Instone Real Estate Group AG

Investor Presentation • Sep 20, 2019

INVESTOR PRESENTATION

ROADSHOW SEPTEMBER 2019

Disclaimer

Table of Contents

01 | 2019 Key Achievements

• 02 | Corporate Acquisition
• 03 | Portfolio Review
• 04 | Update Operating Environment
• 05 | H1 2019 Financial Performance
• 06 | Outlook
• 07 | Appendix

2019 Key Achievements

Operational achievements	 H1 2019 business development in line with our expectations – Construction launched for 5 projects (€160m exp. sales volume); €132m of concluded sales contracts  Successfully re-organized corporate level financing with 3-year term loan (€200m) in Q2 and promissory note (€98.5m) in Q3  Strategic corporate acquisition of residential development platform in northern Bavaria  Approved (y-t-d) new projects with aggregate €689m expected sales volume (incl. corporate acquisition)  Acquisition and sale of large project in German metropolitan region expected to become unconditional & effective in FY 2019
Financial performance	 Adjusted revenues increased by 25% to €174.2m (previous year: €139.4m)  Adjusted gross profit margin of 33.6% (previous year: 26.1%)  Adjusted EBIT almost tripled to €32.3m (previous year: €11.9m)  Adjusted Net Income significantly improved to €27m (previous year: -€2.0)
Outlook	 FY 2019 outlook significantly increased taking into consideration the large project in a German metropolitan region  Mid-term revenue guidance until FY 2022 confirmed with full coverage by existing projects

Table of Contents

01 | 2019 Key Achievements

02 | Corporate Acquisition

• 03 | Portfolio Review
• 04 | Update Operating Environment
• 05 | H1 2019 Financial Performance
• 06 | Outlook
• 07 | Appendix

Transaction Highlights and Rationale

Well established platform in new region with 30+ years track record in residential development

2

1

C. €300m secured pipeline; €250m identified short-term acquisition pipeline

3

4

Attractive ROCE

Mid-term margin optimization

Acquisition of highly skilled resources and well established platform in attractive region of Northern Bavaria, previously not covered by Instone

Near-term revenue potential with around 85% of revenues from secured pipeline expected until 2022

Consideration is equivalent to 8% post tax unlevered Return on Capital for Instone plus platform value

Instone "single awarding" of works will drive mid-term margin increase (avg. margin of existing projects at 20.5%)

Summary Transaction Terms and Financing

Total consideration of €74m for all outstanding equity and financial debt and including all transaction costs

• €4m consideration for the platform
• €67.5m consideration for acquired projects; equivalent to 8% post tax unlevered return on capital for Instone
• €2.5m transaction cost

Agreed earn-out for additional pre-identified 4 projects

• Consideration will be equivalent to 8% unlevered return on capital for Instone
• Earn-out limited to projects actually delivered within 7 months post closing (closing expected for end of August)

Cooperation agreement with Sontowski & Partner Group targeting joint development of mixed use quarters where Instone will cover the residential development part

Transaction will not require external financing

• c €40m of project level debt expected to remain in place; terms in line with other Instone project level financing agreements
• c €34m of total to be paid from cash at hand based on recent corporate level debt financings
• Transaction results in pro-forma post acquisition leverage as of Q2 2019 of 3.5x Net Debt to LTM adjusted EBITDA

Table of Contents

• 01 | 2019 Key Achievements
• 02 | Corporate Acquisition

03 | Portfolio Review

• 04 | Update Operating Environment
• 05 | H1 2019 Financial Performance
• 06 | Outlook
• 07 | Appendix

Development of Project Portfolio

• In 2019 approved new projects of total €689m expected sales volume (including S&P portfolio)

New projects (YTD 2019):

]

	Project / Location	Exp. sales volume	Exp. Units (~)
e n o	Hamburg / Rothenburgsort	€182m	716
	Hamburg / Behringstrasse	€34m	70
t s n	Herrenberg III / Schäferlinde	€55m	141
I	Leipzig / Rosa-Luxemburg-Str.	€116m	330
u a b	Nuremberg / Seetor	€103m	199
	Nuremberg / Schopenhauerstr.	€65m	101
t d a	Nuremberg / Student Housing	€65m	461
t S P	Regensburg / Marina Bricks	€28m	50
& S	Rosenheim / Student Housing	€22m	151
	Erlangen / City Center Developm.	€19m	32
	Total	€689m	~2,251

