. May 2016 Report on the first quarter 2016!
Company Highlights Warimpex Finanz- und Beteiligungs AG, Vienna is one of the largest investors in commercial property in the CEE region with 15 Hotels (3,700 rooms) and 4 office buildings (32,000 sqm) in 7 countries Superior locations and upper-end quality of hotels provide good customer value Intercontinetal****, Warsaw Andel s****, Lodz Kempinski*****, Vienna Crowne Plaza****, St.Petersburg Growth and value creation through active management of undervalued assets in emerging markets EUR 36 mn. (EUR 0.7/share) hidden reserves as of 31.12.15 Listed in Vienna and Warsaw and traded at discount to NNNAV Proven strong track record of professional, high-experienced management team and high transparency 2
Warimpex Snapshot Business Model Warimpex Finanz- und Beteiligungs AG, Vienna Acquisition Development Hotels & Investment Properties Growth Potential Long-term Value Creation Ongoing Income Sale Acquisition of land next to and below Hotel Chopin in H1 2013 Lease of land next to AIRPORTCITY St. Petersburg for car park in 2014 Acquisition of land in Lodz (2015) Zeppelin tower, AIRPORTCITY St. Petersburg completed and fully let to Gazprom (June 15) New tenant for Erzsébet Office in Budapest (Sept. 2015) Further developments in Lodz, St. Petersburg, Krakow and Budapest Core Assets Non - Core Assets Palace Hotel, Prague (July 2013) Le Palais office, Warsaw, (Oct 2013) Le Palais Hotel, Prague (Dec. 2013) Savoy Hotel, Prague (June 2014) ü ü Jupiter office, St. Petersburg (Feb. 2015) Andel s Berlin (July 15) ü Angelo + Liner Ekaterinburg (Sept 15) 3 3
Company Overview stake adjusted as of 31.12.2015 (31.12.2014) Strong regional diversification Real estate held by sector (share of GAV) Total GAV 341mn. Real estate assets by country (share of GAV) offices 17% (12%) development 9% (11%) DE 0% (11%) F 13% (9%) RO 4% (3%) CZ 22% (23%) RU 18% (23%) hotels 74% (77%) HU 7% (4%) PL 36% (27%) 4
Portfolio Overview 1 Hotel 1 Office Development AIRPORTCITY St. Petersburg Offices incl. land reserve 6 Hotels 1 Office Building Development: 3 offices 1 land reserve 4 Hotels 2 Hotels 1 Hotel 3 Office Buildings 1 Hotel land reserve 5
Hotel Portfolio at a Glance Hotels (as of 31.03.2016) City 100% Country Rooms Stake Occupancy Rate RevPAR 1-3/16 1-3/15 1-3/16 55 % 53 % EUR 38 Angelo**** Prague CZ 168 100 % Diplomat**** Prague CZ 398 100 % Dvořák**** Karlovy Vary CZ 126 100 % operating lease Angelo**** Plzeň CZ 144 50 % Angelo**** Katowice PL 203 50 % InterContinental**** Warsaw PL 404 50 % operating lease Chopin*** Krakow PL 220 100 % Amber Baltic**** Międzyzdroje PL 191 100 % Andel s**** Krakow PL 159 100 % operating lease Andel s**** Łódź PL 278 100 % Angelo Airporthotel**** Bucharest RO 177 100 % Crowne Plaza**** St. Petersburg Airport RU 294 55 % Dream Castle**** Paris FR 397 50 % Magic Circus**** Paris FR 396 50 % Palais Hansen Kempinski***** Vienna AT 152 9,88 %** 3,717 rooms in total (stake adjusted 2,672 rooms) Note: ** recognized as financial instrument 6
Hotel market 1-3 / 2016 Occupancy, Room Rate, Room RevPAR and Total Gross Operating Profit Occupancy is the proportion of the bedrooms available during the period which are occupied during the period Room Rate in EUR is the total bedroom revenue for the period divided by the total bedrooms occupied during the period 80% Occ. 1-12/2014 Occ. 1-3/2016 120 ARR 1-3/2015 ARR 1-3/2016 70% 100 60% 80 50% EUR 60 40% 40 30% 20 20% Bucharest Prague St. Petersburg Warsaw 0 Bucharest Prague St. Petersburg Warsaw 80 Room RevPAR is the total bedroom revenue for the period divided by the total available rooms during the period RevPAR 1-3/2015 RevPAR 1-3/2016 GOP PAR is the Total Gross Operating Profit for the period divided by the total available rooms during the period 60 GOP PAR 1-3/2015 GOP PAR 1-3/2016 70 60 50 50 40 EUR 40 EUR 30 30 20 20 10 10 0 Bucharest Prague St. Petersburg Warsaw 0 Bucharest Prague St. Petersburg Warsaw Source: www.trihospitality.com 7
