Financial results for the third quarter of 2010
Contents
Contents
The most significant events in Q3 2010
The numbers of the Company - Q3 2010
J.W. Construction vs WIG - Developers
The results of J.W. Construction Holding S.A.
Sales of apartments in units
The results- Q3 2010
Cumulative results for Q3 2010
Implementation of the gross profit from sales after Q3 2010
Premises for recognition as a result of subsequent quarters in units
Basic economic indicators
Implemented investments of J.W Construction Holding S.A.
Implemented investments in Q3 2010 - housing spaces
Implemented investments in Q3 2010 - commercial spaces
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2-3
4
5
6
7
8
9-10
11-12
13
14
15
16
17
18
Contents
The development strategy of J.W Construction Holding S.A.
Strategy - housing investments in the pipeline
Strategy - commercial investments in the pipeline
Hidden potential of J.W Construction Holding S.A.
J.W. Construction S.A. - the executive arm of the Holding
Land bank as a potential growth
Objectives for the next quarters J.W Construction Holding S.A.
Sales policy of the Company in 2010
3
19
20
21
22
23
24
25-27
28-29
4
The most significant events in Q3 2010
Maintaining the leadership position - the biggest number of sold flats in the market
The biggest number of flat that were handed over in the Warsaw market
Obtaining occupancy permit for Lewandów Park Stage II (1 275 units)
Appointment of the new Management Board of J.W Construction S.A.
Redemption of the operating lease for Hotel in Zegrze
Conclusion of the final agreement on land purchasing in Wrocław
The Górczewska Park housing estate was nominated for the international ECOLA award
(European Architectural Award Plaster 2010)
Wiślana Aleja Housing Estate was nominated for Construction Investment Journal Award in the
Best Residential Development category
5
Financial results for the third quarter of 2010
decrease in credit debt in the third quarterPLN 38.6 mil
sold flats345
units handed over to customers796
ongoing investments, including a commercial project (Jerozolimskie Point - Warsaw) and a hotel project (Czarny Potok - Krynica Zdrój)
5
13 investment in the pipeline
6
J.W. Construction S.A. WIG - Developers
Share price of J.W Construction Holding S.A in the recent fourth quarters compared to the WIG
Developers index showed more dynamic growth. In the analysed period , the share price of JWCH rose by
almost 50% and the market as a whole noted a slight decline.
01/Sep/0
9
01/Oct/
09
31/Oct/
09
30/Nov/0
9
30/Dec/
09
29/Jan/1
0
28/Feb/1
0
30/Mar/
10
29/Apr/1
0
29/May
/10
28/Jun/1
0
28/Jul/1
0
27/Aug/1
0
26/Sep/1
060.00
70.00
80.00
90.00
100.00
110.00
120.00
130.00
140.00
150.00
160.00
JW Construction Linear (JW Construction) WIG-Deweloperzy Linear (WIG-Deweloperzy)
7
The results of J.W. Construction Holding S.A.
• Sale of apartments• Revenue, margin, profit• Premises recognized in a result
8
Sales of apartments in units
J.W. Construction Holding S.A notes a systematic increase in the number of sold flats Upward trend is maintained also in October - 133 sold flats The number of sold units by the end of October 2010 - 1 034 units
72 83 102
257
117 107 121
345
JULY AUGUST SEPTEMBER Total Q320092010
9
Results - the third quarter of 2010
Revenues from sales [PLN mil] Gross margin [%]
Increase in revenues from sales in Q3 2010 by 35.27% y/y
Increase in margin in Q3 2010 by 5.5 p.p y/y
159,9
216,3
Q3 2009
Q3 2010
35.27%
5,5p.p.
10
Results - the third quarter of 2010
Profit from operating activities [PLN mil] Net profit [PLN mil]
Increase in profit from operating activities in Q3 2010 by 72.2 p.p y/y
Increase in net profit in Q3 2010 by 79 % y/y
31,7
54,6
Q3 2009
Q3 2010
72,23% 79%
11
Cumulative results for Q3 2010
Revenues from sales [PLN mil] Gross margin [%]
Decrease in revenue from sales in cumulative results for Q3 2010 by 6.84% y/y
Increase in margin in cumulative results for Q3 2010 by 3.19 p.p y/y
6,84%
3,19 p.p.