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Large Project in a German Metropolitan Region

• Large inner-city project in German metropolitan region
• Around 124K sqm gross floor area

• 1,200 units

• Existing masterplan
• Expected sales volume of ~€600m and gross margin of ~18%; Attractive IRR
• Expect the purchase agreement for the property will become unconditional and effective in the current financial year
• Expect the recently agreed sale of the relevant property to an institutional investor in the form of a share deal will also become unconditional and effective in the current financial year

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Table of Contents

• 01 | 2019 Key Achievements
• 02 | Corporate Acquisition
• 03 | Portfolio Review
• 04 | Update Operating Environment
• 05 | H1 2019 Financial Performance
• 06 | Outlook
• 07 | Appendix

Rent regulation: Proposals of Federal Government & Berlin Senat

Federal Government	Berlin Senat (proposal for Berlin only)
Mietpreisbremse • The "Mietpreisbremse" shall be extended by 5 years until 2025 • The period under review for the determination of the "Mietspiegel" (basis for "Mietpreisbremse") shall be extended from currently 4 to 6 years • In case of re-letting the new rent may still exceed the "Mietspiegel" by max. 10% • Overpaid rent can be reclaimed by the tenant retroactively for a period of 2.5 years after conclusion of the rental contract • New built apartments remain exempt from the "Mietpreisbremse" (incl. apartments being used and leased for the first time after 1 Oct 2014)  Federal Government targeting rapid parliamentary implementation of the new regulations (by YE 2019)	Mietendeckel "Rent cap"  New apartments built after Jan 1, 2014 are excempt from rent cap, also in case of new lettings • Rents for multi-family residential are supposed to be frozen at levels of 18/6/19 for a period of 5 years • New lettings should be limited by rent caps depending on the age and the equipment of the property • 12 different rent caps are supposed to vary between €3.92 €9.80 per m2 to and shall fully replace the Mietspiegel • If the actual rent in case of a new letting is still below the rent cap level, annual rent increases of 1.3% should be possible until the rent cap is reached • The draft allows some moderate rent increases of max. €1.40 per m2 as a result of modernisation investments (if they have taken place in last 15 years); max. €1.00 per m2 if modernisation takes place after the law becomes effective • Tenants can apply for rent reduction if currently contracted net cold rents exceed 30% of their disposable income	Proposed Date 18 Jun 31 Aug 15 Oct 31 Oct - 12 Dec 20 Dec 11 Jan	time table: Event Senate approved key elements of proposed law Draft law available Senate approves draft Berlin parliament debates draft Parliament approves law Law comes in effect

How will Instone be affected?

Instone portfolio by region Instone portfolio by region - unsold per H1/2019

• Berlin "unsold"
  • Owner occupiers: 3.1%
  • Buy-to-let investors: 0,6%
  • Institutional investors: 0,7%

Assessment of Instone Customer Sensitivity

	Owner occupiers	Institutional buyers	Buy to let investors
e c n a v e el R	▪ Will continue to be the largest single source of sales for Instone ▪ Affordability remains strong and with compelling ownership vs rent economics	▪ Municipal and state owned property companies key buyers of rent restricted units ▪ Pension funds and insurance companies active buyers of Instone projects to cover regular payment obligations	▪ Historically focused on Instones listed property projects considering significant tax benefits ▪ In addition, strong and consistent interest to buy small to medium sized new build appartments
fits e n o n nst e b I y r e o K f	▪ Attractive customer group and still on average prepared to pay a premium over institutional buyers ▪ Huge pent-up demand and lack of comparable products in rental market ▪ Attractive financing environment	▪ Pricing increasingly competitive ▪ In selective instances exceeding owner occupier sales prices for the right product and location ▪ Significant pressure to invest in yielding assets expected to accelerate in light of depressed rates environment	▪ Additional source of demand with broader regional flexibility compared to owner occupiers ▪ Less focused on immediate yield ▪ Looking for save haven investment alternatives with mid- to long term capital appreciation potential ▪ Typical investment of €200,000 – 300,000 ▪ Significant share of repeat customers
n o o y t ati vit ut g nsiti e r nt e S e r	▪ Expected to be essentially insensitive to rent regulation ▪ More likely to increase demand to buy as rent regulation will reduce available product	▪ Berlin currently uninvestable for most institutions ▪ Expected to further increase focus on new built versus standing properties outside of Berlin ▪ Appetite to invest (outside Berlin) remains unabated	▪ Financing cost vs initial rental yield more relevant than rental regulation