Operating Cash Flow from Hotel Portfolio Net Operating Profit (EUR) per available room Difficult years in hotel industry Solid recovery Impact of adverse development in Russia 12.131 11.837-52 % 54 % 8.088 6.890 7.375 8.031 8.031 8.796 8.954 8.752 5.853 1.094 990 2006 Y 2007 Y 2008 Y 2009 Y 2010 Y 2011 Y 2012 Y 2012 Y 2013 Y 2014 Y 2015 Y Q1 2015 Q1 2016 Source: Annual Reports 2006 2014, half year report 8 8
Office Portfolio at a Glance 100% 32,000 sqm office in total (stake adjusted 25,000 sqm) Offices (as of 31.03.2016) City Country Area Stake Occupancy rate (approx.) Tenant Zeppelin St. Petersburg RU 15,600 sqm 55% 100% Gazprom Erzsebet Office Budapest HU 15,000 sqm 100% 90% Dioszegi Office Budapest HU 800 sqm 100% 100% Sajka Office Budapest HU 600 sqm 100% 100% Groupama Garancia Insurance Zeppelin, AIRPORTCITY St. Petersburg AIRPORTCITY, St.Petersburg Parkur Tower, Warsaw Erszebet Office, Budapest 9
Pipeline Overview Development Projects Expected opening Total area / no. of rooms Beneficial ownership (%) Planning phase: Airport Car Park, AIRPORTCITY St. Petersburg (under construction) end 2016 approx. 20,000 m 2 55 Mogilska Office, Krakow 2017/18 approx. 20,000 m 2 100 Chopin office, Krakow Ogrodowa Office, Lodz end 2017 approx. 26,000 m 2 100 Chopin Office, Krakow 2018 approx. 26,000 m 2 100 AIRPORTCITY St. Petersburg Phase III Offices approx. 40,000 m 2 55 Hotel, Budapest approx. 170 rooms 100 Land reserves in Bialystok, St. Petersburg (Phase IV up to 110,000 m 2 ) - - Mogilska Office, Krakow 10
Development Pipeline Mogilska Office, Krakow Prime location in the commercial district of Krakow Direct connection to public transportation at Rondo Mogilskie Vicinity of courts and public offices Total of approx. 20,000 m 2 (12,500 m 2 leasable office space) Underground Parking is provided 11
Development Pipeline Chopin Office, Krakow New office buildings to be built near to Chopin hotel Krakow One of the best office locations in the city at Mogilskie Roundabout (one of the main public transport hubs, 10 min from railway station and city centre) Total of approx. 26,000 m 2 (approx. 21,500 m 2 of leasable office area) Underground Parking is provided 12
Development Pipeline Ogrodowa Office,Lodz New office buildings to be built near to andel s hotel Lodz One of the best office locations in the city, near Manufaktura and Piotrkowska Street (perfect acces to the public transportation and within 10 minutes walk from Fabryczna railway station) Existing constuction permit (April 2016) Total of approx. 26,000 m 2 of leasable office area Underground Parking is provided Planned to be finished end 2017 13
AIRPORTCITY St. Petersburg ü Hotel Crowne Plaza ****, 294 rooms ü Phase I: Jupiter 1 and Jupiter 2 opened 2011 and 2012 / sold 2015-17,000 m 2 office, fully leased to Gazprom ü Phase II: Zeppelin opened mid 2015-15,600 m 2 leasable office area Parking Phase III Offices - 60,000 m 2 leasable office area Phase IV Offices - up to 110,000 m 2 leasable office area 14
Pipeline - AIRPORTCITY St. Petersburg, parking AIRPORTCITY Car Park - 19,500 m 2 total leasable area - 560 car parking spaces - 3 car parking decks (2 heated decks) - 1,600 m 2 archive/storage area - 500 m 2 retail zone - car wash station - car service station - bus parking spaces 15
Targets and Strategy Improve the financial and operational performance of our assets Ø Improve substantially recurring revenues and earnings Ø Generate stable cash flows from existing hotels Ø Increase NOP per available room and NAV per share Take advantage of recovery on transaction markets and further improve the capital structure and efficiency of the Group`s balance sheet Ø Sell 5 % - 8 % of Gross Asset Value p.a. (in 2015: > 25 %) Target development and land bank to 10 % - 15 % of Gross Asset Value (as of 31.12.15 approx. 9 %) Ø Monetize the land bank through selective development or divestment Long-term leverage target of adjusted equity ratio* of 40 % - 50 % (31.12.15: 15 %) Assuming that the real estate assets are recognized at their fair value 16 16
