presentation q3 2015
TRANSCRIPT
Dom Development S.A.
Q3 2015 Results Presentation 23 October 2015
Presentation Plan
2
Highlights 3 Residential Market Overview 4 Operations: Quarterly Net Sales 5 Dom’s Offer 6 New Construction Starts 7 Units Under Construction and in Preparation 8 Handovers 9 Finance: Profit & Loss Account 10 Balance Sheet 11 Interest-Bearing Debt – Maturity Dates 12 Summary 13 Appendices Appendix 1: Commencement of Handovers in 2015 15 Appendix 2: Dom’s Projects Under Construction and in Land Bank 16-17
Enjoying a strong market
• Record quarterly sales – 640 units net in Q3 2015 (+26% YoY)
• Successful launch of two large projects – Premium and Moderna,
with over 1,600 units
• Two new sites, of over 1,000 units, at the final stage of purchase
• Safe cash levels (PLN 310m) and low gearing of 7%
3
Highlights
• Record sales with stable prices
• Supply and demand still in balance
• Record-low interest rates drive demand
• Strong demand across all primary market segments with high
proportion of cash buyers
• Homes for the Young support for Warsaw market
4
Residential Market in Q3 2015
5
399427
479
407
483509
545
467
598640
0
100
200
300
400
500
600
700
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
Quarterly Net Sales
No. of units
Dom’s Offer
6
1 679 1 288
2 163 2 268 2 022
2 292 2 364 2 397
261
473
391 334
312
212 294 357
-
500
1 000
1 500
2 000
2 500
31/12/2013 1 940
31/03/2014 1 761
30/06/2014 2 554
30/09/2014 2 602
31/12/2014 2 334
31/03/2015 2 504
30/06/2015 2 658
30/09/2015 2 754
Units under construction Units on finished projects
No. of units
New Construction Starts
7
728
297
1 055
345263
637
752 735
0
200
400
600
800
1 000
1 200
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
2 projects 2 projects 4 projects 4 projects 4 projects 7 projects 1 project 3 projects
No. of units
Units Under Construction and in Preparation
2 601 3 259 3 242 2 927
3 564 3 727 3 989
6 349
5 278 4 937 4 672
6 276 5 762
5 001
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
31/03/2014 30/06/2014 30/09/2014 31/12/2014 31/03/2015 30/06/2015 30/09/2015
Under Construction In preparation
8
No. of units
Handovers
9
Units sold but not delivered
30.06.2015 30.09.2015
1 607 units
1 769 units, including:
• 177 units on finished projects • 1 592 units under construction
508 520457
383
636
190
375
478
0
100
200
300
400
500
600
700
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
No. of units
Financial Results
Q3 2015 Q3 2014 Change Q1-Q3 2015
Q1-Q3 2014
Change
Sales Revenues 193.9 159.9 21.3% 424.2 521.5 (18.7)%
Revenue per 1 Unit Delivered (PLNk) 405.7 417.5 (2.8)% 406.7 383.5 6.1%
Gross Profit on Sales 37.4 40.2 (6.9)% 93.8 93.8 0.0%
Gross Profit Margin 19.3% 25.1% (5.8) pp 22.1% 18.0% 4.1 pp
EBITDA 14.4 21.1 (32.0)% 23.9 34.4 (30.6)%
EBITDA Margin 7.4% 13.2% (5.8) pp 5.6% 6.6% (1.0) pp
Net Profit 9.5 15.3 (37.5)% 14.7 26.2 (44.0)%
EPS (PLN) 0.39 0.62 (37.5)% 0.59 1.06 (44.0)%
10 IAS 18, PLN m
Maintaining Strong Balance Sheet
11
Consolidated Balance Sheet IAS 18, PLN m 30.09.2015 30.09.2014 Change
Cash 309.9 342.7 (9.6)%
Work in Progress 1,329.3 1,058.8 25.5%
Units sold and not delivered 1,769 1,198 47.7%
Net Debt 60.1 71.3 (15.7)%
Equity 817.2 828.5 (1.4)%
Gearing (Net Debt/Equity) 7.4% 8.6% (1.2) pp
Net Assets per Share (PLN) 32.99 33.45 (1.4)%
Comfortable Debt Maturity Structure
12
0
120
50
100
50
50
0
20
40
60
80
100
120
140
160
180
by 30.09.2016 by 30.09.2017 by 30.09.2018 by 30.09.2019 by 30.09.2020
Unsecured bonds Bank loans
PLN m
Cash as of 30/09/2015 – PLN 310m
Q1-Q3 2015
13
Summary:
Seven plots (approx. 2,600 units in total) added to Warsaw land bank, including approx.
