2017 Comments Balance sheet Equity & Liabilities ( MM) 2017 Equity 5 816.2 Subscribed capital 79.9 Capital reserves 574.7 Other reserves (8.3) Non-controlling interests 169.9 Non-current liabilities 1,125.7 Financing liabilities 6 1,013.6 Other liabilities 8.4 Deferred tax liabilities 103.7 Current liabilities 684.5 Financing liabilities 7 575.9 Provisions 3.4 Trade payables 46.5 Liabilities to related parties 6.0 Tax payables 17.4 Received prepayments 0.3 Other liabilities 35.0 Total Equity and Total Liabilities 2,626.4 5 Total equity amount of 816MM Total non-current financing liabilities are divided by various facilities at CG, GXP and Consus itself, including the 200MM convertible bond as well as notes in the amount of 150MM both issued in Nov 2017 6 7 Total current financing liabilities mainly property financing facilities, planned to be refinanced by forward sales 41
CONSUS GROUP - DEBT BREAK DOWN Balance Sheet Capitalization in EUR MM as of 31 December 2017 Comments Total CG: 1,008 MM Consus + GxP Commercial: 193MM 1,008 193 200 Total Consus: 389MM 150 39 71 1,590 1,518 1 No minorities or SPVs 2 Projects are fully owned via CG Gruppe All Debt on balance sheet All projects are fully consolidated on the balance sheet Clear structure and smart financing in place 448 Debt overview Maturity Interest rate 560 Issued Notes Nov 2024 4.75% Convertible Bond Nov 2022 4.00% Average Consus 1 6.3% STD CG LTD CG Total CG Commercial Assets Debt Convertible Bond Bond Debt Holding Total Debt Cash Net Debt Note: (1) Average Interest Rate based on holding convertible, bonds, CG debt and Commercial asset debt 42
DEVELOPMENT FORWARD SALES BACKLOG AND EBITA Forward Sales Backlog in MM Corresponding EBITA in MM 2,000 1,800 Completed + Contracted + LOI: 1.7bn 3 Forward sales backlog > 1.4bn in total incl. LOI s delivering max. on revenues 350 Corresponding EBITA for both total backlog as well as 2018 forward sold projects 1,600 1,400 1,200 1,000 800 600 400 200 0 338 840 82 68 77 289 1,2 Total Forward Sales Backlog 2 Contracted + LOI: 1.4bn 338 1,2,3 LOI: 0.3bn 2018 Forward Sales Backlog 300 250 200 150 100 50 0 Total Corresponding Total Historical EBITA 2018Current Corresponding EBITA 2018 Year of Forward Contract Completed 2014+earlier 2015 2016 2017 2018 A high percentage of the development sales is forward-sold in with corresponding EBITA Note: (1) LOI Commitments (2) Two projects with total forward sales volume of 308MM previously under 2017 have been favorably renegotiated and are shown under 2018, additionally one project with 35MM GDV has been delivered end 2017 (3) As of April; Excludes property sales of 79MM 43
DEVELOPMENT VOLUME AND IDENTIFIED TARGETS IN DETAIL Approx. 21 projects Approx. 900,000 sqm 4.8 Approx. 70 projects Approx. 2,200,000 sqm 10.1 Approx. 44 projects Approx. 1,190,000 sqm 4.6 Approx. 5 projects Approx. 150,000 sqm Approx. 49 projects Approx. 1,340,000 sqm 0.8 5.3 2017 GDV GDV Recently Secured in 2018 Current GDV Identified Targets GDV Total GDV 44
DEVELOPMENT: KEY TARGETS Average size per unit 50-70 sqm Standardised rental apartment blocks (Mietwohnung) Average Rent/sqm/month 13-18 Quality product focused on the most liquid cities in the rental market Rent multiplier 20-25x Favourable rent multiple embedded in institutional forward sales Existing GDV + Identified Targets ( MM) 5.3bn + 4.8bn Strong GDV backlog and further identified targets for growth Targeted EBITA margin Approx. 20% Diversified development mix with targeted EBITA margin of approx. 20% Medium term EBITA Target Medium term Net Debt/ EBITA Target Development ROCE run-rate (%) Approx. 300MM Approx. 3.0x ~ 30% Already strong EBITA conversion Planned deleveraging over the next years Strong conversion of invested capital Consus real estate development arm has a unique business model differentiated from standard developers resulting in earlier cash flows and minimized overall and individual development risk 45
