Branicks Group (DIC) Investor presentation summary

Transaction structure and implementation

• Agreement reached on restructuring €580m unsecured debt, splitting into €375m senior secured and €205m subordinated portions, with maturities extended to 2030 and 2038 respectively.

• €35m new money at Branicks and €60m at VIB provided as interim bridge financing, to be rolled into long-term tranches, supporting liquidity and repayment of maturing notes.

• Transaction supported by over 60% of bondholders and 90% of SSD holders, implemented via a two-step process involving bondholder votes and contractual amendments.

• Comprehensive security package includes double LuxCo structure, share pledges, and guarantees across group entities.

• Governance overhaul with appointment of a CRO, resignation of the CEO by end-2026, and new independent supervisory board members at both Branicks and VIB.

Financial impact and recovery analysis

• Lender recovery under the restructuring is materially higher than in a liquidation scenario, with discounted recoveries estimated at 34c (including VIB shares) versus 13c in a knock-on insolvency.

• Asset disposal program at both Branicks and VIB levels is central to deleveraging and debt repayment, with proceeds applied at par to reinstated debt.

• Enhanced economics: new money at 10% cash interest, senior secured at 7.5%, subordinated at 15% PIK, plus fees for subordination and late redemption.

• Capital structure post-transaction targets >60% capital return by Dec 2028, with significant deleveraging through asset sales.

• Cash build-up from disposals triggers semi-annual cash sweeps above €30m, supporting further debt reduction.

Key financial and credit metrics

• Net rental income and EBITDA decline through FY27 due to asset sales, then stabilize with indexation and re-letting; EBITDA driven by rental and management fees.

• Total interest expense post-transaction is €110-120m annually, with FFO stabilizing at €50m by FY30; positive adjusted net income expected by end of plan.

• Operating cash flow projected at €75-90m annually (FY26-FY30), with capex stable after FY26; cash increases through asset disposals and sweeps.

• LTV reduces from 56% to below 50% post-transaction, with further declines as disposals proceed; ICR maintained above 1.5x.

• Book equity ratio declines due to disposals and depreciation, but net debt falls as liabilities are repaid.