Transcript Slajd 1 - J.W. Construction

Contents
Meeting agenda
The most significant events in Q1 2013
3
Factors influencing the Company's activity in Q1 2013
6
Sales of flats in Q1 2013
7
Selected consolidated financial data for Q1 2013
8
Gross margin on sales vs gross profit on sales
9
Implementation of the gross profit from sales in Q1 2013
10
Premises from an offer for recognition in results of subsequent quarters
11
Investments implemented in Q1 2013
12
Investments planned to start
13
The strategy for next years
14
Overhead costs vs employment
15
Marketing-sales policy in Q1 2013
16
Selected projects implemented in Q1 2013: Rezydencja Redłowo
18
Selected projects planned to start in 2013: Bliska Wola
19
Selected projects planned to start in 2013: Osiedle Millenium
20
2
The most significant events in Q1 2013
 Obtaining a permit for the use of the following investments ;
Investment facts
Osiedle Światowida, WarsawTarchomin
Zielona Dolina I,
Warsaw- Białołęka
Number of units:
166 flats
18 commercial units
589 flats
7 commercial units
Units sold as at
31/03/2013
151 flats
18 commercial units
180 flats
4 commercial units
 Submission of an application for a building permit for the investment in Kasprzaka Street, Warsaw:
„Bliska Wola”, Warsaw - Wola
The investment with a housing-service-retail character, which will be implemented in stages.
On 3 April, the Company received a building permit for the 1st stage of the investment comprising an
implementation of153 flats and 3 services units. In next four stages there will be nearly 3,000 flats and
over 70 thousand m2 of commercial area.
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The most significant events in Q1 2013

The postponement of bonds maturity date with a total value of PLN 200.7 million.

The Company successfully carried out the issue of new bonds with a value of PLN 105.7 million with a maturity
date falling in January 2016. The funds obtained from the issuance were spent on the purchase of substantial
majority of bonds issued in June 2010 in a total amount of PLN 130 million, of which redemption would fall in
June this year.
Also, negotiations with bondholders regarding extending maturity bonds date issued in April 2012 in the
amount of PLN 95 million which were dedicated to cover a part of the price for the land purchased by the
company at Kasprzaka Street, Warsaw were successfully completed. Due to successful negotiations, the original
maturity date falling in April 2015 was extended to January 2016.

