Transcript Slajd 1 - J.W. Construction

MeetingContents
agenda
Year 2012 - time of multiplying the Company's assets, completion of implemented
investments and preparation of future projects bank
4
Doubling tangible assets
5
The most important events in 2012
6
Factors influencing the Company's activity in 2012
8
Sales of apartments in 2012
9
Selected consolidated financial data for the fourth quarter of 2012
10
Selected consolidated financial data for 2102
11
Implementation of the gross profit on sales in 2012
12
Premises from an offer for recognition in results of subsequent quarters
13
Implemented investments in 2012 - housing spaces
14
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MeetingContents
agenda
Implemented investments in 2012 - commercial spaces
15
Investments planned to start
16
The strategy for next years
17
Selected projects implemented in 2012: Rezydencja Redłowo
18
Selected projects planned to start in 2013: Miasteczko Kasprzaka
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Selected projects planned to start in 2013: Osiedle Millenium
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Year2012 - time of multiplying the Company's assets, completion of
implemented investments and preparation of future projects bank
 In 2012, the Company was implementing a construction of 3 commercial-hotel
Developer of
projects with a usable floor area of almost 60,000 m2 in : Szczecin, Krynica Zdrój
commercial space
and Sopot
 Some upgrading works were carried out in Hotels 500
 In 2012, the construction of 9 housing projects were carried out
simultaneously
Developer of
housing space
(including 1 investment in General Contarcting)
 Purchase completion of a plot of land at Kasprzaka Street, where an
investment comprising nearly 3,000 units and 70,000 m2 of usable floor
space will be erected
 Intensive works on the preparation to launch new investments in Warsaw,
Łódź, Gdynia and Katowice were carried out
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Doubling tangible assets
Tangible assets and investment properties
 Doubled values of tangible assets
and investment properties in the
period of 2.5 year:
Value as at
30.06.2010:
+98%
PLN 416 mil
Value as at
31.12.2012:
PLN 824 mil
Debt interest
 The rate of growth of debt was
lower than the growth rate of
fixed assets
Value as at
30.06.2010:
PLN 660 mil
5
+16%
Value as at
31.12.2012:
PLN 767 mil
The most important
eventsagenda
in 2012
Meeting
 Finalization of land acquisition and adoption of a conceptual design of a residential-services complex
at Kasprzaka Street in Warsaw.


PLN 155 mil net– the value of a purchased land
ca.3,000 units and 70,000 m2 of US; 5 stages of the investment implementation
 Opening of a hotel complex of Czarny Potok Hotel Resort & SPA in KrynicaZdrój in September:



PLN 200 mil– the value of a market valuation
231 luxurious rooms; 500 seats in conference rooms, luxurious SPA
in less than 3 months after opening, the Hotel was recognized as Investment of the Year
2012
(a prize awarded by the National Central Bureau of Certification, appreciating both innovative design and the highest standard of
a luxury complex).
Czarny Potok Hotel Resort&SPA
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The most important
eventsagenda
in 2012
Meeting
 Obtaining a building permit for construction 2 housing estates in Gdynia at
Powstania Wielkopolskiego and in Katowice at Tysiąclecia Street
 Construction completion of 5 housing investments and 2 commercial
projects:







Osiedle Światowida - Warsaw
Osiedle Zielona Dolina I - Warsaw
Osiedle Lewandów (build. 3-6) - Warsaw
Villa Campina – Ożarów Mazowiecki (multifamily buildings)
Osiedle Centrum II - Łódź
Sopot Guest-house
Czarny Potok Hotel Resort & SPA - Krynica Zdrój
 Acquisition of new loans with an approximate total value of PLN 100 mil.
 Prizes and awards:




