HELMA Eigenheimbau AG — Investor Presentation 2021

Mar 24, 2021

Company presentation March 24, 2021

• 1. Investment case
• 1. Business model
• 1. Sustainability
• 1. Market environment
• 1. Order book position
• 1. Financial figures
• 1. Forecast
• 1. Share
• 1. Annex

Disclaimer

Comment on forward-looking statements

The information published in this presentation relating to the future development of HELMA Eigenheimbau AG and its subsidiaries refers only to forecasts and estimates and thus not to given historic facts. This merely serves for information purposes and may contain words such as "intend", "aim", "expect", "plan", "forecast", "assume" or "appraise". These forward-looking statements rely on the information, facts and expectations available to us at present, and therefore only apply at the point in time of their publishing.

Forward-looking statements are generally prone to uncertainties and risk factors difficult to estimate in their impact. The actual results and development of the company could therefore materially deviate from the forecasts. HELMA Eigenheimbau AG and its subsidiaries intend to monitor and update the published data at all times. Nevertheless, the company is not responsible for adapting the forward-looking statements to later events and developments. As a result, it is neither expressly nor actually liable for and does not assume any guarantee for the timeliness, accuracy and completeness of this data and information.

Note on rounded amounts and percentages

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

1. Investment case

HELMA

… is a leading supplier of individual detached houses as well as pre-planned semi-detached, terraced and multi-family houses as well as holiday properties in Germany.

… invests on a large scale in land plots in high-growth metropolitan regions and attractive holiday regions, thereby securing a broadly diversified project pipeline characterised by favourable initial investment conditions.

… is benefiting from current megatrends for living in the countryside, home office working and holidays in Germany, which are being further bolstered by the COVID-19 pandemic.

… has a very high level of customer satisfaction, which is essential for continuous business expansion.

… aims to continue its profitable growth in the long term and expects consolidated revenue of over € 400 million and consolidated EBT of over € 40 million by 2024 at the latest.

Total market: More than 80 % of owneroccupied houses in Germany are built using the solid construction method

Individual detached houses both with (HELMA Wohnungsbau GmbH) and without land plots (HELMA Eigenheimbau AG).

Solid construction occurring especially in many high-growth metropolitan regions for owner-occupiers.

Pre-planned residential units in semi-detached, terraced and multi-family houses, all including land plots, in Berlin/Potsdam, Hamburg/Hanover, Leipzig and Munich for owner-occupiers (focus) and investors via HELMA Wohnungsbau GmbH.

• HELMA Ferienimmobilien GmbH develops, plans and sells holiday properties and apartments to private customers for own use or as high-yield capital investment.
• Including land plot with current focus on the North Sea and Baltic Coast, German seaside locations, and the low mountain range.

Nationwide and bank-independent financing and building insurance brokerage, especially for private customers of the HELMA Group via Hausbau Finanz GmbH.

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 region HELMA Eigenheimbau AG: individual detached houses excluding land plots

• Core region HELMA Wohnungsbau GmbH: individual detached houses, pre-planned semi-detached and terraced houses as well as owner-occupied apartments in each case including land plots
• Extended core region HELMA Wohnungsbau GmbH: individual detached houses including land plots
• Project region HELMA Ferienimmobilien GmbH
• Sales location

Status as of December 31, 2020

Value chain

HANDOVER OF KEYS

7 Company presentation March 24, 2021   Planning of property areas   Obtaining planning permission 3. Sale   Marketing to private customers and investors before the start of construction and during the construction phase 4. Project realisation   Coordination and monitoring of construction progress by HELMA site managers to ensure compliance with quality standards Optional all-inclusive package for holiday properties: rental, administration and caretaker service through integrating partner companies HANDOVER OF KEYS

2. Business model

Value chain

HELMA Eigenheimbau and HELMA Wohnungsbau: individual dream houses

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

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

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

HELMA Ferienimmobilien: OstseeResort Olpenitz with 1,380 units in Schleswig-Holstein – around half of the units have already been completed

HELMA Ferienimmobilien: Projects on the North Sea and in the low mountain range (extract)

3. Sustainability

Ecological and social responsibility

Reducing CO2 emissions

The houses and apartments that we realise each year achieve CO2 emission reductions of > 200,000 tons* in comparison with the average building stock.

*Calculated on the basis of a useful life of 50 years, similar to that taken as the basis for the rate of depreciation of buildings.

Social responsibility

We are committed to supporting social institutions that assist children, young people and families in difficult situations.