1,900 units on the left-bank of the Vistula
Five left-bank locations added to offer
3,989 units under construction across 15 projects
2,754 units in our offer at the end of Q3 2015 in 14 locations in Warsaw and 3 in Wroclaw
Homes for the Young: approx. 30% of Dom’s offer was eligible for the programme
as at the end of Q3 2015
Financial firepower for land purchases and new project starts – PLN 310m in cash
and 7% gearing
Net profit of PLN 9.5m in Q3 2015, giving PLN 14.7m net profit for Q1-Q3 2015
Appendices
15
Project No. of units in
project Commencement of
handovers
Q2
Oaza ph 3 (Wrocław) 234 June 2015
Saska Apartamenty n. Jeziorem ph 1 172 June 2015
Wilno II ph 1 183 June 2015
Q3
Palladium ph 2 245 July 2015
Żoliborz Artystyczny ph 3 228 August 2015
Q4
Aura 1a (Wrocław) 124 October 2015
Wilno 2a ph 2 156 October 2015
Willa Lindego 129 October 2015
Saska Apartamenty n. Jeziorem ph 2 240 November 2015
Osiedle Pod Różami 110 November 2015
Żoliborz Artystyczny ph 4 225 November 2015
Rezydencja Mokotów 142 December 2015
Al. Piastów (Wrocław) 177 December 2015
Appendix 1:
Commencement of handovers in 2015
16
Appendix 2:
Projects Under Construction and in Preparation no. of units, as of 30/09/2015
PROJECT UNDER
CONSTRUCTION IN PREPARATION
WILLA LINDEGO 129 ---
PREMIUM (PEŁCZYŃSKIEGO)
213 708
ŻOLIBORZ ARTYSTYCZNY 605 403
OSIEDLE PRZYJACIÓŁ 205 101
WILLE LAZUROWA 166 ---
REZYDENCJA MOKOTÓW 142 ---
OSIEDLE POD RÓŻAMI 110 ---
NOWOSOLIPSOWSKA --- 114
STUDIO MOKOTÓW (GARAŻOWA)
329 ---
DOM POD ZEGAREM (BUKOWIŃSKA)
235 ---
BUKOWIŃSKA NAD SKARPĄ
--- 211
BUKOWIŃSKA III --- 181
ANODY --- 207
TOTAL LEFT BANK
2 134 1 925
PROJECT UNDER
CONSTRUCTION IN PREPARATION
REGATY --- 217
PALLADIUM (AKACJE) --- 780
KLASYKÓW 235 204
MODERNA (MALBORSKA)
171 593
WILNO 608 744
APARTAMENTY SASKA NAD JEZIOREM
476 ---
SASKA III --- 383
TOTAL RIGHT BANK
1 490 2 921
Warsaw
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION
17
TOTAL UNDER
CONSTRUCTION IN PREPARATION FINISHED
WARSAW 3 624 4 846 22 812
WROCLAW 365 155 480
DOM 3 989 5 001 23 292
PROJECT UNDER
CONSTRUCTION IN PREPARATION
AL. PIASTÓW 177 ----
AURA 188 155
WROCLAW 365 155
Wroclaw
Appendix 2, p.2:
Projects Under Construction and in Preparation no. of units, as of 30/09/2015
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION
Dom Development S.A. endeavours to ensure that the information in the presentation is complete. up-to-date and accurate. However. we do not make any guarantees in this respect. Dom Development S.A. connot accept responsibilty for the consequences of using such information. and in particular any loss caused by reliance thereon for the purpose of investment decisions. The material contained in the presentation originates from reliable public sources and to the best knowledge of Dom Development S.A. may be considered reliable.
18
For further information, please contact: Magdalena Kempa Investor Relations Specialist
tel. +48 22 351 68 49 e-mail: [email protected] www.inwestor.domdevelopment.com.pl