Persistent supply demand imbalance for residential units in Germany

Table of Contents

• 01 | 2019 Key Achievements
• 02 | Corporate Acquisition
• 03 | Portfolio Review
• 04 | Update Operating Environment

05 | H1 2019 Financial Performance

• 06 | Outlook
• 07 | Appendix

H1 2019 Results of Operations

H1 2019 Results of Operations (€m, ppa adj.)
	H1 2019	H1 2018	Delta
Revenues	174.2	139.4	25.0%
Project cost	-115.7	-103.0	12.3%
Gross profit	58.5	36.4	60.7%
Margin	33.6%	26.1%
Platform cost	-26.2	-24.5	6.9%
EBIT	32.3	11.9	271%
Margin	18.5%	8.5%
Financial Result	-3.1	-4.5	31.1%
EBT	28.4	7.3	389%
Margin	16.3%	5.2%
Taxes	-1.4	-9.3	-84.9%
Tax rate	4.9%	127.4%
Net income	27.0	-2.0	>100%

• Gross profit margin of 33.6% reflects exceptionally high share of revenue contribution from high margin projects in H1 2019
• 18.5% EBIT margin driven by strong gross margin and economies of scale
• Significantly lower tax rate driven by recognition of tax loss carryforwards (following approval of a domination and profit transfer agreement with a subsidiary)

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18

Revenue Recognition (illustrative) Volume of Sales Contracts (illustrative)

| (Revenue recognition under Instone Group's adjusted results of operations, which is the basis of the Company's forecast, will continue to reflect share deals and asset deals in the same way, i.e. equivalent to the requirements stipulated in IFRS 15 irrespective of an expected IFRS IC decision to exclude share deals from revenue recognition over time in accordance with IFRS 15)

Operating Cash Flow

In € million	H1 2019	H1 2018
EBITDA	34.3	12.1
Other non-cash items	-0.1	3.7
Taxes paid	-6.3	-4.5
Change in working capital	-26.4	-67.4
thereof new land plot acquisition payments	-51.4	-19.0
Operating cash flow	1.5	-56.11

¹ without reimbursements if IPO costs from former shareholder

• Operating cash flow prior to new land investments exceeding €50m for H1

Leverage

In € million	H1 2019	H1 2019	FY 2018
	actual	pro-forma*
Corporate debt	67.0	101.2	66.1
Project related debt	215.1	255.1	199.5
Financial debt	282.1	356.3	265.5
- Cash and cash equivalents	102.0	102.0	88.0
Net financial debt	180.1	254.3	177.5
EBITDA (adjusted) (LTM)	72.3	72.3	50.2
Net debt/adjusted EBITDA	2.5x	3.5x	3.5x
Gross corporate debt / adjusted EBITDA less project interest expenses	1.1x	1.6x	1.6x

*Incl. acquisition of S&P

• Moderate leverage of 3.5x pro-forma for our S&P acquisition

Financing Structure Provides Basis for Growth

• Corporate level refinancing largely completed
• €200m term loan signed in Q2
• Successful completion of new €98.5m promissory note
• Tax optimisation implemented
• Negotiation re syndicated RCF well advanced

Future growth fully funded

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Table of Contents

• 01 | 2019 Key Achievements
• 02 | Corporate Acquisition
• 03 | Portfolio Review
• 04 | Update Operating Environment
• 05 | H1 2019 Financial Performance

06 | Outlook

07 | Appendix

Increased FY 2019 Outlook

• Increased FY 2019 outlook in consideration of large project in German metropolitan region
• Expected significant rise of adjusted revenues, adjusted EBIT and volume of sales contracts
• Adjusted gross margin of around 24% assumed to be lower than previous outlook due to forward sale of large project. Not considering large project adjusted gross margin of around 28% would have been confirmed.

