presentation h1 2016 investors
TRANSCRIPT
Dom Development S.A.
H1 2016 Results Presentation 25 August 2016
Highlights
2
Q2 2016
• Record high quarterly sales – 701 units
• Launch of 1 349 units across 8 projects
• 4 new sites purchased with development potential of 2 154 units*
• Net profit of PLN 18.4m
• Safe cash levels (PLN 353m) and negative net debt
*including Marina Mokotów with ~750 units purchased in July 2016
Residential Market in Q2 2016
• Strong sales with stable prices
• Supply and demand still balanced
• Record low interest rates support demand
• Increasing share of cash buyers – approx. 40% of overall
transactions at Dom Development
3
4
427
479
407
483509
545
467
598
640678
615
701
0
100
200
300
400
500
600
700
Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Quarterly Net Sales
No. of units
5
Sales segmentation based on transaction value
27% 36% 32% 28% 26% 27% 24% 26% 24% 24% 28%
18%
39%
36% 35%
36% 37% 37% 35% 32% 33% 29% 23%
22%
16% 15%
17% 18% 18% 18%
22% 21% 24% 23%
21%
25%
17% 13% 15% 18% 19% 18% 20% 21% 19% 24% 28%
35%
Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
up to PLN 350k 350-450k 450-550k over PLN 550k
* Transaction value includes price of a flat with fit-out (if purchased), storage room (if purchased) and parking space (if purchased).
6
2 268 2 022
2 292 2 364 2 397
1 696 1 548
2 505
334
312
212 294 357
557 547
506
-
500
1 000
1 500
2 000
2 500
3 000
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
31/12/2015 2 253
31/03/2016 2 095
30/06/2016 3 011
Units under construction Finished units
Dom’s Offer
No. of units
7
345263
637
752 735
279
426
1 349
0
200
400
600
800
1 000
1 200
1 400
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
2 projects 3 projects 2 projects 4 projects 4 projects 8 projects 1 project 3 projects
New Construction Starts
No. of units
3 242 2 927 3 564 3 727 3 989
2 958 3 085
3 935
4 937 4 672
6 276 5 762
5 001
6 504 6 648 6 734
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
30/09/2014 31/12/2014 31/03/2015 30/06/2015 30/09/2015 31/12/2015 31/03/2016 30/06/2016
Under construction In preparation
8
Units under construction and in preparation
No. of units
9
Units sold but not delivered (presales)
31.03.2016 30.06.2016
1 786 units
1 923 units, including:
• 289 finished units • 1 634 units under construction
383
636
190
375478
1 019
256
564
0
200
400
600
800
1000
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Handovers
No. of units
10
Cumulative net sales to be recognized in P&L
PLN m
200
300
400
500
600
700
800
900
1 000
I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI
2013 2014 2015 2016
Financial Results Summary
Q2 2016 Q2 2015 Change H1 2016 H1 2015 Change
Sales Revenues 228.7 157.8 45% 367.7 230.3 60%
Gross Profit on Sales 48.1 38.2 26% 79.9 56.5 41%
Gross Profit Margin 21.1% 24.2% -3.1 pp 21.7% 24.5% -2.8 pp
Operating Profit 23.2 13.2 76% 30.6 7.5 309%
Operating Profit Margin 10.2% 8.3% 1.8 pp 8.3% 3.2% 5.1 pp
Profit Before Tax 23.2 13.0 79% 29.6 6.4 359%
Net Profit 18.4 10.6 75% 23.5 5.1 358%
EPS (PLN) 0.74 0.43 73% 0.95 0.21 352%
11 IAS 18, PLN m
Balance Sheet and Profitability
12
Consolidated Balance Sheet IAS 18, PLN m
30.06.2016 30.06.2015 Change
Shareholders’ funds (equity) 826.6 807.7 2%
Net debt* -2.9 69.7 n.a.
Capital Employed 823.6 877.4 -6%
Gearing (net debt/equity) -0.4% 8.6% -9,0 p.p.
