Grupo Insur

Corporate Presentation

August2020

  • Legal disclaimer

This presentation is the exclusive property of INMOBILIARIA DEL SUR (INSUR). Its total or partial reproduction is strictly prohibited and it is covered by current law. Offenders will legally prosecuted both in Spain and abroad. The use, copy, reproduction or sale of this publication may only be undertaken with the explicit authorization in writing by INSUR.

This document is purely informative and does not constitute an acquisition, exchange or sales offer, nor an invitation to form a purchase offer on securities issued by the Company. The information contained in this document includes declarations on future intentions, prospects or forecasts. All declarations, except those based on past data, are future declarations, including those regarding our financial position, business strategy, management plans and objectives for future operations. These intentions, prospects or forecasts are subject, as such, to risks and uncertainties, which may determine that what actually occurs does not correspond to them. These risks include the evolution and competition of the real estate sector, preferences and expenditure trends of consumers and their access to credit, economic, financing and legal conditions, plus others. The risks and uncertainties that could possibly affect information provided, are difficult to predict. The information included in this document has not been checked or revised by INSUR auditors. The Company assumes no obligation to revise or publicly update these declarations, in the event of changes or unforeseen events, that may affect them. The Company provides information on them and other factors that may affect future declarations, the business and financial results of INSUR Group, in the documents presented before the Spanish National Stock Exchange Commission. Anyone interested is invited to consult these documents.

2

  • Rationale behind the use of the proportionate method

Grupo INSUR (Insur) , whose parent company is Inmobiliaria del Sur, S.A., develops two main activities, housing development and rental.

The rental activity is carried out by Insur Patrimonial, S.L.U. (IPAT), fully owned by Insur, as well as by other companies which are also fully owned by IPA.

The housing development activity is conducted through a company fully owned by Insur, Insur Promoción Integral, S.L.U., (IPI), which in turn holds shares in different companies. In order to increase the activity and also to diversify the risks, a significant part of this business is carried out through joint ventures in companies where Grupo Insur has a significant stake (usually 50%). With a view of increasing the quality of the houses, obtaining better customization options and a stricter control on the works, the Group develops the construction activity both for its fully owned developments and for the JV´s. This instrumental activity is carried out by IDS Construcción y Desarrollos, S.A.U, which is fully owned by IPI.

As the Group does not have the control over the JVs, in the sense that it cannot decide unilaterally the financial and activity policies, but it shares these decisions with the rest of the partners, these JVs are consolidated by the equity method as stablished in the IFRS 11. Accordingly, the consolidated financial statements do not include the proportional part of the Group in the assets, liabilities, incomes and expenditures of such JVs. The Group is fully involved in the management of these JVs which consolidate by the equity method, not just because it holds at least the 50% of the equity, but because it carries the operating management based on the management, construction and marketing contracts undersigned, as these JVs lack from human and material resources.

For all that, the Board considers that the faithful image of the financial and patrimonial situation, the results and especially the real dimension of its activities and the dimensioning of the financial and human resources are better reflected by consolidating these companies through the proportionate method.

At the end of this presentation can be found a conciliation between the financial statements consolidated by both methods.

3

1. Who are we?

4

Who are we?

  • 1945 Foundation; share capital 10 Million Pesetas
  • 1946 Acquisition of land plots at Av. República Argentina in Seville
  • 1947 50 Million Pesetas capital increase and entry of new partners
  • 1947-1982Development of the Housebuilding branch by investing all the reserves in commercial premises and offices to rent
  • 1982 Boost of the rental branch by the development of a big building designed for rental (Buenos Aires)
  • 1984 IPO by listing formula
  • 1997 Geographic diversification by the acquisition of a fully permitted land plot in Marbella
  • 2007 Beginning of activities in Madrid
  • 2008-2013Crisis management, maintaining housebuilding, reducing debt and transforming the financial structure converting the 90% of financial debt into long term debt
  • 2013- Present
    • Relaunching of housebuilding
    • Beginning of rental activity in Madrid
    • Corporate reorganization with two holding companies, one per main activity, 100% owned by the parent company
    • Financial sources diversification through MARF program
    • Improvement of the company knowledge to enhance liquidity. Analyst coverage
    • Corporate government boost. CSR