CONTACT AND SHARE INFO Consus Real Estate AG Kurfürstendamm 188-189 10707 Berlin Deutschland Tel.: +49 (0) 30 965 357 90 260 E-Mail: info@consus.ag Press Contact: RUECKERCONSULT GmbH Peter Dietze Felberg Telefon: +49 (0)30 28 44 987-62 E-Mail: consus@rueckerconsult.de ISIN / WKN Contact Basic Data ISIN:DE000A2DA414 WKN: A2DA41 Financial Calendar 30 FY 2017 (prelim.) Financials Release 1 May 2018 Capital Markets Day London (UBS / Deutsche Bank) 2 May 2018 Roadshow London (UBS) 7 May 2018 Roadshow Frankfurt (Deutsche Bank) 8 9 May 2018 Roadshow New York / Boston (UBS / JP Morgan) 16 19 May 2018 Stockpicker Summit (Hauck & Aufhäuser) 23 May 2018 Publication of 2017 Annual Report 6 June 2018 m:access Real Estate Conference in Munich 24 25 September 2018 Baader Investment Conference October 2018 Publication of Half Year Report Shareholder Structure Market segment Frankfurt, Xetra and Munich Share capital (1) Market Capitalisation 79.85MM Approx. 639MM Free Float 30.3% Aggregate Deutschland S.A. 69.7% Free float Approx. 30% 46
APPENDIX: DEVELOPMENT PROJECTS - Historical Project KPIs - Ongoing Project Overview
ONGOING DEVELOPMENT PROJECTS (EXCERPT) Project Name Xberg Quartier (HYMAT) City Berlin GDV 126MM Building Permit No End of Construction 2019/2022 Total sqm 55,466 (37% Residential) Project Name Xberg Tower City Berlin GDV 151MM Building Permit Partly End of Construction 2023 Total sqm 24,727 (61% Residential) Project Name Vitopia Kampus Kaiserlei City Frankfurt GDV 121MM Building Permit Yes End of Construction 2020 Total sqm 78,896 (57% Residential) Project Name UpperNord Tower (VauVau) City Düsseldorf GDV 162MM Building Permit Yes End of Construction 2021 Total sqm 28,770 (78% Residential) Project Name CologneApart City Cologne GDV 135MM Building Permit Yes End of Construction 2020 Total sqm 21,769 (47% Residential) Project Name Leipzig 416 City Leipzig GDV 793MM Building Permit No End of Construction 2019/2025 Total sqm 272,500 (62% Residential) Project Name Frankfurt Ostend City Frankfurt GDV 283MM Building Permit No End of Construction 2023 Total sqm 78,896 (57% Residential) Project Name Grand Ouest City Frankfurt GDV 91MM Building Permit Yes End of Construction 2019 Total sqm 9,078 (100% Residential) 48
HISTORICAL DEVELOPMENT PROJECTS: FOUR OUT OF 85 PROJECTS COMPLETED IN MORE DETAIL Actual Completion 31.12.2016 Actual Completion 31.12.2015 GDV 27.3MM GDV 56.5MM # of Residential Units 98 # of Residential Units 335 Exit Multiple/Yield/Avg. Price 19.0x / 5.2% / 3,310 m 2 Exit Multiple/Yield/Avg. Price 17.0x / 5.8% / 2,344 m 2 Total costs 23.3MM Total costs 53.5MM Dresden Friedrichsstadt Weißeritz Gärten 8,254m 2 Residential Rent per m 2 per month 13 (resi) Price per m 2 at exit 3,310 Actual EBIT 4.0MM Realised EBIT Margin 14.6% Forward Sale Yes /Institutional KAG (signed in Jan 15) Leipzig Goldschmidtstraße LKG Carré 22,221m 2 Residential, 1,277m 2 Retail and 613m 2 Office Rent per m 2 per month 10 (resi), 11-13 (comm) Price per m 2 at exit 2,344 Actual EBIT 3.0MM Realised EBIT Margin 5.4% Forward Sale Yes/Institutional KAG (signed in Dec 12) Actual