Metrovacesa S A : Investor Presentantion

We build innovative
and sustainable housing,
unique and welcoming homes
where to live in	CORPORATE PRESENTATION. March 2024
	Málaga Towers - Living (Málaga)

Disclaimer

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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. 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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. 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   2.

Agenda

Table of Contents

1.

2.

3.

4.

5.

Executive summary

Business activity

Corporate Information

Sustainability and ESG

Appendices

3.

Venere (Marbella, Málaga)

1. Executive Summary

Metrovacesa

At a glance

MISSION

VISION

Creating homes to improve our clients' lives

Being the developer of choice for customers, employees, communities and shareholders

#1

homebuilding

The largest land bank	GAV by use		GAV by land permitting		GAV by location
among developers:			Under		Others	Madrid
			Fully-
			25%
	Commercial		25%
	Residential	permitting	permitted
€2,411m	18%
82%	23%	77%

operator in Spain

Competitive

strengths

Growth visibility

GAV Dec.23

~29.3k

residential units in land

Access to land

• In-houseland management team
• High cashflow conversion

Pre-sales backlog (units)

3,033 3,171 3,332

2,567

2,131

909

541

FY17 FY18 FY19 FY20 FY21 FY22 FY23

Access to financing

• Low LTV ratio of 13.8%
• No significant maturities until 2026
• Diversified financing mix

Under construction (units)

4,517

4,007 4,101

3,393 3,550

1,329

955

FY17 FY18 FY19 FY20 FY21 FY22 FY23

Balearics

3%

Valencia
6%		Barcelona
	Sevilla	17%
	Málaga
	10%
	14%

A complete and varied offer

• Geographical diversification in Spain
• Targeting broad and solvent client profiles through BTR and BTS(1)
• Also present in the commercial land segment

Under commercialisation (units)

6,235 6,385

5,378 5,440 5,555

3,840

1,222

FY17 FY18 FY19 FY20 FY21 FY22 FY23

Notes	5.
(1) BTR: Build to Rent (institutional buyer) and BTS: Build to Sell (individual buyers)

Mission	Core Values
and Vision
MISSION	CORE VALUES
Client Centric Approach	Committed People
Creating homes to
Clients are at the forefront of every	We strive to provide a safe,
improve our clients' lives
company initiative. Their	challenging and rewarding
VISION	satisfaction is our everyday goal	environment for our employees

Become the national leader in residential development, being the developer of choice for customers, employees, communities and shareholders. To that end we must continuously achieve superior financial and operating results while adhering to the highest

standards of business conduct

Quality Products

We deliver high quality products that combine innovation in harmony with the environment

Shareholder Return

We work to maximize long-term return to our shareholders while focusing on risk management and being mindful of our overall responsibilities

Care for our Communities

We make a difference by benefiting communities where we operate with urbanistic solutions that improve their day-to-day lives

Impeccable Corporate Governance We do business in a socially responsible and ethical manner. We respect the law, protect the environment and never compromise integrity

6.

An established heritage

Of 100 years of history

Incorporation of

Compañia Inmobiliaria

Metropolitana (CIM)

and Compañia	Incorporation
of real estate
Urbanizadora
dealer company
Metropolitana (CUM)
Vacesa, focused
in Madrid
on rental
	1941		1953
1918		1946

Development of

Torre Madrid

(38 floors,

165m height)

1989

1957

Start of international expansion

Annual deliveries of

1. 2,200-2,600from
   2005 to 2008 in a highly competitive environment

2009

2005

Company re-listing

Delisting of

Metrovacesa

	€2.6 Bn of GAV (1)
2016-17	Renewed focus on	2023
homebuilding
2013	2018

Company listed on the

Madrid Stock

Exchange

Development of

Edificio España

(25 floors, 117m height)

Merger of CIM, CUM and Vacesa creating

Metrovacesa, S.A.

Due to financial crisis, banks become main shareholders of

Metrovacesa, S.A.

Spin-off of yielding assets portfolio to MERLIN Properties

€1.1 Bn (1) contribution by Santander, BBVA and

Popular of "cherry-picked" land plots

• 522m of dividends distributed to

shareholders in the

2019-2023 period

Notes	7.
(1) Gross Asset Value (GAV) based on valuation reports from Savills and CBRE

Moreras Torre, Valencia

Strategy

Focus on cashflow generation and reinforcing our development business

Key strategy pillars

Housing development	• Reinforce leading position in Spain
• Platform with a recurrent activity of ~2.0k units p.a.
Land management	• Transformation of land to fully-permitted
• Optimise the size of the residential land portfolio
Commercial segment	• Unleash the value of the current portfolio
• Case-by-case approach

Focus on cashflow generation	•	CF conversion of ~30% in deliveries and
	~100% in land sales
Attractive dividend distribution	•	~80% of Cash Flow generation

€522m dividends

between 2019-2023

8.

Rich dividend payout

€522m since IPO

Dividend history
€ per share
				€159m
					̴€0.55
			€91m		Extraordinary
	€61m	€60m		1.05
€50m			€50m	€50m
			0.60
0.33	0.40	c0.40			0.33	0.33
May19	May21	Dec21	May22	Dec22	May23	Dec23

€0.8 /sh	€1.65 /sh	€0.66 /sh
in 2021	in 2022,	in 2023

(22% yield)

10% Yield

in 2023 (2)

Total in 2019-2023:

€522m or €3.44/sh

• ~ 42%(1) of the market cap
• Without withholding tax: paid against reserves

Dividend

policy

• +80% payout on the operating cash flow
• • Limited to an LTV of 15%-20%
• Normally, two annual payments:
• • Nov/Dec: interim
  • May: final dividend

Notes

(1)	As of December 29th, 2023;	9.
(2)	Calculated over the share price at the beginning of the year 2023 (€6.37/sh)

Our Land Portfolio: A Competitive Advantage

Provides visibility on future project launches

Current residential land portfolio

MVC portfolio(1): GAV €2, 411m

73% in the top 5 provinces

8.0k

3,698

Units active

29.3k

Total3,698units>5.0k

Units to be3,698FP in core

locations over next 2 yrs

• Platform continuity secured for long term activity
• Limited land capex, with only partial land replenishment

3%	<1%
<1%
		<1%
	1%	17%
	1%
	26%
	2%
	6%	3%
	4%

A gradual reduction in residential land portfolio

2018-2023 (k units)

(6.4)

(3.9)1.6

38.0

29.3

Land bank 2018

Homes delivered

Land sales

Land acquired & adj

Land bank 2023

• Active land rotation
• • Land sales, of non-core assets to optimise portfolio size
  • Land acquired, with only partial land replenishment to top-up purchases in strategic locations (ie. Los Cerros, Madrid)

	1%	1%
10%	<1%	2%
3%	14%	GAV > €100M (74% GAV)
3%		GAV €30-100M (22% GAV)
		GAV < €30M (4% GAV)

GAV by use		GAV by status
Commercial	Residential	Under	Fully-
18%	82%	permitting	permitted
		23%	77%

Notes:	10.
(1) Distribution as % of GAV Dec.2023. Excludes provinces with small exposure (value below €10m)