2013-06-26 1 PRESENTATION OF RESULTS FOR THE FIRST half OF
2013
Slide 2
2 Table of contents The most important events in the first half
of 2013 Factors that affect the the activity of the Company in the
first half of 2013 Sale of flats in the first half of 2013 Chosen
consolidated financial data for the first half of 2013 Chosen
consolidated financial data for Q2 2013 Margin in gross from the
sale vs gross profit from sale Realization of the gross profit from
sale in the first half of 2013 Administration costs vs employment
Premises in the offer to be recognized in the result in further
quarters Investments realized in the first half of 2013 Investments
planned to launch Strategy for next years The most important
marketing events in the first half of 2013 Marketing and sale
policy in the first half of 2013 Designs planned to launch in
2013
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3 The most important events in the first half of 2013 Obtained
permissions for the use of the following investments: Obtained
construction permits for the first stage of the Investment: Bliska
Wola - Warszawa, building permits for I stage of Bliska Wola
Investment Warszawa, Kasprzaka street - 156 premises. Postponent of
payment terms of the bonds with a total value of PLN 200,7 mln: The
company has successfully carried out the issue of new bonds worth
PLN 105.7 millions with maturing in January 2016. For the means
from the issuance, JWCH purchased significant majority of the bonds
issued in June 2010 in the total amount of PLN 130 millions for
which the maturity would have taken place in June this year Company
also completed successfuly the negotiations with bondholders
concerning the prolongation of bonds maturity date for bonds issued
in April 2012 in the amount of PLN 95 mln dedicated to the cover of
the part of price for the purchased plot at Kasprzata street in
Warsaw. Thanks to this, the original maturity date falling in April
2015 has been extended to January 2016. Total bonds redemption in
the amount of 24.3 mln PLN. Data on the investment wiatowida
housing development, Warszawa- Tarchomin Zielona Dolina I,
Warszawa-Biaoka Number of premises: 166 apartments 18 business
premises 589 apartments 7 business premises Premises sold until:
June 30, 2013: 160 apartments 18 business premises 222 apartments 5
business premises
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4 The most important events in the first half of 2013 Getting a
loan and opening the closed escrow account for SPV-Seahouse Sp. z
o.o. realizing an investment of Redowo Residence in Gdynia in
accordance with the provisions of the new development law. Ending
of the I edition of Struggle for home program, realized on Villa
Campina housing development and broadcasted in TVN, where J.W.
Construction Holding S.A. was a Partner. Ending of the first
external contract of J.W.C. Sp. z o.o. the construction of Oxygen
apartment building ( 45 Wronia street).
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5 Factors that affect the the activity of the Company in the
first half of 2013 Thanks to the further reduction in interest
rates, for the first time in history, PLN mortgage loans interest
rates fell below 4%. The revival on the mortgage loans market
(increase in the number of credit agreements in the Q2 2013 by 6%
in comparison to Q1 2013). Announcement of the program: "Flats for
youth" and "Fund of flats for rent". Bigger interest in flats
purchase for investment purposes. Finished flats in Company offer
in the segment of popular flats. Change of the investment
realization strategy - high flexibility of the organizational
structures in relation to the market needs (General Contracting
system). Large competition on the market of contracting companies -
building costs decrease.
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6 Factors that affect the the activity of the Company in the
first half of 2013 Development law which makes it more difficult to
among others fund new investments. Financial institutions are not
prepared to co-finance designs in the light of new regulations.
Hold of development branch funding by some banks. Lack of
government program to support demand for flats in 2013. Ending the
"Family's Own Place" program resulted in some purchasers return to
the secondary market.
