HELMA Eigenheimbau AG — Investor Presentation 2017

Jun 7, 2017

Company presentation July 2017

• 1. Business model
• 1. Market & competition
• 1. Order book position
• 1. Key financial figures
• 1. Forecast
• 1. Share
• 1. Annex

Competitive strengths

• Experienced: Several thousand references
• Attractive: Individual all-inclusive packages
• Value-retaining: Sustainable product quality
• Personal: Regional presence

• Secure: High creditworthiness and transparency

• Core Regions HELMA Eigenheimbau AG

• Core Regions HELMA Wohnungsbau GmbH
• Core Regions HELMA Ferienimmobilien GmbH

HELMA Eigenheimbau and HELMA Wohnungsbau: individual dream homes

HELMA Wohnungsbau: reference property development projects in the owner-occupier homes area – individual detached homes (extract)

HELMA Wohnungsbau: Reference projects for property development business in owner-occupier homes area – preplanned semi-detached houses, terraced houses and multi-family houses (extract)

HELMA Wohnungsbau: Reference projects for property development business in owner-occupier homes area – preplanned semi-detached houses, terraced houses and multi-family houses (extract)

HELMA Ferienimmobilien: OstseeResort Olpenitz (Schleswig-Holstein)

HELMA Ferienimmobilien: Projects on the island of Rügen and near Berlin

Hafendorf Zerpenschleuse (200 units for sale/under construction)

Ostseepark Glowe (27 units realised)

2. Market & competition

Positive economic data

• Trend towards living in conurbations centred on major German cities
• Housing shortage in large German cities due to high influx rates
• Real estate enjoys high status as a retirement provision and as capital investment
• High demand for new-builds to replace detached and semi-detached properties no longer capable of renovation
• Strong employment market data / favourable interest rates

Residential construction approvals and completions (newbuild) in Germany

3. Order book position

HELMA Group new order intake and order book position

High new order intake and order book position create solid foundation for further revenue growth

3. Order book position

Group companies' contributions to consolidated new order intake

in k€	2016	Share in %	2015	Share in %	2014	Share in %	2013	Share in %	2012	Share in %
HELMA Eigenheimbau AG*	99,041	34.5	111,155	41.3	81,816	42.4	74,320	46.7	82,062	62.4
HELMA Wohnungsbau GmbH	150,805	52.6	138,620	51.4	88,475	45.8	75,145	47.3	40,441	30.8
HELMA Ferienimmobilien GmbH	36,969	12.9	19,611	7.3	22,714	11.8	9,514	6.0	8,895	6.8
Total	286,815	100.0	269,386	100.0	193,005	100.0	158,979	100.0	131,398	100.0

*HELMA LUX S.A. was merged with HELMA Eigenheimbau AG in 2014. The new order intake of HELMA LUX S.A. in FY 2012-2013 is included in the figures for HELMA Eigenheimbau AG.

• Decline in order intake at HELMA Eigenheimbau AG after a strong increase in the previous year
• Significant growth of new order intake at property development subsidiaries

Sustained growth in sales and earnings

• Adjusted Group EBIT = earnings before interests and taxes + disposal of capitalised interests
• Consolidated net income grows to k€ 13,498 in FY 2016 (FY 2015: k€ 9,952)
• Earnings per share increase to € 3.37 in FY 2016 (FY 2015: € 2.69)

Contributions of Group companies to consolidated revenue

in k€	2016	Share in %	2015	Share in %	2014	Share in %	2013	Share in %	2012	Share in %
HELMA Eigenheimbau AG*	91,864	34.8	78,245	37.1	77,352	45.4	72,460	52.5	69,398	60.9
HELMA Wohnungsbau GmbH	139,428	52.9	110,916	52.7	65,717	38.5	59,533	43.1	37,222	32.7
HELMA Ferienimmobilien GmbH	31,657	12.0	20,679	9.8	26,695	15.7	5,494	4.0	6,743	5.9
Hausbau Finanz GmbH	893	0.3	778	0.4	734	0.4	531	0.4	625	0.5
Total	263,842	100.0	210,618	100.0	170,497	100.0	138,018	100.0	113,988	100.0

*HELMA LUX S.A. was merged with HELMA Eigenheimbau AG in 2014. The revenue of HELMA LUX S.A. in FY 2012-2013 is included in the figures for HELMA Eigenheimbau AG.

