PRESENTATION OF RESULTS FOR THE FIRST half OF 2013
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2013-06-26
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PRESENTATION OF RESULTS
FOR THE FIRST half OF 2013
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Table of contents
The most important events in the first half of 2013
Factors that affect the the activity of the Company in the first half of 2013
Sale of flats in the first half of 2013
Chosen consolidated financial data for the first half of 2013
Chosen consolidated financial data for Q2 2013
Margin in gross from the sale vs gross profit from sale
Realization of the gross profit from sale in the first half of 2013
Administration costs vs employment
Premises in the offer to be recognized in the result in further quarters
Investments realized in the first half of 2013
Investments planned to launch
Strategy for next years
The most important marketing events in the first half of 2013
Marketing and sale policy in the first half of 2013
Designs planned to launch in 2013
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The most important events in the first half of 2013
Obtained permissions for the use of the following investments:
Obtained construction permits for the first stage of the Investment: Bliska Wola - Warszawa, building permits for I stage of Bliska Wola Investment – Warszawa, Kasprzaka street - 156 premises.Postponent of payment terms of the bonds with a total value of PLN 200,7 mln:
The company has successfully carried out the issue of new bonds worth PLN 105.7 millions with maturing in January 2016. For the means from the issuance, JWCH purchased significant majority of the bonds issued in June 2010 in the total amount of PLN 130 millions for which the maturity would have taken place in June this year
Company also completed successfuly the negotiations with bondholders concerning the prolongation of bonds maturity date for bonds issued in April 2012 in the amount of PLN 95 mln dedicated to the cover of the part of price for the purchased plot at Kasprzata street in Warsaw. Thanks to this, the original maturity date falling in April 2015 has been extended to January 2016.
Total bonds redemption in the amount of 24.3 mln PLN.
Data on the investment
Światowida housing
development, Warszawa-Tarchomin
Zielona Dolina I, Warszawa-Białołęka
Number of premises:
166 apartments18 business
premises
589 apartments 7 business premises
Premises sold until: June 30, 2013:
160 apartments18 business
premises
222 apartments 5 business premises
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The most important events in the first half of 2013
Getting a loan and opening the closed escrow account for SPV-Seahouse Sp. z o.o. realizing an investment of Redłowo Residence in Gdynia in accordance with the provisions of the new development law.
Ending of the I edition of „Struggle for home” program, realized on Villa Campina housing development and broadcasted in TVN, where J.W. Construction Holding S.A. was a Partner.
Ending of the first external contract of J.W.C. Sp. z o.o. – the construction of Oxygen apartment building ( 45 Wronia street).
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Factors that affect the the activity of the Company in the first half of 2013
Thanks to the further reduction in interest rates, for the first time in history, PLN mortgage loans interest rates fell below 4%.
The revival on the mortgage loans market (increase in the number of credit agreements in the Q2 2013 by 6% in comparison to Q1 2013).
Announcement of the program: "Flats for youth" and "Fund of flats for rent".
Bigger interest in flats purchase for investment purposes.
Finished flats in Company offer in the segment of popular flats.Change of the investment realization strategy - high flexibility of the organizational structures in relation to the market needs (General Contracting system).
Large competition on the market of contracting companies - building costs decrease.
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Factors that affect the the activity of the Company in the first half of 2013
Development law which makes it more difficult to among others fund new investments. Financial institutions are not prepared to co-finance designs in the light of new regulations.
Hold of development branch funding by some banks. Lack of government program to support demand for flats in 2013.
Ending the "Family's Own Place" program resulted in some purchasers return to the secondary market.
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Sales of flats in the first half of 2013
J.W. Construction Holding S.A., in Q2 2013 sold 205 premises.In spite of no government support for developers, the sale has increased in Q2 by 45,4 % in comparison to the analogous period in the previous year
* Data on sales include sales of "Oxygen” investment (34 premises in 2013 and 30 premises in 2012)
58 68 8059 42 40
347
47 66 76 71 67 67
394
January February March April May June TOTAL FOR THE FIRST 6 MONTHS*
2012 2013
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Chosen consolidated financial data for the first half of 2013
Increase of profit from sale in the first half of 2013 by 17% in comparison to analogous period in previous year.
Decrease of net profit in the first half of 2013 by 40% in comparison to analogous period in previous year.
Chosen financial dataFirst half of
2012First half of
2013Change half
to half
profit from sale PLN 155.4 mln PLN 181.3 mln +17%
Gross profit from sale PLN 43.6 mln PLN 38.7 mln - 11%
Gross margin on sale 28% 21% - 7 p.p.
Proft on operating activities PLN 40.2 mln PLN 24.3 mln - 39%
Net profit PLN 8.6 mln PLN 5.1 mln - 40%
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Chosen consolidated financial data for the second quarter of 2013
Decrease of profit from sale in the second quarter od 2013 by 12% in comparison to the analogous period in the previous year
Decrease of net profit in the second quarter of 2013 by 86% in comparison to analogous period in the previous year.
