meeting agenda 2 contents the most significant events in q1 20133 factors influencing the...
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Meeting agenda
2
Contents
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
The most significant events in Q1 2013
3
Obtaining a permit for the use of the following investments ;
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.
Investment factsOsiedle Światowida, Warsaw-Tarchomin
Zielona Dolina I,Warsaw- Białołęka
Number of units: 166 flats
18 commercial units589 flats
7 commercial units
Units sold as at 31/03/2013
151 flats18 commercial units
180 flats4 commercial units
The most significant events in Q1 2013
4
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".
The most significant events in Q1 2013
5
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.
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.
External factors influencing the Company's activityFactors influencing the Company's activity in Q1 2013
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
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
6
58 6880
206
4766 76
189
January February March TOTAL Q1
2012 2013
7
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
Sales of flats in Q1 2013
* Data on sales include sales of "Oxygen" investment (17 premises in 2013 and 22 premises in 2012)
8
Selected consolidated financial data for Q1 2013
Increase in revenues from sales in Q1 2013 by 85% y/y
Increase in net profit in Q1 2013 by 72 % y/y
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%
9
Gross margin on sales vs gross profit on sales
38,4
26,919,2 16,9
13
30,7
7,7
29
18
30,6%28,9%
26,9%
19,1%
28,0%28,2%
13,8%
20,1% 21,0%
0
5
10
15
20
25
30
35
40
45
0%
5%
10%
15%
20%
25%
30%
35%
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Gross profit on sales Gross margin on sales
Gross margins on sales in the long term are maintained at a level of above 20%.
10
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:
28%
23%19%
9%
8%
5%4% 2%1% 1%
Światowida (45 units)
Zielona Dolina I (61 units)
Lewandów bud. 3-6 (40 units)
Łódź Tymienieckiego II (26 units)
Lewandów II (18 units)
Górczewska Park (22 units)
Lewandów I (11 units)
84 244
Q1 2012 Q1 2013
Units recognized in results Q1 2012 vs Q1 2013:
11
1427
503
278
183
97
97
88
52
42
34
30
17
6
Total:
Zielona Dolina I
Villa Campina - b.blocks
Oaza Piątkowo
Światowida
Łódź Tymienieckiego II
Lewandów II
Rezydencja Redłowo
Lewandów build. 3 - 6
Górczewska Park
Lewandów I
Other
Bursztynowe Osiedle
Premises (in units) in an offer to recognize in results of subsequent quarters
Units sold - not commissioned
330
Commercial investments Project's name Project's
advancement US (m2)
Pending investments - commercial Hanza Tower - Szczecin "zero" stage done 36,328
12
Investments implemented in Q1 2013
Housing investments Project's name Number of units UFS (m2)
Pending investments - housing
Rezydencja Redłowo, Gdynia 52 3,259
Oaza Piątkowo, Poznań 183 9,423
Oxygen investment*, Warsaw 287 20,868
Final occupancy permits
Zielona Dolina I, Warsaw 596 27,722
Osiedle Światowida, Warsaw 184 10,413
TOTAL 1,302 71,685
* The investment is implemented within General Contracting by the Company of JWC Sp. z o.o.
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)
13
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 Investments beyond Warsaw
*Investments which are planned to start in 2013 are in green colour
Investment Numberof units UFS
Katowice, at Tysiąclecia Street, Stage II 536 25,411 m2
Katowice, at Tysiąclecia Street, Stage I 149 7,040 m2
Katowice, at Bałtycka Street 259 14,467 m2 Gdynia, at Spokojna Street, Stage II 236 13,614 m2
Gdynia, at Spokojna Street, Stage I 196 11,306 m2
Łódź, at Tymienieckiego Street III 108 5,165 m2
Gdynia, at Sochaczewska Street 51 3,600 m2
Total: 1,535 80,603 m2
Investment Numberof units UFS
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
Warsaw, at Kasprzaka Street, Stage III 564 24,538 m2
Warsaw, at Kasprzaka Street, Stage IV 558 24,258 m2
Warsaw, at Berensona Street 263 11,663 m2
Warsaw, at Antoniewska Street 234 13,864 m2Warsaw, at Kasprzaka Street, Stage I 156 7,550 m2
Warsaw, Aluzyjna II 68 4,080 m2
Warsaw, Odkryta II 82 4,158 m2
Warsaw, at Aluzyjna I 30 1,800 m2
Total: 4,526 204,839 m2
The strategy for next years
14
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
15
Overhead costs vs employment
8,166,79
5,26
731
627
447
0
100
200
300
400
500
600
700
800
0,01,02,03,04,05,06,07,08,09,0
Q1 2011 Q1 2012 Q1 2013
general overhead costs employment
PLN
mil.
Num
ber of people
*
**
***
Including employment in hotels:* 92 people** 99 people*** 140 people
16
Selected projects planned to start in 2013:Osiedle Millenium
Marketing and sales policy in Q1 2013
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"
17
Selected projects planned to start in 2013:Osiedle Millenium
Marketing and sales policy in Q1 2013
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
18
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:
- 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
source: google.maps.pl
Project Bliska Wola
Location: Wola, Warsaw
Number of flats:
156 in the 1st stage, 942 in the 2nd stage
(ultimately, the investment will have around 3,000 premises)
UFS (m2) Stage 1: 7,550, Stage 2 41.454
Services-retail-offices (m2) Target: over 70,000
Project's net value (in PLN mil.)
about 53 for Stage 1about 298 for Stage 2
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
19
Selected projects planned to start in 2013:Bliska Wola
source: google.maps.pl
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:
- 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)
20
Selected projects planned to start in 2013:Osiedle Millenium
Selected projects planned to start in 2013:Osiedle Millenium
source: google.maps.pl
21
INVESTOR RELATIONS:
Małgorzata Szwarc-SrokaEconomy 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 85e-mail.: [email protected]
Thank you for your attention