5

Business model

Virtuous business model

Combination of housebuilding and rental

Rental HousebuildingUNIQUE BUSINESS MODEL… …SUSTAINABLE ON THE LONG TERM

Sustainable debt

Shareholding stability and alignment management and ownership → long term strategy

Reasonable balance between both business lines

Reasonable debt:

Finance structure with an adequate level of external financing

Maximum LTV level of 40%

Finance structure with enough equity to finance the land in housebuilding and 60% of the rental assets

Risk mitigation strategy at housebuilding

Land considered as a commodity in the productive cycle

Fully permitted land, without political risk

Being proactive buying land in the low phases of the cycle

6

Rental

Distribution by GAV

5.9% 2.2% 0.1% 0.7%

18.5%

72.6%

Sevilla Madrid Huelva Córdoba Málaga Jerez

Distribution according to typology

8%

23%

70%

Offices

Commercial Premises

Other

Portfolio of 134,213 sqm of offices and commercial premises and more than 2,500 parking spaces

Significant buildings

Edificio Insur (Sevilla)

Edificio Buenos Aires

Edificio Insur Cartuja

Edificio Centris II

17,824 sqm

(Sevilla)

(Sevilla)

(Tomares)

33,946 sqm

8,126 sqm

16,410 sqm

Edificio Insur Huelva

C.C. El Mirador

Ed. Norte Río 55

(Huelva)

(Sevilla)

(Madrid)

8,880 sqm

7,761 sqm

13,671 sqm

7

Rental: prime area locations

Ed. García Lovera (Córdoba)

Aldi Joaquín Turina (Madrid)

Ed. Insur Huelva

Ed. IDS Huelva (Huelva)

Madrid 19%

Córdoba 2%

Sevilla 73%

Huelva 6% Málaga 0.1% Jerez 0,7%

Ed. Centris II (Sevilla)

Ed. Insur (Sevilla)

C.C. El Mirador (Sevilla)

Capitán Haya 24-25 (Madrid)

Ed. Insur Cartuja (Sevilla)

Ed. Capitolio (Sevilla)

Ed. Buenos Aires (Sevilla)

Geographic distribution according to

GAV

Ed. Suecia (Sevilla)

Ed. Norte Río 55 (Madrid)

Ed. IDS Andalucía (Sevilla)

8

Centro de Empresas República 21 (Sevilla)

Rentals

  • In the 1H 20 the surface sold amounts to 2,004.82 sqm.
  • Occupancy rate rises to 88.87% . 55.5% of the unoccupied surface is under reform
  • The annualized rental income of the contracts in force at 30th June 2020 (including incomes derived from the parking activity, the contract of the hotel at Av. Rep Argentina 23 in Seville and the 90% of the rental of the North Building at Rio 55 in Madrid) amounts to 17.4 M€
  • The License of First Occupation for Río 55 at Madrid was obtained on July 15th
  • The acquisition of the additional 40% of the stake in IDS Madrid Manzanares S.A. (owner of the Río 55 North Building) will take place in the following weeks

Revenues

M€

-4.6%

11.8

12.1

13.6

10.5

10.4

6.7

6.4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

1 H 1 9

1 H 2 0

Square meters sold

GAV* of the assets aimed both at rental and own

use amounts to 303.7 M€

(valuation at 30/06/20 estimated from CBRE valuation at

31/12/19 and revised with additions at cost value andSQM disposals due to deliveries)

134,213 sqm office and commercial

14,100

14,107

16,380

11,763

premises portfolio and more than 2,500

10,590

parking spots

2,005

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

1 H 2 0

* Does not include GAV of the North Building at Río 55

9

Homebuilding

  • Higher margins than those on the rental activity
  • Operating in areas where we have extensive knowledge and expertise as it is a sector with local characteristics. Western Andalusia (mainly Seville), Malaga, Costa del Sol and Madrid
  • Mid-highend segment housing mainly in areas with proven demand
  • Investment in the bottom part of the cycle (better prices) to be able to provide units in the top of it
  • Maintenance of housing volumes matched to property activity
  • Acting alone or in JVs, leading the entire development process, as an industrial partner through comprehensive management contracts, marketing and construction, assuming all the inherent functions of the activity