Sustainable resource utilisation

As a member of the German Working Group for Environmentally Conscious Management (B.A.U.M.) and the Sonnenhaus Institute, we actively participate in the development and application of sustainable and resource-conserving energy concepts.

3. Sustainability

Energy self-sufficient multi-family houses

• Energy self-sufficient multi-family houses as a showcase project were awarded with the German Solar Prize.
• Photovoltaic modules and solar thermal collectors enable the greatest possible self-sufficiency in electricity and heat.
• Reduction of CO2 emissions of around 84 % compared with multi-family houses constructed according to the currently valid standard for the German Building Energy Act (GEG).

4. Market environment

Positive framework data

Trend towards living in high-growth metropolitan regions

Low homeownership rate of 45 % in Germany

Real estate enjoys high status as a retirement provision and as capital investment

Good financing conditions and attractive promotion of energy-efficient construction methods

4. Market environment

Go for green living: Current megatrends in the residential and holiday property markets

Living close to the city in the countryside

Home office enjoys great popularity and increases space requirements

German holiday regions gain in importance once again

5. Order book position

HELMA Group new order intake and order book position

• After quite considerable restrictions in sales activities in H1 2020, significant increase in new order intake in H2 2020, with a new record level being achieved for the year as a whole.
• Record order book position as of December 31, 2020 represents very good starting position for 2021.

5. Order book position

Group companies' contributions to consolidated new order intake

in k€	2016	Share in %	2017	Share in %	2018	Share in %	2019	Share in %	2020	Share in %
HELMA Eigenheimbau AG	99,041	34.5	93,594	38.2	105,771	38.0	121,737	41.1	127,283	40.7
HELMA Wohnungsbau GmbH	150,805	52.6	99,924	40.7	133,509	47.9	131,332	44.3	110,692	35.5
HELMA Ferienimmobilien GmbH	36,969	12.9	51,874	21.1	39,296	14.1	43,417	14.6	74,484	23.8
Total	286,815	100.0	245,393	100.0	278,576	100.0	296,486	100.0	312,459	100.0

Significant growth in new orders, especially at HELMA Ferienimmobilien GmbH.

Over the course of the year HELMA Wohnungsbau GmbH was unable to fully offset the pandemic-related decline in new order intake in H1 2020.

Revenue and earnings performance

• Despite pandemic-related effects, revenue grew in 2020.
• EBT forecast of August 13, 2020 (€ 14.0–17.0 million) significantly exceeded.
• Earnings per share of € 3.84 achieved in 2020 (2019: € 4.04).

Contributions of Group companies to consolidated revenue

in k€	2016	Share in %	2017	Share in %	2018	Share in %	2019	Share in %	2020	Share in %
HELMA Eigenheimbau AG	91,864	34.8	85,071	31.8	85,560	33.8	98,336	37.4	115,843	42.3
HELMA Wohnungsbau GmbH	139,428	52.9	133,352	49.9	122,628	48.4	123,942	47.1	102,671	37.5
HELMA Ferienimmobilien GmbH	31,657	12.0	48,116	18.0	43,971	17.4	39,751	15.1	53,982	19.7
Hausbau Finanz GmbH	893	0.3	879	0.3	1,117	0.4	1,214	0.4	1,497	0.5
Total	263,842	100.0	267,418	100.0	253,276	100.0	263,243	100.0	273,993	100.0

• HELMA Eigenheimbau, HELMA Ferienimmobilien and Hausbau Finanz all report significant revenue growth.
• Lower revenue at HELMA Wohnungsbau in H1 2020, particularly reflecting pandemic-related reductions in orders and slight postponements of various construction starts.

Trends in cost ratios to revenue

• Disproportionately low revenue growth due to pandemic leads to higher cost ratios.
• Increase in personnel expenses in anticipation of a significant revenue growth in order to ensure the continued high-quality realisation of our products.

Trends in profit margins to revenue

• Gross profit margin remains at a high level due to above-average margins on various property development projects.
• Earnings figures would be at least at the previous year's level without the pandemic-related reduction in revenue.

