Transcript Slajd 1 - J.W. Construction

RESULTS FOR THE FIRST SIX MONTHS OF 2008
Strictly
Private & Confidential
J.W. CONSTRUCTION HOLDING S.A. PRESENTATION
30 September 2008
Presentation Agenda
Mission of J.W. Construction Holding S.A. …….………………………………………..3
Strategy of J.W. Construction Holding S.A. ….………………………………………….4
Results for the first six months of 2008 ………………………………………………….7
Gross profit on sales for the 1st half - year of 2008 ……….……..…………………….9
1st half - year of 2008 highlights …………….……………………………………………10
Significant events after the 1st half - year of 2008 …..……..………………………...14
Projected profit to be recognized in 2008 ………………………………………..……15
Strictly
Private & Confidential
Projected share of selected projects in total revenue in 2008 ……..……….……..16
Strategy implementation - major projects in 2008 ……………….…..……....………17
Projects in progress ……….…………..…………………………………………………..27
Projects in the sales stage .….……….…………………………………………………..29
Planned projects ……….…….………………………………………………………........30
Industry development prospects in the company’s view …………………………..32
Sales policy in 2008 ……….………………………………………….…………………...34
PRESENTATION J.W. Construction Holding S.A. – September 2008
2
Mission of J.W. Construction Holding S.A.
The mission of the Company is to satisfy the housing needs of all
those who value comfort and safety at an affordable price. Thanks
to this business philosophy the Company is the largest Polish
developer specialising in the segment of flats accessible to a wide
group of Customers. It incorporates a strategy consisting in
continuously increasing the functionality and high quality of the flats
Strictly
Private & Confidential
offered by the Company, while maintaining competitive prices.
PRESENTATION J.W. Construction Holding S.A. – September 2008
3
Strategy of J.W. Construction Holding S.A.
The strategic objectives of the Company are:
strengthening the leading position among developers
diversifying the sources of revenues and profits by separating construction
and designing activities from the existing structures, and also by launching
building production
implementing new housing, office and infrastructure projects in Poland and
abroad
Strictly
Private & Confidential
reducing and rationalising costs at each and every stage of production and
service provision
PRESENTATION J.W. Construction Holding S.A. – September 2008
4
Strategy of J.W. Construction Holding S.A.
The Company attains its strategic objectives by:
preparing new housing offers
introducing new products for Customers in co-operation with banks and
leading manufacturers of finishing materials
executing projects in the commercial spaces building sector – office blocks
in Warsaw and Szczecin and the expansion of the Hotel 500 chain
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Private & Confidential
executing a holiday apartments complex project in Bulgaria and high
standard flats in Sochi
PRESENTATION J.W. Construction Holding S.A. – September 2008
5
Strategy of J.W. Construction Holding S.A.
The Company attains its strategic objectives by:
implementing a modern, cost-effective ceramic walls building technology
accelerating the construction process by a subsidiary
outsourcing of services (legal and advisory services, strategic consulting, IT)
Strictly
Private & Confidential
purchasing modern and efficient plant and machinery used in construction
PRESENTATION J.W. Construction Holding S.A. – September 2008
6
Results for the first six months of 2008
Gross margin, %
Sales revenue, PLN million:
450
386,1
400
250
29
29
227,5
28
200
28
150
27
100
27,0
27
50
26
26
0
1st half-year of 2007
1st half-year of 2008
1st half-year of 2007
1st half-year of 2008*
* with the exception of projects recognized with
zero margin
1st half-year of 2008 sales revenue - an increase by 69,7% (by PLN 158.7
million in absolute terms) compared to the same period of the previous year
Strictly
Private & Confidential
30,0
30
30
350
300
31
PRESENTATION J.W. Construction Holding S.A. – September 2008
7
Results for the first six months of 2008
Net profit, PLN million:
Operating profit, PLN million:
80
71,9
70
40
40
40,7
30
30
25,6
20
20
10
10
0
0
1st half-year of 2007
1st half-year of 2008
1st half-year of 2007
1st half-year of 2008
1st half-year of 2008 operating profit - an increase by 76.6% (by PLN 31.2
million in absolute terms) compared to 1st half-year of 2007
Net profit - an increase by 98.7% (by PLN 25.3 million in absolute terms)
compared to 1st half-year of 2007
Strictly
Private & Confidential
50,9
50
60
50
60
PRESENTATION J.W. Construction Holding S.A. – September 2008
8
Gross profit on sales for the 1st half - year of 2008
The total gross sales profit in 1st half-year of 2008 came to PLN 101.4 million.