Grupo Insur is vertically integrated so that it can capture all the added value of the

process since the land classification of the development phase

Land

Urban

Plot

Design

Construction

Marketing

Classification

Development

Sale

Flexibility

Quality control

10

Cost optimization

Housebuilding

  • Proportional method
  • Owned developments and total JVs

Revenues*

M€

76.6

65.0

43.1

39.9

46.0

27.9

18.5

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

1 H 1 9

1 H 2 0

  • Excellent sales performance in the 1H20; despite the two months lockout, the sales figure in the 1H20 is very similar to the one of 1H19
  • The Group currently has 1.764 houses under development of which 560 are under construction, 210 are completed and 487 already sold
  • Presales amount to 198.1 M€ (121.1 M€ adjusted by the % of participation), of which 57.2 M€ correspond to finished developments (39.7 M€ adjusted by the % of participation)
  • 12.3 M€ have been delivered in July. 6.9 M€ correspond to own developments and 5.3 M€ to developments through JV adjusted by the % of participation of Grupo Insur

Presales breakdown

100% owned and total JVs

100% Owned and JVs in their

-8.5%

participation %

Presales**

216.6

-6.3%

197.5

196.9

198.1

198.1

M€

135.4

129.2

121.1

155.8

153.9

156.9

174.9

156.9

76.2

80.2

69.9

87.5

79.9

16.4

23.5

53.5

52.7

55.2

41.7

43.0

41.2

41.7

41.2

41.7

41.2

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

1 H 2 0

1H 19

1H 20

1H 19

1H 20

100% owned

JV

100% owned

JV

11

Ongoing developments and land portfolio

Ongoing Developments

Land Portfolio

1,764 ongoing units

2,486 units

▪ 210 housing units completed of which 143 are pending to be

▪ 87,706 sqm of buildable plots for residential

delivered and 67 pending to be sold.

use, 816 units

▪ 27 ongoing developments (12 in West Andalucía, 7 in Costa del

▪ 30,000 sqm of buildable plots for hotel use.

Sol, 5 in Madrid, 1 in Cáceres and 2 in Granada) totaling 1,554

▪ 8,238 sqm of buildable plots for tertiary use.

units:

▪ Long-term purchase options on 10 plots with a

▪ 152

housing units underway directly by

Insur

with a

building potential of 191,140 sqm (1,670

development potential of 19,646 sqm.

housing units).

▪ 1,402 housing units underway through JVs (with Insur holding a

50% share), with a development potential of 190,045 sqm.

Ongoing

Land

▪ Development of Río 55 Business Park in Madrid covering 28,000

developments

portfolio

sqm

above ground level (2 office buildings

each

covering

TOTAL OF

approximately 14,000 sqm). The north building has been made

4,250 UNITS

available to the tenant and the south building is pending to be

delivered.

12

Finished developments

Figures as of June 2020

100% owned developments

Development

Location

Units

Sold units

Altos Castilleja VII

Castilleja de la Cuesta (Sevilla)

1

Antonio Mairena

Sevilla

4

1

Conde de Zamora

Córdoba

20

3

Plaza del Teatro

Málaga

44

41

Altos del Retiro

Churriana (Málaga)

22

12

91

57 (63%)

JV developments

Development

Location

Units

Sold units

Pineda Parque I

Sevilla

13

2

Alminar

Marbella (Málaga)

14

1

Selecta Atenas

Dos Hermanas (Sevilla)

4

4

Selecta Olimpia

Dos Hermanas (Sevilla)

5

5

Selecta Costa Conil

Conil de la Frontera (Cádiz)

35

34

Boadilla Garden

Boadilla del Monte (Madrid)

10

5

Santa Ana III

Dos Hermanas (Sevilla)

6

4

87

55 (63%)

13

TOTAL

178

112 (63%)

Finished developments pending start of delivery#

* Under comercialization

Figures as of June 2020

JV developments

Development

Location

Units

Sales Volume

Estimated

Sold

(M€)

delivery

units

Boadilla Essences I*

Boadilla del Monte (Madrid)

32

19.1

2020

31

32

19.1

31 (97%)

