Equinox

Investor Presentation • Nov 8, 2022

First real estate company listed on the Slovenian stock exchange

Introduction

EQUINOX is the first, publicly traded real estate company in Slovenia and one of the most attractive shares on the Slovenian capital market

Enabling all investors to indirectly own the best quality real estates

Pursues a long-term above-average returns on real estate investment

Pursues a target above average dividend yield of 5% a year

Enabling a more appropriate diversity of investments and thus a more stable investment portfolio

75.000 m2 of business areas

80% hotels, 20% office buildings

677 hotel rooms in the center of Ljubljana

The most centralized portfolio in all european capitals

Increasing profitability and further growth potential

Sustainable dividend potential

One of the most profitable stocks on the Ljubljana stock exchange in 2022

Our main mission

To create value for shareholders

by providing high quality real estate spaces

that enable our stakeholders to prosper in a sustainable way.

Our vision for the future

To be the leading real estate company in the region

with different kind of real estate asset

providing solid returns to investors and enriching lives of our stakeholders.

Our core values

products and services

We aim to promote growth and technological advancement

We commit to consistently deliver quality

We aim to uphold our relationship with our investors

We aim to promote sustainability in our projects

We are proud, innovative, responsible and ambitious

Equinox was established in 2021 by a partition of Union Hoteli d.d. into an operating and an asset company

Union Hoteli d.d.

(Axor, KAD, retail shareholders…)

UNION HOTELS COLLECTION (OpCo)

EQUINOX REAL ESTATE* (PropCo)

• Assets: 56.362.635 EUR
• Long-term assets: 47.707.900 EUR
• Short-term assets: 8.654.735 EUR
• Bank deposits: 7.870.159
• Equity (market value): 88.975.902 EUR vs 114.215.000 EUR (fair value)
• Financial obligations: 15.578.884 EUR
• Net debt: 7.077.660 EUR

*on 30.6.2022

✓BIGGEST AND BEST QUALITY real estate portfolio in Slovenia

✓All properties are located IN THE CENTER OF LJUBLJANA

✓MOST CENTRALLY LOCATED real estate portfolio in the capital of any EU member state

Hotel part of the real estate portfolio

• 4 hotels in the center of Ljubljana
• 677 rooms
• 21 conference halls
• EUR 6,1 million of stabilized revenues per year (for 20 years)

Commercial part of the real estate portfolio

• 4 office buildings in the center of Ljubljana
• 15,900 m2
• EUR 1.8 million of stabilized revenues per year

Estimated fair value of portfolio on 30.9.2022: 115 million EUR

Portfolio

4 hotels in Ljubljana

4 office buildings in Ljubljana

2 strategic projects

Hotels

Gran d Hotel Un ion Miklošičeva cesta 1, 1000 Ljubljana H oteland conference center Totalarea ofthe prem ises:14.651m ² Business:hotels N o.ofroom s:111 N o.ofconference halls:10

uHotel

Miklošičeva cesta 3, 1000 Ljubljana H oteland conference center Totalarea ofthe prem ises:19.239 m ² Business:hotels N o.ofroom s:224 N o.ofconference halls:5

H oteland conference center Totalarea ofthe prem ises:15.145 m ² Business:hotels N o.ofroom s:231 N o.ofconference halls:2

The Fuzzy Log

Youth hostel Totalarea ofthe prem ises:2.091m ² Business:hotels N o.ofroom s:111

Commercial – offices

Office building

Office building Delo

Office building Nomago

Ma ll Modn a h iša

LOCATIONS OF ALL OUR REAL ESTATES IN THE PORTFOLIO

Average distance of all properties from the Prešeren square is 280 m

Two strategic projects

Redevelopment of Nama Kočevje into a residentialcommercial building

NAMA KOČEVJE DELO 2.0 BUILDING

Redevelopment of Delo building into a residentialcommercial building

Equinox in practice– case 1: Hotusa

110 millions EUR* 20 years of lease agreement Foreign strategic partner

* Minimum guaranteed rent

Equinox in practice – case 2: Mogotel

12 millions EUR* 20 years of lease agreement Foreign strategic partner

* Minimum guaranteed rent

Key business highlights in 2022

Successful rental of all hotels in portfolio to international strategic partners – 20 years agreement + 5 years + 5 years – 122 mio. minimum guaranteed rent

3 projects with which the company expands its portfolio – entrance in residential real estate market – diversification.