Net asset value per share (PLN) 33.35 32.61 2%
Shares in issue (m) 24.8 24.8 0%
ROE (12M) 12.3% 6.2% 6.1 pp
ROCE (12M) 12.2% 5.5% 6.7 pp
*Bank debt plus bonds in issue less cash at banks (including escrow accounts)
13
120
50
100
30
50
0
20
40
60
80
100
120
140
160
by 30.06.2017 by 30.06.2018 by 30.06.2019 by 30.06.2020
Unsecured bonds Bank Loans
PLN m
Cash as of 30/06/2016 – PLN 353m
Debt Maturity Structure
H1 2016
14
Summary:
3 935 units under construction on 23 projects
3 011 units in Dom’s offer as of June 2016
1 316 units sold in H1 2016, with record high 701 units in Q2
New land for over 2 700 units: Sobieskiego, Kowalczyka, further phases of
Wilno, and Marina Mokotów
Cash resources for land purchases and new project starts: PLN 353m of cash
and no net debt
H1 2016 net profit of PLN 23.5m, with PLN 18.4m in Q2
Appendices
16
Project No. of units in
project Commencement of
handovers
Q1 Aura phase 1B (Wroclaw) 64 March 2016
Q2
Wille Miejskie Klasyków phase 1 235 April 2016
Wilno II phase 2 263 May 2016
Apartamenty Saska nad Jeziorem phase 3 236 June2016
Q3
Wille Lazurowa 166 September 2016
Osiedle Przyjaciół phase 1 116 September 2016
Osiedle Przyjaciół phase 2 89 September 2016
Q4
Dom Pod Zegarem 235 October 2016
Wilno II phase 3 189 November 2016
Studio Mokotów 329 November 2016
Żoliborz Artystyczny phase 8 218 November 2016
Żoliborz Artystyczny phase 9 162 November 2016
Commencement of handovers: on schedule/ earlier / delayed
Appendix 1:
Commencement of handovers in 2016
17
NO PROJECT UNDER
CONTRUCTION IN
PREPARATION
1 ŻOLIBORZ ARTYSTYCZNY 783 ---
2 PREMIUM 442 471
3 OSIEDLE PRZYJACIÓŁ 300 ---
4 WILLE LAZUROWA 166 ---
5 WŁODARZEWSKA 30 (NOWOSOLIPSOWSKA)
--- 114
6 OS. POD RÓŻAMI III 50 ---
7 STUDIO MOKOTÓW 329 ---
8 DOM POD ZEGAREM 235 ---
9 APARTAMENTY MOKOTÓW NAD SKARPĄ (BUKOWIŃSKA II)
184 ---
10 CYBERNETYKI --- 600
11 BUKOWIŃSKA III --- 181
12 TANECZNA --- 115
13 URSYNOVIA (ANODY) 190 ---
14 SOBIESKIEGO (NEW) --- 153
15 MARINA MOKOTÓW (purchased in July 2016)
--- 750
TOTAL LEFT BANK 2 679 2 384
NO PROJECT UNDER
CONTRUCTION IN
PREPARATION
16 REGATY --- 217
17 PALLADIUM (AKACJE) 214 566
18 KLASYKÓW --- 204
19 KOWALCZYKA (NEW) --- 792
20 MODERNA 365 424
21 SAMARYTANKA --- 581
22 WILNO (+459) 318 1 668
23 MOTOROWA --- 493
24 SASKA III 359 ---
TOTAL RIGHT BANK 1 256 4 945
Warsaw
TOTAL UNDER
CONSTRUCTION IN PREPARATION FINISHED
WARSAW 3 935 7 329 24 672
WROCLAW (AURA PROJECT)
--- 155 721
DOM 3 935 7 484 25 393
1 2
4 3
5 6
7 8 11
12 13
9 10
16
17
20
24 23
14
18
19
21 22
Appendix 2:
Projects Under Construction and in Preparation no. of units, as of 30/06/2016
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION
15
18
For further information, please contact: Magdalena Cumanis Investor Relations
tel. +48 22 351 68 49 e-mail: [email protected] www.inwestor.domdevelopment.com.pl
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.