Mid-term Revenue Guidance Comfirmed & Fully Covered by Existing Projects

Revenue* Guidance (adjusted)

• Medium term guidance for adjusted revenues until FY 2022 confirmed
• Guidance for FY 2020-2022 adjusted revenues fully covered by existing projects
• Further revenues from large project planned to be spread over FY 2020-2024

(*Revenue guidance including impact from large project in German metropolitan region)

(**% figures as of 30/06/19; referring to midpoint of guidance; incl. S&P acquisition pro forma and large project in German metropolitan region)

Table of Contents

• 01 | 2019 Key Achievements
• 02 | Corporate Acquisition
• 03 | Portfolio Review
• 04 | Update Operating Environment
• 05 | H1 2019 Financial Performance
• 06 | Outlook

07 | Appendix

Project Cost

H1 2019	€k
Cost of materials	-160,563
Changes in inventories	+48,358
Indirect sales cost	-1,294
Capitalized interest on changes in inventories	-2,195
Total project cost	-115,695

Total platform cost -26,166

H1 2019 €k Personnel expenses -16,543 Other operating income +2,614 Other operating expenses -13,989 Indirect sales cost +1,294 Subsequent expenses for company acquisition +458 Platform

Other operating expenses

• Technical and business
• Non-deductible input tax
• Rentals and leasing costs
• court costs, attorney's and
• distribution and
• travel and entertainment
• insurance costs
• year-end expenses
• operating costs

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Cost

Income statement (reported) Commentary

	In €m	H1 2019	H1 20181
1	Total revenue	170.1	131.5
	Changes in inventories	48.4	15.0
		219.3	146.5
	Other operating income	2.6	0.7
2	Cost of materials	-160.5	-116.6
3	Staff costs	-16.5	-14.4
	Other operating expenses	-12.0	-11.4
	Depreciation and amortization	-2.0	-0.2
	Earnings from operative activities	30.9	4.6
	Income from associated affiliates	-0.4	-0.1
	Other net income from investments	0.0	0.0
	Finance income	0.7	0.8
4	Finance costs	-6.2	-5.9
	Changes of securities classified as financial assets	0.2	-0.1
	EBT (reported)	25.2	-0.6
5	Income taxes	-0.4	-6.8

Net income (reported) 24.9 -7.4

1

2

In the first half year of 2019, the Instone Group increased its revenues significantly compared to the same period in the previous year. Revenues amounted to €170.1 million (adjusted previous year: €131.5 million). Significantly increased sales ratios in Q1 2019 and the significant increase in construction progress in H1 2019 increased revenues by €38.6 million.

Purchase price payments for land already secured in previous years – mainly for the "City Prague", Stuttgart, "Rote Kaserne", Potsdam, "Garden City", Dortmund and "Wiesbaden-Delkenheim" projects in Q1 2019 as well as for the "Friedberger Landstraße" and "Idsteiner Straße", both Frankurt a.M. projects in Q2 2019 – and the increase in construction activities for project developments led to an increase in the cost of materials to €160.5 million (adjusted previous year: €116.6 million).

Staff costs in H1 2019 were €16.5 million (previous year: €14.4 million) – a light increase mainly due to the increase in the FTE figure of 267.3 (previous year: 247.5). 3

Financing costs are slightly higher than last year, despite a stronger increase in financial liabilities. 4

Income taxes for the first six months of the current year are about €-0.4 million (previous year: €-6.8 million). The positive development mainly results from the recognition of tax loss carryforwards of the parent company from previous years. 5

Condensed balance sheet Commentary

In €m	H1 2019	FY 2018
Non-current assets	13.7	2.8
Inventories	453.0	404.4
Contract assets	134.2	158.5
Other receivables	24.9	33.0
Cash and cash equivalents	102.0	88.0
Current assets	714.0	683.8
Total assets	727.7	686.6
Total equity	272.2	246.7
Financial liabilities	189.4	177.7
Other provisions and liabilities	17.9	8.5
Deferred tax liabilities	29.6	32.2
Non-current liabilities	236.9	218.4
Financial liabilities	92.7	87.8
Trade payables	70.7	78.3
Other provisions and liabilities	55.2	55.1
Current liabilities	218.6	482.7
Total equity and liabilities	727.7	686.6

7

6 As at 30 June 2019, inventories had risen to €453.0 million (previous year: €404.4 million). This increase in inventories results from the increased completion of work-in-progress and the increase in land acquistion.

