Aedas Homes S A : H1 2022 Management Report

Bagaria, Cornellà de Llobregat

Consolidated management report

H1 2022

30 September 2022

LEGAL DISCLAIMER

By attending this presentation (the "Presentation") and/or by accepting this Presentation you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this disclaimer.

This presentation has been prepared by AEDAS Homes, S.A. (the "Company") and comprises slides for a corporate presentation to the market of the Company and its subsidiaries (the "Group").

For the purposes of this disclaimer, "Presentation" means this document, its contents or any part of it. This Presentation may not be copied, distributed, reproduced or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient to any other person, for any purpose other than the aforementioned.

This Presentation has not been verified by independent third parties and therefore no re- presentation, warranty or undertaking, express or implied, is made, nor is any guarantee given as to the fairness, accuracy, completeness or correctness of the information or opinions contained herein and nothing in this Presentation is, or shall be relied upon as, a promise or representation.

None of the Company nor any of its employees, officers, directors, advisers, representatives, agents or affiliates shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss, damage or harm howsoever arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation.

This Presentation is for informational purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the Company's publicly available information and, if applicable, the oral briefing provided by the Company. The information and opinions contained in this Presentation are provided as at the date of the Presentation and are subject to verification, correction, completion and change without notice. In giving this Presentation, no obligation is undertaken to amend, correct or update this Presentation or to provide access to any additional information that may arise in connection with it is undertaken.

Likewise, it is not the Company's intention to provide, nor can this material be deemed to provide, a complete and comprehensive analysis of the Company's financial or trading position or prospects.

This Presentation does not constitute investment, legal, accounting, regulatory, taxation or other advice and does not take into account your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Company and the Group. You are solely responsible for seeking independent professional advice in relation to the Company and the Group. Neither the Company nor its affiliates, nor any of their employees, officers, directors, advisors, consultants or agents assumes any responsibility or liability for any information or action taken by you or any of your officers, employees, agents or associates based on such information.

This Presentation contains financial information regarding the businesses and assets of the Company and the Group. Such financial information may not have been audited, reviewed or verified by any independent accounting firm. The inclusion of such financial information in this Presentation or any related presentation should not be regarded as a representation or warranty by the Company, its affiliates, advisors or representatives or any other person as to the accuracy or completeness of such information's portrayal of the financial condition or results of operations by the Company and the Group and should not be relied upon when making an investment decision. Certain financial and statistical information in this document has been subject to rounding off adjustments. Accordingly, the sum of certain data may not conform to the expressed total.

Certain statements in this Presentation are forward-looking. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions, many of which are generally beyond the Company's control, and could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These inclu- de, among other factors, changing economic, business or other market conditions, changing political conditions and the prospects for growth anticipated by the Company's management. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Any forward-looking statements contained in this Presentation and based upon past trends or activities should not be taken as a representation that such trends or activities will continue in the future.

The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The market and industry data and forecasts that may be included in this Presentation were obtained from internal surveys, estimates, experts and studies, where appropriate as well as external market research, publicly available information and industry publications. The Company, its affiliates, directors, officers, advisors and employees have not independently verified the accuracy of any such market and industry data and forecasts and make no representations or warranties in relation thereto. Such data and forecasts are included herein for informational purposes only.

The distribution of this Presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions.

Neither this document nor any of the information contained herein constitutes or forms part of, and should not be construed as, an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, or any advice or recommendation with respect to such securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any purchase of or subscription for securities of the Company should be based solely on each investor's own analysis of all public information, the assessment of risk involved and its own determination of the suitability of any such investment. No decision should be based on this Presentation.

This document is a translation of a report originally issued in Spanish. In case of any discre- pancy, the Spanish-language version will prevail.