 Repayment of PLN 26.7 million arising from loans.
 Making funds available in the amonut of PLN 25.2 million within obtained loans, among other
dedicated to co-finance the investment of "Oaza Piątkowo" in Poznań and to refinance units built
within the investment of "Lewandów II".
4
The most significant events in Q1 2013
The most important marketing events in Q1 2013:
Polish Exclusive 2013 award given to Czarny Potok Hotel Resort & SPA - Krynica Zdrój
4-star hotel of Czarny Potok Resort & Spa in Krynica Zdórj was awarded the Polish Exclusive 2013 in the category of Polish
Exclusive Brand. The complex was awarded for its high quality and exclusive character of services.
 Signing of the agreement under which J. W. Construction Holding S.A has become a Partner of the first edition
of "Bitwa o dom" broadcast on TVN. Shooting takes place in the community of Villa Campina which belongs to
the Company.
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NEGATIVE
 Developer Act - a serious obstacle in the scope of financing developers and opening
escrow accounts for investments
 No government program to support housing demand
 Waiting for the program called "Flat for the Young" slows down the housing
property market
 Still restrictive banks' policy in the scope of granting mortgage loans, despite some
announcements made by the PFSA on easing borrowing conditions.
 Great demand for flats on the primary market
POSITIVE
Factors
influencing
the Company's
activity inactivity
Q1 2013
External
factors
influencing
the Company's
 A further reduction in interest rates by the MPC, what translates into a decrease in
financial costs for developers and mortgage rates
 Preparation of new government solutions along with bridge programs (including
the draft amendments of a law on the protection of the rights of tenants, which
would facilitate construction of new buildings for rent)
 Ready flats in the Company's offer in the biggest cities in Poland
 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
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Sales of flats in Q1 2013
2012
206
2013
189
58
68
66
80
76
47
January
February
March
TOTAL Q1
 J.W. Construction Holding S.A sold 189 units in Q1 2013*
 Despite the lack of "Family on its own" program, the sales results in Q1 2013 are similar to the
comparable y/y
* Data on sales include sales of "Oxygen" investment (17 premises in 2013 and 22 premises in 2012)
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Selected consolidated financial data for Q1 2013
Selected financial data
Q1 2012
Q1 2013
Change Q/Q
Revenues on sales
PLN 46.5 mil
PLN 85.9 mil
+85%
Gross profit on sales
PLN 13.0 mil
PLN 18.0 mil
+38%
Gross margin on sales
28%
21%
- 7 p.p.
Operating profit
PLN 11.0 mil
PLN 14.7 mil
34%
Net profit
PLN 2.5 mil
PLN 4.3 mil
72%
 Increase in revenues from sales in Q1 2013 by 85% y/y
 Increase in net profit in Q1 2013 by 72 % y/y
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Gross margin on sales vs gross profit on sales
45
30,6%
40
28,9%
In PLN mil
35
30
30%
20,1%
19,1%
25
20
28,0%
26,9%
35%
28,2%
21,0%
20%
13,8%
15%
38,4
15
25%
30,7
26,9
10
19,2
16,9
10%
18
13
5
29
7,7
5%
0%
0
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Gross profit on sales
Q2 2012
Q3 2012
Q4 2012
Gross margin on sales
 Gross margins on sales in the long term are maintained at a level of above 20%.
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Q1 2013
Implementation of the gross profit from sales in Q1 2013
 The level of gross profit earned on sales for Q1 2013 is PLN 18 mil. The percentage of developer
projects recognized in profit from sales:
4%
2% 1% 1%
5%
Światowida (45 units)
28%
Zielona Dolina I (61 units)
8%
Lewandów bud. 3-6 (40 units)
Łódź Tymienieckiego II (26 units)
9%
Lewandów II (18 units)
Górczewska Park (22 units)
Lewandów I (11 units)
23%
19%
Units recognized in results
Q1 2012 vs Q1 2013:
84
244
Q1 2012
Q1 2013
10
Premises (in units) in an offer to recognize in results
of subsequent quarters
Bursztynowe Osiedle
6
Other
17
Lewandów I
30
Górczewska Park
34
Lewandów build. 3 - 6
42
Rezydencja Redłowo
52
Lewandów II
88
Łódź Tymienieckiego II
97
Światowida
97
Oaza Piątkowo
183
Villa Campina - b.blocks
278
Zielona Dolina I
Total:
503
1427
330
Units sold - not
commissioned
11
Investments implemented in Q1 2013
 In Q1 2013, the Company implemented 1,302 units within housing investment with a total
area of 71,685 m2 and 36,328 m2 of floor space within commercial investment ("zero" level)
Housing
investments
Project's name
Number of units
Rezydencja Redłowo, Gdynia
Pending investments housing
Final occupancy
permits
52
3,259
Oaza Piątkowo, Poznań
183
9,423
Oxygen investment*, Warsaw
287
20,868
Zielona Dolina I, Warsaw
596
27,722
Osiedle Światowida, Warsaw
184
10,413
1,302
71,685
TOTAL
Commercial
investments
Pending investments commercial
UFS (m2)
Project's name
Hanza Tower - Szczecin
Project's
advancement
"zero" stage done
* The investment is implemented within General Contracting by the Company of JWC Sp. z o.o.
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US (m2)
36,328
Investments planned to start
 During the next 2 years, the Company, on a basis of an owned land bank, plans to start the
implementation of nearly 6,100 units:
Investments in Warsaw and vicinity
Investment
Warsaw, at Kasprzaka Street,
Stage II
Warsaw, Zielona Dolina II
Warsaw, at Kasprzaka Street,
Stage V
Warsaw, at Kasprzaka Street,
Stage III
Warsaw, at Kasprzaka Street,
Stage IV
Warsaw, at Berensona Street
Warsaw, at Antoniewska Street
Warsaw, at Kasprzaka Street,
Stage I
Warsaw, Aluzyjna II
Warsaw, Odkryta II
Number
of units
Investments beyond Warsaw
UFS
965
41,725 m2
864
38,258 m2
765
33,270 m2
564
24,538 m2
558
24,258 m2
263
11,663 m2
234
13,864 m2
156
7,550 m2
68
4,080 m2
82
4,158 m2
Investment
Katowice, at Tysiąclecia Street,
Stage II
Katowice, at Tysiąclecia Street,
Stage I
Katowice, at Bałtycka Street
Gdynia, at Spokojna Street,
Stage II
Gdynia, at Spokojna Street,
Stage I
Łódź, at Tymienieckiego Street
III
Gdynia, at Sochaczewska Street
Total:
Warsaw, at Aluzyjna I
30
1,800 m2
*Investments which are planned to start in 2013 are in green colour
Total:
4,526
204,839 m2
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Number
of units
UFS
536
25,411 m2
149
7,040 m2
259
14,467 m2
236
13,614 m2
196
11,306 m2
108
5,165 m2
51
3,600 m2
1,535
80,603 m2
THE MOST IMPORTANT STRATEGIC GOALS
The strategy for next years
Launching of the nearly 6,100 units over the next two years, including more than
2,100 premises by the end of 2013
Continuing the reduction of fixed costs, including overhead costs, through an
internal reorganization of the Company
To intensify works related to the preparation of project documentation and
obtaining building permits, particularly those which are planned to launch in 2013
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
Limitation and postponement of the commercial projects' implementation
 Selective acquisition of new locations and reducing the scale of construction
land bank
 Active actions toward non-performing assets
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9,0
8,0
7,0
6,0
5,0
4,0
3,0
2,0
1,0
0,0
800
731 *
700
**
627
600
447
***
500
400
8,16
300
6,79
5,26
200
100
0
Q1 2012
Q1 2011
general overhead costs
Including employment in hotels:
* 92 people
** 99 people
*** 140 people
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Q1 2013
employment
Number of people
PLN mil.
Overhead costs vs employment
Marketing
andplanned
sales policy
in Q1
2013
Selected
projects
to start
in 2013:
Osiedle Millenium