The following projects contributed the most to this figure:
Górczewska Park, Warsaw, Górczewska/Olbrachta Streets - 39%
Osiedle Lazurowa, Warsaw, Lazurowa Street - 23%
Osada Wiślana, Warsaw, Marcina z Wrocimowic Street - 12%
Rezydencja Quatro, Warsaw, Łukowska Street - 12%
Other projects also contributed to the profits, including:
Osiedle Centrum, Łódź, Tymienieckiego Street
Victoria Park II, Kolomna, Russia
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Private & Confidential
Osiedle Leśne, Gdynia, Parkowa Street - 10%
PRESENTATION J.W. Construction Holding S.A. – September 2008
9
1st half - year of 2008 highlights
The most important event taking place in the first half of 2008 was the
separation from J.W. Construction Holding S.A. of its three Branches and
their contribution as organised parts of the enterprise to subsidiary
companies
- to J.W. Construction S.A. - a branch under the name of J.W. Construction
Holding S.A. “Budownictwo”
- to JW Projekt Sp. z o. o. — a branch under the name of J.W. Construction
Holding S.A. „Pracownia Projektowa”
- to JWCH Produkcja Budowlana Sp. z o. o. — a branch under the name of
J.W. Construction Holding S.A. „Zakład Prefabrykacji Budowlanej”
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Private & Confidential
On 30 April 2008, three Extraordinary General Meetings took place at J.W.
Construction Holding S.A. subsidiaries, as a result of which agreements
concerning the transfer of organized parts of the company (branches) were
concluded:
PRESENTATION J.W. Construction Holding S.A. – September 2008
10
1st half - year of 2008 highlights
In June 2008, the Company celebrated the 15th anniversary of its
operations
Further extension of the “land bank” through the purchase by the J.W.
Construction Bułgaria EOOD, a subsidiary with its registered office in
Sofia, of a property with an area of over 1.4 hectares in the Bulgarian
Golden Sands resort
Strictly
Private & Confidential
Valid construction permit obtained for the Wiślana Aleja project at
Odkryta Street in Warsaw
Obtaining valid construction permits and starting the construction of the
projects as listed below:
- Lewandów Park I, Warsaw, Lewandów Street
- Aleja Ludwinowska II, Warsaw, Ludwinowska Avenue
- Lewandów Park II, Warsaw, Lewandów Street
- I stage Lazurowe Ustronie I (Ożarów Mazowiecki)
- Bursztynowe Osiedle, Warsaw, Korkowa Street
PRESENTATION J.W. Construction Holding S.A. – September 2008
11
1st half - year of 2008 highlights
“Company of the Year 2007” award for notable achievements in the field of
residential construction and for the successful first listing on the Warsaw
Stock Exchange - granted by the Polish Business Club
JWCH ranked first in the “2008 Developer Ranking List” drawn up by the
editors of the Gazeta Prawna Business Forum; the list includes the largest
and most dynamic companies in the development industry
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Private & Confidential
Inclusion in the “Forbes Diamond 2008” list of companies that increased
their value most rapidly between 2004 and 2006, leveraging the favorable
economic climate in the most effective way
PRESENTATION J.W. Construction Holding S.A. – September 2008
12
1st half - year of 2008 highlights
The fifth diamond added to the Polish Business Leader statuette awarded by
the Business Centre Club
J.W. Construction was included in the “500 Largest Polish Companies” list
compiled by the Polityka weekly
The company was nominated for the “Construction Master” award granted by
the editors of the Home&Market monthly in the Best Building Contractor
category
“Benefactor of the Year 2007” title in a competition held by the Academy for
the Development of Philanthropy in Poland
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Private & Confidential
The company was included in the “List of 500” which lists top Polish
companies, compiled by the editors of the Rzeczpospolita daily
PRESENTATION J.W. Construction Holding S.A. – September 2008
13
Significant events after 1st half - year of 2008
Another purchase of land (conditional agreement) situated in Warsaw
(Mokotów district), Antoniewska Street
Strictly
Private & Confidential
In July 2008, the Company concluded an agreement with an investment
firm within the meaning of Article 6, para. 3, point b) of Commission
Regulation (EC) No. 2273/2003 of December 22, 2003 concerning the
implementation of a share buy-back program in order to redeem the shares
purchased. The program shall be implemented until June 30, 2009 or until
the funds allocated to its implementation are exhausted; the number of
shares purchased shall be no fewer than 1,500,000. The maximum amount
of funds allocated to program implementation shall be PLN 55,000,000; the
funds shall come from the Company’s supplementary capital.