High-margin property development business is increasing in importance

Trends in cost ratios to revenue

• Cost of materials ratio constantly at a good level below 80 %
• Declining personnel expense ratio due to increased property development business's share of group revenue (land shares are less labor intensive)

Trends in profit margins

Expected medium-term adjusted EBIT margin at 7-10 %, in 2017 prospectively in the lower third of the range

Solid financial position with equity ratio above the sector average

Consolidated balance sheet structure of assets
------------------------------------------------

in k€	12/31/2016	Share	12/31/2015	Share
Non-current assets	18,575	6.7%	18,525	7.6%
- of which property, plant and equipment	16,398	5.9 %	16,342	6.7%
Current assets	259,667	93.3%	226,469	92.4%
- of which inventories including land	173,816	62.5%	154,369	63.0%
- of which cash and cash equivalents	11,331	4.1%	12,493	5.1%
Total Assets	278,242	100.0%	244,994	100.0%

Consolidated balance sheet structure of equity and liabilities

in k€	12/31/2016	Share	12/31/2015	Share
Equity	80,236	28.8%	69,898	28.5%
Non-current liabilities - of which non-current financial liabilities	112,309 103,216	40.4% 37.1%	67,168 60,403	27.4% 24.7%
Current liabilities - of which current financial liabilities	85,697 32,435	30.8% 11.7%	107,928 50,671	44.1% 20.7%
Total equity and liabilities	278,242	100.0%	244,994	100.0%

• Significant corporate growth feeds through to growth in total assets
• High inventories including land recognised as current assets at cost prices (principle of lowest value) secures continued growth of high-margin property development business
• Equity base well above the average sector level enables financing land purchases through land acquisition financing facilities with favourable interest rates
• High current financial liabilities as of December 31, 2015, arise from the reclassification of the bond with a volume of € 35.0 million and an original maturity until September 19, 2018. The bond was repaid full as of September 19, 2016.

Group cash flow statement

in k€	2016	2015	2014	2013	2012
Cash flow from operating activities	-20,782	-36,230	-14,261	-31,297	-18,582
- of which cash earnings	17,077	13,681	11,210	9,145	6,447
- of which change in working capital	-37,857	-49,921	-25,517	-40,308	-24,979
- of which gain/loss on disposal of fixed assets	-2	10	46	-134	-50
Cash flow from investing activities	-1,859	-1,922	-2,062	-1,993	-601
Cash flow from financing activities	21,479	43,729	16,418	38,571	16,930
Cash and cash equivalents at the end of the period	11,331	12,493	6,916	6,821	1,540

Sustainably positive cash earnings

Buildup of working capital (land purchases) to expand high-margin property development business

5. Forecast

Continuous increase of consolidated revenue

Continuation of profitable growth trend expected with adjusted EBIT margin in a range of 7-10 % for 2017 and subsequent years

5. Forecast

Financing strategy

Equity base well above the average sector level

as basis for further corporate growth

Operating cash flow from current projects

and retained profits

Land purchase finance arrangements

with various, mainly long-standing, partner banks

Use of unsecured credit lines for temporary current financing

made available by a broad spectrum of banks

Capital market transactions and a promissory note issue

comprise additional options where required

In May 2017, a further promissory note with a volume of € 27.0 million consisting of two fixed interest tranches with maturities of 5 and 7 years and an average interest rate of 2.69 % p.a. was issued.

6. Share

Performance of the HELMA share

• ISIN: DE000A0EQ578
• XETRA closing price on June 30, 2017: €43.20
• Market capitalisation on June 30, 2017: €172.8 million
• Free float market capitalisation on June 30, 2017 €104.4 million

6. Share

Dividend

in €	2016	2015	2014	2013	2012	2011
Dividend per share	1.10	0.79	0.63	0.53	0.35	0.20

Retention of predominant portion of earnings forms important pillar to stabilize equity ratio at high level compared to sector average