14

#Does not include the South Building of Río 55, whose First Occupation License was obtained the 15th of July 2020

Developments under construction

Figures as of June 2020

* Under comercialization

100% owned developments

Development

Location

Units

Sales Volume

Estimated

Sold

(M€)

delivery

units

Residencial 75 Aniversario

Sevilla

48

33.6

2020

28

48

33.6

28 (58.%)

JV developments

Development

Location

Units

Sales Volume

Estimated

Sold

(M€)

delivery

units

Elements I*

Marbella (Málaga)

52

18.2

2020/2021

25

Selecta Hermes*

Dos Hermanas (Sevilla)

116

22.9

2020/2021

86

Selecta Salobreña I*

Granada

55

9.8

2021

22

Pineda Parque II*

Sevilla

80

26.8

2021/2022

23

Selecta Ares*

Dos Hermanas (Sevilla)

76

17.8

2021

53

Mirador del Olivar*

Valdemoro (Madrid)

53

13.7

2021

24

Selecta Extremadura Cáceres*

Cáceres

80

19.4

2021/2022

48

512

128.6

281 (55%)

TOTAL

560

162.2

309 (55%)

15

Projects under development

Figures as of June 2020

* Under comercialization

100% owned developments

Development

Location

Units

Estimated construction start date#

Sold units

Santa Aurelia

Sevilla

104

2020

5

104

5 (5%)

JV developments

Development

Location

Units

Estimated construction start date#

Sold units

Terrazas de Santa Rosa I*

Córdoba

92

2020

11

Selecta Apolo*

Dos Hermanas (Sevilla)

106

2020

5

*Selecta Mykonos $

Dos Hermanas (Sevilla)

24

2020

7

Monte de la Villa Unique

Villaviciosa de Odón (Madrid)

36

2020

Monte de la Villa Unique II

Villaviciosa de Odón (Madrid)

22

2020

1

Elements II*

Marbella (Málaga)

66

2021

4

QuintEssence I*

Marbella (Málaga)

24

2021

2

Selecta Salobreña II*

Granada

55

2021

Boadilla Essences II

Boadilla del Monte (Madrid)

16

2021

BA-2

Dos Hermanas (Sevilla)

108

2021

Monte de la Villa Exclusive

Villaviciosa de Odón (Madrid)

32

2021

QuintEssence II

Marbella (Málaga)

32

2021

QuintEssence III

Marbella (Málaga)

24

2021

QuintEssence IV

Marbella (Málaga)

24

2021

Terrazas de Santa Rosa II

Córdoba

95

2021

Calle Juglar

Sevilla

56

2021

Selecta Avda. Jerez

Sevilla

44

2021

Elements Fase III

Marbella (Málaga)

34

2022

890

30 (4%)

TOTAL

994

35 (4%)

# Start decision pending of the Covid 19 evolution

$ Land plot optioned on July 2020

16

Construction and Project Management

7.7 M€ CONSTRUCTION REVENUES

1.3 M€ MANAGEMENT REVENUES

-60.5% DECREASE

-44.1% DECREASE

Main projects currently managed:

IDS MADRID MANZANARES, S.A.

▪

Río 55 Madrid Business Park 28,000 sqm divided

First Occupation Certificate. SOUTH BUILDING

between 2 buildings)

SOLD. NORTH BUILDING LEASED

EWC: (73 units):

▪ Selecta Conil: 73 units (38 already delivered)

▪

Selecta Entrenúcleos (Sevilla), 2.100 units

DESARROLLOS METROPOLITANOS DEL SUR,

▪

Selecta Conil (Conil de la Frontera), 73 units

UNDER CONSTRUCTION (327 units):

▪

Selecta Salobreña (Granada), 110 units

▪ Selecta Hermes: 116 units

S.L.

▪

Selecta Cáceres (Cáceres), 80 units

▪ Selecta Ares: 76 units

▪

Selecta Avenida Jerez (Sevilla): 44 units

▪ Selecta Cáceres: 80 units

▪ Selecta Salobreña I: 55 units

IDS RESIDENCIAL LOS MONTEROS, S.A.

▪

Los Monteros (Marbella): 276 units

UNDER CONSTRUCTION (52 units) :

▪ Elements I: 52 units

IDS PALMERA RESIDENCIAL, S.A.