PRESENTATION J.W. Construction Holding S.A. – September 2008
14
Projected profit to be recognized in 2008
The projected 2008 gross sales profit level is PLN 256.5 million. The following
projects will contribute the most to this figure (according to estimates):
Górczewska Park II, Warsaw, Górczewska/Olbrachta Streets - 35%
Osiedle Lewandów II, Warsaw, Lewandów Street - 17%
Osiedle Lazurowa, Warsaw, Lazurowa Street - 13%
Osada Wiślana, Warsaw, Marcina z Wrocimowic Street - 11%
Osiedle Leśne, Gdynia, Parkowa Street - 7%
The following projects, inter alia, will also contribute to sales profits:
Victoria Park II, Russia, Kolomna
Osiedle Bursztynowe, Warsaw, Korkowa Street
Wiślana Aleja, Warsaw, Odkryta Street
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Private & Confidential
Rezydencja Quatro, Warsaw, Łukowska Street - 7%
PRESENTATION J.W. Construction Holding S.A. – September 2008
15
Project
Projected revenue to
be recognized in 2008,
PLN thousand
Percentage of
projected 2008
revenue
Górczewska Park II, Warsaw,
Górczewska/Olbrachta Streets
195,317
24%
Osiedle Lazurowa, Warsaw, Lazurowa Street
120,984
15%
Lewandów Park II, Warsaw, Lewandów Street
110,596
13%
Osada Wiślana, Warsaw, Marcina z Wrocimowic Street
78,320
10%
Rezydencja Quatro, Warsaw, Łukowska Street
49,347
6%
Victoria Park II, Kolomna, Russia
44,965
5%
Lewandów Park I, Warsaw, Lewandów Street
41,419
5%
Other
178,929
22%
TOTAL
819,877
100%
Strictly
Private & Confidential
Projected share of selected projects
in total revenue in 2008
PRESENTATION J.W. Construction Holding S.A. – September 2008
16
Strategy implementation - major projects in 2008
The company is developing the projects that were announced in the
prospectus. The most important projects which will have impact on
financial results are:
in the Warsaw market - Górczewska Park, Osiedle Lazurowa, Osada
Wiślana, Lewandów Park II, Rezydencja Quatro, Osiedle Bursztynowe,
Wiślana Aleja
in the Russian market - Victoria Park
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Private & Confidential
in the Tri-City (Gdańsk, Gdynia, Sopot) market - Osiedle Leśne
PRESENTATION J.W. Construction Holding S.A. – September 2008
17
Projects - Warsaw market
Osiedle Lazurowa
Warsaw, Bemowo District,
Lazurowa Street
A housing estate at Lazurowa
Street in Warsaw, close to the
projected subway station. The
project consists of four stages, on
completion it will include 669 high-
Project
Usable apartment
floor space (sq. m)
Revenue (PLN
thousand)
Progress (average for all
stages) in terms of cost and
revenue - 31 December 2008
projection
Osiedle Lazurowa
33,727
253,827
Cost: 96%
Revenue: 97%
Strictly
Private & Confidential
standard apartments.
PRESENTATION J.W. Construction Holding S.A. – September 2008
18
Projects - Warsaw market
Górczewska Park
(Górczewska II)
Warsaw, Wola District,
Górczewska/Olbrachta Streets
Project
Usable
apartment floor
space (sq. m)
Revenue (PLN
thousand)
Progress in terms of cost
and revenue - 31 December
2008 projection
Osiedle
Górczewska Park
44,929
434,107
Cost: 95%
Revenue: 83%
Strictly
Private & Confidential
The Górczewska Park project
includes 12 apartment buildings
situated at Górczewska/Olbrachta
Streets - 886 apartments and 4
commercial premises.
