Neinor Homes Sa Ord

Hi, good morning everyone. My name is Jose Cravo and I'm the Head of Investor Relations at Nainor Homes. Today we're going to go over results for the first semester of the year 2026 and as usual we are here with Jordi Argemí that is taking the role as the new CEO, Borja Garcia-Egotxeaga, our departing CEO, and Mario Lapiedra, our CIO. We'll start the presentation with the key highlights in Section 1, then on Section 2 we'll provide an update on the Spanish residential market, On Section 3 and 4, we will review operational and financial results. And on Section 5, we finish with the key takeaways. After the presentation, there will be a Q&A session to answer any questions you may have. Now I'll hand over the presentation to our CEO, Jordi Argemí.

Thanks, José. Before I begin, I would like to thank the Board of Directors and the shareholders for my appointment as CEO and for the trust they have placed in me. In my view, after several years in which we have consolidated our position, As the undisputed leader of the Spanish residential market, this company has never been stronger. We have the full backing of our stakeholders, a track record that speaks for itself, and a democratic capacity to raise capital in both public and private markets. In my view, these strengths will be the key to lead the company into the next phase of growth. And I couldn't be prouder of what we have done in the last few years, and more ambitious about what comes next. With that said, let's start with the presentation, in slide number four. Starting with the context, the first half of this year has been tricky. We have integrated AEDAS against a backdrop of real geopolitical uncertainty, with a war in the Middle East and volatile energy prices. Through all of it, this company has done an exceptional work, and I would like to thank every single person in Enor Homes for keeping the focus after a big acquisition such as AEDAS. Now, four big messages today. First, the market. The fundamentals held through uncertainty. Resilient growth, the healthiest household balance sheets in decades, and a market structurally short of homes. We will show you in a minute why Spain continues to be one of the best residential markets in the world. Second, execution. We have integrated AEDAS, the largest acquisition in our history and in the sector. And in just four months, We have done it with zero disruption on the deliveries, construction, commercialization, or IT systems. It is true that we had a strong track record based on qubit and IDAT transactions, but AEDAS is a different animal due to the size. Third message, the financials. We have operated a step change in a scale without disruption, and the year-on-year figures demonstrated clearly. But this was not growth for the sake of growth. Margins remain very solid and this translated into strong cash flow generation. Strong enough to accelerate our shareholder remuneration targets for the year, buy out the IEDES minorities after the second tender offer and pay back 100 million of Apolo's debt ahead of schedule. All of it in less than six months. And fourth and last one, the guidance. We already reiterated in April in our AGM and today with the first semester closed, Our visibility over those objectives keeps on growing. In my view, the best answer to uncertainty is delivery. And in this first half, we have delivered once again. If we move to the next slide, it shows the whole company on one page. And the story this slide tells is both scale and growth. With AEDAS fully integrated, every single KPI has stepped up. On the operational side, we have a land bank of nearly 37,000 units, out of which 23,000 are fully owned and 19,000 active units under production, giving us years of visibility and tangible cash flow generation. Commercialization is well advanced, with a record order book of 9,300 units worth 3.3 billion euros, half of the total active units. On the financials, we delivered close to 2,400 units, also record, and generated 680 million euros of revenues. But as you know, volume is one thing and profitability another. Our priority has always been to translate execution into profitability to have better returns for our shareholders. In that sense, the first semesters we have kept strong underlying margins, driving an EBITDA of 119 million. Overall, every metric is materially higher than a year ago. That is the accretive impact of Aedes, flowing through the business in record time, and better than our initial expectations. We will review it in detail later on. Now, let me hand over to Borja, who is going to comment the market.

