Impact Developer ntractor S A : obtained revenues of 169.5 million RON in 2023 and a net profit of 34.9 million RON

• IMPACT obtained revenues of 169.5 million RON in 2023, net profit being 34.9 million RON;
• IMPACT Group's gross margin increased to 39% in 2023 (32% in 2022);
• The company sold 157 units in 2023, which generated revenues of 119.5 million RON;
• As of December 31, 2023, IMPACT had 377 pre-sold and reserved units, with a value of 216 million RON;
• 74% of completed units were contracted at the end of 2023;
• As of December 31, 2023, IMPACT had a construction permit for 2,693 units with a market value of 1.9 billion RON;
• IMPACT Group's indebtedness stood at 28% at the end of 2023, with the cash position remaining stable at 51.3 million RON.

IMPACT Developer & Contractor S.A. ("Impact") (ticker symbol IMP), the first real estate developer listed on the Bucharest Stock Exchange, ends 2023 with a preliminary consolidated turnover of 169.4 million RON, a net profit of 34.9 million RON and a gross margin of 39%.

In 2023, IMPACT signed sale-purchase contracts for 157 units in the GREENFIELD Baneasa, LUXURIA Residence and BOREAL Plus compounds, which, together with related parking spaces, gardens and storage rooms, generated revenues of 119.5 million RON. The results were influenced by a number of factors: residential market conditions that recorded decreases of 7% and 19%, respectively, in real estate transactions in Constanta and Bucharest, the cities where the company operated, the delay in the approval procedures for the reception of 732 new apartments in the GREENFIELD Baneasa neighborhood, which generated a lower housing stock compared to 2022, on the most important market segment of the company.

At the end of the year, IMPACT had 377 pre-sold and reserved housing units, of which 320 for the new apartments in GREENFIELD Baneasa, to be delivered this year. In 2024 and early next year, 356 pre-sold units at the end of 2023 will generate revenues of about 206 million RON.

IMPACT Group's gross margin increased from 32% to 39% in 2023. Indebtedness held steady at 28%, while trade debt fell by 26%. At the same time, the company maintained its stable liquidity position, at 51.3 million RON.

"The low volume of mortgage loans, as a result of the major increase in interest rates, together with the postponement of the approval procedures for the reception of new apartments in GREENFIELD Baneasa, had a significant impact on the company's revenues, which are recorded only after receiving the amounts from the sale-purchase contracts. After a year dominated by high inflation and unpredictability, 2024 comes with good prospects: the delivery of 732 apartments in GREENFIELD Baneasa and the continuation of construction works at another 435 units in the neighborhood, the liquidation of the stock of units in LUXURIA Residence, for which an increased interest was maintained, as well as the planning of the GREENFIELD Copou (Iasi) and ARIA Verdi (Bucharest) projects.", stated Constantin Sebesanu, CEO IMPACT Developer & Contractor.

IMPACT owns a valuable land portfolio in Bucharest, Constanta and Iasi, of about 71 ha, with development potential for 5 more new sustainable, large-scale projects, with an estimated market value of over 7.4 billion RON. For one of these projects, GREENFIELD Copou - Iasi, a project with a market value estimated at over 870 million RON, the company obtained the construction permit in July 2023. At the same time, IMPACT has made important steps in the authorization process for ARIA Verdi, a project with a market value of over 1.7 billion RON, located in the Barbu Vacarescu area of Bucharest, obtaining the urbanism certificate.

As of December 31, 2023, IMPACT had construction permits for 2,693 units in Bucharest, Iasi and Constanta, with an estimated market value of 1.9 billion RON. Of these, 982 homes are in various stages of construction.

By the end of 2023, IMPACT leased over 90% of GREENFIELD Plaza, the first shopping center in its portfolio, BREEAM Excellent certified. With a market value of over 124 million RON, the mixed-use project has an area of 14,001 sqm, covering retail, wellness and office functions. A significant part of the energy needs for Wellness Club by Greenfield, the IMPACT office building and the buildings in the fourth phase of development of GREENFIELD Baneasa, including public lighting, will be provided by the 7,935 sqm photovoltaic park completed last year.