Abitare In

Investor Presentation • Nov 27, 2024

AbitareIn

EUROPEAN MIDCAP CONFERENCE NOVEMBER 27, 2024

OUR MISSION

To satisfy the HOUSING NEEDS of today's families With an INDUSTRIAL AND SCALABLE business model

RESIDENTIAL PROJECTS

By focusing on:

• Product
• Market
• Geographic areas

we developed a unique level of knowhow that makes us the best in our field, the residential development

For Families

The average age of our customers is 36 years old. They live the City and buy the house to live in. A type of customer less subject to market's cycles

Affordable price range We cover the 60% of the market

Made in Milano A Tailor-Made product: best expression of milanese style

New buildings and renovations We demolish or reclaim disused buildings to make new residential complexes

Energy efficiency and low operating expenses Which saves money and allows you to afford a higher mortgage payment

Responsibility sense

Building to regenerate, with the utmost respect for social, environmental and energy aspects

THE STRUCTURE: We imported European best practices

• A project, a vehicle, a Bank. The compartmentalization of money flows Is a guarantee for all stakeholders.
• Firstwe sell, then we build. Construction does not begin until project break-even is reached. Until then, the land loan, although deliberate, is not used except for the purchase of the area, thus neutralizing any debt-related risk
• Our business model allows us an average IRR of over 30%.

HOLDING

• Listed on the STAR segment
  • Holds the know-how and brand, which provides to vehicles via service contract
  • Funds and guarantees vehicles when necessary
  • Revenues from the sale of services to vehicles and, as of now, to selected external partners, and dividends from subsidiaries.

VEHICLES

• Own the projects
• Take on exclusively long-term debt with land loans countersecured by a mortgage on the property, which are fractionated on the individual apartment and taken over by the client at the final deed
• Sign contracts and commitments with customers and suppliers

Financial charges - low impact on development activity

The customer deposits and the concentration of production in the final stages of the site mean that the incidence of financial charges does not exceed 1% of revenues, €0.8* million in 52 months for an operation with €76 million in revenues

* spread 2.5%, customer deposits 27%, bank loan 60%, equity 2 million, guarantee withholding 10%, staged payments based on progress of works at 90 days - expansionary cycle, site purchase prior to marketing

Even assuming a growth of EURIBOR of 500 bp, the incidence of financial charges would rise to less than 2.2% of revenues

High Tech Company Integration BIM + Salesforce ⁺

Proprietary design model

Accounting

A.I. and virtual assistant available h24

Online configurator similar to automotive industry

Virtual Reality

E-commerce platform for online sales

Digitalization of all docs and signatures

Online payments

PREPARATORY WORKS Rehabilitation,

demolition and excavation

The business model

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We manage all related activities in-house, with the best resources available in the market. We outsource construction. The long permit times are an advantage for us, as they create a barrier to entry for our competitors, and because of our pipeline we can start earlier and pursue several projects in parallel.

AUTHORISATION PROCESS

6-24 months. Up to 4 years for large project approvals (plot above 15.000 sqm or abt 20.000 sellable sqm)

MARKETING – PRELIMINARY CONTRACTS (FIRST WE SELL, THAN WE BUILD)

• Microcampaigns Collection of proposals and signing of preliminary contracts (notarized)
• 30% advance payments made by customers, secured by insurance surety bond

CONSTRUCTION

• 21/24 months
• We do not start construction until we have sold at least 70% of the units

DELIVERIES – NOTARIAL DEEDS

• 3/6 months
• No inventory

Strategic business lines

AbitareIn's core business is residential development for sale in Milan. The company is also defining new strategic business lines to create value by exploiting market opportunities.

VERTICAL PARTENRSHIPS

New partnerships: Collaborations with owners of large estates.

AbitareIn provides know-how and its platform: product definition, interior layout, architectural design, permitting process, commercialization, marketing, project & construction management, customization, legal and contracting, customer service and after-sales.

REHABILITATION OF EXISTING BUILDINGS

Focus on rehabilitation of existing buildings:

• Reduction of timeframe for implemetation
• Easier authorisation process
• Reduction of environmental impact during use and in the production process.

We entered the Roman market with an initial project, aimed at taking advantage of upcoming market opportunities generated by growing demand, new international attention and reduced market risks.

BUILD TO RENT: HOMIZY

Founded in 2019, Homizy is a SIIQ in which AbitareIn holds 70 percent, listed from 2021 on Euronext Growth Milano.

Build-to-share business model: developing and putting rooms into income, in the co-living formula Young people, aged between 20 and 35, looking for housing solutions that guarantee efficiency, innovative services and spaces to socialize.

A path of growth

		FY 2020	FY 2021	FY 2022	FY 2023
P&L	Total revenues	73,1	124,8	122,2	116,3
	EBITDA	8,8	18,3	16,1	35,0
	EBT	11,2	16,7	11,2	34,2
	Net Profit	9,2	12,2	7,9	24,2
	Delivered apartments	41,4	50,4	20,6	235,8
BS	Net invested capital	84,5	147,9	212,2	148,2
	Net financial debt	26,1	75,1	116,2	38,5
	Equity	58,3	72,8	96,0	109,6

9

Mln €

Projects under development: our pipeline in Milan

Our pipeline

Due to the size and heterogeneity of our pipeline, implemented in advance of the market, we can opportunistically decide which and how many projects to initiate, based on our strategy. The long-term development horizon, in which we move in the absence of competitors, allows us to continue acquiring areas at a price well below current values.

CONSTRUCTION

Italian real estate market

Need for new housing

Source: Assoimmobiliare

• 1. A survey conducted by Nomisma in May 2022 identifies energy efficiency as the primary driver of housing demand (40% of preferences)
• 1. Standards should be based on harmonized energy performance classes. The lowest energy performance class G will be defined as the worst-performing 15% of each Member State's national building stock
• 1. Specific classes of dwellings such as historic ones are excluded from the obligations under the new EPBD

Demographic and economic environment

The growth of the urban population is driving new housing demand

	Population	N° of familiy units	Average size of family units	% population 20-34 YO	Average taxable income in 2021
	58.8 mln -1.8% in 10 years	26.2 mln +2.4% in 10 years	2.3 people	16% 16% in 10 years	€ 21,776 +12,6% since 2012
	4.2 mln +1.2% in 10 years	2.0 mln +5.7% in 10 years	2.1 people	12% 16% in 10 years	€ 27,640 +8,8% since 2012
	3.2 mln +0.4% in 10 years	1.5 mln +4.0% in 10 years	2.1 people	16% 18% in 10 years	€ 35,892 +17,4% since 2012
 If it's true that in Italy the population is following a decreasing trend, in the next decade an increase in the urban population (1) is expected, resulting from people migrating to urban areas (from 72% to 75% of the total population), corresponding to a growth of approximately 1.1 million people.
 The main protagonists of this phenomenon are Milan and Rome, which will experience a population growth with a significant increase in the age group between 20 and 34 years.
 Another significant demographic phenomenon is the strong expected increase in the number of family units in the next 10 years (+640,000 units). This phenomenon will contrast with the reduction in the average size of households, which will primarily affect large cities.
 According to the Ministry of Economy and Finance (Mef), in 2021 the average taxable income of an Italian citizen was approximately €22,000. Both Rome and Milan are among the wealthiest cities with an income well above the national average.

Medium/long-term trends: focus on new houses

Evolution of prices of new houses

SUSTAINABLE value beyond urban regeneration

AbitareIn's goal is to meet the housing demand of today's households by adopting an innovative and scalable industrial business model. As a developer engaged in urban regeneration projects, AbitareIn's business is intrinsically linked to sustainability.