▪

Pineda Parque (Sevilla): 80 units

UNDER CONSTRUCTION (80 units) :

▪ Phase II: Block 4 and 5: 80 units

IDS BOADILLA GARDEN RESIDENCIAL, S.A.

▪

Boadilla Essences (Boadilla del Monte, Madrid), 48

FOC (32 units):

units

▪ Boadilla Essences I: 32 units

IDS MEDINA AZAHARA RESIDENCIAL, S.A.

▪

Terrazas de Santa Rosa (Córdoba), 187 units

UNDER DEVELOPMENT

IDS MONTEVILLA RESIDENCIAL, S.A.

▪

Monte de la Villa (Villaviciosa de Odón, Madrid), 58

UNDER DEVELOPMENT

units

HACIENDA LA CARTUJA, S.L.

▪

Monte de la Villa (Villaviciosa de Odón, Madrid), 32 units

UNDER CONSTRUCTION (53 UNITS)

▪

Mirador del Olivar (Valdemoro), 53 units

▪ Mirador del Olivar: 53 units

FOC: First Occupation Certificate

17

EWC: End of works Certificate

2. Covid-19 measures

18

Measures taken after COVID-19

1Human Resources

Plan to protect employees and partners

Evaluating alternatives in order to adapt the structure and costs to the new environment

Telework implementation

2FinanceSpecial cash protection plan. Maximum stress

scenarios

Converting MARF floating funding into banking financing. Long term capital markets strategy

Proposal of deferral of the 2019 result distribution (supplementary dividend)

3RealAll the Estateworks keepDevelopmentgoing

New developments rescheduling

Reevaluating land investment plans

Flexible and customized formulas for our clients

4RentalCAPEX reprogramming of the rental activity

Reevaluation of the investment plans for new assets

Flexible rent payment formulas for our affected clients

5CorporateRedrafting of the 2020 budget and 2021 and 2022 estimations Modelling scenarios and applicable measures

Analyzing post Covid-19 opportunities

19

3. Financial Results

20

Executive Summary. 1H 2020 Highlights

Figures by proportionate method

REVENUES

43.3 M€ -7.7%

EBITDA

7.8 M€ -1.2%

HOMEBUILDING

RENTALS

CONSTRUCTION

ASSET

MANAGEMENT

OPERATING PROFIT

6.1 M€ -5.0%

NET PROFIT

2.5 M€ -5.2%

27.9 M€ +51.4%

6.4 M€ -4.6%

7.7 M€ -60.5%

1.3 M€ -44.1%

  • EBITDA and Net Profit will increase at the end of the year due to the concentration of deliveries within the last semester
  • Housebuilding: good performance after the end of the lockouts thanks to the recovery of sales and deliveries
  • From the Presales figure at June 30th, 12.3 M€ have already been delivered during July
  • Rental income are affected mainly by the lack of rents of the República Argentina 23 Building in Seville (being converted into a hotel)
  • Construction and management are temporarily affected by the delay in the start of the developments through JVs
  • The Group has implemented measures in order to ease the impact of Covid-19since the beginning
  • During the AGM held on the 3rd of April, it was decided to postpone the decision regarding the result distribution, for prudential reasons, to another General Meeting to be held before the 31st of October

NET FINANCIAL DEBT

213.7 M€

+8.8% vs Dec 19

M€ = Million €

21

Executive Summary. 1H 20 Results

M€

All figures by proportionate method

-7.7%

46.9

+51.4%

43.3

-60.5%

27.9

-4.6%

-44.1%

1H 19

18.5

19.4

7.7

1H 20

6.7

6.4

2.4

1.3

R e v e n u e s

H o u s e b u i l d i n g

R e n t a l s

C o n s t r u c t i o n

A s s e t

M a n a g e m e n t

M€

-1.2%

-5.0%

7.9

7.8

-5.7%

6.5

6.1

-5.2%

1H 19

3.6

3.4

1H 20

2.7

2.5

E B I T D A

O p e r a t i n g P r o f i t

P B T

N e t P r o f i t

REVENUE BREAKDOWN

Housebuilding

Rentals

Construction

Asset Management

3%

18%

64%

15%

PRESALES

OCCUPANCY RATE

100% Owned and JVs in their participation %

M€

129.2

121.1

89.6%

88.9%

1H 19

1H 20

4Q 19

1H 20

-6.3%

-0.7p.p.

