S t r i c t l y P r i v a t e & C o n f i d e n t i a l J.W. CONSTRUCTION HOLDING S.A. PRESENTATION...

S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

J.W. CONSTRUCTION HOLDING S.A. PRESENTATION

Q1 2008 RESULTS

J.W. CONSTRUCTION HOLDING S.A. PRESENTATION

Q1 2008 RESULTS

Press conference, 14 May 2008

S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Presentation Agenda

J.W. Construction Holding S.A. PRESENTATION – May 2008 2

Q1 2008 Results 3

Gross Sales Profit in Q1 2008 5

Q1 2008 Highlights 6

Important Developments after Q1 2008 8

Projected Profit to be Recognized in 2008 11

Projected Share of Selected Projects in Total Revenue in 2008 12

Strategy Implementation — Major Projects in 2008 13

Projects in Progress 24

Projects in the Sales Stage 25

Planned Projects 26

Industry Development Prospects in the Company’s View 29

S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Q1 2008 Results

Q1 2008 sales revenue - an increase by 12.5% (by PLN 13.3 million in absolute terms) compared to the same period of the previous year

Q1 2008 gross margin - an increase by 7.6 percentage points compared to the same period of the previous year

3

Sales revenue, PLN million:

119,6

106,3

95

100

105

110

115

120

125

Q1 2007 Q1 2008

Gross margin, %

32,8

25,2

0

5

10

15

20

25

30

35

Q1 2007 Q1 2008

J.W. Construction Holding S.A. PRESENTATION – May 2008

S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Q1 2008 Results

Q1 2008 operating profit — an increase by 54.2% (by PLN 9.7 million in absolute terms) compared to Q1 2007

Net profit — an increase by 70.5% (by PLN 7.9 million in absolute terms) compared to Q1 2007

4

Operating profit, PLN million:

27,6

17,9

0

5

10

15

20

25

30

Q1 2007 Q1 2008

Net profit, PLN million:

19,1

11,2

0

5

10

15

20

25

Q1 2007 Q1 2008


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Q1 2008 Gross Sales Profit

5

Górczewska Park, Warsaw, Górczewska/Olbrachta Streets - 27%

Rezydencja Quatro, Warsaw, Łukowska Street - 25%

Osiedle Lazurowa, Warsaw, Lazurowa Street - 20%

Osiedle Leśne, Gdynia, Parkowa Street - 10%

Osada Wiślana, Warsaw, Marcina z Wrocimowic Street - 8%

Aleja Ludwinowska, Warsaw, Ludwinowska Street - 7%

The total gross sales profit in Q1 2008 came to PLN 39.2 million. The following

projects contributed the most to this figure:

Other projects also contributed to the profits, including:

Osiedle Centrum, Łódź, Tymienieckiego Street

Victoria Park II, Kolomna, Russia


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Q1 2008 Highlights

6

Registration of the JWCH Budownictwo Drogowe Sp. z o. o. (limited liability company), which will engage in road construction activities

Registration of the JWCH Produkcja Budowlana Sp. z o. o. (limited liability company), which will manufacture prefabricated elements for construction purposes

Valid construction permit obtained for the Wiślana Aleja project at Odkryta Street in Warsaw

Construction permit for the Lewandów Park project - stage I became valid

Construction of the Lewandów Park project - stage I started


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

7

Q1 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

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

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


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

8

Important Developments after Q1 2008

Valid construction permit obtained for the Lewandów Park project - stage II

Valid construction permit obtained for the project in Ożarów Mazowiecki - stage I

Construction permit obtained for the Osiedle Bursztynowe project, the permit is not valid yet

Further land bank development - the J.W. Construction Bulgaria EOOD subsidiary with its registered office in Sofia purchased real estate in the Golden Sands resort in Bulgaria; a holiday apartment complex will be constructed there

A general contracting agreement signed with the PRUMSTAV DEVELOP POLAND Spółka z o. o. (limited liability company) with its registered office in Kłodzko which concerns the construction of 14 residential buildings within the framework of the Lewandów Park project - stage II


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

9


The company was included in the list of “100 Most Valuable Companies” compiled by the Newsweek Polska weekly and A.T. Kearney

J.W. Construction was included in the “500 Largest Polish Companies” list compiled by the Polityka weekly

The company was included in the “List of 500” which lists top Polish companies, compiled by the editors of the Rzeczpospolita daily

The company was nominated for the “Construction Master” award granted by the editors of the Home&Market monthly in the Best Building Contractor category

A “European Medal” for the services provided by the Hotel 500 chain awarded by the Polish Business Club within the framework of the 16th “European Medal for Services” competition


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

10


On 1 April 2008, an Extraordinary General Meeting of J.W. Construction Holding S.A. took place, during which Shareholders agreed to the transfer of three organized parts of the company to subsidiaries in the form of separate branches

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:

Further developments related to transformations within the J.W. Construction Holding S.A. Group

- 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”

Since 1 May 2008, the Group has been operating within the new framework.