Final organizational, corporate and financial restructuring.

Greater stability and transparency of the business model.

Tourism in Ljubljana in 2022

The growth index of tourist arrivals in the first half of this year was 800% higher than last year

The number of overnight stays was +600% higher compared to the same period last year

The hotel industry is one of the most flexible industries in times of high inflation, as it can easily adapt the prices

Currently, most of the hotels in Ljubljana are 85% occupied

Greater stability of the business model and lower risk for shareholders

Key investment highlights

• ✓ One of the major players on the market and actively influencing the development of real estate market in Slovenia.
• ✓ Successful listing on the Ljubljana stock exchange on 31.1.2022 – an increase in free float for 30%
• ✓ Successful extension of the maturity of the company's loans obligations.
• ✓ Partnership with foreign strategic partners.
• ✓ Long term lease agreements – at least 10 years.
• ✓ Leader in setting new business model into practice in the region

Growth drivers

• ✓ 122 mio. EUR minimum guaranteed rent + indexation + variable rent (depends on the revenues)
• ✓ Stable and sustainable dividends – 50%-70% of FFO
• ✓ 1.1. 2023 – share buyback – every month in 2023
• ✓ Investment cycle and new projects 18 mio. EUR in the next 8 years
• ✓ Reduce the share of hotels in the portfolio to 50% in next 5 years – offices, residential, healthcare, logistics.

Indexation of the rent

• ✓ Since the first year from the completion of the renovation works of the 3 hotels
• ✓ Minimum guaranteed rent updated annually (in any case upwards)
• ✓ Based on the consumer price index (CPI) published annually by the National Institute of Statistics in Slovenia
• ✓ Based on updating in each case the rent in force at the time of update
• ✓ Example: if the CPI amount to 10%, the minimum guaranteed rent after 1 year to renovation works would be increased x 1,10

CAPEX

• ✓ Grand Hotel Union, UHotel and Hotel Lev (tenant Hotusa) – around 2 mio. EUR per year for next 8 years, starts in 2022 - 5,5 mio. EUR minimum guaranteed rent per year for 20 years
• ✓ Hotel Central (tenant Mogotel) - completely renewed in 2019 - no CAPEX needed in next 10- 15 years
• ✓ The Fuzzy Log (tenant Mogotel) - newly built in 2020 - no CAPEX needed in next 10-15 years
• ✓ Office building DELO: will be renovated only if tenant requires renovation; rent is adjusted upwards to cover renovation costs. I.E.: new tenant 10 year contract + indexation rent CAPEX 250 EUR/m2 or 375.000 EUR

Share price performance

Selected indicators

Currently issued shares: 1.793.869 Currently listed shares: 1.793.869 Price low YTD: 35,10 EUR Price high YTD: 50,50 EUR Average daily volume october 2022: 12.176 EUR

Dividends

First payment: January 2023 How much?: 50%-70% of FFO Target dividend yield: 3%-5%

Fair value of the share EQNX on 30. 9. 2022

Estimate fair value of the share is 64,3 EUR/share Growth of the fair value per share in last 4 Q + 11,4 %