22

NAV, GAV, LTV & debt

INSUR GAV *

25%

402.5 M€

75%

Real Estate development

Rental

INSUR GAV**

45%

547.5 M€

55%

Real Estate development

Rental

INSUR NAV**

LTV evolution %

38.9

36.2

36.5

38.6

39.0

327.5*M€

341.2

1Q

2019

330.9

333.8

325.7

310.8

2017

2018

2019

1T 20

1H 20

Net financial debt evolution

1H 2018 FY 2018 FY 2019

1Q 2019 1H 2020

M€

196.4

208.1

213.7

195.3

184.8

  • valuation at 30/06/20 estimated from CBRE valuation at 31/12/19 and revised with additions at cost value and disposals due to deliveries
    • Proportionate method

2017

2018

2019

1T 20

1H 20

23

4. Share Price evolution

24

Share evolution

Share Price 1H 2020

In 1H 2020 the share Price (ISUR) dropped by 33%. In that same period, the Ibex 35 decreased by 25.4% and the Ibex Small Caps decreased by 13.8%. However, in the 2Q 20 the share price recovered by 3.54%. The share closed at 7.04 € which implies a market cap of 119.5 M€ at the 30th June 2020

Market Cap June 2020

NAV June 2020

Discount vs NAV

25

119.5 M€

333.8 M€

64%

5. Strategy

26

Strategy

Homebuilding

  1. Investment primarily in fully-permittedLand
  2. Operating in markets where we have extensive knowledge
  3. Project development in areas with proven demand (first residence in provincial capitals and metropolitan areas)
  4. Vertical Integration
  5. Debt matched against the rental activity
  6. Risk diversification by sharing projects with partner financial investors

Construction and Management

  1. Additional income generation by managing and building real estate projects developed through JVs
  2. Provision of these services also to financial entities
    (Example: Delegate promotion)

Rental

  1. Development of our assets from the ground up
  2. New investments located in Madrid

Financial Structure

  1. Maintenance of a reduced debt level (LTV<40%)
  2. Diversification of financial sources

27

6. Annex

28

Corporate structure

Housebuilding

Rental

Construction

JV

29

Corporate Governance

Board of Directors with a strong commitment to the highest standards of corporate governance

  1. The Board of Directors represents a 36.1% stake in the capital of Insur. Much of this participation is in the hands of the Pumar Family, which pledges a significant part of its heritage.
  2. Involvement of the Board of Directors in the investment and disinvestment decision-making.
  3. Follow-upregarding the development of the business is to the highest ethical standards.
  4. Highest standards of corporate governance.
  5. Shareholder and institutional stability allow a business strategy with a long-term vocation.

Composición Accionarial

(31/12/19)

36.11%

*This figure includes the shares owned by the Board, as well as those owned by significant shareholders and not significant shareholders that nominate the appointment of dominical directors. Without having into account these shares, the free float will amount to 48.9%

63.1%*

0.78%

Board

Treasury stock

Free Float

30

Board of Directors

Proprietary Directors

Prudencio Hoyos-Limón Pumar

Augusto Sequeiros Pumar

Candelas Arranz Pumar

Andrés Fernández Romero

José Manuel Pumar López

Salvador Granell Balén

Inversiones Agrícolas, Industriales y Comerciales, S.L. (Fernando Pumar López)

Increcisa, S.L. (Ignacio Ybarra Osborne)

Inverfasur, S.L. (Antonio Román Lozano) Bon Natura, S.A. (Luis Alarcón de Francisco)

Chairman

Ricardo Pumar López

(Executive)

Independent Directors

Brita Hektoen Wergeland

Jorge Segura Rodríguez

José Luis Galán González

Vicepresident

Menezpla, S.L.