12
Cumulative results for Q3 2010
Profit from operating activities [PLN mil] Net profit [PLN mil]
Decrease in revenue from sales in cumulative results for Q3 2010 by 2.5% y/y
A slight decrease in net profit in cumulative results for Q3 2010 by 2.16% y/y
2.5%
2,16%
1 237
1 446
cumulative for Q3 2009 cumulative for Q3 201013
Implementation of the gross profit from sales after Q3 2010
The level of gross profit from sales after Q3 2010 is equal to PLN 136,400,000 The main percentage was in the following investments:
Recognized flats in the cumulative results for Q3 2010 with a comparison to the corresponding period the previous year:
28%
23%9%
9%
8%
4%
4%4%
3%8%
Lewandów Park II Etap (436)
Górczewska Park (268)
Bursztynowe Osiedle (123)
Lazurowa (99)
Osada Wiślana (100)
Aleja Wiślana (80)
Łukowska (41)
Gdynia Spokojna (34)
Lewandów Park I Etap (171)
Pozostałe (94)
14
Premises for recognition as a result of subsequent quarters in units
2 434
839
450
376
252
205
151
120
41
0 500 1 000 1 500 2 000 2 500 3 000
Total
Lewandów Park Stage II
Górczewska Park
Lazurowe Ustronie
Lewandów Park Stage I
Bursztynowe Osiedle
Other
Aleja Wiślana
Osada Wiślana
15
Basic economic indicators
30.09.2010 30.09.2009 31.12.2009 31.12.2008
Net profit margin on salesnet profit/loss
14,84% 14,12% 14,08% 10,91%revenues from sales
Liquidity Itotal current assets
1,52 1,31 1,21 1,11current liabilities
Liquidity IIIcash and cash equivalents
0,16 0,02 0,03 0,03Current liabilities
Equity to fixed assetsequity
0,96 0,93 0,96 0,67fixed assets
Debt ratecurrent liabilities + non-current
liabilities 66,02% 75,45% 73,04% 82,39%total liabilities
without TBS 58,54%
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Implemented investments of J.W Construction Holding S.A.
• housing investments• commercial investments
17
Investments implemented in the third quarter of 2010 residential spaces
In the third quarter of 2010, the Company implemented the construction of 1 651 flats and 12 houses with a total area of approximately 74 000 sq m of usable space.
1 275
376
„Zielona Dolina” ul.Zdziarska
„Osiedle Lewandów Park"II Etap
„Lazurowe Ustronie” I etap 12 Domów w Ożarowie
2 050
17 938
53 820
"Zielona Dolina" ul.Zdziarska
„Osiedle LewandówPark” II Etap
„Lazurowe Ustronie” Ietap
"Domy w Ożarowie"
UFS
Number of units
Works connected with media
Works connected with media
18
Investments implemented in the third quarter of 2010 residential spaces
3 561
18 709
Jerozolimskie Point Hotel "Czarny Potok"
Implemented hotel-commercial projects with area of 22 270 sq m.
PUU
hotel and recreational complex (**** hotel ***** Spa resort / Wellness)
hotel-office complex
19
The development strategy of J.W. Construction Holding S.A.
• housing investments• commercial investments
STRATEGY Strategy - housing investments in the pipeline
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44 50 60 82 165
1 4149797
272255255224208184
Number of units
69 819
15 732 13 483 12 099 11 838
2 0113 0003 2004 1588 7638 90010 412
UFSDomy
Ożarów
72Number of houses
Zielona Dolina I , II ul. Zdziarska
Lewandów Park I Etap bud 3-6
Mokotówul. Antoniewska
Białołęka Berensona
Białołęka Berensona
Łódź II, ul. Tymienieckiego
Katowice II, ul. Bałtycka
Gdynia I ul. Powstania Wielkopolskiego
Gdynia I ul. Sochaczewska / Płocka
Zielona Dolina I , II ul. Zdziarska
Katowice II, ul. Bałtycka
Mokotówul. Antoniewska
Łódź II, ul. Tymienieckiego
Lewandów Park I Etap bud. 3-6
Białołęka Swiatowida
Poznań, ul. Jaroczyńskiego
Białołęka Odkryta II
Gdynia I ul. Powstania Wielkopolskiego
Gdynia I ul. Sochaczewska/ Płocka
Białołęka, Aluzyjna I
Białołękaul.Światowida
Poznań, ul. Jaroczyńskiego
Białołęka, Odkryta II
Białołęka, Aluzyjna I
Projects that are prepared to launch in 2010/2011
A building permit
21
STRATEGY commercial investments in the pipeline
34 114
24 000
7 583
Nowa Dana,Szczecin
Pileckiego,Warszawa
ul. PowstańcówŚląskich, Wrocław
Projects that are prepared to launch in 2011
Office spaces and hotel services:
Demolition work in progress
PUU
22
Hidden potential of J.W Construction Holding S.A.