The receivables from customers for work-in-progress already sold and valued at the current completion level of development sunk to €453.9 million (previous year: €466.9 million), due to the deliveries of completed projects. Advance payments received from customers amounted to €327.8 million (previous year: €318.1 million). Capitalised direct sales costs fell to €8.1 million (previous year: €9.7 million). The balance of these items resulted in a moderate reduction in contract assets to €134.2 million (previous year: €158.5 million).

Overall financial liabilities increased to €282.1 million as at 30 June 2019 (previous year: €265.6 million). This increase by a total of €16.5 million resulted from the financing of the increased completion of project developments and the increase in land acquistion. 8

Trade payables decreased to €70.7 million (previous year: €78.3 million). This was primarily attributable to the lower advance performance of the subcontractors as of the balance sheet date. 9

Condensed cash flow statement Commentary

	In €m	H1 2019	H1 20181
	Consolidated earnings	24.8	-7.4
	Other non-cash income and expenses	4.6	2.0
	Decrease / increase of inventories, contract assets, trade receivables and other assets	-16.7	146.2
	Increase / decrease of contract liabilities, trade payables and other liabilities	-5.0	-162.8
	Income taxes paid	-6.3	-4.5
10	Cash flow from operating activities	1.5	-26.6
11	Cash flow from investing activities	-0.0	0.8
	Free cash flow	1.5	25.8
	Increase of issued capital incl. contributions to capital reserves	0.0	150.5
	Increase from other neutral changes in equity	0.0	-9.1
	Repayment of shareholder loans / Payout to non-controlling interests	0.0	-28.3
	Cash proceeds from borrowings	131.7	58.8
	Cash repayments of borrowings	-117.3	-86.9
	Interest paid	-1.8	-5.5
12	Cash flow from financing activities	12.5	79.6
	Cash change	14.0	53.8
	Cash and cash equivalents at the beginning of the period	88.0	73.6
	Cash and cash equivalents at the end of the period	102.0	127.4

• Cash flow from operations of the Instone Group amounting to €1.5 million in the half year under review (previous year: €–26.6 million) was mainly marked by the increase in payment outflows. This is due to purchase price payments for land already secured in previous years – mainly for the "City Prague", Stuttgart, "Rote Kaserne", Potsdam, "Garden City", Dortmund and "Wiesbaden-Delkenheim" projects – and the increase in completion of project developments. 10
• Cash flow from investing activities in the first half year of 2019 was insignificant at €– 0.0 million (previous year: €0.8 million). 11
• Cash flow from financing activities in the quarter under review was below the level of the same period of the previous year at €12.5 million (previous year: €79.6 million). This includes incoming payments from new loans of €131.7 million and repayments for projectrelated loans of €117.3 million. 12

¹ Previous year's figure adjusted

Project Portfolio Key Figures

In € million	Q2 19	Q1 19	Q4 18	Q3 18	Q2 18	Q1 18
Volume of sales contracts	69.0	62.8	206.2	104.2	120.0	30.0
Project Portfolio (as of)	5,091.7	4,790.2	4,763.2	3,620.3	3,589.1	3,408.5
thereof already sold (as of)	1,128.7	1,061.1	998.2	971.9	867.8	779.9

In units	Q2 19	Q1 19	Q4 18	Q3 18	Q2 18	Q1 18
Volume of sales contracts	120	170	459	245	273	56
Project Portfolio (as of)	11,628	11,041	11,041	8,924	8,863	8,355
thereof already sold (as of)	2,684	2,564	2,395	2,283	2,038	1,849

(Unless otherwise stated, the figures are quarterly values)

Project Portfolio (as of 30/06/19)

Portfolio summary as of 30.06.2019

• €5,092 expected sales volume
• C. 91% in key metropolitan regions
• 47 projects
• 11,628 units
• €1.4 bn exp. sales volume (28% of portfolio) in construction or pre-construction – thereof €1.1bn already sold (78%; 2,684 units)
• ~80sqm average unit size
• ASP of €5,336 per sqm

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H1 2019 – Revenue Contribution (Top Projects)

