Evolution of the construction sector in Romania Corneliu

CONTENT 1. Romania Macroeconomics 2. The overall market – the big picture 3. Office

1. Romania Macroeconomics § Based on increased consumer confidence and domestic consumption § Increased

2. The overall market – the big picture § 2015: +10, 4% overall vs.

3. Office market § Bucharest main office market in RO with more than 360,

4. Retail commercial developments § Encouraged by household consumption (+5, 7% vs. 2014): food

5. Industrial market • Some 900, 000 sqm GLA announced for 2016 -2017 Sources:

6. Land market Source: Colliers 2015 Report 10/29/2021 8

7. Residential developments (1) Permits split Houses vs. Apartments, '000 units Single family houses,

7. Residential developments (2) Dwelling Permits Split Single Family H. vs. Apartments, % Share

7. Residential developments (3) Average Surface/dwelling, m² Single Family H. 154 150 153 Multi

7. Residential developments (4) Dwelling Permits vs. Completed Dwellings, '000 units Dwelling permits (houses

8. Some conclusions & comments § Fiscal aspects § VAT at 20% (from 24%)

Annex: First House - summary Launched in 07’ 2009 Prima Casa covers some 180,

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Evolution of the construction sector in Romania Corneliu Fecioru – Managing Director, Wienerberger

CONTENT 1. Romania Macroeconomics 2. The overall market – the big picture 3. Office market 4. Retail commercial developments 5. Industrial market 6. Land market 7. Residential developments 8. Some conclusions & comments 10/29/2021 2

1. Romania Macroeconomics § Based on increased consumer confidence and domestic consumption § Increased minimum wage § Reduction of VAT from 24% to 20% § Increased RON-denominated lending (+44% Yo. Y) § RON denominated mortgages doubled in 2015 10/29/2021 3

2. The overall market – the big picture § 2015: +10, 4% overall vs. 2014 (all data, gross series, monetary value) Structure of industry § New buildings +5% § Capital repairs +32% § Usual maintenance +13% Structure by objects § Engineering works +20% (includes roads, railways, bridges, airports, stadiums etc. ) § Non-residential works +1% (include offices, shops, warehouses etc. ) § Residential works - 6% (spaces for residential use of min. 50% surface) Source: INSSE – the Romanian Statistics Institute 10/29/2021 4

3. Office market § Bucharest main office market in RO with more than 360, 000 sqm to be delivered in 2016, some 800, 000 sqm until 2018 § The bulk of projects goes to Floreasca-Barbu Vacarescu, Center West and Dimitrie Pompeiu § Outsourcing expected to generate most of the demand in the coming years Sources: Colliers 2015 Report, JLL analysis 10/29/2021 5

4. Retail commercial developments § Encouraged by household consumption (+5, 7% vs. 2014): food +16%, nonfood +1% § Most retailers expanded their presence in 2015 § New international brands entered RO in 2015 § Forecast to increase with additional 500, 000 sqm by 2020 Source: Colliers 2015 Report , JLL analysis 10/29/2021 6

5. Industrial market • Some 900, 000 sqm GLA announced for 2016 -2017 Sources: Colliers 2015 Report , JLL analysis 10/29/2021 7

6. Land market Source: Colliers 2015 Report 10/29/2021 8

7. Residential developments (1) Permits split Houses vs. Apartments, '000 units Single family houses, SFH Apartments in MFH 60 19 15 58 2008 47 2009 41 2010 11 14 15 25 38 36 36 36 2011 2012 2013 2014 31 37 2015 2 3 4 4 Jan-Feb '15 Jan-Feb '16 Source: INSSE – the Romanian Statistics Institute, Wienerberger analysis 10/29/2021 9

7. Residential developments (2) Dwelling Permits Split Single Family H. vs. Apartments, % Share in Total Single Family H. 28% 26% 23% 27% Multi Family H. (apartments) 29% 41% 51% 72% 74% 77% 73% 71% 59% 49% 2008 2009 2010 2011 2012 46% 2013 2014 54% 2015 39% 61% Jan-Feb '15 47% 53% Jan-Feb '16 Source: INSSE – the Romanian Statistics Institute, Wienerberger analysis 10/29/2021 10

7. Residential developments (3) Average Surface/dwelling, m² Single Family H. 154 150 153 Multi Family H. (apartments) 154 149 148 149 151 79 80 97 92 2008 2009 86 2010 87 2011 78 2012 80 84 74 2013 2014 72 2015 2016 Jan-Feb '15 Jan-Feb '16 Source: INSSE – the Romanian Statistics Institute, Wienerberger analysis 10/29/2021 11

7. Residential developments (4) Dwelling Permits vs. Completed Dwellings, '000 units Dwelling permits (houses & apartments) Completed dwellings (houses & apartments) 119 88 67 55 51 64 38 30 33 2004 2005 67 66 40 60 49 50 51 44 43 44 63 49 47 43 47 6 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 7 YTD Feb 15 16 Source: INSSE – the Romanian Statistics Institute, Wienerberger analysis 10/29/2021 12

8. Some conclusions & comments § Fiscal aspects § VAT at 20% (from 24%) in 2016, to be reduced to 19% after 01. 2017 § 5% VAT for social housing (up to 450 TRON with 01’ 16, vs. 380 TRON till 12’ 15) § Residential financing § More RON denominated loans § New law: “legea darii in plata” § Overview mortgage credits § Acc. to BNR there are some 474, 000 mortgage credits in RO (worth 17, 2 bn. €), out of which some 17, 500 credits are non performing loans (delays > 90 days) § Prima Casa covers some 180, 000 credits (worth 6, 7 bn. €) § The new law applies to 99, 5% from standard credits (293, 000 contracts) 10/29/2021 13

Annex: First House - summary Launched in 07’ 2009 Prima Casa covers some 180, 000 credits (worth 6, 7 bn. €) Open to first time house buyers or owners of dwellings < 50 sqm Buying an existing dwelling worth up to 57 T€ For dwelling with permits issued after 22. 02. 2010: § New dwelling worth up to 66, 5 T€ For building a SFH § New house worth up to 70 T€ Duration of credit – from 120 to 360 months 10/29/2021 14