Segment Reporting * EUR (in thousand) 1-3 2016 1-3 2015 +/- HOTELS Revenues 15,308 19,383-21% Net operating profit (NOP) 2,782 3,712-25% Rooms available 2,810 3,394-17% NOP per available room in EUR 8,752 8,954-9% Occupancy Rate in % 55% 53% 2pp RevPAR in EUR 38.4 39.1-2% INVESTMENT PROPERTIES OFFICES Revenues 2,088 559 274% EBITDA Investment Properties 1,518 266 470% Development & Services Revenues 732 660 11% Losses/Gains on property disposals - -1,376 - EBITDA D&S -1,528 492 - Note: * including Joint Ventures on a proportionate basis 17 17
Income Statement EUR (in thousand) 1-3 2016 1-3 2015 +/- Revenues from Hotels 9,353 10,069-7% Revenues from Investment Properties 1,902 371 413% Revenues from Development & Services 602 527 14% Total revenues 11,857 10,966 8% Expenses directly attributable to the revenues - 7,885-8,533-8% Gross income from revenues 3,973 2,433 63% Income from the disposal of properties - - 1,376 - EBITDA 833 1,629-49% Depreciation, amortization and revaluation -1,287-2,158-40% EBIT -455-529 -14% Financial result 172-3,893 - Loss/Profit for the period -463-5,337 - Loss/Profit for the shareholder of the parent -1,045-6,316-83% 18 18
Balance Sheet EUR (in thousand) 31 03 2016 31 03 2015 +/- Non-Current Assets 309,888 422,580-27% Current Assets 34,841 33,499 4% Total Assets 344,729 456,079-24% Total Equity 19,616 54,004-64% Long-term Debt 278,902 314,620-11% Short-term Debt 46,212 87,455-47% Total Equity and Liabilities 344,729 456,079-24% Sources: Financial Statements H1 2015 19
Cash Flow Statement EUR (in thousand) 1-3 2016 1-3 2015 +/- Inflow 13,209 13,683-3% Outflow -10,906-11,669-7% Cash flow from operating activities 2,303 2,014 14% Inflow 5,317 41,671-87% Outflow -1,296-6,294-79% Cash flow from investing activities 4,021 35,377-89% Cash flow from financing activities -6,965-35,291-80% Cash and cash equivalents at the end of period 6,947 12,542-45% 20
21 Appendix
Total liabilities (at equity) have declined by EUR 90.7 mn. in 12 months Total liabilities (incl. liabilities of non-controlling interests, excluding joint ventures) have declined from 377.4 mn. as of December 31, 2014 to 286.7 mn. as of 31.12.2015 377.4 mn. 22.2 mn. 81.4 mn. 5.0 mn. 26.4 mn. 286.7 mn. Total debt as of Dec. 31, 2014 Decline of project financing Decline of bank overdrafts Increase of bonds / convertible bonds Decline of other debt/ liabilities Total debt as of Dec. 31, 2015 Source: Company Financial Report as of Dec. 2015, note 7.11.4 22
Appraisers Valuation of Warimpex Assets as of 31 Dec. 2015 Gross Asset Value vs. Book Value (EUR mn.)*- Gross Asset Value Structure (EUR mn.) hidden reserves 400 350 300 250 200 150 100 340,8 265,6 47,0 28,2 350 340 330 320 310 300 340,8 305,3 35.5mn (EUR 0.7 / share) Hidden reserves 50 290 0 Gross Asset Value Existing hotel assets Existing office building assets Projects under development 280 Gross Asset Value Book Value Total GAV: EUR 340.8 mn. Book Value: EUR 305.3 mn. REVALUATION POLICY: The company does not revalue its HOTEL properties each financial year All gains from the appreciation in value of a property are recognized at the time the property is sold 23
Experienced Management Team Warimpex s principal shareholders, Franz Jurkowitsch (Chairman) and Georg Folian (Deputy Chairman), have each more than 25 years of experience in developing, operating and owning real estate assets in CEE Strong team of senior country managers in place with significant local experience The management team has a proven track record in the region in developing or acquiring and redeveloping numerous real estate projects Management Board of Warimpex Alexander Jurkowitsch Franz Jurkowitsch Georg Folian Florian Petrowsky Member Chairman Deputy Chairman Member 24