Project	City	Adj. Revenues (€m)
Quartier Stallschreiber Strasse / Luisenpark	Berlin	44.1
Wohnen am Kurpark / Wilhelm IX	Wiesbaden	24.1
Marienkrankenhaus	Frankfurt	21.1
City Prag – Wohnen im Theaterviertel	Stuttgart	18.9
Heeresbäckerei	Leipzig	18.8
Franklin	Mannheim	12.0
Rebstock	Frankfurt	10.5
Sebastianstrasse / Schumanns Höhe	Bonn	6.4
west.side	Bonn	6.1
Therese	Munich	4.4
Others		7.8
Total		174.2

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H1 2019 – Volume of Sales Contracts (Top Projects)

Project	City	Volume (€m)	Units
Quartier Stallschreiber Strasse / Luisenpark	Berlin	37.0	70
Marienkrankenhaus	Frankfurt	28.4	29
Sebastianstrasse / Schumanns Höhe	Bonn	19.9	45
Theaterfabrik	Leipzig	14.5	49
Wohnen am Kurpark / Wilhelms IX	Wiesbaden	14.0	22
Schulterblatt	Hamburg	4.3	52
Franklin	Mannheim	3.9	12
Others		9.8	11
Total		131.8	290

H1 2019 – Construction Launches

Project	City	Exp. Sales Volume (€m)	Units
City-Prag – Wohnen im Theaterviertel	Stuttgart	~110	~250
Theaterfabrik	Leipzig	~20	~75
Sebastianstrasse / Schumanns Höhe (1st section)	Bonn	~18	~55
Friedrich-Ebert-Strasse	Leipzig	~10	~15
Fregestrasse	Leipzig	~2	~5
Total		~160	~400

Sales Offer as of 30/06/19 (Top Projects)

Project	City	Sales volume (€m)	Units
Marienkrankenhaus	Frankfurt	121.8	105
Quartier Stallschreiber Strasse / Luisenpark	Berlin	51.3	70
Schwarzwaldstrasse	Herrenberg	47.6	117
Sebastianstrasse / Schumanns Höhe	Bonn	36.1	103
Wohnen am Kurpark / Wilhelms IX	Wiesbaden	23.4	28
Others		19.6	16
Total		299.8	439

Project Portfolio as of 30/06/19 (projects >€30m sales volume, representing total: ~€4.9bn)

Project	Location	Sales volume (expected)	Land plot acquired	Building right obtained	Sales started	Construction started
Hamburg
Essener Straße	Hamburg	Mio 94 . €
Schulterblatt	Hamburg	91 Mio . €
Kösliner Weg	Norderstedt-Garstedt	105 Mio . €
Sportplatz Bult	Hannover	120 Mio . €
Behringstraße	Hamburg	34 Mio . €
Rothenburgsort	Hamburg	Mio 182 . €
Berlin
Quartier Stallschreiber Straße / Luisenpark	Berlin	236 Mio . €
Wendenschloss	Berlin	125 Mio . €
Rote Kaserne West	Potsdam	47 Mio . €
NRW
Sebastianstraße / Schumanns Höhe	Bonn	Mio 68 . €
Niederkasseler Lohweg	Dusseldorf	Mio 80 . €
Dusseldorf Unterbach / Wohnen im Hochfeld	Dusseldorf	141 Mio . €
west.side	Bonn	185 Mio . €
Gartenstadtquartier	Dortmund	100 Mio . €

35 | a) Semi-filled circle means that the milestone has yet been achieved for sections of the project (land plot acquisition, start of sales or construction). Concerning the building right the semi-filled circle means that the zoning process has been initiated. No circle for "land plot acquired" means that the land has not yet been purchased but secured by contract.

Project Portfolio as of 30/06/19 (projects >€30m sales volume, representing total: ~€4.9bn)

Project	Location	Sales volume (expected)	Land plot acquired	Building right obtained	Sales started	Construction started
Rhine-Main
Wiesbaden-Delkenheim, Lange Seegewann	Wiesbaden	92 Mio. €
Siemens-Areal	Frankfurt am Main	545 Mio. €
Marienkrankenhaus	Frankfurt am Main	210 Mio. €
Rebstock	Frankfurt am Main	50 Mio. €
Friedberger Landstraße	Frankfurt am Main	324 Mio. €
Elisabethenareal	Frankfurt am Main	58 Mio. €
Wohnen am Kurpark / Wilhelms IX	Wiesbaden	103 Mio. €
Steinbacher Hohl	Frankfurt am Main	42 Mio. €
Gallus	Frankfurt am Main	41 Mio. €
Leipzig
Heeresbäckerei	Leipzig	122 Mio. €
Semmelweisstraße	Leipzig	69 Mio. €
Parkresidenz	Leipzig	216 Mio. €

36 | a) Semi-filled circle means that the milestone has yet been achieved for sections of the project (land plot acquisition, start of sales or construction). Concerning the building right the semi-filled circle means that the zoning process has been initiated. No circle for "land plot acquired" means that the land has not yet been purchased but secured by contract.