PRESENTATION J.W. Construction Holding S.A. – September 2008
19
Projects - Warsaw market
Osiedle Lewandów Park
Warsaw, Lewandów Street
Project
Usable
apartment floor
space (sq. m)
Osiedle
Lewandów Park
Strictly
Private & Confidential
A gated housing compound
consisting of over 1,900
apartments. Construction in two
stages - Lewandów Park I and
Lewandów Park II. Attractive
location, good connection to the
city center.
PRESENTATION J.W. Construction Holding S.A. – September 2008
81,191
Revenue (PLN
thousand)
Progress in terms of cost
and revenue - 31 December
2008 projection
420,808
Stage I cost: 29%
Stage I revenue: 98%
Stage II cost: 40%
Stage II revenue: 85%
20
Projects - Warsaw market
Osiedle Bursztynowe
Warsaw, Korkowa Street
Project
Usable
apartment floor
space (sq. m)
Revenue (PLN
thousand)
Progress in terms of cost
and revenue - 31 December
2008 projection
Osiedle Bursztynowe
17,402
119,823
Cost: 40%
Revenue: 85%
Strictly
Private & Confidential
A small, cozy housing estate
consisting of four-story houses.
Very good connection to the city
center. Gated and guarded
estate. 322 apartments are
planned.
PRESENTATION J.W. Construction Holding S.A. – September 2008
21
Projects - Warsaw market
Wiślana Aleja
Warsaw, Odkryta Street
Project
Usable
apartment floor
space (sq. m)
Revenue (PLN
thousand)
Progress in terms of cost
and revenue - 31 December
2008 projection
Wiślana Aleja
9,770
71,917
Cost: 40%
Revenue: 93%
Strictly
Private & Confidential
A housing estate consisting of
modern six-story houses. The
estate includes 200 apartments
with underground garages. Fast
and easy access to schools,
kindergartens and shopping
malls.
PRESENTATION J.W. Construction Holding S.A. – September 2008
22
Projects - outside Warsaw
Osiedle Leśne
Gdynia, Parkowa Street
Project
Usable
apartment floor
space (sq. m)
Revenue (PLN
thousand)
Progress in terms of cost
and revenue - 31 December
2008 projection
Osiedle Leśne
12,871
90,928
Cost: 100%
Revenue: 89%
Strictly
Private & Confidential
This is the second project
developed in Gdynia at Parkowa
Street and surrounded by the
forests of the Tri-City Landscape
Park. The guarded housing estate
consists of nine four-story houses
with 202 apartments.
PRESENTATION J.W. Construction Holding S.A. – September 2008
23
Projects - outside Warsaw
Lazurowe Ustronie I - stage I
A compound consisting of 11
residential buildings with
underground garages. The project
will include 376 apartments.
Service facilities as well as a
school and kindergarten are also
planned. On completion of all
stages, the project should include
around 4,000 apartments.
Project
Usable
apartment floor
space (sq. m)
Revenue (PLN
thousand)
Progress in terms of cost
and revenue - 31 December
2008 projection
Lazurowe Ustronie I
Stage I
17,902
104,550
Cost: 40%
Revenue: 30%
Strictly
Private & Confidential
Kręczki-Kaputy, Ożarów
Mazowiecki municipality
PRESENTATION J.W. Construction Holding S.A. – September 2008
24
Projects abroad
Victoria Park
Kolomna, Russia
Project
Usable
apartment floor
space (sq. m)
Revenue (PLN
thousand)
58,196
366,074
Victoria Park
Progress in terms of cost
and revenue, A1 block –
31 December 2008 projection
Cost A1: 80%
Revenue A1: 80%
Strictly
Private & Confidential
A guarded housing estate
consisting of six apartment
blocks in the town of Kolomna
near Moscow. The project
includes over 1,100 apartments
and the planned completion
date for the entire estate is
2012.