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7 Sales of flats in the first half of 2013 J.W. Construction
Holding S.A., in Q2 2013 sold 205 premises. In spite of no
government support for developers, the sale has increased in Q2 by
45,4 % in comparison to the analogous period in the previous year *
Data on sales include sales of "Oxygen investment (34 premises in
2013 and 30 premises in 2012)
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8 Chosen consolidated financial data for the first half of 2013
Increase of profit from sale in the first half of 2013 by 17% in
comparison to analogous period in previous year. Decrease of net
profit in the first half of 2013 by 40% in comparison to analogous
period in previous year. Chosen financial data First half of 2012
First half of 2013 Change half to half profit from sale PLN 155.4
mlnPLN 181.3 mln +17% Gross profit from salePLN 43.6 mlnPLN 38.7
mln- 11% Gross margin on sale28%21%- 7 p.p. Proft on operating
activitiesPLN 40.2 mlnPLN 24.3 mln- 39% Net profitPLN 8.6 mlnPLN
5.1 mln- 40%
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9 Chosen consolidated financial data for the second quarter of
2013 Decrease of profit from sale in the second quarter od 2013 by
12% in comparison to the analogous period in the previous year
Decrease of net profit in the second quarter of 2013 by 86% in
comparison to analogous period in the previous year. Chosen
financial data The second quarter of 2012 The second quarter of
2013 Change quarter to quarter profit from sale PLN 108.9 mlnPLN
95.5 mln-12% Gross profit from sale PLN 30.7 mlnPLN 20.6 mln-33%
Gross margin on sale 28%22%-6p.p. Proft from operating activities
PLN 29.2 mlnPLN 9.6 mln-67% Net profit PLN 6.1 mlnPLN 0.8
mln-86%
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10 Pre-tax sales profit vs Pre-tax sales marging Margin in
gross on sale within the long period of time is maintained at the
level above 20%.
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11 Realization of the gross profit from sale in the first half
of 2013 Units recognized in the result of I half of 2012 vs. I half
of 2013 The level of gross profit earned from sales for the first
half of 2013 is PLN 38.7 mil. Percentage of developer designs
recognized in profit from sales:
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12 Overheads vs employment Including employment in hotels: * 91
people ** 131 people *** 144 people Number of people 416
Slide 13
13 Premises (in pieces) in the offer to be recognized in the
result of further quarters sold premises Not transferred 230
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14 Investments realized in the first half of 2013 Commercial
investments Name of the design Progress of the design Useable area
(sq. m.) Realized - commercial Hanza Tower - Szczecin "zero"
condition realized 36 328 In the first half of 2013, a total of
1.304 premises with a total surface of 72.039 m 2 and 36.328 m 2 of
useful surface on the commercial investment (at the "zero" level)
were realized in residential investments Residential investments
Name of the designNumber of premises Useable area (sq. m.) Realized
- residential Redowo Residence, Gdynia523 259 Pitkowo Oasis,
Pozna1839 423 Oxygen Investment Warszawa*28720 868 Villa Campina
Oarw houses2354 Permission to use validation Zielona Dolina I,
Warszawa59627 722 wiatowida housing development, Warszawa 18410 413
IN TOTAL1 30472 039 * The investment is realized within the frames
of General Contracting by JWC Sp. z o.o. company.
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15 Investments in Warsaw and in the vicinity Investment Number
of premise s PUM Warszawa, Kasprzaka street, stage II 94442,213 m 2
Warszawa, Zielona Dolina II86538,258 m 2 Warszawa, Kasprzaka
street, stage V 76533,270 m 2 Warszawa, Kasprzaka street, stage III
48221,155 m 2 Warszawa, Kasprzaka street, stage IV 55824,258 m 2
Warszawa, Berensona street26311,874 m 2 Warszawa, Antoniewska
street23413,864 m 2 Warszawa, Kasprzaka street, stage I (the
construction has been already started) 1567,550 m 2 Investments
planned to launch according to the condition on the 30th of June
2013 During two years, on the basis of the land bank, the Copany is
planning to launch the realization of more than 6.000 premises: Red
color was used to mark designs that are planned to be launched in
2013 Investment Number of premises PUM Warszawa, Aluzyjna II684 080
m 2 Warszawa, Odkryta II824 158 m 2 Warszawa, Aluzyjna street
I301,800 m 2 Warszawa Osada Wilana211,024 m 2 Zielona Dolina
III442,256 m 2 Nowodworska - Houses161,400 m 2 Warszawa Mikoaja
Trby181,440 m 2 Villa Campina (Oarw houses)101,870 m 2 In total
Number of premises 4 556 Useable area 210 470 m 2
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16 Investments beyond Warsaw Investments planned to be launch
Investment Number of premises PUM Katowice, Tysiclecia street stage
II48823,805 m 2 Katowice, Tysiclecia street, stage I1497,085 m 2
Katowice, Batycka street23614,467 m 2 Gdynia, Spokojna street,
stage II23613,614 m 2 Gdynia, Spokojna street, stage I19611,306 m 2
d, Tymienieckiego street III1085,072 m 2 Gdynia, Sochaczewska
street513,600 m 2 In total:1 46478,949 m 2 Red color was used to
mark designs that are planned to be launched in 2013
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17 Strategy for next years Strategic goals Intensification of
works related to the preparation of detailed design documentation
and obtaining building permit Strenghtening the leadership among
developers, both in Warsaw and within the whole country
Implementation of innovative sales solutions onto the market
Activity concentration on the segment of residential
investments
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18 The most important marketing events in the first half of
2013 Distinction of Hotel Czarny Potok Resort & SPA an emblem
of Polish Exclusive 2013. Introducing to the offer a new program of
interiors decor: Premium, available in four versions: "White",
"Black", "Cappucino" and "Orange". Achieving sales and image
effects thanks to the participation in the I edition of Struggle
for home as a basis to continue the cooperation: In August 2013,
the second edition of Struggle for home was started with the
participation of J.W. Construction Holding S.A. This time, within
the frames of the program, pictures are realized in the Zielona
Dolina investment.