Strong financial position with equity ratio above the sector average

Consolidated balance sheet structure of assets

in k€	12/31/2019	Share in %	12/31/2020	Share in %
Non-current assets	27,863	7.3	27,482	6.5
- of which property, plant and equipment	19,919	5.2	19,499	4.6
Current assets	352,301	92.7	395,890	93.5
- of which inventories including land	232,210	61.1	281,673	66.5
- of which cash and cash equivalents	16,703	4.4	20,087	4.7
Total assets	380,164	100.0	423,372	100.0

Consolidated balance sheet structure of equity and liabilities

in k€	12/31/2019	Share in %	12/31/2020	Share in %
Equity	108,594	28.6	116,578	27.5
Non-current liabilities - of which non-current financial liabilities	167,050 155,617	43.9 40.9	195,211 181,603	46.1 42.9
Current liabilities - of which current financial liabilities	104,520 35,984	27.5 9.5	111,583 36,890	26.4 8.7
Total equity and liabilities	380,164	100.0	423,372	100.0

• Increase in inventories including land plots 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 and/or working capital facilities with favourable interest rates.
• Current financial liabilities comprise, among others, financing facilities for land and projects. As it is to be assumed that these financing facilities will be repaid through the 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.

Development of cash flows

in k€	2016	2017	2018	2019	2020
Cash flow from operating activities	-16,088	-13,344	4,061	-3,499	-9,298
- of which cash earnings - of which change in working capital	20,953 -37,039	17,965 -31,278	14,983 -10,877	18,089 -21,628	20,352 -29,658
- of which gain / loss on disposal of fixed assets	-2	-31	-16	-29	8
Cash flow from investing activities	-1,839	-3,298	-4,445	-2,005	-1,872
Cash flow from financing activities	16,765	21,967	56	5,879	14,554
Cash and cash equivalents at the end of the period	11,331	16,656	16,328	16,703	20,087

• Sustainably positive cash earnings from operating business.
• Forward-looking inventory accumulation reflecting more land plot purchases increases working capital.

Forward-looking expansion of the project pipeline

in k€	12/31/2016	12/31/2017	12/31/2018	12/31/2019	12/31/2020
Inventories	173,816	199,891	220,152	232,210	281,673
- of which land	124,272	172,429	185,853	192,496	220,287
- of which building and ancillary building costs	44,709	21,738	26,469	29,130	47,922
- of which capitalised interest	4,629	5,455	7,724	10,519	13,397
- of which others	206	269	106	65	67

• Land plots held as inventory (recognised at lower of cost or market) as well as further contractually secured land plots with a purchase price volume of € 41.2 million as of December 31, 2020 form an excellent foundation on which to expand the high-margin property development business.
• For land purchases, most of the purchase price is paid usually depending on the building permit in order to reduce risk.
• Sustained margin increase expected due to favourable initial investment conditions and noticeable development gains.

Revenue potential of € 1.8 billion from realised land purchases as of December 31, 2020

• Core region HELMA Wohnungsbau GmbH: individual detached houses, pre-planned semi-detached and terraced houses as well as owner-occupied apartments in each case including land plots
• Extended core region HELMA Wohnungsbau GmbH: individual detached houses including land plots
• Project region HELMA Ferienimmobilien GmbH

Revenue potential of € 1.8 billion from realised land purchases as of December 31, 2020

	Total		Individually planned detached houses		Pre-planned semi-detached and terraced houses and owner-occupied apartments
	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	1,325	648,500	540	303,200	785	345,300
HELMA Wohnungsbau GmbH Hamburg/Hanover region	560	273,800	150	71,300	410	202,500
HELMA Wohnungsbau GmbH Leipzig region	330	140,900	270	110,900	60	30,000
HELMA Wohnungsbau GmbH Munich region	240	175,400	0	0	240	175,400
Total HELMA Wohnungsbau GmbH	2,455	1,238,600	960	485,400	1,495	753,200
Total HELMA Ferienimmobilien GmbH	1,640	565,380	0	0	1,640	565,380
Total HELMA Wohnungsbau GmbH & HELMA Ferienimmobilien GmbH	4,095	1,803,980	960	485,400	3,135	1,318,580

• Property development subsidiaries exhibit € 1.8 billion of revenue potential; most of this can be realised within the next 5 to 7 years.

• HELMA Eigenheimbau AG is expected to generate annual revenue of around € 125 million for which it does not need its own land.

• Based on the highest order book position in the company's history and the very attractive project pipeline, a significant increase in revenue, earnings and margins is expected in the medium term in conjunction with the current megatrends in the residential and holiday property markets.

• The following key figures are to be achieved by FY 2024 at the latest:
• Revenue > € 400 million (2020: € 274 million)
• Earnings before taxes (EBT) > € 40 million (2020: € 22.5 million)
• EBT margin > 10 % (2020: 8.2 %)

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 promissory note issues comprise additional options where required

The average interest rate of the financial liabilities of the HELMA Group as of the balance sheet date was around 2.23 % p.a. and is thus clearly below the average financing costs of the relevant competition.