Concentration of strategic marketing and advertising activities in the field of Internet
marketing

Extension of activities with an additional area of communication with the Customer
- nationwide television (TVN - Bitwa o Dom) within the support of the Company's property
sales and PR activities

Campaigns targeting the sale of turnkey apartments in Warsaw, Ożarów Mazowiecki and Łódź

Promotion of investments in Poznan and Gdynia which were launched to sales in 2012

Continuation of the marketing and sales program under the banner of "Life Elevated"
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Marketing
andplanned
sales policy
in Q1
2013
Selected
projects
to start
in 2013:
Osiedle Millenium

Attractive housing offer, including turnkey premises with a possibility of full furnishing

Premium products - Villa Campina - single family houses and Oxygen Apartments

Individual approach to the customer – the possibility of negotiating the prices depending on
the payment amount and schedule

Professional and free of charge credit counselling

Long-term cooperation with banks– the best offer of credits on the market of mortgages only
for the Company’s customers.

Interior design programs for Clients available at the Interior Design Development Center

Contest of tenders made by Customers

Special offer for Customers on the occasion of the Company's participation in the fair trade
and during the organization of open days of communities
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Selected projects implemented in Q1 2013:
Rezydencja Redłowo
Project
Rezydencja Redłowo
Location:
Gdynia
Number of flats:
52
UFS (m2)
3,259
Project's net value (in PLN
mil.)
c.a 32
Description:
source: google.maps.pl
- modern housing in a cosy and low-rise development
- functional and perfected floor-plans of apartments with an
area from 38 to 96 2
- the community is fully fenced and monitored
- excellent location, close to Kępa Redłowska reservation
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Selected projects planned to start in 2013:
Bliska Wola
Project
Bliska Wola
Location:
Number of flats:
UFS (m2)
Wola, Warsaw
156 in the 1st stage, 942 in the
2nd stage
(ultimately, the investment will have around
3,000 premises)
Stage 1: 7,550, Stage 2 41.454
Services-retailoffices (m2)
Target: over 70,000
Project's net value
(in PLN mil.)
about 53 for Stage 1
about 298 for Stage 2
source: google.maps.pl
Description:
- good location - just 3 km to the city centre
- very well developed communication infrastructure - the
subway station from 2014
- an interesting, modern architecture of buildings
- attractive flats prices
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Selected
Selectedprojects
projects planned
plannedto
tostart
start in
in2013:
2013:
Osiedle
OsiedleMillenium
Millenium
Project
Osiedle Millenium
Location:
Katowice, Osiedle Tysiąclecia
Number of flats:
149 in the 1st stage
(target number of units in the
investment: 685)
UFS (in m2)
Stage 1: 7,040
Project's net value (in
PLN mil.)
c.a 35
Description:
source: google.maps.pl
- excellent location - 5 minute drive to the city centre
(access by a new intercity road)
- well developed communication infrastructure
- the proximity of green and recreation areas (including the
largest theme park in Poland, the largestand oldest
planetarium in Poland, rope courses)
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Thank you for your attention
INVESTOR RELATIONS:
Małgorzata Szwarc-Sroka
Economy Division
and Investor Relations Office HeadDirector of Economic and Director of Investor Relations of J.W
Construction Holding S.A.
Member of Management Board of J.W Construction Sp. z o.o.
phone: 22 771 77 85
e-mail.: [email protected]
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