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Projected Profit to be Recognized in 2008

11

Górczewska Park II, Warsaw, Górczewska/Olbrachta Streets - 32%

Osiedle Lewandów II, Warsaw, Lewandów Street - 13%

Osiedle Lazurowa, Warsaw, Lazurowa Street - 10%

Osiedle Leśne, Gdynia, Parkowa Street - 8%

Osada Wiślana, Warsaw, Marcina z Wrocimowic Street - 7%

Rezydencja Quatro, Warsaw, Łukowska Street - 5%

The projected 2008 gross sales profit level is PLN 345.8 million. The following

projects will contribute the most to this figure (according to estimates):

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

Ożarów Mazowiecki, Kaputy - stage I (17,902 sq. m usable apartment floor space)


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Projected Share of Selected Projectsin Total Revenue in 2008

12

Project Projected revenue to

be recognized in 2008, PLN thousand

Percentage of projected 2008

revenue

Górczewska Park II, Warsaw,

Górczewska/Olbrachta Streets 251,655 23%

Osiedle Lazurowa, Warsaw, Lazurowa Street 131,312 12%

Lewandów Park II, Warsaw, Lewandów Street 124,867 12%

Osada Wiślana, Warsaw, Marcina z Wrocimowic Street 74,110 7%

Rezydencja Quatro, Warsaw, Łukowska Street 55,668 5%

Osiedle Leśne, Gdynia, Parkowa Street 50,429 5%

Other 397,401 36%

TOTAL 1,085,442 100%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

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 Tri-City (Gdańsk, Gdynia, Sopot) market - Osiedle Leśne

in the Russian market - Victoria Park

13

in the Warsaw market - Osiedle Górczewska Park, Osiedle Lazurowa, Osiedle Osada Wiślana, Osiedle Lewandów Park II, Osiedle Zielona Dolina I, Rezydencja Quatro, Osiedle Bursztynowe


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Projects - Warsaw Market

14

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-

standard apartments.

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: 95%

Revenue: 100%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l


15

Górczewska Park(Górczewska II)

Warsaw, Wola District,

Górczewska/Olbrachta Streets

The Górczewska Park project includes 12 apartment buildings situated at Górczewska/Olbrachta Streets - 886 apartments and 4 commercial premises.

Project Usable

apartment floor space (sq. m)


Progress in terms of cost and revenue - 31 December

2008 projection

Osiedle

Górczewska Park44,929 434,107

Cost: 90%

Revenue: 100%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l


16

Osiedle Lewandów Park

Warsaw, Lewandów Street

- construction starts in April 2008

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.

Project Usable




2008 projection

Osiedle

Lewandów Park81,191 429,097

Stage I cost: 29%

Stage II cost: 40%

Revenue, stages I and II: 100%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l


17

Osiedle Zielona Dolina - stage I

Warsaw, Zdziarska/Ostródzka Streets

- construction starts in 2008

A modern housing estate in the Białołęka district of Warsaw. Located close to shopping malls and service facilities, very good connection to the city center. Consists of 596 apartments.

Project Usable




2008 projection

Zielona Dolina 27,792 198,562 Cost: 40%

Revenue: 100%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l


18

Osiedle Bursztynowe

Warsaw, Korkowa Street


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.

Project Usable




2008 projection

Osiedle Bursztynowe 17,402 119,823 Cost: 40%

Revenue: 100%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l


19

Wiślana Aleja

Warsaw, Odkryta Street


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.

Project Usable




2008 projection

Wiślana Aleja 9,770 71,917 Cost: 40%

Revenue: 100%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Projects - Outside Warsaw

20

Osiedle Leśne

Gdynia, Parkowa Street

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.

Project Usable




2008 projection

Osiedle Leśne 12,871 90,928 Cost: 100%

Revenue: 100%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Projects - Outside Warsaw

21

Osiedle Ożarów I - stage I

Kręczki-Kaputy, Ożarów Mazowiecki municipality


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




2008 projection

Osiedle Ożarów I

Stage I 17,902 104,550

Cost: 40%

Revenue: 100%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Projects Abroad

22

Victoria Park

Kolomna, Russia

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.

Project Usable



Progress in terms of cost and revenue, A1 block –

31 December 2008 projection

Victoria Park 58,196 443,967 Cost A1: 100%

Revenue A1: 100%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Projects Abroad

23

Osiedle Jakornaja Szczel

Sochi (Russia) - construction

starts in Q4 2008

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.

