CAPELLI: CAPELLI, OBJECTIVE 2022-2023: REVENUE OF MORE THAN EUR 350 M – 2022/06/28 at 6:00 pm

240 M€ OF PROPERTY ACQUIRED OVER THE LAST 12 MONTHS, PARTICULARLY IN MAJOR DEVELOPMENT AND URBAN RENOVATION PROJECTS REPRESENTING 665 M€ OF REVENUE

EBITDA AT €28M: MAINTAINING FINANCIAL EXPENSES AND LOWER OPERATING EXPENSES

ACTIVE CASH POSITION €116M, GEARING CORPORATE MAINTAINED AT 0.7x

The CAPELLI Group, a European real estate developer listed on Growth Euronext Paris, today announces its results for the 2021-2022 financial year (1

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April – March 31) and its outlook for 2022-2023.

Points to remember

:

– A 2020-2022 growth trajectory disrupted by the Covid crisis (administrative delays, delays, elections, appeals, etc.) but supported by international activity with turnover rising to €290.3 million.

– Numerous programs in progress, for which the land has already been acquired, secure the turnover for 2022-2023 with the objective of achieving €350 million over the financial year.

– Agility to adapt to a complex environment. Over the last 24 months, Capelli has carried out a profound change in its model with strategic choices that have leverage effects on margins and on the structure of the balance sheet:

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Continued development of bulk sales

in France, Switzerland and Luxembourg in order to reduce the marketing period and to overcome the difficulties of buyers in accessing financing.

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Positioning on programs in line with a global urban planning and sustainable development project

. Several major property renovation and/or brownfield development programs illustrate this commitment, such as “Le Domaine d’Hestïa” in Saint-André-Lez-Lille (rehabilitation of a former hospital covering 7 hectares in 40 000 m2 of housing, the first of which will be delivered in the second half of 2022) or “South Village” in Luxembourg (revaluation of a former shopping center in 20,000 m

²

housing, shops, etc.).

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Taking into account new needs with residences mixing uses

. Large-scale Capelli programs integrate shared green and common spaces and a range of services.

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Change of scale with an increasingly strong presence on large-scale programs (> 50 M€)

generating a strong optimization of costs (marketing, site, financial costs) and deadlines.

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Diversification of financing methods with a leverage effect on profitability.

Depending on the size of the project, CAPELLI uses bond financing, including green bonds, and actively develops co-financing with financial investors, etc. This last mode of project financing has the advantage: i/ of very limiting largely the investment in own funds and gives the possibility of repositioning itself quickly on new projects; ii/ to obtain a significant leverage effect on financial profitability (coeff of 7x).

– The growth indicators are very well oriented:

o Over a rolling year, CAPELLI acquired nearly €240 million in land (excluding costs and pre-expenses) for programs that will generate revenue in current and future years.

o The Backlog stands at €605 million, including €124 million internationally.

o The level of marketing of the programs represented more than 92% of the lots reserved or recorded as of May 31, 2022.

2021-2022 annual results: good operating performance

In an environment marked by rising construction costs and procurement lead times, Capelli managed to maintain a gross margin of more than 21% and a very good operating performance thanks to the strategic choices adopted (blocks, large-scale operations) which have reduced structural loads. Ebitda at €27.8m (9.6% of sales) and Ebit at €23.1m (8% of sales) are maintained at the Group’s standard level.

The financial result, in a context of strong investments (purchase of land for nearly €240 million in 12 months) was maintained at the level of last year, showing an average debt equivalent to that of n-1.

The Group’s corporate gearing stood at 0.73x (vs.0.66x in n-1) proving the control of corporate debt. The significant land investments on large-scale operations, carried out over the financial year, mechanically lead to an increase in debt largely secured by the rate of letting of ongoing operations (92%). Consolidated gearing (corporate + operations) comes out at 3.69x (vs. 2.32x in n-1) and includes the major purchases of the year and in particular “La Scène des Loges” for 0.77x.

Shareholders’ equity stood at a high level of €72 million (€74 million in n-1). Active cash stood at a historic high of €116m (vs. €115m in n-1). Over the past 12 months, Capelli has repaid €115 million in bonds, giving more maturity to its bond debt.