(Esteban Jiménez Planas)

(Proprietary)

Audit Committee

Strategy and Investment

Appointments and

Committee

Remuneration Committee

31

Río 55 Madrid Business Park

2 buildings. 28,000 sqm offices

400 parking spaces, of which 40 have recharge points installed and 80, preinstalled 1,900 sqm floors which allow great versatility

Excellent location, within M 30, and surrounded by services and good connections

More tan 8,600 sqm of Green areas, of which 5,000 are privative

Breeam Very Good certificate awarded to the South building. In the process of obtaining it for the North Building

Funding of the Project signed in June 2018 of more tan 45 Million € with Unicaja and Banco Sabadell

The South Building was turn-key sold in March 2018 to a fund managed by AEW

License of first occupation obtained on July 2020. The north building has been made available to the tenant and the south building is pending to be delivered.

IDS Madrid Manzanares, S.L., has entered into a lease agreement of the North Building at Río 55 with BNP Paribas. Moreover, Grupo Insur has signed a contract to acquire an additional 40% of the shares of this company, reaching a 90% ownership

32

Management Team

Ricardo Pumar

Chairman

Francisco Pumar

CEO

Domingo González

CFO

Zacarías Zulategui

Andalusia Homebuilding

Director

Enrique Ayala

Madrid Homebuilding

Director

Lola Cánovas

Property Director

Board member since 2001 and Chairman of the Management Board since 2005.

Graduated in Law and Business Administration (ICADE) and Senior Management Programme (Instituto San Telmo).

He has 20 years experience in Business Administration and Civil Law.

He joined Insur in 1999

Graduated in Law (Universidad de Sevilla) and MBA (ESADE)

He started his career with Insur as Director of the Development and Urbanism department, and later Deputy General Director, becoming General Director in 2010.

He joined Insur in 2002

Graduated in Business Administration and Management (Universidad de Sevilla), Accounts Auditor and MBA (Instituto San Telmo).

He had previously developed his professional career in internal and external auditing. He joined Insur as head of investment companies and controller. Since 2007, he is CFO

He joined Insur in 2009

Graduated in Law (Universidad de Sevill), MBA (ESADE), Real Estate Company Management Course (IESE) and Course in Urban Planning (IFE). He previously worked as Director of Development in various real estate companies.

He joined Insur in 2007

Graduated in Law and Business Administration (ICADE) and MBA (IESE)

He was previously Head of Expansion and Development in the central area of Spain in an international shopping centre company.

She joined Insur in 1994

Diploma in Business Sciences (Escuela Universitaria de Estudios Empresariales de Murcia) and Diploma in Business Management (Instituto San Telmo). She has developed her entire professional career at Insur, initially in the commercial department, as Director of Quality, and since 2010 as Director of Property Management.

33

Management Team

Pedro Candáu

Construction Director

José Luis Jiménez

Technical Director

Alejandro Fernández

Business Centers & Parking

Director

José Antonio Carrillo

Development &Town

Planning Director

Irene Ávila

Organization and Internal

Control Director

Raquel Bravo

Marketing & Communication

Director

He joined Insur in 1997

Technical Architect (Universidad de Sevilla), Real Estate Management Programme (CEU) and Business Administration Programme (Instituto San Telmo). Since he joined the company, he has held various positions - director of projects, construction manager and since 2011, Construction Director.

He joined Insur in 2015

Technical Architect and Building Engineer (Universidad de Sevilla).

He had previously been group manager and technical director in national and international building and development companies He started his professional career at Insur as Technical Manager of West Andalucia, and was nominated Technical Director of the group in 2017.

He joined Insur in 2007

Industrial Engineer (Universidad de Malaga) and Business Management and Administration Programme (Instituto San Telmo). He had previously developed his professional career in the Municipal and Services Company of Malaga.

He joined Insur as Director of Car parks and since 2016, he is also Manager of the Business Centre.

He joined Insur in 2005

Graduated in Business Administration and Management (Universidad de Sevilla) and Senior Course of Expert in Construction Law (Instituto de Estudios Cajasol).

He started his professional career at Insur as Senior in the Development and Town Planning department, and was appointed Director of this department in 2010.

She joined Insur in 2015.

Industrial Engineer, specialty of Industrial Organization (University of Seville). Project Management Professional, PMP®. She previously worked as Organization Manager in a construction and installation company for 10 years.

She joined Insur in 2018.

