HELMA Eigenheimbau AG — Investor Presentation 2018

Apr 12, 2018

Company presentation April 2018

• 1. Business model
• 1. Market & environment
• 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

HELMA Eigenheimbau and HELMA Wohnungsbau: individual dream homes

Berlin - Karlshorst (255 detached homes realized) Berlin - Pankow (110 detached homes realized)

HELMA Wohnungsbau: Reference projects for property development business – individual detached homes (extract)

Spandau - Havel Marina (Berlin region approx. 300 units in detached homes, terraced houses and multi-family houses for sale / in planning)

HELMA Wohnungsbau: Reference projects for property development business – preplanned semi-detached houses, terraced houses and owner-occupied apartments (extract)

HELMA Wohnungsbau: Reference projects for property development business – preplanned semi-detached houses, terraced houses and owner-occupied apartments (extract)

HELMA Ferienimmobilien: OstseeResort Olpenitz (Schleswig-Holstein)

HELMA Ferienimmobilien: Projects on the North Sea, the Baltic coast and near Berlin (extract)

2. Market & environment

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

in k€ (Share in %)	2017	2016
HELMA Eigenheimbau AG 195.914	93,594 (38.2)	99,041 (34.5)
HELMA Wohnungsbau GmbH 145.847	99,924 (40.7)	150,805 (52.6)
HELMA Ferienimmobilien GmbH - 26%	51,874 (21.1)	36,969 (12.9)
Total	245,393 (100.0)	286,815 (100.0)

* New order intake figures from 2014 to 2016 include the overall sale of a large-scale residential real estate project to an institutional investor.

Sustained growth in sales and earnings

• After many years of expansion: revenue and earnings in 2017 approximately at the previous year's level.
• Earnings per share of € 3.25 in FY 2017 achieved (FY 2016: € 3.37).

Contributions of Group companies to consolidated revenue

in k€	2017	Share in %	2016	Share in %	2015	Share in %	2014	Share in %	2013	Share in %
HELMA Eigenheimbau AG*	85,071	31.8	91,864	34.8	78,245	37.1	77,352	45.4	72,460	52.5
HELMA Wohnungsbau GmbH	133,352	49.9	139,428	52.9	110,916	52.7	65,717	38.5	59,533	43.1
HELMA Ferienimmobilien GmbH	48,116	18.0	31,657	12.0	20,679	9.8	26,695	15.7	5,494	4.0
Hausbau Finanz GmbH	879	0.3	893	0.3	778	0.4	734	0.4	531	0.4
Total	267,418	100.0	263,842	100.0	210,618	100.0	170,497	100.0	138,018	100.0

*HELMA LUX S.A. was merged with HELMA Eigenheimbau AG in 2014. The revenue of HELMA LUX S.A. in FY 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 %.
• Trend towards higher materials expense ratio and declining personnel expense ratio due to increased property development business's share of group revenue (land shares are more material intensive, but less labor intensive).

Trends in profit margins

• Adjusted EBIT margin established within the range of 7-10 %.
• Return on sales at a high level of approx. 5 % stabilised.

Solid financial position with equity ratio above the sector average

Consolidated balance sheet structure of assets

in k€	12/31/2017	Share	12/31/2016	Share
Non-current assets	19,197	6.0%	18,575	6.7%
- of which property, plant and equipment	16,621	5.2%	16,398	5.9%
Current assets	298,456	94.0%	259,667	93.3%
- of which inventories including land	199,891	62.9%	173,816	62.5%
- of which cash and cash equi valents	16,656	5.2%	11,331	4.1%
Total Assets	317,653	100.0%	278,242	100.0%

Consolidated balance sheet structure of equity and liabilities

in k€	12/31/2017	Share	12/31/2016	Share
Equity	88,829	28.0%	80,236	28.8%
Non-current liabilities - of which non-current financial liabilities	141,642 133,738	44.6% 42.1%	112,309 103,216	40.4% 37.1%
Current liabilities - of which current financial liabilities	87,182 32,154	27.4% 10.1%	85,697 32,435	30.8% 11.7%
Total equity and liabilities	317,653	100.0%	278,242	100.0%

• Higher total assets due to increase in inventories.
• 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.
• Current financial liabilities mainly comprise financing facilities for land and projects. As it is to be assumed that these financing facilities will be repaid through the final acquirer's purchase price payments within the next twelve months, these liabilities are to be presented as current financial liabilities irrespective of the actual financing term.