Thank you, Jordi. Good morning, everyone. As always, let me start by giving the big picture. And the message is the same one I have been giving you Spain remains one of the safest and strongest residential markets, not only in Europe, but in the world. This semester, that message was tested once again. We have a war in the Middle East, energy prices moving up, and plenty of geopolitical noise. And yet, look at the chart on the top right. In January, the consensus for Spanish GDP growth this year was 2.2%. Today, after six months of geopolitical uncertainty, it stands at 2.3%. That is nearly four times the Eurozone average of 0.6% and well ahead of the UK and Germany. And one of the reasons behind this growth has been, without a doubt, the job market and the private consumption in Spain. The Spanish economy has created more than 600,000 jobs, taking social security affiliates to an all-time record of 22.4 million people. More people working and living in Spain means more households, and therefore more demand for housing. Having said this, if there is one variable where we have felt the impact of the conflict in the Middle East, it has been inflation. which accelerated to 3.2% in June. This is mainly the conflict feeding through energy prices, a supply side effect, not overheating demand. So the takeaway from this slide is simple. The Spanish macro has been extremely resilient. Please let's move to slide number eight. On the slide number seven, I showed you the demand. On this slide, I want to show the quality of that demand. Because a strong economy is one thing, but what makes a housing market truly resilient is the strength of the balance sheets behind it. And here, Spain is a class of its own. Household debt stands at just 43% of GDP, the lowest level in more than 20 years, and among the lowest in Europe. Look at the chart on the right. Spanish households were among the most indebted. Today, we are below Germany, the UK, and the US. That is 43% points deliberating since the year 2010 peak. Mortgage debt tells the same story, the dash line. It has halved since the peak to a record low of 30% of GDP. Meanwhile, families keep saving. The savings rate remains high at over 11%. And on financing, yes, Euribor has moved up by around 0.8 points, close to 2.9%. But mortgage rates in Spain remain very competitive at around 2.5 and 3%. So put it together, low leverage, high savings, cheap fixed rate financing for 30 years. This is why Spanish demand is resilient to shocks. When rates move, our buyers do not break because they were not stretched to begin with. Please follow me to slide number nine. So far I have shown you the demand and the strength of the balance sheets behind it. Now let's look at the other side, supply. This is where the Spanish opportunity becomes truly structural. The message is simple and well known. Spain does not build enough houses. And it hasn't done it for over a decade. Spain is building less than 90,000 units per year. At the 2008 peak, Spain built nearly 600,000 houses. We are 85% below that level. And look at the chart. Since 2020, house building remains almost flat. Demand is booming, but supply has not responded. So the key question is why? And there are two structural reasons. The first is land. There is not enough fully land permitted. Madrid is the clearest example. New supply has fallen 25% since 2021, simply because permitted land is scarce. The second is the structure of the market. The Spanish residential market is strictly fragmented. It is dominated by small local developers. These are not institutional players. They lack scale. And critically, many of them, they lack access to bank financing for construction. So even when demand is there, even when land exists, much of the market cannot fund the CAPEX to build at reasonable costs. This is the heart of the opportunity. A structural shortage, driven by fragmentation and limited access to capital. It is a market that needs an institutional-grade, well-capitalized platform to build at scale. That is exactly what Nenor is. And in today's market, that is our competitive advantage. Now let me put the numbers together. According to the Bank of Spain, since 2021, Spain has accumulated a deficit of 750,000 homes. And the gap keeps widening. In the first quarter alone, households grew by 56,000. Moreover, this week, the Spanish Statistics Institute released its population forecast for the upcoming years. and in the next 15 years the Spanish population is expected to grow by more than 4 million people. More households forming and not enough homes being built. This is not cyclical, it is structural and it does not correct quickly. Please follow me now to slide number 10. So let me bring this section together. Think about what I have just shown you. Demand is strong. Balance sheets are healthy and supply is structurally short. Put those three together and you would expect one thing, significant increases in home prices. But that is not what happened in Spain. And this slide is for me the most important of the section. Look at the chart. This is how prices since 2005 indexes across four countries. You see, in Germany, the UK and the US, home prices have nearly doubled. Spain isn't anywhere close to it. And here is the key figure. In real terms, adjusted for inflation, Spanish prices are still 21% below the 2007 peak. Since the throw in 2014, Prices have grown 60% in nominal terms, but just 24% in real terms. So the growth has been real, but disciplined. Coming back to the beginning, the Spanish residential market after the global financial crisis is significantly smaller, but much, much healthier. And this is where slide number eight connects. Prudent bank lending has kept demand disciplined. No Excesses Looking forward, our view is clear. Demand is resilient. Supply is constrained. Credit is disciplined. And with this context, we expect prices to keep rising in the following years, at around 5% per year. Not a spike. Sustained structural growth. Exactly the environment in which we operate best. With that, let me hand back to Jordi.