PRESENTATION J.W. Construction Holding S.A. – September 2008
25
Projects abroad
Osiedle Jakornaja Szczel
Sochi (Russia) - construction
starts in Q4 2008
Project
Usable
apartment floor
space (sq. m)
Revenue (PLN
thousand)
62,000
350,900
Sochi
Progress in terms of cost
and revenue 31 December 2008 projection
Cost: 5%
Revenue: 0%
Strictly
Private & Confidential
A housing estate consisting of
seven
16-story
apartment
blocks (1,200 apartments in
total), complete with a swimming
pool, fitness center, tennis courts,
cafés and shopping facilities.
PRESENTATION J.W. Construction Holding S.A. – September 2008
26
Projects in progress
Projects under construction and in the sales stage (figures as at the end of June 2008)
Project
Total No. of
apartments
No. of apartments
sold
Planned project
completion date
% included in 2008 results
1,410
1,409
1st half of 2008 – flats are
being handed over
100%
324
305
1st half of 2008 – flats are
being handed over
97%
261
261
1st half of 2008 – flats are
being handed over
100%
177
165
1st half of 2008 – flats are
being handed over
96%
68
68
Q3 2008
100%
202
167
Q4 2008
89%
669
636
Q4 2008
93%
404
371
243
242
1st half 2009
74%
890
702
Q2/Q3 2009
79%
24
2
Q3 2008
0%
Osiedle Górczewska
Warsaw, Górczewska Street
Osiedle Centrum
Łódź, Tymienieckiego Street
Rezydencja na Skarpie IV
Warsaw, Bukowińska Street
Willa Konstancin
Konstancin, Bielawska/Paproci
Streets
Aleja Ludwinowska
Warsaw, Ludwinowska Street
Osiedle Leśne
Strictly
Private & Confidential
Gdynia, Parkowa Street
Osiedle Lazurowa
Warsaw, Lazurowa Street
Osada Wiślana
Warsaw, Marcina z Wrocimowic
Street
Rezydencja Quatro
Warsaw, Łukowska Street
stage I– Q3/Q4 2008
stages II and III – Q2/Q3 2009
84%
Górczewska Park
Warsaw, Górczewska/Olbrachta
Streets
Osiedle Uroczysko, Katowice,
Bałtycka Street
PRESENTATION J.W. Construction Holding S.A. – September 2008
27
Projects in progress
Projects under construction and in the sales stage (figures as at the end of June 2008)
Project
Total No. of
apartments
No. of apartments
sold
Planned project
completion date
% included in 2008 results
Victoria Park II (Russia) A1 block
158
104
Q1 2009
64%
1,905
1,577
1st half 2010
32%
200
176
Q1 2010
37%
322
250
1st half 2010
34%
24
8
Q3 2009
20%
376*
39
Q4 2009
0%
Lewandów Park I and II
Warsaw, Lewandów Street
Wiślana Aleja
Warsaw, Odkryta Street
Osiedle Bursztynowe,
Warsaw, Korkowa Street
Aleja Ludwinowska II,
Warsaw, Ludwinowska Avenue
I stage Lazurowe Ustronie I,
Ożarów Mazowiecki
Strictly
Private & Confidential
*Apartments available for sale
PRESENTATION J.W. Construction Holding S.A. – September 2008
28
Projects in the sales stage,
projected construction start 2nd half 2008
Project
Estimated revenue,
PLN thousand
No. of apartments
No. of apartments
sold
Zielona Dolina
Warsaw, Zdziarska/Ostródzka Streets
455,085
633*
355
Apartments under construction and in
the sales stage, total
No. of apartments
No. of apartments sold
8,290
6,837
Strictly
Private & Confidential
*Apartments available for sale
PRESENTATION J.W. Construction Holding S.A. – September 2008
29
Strictly
Private & Confidential
Planned projects (status as at the end of June 2008)
Project
City / district
Market segment
No. of apartments /
houses
Estimated usable
apartment floor
space, sq. m
Lewandów Park III,
Lewandów Street
Warsaw / Białołęka
District
Standard apartments
787
33,179
Zielona Dolina,
Zdziarska/Ostródzka
Streets
Warsaw / Białołęka
District
Standard apartments
872
43,350
Światowida
Warsaw / Białołęka
District
Standard apartments
237
13,035
Osiedle Centrum II
Łódź
Standard apartments
432
23,760
Pogonowskiego
Łódź
Standard apartments
109
5,995
Uroczysko
Katowice
Standard apartments
563
24,616
Szczecin, Wyzwolenia
Avenue
Szczecin
Luxury apartments /
service facilities
