Metrovacesa S A : 3Q 2023

Sol de Llevant (Palma de Mallorca)

Trading update 3Q2023

October 25th, 2023

Disclaimer

This Presentation neither constitutes nor forms part of any offer for sale or invitation to purchase or subscribe for, or request for an offer of purchase or subscription, of the shares belonging to Metrovacesa, SA ("Metrovacesa"). This Presentation, as well as the information included therein, neither constitutes nor forms part of (i) any contract or commitment of purchase or subscription of shares in accordance with the Securities Market Law, or (ii) an offer of purchase, sale or exchange of shares, or a solicitation of any type of voting rights in the jurisdiction of Spain, UK, USA or any other. "Presentation" refers to this document and any part or content of this document; any oral presentation, brainstorming sesión, and written or audio material processed or distributed during the meeting related to the Presentation or in any way associated with the Presentation. The Presentation and the information contained in the Presentation may not be reproduced, used, distributed or published, in whole or in part, in any case, except with regard to the information extracted from the Presentation and used for the preparation of analysts' reports in accordance with the applicable regulations. The breach of this obligation may result in a violation of the legislation applying to the securities market and this may lead to civil, administrative, or criminal liability. In addition to information related to historical facts, this Presentation may contain forward-looking statements relative to Metrovacesa's sales and results and to other issues such as industry, business strategy, goals and expectations concerning its market position, future operations, margins, profitability, capital investment, own resources and other operational and financial information. Forward- looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, underlying assumptions and other statements that are not about historical facts. The terms "foresee", "expect", "anticipate", "estimate", "consider", "may" and other similar expressions may identify forward-looking statements. Other forward-looking statements can be identified based on their context. Forward-looking statements are based on numerous hypotheses and assumptions relating to Metrovacesa's present and future business strategy, as well as the environment in which Metrovacesa expects to operate in the future. Forward-looking statements include and involve known and unknown risks, uncertainties and other material factors that may affect the actual results and performance of Metrovacesa or the industry. Therefore, the result and the actual performance may differ materially from those expressed or implied in these statements. None of the forward-looking statements, expectations, or perspectives included in this Presentation should be construed as a prediction or a promise. Neither should it be understood that the forward-looking statements involve any demonstration, promise or warranty whatsoever of the accuracy or completeness of the assumptions or hypotheses which such forward-looking statements, expectations, estimates, or forecasts are based on, or, in the case of the assumptions, their full inclusion in the Presentation. Numerous factors may cause Metrovacesa's results or actual performance to be materially different from any future results or performance expressly or implicitly included in any of the aforementioned forward-looking statements. If one or several of the aforementioned risks or uncertainties were to materialize, or if the assumptions prove incorrect, actual results may be materially different from those described, anticipated, expected, or projected in the Presentation. Therefore, the recipient of this presentation should not unduly rely on these forward-looking statements and their ability to predict future outcomes. Present and future analysts, securities brokers, and investors must operate based on their judgment as to the suitability and adequacy of the securities in terms of the achievement of their particular goals, having taken into consideration what is specified in this notice and the public information available and having received all the professional advice, or of any other type, deemed necessary or merely convenient in these circumstances, without having relied solely on the information contained in the Presentation. The dissemination of this Presentation does not constitute advice or recommendation by Metrovacesa to buy, sell or trade with Metrovacesa shares, or with any other security. Analysts, securities brokers, and investors should take into account that the estimates, projections, and forecasts do not guarantee the performance, results, prices, margins, exchange rates, and other facts relating to Metrovacesa, which are subject to risks, uncertainties, or other variables that are not within Metrovacesa's control, in such a way that the future results and the actual performance could be materially different to that anticipated, projected and estimated. The information contained in this Presentation which is not intended to be all-inclusive has not been verified by an independent third party and shall not be updated. The information of the Presentation, including the forward-looking statements, refers to the date of this document and does not imply any guarantee for future results. Metrovacesa expressly disclaims any obligation or undertaking to disseminate any updates or revisions of the information, including financial data and forward-looking statements. In this regard, Metrovacesa shall not publicly distribute any revision that may affect the information contained in the Presentation that is derived from changes in expectations, facts, conditions, or circumstances on which is based the forward-looking statements, or any other change that occurred on the date of the Presentation or after this date. The data relating to the industry, the market, and the competitive position of Metrovacesa contained in this Presentation that are not attributable to a specific source have been extracted from the analyses or estimates made by Metrovacesa and have not been independently verified. In addition, the Presentation may include information related to other companies operating in the same sector and industry. This information comes from public sources and Metrovacesa provides no express or implied representation or warranty, nor assumes any responsibility for the accuracy, completeness, or verification of the aforementioned data. Certain statistical and financial information contained in the Presentation are subject to rounding adjustment. Therefore, any discrepancy between the total and the sum of the amounts reflected is due to this rounding off. Some of the indicators of financial and operational management included in this Presentation have not been subjected to a financial audit or verification by an independent third party. In addition, certain figures of the Presentation, which have not been subject to financial audit either, are pro forma figures. Metrovacesa and its employees, executives, directors, advisors, representatives, agents, or affiliates assume no liability (for fault or negligence, direct or indirect, tort or contract) for damages that may arise from the use of this Presentation or its content or that, in any case, are related to this Presentation. The information contained in this Presentation does not constitute legal, accounting, regulatory, tax, financial, or any other type of advice. The aforementioned information has not been prepared to take into consideration the needs or particular situations nor the investment, legal, accounting, regulatory, tax, or financial goals of the recipients of the information. Solely recipients shall be responsible for forming their judgment and reaching their own opinions and conclusions concerning these matters and the market, as well as for making an independent assessment of the information. Solely recipients shall be responsible for seeking independent professional advice in connection with the information contained in the Presentation and any action taken based on such information. No one takes responsibility for the information or for any actions taken by any recipient or any of its directors, executives, employees, agents, or associates based on the aforementioned information. Neither this presentation nor any part thereof are contractual in nature, and may not be used to form part of or constitute any kind of agreement. Upon receipt of or attendance to the Presentation, the recipient declares its conformity and, therefore, to be subject to the restrictions specified in the preceding paragraphs.