Completion 31.12.2015 Actual Completion 31.12.2016 GDV 61.1MM # of Residential Units 209 GDV 20.0MM # of Residential Units 97 Exit Multiple/Yield/Avg. Price 18.4x / 5.4% / 3,334 m 2 Exit Multiple/Yield/Avg. Price 18.4x / 5.4% / 3,362 m 2 Total costs 54.5MM Total costs 18.0MM Rent per m 2 per month 14 (resi), 25 (comm) Rent per m 2 per month 15 (res), 17 (comm) Berlin Bismarckstraße Carré Raimar Price per m 2 at exit 3,334 Actual EBIT 6.6MM Realised EBIT Margin 10.7% Berlin Suhr-Allee Carre Charlotte II Price per m 2 at exit 3,362 Actual EBIT 2.0MM Realised EBIT Margin 10.1% 17,258m 2 Residential, 547m 2 Retail and 521m 2 Office Forward Sale Yes /Institutional KAG (signed in Mar 12) Residential 5,831m 2 and 115m 2 Retail Forward Sale Yes/Institutional KAG (signed in Nov 12) 49
CARRE RAIMAR CURRENT MARKET ENVIRONMENT OFFERS STRONGER MULTIPLES Carre Raimar Forward Sold in March 2012 Carre Raimar Forward sale in March 2018 (Conservative Assumptions) Actual Completion 31.12.2015 GDV 61.1MM # of Residential Units 209 Exit Multiple/Yield/Avg. Price 18.4x / 5.4% / 3,334 m 2 GDV 84MM # of Residential Units 209 Exit Multiple/Yield/Avg. Price 23x / n.a. / 4,420 m 2 Berlin Bismarckstraße Carré Raimar 17,258m 2 Residential, 547m 2 Retail and 521m 2 Office Total costs Rent per m 2 per month 54.5MM 14 (resi), 25 (comm) Price per m 2 at exit 3,334 Actual EBIT 6.6MM Realised EBIT Margin 10.7% Forward Sale Yes / Institutional KAG (signed in Mar 12) Berlin Bismarckstraße Carré Raimar 17,258m 2 Residential, 547m 2 Retail and 521m 2 Office Total costs Rent per m 2 per month 65MM 16 (resi), 25 (comm) Price per m 2 at exit 4,420 m 2 Actual EBIT 19MM Realised EBIT Margin 22% Current Market Sentiment The project Carre Raimar was sold in March 2012 to an Institutional KAG with a rent per month per sqm of approx. 14, in todays environment the project could be forward sold with a rent per month per sqm of approx. 16 This results in a large increase of the realized EBIT Margin to around 22% that would mean an increase of more than 100% We have applied conservative market assumptions in todays environment increasing the exit multiple by around 4.5x points We also have assumed a cost increase of around 19%. In the real life scenario this would be highly reduced due to our BIM solution 50
APPENDIX: MARKET OVERVIEW - Macroeconomic landscape - Real estate market landscape
2010 2011 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E ATTRACTIVE HOUSING SECTOR FUNDAMENTALS IN THE GERMAN RESIDENTIAL MARKET By far largest population and number of households with further expected household growth Forecast of total population per country in 2020 (mm) 82.8 65.7 Forecast of total households per country in 2020 (mm) 66.7 0.3% 0.5% 0.6% 0.7% 1.4% 0.5% 0.4% Households expected to grow at ~0.3% p.a. over the next years 0.3% 0.2% 0.2% 41.3 32.8 46.5 19.4 27.8 18.9 11.0 Source: EIU Germany France Spain UK EU average (2.0%) Source: EIU, Destatis Positive long-term outlook for German household growth combined with increased urbanisation and stable home ownership supporting the rental model Urban population in % of total (%) +4% +4% +5% 84% 84% 80% 80% 80% 75% 2015 2035 +4% 87% 83% +4% 73% 77% Home ownership in % of total (%) 65% 65% 2014 2016 79% 78% 64% 63% 70% 69% 53% 52% Germany France Spain UK EU average Germany France Spain UK EU average Source: United Nations Source: Eurostat 52