The decision to put in place a new financial structure for large-scale operations (opening of capital from below) will ultimately have a positive leverage effect on the Group’s financial performance.

The CAPELLI Group Board of Directors, meeting on June 27, 2022, approved the financial statements for the year ended March 31, 2022. The audit procedures on the consolidated financial statements have been carried out. The Statutory Auditors’ certification report will be issued when the financial report is published.

2022-2023: an objective of achieving a turnover of more than €350 million

On the strength of the land purchases already made, the ongoing pipeline and the finalization of several programs which have been postponed to this financial year due to appeals or administrative delays extended by the context (covid, elections), CAPELLI anticipates a 2022- 2023 very dynamic with the resumption of sustained growth. Annual revenue should be more than €350 million, most of which will be generated in the second half.

This objective supported by the 3 pillars of balance of the Group (diversified clientele, diversified offer around the residential and international presence) is supported by:

– A backlog of €605 million, still at a good level in France but also internationally and particularly in Luxembourg, which has the advantage of being more secure in terms of deadlines and where prices are indexed to inflation.

– To date, large-scale projects (CPAM in Bordeaux, Scène des Loges in Paris, South Village in Luxembourg, etc.) have all been funded. They represent a turnover including VAT of more than €400 million to be achieved in the coming months.

– Bulk sales should represent approximately 70% of sales in France over the financial year.

Christophe Capelli, Chairman and CEO, concludes:

“Since March 2020, we have been able to demonstrate responsiveness and agility to face many challenges related to the Covid context but also post-Covid which has led to many disruptions. The current financial year will reveal the Group’s ambitions in the short and medium term with the realization of many real estate projects and the implementation of a strategy which now favors a rapid rotation of programs and the increase in margins with cost optimization. marketing on major projects; but also the increased use of financing with partner institutional investors. The quality of our programs, their visibility, our environmental commitment are real assets to be supported over the long term by quality partners. In a sector in transformation with new needs and uses that are emerging, we have a place to take to be among the main players in the market. »

The 2021-2022 results will be presented at a meeting to be held on June 29, 2022 at 10 a.m. at the Scène des Loges – 59 quai de Grenelle – 75015 Paris (register with [email protected]).

About the CAPELLI Group

With more than 40 years of experience in the design of living spaces, the Group has focused for more than 10 years on the real estate development of housing. Active through 7 locations in Europe (Paris, Lyon, Lille, Bordeaux, Marseille, Luxembourg and Geneva), the Group addresses 4 types of clients: owner-occupiers, individual investors, institutional investors and social landlords. In addition to its housing offer (collective, residential tower, duplex villa, rehabilitation), the Group develops turnkey products such as managed residences (students, seniors, hotels, business, etc.). Its sustained historical organic growth is based on the quality of its 180 employees internalizing a great deal of know-how with land developers, design offices and internal sales forces.

The Group is managed and 73.74% owned by the Capelli family

Listed on Euronext Growth Paris – Isin code: FR0012969095 – ALCAP

Bloomberg CAPLI FP – Reuters

CAPLI FP – Reuters

Next release:

Turnover of 1

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quarter 2022-2023, July 27, 2022 after market

Lexicon :

Backlog: The backlog corresponds to the sum of reservations in the Group’s portfolio and lots sold (past notarial deed) over the current financial year, multiplied by their selling price excluding VAT. The backlog represents the potential turnover for the current financial year and the following ones. Indeed, given the sales process, a reservation can be transformed at a deadline ranging from 3 to 18 months.

Gearing Corporate: Consolidated corporate net debt to consolidated equity adjusted for IAS 23.

Gearing Operations: Net debt related to consolidated operations on consolidated equity adjusted for IAS 23.

contacts

CAPELLI Group

Christophe Capelli – Chairman and CEO

Rodolphe Peiron – Deputy Managing Director

Julien Buronfosse – Strategy and Financing Director

Tel: + 33 (0)4 78 47 49 29 – https://capelli-immobilier.fr

Communications Building

Investor Relations: + 33 (0) 6 31 35 99 50 – [email protected]

Press Relations: +33 (0)6 88 48 48 02 – [email protected]

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