Project Usable



Progress in terms of cost and revenue -

31 December 2008 projection Sochi 62,000 350,900

Cost: 5%

Revenue: 0%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Projects in ProgressProjects under construction and in the sales stage (end March 2008 data)

24

ProjectTotal No. of apartments

No. of apartments sold

Planned project completion date

% included in 2008 results

Osiedle GórczewskaWarsaw, Górczewska Street

1,410 1,409 1st half 2008 100%

Osiedle CentrumŁódź, Tymienieckiego Street

324 316 1st half 2008 100%

Rezydencja na Skarpie IVWarsaw, Bukowińska Street

261 261 1st half 2008 100%

Willa KonstancinKonstancin, Bielawska/Paproci

Streets177 167 1st half 2008 100%

Aleja LudwinowskaWarsaw, Ludwinowska Street

68 68 1st half 2008 100%

Osiedle LeśneGdynia, Parkowa Street

202 163 Q4 2008 100%

Osiedle LazurowaWarsaw, Lazurowa Street

669 643

stage I – Q2/Q3 2008stage II – Q3 2008stage III – Q4 2008

stages IV and V – Q1 2009

95%

Osada WiślanaWarsaw, Marcina z Wrocimowic

Street404 365

stage I– Q3/Q4 2008stages II and III – Q2/Q3 2009

86%

Rezydencja QuatroWarsaw, Łukowska Street

243 242 1st half 2009 75%

Górczewska ParkWarsaw, Górczewska/Olbrachta

Streets890 737 Q2/Q3 2009 90%

Osiedle Uroczysko, Katowice, Bałtycka Street

25 0 1st half 2008 100%

Victoria Park II (Russia) A1 block 158 80 Q4 2008 100%

Lewandów Park I and IIWarsaw, Lewandów Street

1,905 1,578 1st half 2010Lewandów I — 29%Lewandów II — 40%

Wiślana AlejaWarsaw, Odkryta Street

200 171 Q1 2010 40%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Projects in the Sales Stage, Projected Construction Start 1st Half 2008

*Apartments available for sale

25

ProjectEstimated

revenue, PLN thousand

No. of apartments

No. of apartments sold

Construction permit to be obtained in

% included in 2008 results

Zielona DolinaWarsaw, Zdziarska/Ostródzka

Streets455,085 594* 401 1st half 2008

Zdziarska I - 40%

Zdziarska II - 0%

Osiedle BursztynoweWarsaw, Korkowa Street

120,648 322 256 1st half 2008 40%

No. of apartments No. of apartments sold

Apartments under construction and in the sales stage, total

7,852 6,876


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Planned Projects (as of end April 2008)

26

Project City / district Market segmentNo. 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 911 45,000

ŚwiatowidaWarsaw / Białołęka

DistrictStandard 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

SzczecinLuxury apartments /

service facilities400 32,000

Szczecin — Porta Transport plot

Szczecin Standard apartments 5,400 297,000

Ożarów Mazowiecki IOżarów

MazowieckiStandard apartments 1,973 96,000

Ożarów Mazowiecki IIOżarów

MazowieckiStandard apartments 816 40,000

Ożarów Mazowiecki IIIOżarów

MazowieckiStandard apartments 1,300 71,500

Łeba Łeba Standard apartments 490 29,055

BerensonaWarsaw / Białołęka



S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Planned Projects (as of end April 2008)

27

Project City / district Market segmentNo. of apartments

/ houses

Estimated usable apartment floor space,

sq. m

Aleja Ludwinowska IIWarsaw / Ursynów

DistrictHigh-standard

apartments24 2,400

Victoria Park II Kolomna / Russia Standard apartments 782 43,010

Aluzyjna IWarsaw / Tarchomin


Aluzyjna IIWarsaw / Tarchomin


Konstancin II Konstancin Standard apartments 136 8,800

Sopot, ul. Parkowa 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

TOTAL 16,093 939,312


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

Projects in Progress Will Yieldover PLN 1 Billion in Margins

28

Projects in progress will yield over PLN 1 billion in margins, which will be recognized in future financial results.

31 December 2007 31 March 2008

Projected revenue from projects in progress

4,874.5 4,265.3

Projected cost of projects in progress 3,334.0 2,929.5

Projected margin for projects in progress 1,540.5 1,335.8

Accumulated revenue recognized in profit and loss

695.8 93.1

Accumulated cost recognized in profit and loss

455.5 57.5

Accumulated margin recognized in profit and loss

240.2 35.6

Deferred margin 1,300.2 1,300.3

Projected margin for projects in progress 31.1% 31.2%


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

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)

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

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

29J.W. Construction Holding S.A. PRESENTATION – May 2008

S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

The company estimates that average real estate prices will remain steady in the first months of 2008, and rise by around 5% at the end of the year. The exceptional increases from previous years will not return, and from 2009 onwards real estate prices will start to rise slowly

Stable pricing situation in the construction materials market

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

Still considerable potential for real estate price increases in certain conurbations, e.g. Katowice and Szczecin, where the company plans future projects

30

Industry Development Prospects in the Company’s View


S t

r i c

t l y

P r

i v

a t

e &

C

o n

f i d

e n

t i a

l

INVESTOR RELATIONS OFFICE:

Małgorzata Szwarc-Sroka

Head of Financial Liquidity Managementand Head of the Investor Relations Office

Phone: +48 022 771 77 85 / +48 0 22 771 78 10or +48 022 771 75 10

e-mail: [email protected]

Date post:	26-Mar-2015
Category:	Documents
Upload:	chase-dougherty
View:	216 times
Download:	1 times

S t r i c t l y P r i v a t e & C o n f i d e n t i a l J.W. CONSTRUCTION HOLDING S.A. PRESENTATION...

Documents