WELL POSITIONED IN THE TOP 9 CITIES Residential prices ( /sqm) Residential rents ( /sqm) Trend index 1 Demography index 2 Population growth 2012-2030 Munich Stuttgart Frankfurt Freiburg Ingolstadt Hamburg Regens Heidelb Erlangen 3,790 3,743 3,737 3,539 3,521 3,466 3,200 3,114 5,733 Munich Stuttgart Frankfurt Freiburg Ingolstadt Hamburg Wiesbaden Heidelberg Erlangen 15.4 12.1 11.8 10.9 10.6 10.2 10.2 10.2 10.0 Leipzig Munich Frankfurt Munster Cologne Kiel Augsburg Dresden Berlin 2.0 1.1 1.0 0.6 0.6 0.5 0.5 0.5 0.4 Munich Dresden Leipzig Wiesbaden Berlin Dusseldorf Bonn Hamburg Frankfurt 1.5 1.3 1.1 0.9 0.7 0.6 0.5 0.5 0.3 Munich Leipzig Berlin Frankfurt Bonn Hamburg Dresden Wiesbaden Stuttgart 8% 8% 8% 7% 7% 6% 6% 6% 17% Dussel 2,998 Mainz 9.9 Stuttgart 0.4 Cologne 0.3 Cologne 5% Augsburg 2,934 Dusseldorf 9.9 Nuremburg 0.3 Nuremberg 0.2 Nuremburg 5% Karlsruhe Cologne Berlin Wiesba Mainz Wuerzb Darmst Ulm Nuremb 2,918 2,906 2,901 2,871 2,845 2,814 2,811 2,757 2,732 Darmstadt Karlsruhe Cologne Wuerzburg Nuremberg Regensburg Augsburg Mannheim Berlin 9.7 9.7 9.6 9.4 9.3 9.2 9.2 9.1 9.1 Bielefeld Karlsruhe Hamburg Mannheim Dusseldorf Monchengladbach Wiesbaden Chemnitz Wuppertal -0.1-0.1-0.2-0.2-0.3-0.3 0.2 0.1 0.1 Stuttgart Mannheim Hannover Braunschweig Bielefeld Aachen Bremen Munster Dortmund -0.1-0.1-0.1-0.2-0.2-0.3-0.3-0.4 0.0 Mannheim Dusseldorf Munster Karlsruhe Augsburg Braunschweig Hannover Bremen Kiel 4% 4% 4% 3% 2% 2% 1% 1% 1% Top 9 cities with Consus focus Top 9 cities consistently show the strongest profile based on various economic and social factors Source: WirtschaftsWoche, HWWI/Berenberg-Städteranking (1) Trend index includes data from Statistische Ämter des Bundes und der Länder, 2017): Population development 2011-2015, Employment development 2011-2014, Productivity development 2011-2014; (2) Demography index includes data from BBSR 2017, Bertelsmann-Stiftung 2017: Population growth 2012-2030, Population of 20-year-olds 2012-2030, Average fertility rate 2010 2012 2014, Development of civil working population 2012-2030; Both indices are calculated by averaging a city s difference to the mean of all 30 largest German cities, relative to the standard deviation, for every data set included in the respective index 53
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011¹ 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E UNDERSUPPLY OF NEW RESIDENTIAL REAL ESTATE CREATES A STRONG MARKET FOR RESIDENTIAL DEVELOPERS Average household size Source: Destatis Favourable household development in Germany (m) 1 and 2 person households 3 and more-person households 2.00 2.00 1.99 1.95 40.8 41.2 41.6 42.6 9.9 10.1 10.1 9.5 30.8 31.2 31.5 33.1 2015A 2016A 2017A 2025E Strong disposable income growth and low financing cost 2010 2013 2016 2017 government bond yield (%) Index 100 0.3 0.8 1.6 1.2 1.6 +2.3% 115 +1.4% 108 109 +1.3% +1.7% 108 +0.4% 1 105 104 100 100 100 99 100 101 100 111 3,000 2,500 600,000 480,000 360,000 240,000 120,000 0 Continuing supply / demand imbalance (units) 3.6 3.7 3.8 3.9 3.9 4.1 3.9 3.7 3.7 3.6 3.4 3.3 3.1 3.0 3.0 2.8 2.5 2.0 1.6 Source: Statistisches Bundesamt, Savills, UBS Research Supply (New constructed apartments) Demand (Additional households) Vacancy Construction costs below selling price since 2015 /m 2 Ttl construction cost (land and construction cost, in /m²) 2,957 3,500 Condominium prices (in /m²) /m 2 Market Opportunity for real estate development players % 4.5 3.6 2.7 1.8 0.9 1.1 0.7 0.0 2,813 /m 2 2,000 Germany France Spain UK EU average 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: ECB, EUI, 1 2010-2013 CAGR Source: Destatis/ Empirica Consus operating in attractive market segment with high demand 54