Over 30 Years Experience in Real Estate Asset Management HOTELS Number of rooms In Portfolio from Sale Palace Hotel Prague 5-star, 124 rooms Purchased 2001 2013 angelo Hotel Munich 4-star, 146 rooms Opened 2008 2013 Intercont Warsaw 5-star, 414 rooms Opened 2003 2012 Sobieski Hotel Warsaw 4-star, 435 rooms Purchased 2006 2011 andel s Krakow 4-star, 159 rooms Opened 2007 2009 andel s Hotel & Suites Prague 4-star, 239 rooms + 51 studios Opened 2002 2005 Sheraton Hotel Warsaw 5-star, 350 rooms Opened 1996 1996 Pruhonice Sport Hotel, Prague 4-star, 100 rooms Opened 1990 1990 Holiday Inn, Warsaw 4-star, 172 rooms Developed 1989 Forum Hotel, Prague 4-star, 560 rooms Developed 1989 Jelina Gora Hotel 4-star, 172 rooms Developed 1989 Panorama Hotel, Prague 4-star, 456 rooms Developed 1983 Novotel Hotel, Budapest 4-star, 324 rooms Developed 1982 Penta Hotel, Budapest 4-star, 400 rooms Developed 1982 OFFICES Area (sqm) In Portfolio from Sale Jupiter Towers 1+2, St. Petersburg 17,000 sqm Opened in 2011/2012 2015 Csalogany office, Budapest 2,600 sqm Purchased 2003 2009 Pauler office, Budapest 3,000 sqm Purchased 2006 2008 andel s City SO 11, Prague 4,000 sqm Opened 2007 2007 Warsaw Towers, Warsaw 20,000 sqm Opened 1999 2000 25
Warimpex on the Stock Exchange Shareholder structure Free Float 35% Franz Jurkowitsch 14% Georg Folian 15% Key Exchange Data Number of shares 54,000,000 Vienna Stock Exchange ATX Prime, Immobilien-ATX Warsaw Stock Exchange Market Main 50 Plus, WIG SWIG80 MetLife PTE > 5% Aviva OFE > 5% ING OFE 4% Amber Privatstiftung 11% Bocca Privatstiftung 11% Ticker symbols Equity Ratio (31.12.2015) Stock Exchanges WXF Reuters WXFB.VI 6% (15% adjusted)* *) assuming fair value of real estate assets according to latest external valuations 26
NNNAV per share Comparison of NNNAV per share and the Company s share price on the VSE EUR 12 11 10 9 8 7 6 5 4 3 2 1 0 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 share price NNNAV/share Source: Company Annual Reports 27
Company History Impressive History 1980 Warimpex enters real estate market 1982-1988 Novotel, first Warimpex hotel opened in Hungary Penta Hotel Budapest, Forum Hotel Prague 1988-1989 1994-1996 Holiday Inn, Warsaw Hotel Palace, Prague Hotel Savoy, Prague Hotel Sheraton, Warsaw 1999 Warsaw Towers (20,000sqm office building) 2001-2003 Shopping and Entertainment Gallery, Brno Hotel Andel s, Prague Hotel Le Palais, Prague Hotel InterContinental, Warsaw 2009-2014 Hotel Andel s, Lodz Hotel Angelo, Kattowice Hotel Andel`s, Berlin Hotel Angelo, Bucharest Hotel Angelo, Ekaterinburg Hotel Crowne Plaza, AirportCity St. Petersburg Le Palais office, Warsaw Jupiter towers, AirportCity St. Petersburg Palais Hansen Kempinski Vienna 2004-2006 2007-2008 Andel s Suites, long stay apartments, Prague Leaders Club guests recognition Award for Le Palais Hotel Angelo, Prague Hotel Chopin, Krakow Hotel Sobieski, Warsaw IPO in Vienna and Warsaw Hotel Andels s, Krakow Hotel Liner, Ekaterinburg Hotel Angelo, Munich Hotel Angelo Pilsen 2015-2016 Zeppelin tower, St. Petersburg Erzsebet office, Budapest 28 28
Corporate calendar 30 May 2016 Publication of the results for the first quarter of 2016 8 June 2016 Annual General Meeting 30 Aug 2016 Publication of the results for the first half of 2016 30 Nov 2016 Publication of the results for the third quarter 2016 Contact details Franz Jurkowitsch Daniel Folian Christoph Salzer CEO Investor Relations Press Relations Tel.: +43 1 310 55 00 125 Tel.: +43 1 310 55 00 156 Tel.: +43 1 310 55 00 143 franz.jurkowitsch@warimpex.com daniel.folian@warimpex.com presse@warimpex.com 29