Marketing, advertising and public relations specialist. Masters in Digital Marketing. More tan 20 years of experience in marketing and communication. She previously worked at Havas Worldwide, Habitat Inmobiliaria, Grupo Pinar | Adaptis | Q21 Real Estate y Aelca.

34

Conciliation between equity method and proportionate method

Consolidated P&L Thousand €

1H 2020

1H 2019

Equity method

Adjustments Proportionate

Equity method

Adjustments

Proportionate

Revenues

35,370

7,905

43,276

56,430

(9,566)

46,864

a

Housebuilding

12,372

15,568

27,939

9,532

8,928

18,460

Rentals

6,304

51

6,355

6,618

44

6,662

b

Construction

15,022

(7,359)

7.664

37,419

(18,037)

19,382

Asset Management

1,672

(354)

1,318

2,861

(501)

2,360

Results from entities valued using

  1. the equity method
    EBITDA
    Result on the sale of investment property
    Adjusted EBITDA Operating profit Financial result Profit before tax

Net profit

Main adjustments:

2,029

(2,036)

(7)

870

(869)

1

6,764

999

7,763

7,415

443

7,858

-

-

-

-

-

-

6,764

999

7,763

7,415

443

7,858

5,155

977

6,132

6,038

417

6,455

(2,448)

(299)

(2,747)

(2,673)

(195)

(2,868)

2,708

677

3,385

3,365

222

3,587

2,537

-

2,537

2,677

-

2,677

  1. Housebuilding revenues: it increases as it adds the revenue figure of the JVs in the proportion in which Grupo Insur participates in them
  2. Construction revenue: this figure is composed by the incomes generated by the works in the JV developments. When consolidating by the proportionate method, the incomes corresponding to the % of the participation of the Group in these companies are eliminated.
  3. In the consolidated P&L under the proportionate method, the results of the joint ventures are included as operating profit, financial result and income tax expense, in the percentage that the Group owns in those JVs, remaining as results from entities valued using the equity method the results corresponding to the associated companies

35

Conciliation between equity method and proportionate method

Consolidated balance sheet Thousand €

30/06/2020

31/12/2019

Equity method

Adjustments

Proportionate

Equity method

Adjustments

Proportionate

Property, Plant and Equipment

150,897

77

150.974

146,646

100

146,746

a

Financial investments in JVs

43,575

(42,182)

1.393

42,816

(40,977)

1,839

b

Inventory

96,733

103,865

200.598

100,489

100,849

201,338

Debtors and other receivables

19,430

(4,563)

14.867

29,491

(8,312)

21,179

Other assets

44,939

(3,421)

41.518

43,122

(2,123)

40,999

Cash and equivalents

55,090

9,558

64.648

33,742

16,290

50,032

TOTAL ASSETS

410,664

63,334

473.998

396,306

65,827

462,133

Net equity

109,672

-

109.672

107,232

-

107,232

c

Amounts owed to credit institutions

225,620

39,974

265.594

179,121

40,622

219,743

Other financial liabilities

12,797

-

12.797

26,726

-

26,726

d

Trade and other payables

35,402

14,454

49.856

43,508

14,966

58,474

Other liabilities

27,173

8,906

36.079

39,719

10,239

49,958

TOTAL EQUITY AND LIABILITIES

410,664

63,334

473.998

396,306

65,827

462,133

Main adjustments:

  1. Financial investments in JVs: the cost of the financial investments in JVs on the assets of the consolidated balance according to the equity method is replaced by the assets and liabilities that these JVs incorporate in the proportionate balance sheet, in the participation held by the Group in them.
  2. Inventory: the proportionate method of consolidating the JVs implies the incorporation of the inventory figure in the proportion in which the Group participates in these companies.
  3. Amounts owed to credit institutions: the proportionate method of consolidating the Jvs implies the incorporation of the debt figure in the proportion in which the Group participates in these companies
  4. Trade and other payables : the integration of the JVs implies the incorporation of their accounts payable in the proportion in which the Group participates in these companies

36

María Pérez-Mosso

Head of IR

Tel: +34 671 497 670 mperezm@grupoinsur.com

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Inmobiliaria del Sur SA published this content on 05 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2020 12:31:10 UTC