DRIVING HIGHLY ATTRACTIVE YIELD SPREADS AS WELL AS RISING HOUSING PRICES Attractive rental yield spreads versus >20 years of strong and constant rental price growth 5.0% Bundesbank 10Y year-end yield Rental yield 140 130 120 Rental-price index 110 4.0% 100 3.0% 2.0% Global financial crisis Expected economical recovery and loosening monetary policy 90 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 Source: Statistisches Bundesamt - Residential rental price index Lower cost inflation versus significant price increases 6.0% 6.0% House price growth Development 4.7% 1.0% 4.0% 2.0% 3.5% 3.1% 3.1% 2.5% 2.0% 1.8% 1.6% 2.1% 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Bulwiengesa, Bloomberg 0.0% 2012 2013 2014 2015 2016 Source: Eurostat, Destatis; Cost inflation as % increase of residential new-build construction price index, House price growth as % increase of housing-price index Attractive yield spreads and continuously increasing housing prices lead to positive fundamentals for the German residential real estate market 55
SHORTAGE OF HOUSING PERCEIVED AS ONE OF THE MOST IMPORTANT ISSUES ISSUE IN GERMANY Most Important Topics in 2017 German Election Lack Of Development in Large German Cities Widely Disclosed in German Press Refugees and Integration Shortage of housing and increased living costs Infrastructure 31% #2 concern of 27% German citizens in the current election 22% There is not enough development and too expensive development Hundred of thousands of apartments are missing and still not enough is built. 1 The rents are increasing in the top cities in Germany, people who are searching for apartments don t find anything affordable anymore. The Mieterbund is highly concerned of social disparities if this trends continuous. The middle class is already affected by it. 3 A shortage of around 1,000,000 apartments in Germany thereof the main part in the main 7 cities. 2 A shortage of around 1,000,000 Tenants are receiving higher and higher burdens due to increased rents. 4 Safety 16% 0% 10% 20% 30% 40% In Munich it is all about housing shortage and unaffordable rents. 5 Source: Quotes translated / paraphrased from respective newspaper articles; (1) See Focus, September 2017; (2) See Focus, July 2017; (3) See Stern, July 2017; (4) See Stuttgarter Zeitung, July 2017; (5) See Suddeutsche Zeitung, August 2017 56
SIGNIFICANT SHORTAGE OF END PRODUCT : TOP 9 CITIES Supply and Demand of Apartments Across Germany s top 9 Cities p.a. 20,000 19,222 80% 18,000 16,000 60% 59% 57% 60% 59% 70% 60% 14,000 12,000 41% 42% 12,853 45% 41% 50% 10,000 8,000 6,000 4,000 2,000 7,723 3,401 1,409 9,908 5,843 5,072 2,929 5,566 3,071 2,896 2,286 1,266 1,225 1,200 5,918 3,492 40% 30% 20% 10% 0 Berlin Stuttgart Hamburg Cologne Munich Düsseldorf Leipzig Dresden Frankfurt Demand Supply Under Supply in % of Demand Across the Top 9 cities in Germany there is an undersupply of around 65,000 apartments per annum Until the year 2030 around 1,100,000 new build apartments are needed to meet only the annual average demand over the years 2011 until 2015 Source: www.iwkoeln.de as of 2016; Supply is the average of years 2011-2015 0% 57