Slide 19
19 Marketing and sale policy in the first half of 2013 Focusing
the marketing and adevertising strategic actions on the internet
marketing field. Leading campaigns directed on the sale of premises
that are fully ready to be occupied in Warszawa, Oarw Mazowiecki
and d. Continuation of sponsoring action, directed to the promotion
of Company investment and strenghtening its image concluding
agreement concerning the realization of TVNs program Struggle for
home in Zielona Dolina investment. Preparation to lead the Oxygen
Residence program for Oxygen investment. Oxygen Residence service
makes it possible to use the complex program of rent management.
This is a proposal for investors and the added value for apartment
building occupants - possibility to use premium services, as for
example concierge.
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20 Design Warszawa, Berensona street Location Warszawa,
Berensona street Number of flats263 Useable area (in sq. m.)11 874
Design net value (in mln of PLN) 66 Characteristics the design
covers 12 facilities low, prestige development Localization on
Biaoka the most resiliently developing district in Warsaw Safe
playground within the area of housing development Proximity of
agglomeration conveniences: schools, kindergartens, shopping
centres Quick commute to the city centre Designs to launch in 2013:
Warszawa, Berensona street
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21 Design d, Tymienieckiego street Location d, Tymienieckiego
street Number of flats108 Useable area(in sq. m.)5 072 Design net
value (in mln of PLN) 28 Characteristics the design covers 3
facilities with max. 7 storeys prestige location in the historic
area of d wide scope of metric areas and room arrangements Enclosed
and supervised area Safe playgrounds Designs to launch in 2013: d,
Tymienieckiego street
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22 Design Gdynia, Spokojna street Location Gdynia, Spokojna
street Number of flatsI stage 196 Useable area (in sq. m.)I stage
11,306 Design net value (in mln of PLN) 65 Characteristics
attractive location - vicinity of Lena and Spacerowa streets low,
cosy development Wide scope of metric areas and rooms arrangement
Design of room arrangement allows for any arrangement of interior
Proximity of beach and Trjmiejski Park Krajobrazowy Designs to
launch in 2013: Gdynia, Spokojna street, stage I
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23 DesignBliska Wola LocationWarszawa, Wola Number of premises
156 in I stage, 944 in II stage (in prospect, the investment will
cover approximately 3000 premises) Useable area (in sq. m.) I
stage: 7 550, II stage 42 213 Service trading offices (in m 2 ) as
a target - more than 70 000 Design net value (in mln of PLN)
approximately 53 for I stage, approximately 298 for II stage
Characteristics great location - only 3 km from the strict center
of the city very well developed communication infrastructure subway
station since 2014 Recreational area within the premises of housing
development Interesting and modern buildings architecture
Competitive flats prices Designs to launch in 2013: Bliska Wola,
Stage I and II
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24 DesignNowe Tysiclecie LocationKatowice Number of flats I
stage 149 Useable area (in sq. m.) I stage 7,085 Design net value
(in mln of PLN) 37 Characteristics as a target the design should
cover five 17-storey residential and office facilities Modern
architecture numerous glazings Attractive location allows for
convenient and quich communication with city centre Terrain
development includes numerous shrubs and trees Wide scope of metric
area selection Vicinity of green terrains including Park lski (the
biggest city park in Europe) Designs to launch in 2013: Nowe
Tysiclecie, Etap I
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25 Thank you for your attention INVESTOR RELATIONS: Magorzata
Szwarc-Sroka Economy Division and Investor Relations Office Head
J.W. Construction Holding S.A. Member of the Management Board of
J.W. Construction Sp. z o.o. phone: 22 771 77 85 e-mail.:
[email protected]