8. Share

Performance of the HELMA share

• ISIN: DE000A0EQ578
• XETRA closing price on March 19, 2021: € 53.00
• Market capitalisation on March 19, 2021: € 212.0 million
• Free float market capitalisation on March 19, 2021: € 127.6 million

8. Share

Dividend

in €	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Dividend per share	0.20	0.35	0.53	0.63	0.79	1.10	1.40	1.30	1.85	1.54*

*Proposal

Retention of predominant portion of earnings (> 50 %) forms important pillar to stabilize equity ratio at high level compared to sector average.

9. Annex

The HELMA Group at a glance

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
	103,588	113,988	138,018	170,497	210,618	263,842	267,418	253,276	263,243	273,993
	6,132	8,774	11,793	15,971	19,494	23,455	22,529	23,776	25,171	24,756
	6,132	8,774	11,843	16,301	20,076	23,949	24,433	24,883	25,878	25,813
	4,786	7,335	10,286	14,167	17,774	21,662	20,232	21,784	22,782	22,169
	4,786	7,335	10,336	14,497	18,356	22,156	22,136	22,891	23,489	23,226
	3,381	5,755	8,271	11,690	14,956	19,568	19,130	21,153	23,594	22,461
	2,310	3,799	5,606	8,132	9,952	13,498	12,993	14,487	16,144	15,365
	5,939	8,524	11,752	16,302	15,325	20,953	17,965	14,983	18,089	20,352
in €	0.83	1.33	1.85	2.43	2.69	3.37	3.25	3.62	4.04	3.84
in €	0.20	0.35	0.53	0.63	0.79	1.10	1.40	1.30	1.85	1.54***
	21.4	23.7	24.1	24.4	23.4	21.5	21.0	23.8	24.5	24.1
	4.6	6.4	7.5	8.5	8.7	8.4	8.3	9.0	8.9	8.5
	3.3	5.0	6.0	6.9	7.1	7.4	7.2	8.4	9.0	8.2
	2.3	3.4	4.1	4.8	4.7	5.1	4.9	5.7	6.1	5.6
										2020
	106,828	131,398	158,979	193,005	269,386	286,815	245,393	278,576	296,486	312,459
										12/31/2020
										19,499
										281,673
										20,087
										116,578
										198,406
										423,372
										27.5
										12/31/2020
	in k€ in k€ in k€ in k€ in k€ in k€ in k€ in k€ in % in % in % in % in k€ Selected balance sheet items and key figures in k€ in k€ in k€ in k€ in k€ in k€ in %	2011 12/31/2011 16,311 19,830 3,793 17,067 16,552 63,868 26.7 12/31/2011	2012 12/31/2012 15,022 35,816 1,540 20,365 36,347 84,645 24.1 12/31/2012	2013 12/31/2013 15,760 78,408 6,821 28,033 68,034 136,600 20.5 12/31/2013	2014 12/31/2014 16,139 96,054 6,916 40,952 79,401 159,947 25.6 12/31/2014	2015 12/31/2015 16,342 154,369 12,493 69,898 98,581 244,994 28.5 12/31/2015	2016 12/31/2016 16,398 173,816 11,331 80,236 124,320 278,242 28.8 12/31/2016	2017 12/31/2017 16,621 199,891 16,656 88,829 149,236 317,653 28.0 12/31/2017	2018 12/31/2018 19,065 220,152 16,328 97,716 159,312 341,440 28.6 12/31/2018	2019 12/31/2019 19,919 232,210 16,703 108,594 174,898 380,164 28.6 12/31/2019

* Adjusted for the disposal of capitalised interest

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

*** Proposal

9. Annex

Financial Calendar 2021

March 04, 2021	Preliminary figures for the 2020 financial year
March 24, 2021	Publication Annual Report 2020
March 24–25, 2021	Metzler MicroCap Days (virtual)
May 03–04, 2021	Munich Capital Market Conference (Munich)
July 02, 2021	Annual General Meeting (Lehrte)
August 12, 2021	Publication Half-Year Report 2021
August 26, 2021	Hamburg Investors' Day - HIT (Hamburg)
September 20–22, 2021	Berenberg and Goldman Sachs German Corporate Conference (Munich)
November 22–24, 2021	German Equity Forum (virtual)

IR contact

MBA Elaine Heise Management Investor Relations

M.A., M.Sc. Daniel Weseloh Investor Relations

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

9. Annex

We are HELMA