One United Properties : 2021 Annual report

One Tower

165 Calea Floreasca, 12th floor, Bucharest, Romania, 014459

[phone]

[e-mail]

www.one.ro

ONE UNITED PROPERTIES S.A

Registered office: 20 Maxim Gorki Street, District 1, Bucharest, Romania (EUID) ROONRC.J40/21705/2007, RO 22767862

The consolidated and individual financial statements presented on the following pages are prepared in accordance with International Financial Reporting Standards, as adopted by (XURSHDQ 8QLRQ ³,)56´ 7KH FRQVROLGDWHG and individual financial information as of December 31st, 2021, are audited.

The financial figures presented in the descriptive part of the report that are expressed in million RON are rounded off to the nearest integer. This may result in small reconciliation differences.

TABLE OF CONTENTS

2021 Annual Report of One United Properties S.A.

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MESSAGE FROM THE FOUNDERS

Dear Stakeholders,

From the delivery of One Floreasca City and finalization of the first phase of One Cotroceni Park, the acquisition of landmark historical building for One Athénée, announcement of the new residential developments of One Lake Club and One High District, to our successful listing on the Bucharest Stock Exchange - 2021 was a year of milestones for One United Properties. We closed 2021 with historical annual turnover of RON 1.1 billion and a gross profit of RON 0.6 billion, with ambitious targets for 2022 to outperform these numbers.

We debuted on the stock exchange having a solid development plan based on the significant potential of the Bucharest residential and office market, with the intention to continue growing and seize a good part of this potential. The 2021 results validate the leading position that One United Properties holds in the market for premium residential and mixed-use developments. Bucharest continues to show extraordinary development potential. The excellent kick-off of One Cotroceni Park in the second half of 2021 proved the opportunity that One United Properties has in expanding its high-end brand into larger-scale medium to medium-high income developments. We will continue to invest in similar developments, such as One Lake District and One High District, where we will start construction in 2022.

In parallel, our office division continues growing strong as we have reached at the end of 2021 almost full occupancy of One Tower and 78% lease for the first office phase of One Cotroceni Park, which was completed in December 2021. Today, our office portfolio has a GLA of 101K square meters and we plan to reach by this yearend GLA of 136K sqm. We target RON 72 million in rental income in 2022, a significant increase compared to 2021, driven by our growing office portfolio and supported by the commercial component, represented by the majority stake we hold as of 2022 in Bucur Obor S.A.

One United Properties thrived last year, and the boost we got from our IPO is setting excellent premises for continued, strong performance in the years to come. The exceptional performance of our team is a confirmation to all our stakeholders that we are determined to maintain the leading position in the market for premium residential and mixed-use developments and to keep delivering consistent returns to our shareholders. In line with our dividend policy, the Board of Directors is proposing to the Annual General Meeting of Shareholders a distribution RON 75 million in gross dividends for 2021. In line with our dividend policy and considering the 36% net margin on residential developments in 2021, we will focus on the reinvestment of most of the profits to benefit from the market's growth opportunities and build additional value for all of you - our stakeholders.

We invite you to read our 2021 Annual Report, where you will find details about our activity last year. As a continuation to this report, in the first half of 2022, we will publish an additional report ± the 2021 Sustainability Report, where you will get an insight on how One United Properties performed from the ESG-standpoint. Thank you for being ONE in 2021 and we look forward to an excellent 2022 on the Bucharest Stock Exchange!

Victor Capitanu co-CEOAndrei-Liviu Diaconescu

co-CEO

MESSAGE FROM THE CHAIRMAN

Dear shareholders, clients and colleagues,

2021 was an outstanding year for One United Properties, during which our company thrived in numerous regards, including its strategic and organizational development, business growth and profitability. While reporting four consecutive record-breaking quarters, we have succeeded in attracting both significant WDOHQWV DQG GLUHFW LQYHVWPHQW DW KRPH DQG IURP DEURDG ZKLOH IXUWKHU UHGXFLQJ RXU JURXS¶V OHYHUDJH

We have set ourselves the highest standards for sustainability, environmental impact and quality of both materials and architecture across all our projects. As a result of this commitment, our clients, investors, and staff look back on an exceptionally successful twelve-month period and the Board of Directors together ZLWK WKH JURXS¶V PDQDJHPHnt are ensuring that the periods ahead will be a continuation thereof.

Our confidence in the future of green, sustainable real estate has made ONE a frontrunner in this segment. While we are reaping the benefits thereof, we are equipping our business for the next growth chapter.

There were several important milestones in 2021, which have confirmed our confidence in our business model and showed the vast appreciation of our work by our clients and the financial markets. First, we have successfully completed an IPO and became the third largest Romanian entrepreneurial company listed on the Bucharest Stock Exchange. The IPO was oversubscribed in both institutional and retail tranches, with the guaranteed allocation retail tranche fully subscribed within less than one minute. Shortly thereafter, we were admitted to several indices of the Bucharest Stock Exchange, including the BET index, which follows the most liquid listed companies. Later in the year, the shares of One United Properties entered the FTSE Global All Cap and the FTSE Global Small Cap indices. Today, One United Properties is one of the most covered Romanian stocks.

Second, our business has reported an outstanding performance. Notably, we were able to increase our turnover by 109% year-on-year, reaching a historical milestone of RON 1.120 billion (EUR 228 million) in consolidated annual revenue. In both residential and office segments, revenue and profits grew significantly, enabling a nearly tripling of our consolidated gross profit to RON 604.4 million (EUR 122.9 million), while net profit reached RON 509.7 million (EUR 103.6 million). Importantly, our growth and performance were enabled by our exceptionally strong business and financial health. We have almost tripled our cash position to RON 508.4 million (EUR 102.7 million) and reduced our loan-to-value ratio by 6%, down to 24%.

Ultimately, an essential area that we have successfully addressed in 2021 was the enhancement of our internal corporate governance structures and processes. As a world-class corporation, we take the matters of corporate governance and investor relations with greatest responsibility. Accordingly, we have introduced a comprehensive framework to ensure that best-practice governance is thoroughly implemented and diligently managed across our group.

Chairman 5

Looking ahead, our expertise in residential, mixed-use, and office real estate development and our focus and persistence in terms of both quality and sustainability of our developments, will continue to serve as our long-term foundation. These exceptional, invaluable assets will allow us to bring unique homes to families and sustainable spaces to businesses, while continuously delivering outstanding performance for our shareholders.

On behalf of the Board of Directors, we are proud to serve the ONE brand today and going forward, and we thank our clients, staff and investors for their continued support and dedication.

Claudio Cisullo