Group cash flow statement

in k€	2017	2016	2015	2014	2013
Cash flow from operating activities	-13,344	-16,088	-31,872	-10,454	-28,817
- of which cash earnings	17,965	20,953	15,325	16,302	11,752
- of which change in working capital	-31,278	-37,039	-47,207	-26,802	-40,435
- of which gain/loss on disposal of fixed assets	-31	-2	10	46	-134
Cash flow from investing activities	-3,298	-1,839	-1,916	-2,039	-1,923
Cash flow from financing activities	21,967	16,765	39,365	12,588	36,022
Cash and cash equivalents at the end of the period	16,656	11,331	12,493	6,916	6,821

The previous year's figures were restated due to the modified presentation of the cash flow statement based on DRS 21.

Sustainably positive cash earnings from operating business.

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

Growth potential from the residential property development business

Berlin / Potsdam region

• Population growth of 9.9% (Berlin) and 4.3% (Potsdam) expected from 2015 to 2030.
• Strong incentive for people to buy their own home due to comparatively low home ownership ratios and strong rental growth (Berlin rents up 11% year-onyear in 2017).
• Berlin Senate's decision not to establish new construction plans to develop detached houses in the city of Berlin shifts demand to surrounding regions.

Hamburg / Hanover region

• Hamburg reports the highest gross value creation compared to other major German cities = many well-paid jobs
• Population growth of 11.1% (Hamburg) and 1.5% (Hanover) expected in the 2015 to 2030 period.
• Hanover city population growth of 32,700 inhabitants in the last ten years. Only 6,080 new homes constructed in the same period, however.

Growth potential from the residential property development business

Leipzig region

• Major German city reporting the strongest percentage growth: net inflow of 27.4 individuals per 1,000 inhabitants (as of 2015).
• East Germany's growth island: Population growth of 15.1% expected in the 2015 to 2030 period.

Munich region

• Almost zero void ratio for residential real estate.
• Population growth of 18.3% expected in the 2015 to 2030 period.
• Extremely dynamic labour market with very low unemployment rates and high proportion of graduates.

Growth potential from the holiday property development business

• German holiday regions becoming ever more popular as vacation destinations.
• Growing importance of holiday properties as capital investments.
• From German investors' perspective, their own country is the most popular location for a holiday property investment, accounting for a 57.3% share (Spain: 9.2%; Austria: 7.2%).
• The German coasts dominate the domestic investment market. One third of all real estate purchases in Germany since 2011 are attributable to the North and Baltic sea regions.

Revenue potential from realised land purchases as of December 31, 2017

	Total		Individually plannable		Preplanned		Project land plots not built upon
	Number of units	Revenue volume in k€	Number of units	Revenue volume in k€	Number of units	Revenue volume in k€	Number of units	Revenue volume in k€
HELMA Wohnungsbau GmbH Berlin/Potsdam region	898	409,000	515	225,000	380	145,000	3	39,000
HELMA Wohnungsbau GmbH Hamburg/Hanover region	470	182,500	150	52,500	320	130,000	0	0
HELMA Wohnungsbau GmbH Leipzig region	290	110,000	215	75,000	75	35,000	0	0
HELMA Wohnungsbau GmbH Munich region	183	157,500	0	0	180	120,000	3	37,500
Total HELMA Wohnungsbau GmbH	1,841	859,000	880	352,500	955	430,000	6	76,500
Total HELMA Ferienimmobilien GmbH	1,151	320,000	0	0	1,150	319,500	1	500
Total HELMA Wohnungsbau GmbH & HELMA Ferienimmobilien GmbH	2,992	1,179,000	880	352,500	2,105	749,500	7	77,000

• Property development subsidiaries exhibit € 1,179.0 million of revenue potential; most of this can be realised within the next five years.
• HELMA Eigenheimbau AG should contribute at least € 100.0 million per year to consolidated revenue in the mediumterm, without any own land plots needed.