Berlin Stuttgart Hamburg Cologne Munich Duesseldorf Frankfurt Dresden Leipzig 1 1 6.1 6.3 7.1 7.3 11.6 12.0 12.3 13.0 13.5 14.0 12.0 12.2 12.5 13.4 13.7 14.0 12.6 12.9 13.2 14.8 15.3 15.8 17.0 18.0 18.5 LOW AND DECREASING VACANCIES AND RISING PRICES IN TOP 9 CITIES 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 400,010 Persisting Shortage of Apartments in the top 9 cities 64,090 158,100 86,190 196,860 Total shortage of over 1,100,000 apartments until 2030 44,370 62,883 52,000 73,780 Berlin Stuttgart Hamburg Cologne Munich Düsseldorf Leipzig Dresden Frankfurt...driving increasing Apartment Rental Prices per sqm First occupancy avg. rents / sqm 2016 2017 2018 2016-2018 CAGR +4.3% +3.3% 20 +3.8% +2.2% 18 +3.0% +2.1% +2.4% 16 14 12 +2.2% +2.8% 10 8 6 4 2 0 Source: IW Köln, Leipziger Volkszeitung, Planet Home, Aengevelt, Kommunale Statistikstelle Dresden Source: DG HYP, Wüest & Partner Deutschland; (1) Based on 2016, 2017 H1 median prices, CAGR 2016-17 Consus is focusing on the most undersupplied market segment: Residential apartments to be developed in the top 9 cities with steadily increasing rental prices 58
APPENDIX: DIGITALISATION - Industrial Approach - Real estate market landscape
AND BEST-IN-CLASS DEVELOPMENT AND VALUE-ADD SERVICES AND PRODUCTS SOUGHT BY TENANTS AND OCCUPIERS High quality development product Value-add services and products Well located, quality product focused on the most liquid parts of the rental market Track record of high occupancy and strong rental and capital growth Specifically designed for institutional market, maximising efficiency of maintenance to minimize drop through of gross to net yield Above average ceiling heights Floor heating Fitted kitchens Built-in wardrobes Electric blinds High quality floor coverings and ceramics Cat-7 cabling Partitions with sliding doors Low surface showers Real wood parquet Touch panel and smart Home Solar thermal energy and rainwater recovery Architectural art Digital rental process Best-in-class developments: affordable, intelligent, ecological and future oriented 60
BIM: WHY IS IT SO EFFECTIVE? INTEGRATED PLANNING + TIME REDUCTION + CONST CONTROL + ECONOMIES OF SCALE 1 Effective cooperation Direct contract between client and contractor Project developer, project manager and BIM manager at all time involved Architect coordinates the planning and is BIM certified Coordination of structural engineer (Statiker), Architect and Technical building engineer (TGA Planer) 2 Avoid planning conflicts Before the start of construction there is a digital project simulation and the planning takes place in virtual space (LAB) Planning merged into consolidated model and tested for conflicts Parameters can be quickly adjusted and changed if necessary Clarification on the entire project impact possible 3 Cost control and savings itwo interlinks technical and calculative building processes (data to accounting) Costs and billing information are available on a daily basis and offers are transmitted electronically (bidder management) Decision-making is moved forward, meaning reduced overhead costs for the overall project = no additional costs for the project ITWO quantifies, taking into account all considerations, the planned and execution quantities in the consolidated building model with exact calculation Increase of speed and efficiency with the processing of procurement processes (simplification and higher transparency) 4 Improved construction processes Result Eliminate intermediate Good cost distributors control The products of the Suppliers are stored on Reduced down YTwo and are connected to time at the planning software Components are thus construction site= Reduced selected specifically for the construction software and are planned for costs the right time at the construction with possible Time efficiency just in time