400
32,000
Szczecin — Porta
Transport plot
Szczecin
Standard apartments
5,400
297,000
Lazurowe Ustronie I
Ożarów
Mazowiecki
Standard apartments
1,530
74,688
Lazurowe Ustronie II
Ożarów
Mazowiecki
Standard apartments
762
36,338
Lazurowe Ustronie III
Ożarów
Mazowiecki
Standard apartments
1,016
61,610
Łeba
Łeba
Standard apartments
490
29,055
Berensona
Warsaw / Białołęka
District
Standard apartments
170
9,350
PRESENTATION J.W. Construction Holding S.A. – September 2008
30
Project
City / district
Market segment
No. of apartments
/ houses
Estimated usable
apartment floor space,
sq. m
Victoria Park II
Kolomna / Russia
Standard apartments
782
43,010
Aluzyjna I
Warsaw / Tarchomin
District
Standard apartments
46
2,530
Aluzyjna II
Warsaw / Tarchomin
District
Standard apartments
120
7,000
Konstancin II
Konstancin
Standard apartments
136
8,800
Sopot, Parkowa Street
Sopot
Arrangements pending
17
2,500
Badylarska – Office
Building
Warsaw
Services
-
4,500
Pileckiego – Offices /
Hotel
Warsaw
Services / hotel services
-
17,500
Głogoczów – Hotel
Głogoczów
Hotel services
-
3,000
Juszkowo I
Gdańsk
Arrangements pending
-
7,000
Krynica – Czarny Potok
Krynica
Hotel services
-
20,882
Sochi
Russia
Standard apartments
ca. 1,200
82,000
Złote Piaski
Bulgaria
Holiday apartments
180
17,700
Warsaw, Antoniewska
Street*
Warsaw/Mokotów
District
Standard apartments
550
28,834
15,779
929,232
TOTAL
* the investment also includes the plot purchased in July 2008 by way of a conditional agreement
Strictly
Private & Confidential
Planned projects (status as at the end of June 2008)
PRESENTATION J.W. Construction Holding S.A. – September 2008
31
Industry development prospects in the
company’s view
Regardless of the stagnation in the housing market, which has been felt for
several months now, supply is still outstripped by demand — the shortfall
amounts to over 1.5 million apartments (Central Statistical Office figures as
of December 2007)
Increasing urbanization contributes to rising demand for real estate in large
cities
Steady GDP growth, decreasing unemployment and rising salaries
The range of mortgage loans on offer remains broad and widely available
despite the banks’ announcements concerning the tightening of lending
criteria
Strictly
Private & Confidential
There is an active group of customers in the real estate market who were
born during the 1980s baby boom and whose housing needs still have not
been met
PRESENTATION J.W. Construction Holding S.A. – September 2008
32
Industry development prospects in the
company’s view
Stabilization of real estate prices in the near future and a gradual increase in
prices beginning in fall 2008 or spring 2009 at the latest (according to real
estate market experts)
Stable pricing situation in the construction materials market
Strictly
Private & Confidential
In the longer term, demand will be boosted again from 2010 onwards due to
the Euro 2012 effect and Poland’s probable entry into the euro area
PRESENTATION J.W. Construction Holding S.A. – September 2008
33
Sales policy in 2008
Wide offer of financing programmes for Customers
Packages offering special conditions, dedicated to employees of institutions
co-operating with J.W. Construction
Interior finishing programmes for Customers
Continuous marketing activities
An employee sales programme involving employees of J.W. Construction in
the sales activities
Strictly
Private & Confidential
Implementation of alternative sales channels
PRESENTATION J.W. Construction Holding S.A. – September 2008
34
Private & Confidential
Head of Financial Liquidity Management
and Head of the Investor Relations Office
Strictly
Phone: +48 022 771 77 85 / +48 0 22 771 78 10
or +48 022 771 75 10
e-mail: [email protected]
INVESTOR RELATIONS OFFICE:
Małgorzata Szwarc-Sroka