Bagaria, Cornellà de Llobregat

Consolidated management report H1 2022

2

ContentsSnapshot

01. First-half 2022:
Executive summary	4
1.1. Letter from CEO David Martínez	4
1.2. Market indicators	6
1.3. Business performance	9
1.4. KPIs	14

02. Non-financial information

17

03. Financial information	22
3.1. Statement of profit or loss	22
3.2. Balance sheet	24
3.3. Statement of cash flows	25
3.4. Borrowings, liquidity and capital resources	27
3.5. Events after the reporting period	29

Landbank:

17,653units

(vs September 2021: 17,626 units)

9,264units

on the market

(vs September 2021: 7,668 units)

Order book:

4,789units

(€1.490m)

(vs September 2021: 4,227 units (€1.5bn))

ASP sales:

€396k

(vs H1 2021: €328k)

5,926units

under construction (vs September 2021: 4,598 units)

Consolidated management report H1 2022

3

01. First-half 2022: Executive summary

01. First-half 2022: Executive summary

1.1. Letter from CEO David Martínez

In the first half of the AEDAS Homes 2022 fiscal year, we have significantly consolidated our outlook on our future goals, despite the uncertainty and volatility of the current economic context.

Solid sales results

The company's Order Book, valued at €1.49 billion, provides us with extraordinary visibility over revenues and cash flows for the next three years.

As of 30 September, 96% of the units slated for delivery in FY 2022, 66% of those slated for FY 2023, and 13% of those slated for FY 2024 are forward sold.

This six-month period was characterised by a normalisation in demand and significant increases in average selling price (ASP). Between April and September, the company forward sold a total of 1,058 units, all to private customers, for €419 million, at an ASP of €396,000 per unit, which is up 20% over the same period in 2021. We also saw an improvement in absorption rates over the period, which are now converging towards average levels at around 6.3%.

The increase in the ASP during the period is a reflection of the type of home that our customer base seeks. The typical AEDAS Homes customer is a dual-income, financially solvent family looking

to trade up to a more comfortable, energy efficient new-build home. Against a backdrop of rising interest rates and economic uncertainty, this customer base is expected to demonstrate greater resilience, given that the affordability ratio for this segment is expected to stay under long-term historic averages of around 33%.

Investment activity

In terms of investment, we have maintained our highly selective, opportunistic approach, focusing on optioning investments, which has allowed us to defer payments and minimise cash outflows.

Going forward, we will continue to maintain the cautious, highly selective approach we have taken in the last six months, knowing that the size and ready-to-build nature of our current landbank gives us nearly full coverage

of our goals through our FY 2026 deliveries.

"Solid business performance and reinforced position in terms of visibility into future revenue and cash flows"

David Martínez,

Consejero Delegado.

Consolidated management report H1 2022

4

01. First-half 2022: Executive summary

Financial results and operating activity

Earnings-wise, the Company brought in close to €215 million in revenue, derived largely from the delivery of 524 units to customers. The average ticket for these deliveries comes to €402,000,

up nearly 14% over the same period in 2021, and gross margin stands at 28.1%, which is in our high range. Furthermore, we are reporting €21 million in EBITDA and €7.1 million in net profit.

As such, we closed the first six months in a solid financial position, with inventories of €1.72 billion, reflecting elevated levels of construction progress on our sites and land investment during the period, €120 million in cash and a net LTV of 22.7%. The company continues to enjoy a high level of solvency, given the stability of our volume of working capital and the fact that the majority of our debt is long-term, secured under optimal conditions at fixed rates.

At the end of H1 2022/23, the Company had close to 9,300 on the market and 6,000 units under construction, with 625 additional units completed.

Visibility on achievement of future goals

Our solid operating performance to date and our reinforced position in terms of visibility over future revenues and predictability of cash flows mean that the company is entering the second

half of the year with our FY 2022 delivery target almost fully de-risked and on track to meet our annual financial goals.

Sector outlook

I'd like to close by saying that while in the short term we do expect headwinds, which are likely to result in homebuyers exercising more caution due to uncertainty around the expected economic slowdown, in the mid-term, the prospects for the Spanish residential real estate sector remain positive.

This is due to the strong underlying fundamentals that our sector enjoys: a structural imbalance between strong demand for new-build housing and low levels of supply, limited production capacity, record levels of household savings, and reasonable debt levels and disciplined investment among homebuilders.

While we are not immune to the global economic situation, these fundamentals, coupled with our company's experience and leading market position, give us many reasons to feel confident about AEDAS Homes' capacity to achieve our business goals in the coming years.

Consolidated management report H1 2022

5