Ownership structure 30. 9. 2022

		% of the
OWNERSHIP STRUCTURE	No. of shares	ownership
1 Axor holding, d.d.	1.330.536	74,17%
2 Kapitalska družba, d.d.	336.421	18,75%
3 Radovan Bolko	8.700	0,48%
4 Jelka Klemenc	7.100	0,40%
5 Jože Janežič	4.000	0,22%
6 Eleonora Kramar	3.386	0,19%
7 Clarinos d.o.o.	3.350	0,19%
8 Alojz Hernaus	3.300	0,18%
9 Aleš Fevžar	3.050	0,17%
10 Rudolf Horvat	2.676	0,15%

TOGETHER	1.793.869	100,00%
Others	91.350	5,09%

Key business data and company results for Q3 2022

P/L

Key business data Equinox d.d.	Q3 2022	Q2 2022	Q1 2022	Q4 2021
(in 000 EUR)
Net revenues	2.016	1.635	1.590	1.693
EBITDA	1.447	1.180	1.165	1.026
- EBITDA margin	71,8%	72,2%	73,2%	60,6%
FFO	1.360	1.224	1.156	1.117
- Per share	0,76	0,68	0,64	0,62

FFO (eng. Funds From Operations) is the most widely followed indicator of real estate companies. It is calculated as the company net profit of the company, to which depreciation is adde and from which all one.off events held by the company in the financiral year are deducted or added. FFO is used as the basis for the dividends to the company shareholders.

share

Balance sheet

Book and fair value (in 000 EUR)	30/09/2022		30/06/2022		31/03/2022		31/12/2021
Book value
Assets	60.422	100%	56.363	100%	54.860	100%	55.039	100%
- tangible fixed assets	2.719	4,5%	2.723	4,8%	2.827	5,2%	2.953	5,4%
- investment properties	37.481	62,0%	38.189	67,8%	34.358	62,6%	34.841	63,3%
Capital	41.372	68,5%	40.784	72,4%	40.411	73,7%	40.060	72,8%
Fair value
Assets	134.436	100%	129.666	100%	118.939	100%	118.509	100,0%
- hotels	93.214	69,3%	93.214	71,9%	86.302	72,6%	86.302	72,8%
- other premises	21.001	15,6%	21.001	16,2%	14.962	12,6%	14.962	12,6%
- other investments	20.221	15,0%	15.451	11,9%	17.675	14,9%	17.245	14,6%
Capital	115.386	85,8%	114.087	88,0%	104.490	87,9%	103.530	87,4%
Net asset value (NAV)	115.386		114.087		104.490		103.530
Net asset value (NAV) per	64,3		63,6		58,2		57,7

Balance sheet

Growth of the Net asset value (NAV) in last 4 Q

Growth of Net asset value (NAV) 31.12.2021 – 30.9.2022

+12,8%

14.962

	v 000 EUR	V %
Hotels	93.214	81.6%
Commercials - offices	21.001	18.4%
TOTAL:	114.215	100%

The average maturity of debt was extended with new loan due in 2037

Financial debt	30/09/2022	30/06/2022	31/03/2022	31/12/2021
in 000 EUR	14.719	14.855	13.736	13.995
Net debt – with primary liquidity	4.753	6.985	6.297	7.298
Net debt – with secondary liquidity	3.507	5.640	5.092	6.305
Loan to value (LTV)	30/09/2022	30/06/2022	31/03/2022	31/12/2021
in 000 EUR	115.386	114.087	104.490	103.530
LTV – primary liquidity	4,1%	6,1%	6,0%	7,0%
LTV – secondary liquidity	3,0%	4,9%	4,9%	6,1%
Target LTV in accordance with strategic plan	25,0%	25,0%	25,0%	25,0%
Max LTV in accordance with strategic plan	35,0%	35,0%	35,0%	35,0%

Maturity of principals of financial obligations – in 000 EUR

EQUINOX NEPREMIČNINE, d.d.

First real estate company listed on the Slovenian stock exchange

CONTACT:

Equinox partners, d.o.o. +386 31 347 142 info@eqnx.si Slovenska cesta 56 1000 Ljubljana Slovenia

eqnx.si