Golden Statuette POLISH HERCULES 2011 in the category: POLISH PROPERTY
DEVELOPER
1st place in CIJ Journal for the best developer in the Central - Eastern Europe
in times of crisis
The Company was ranked in "500 Ranking" of Bloomberg Businessweek
Poland
JWCH S.A was on the " List of 200 biggest Polish enterprisers"
selected by Rzeczpospolita daily.
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NEGATIVE
 The restrictive policy of banks in terms ofgiving mortgage credits
 High interest rates in the financial market of WIBOR - limiting the creditworthiness of
the Company's customers
 The last months of "Family on its Own" program
 Great demand for flats on the primary market
 Developer Act -restrictions in developer financing
 Pressure to decrease flat prices
POSITIVE
Factors factors
influencing
the Company's
activityactivity
in 2012
External
influencing
the Company's
 Ready flats in the offer of the Company
 Change of the investment strategy - flexibility of organizational structures in relation
to the needs of the market (system of General Contracting)
 Intense competition on the market of contractors - the availability of attractive
prices, thereby lowering production costs
 Stable prices on the market of buildingmaterials
8
Sales of apartments in 2012
*
**
1,029
256
228
248
Q1
Q2
Q3
853
306
297
Q4
206
Total 2011
Q1
141
Q2
200
Q3
Q4
 J.W. Construction Holding S.A in 2012 sold 853 units, including 306 in Q4, what according to
Rzeczpospolita newspaper gives the Company the 2nd place in the ranking on a number of sold
flats
Including:
* 30 premises in OXYGEN investment
** 61 premises in OXYGEN investment
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Total 2012
Selected consolidated financial data for the fourth quarter of
2012
Selected financial data
Q4 2011
Q4 2012
Change Q/Q
Revenues from sales
PLN 88.4 mil
PLN 144.2 mil
+63.1%
Gross profit on sales
PLN 16.9 mil
PLN 29.0 mil
+71.6%
Gross margin on sales
19.1%
20.2%
+1,1 p.p.
Operating profit
PLN 6.4 mil
PLN 18.0 mil
+181.3%
Net profit
PLN 1.2 mil
PLN 7.1 mil
+491.7%
 Increase in revenues from sales in Q4 by 63.1% y/y
 Increase in gross margin on sales in Q4 2012 by 1 p.p y/y.
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Selected consolidated financial datafor 2102
2011
2012
Changes y/
y
Revenues from sales
PLN 378.6 mil
PLN 355.6 mil
-6.1%
Gross profit on sales
PLN 101.4 mil
PLN 80.4 mil
-20.7%
Gross margin on sales
26.8%
22.6%
-4,2 p.p.
Operating profit
PLN 63.9 mil
PLN 59.6 mil
-6.7%
Net profit
PLN 31.3 mil
PLN 9.6 mil
-69.3%
Selected financial data
 Decrease in revenues from sales in 2012 by 6.1% y/y
 Maintaining gross margin on sales in 2012 at a good level. Slight decrease in 2012 by 4.2 p.p
y/y
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Implementation of the gross profit on sales in 2012
 The level of gross profit earned from sales for 2012 is PLN 80.37 mil of which PLN 56.48 mil is from
developer projects. The percentage of developer projects recognized in profit from sales:
5%
3% 3%
8%
Villa Campina - b.blocks (88 pcs)
10%
Górczewska Park (84 pcs)
17%
Lewandów II (87 pcs)
Lewandów bud. 3-6 (126 pcs)
Lewandów I (53 pcs)
12%
Łódź Tymienieckiego II (129 pcs)
Światowida (42 pcs)
Bursztynowe Osiedle (29 pcs)
15%
Zielona Dolina I (32 pcs)
7%
Other (39 pcs)
20%
Units recognized in results in 2012 vs 2011:
968
709
2011
2012
12
Premises from an offer for recognition in results
of subsequent quarters
* in units
Bursztynowe Osiedle
15
Other
19
Lewandów I
41
Rezydencja Redłowo
52
Górczewska Park
56
Lewandów build. 3 - 6
82
Lewandów II
106
Łódź Tymienieckiego II
123
Światowida
Oaza Piątkowo
Villa Campina - b. blocks
Zielona Dolina I
142
183
288
564
1671*
Total
13
Implemented investments in 2012 - housing spaces
596
Number
of units
376
12
184
183
287*
252
208
52
Houses
"Villa Campina"
Rezydencja
Redłowo
Oaza
Piątkowo
27,722
Osiedle
Osiedle
Osiedle
Lewandów
I
Centrum
II
Światowida
build. 3-6
Osiedle
OXYGEN
Osiedle
Villa
Campina
Osiedle
Zielona
Dolina I
20 868*
17 938
UFS
2,050
12,225
10,413
9,423
8,763
3,259
Osiedle
Zielona
Dolina I
Osiedle
OXYGEN
Osiedle Villa Osiedle
Osiedle
Campina Centrum II Światowida
* Investment implemented in General Contracting
Osiedle
Rezydencja
Oaza
Lewandów
I
Redłowo
Piątkowo
build. 3-6
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Houses
"Villa Campina"
Implemented investments in 2012 - commercial
spaces
 In 2012,the Company was executing commercial-hotel projects with a total usable floor area of