2.

Agenda

Table of Contents

1. Highlights

2. Business Update

3. Closing remarks

Today's Presenters

Jorge Pérez de Leza	Borja Tejada	Juan Carlos Calvo
CEO	CFO	Strategy & IR

3.

Nieremberg 14 (Madrid)

1. Highlights

Highlights

Market context

MVC

operations

Financials

Housing demand is holding up

• Good tone in residential demand, despite higher mortgage rates and a volatile macro context

Solid operational performance

• 3Q is our strongest quarter in pre-sales so far this year (+37% YoY), despite the usual seasonality
• Backlog continues to increase: +13% vs Dec22, with a 2.9% higher avg. selling price
• Push on new construction starts in 3Q: 949 units started in the quarter and 1,527 in 9M
• Land sales: binding contracts are gradually transforming into notarial sales, as expected

New dividend in December, based on good cashflow visibility

• Confirmation of cashflow targets for the full year: €100m to €150m
• Proposed dividend of €0.33 p.s. in December, represents a 10% total yield for the year 2023(1)
• 4Q will be the strongest quarter of the year in both residential deliveries and land sales
• Gross development margins holding up (22.4% in 9M23), guidance remains at low-20s%

Notes:	5.
(1) Calculated over share price at the beginning of the year 2023 (€6.37/sh)

La Sínia (Martorell, Barcelona)

2. Business Update

Key operational data

as of September 30th, 2023

Active	Construction
projects

Sales Backlog (1)

3,591	€1,148m		4,650	units under (3)
Sold units	€320 k/unit ASP	(2)
		construction
Under commercialization		89	underdevelopments
6,728	€347 k/unit ASP (2)
units	121 projects			construction (3)
Active units
7,754	141 active projects
units

Notes:

1. Defined as cumulative pre-sales (reservations + contracts) minus deliveries
2. ASP = Average Selling Price
3. Includes units with construction works completed
4. Pre-salesin the period, net of cancellations

Deliveries /

Sales

982 units delivered

in the period

€294 k/unit ASP (2)

1,402 units

pre-sold(4)

in the period

€317 k/unit ASP (2)

Land portfolio

Land Sales

€13.1m in P&L revenues €41.3m Total binding

contracts

Land Purchases

€26m in 9M23

~28.2k

Residential units in land bank

Financials

€315m

Net debt

€183m

Total cash

€101m

Unrestricted cash

12.5%

LTV ratio

7.

Pre-sales

Continued positive demand dynamics in 3Q

Net pre-sales: increase in volumes in 9M

# units

			Pre-sales per quarter (# units)
1,341	1,402
					178
					BTR
		568						494
			412			425	483
			361	318
					BTS
9M22	9M23	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23

+5% YoY

+37% YoY

Monthly absorption rate (1)

5%

4%

3%

2%

Average

2019-2023

1%

0%

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

2.4%

in 3Q23

ASP of €317k/unit

In 9M23 pre-sales

Positive demand dynamics

3Q, the strongest quarter in

pre-sales so far in 2023, despite usual seasonality

Notes:

(1) Calculated as monthly net presales divided by average number of units in commercialisation, including both sold and unsold units

8.

Residential deliveries

On track to meet FY23 targets

9M23 deliveries: increase in ASP and gross margin

Revenues	€346m	€289m
1,400
1,200	1,327
1,000
800		982
600
# units
400
200
0
	9M22	9M23

Gross	21.2%	22.4%
Margin
ASP	€260k/unit	€294k/unit

+13% YoY

Deliveries per quarter (2023)

410

331

241

1Q23

2Q23

3Q23

Includes delivery of two BTR projects in Mallorca (204 units)

Confirmation of FY targets

• High concentration of deliveries in 4Q this year due to the calendar of project completions
• As of September, >800 units are already sold and built, pending delivery

9.

Operational activity

Mid-term objective of >2,000 units p.a.

Improved operational metrics

Operational KPIs are a good indication of revenues for the next ~3 years

✓ Future revenue of €1.1bn, with ASP

3,591

Pre-sales

3,171

of €320k per unit (+2.9% vs Dec22)

3,033

backlog

✓ Includes 4 BTR projects (386 units)

(units)

in Valencia and Seville

FY21

FY22

9M23

✓ Indicates potential deliveries within

4,650

Units under

4,007

4,101

the following 24 months

construction

✓ 1,527 units started construction in

9M23 (949 in 3Q)

FY21

FY22

9M23

		6,235	6,728	✓ 1,471 commercialization starts in
Units in			9M23
5,555
commerciali-				✓ Potential revenues of >€2.3bn, over
sation				the next 36 months
	FY21	FY22	9M23

Presales coverage

(% of target deliveries already pre-sold)

2023E 2024E 2025E

Construction coverage

(% of target deliveries already under construction)

2023E

2024E

2025E

10.