• Executive arm• Land bank• Commercial spaces
23
J.W. Construction S.A. - the executive arm of the Holding
Wzmocnienie ramienia wykonawczego
September 2010 - Appointment of a new Management Board
Preparation of the first major external projects where JWC S.A is going to be
the general contractor.
The target structure of the mandators of J.W Construction SA over the next
two years
25%
75%internal projects external projects
24
Land bank as a potential growth
Locations where the Company owns land
New and plannes directions of expansion
Poznań
Gdynia
Katowice
Warsaw
Łódź
Kraków
Wrocław
SzczecinHousing investments
Commercial investments
Bearing in mind that the Company has been building its value in a long-term period, the Company strengthens its presence in the market out of Warsaw.
Krynica
25
Objectives for the next quarters of J.W Construction Holding S.A.
• Strengthening the executive arm• Developer activity:
- commercial properties- housing properties• Strengthening market
position out of Warsaw• The development of other
companies in the Capital Group
26
Objectives for the next quarters
Kierunek działań strategicznych GK J.W. Construction Holding S.A.:
Strengthening the executive arm through the participation in tenders for the implementation of works relating to infrastructure, including the syndicated principles
Extending the offer of commercial surfaces (hotel-commercial-office)
Further strengthening the company on the Warsaw real estate market
Building the Company's position in the housing market out of Warsaw
The development of other activities than developer activities of the Group’s Companies – building constructions,
design, prefabricated building manufacture
Hotel activitiy – expansion and modernization of Czarny Potok Hotel, Krynica
Popular flats:
To maintain its leadership position in the
market- to expand the commercial offer
including plots seeking to be bought in the
city centre of Warsaw
Activities connected with preparing new
investments to launch
To extend new projects in the region of the
southern part of Poland in connection
with dynamic development of the
agglomeration of Kraków, Katowice,
Wrocław
27
Objectives for the next quarters
Flats with higher standard and
apartments
To make the Company’s portfolio more
attractive by adding to the offer the premises
with a higher standard and luxurious
character in new, prestigious projects
Realisation of new projects on purchased
plots in April 2010 in Gdynia, Katowice,
Poznań
Sales policy of the Company in 2010
Packages offering special conditions, dedicated to employees of institutions co-operating
with J.W. Construction Holding S.A.
Conducting strategic marketing activities in all areas of communication with Clients
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 house estates
Constant monitoring of the real estate market
28
Sales policy of the Company in 2010
An attractive housing offer , including turnkey apartments available in Silver,
Gold and Platinum programs and with full equipment
Turnkey finish programs for the Customers - Silver, Gold and Platinum
Implementation of the program: "First move in and then buy" in Górczewska
Park, Lewandów Park and Osiedle Leśne in Gdynia investments
Professional and free of charge credit counseling
Long-term cooperation with banks– the best offer of credits on the market of
mortgages only for the Company’s customers Many years of cooperation with
banks - the best offer loans in the mortgage market only to customers of the
Company
Offer of various financing programmes for Customers
Attractive offer of flats that meet the requirements of the government program
"Rodzina na swoim"
Flexible approach to the customer – the possibility of negotiating the prices
depending on the payment amount and schedule29
30
Investor Relations:Małgorzata Szwarc-Sroka
Economy Division and Investor Relations Office HeadDirector of Economicand Director of Investor
Relations J.W Construction Holding S.A.
Member of the Management Board of J.W Construction S.A.
phone: 22 771 77 85 / 22 771 78 10 / 22 771 75 10 e-mail.: relacje.inwestorskie @ jwconstruction.com.pl
Investor Relations