Chosen financial dataThe second quarter of
2012
The second quarter of
2013
Change quarter to
quarter
profit from sale PLN 108.9 mln PLN 95.5 mln -12%
Gross profit from sale PLN 30.7 mln PLN 20.6 mln -33%
Gross margin on sale 28% 22% -6p.p.
Proft from operating activities PLN 29.2 mln PLN 9.6 mln -67%
Net profit PLN 6.1 mln PLN 0.8 mln -86%
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Pre-tax sales profit vs Pre-tax sales marging
Margin in gross on sale within the long period of time is maintained at the level above 20%.
26,919,2 16,9
13
30,7
7,7
29
18 20,6
28,9%26,9%
19,1%
28,0%28,2%
13,8%
20,1%
21,0% 21,6%
0
5
10
15
20
25
30
35
0%
5%
10%
15%
20%
25%
30%
35%
2011, 2nd quarter
2011, 3rd quarter
2011, 4th quarter
2012, 1st quarter
2012, 2nd quarter
2012, 3rd quarter
2012, 4th quarter
2013, 1st quarter
2013, 2nd quarter
Pre-tax sales profit Pre-tax sales margin
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Realization of the gross profit from sale in the first half of 2013
Units recognized in the result of I half of 2012 vs. I half of 2013
The level of gross profit earned from sales for the first half of 2013 is PLN 38.7 mil. Percentage of developer designs recognized in profit from sales:
215
489
2012, first half-year 2013, first half-year
24%
36%12%
6%
7%
8% 2% 3% 1% 1%Zielona Dolina I (140 units)
Światowida (107 units)
Lewandów bud. 3-6 (52 units)
Górczewska Park (47 units)
Łódź Tymienieckiego II (39 units)
Lewandów II (35 units)
Villa Campina - bloki (35 units)
Lewandów I (17 units)
Bursztynowe Osiedle (12 units)
Others (5 units)
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Overheads vs employment
Including employment in hotels:
* 91 people
** 131 people
*** 144 people
Nu
mb
er o
f peop
le
416
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Premises (in pieces) in the offer to be recognized in the result of further quarters
1183
424
253
183
85
71
52
35
30
24
17
9
TOTAL
ZIELONA DOLINA I
VILLA CAMPINA - BLOCKS
OAZA PIĄTKOWO
ŁÓDŹ TYMIENIECKIEGO II
LEWANDÓW II
REZYDENCJA REDŁOWO
ŚWIATOWIDA
LEWANDÓW I BLOCKS 3-6
LEWANDÓW I
OTHERS
GÓRCZEWSKA PARK
sold premises Not
transferred
230
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Investments realized in the first half of 2013
Commercial investments
Name of the designProgress of the design
Useable area (sq.
m.)
Realized - commercial
Hanza Tower - Szczecin"zero" condition
realized36 328
In the first half of 2013, a total of 1.304 premises with a total surface of 72.039 m2 and 36.328 m2 of useful surface on the commercial investment (at the "zero" level) were realized in residential investments
Residential investments
Name of the designNumber of premises
Useable area (sq.
m.)
Realized - residential
Redłowo Residence, Gdynia 52 3 259
Piątkowo Oasis, Poznań 183 9 423
„Oxygen” Investment Warszawa* 287 20 868
Villa Campina Ożarów houses 2 354
Permission to use validation
Zielona Dolina I, Warszawa 596 27 722
Światowida housing development, Warszawa
184 10 413
IN TOTAL 1 304 72 039
* The investment is realized within the frames of General Contracting by JWC Sp. z o.o. company.
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Investments in Warsaw and in the vicinity
Investment
Number of
premises
PUM
Warszawa, Kasprzaka street, stage II
94442,213
m2
Warszawa, Zielona Dolina II 86538,258
m2
Warszawa, Kasprzaka street, stage V
76533,270
m2
Warszawa, Kasprzaka street, stage III
48221,155
m2
Warszawa, Kasprzaka street, stage IV
55824,258
m2
Warszawa, Berensona street
26311,874
m2
Warszawa, Antoniewska street
23413,864
m2
Warszawa, Kasprzaka street, stage I(the construction has been already started)
1567,550
m2
Investments planned to launch according to the condition on the 30th of June 2013
During two years, on the basis of the land bank, the Copany is planning to launch the realization of more than 6.000 premises:
Red color was used to mark designs that are planned to be launched in 2013
InvestmentNumber
of premises
PUM
Warszawa, Aluzyjna II 68 4 080 m2
Warszawa, Odkryta II 82 4 158 m2
Warszawa, Aluzyjna street I 30 1,800 m2
Warszawa Osada Wiślana 21 1,024 m2
Zielona Dolina III 44 2,256 m2
Nowodworska - Houses 16 1,400 m2
Warszawa – Mikołaja Trąby 18 1,440 m2
Villa Campina (Ożarów – houses)
101,870
m2
In totalNumber of premises
4 556Useable area210 470 m2
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Investments beyond Warsaw
Investments planned to be launch
InvestmentNumber of premises
PUM
Katowice, Tysiąclecia street stage II 488 23,805 m2
Katowice, Tysiąclecia street, stage I 149 7,085 m2
Katowice, Bałtycka street 236 14,467 m2
Gdynia, Spokojna street, stage II 236 13,614 m2
Gdynia, Spokojna street, stage I 196 11,306 m2
Łódź, Tymienieckiego street III 108 5,072 m2
Gdynia, Sochaczewska street 51 3,600 m2
In total: 1 464 78,949 m2
Red color was used to mark designs that are planned to be launched in 2013
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Strategy for next years
Strategic goals
Intensification of works related to the preparation of detailed design
documentation and obtaining building permit
Strenghtening the leadership among developers, both in Warsaw and within
the whole country
Implementation of innovative sales solutions onto the
market
Activity concentration on the segment of residential investments
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The most important marketing events in the first half of 2013
Distinction of Hotel Czarny Potok Resort & SPA an emblem of Polish Exclusive 2013.