Shareholder structure

7. Annex

The HELMA Group at a glance

Ertragslage		2016	2015	2014	2013	2012	2011	2010
Revenue	in k€	263,842	210,618	170,497	138,018	113,988	103,588	74,535
EBITDA	in k€	23,455	19,494	15,971	11,793	8,774	6,132	3,851
Adjusted EBITDA*	in k€	23,949	20,076	16,301	11,843	8,774	6,132	3,851
Operating earnings (EBIT)	in k€	21,662	17,774	14,167	10,286	7,335	4,786	2,724
Adjusted operating earnings (EBIT)*	in k€	22,156	18,356	14,497	10,336	7,335	4,786	2,724
Earnings before taxes (EBT)	in k€	19,568	14,956	11,690	8,271	5,755	3,381	1,910
Net income after minority interests	in k€	13,498	9,952	8,132	5,606	3,799	2,310	1,302
Cash earnings	in k€	17,077	13,681	11,210	9,145	6,448	4,396	2,923
Earnings per share**	in €	3.37	2.69	2.43	1.85	1.33	0.83	0.50
Dividend per share	in €	1.10	0.79	0.63	0.53	0.35	0.20	0.00
Adjusted gross profit margin	in %	21.5	23.4	24.4	24.1	23.7	21.4	21.6
EBIT margin	in %	8.2	8.4	8.3	7.5	6.4	4.6	3.7
Adjusted EBIT margin*	in %	8.4	8.7	8.5	7.5	6.4	4.6	3.7
Return on sales (ROS)	in %	5.1	4.7	4.8	4.1	3.4	2.3	1.8
Sales performance		2016	2015	2014	2013	2012	2011	2010
Net new orders received	in k€	286,815	269,386	193,005	158,979	131,398	106,828	97,629
Selected balance sheet items and key figures		12/31/2016	12/31/2015	12/31/2014	12/31/2013	12/31/2012	12/31/2011	12/31/2010
Property, plant and equipment	in k€	16,398	16,342	16,139	15,760	15,022	16,311	14,568
Inventories including land	in k€	173,816	154,369	96,054	78,408	35,816	19,830	8,628
Cash an cash equivalents	in k€	11,331	12,493	6,916	6,821	1,540	3,793	3,074
Equity	in k€	80,236	69,898	40,952	28,033	20,365	17,067	12,199
Net debt	in k€	124,320	98,581	79,401	68,034	36,347	16,552	10,261
Total assets	in k€	278,242	244,994	159,947	136,600	84,645	63,868	42,965
Equity ratio	in %	28.8	28.5	25.6	20.5	24.1	26.7	28.4
Other data		12/31/2016	12/31/2015	12/31/2014	12/31/2013	12/31/2012	12/31/2011	12/31/2010
Number of employees		290	254	233	211	188	164	131

* adjusted for the disposal of capitalised interest

** relative to the average number of shares in circulation during the financial year

7. Annex

Financial Calendar 2017

January 12, 2017	2016 Order intake figures
March 30, 2017	2016 Annual Report
March 30, 2017	Metzler German Microcap Day, Frankfurt / Main
June 1, 2017	Quirin Champions Conference, Frankfurt / Main
June 22-23, 2017	Berenberg Pan-European Discovery Conference, Venice
July 7, 2017	Annual General Meeting, Lehrte
July 13, 2017	2017 Half-year order intake figures
August 31, 2017	2017 Half-year Report
November 27-29, 2017	German Equity Forum, Frankfurt / Main

IR contact

Dipl.-Kfm. Gerrit Janssen, CFA Management Board member, CFO

Elaine Hirsch, MBA Executive Assistant

Zum Meersefeld 4 D-31275 Lehrte Phone: +49 (0)5132/8850-345 email: ir@HELMA.de

7. Annex

We are HELMA

Disclaimer

This document and its contents are confidential and are not intended for forwarding, transmission, publication, reproduction or disclosure (whether wholly or partially) to other persons. The distribution of this document outside Germany can be restricted as the result of other applicable laws.

This document represents neither an offer to sell, nor a solicitation of an offer to purchase or subscribe for securities.

This document and the information that it contains must not be distributed in the United States of America, Canada, Australia or Japan. This document does not comprise an offer to sell securities in the USA. Securities can be sold or offered for sale in the USA, or to, or for the account, or benefit of, US persons (as defined in regulation S of the U.S. Securities Act of 1933 in its current valid version ("Securities Act")) only after prior registration according to the Securities Act, or on the basis of an exemption from such obligation to register. No intention exists to implement a public offering of securities in the USA.

This document includes forward-looking statements. Forward-looking statements comprise all statements which do not describe past events, but which instead apply terms such as "believe", "assume", "expect", "estimate", "plan", "intend", "could" or similar formulations. By their nature, such forward-looking statements are nevertheless subject to risks and uncertainties, as they relate to future events and are based on the current assumptions and estimates of HELMA Eigenheimbau AG, which might not be realised at all in the future, or not as assumed. For this reason, they do not represent a guarantee of the occurrence of future events or performance at HELMA Eigenheimbau AG, and the actual financial position and the results that are actually achieved at HELMA Eigenheimbau AG, as well as macroeconomic trends and legal conditions, can differ significantly from the expectations that were assumed either explicitly or implicitly in the forward-looking statements, and fail to fulfil them.

Slight differences can occur in the summation of amounts and percentages in this document due to commercial rounding.