Quabit Inmobiliaria : Business Plan 2017-2022 (pdf, 288,89KB)

COMISION NACIONAL DEL MERCADO DE VALORES‌‌‌‌‌‌‌

Calle Edison n° 4 28006 Madrid

Madrid, 20 November 2017

QUABIT INMOBILIARIA, S.A. ("Quabit" or the "Company"), pursuant to the provisions of article 228 of the consolidated text of the Law on the Securities Market approved by Royal Decree Law 4/2015, dated 23 October, makes the following: ANNOUNCEMENT

The Company announces that last 15 November, the Board of Directors of the Company approved its restated Business Plan for the years 2017 to 2022.

This restatement refers to the Business Plan published by the Company on 19 January 2017.

This restatement follows the Shareholders' Meeting that approved a series capital increases via contributions in kind and in cash, coupled with the signing of new lines of financing (Avenue and Alpin) together with the intense investment activity during the year and the launch of a great number of developments.

The company expects to exceed the chief figures of the previous plan (2017-2021) by around 20%. It is noteworthy that the company has been able to secure land at lower cost than initially estimated as a result of the team's management capabilities.

This new plan forecasts a turnover of 1,915 million euros, delivering some 7,880 dwellings, generating an operating cash flow of 463 million euros, investing 673 million euros in land and paying out 87 million euros in cash dividends during the period.

The objective of the company for the year 2022 is to achieve a turnover of 600 million euros, exceed 100 million euros in Ebitda and deliver some 3,000 dwellings a year.

The bases for this restatement are as follows:

• Strategic positioning:

  > Quabit is a Spanish real estate group with over 20 years' experience, listed on the stock exchange since 2006 whose business is based on creating value via integral management of the entire real estate cycle via two chief lines of business: land management and real estate development.

  > It is a nationwide company aimed at resuming its position as one of the leaders of the real estate market in Spain and is taking up positions

  in those areas with the greatest growth potential (Madrid, Corredor del Henares, Malaga, Costa del Sol and Community of Valencia, among others).

  > Quabit's growth plan is managed by a high qualified team with tried and proven experience in the real estate sector with a deep knowledge of the market and high management capabilities.

  > QUABIT is one of the few companies focused on real estate development with direct and clear exposure to the recovery and consolidation of the real estate market.

• A sound balance sheet:

  > Sound financial structure and asset situation.

  > Off-balance sheet value levers: Tax credits pending recognition and debt write-offs.

  > New debt repayment schedule: 9.4% the next 2 years; 26.4% the following 2; and 64.2% in 2022.

• Greater visibility of the Business Plan:

  > Land portfolio: QUABIT's current land portfolio, coupled with the land acquisitions completed that will materialise shortly, and together with the residential developments the company has in execution and for sale, lend great visibility to its ambitious Business Plan.

  > Capacity to attract financial resources: QUABIT expects to raise up to 95 million euros via a capital increase and via new financing in the sum of 120 million euros for land acquisition, a part of which will arise from the renewal of the line signed with the Avenue Capital Group.

• Value creation and shareholder remuneration:

  > Good Corporate Governance. Quality information and market transparency.

  > Distribution of dividends in cash in the sum of 87 million euros as from 2019.

  Objectives:

• Return on investment in excess of 5% in respect of a dividend.

• Fivefold the company's book value.

• Exceed 1,000 million euros on the balance sheet.

The presentation attached to this announcement summarises the restatement of the Business Plan.

The Secretary to the Board of Directors Miguel Angel Melero Bowen

BUSINESS PLAN 2017-2022

NOVEMBER 2017

DISCLAIMER

This document contains information, statements and declarations that constitute forward-looking statements of Quabit Inmobiliaria

S.A. (the "Company"). These estimates or statements (i) may include declarations concerning plans, objectives and current expectations, including declarations with regard to trends affecting the Company's situation, its business, results, margins, etc, (ii) may also include assumptions concerning future business or environmental conditions and (iii) non constitute any warranty that these will materialise in future and are subject to different circumstances, such as risks, uncertainty, changes and other factors beyond the Company's control or difficult to predict. These risks and uncertainties include the risk factors and circumstances reported by the Company to the Comisión Nacional del Mercado de Valores in Spain. Except as required by law, the Company assumes no obligation to provide public information about the review, compliance or otherwise of the contents of this document. This document does not constitute any offer or invitation for the acquisition or transfer of shares or other Company securities in accordance with the provisions of Royal Decree Law 4/2015 dated 23 October which approves the consolidated text of the Securities Market Law. This document is the property of the Company.

2

QUABIT INMOBILIARIA | PLAN DE NEGOCIO 2017-2022