almost 60,000 m2.
Usable Floor
Space
Investment
Hanza Tower in Szczecin- level "zero" done
36,328 m2
Hotel "Czarny Potok" in Krynica Zdrójcommissioned
20,500 m2
Luxurious guest-house in Sopot- commissioned
Hanza Tower
Luxurious guest-house
in Sopot
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Hotel 4* Czarny Potok
Hotel Resort&SPA
2,852 m2
Investments planned to start
 During the next two years, the Company, on a basis of an owned land bank, plans to start the
implementation nearly 6,100 units:
Investments in Warsaw and vicinity
Investment
Number of
units
Investments beyond Warsaw
UFS
Investment
Warsaw, at Kasprzaka Street, Stage II
965
41,725 m2
Warsaw, Zielona Dolina II
864
38,258 m2
Warsaw, at Kasprzaka Street, Stage V
765
33,270 m2
Katowice, at Tysiąclecia Street,
Stage II
Katowice, at Tysiąclecia Street,
Stage I
Warsaw, at Kasprzaka Street, Stage III
564
24,538 m2
Warsaw, at Kasprzaka Street, Stage IV
558
Warsaw, at Berensona Street
Number of
units
UFS
536
25,411 m2
149
7,040 m2
Katowice, at Bałtycka Street
259
14 467 m2
24,258 m2
Gdynia, at Spokojna Street, Stage II
236
13,614 m2
263
11,663 m2
Gdynia, at Spokojna Street, Stage I
196
11,306 m2
Warsaw, at Antoniewska Street
234
13,864 m2
Łódź, at Tymienieckiego Street III
108
5,165 m2
Warsaw, at Kasprzaka Street, Stage I
156
7,550 m2
Gdynia, at Sochaczewska Street
51
3,600 m2
Warsaw, Aluzyjna II
68
4,080 m2
Warsaw, Odkryta II
82
4,158 m2
1,535
80, 603 m2
Warsaw, at Aluzyjna Street I
30
1,800 m2
Total:
4,549 205,164 m2
*Investments which are planned to start in 2013 are in green colour 16
Total:
THE MOST IMPORTANT STRATEGIC AIMS
The strategy for next years
 To start the biggest number of new residential projects offering faster, current
cash flow and return on investment from previously purchased plots.
 To intensify works related to the preparation of project documentation and
obtaining building permits
 To strengthen the leader position both among developers in Warsaw (on the
basis of an owned extensive land bank), and across the country, due to its
expansion into other areas of Poland– Tri-City market, Łódź, Katowice, Poznań
 Reduction and postponement of commercial and hotel projects, acquisition of
partners for implementing these projects is being considered
 Selective acquisition of new locations and reducing the scale of construction
land bank
 Active actions toward non-performing assets
 Continuing the reduction of fixed costs, including overhead costs, through an
internal reorganization of the Company
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Selected projects implemented in 2012:
Rezydencja Redłowo
Description:
Location: Gdynia, Redłowo
 Modern housing in a cosy and low-rise
Number of flats: 52
development
 Functional and perfected floor-plans of
apartments with an area from 38 to 96 m2
 The community is fully fenced, monitored
with physical protection.
 Excellent location, Kępa Redłowska
reservation close by
UFS: 3,259 m2
Project's net value:about PLN 27 mil
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Selected projects planned to start in 2013:
Miasteczko Kasprzaka
Location: Wola, Warsaw
Number ofunits: 156 in Stage I, 965 in Stage II
(arget number of units in the investment: 3.000)
1st stage UFS: 7,550 m2
2nd stage UFS: 41,725 m2
Services- trade-offices: target: about 70,000 m2
Project's net value: about PLN 53 mil for Stage 1
about PLN 298 mil for Stage 2
Description:
Staging
Very good location - just
3km to the city centre
 Numerous transport nodes in the area
 Shopping mall: modern cosy spaces


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Selected projects planned to start in 2013:
Osiedle Millenium
Description:
Location: Katowice, Os.Tysiaclecia
Number of flats: 149 in Stage I
Staging
Very good location - just
5 minute drive to the city centre
 Well developed communication infrastructure
 Shopping mall: Silesia City Center
 The proximity of green and recreational areas


(target number of units in the investment: 685)
1st stage UFS: 7,040 m2
Project'snet value: about PLN 35 mil
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Investor Relations:
Małgorzata Szwarc-Sroka
Economy Division
and Investor Relations Office HeadDirector of Economic and Director of Investor Relations J.W
Construction Holding S.A.
Member of Management Board of J.W Construction S.A.
phone: 22 771 77 85
e-mail.: [email protected]
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