Introducing to the offer a new program of interiors decor: „Premium”, available in four versions: "White", "Black", "Cappucino" and "Orange".
Achieving sales and image effects thanks to the participation in the I edition of „Struggle for home” as a basis to continue the cooperation:
In August 2013, the second edition of „Struggle for home” was started with the participation of J.W. Construction Holding S.A. This time, within the frames of the program, pictures are realized in the Zielona Dolina investment.
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Marketing and sale policy in the first half of 2013
Focusing the marketing and adevertising strategic actions on the internet marketing field.Leading campaigns directed on the sale of premises that are fully ready to be occupied in Warszawa, Ożarów Mazowiecki and Łódź.Continuation of sponsoring action, directed to the promotion of Company investment and strenghtening its image – concluding agreement concerning the realization of TVN’s program – „Struggle for home” in Zielona Dolina investment.
• Preparation to lead the Oxygen Residence program for Oxygen investment. Oxygen Residence service makes it possible to use the complex program of rent management. This is a proposal for investors and the added value for apartment building occupants - possibility to use premium services, as for example concierge.
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DesignWarszawa,
Berensona street
LocationWarszawa,
Berensona street
Number of flats 263
Useable area (in sq. m.) 11 874
Design net value (in mln of PLN)
66
Characteristics
the design covers 12 facilities low, prestige developmentLocalization on Białołęka – the most resiliently developing district in WarsawSafe playground within the area of housing developmentProximity of agglomeration conveniences: schools, kindergartens, shopping centresQuick commute to the city centre
Designs to launch in 2013:Warszawa, Berensona street
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DesignŁódź,
Tymienieckiego street
LocationŁódź,
Tymienieckiego street
Number of flats 108
Useable area(in sq. m.) 5 072
Design net value (in mln of PLN)
28
Characteristics
the design covers 3 facilities with max. 7 storeysprestige location in the historic area of Łódźwide scope of metric areas and room arrangementsEnclosed and supervised areaSafe playgrounds
Designs to launch in 2013:Łódź, Tymienieckiego street
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DesignGdynia, Spokojna
street
LocationGdynia, Spokojna
street
Number of flats I stage 196
Useable area (in sq. m.) I stage 11,306
Design net value (in mln of PLN)
65
Characteristics
attractive location - vicinity of Leśna and Spacerowa streetslow, cosy developmentWide scope of metric areas and rooms arrangementDesign of room arrangement allows for any arrangement of interiorProximity of beach and Trójmiejski Park Krajobrazowy
Designs to launch in 2013:Gdynia, Spokojna street, stage I
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Design Bliska Wola
Location Warszawa, Wola
Number of premises156 in I stage, 944 in II
stage(in prospect, the investment will
cover approximately 3000 premises)
Useable area (in sq. m.)I stage: 7 550, II stage 42 213
Service – trading – offices (in m2)
as a target - more than 70 000
Design net value(in mln of PLN)
approximately 53 for I stage,
approximately 298 for II stage
Characteristics
great location - only 3 km from the strict center of the cityvery well developed communication infrastructure – subway station since 2014Recreational area within the premises of housing developmentInteresting and modern buildings architectureCompetitive flats prices
Designs to launch in 2013: Bliska Wola, Stage I and II
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Design Nowe Tysiąclecie
Location Katowice
Number of flats I stage 149
Useable area (in sq. m.)
I stage 7,085
Design net value (in mln of PLN)
37
Characteristics
as a target the design should cover five 17-storey residential and office facilitiesModern architecture – numerous glazingsAttractive location allows for convenient and quich communication with city centreTerrain development includes numerous shrubs and treesWide scope of metric area selectionVicinity of green terrains including Park Śląski (the biggest city park in Europe)
Designs to launch in 2013: Nowe Tysiąclecie, Etap I
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Thank you for your attention
INVESTOR RELATIONS:
Małgorzata Szwarc-SrokaEconomy Division and Investor Relations Office Head
J.W. Construction Holding S.A.
Member of the Management Board of J.W. Construction Sp. z o.o.phone: 22 771 77 85
e-mail.: [email protected]