Earnings expected to grow significantly

• Consolidated EBT up more than tenfold between 2010 and 2016.
• 2017 EBT established at 2016 record level, and structures and processes successfully adapted to enable further sustainable growth.
• Based on its attractive pipeline of land plots, the company is aiming for double-digit annual percentage growth rates for its consolidated EBT.

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 or a promissory note issue

comprise additional options where required

6. Share

Performance of the HELMA share

• ISIN: DE000A0EQ578
• XETRA closing price on April 9, 2018: €36.55
• Market capitalisation on April 9, 2018: €146.2 million
• Free float market capitalisation on April 9, 2018: €88.3 million

6. Share

Dividend

in €	2017	2016	2015	2014	2013	2012	2011
Dividend per share	1.40*	1.10	0.79	0.63	0.53	0.35	0.20

* Proposal

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

Shareholder structure Shareholder structure

7. Annex

The HELMA Group at a glance

Earnings		2017	2016	2015	2014	2013	2012	2011	2010
Revenue	in k€	267,418	263,842	210,618	170,497	138,018	113,988	103,588	74,535
EBITDA	in k€	22,529	23,455	19,494	15,971	11,793	8,774	6,132	3,851
Adjusted EBITDA*	in k€	24,433	23,949	20,076	16,301	11,843	8,774	6,132	3,851
Operating earnings (EBIT)	in k€	20,232	21,662	17,774	14,167	10,286	7,335	4,786	2,724
Adjusted operating earnings (EBIT)*	in k€	22,136	22,156	18,356	14,497	10,336	7,335	4,786	2,724
Earnings before taxes (EBT)	in k€	19,130	19,568	14,956	11,690	8,271	5,755	3,381	1,910
Net income after minority interests	in k€	12,993	13,498	9,952	8,132	5,606	3,799	2,310	1,302
Cash earnings ***	in k€	17,965	20,953	15,325	16,302	11,752	8,524	5,939	3,721
Earnings per share**	in €	3.25	3.37	2.69	2.43	1.85	1.33	0.83	0.50
Dividend per share	in €	1,40****	1,10	0,79	0,63	0,53	0,35	0,20	0,00
Adjusted gross profit margin	in %	21.0	21.5	23.4	24.4	24.1	23.7	21.4	21.6
Adjusted EBIT margin*	in %	8.3	8.4	8.7	8.5	7.5	6.4	4.6	3.7
EBT margin	in %	7.2	7.4	7.1	6.9	6.0	5.0	3.3	2.6
Return on sales (ROS)	in %	4.9	5.1	4.7	4.8	4.1	3.4	2.3	1.8
Sales performance		2017	2016	2015	2014	2013	2012	2011	2010
Net new orders received	in k€	245,393	286,815	269,386	193,005	158,979	131,398	106,828	97,629
Selected balance sheet items and key figures		12/31/2017	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€	16,621	16,398	16,342	16,139	15,760	15,022	16,311	14,568
Inventories including land	in k€	199,891	173,816	154,369	96,054	78,408	35,816	19,830	8,628
Cash an cash equivalents	in k€	16,656	11,331	12,493	6,916	6,821	1,540	3,793	3,074
Equity	in k€	88,829	80,236	69,898	40,952	28,033	20,365	17,067	12,199
Net debt	in k€	149,236	124,320	98,581	79,401	68,034	36,347	16,552	10,261
Total assets	in k€	317,653	278,242	244,994	159,947	136,600	84,645	63,868	42,965
Equity ratio	in %	28.0	28.8	28.5	25.6	20.5	24.1	26.7	28.4
Other data		12/31/2017	12/31/2016	12/31/2015	12/31/2014	12/31/2013	12/31/2012	12/31/2011	12/31/2010
Number of employees		304	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

*** The previous year's figures were restated due to the modified presentation of the cash flow statement based on DRS 21.

**** Proposal

7. Annex

Financial Calendar 2018

March 15, 2018	Preliminary figures for the 2017 financial year
March 21, 2018	Metzler German Microcap Day, Frankfurt / Main
April 12, 2018	2017 Annual Report
July 6, 2018	Annual General Meeting, Lehrte
August 23, 2018	2018 Half-year Report
November 2018	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 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.

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