Project Portfolio as of 30/06/19 (projects >€30m sales volume, representing total: ~€4.9bn)

Project	Location	Sales volume (expected)	Land plot acquired	Building right obtained	Sales started	Construction started
Baden-Wurttemberg
City-Prag - Wohnen im Theaterviertel	Stuttgart	Mio 126 €
Wohnen am Safranberg	Ulm	49 Mio €
Franklin	Mannheim	69 Mio €
Schwarzwaldstraße	Herrenberg	48 Mio €
S`Lederer	Schorndorf	Mio 87 €
Neckartalterassen	Rottenburg	Mio 115 €
Schäferlinde	Herrenberg	56 Mio €
Bavaria
Therese	Munich	136 Mio €
Ottobrunner Str 90/92	Munich	83 Mio €
Beethoven	Augsburg	Mio 135 €
Project	metropolitan region German	€ Mio ~600

37 | a) Semi-filled circle means that the milestone has yet been achieved for sections of the project (land plot acquisition, start of sales or construction). Concerning the building right the semi-filled circle means that the zoning process has been initiated. No circle for "land plot acquired" means that the land has not yet been purchased but secured by contract.

Instone is a leading residential developer in Germany

~€2bn

Expected sales volume of approved projects in 2018 and 2019 ytd

~€5.3bn

Expected sales volume of project portfolio as of 2019 ytd First mover in building up a nationwide residential developer platform in Germany

Focus on developing modern, urban, multifamily, residential buildings

Established operating platform with abilityto achieve further scale gains

Attractive project portfolio and identified acquisition opportunities underpinning strong and profitablegrowth

Prudent approach to risk management

Proprietary and tailored management information system

Diligent site selection criteria leading to attractive and consistentreturns

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Instone has successfully positioned itself as a leading and scalable real estate development platform with rapid growth prospects

Source: Company information.

39 |

(1) Based on expected sales volume for fully developed projects as of 31 December 2014

(2) Based on expected sales volume for fully developed projects as of 31 December 2016

(3) Based on expected sales volume for ongoing projects when fully developed as of August 2019

Rigorous control over the entire development process

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S&P Stadtbau - Operating in an Attractive Market

2018	Purchasing power p.c. (€)	Purchasing power index (%)
Erlangen	27.875	121.2	S &
Regensburg	25.853	110.9	P m a rk
Nuremberg	24.310	104.2	et s
Munich	31.308	134.2	C u
Duesseldorf	27.744	119.0	rr e n t
Frankfurt	26.684	114.4	In st o
Stuttgart	26.466	113.5	n e
Bonn	26.152	112.1	m a rk
Hamburg	25.725	110.3	et s
Augsburg	22.417	96.1
Berlin	21.746	93.2

• Metropolitan region Nuremberg (c. 1.3m residents) is ranked #1 in economic growth in Germany
• Further population growth of c. 8% excepted until 2030 with estimated 34.000 additional residential units needed over the next years
• Several large companies are head-quartered in the region (Siemens, adidas, Puma, Schaeffler, Diehl, Leoni) as well as several Bavarian and German authorities (BAMF). The university Nuremberg-Erlangen (40.000 students) is among the largest in Germany

Source: von Poll Market Report for residential Properties in Germany

Financial Calendar:

16 Sept 19	Roadshow Frankfurt
20 Sept 19	Roadshow Paris
24-25 Sept 19	Roadshow London
15-17 Oct 19	Roadshow New York/Boston/Toronto
26 Nov 19	Publication of Quarterly Statement as of 30 September 2019

Contact

Thomas Eisenlohr Head of Investor Relations Instone Real Estate Group AG Grugaplatz 2-4, 45131 Essen T +49 201 45355-365 | F +49 201 45355-904 thomas.eisenlohr@instone.de investorrelations@instone.de www.instone.de