production Economics of Optimal cost control possible through selection and scale comparison Fully Construction processes can transparency thus be simulated and for suppliers as optimized in advance, therefor the use of machines well internal and materials are easy to process control Key Facts: Long term contractual agreements between CG Gruppe and the JV by Flextronics and RIB Currently 14 of the 49 projects are using the BIM software, with all future projects being solely realized with BIM Intelligent Cockpit Substantial amount of investment for the implementation has already taken place and the two year integration process has been completed, CG has a competitive advantage over competitors that are currently not using this software of up to two years 61
OVERVIEW OF BIM TECHNOLOGY: ACHIEVING PREDEFINED GOALS WITH THE GIVEN INFORMATION CG BIM Manager Manages the Project via itwo 4.0 Sets guidelines for Revit, the product catalogue, attributes, etc. Architect/ Technical Planners Plans BIM model in Revit, etc., with properties from the CG product catalogue Design elements added via Precast software THINK B-IQ EMC Sales Project visualization from the model Sales launch conducted by RVG or an external partner Selection of fixtures & features General Contractor Receives the order/bim model from the CG Gruppe Conducts procurement in YTWO Retrievals/ Logistics Shopping Cart Supply Chain Management (SCM) of the CG product catalogue in YTWO Overall project control via itwo4.0 Facility Management January 2018 62
THINK B-IQ IMPLEMENTATION: TARGETING COST REDUCTION OF UP TO 30% BIM 6D Relationship Relationship RiB itwi 4.0 Software for integrated and consistent model-based procedures in construction Expands the traditional range of tasks (planning, financing, calculations, building sequence control and monitoring) into the visual, model-based processes of Building Information Modeling (BIM) Parts catalogue YTWO DIPLAN Building system Revit plu-in etc. Floor plan generator Visualisation/ Configuaration Prefabrication Highly-automated prefabrication plant to be built in Erfurt Individual construction through serial production Significantly reducing labour costs per sqm/concrete resulting in high profitability within sector Wall elements are estimated to have cost advantage of up to 30% of the market price 400,000 m² of wall and ceiling elements per year (approx. 1,950 residential units) 2017 2018 2019 2020 63
Verträge, AIA (i.p) Vergabe Planung BAP LPh 1-2 Start BIM LPh 3-4 LPh 5 LPh 6-7, itwo Vergabe Bauleistungen, YTWO Abrechnung / Controlling / As-built-Model Verträge, AIA Vergabe Planung BAP LPh 1-2 LPh 3-4 Start BIM mit externem Modell LPh 5 LPh 6-7, itwo Vergabe Bauleistungen, erledigt YTWO, an GU Abrechnung / Controlling / As-built-Model Verträge, AIA Vergabe Planung BAP LPh 1-2 Start BIM LPh 3-4 LPh 5 Verträge, AIA (i.p) Vergabe Planung BA P LPh 1-2 Start BIM LPh 3-4 LPh 5 LPh 6-7, itwo Vergabe Bauleistungen, YTWO Abrechnung / Controlling / As-built-Model LPh 6-7, itwo Vergabe Bauleistungen, YTWO Abrechnung / Controlling / As-built-Model OVERVIEW OF BIM TECHNOLOGY: BIM PILOT PROJECTS Projekt: VSS - Hamburg Projekt: HAU Berlin (2 Projekte) Zeitstrahl Zeitstrahl Planung der Planung Planung der Planung Projektkennzahlen Immobilientyp Wohnen + Gewerbe Verkaufstyp institutionell / Forward Projektvolumen ca. 97 Mio. BGF / BRI 33.212m² / 289 WE z. Miete Baubeginn Baugrube Q1 / 2018 Baufertigstellung Q4 / 2020 (Abnahme K.) Verkaufsstatus 100% Status Tektur eingereicht Genehmigung (Oktober 2017) Projektbeteiligte ARC TGA TWP Fassade (Revit) (Revit) (Allplan) JMJ Architekten Gohl-TGA AWD - Ingenieure Projektkennzahlen Immobilientyp Wohnen + Büro Verkaufstyp institutionell / ETW Projektvolumen ca. 277 Mio. BGF / BRI 81,000 m² / Baubeginn 2019/2021 Baufertigstellung 2022/2023 Verkaufsstatus 0% Status Genehmigung B-Plan Verfahren (siehe Bild) Projektbeteiligte ARC TGA TWP Fassade unters. Projekt: EUN - Köln BIM Zeitstrahl Projekt: WPL - Leipzig Zeitstrahl Planung der Planung NO BIM NO BIM NO BIM Projektkennzahlen Immobilientyp Verkaufstyp Projektvolumen BGF / BRI Baubeginn Baufertigstellung Verkaufsstatus Status Genehmigung Planung der Planung Büro institutionell 13,5 Mio. 5.134m² / 19.823m³ Juli 18 2020 0% n.a. Projektbeteiligte ARC TGA TWP Fassade (Revit) (Plancal / DDS) (Revit) kadawittfeldarchitektur SL Projektmanagement GmbH IDK Kleinjohann Projektkennzahlen Immobilientyp Wohnung / Gewerbe Verkaufstyp institutionell / Forward Projektvolumen ca. 25 Mio. BGF / BRI 5.600 m² Baubeginn 01.08.2017 Baufertigstellung 01.04.2019 Verkaufsstatus 100% Status Genehmigung Im Bau Projektbeteiligte ARC (Revit) TGA (Revit) TWP (Allplan) Fassade Homuth Architekten / FORMITAS Sahlmann & Partner / FORMITAS Lochas & Forner 64
PROJECT EXAMPLE VSS - HAMBURG Projekt: VSS - Hamburg Preplaning Drafting and Approval Planning Execution Planning Tendering procedure 97 Mio. EUR Q1 2018 Q4 2020 (Abnahme K.) 65
APPENDIX: ACCOUNTING POLICIES
ACCOUNTING POLICIES: PoC vs. COMPLETED CONTRACT Illustration of new accounting principles and the effect on Consus Completed Contract Time Period (1) Time Period (2) Time Period (3) Handover Total Sales 0 0 0 100 100 Change in inventories 25 13 52 (90) 0 Construction Cost (COGS) (20) (10) (50) 0 (80) EBITA 5 3 2 10 20 Financing Costs (5) (3) (2) 0 (10) EBT 0 0 0 10 10 EBITA Margin - - - - 20% Comments Historical 2016/2017 Completed Contract Revenue only recognized at completion EBIT at completion, post capitalized interest In development capitalized interest is a positive EBIT Percentage of Completion Time Period (1) Time Period (2) Time Period (3) Handover Total Sales 25 13 63 0 100 Change in inventories - - - - - Construction Cost (COGS) (20) (10) (50) 0 (80) EBITA 5 3 13 0 20 Financing Costs (5) (3) (2) 0 (10) EBT 0 (1) (11) 0 10 2018ff Percentage of Completion Revenue recognized in line with cost incurred Revenue reflects expected margin for project Interest cost expenses below the line EBITA Margin - - - - 20% 67
LEADING GERMAN RESIDENTIAL REAL ESTATE DEVELOPER #1 Residential Developer in top 9 German Cities 1 Strong market share in undersupplied residential market with ~1MM units shortfall 49 Development Projects representing 5.3bn GDV 2 Approx. 420 Employees focused on construction and sales Strong real estate development track record Completion of more than 85 projects with over 1.3bn in value across top 9 cities Development risks mitigated through Forward Sale Current forward sales backlog of 1.4bn; projects to be forward sold of 2.2bn Cost Savings via Digitalization+ Industrialization Up to 30% cost savings through digitalization, mass production and procurement Notes: (1) CG is the third largest developer in the top 7 cities according to Bulwiengesa Projektentwicklerstudie 2018. Management believes CG is the overall market leader in the top 9 German cities (Top 7 cities plus Leipzig, Dresden and Offenbach (2) GDV=Gross Development Value; Including 5 new projects with a total GDV of 750MM that have been secured on the 16 68