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....

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J.W. CONSTRUCTION HOLDING S.A. PRESENTATION

RESULTS FOR THE FIRST SIX MONTHS OF 2008

J.W. CONSTRUCTION HOLDING S.A. PRESENTATION

RESULTS FOR THE FIRST SIX MONTHS OF 2008

30 September 2008

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Presentation Agenda

2

Mission of J.W. Construction Holding S.A. …….………………………………………..3

Strategy of J.W. Construction Holding S.A. ….………………………………………….4

Results for the first six months of 2008 ………………………………………………….7

Gross profit on sales for the 1st half - year of 2008 ……….……..…………………….9

1st half - year of 2008 highlights …………….……………………………………………10

Significant events after the 1st half - year of 2008 …..……..………………………...14

Projected profit to be recognized in 2008 ………………………………………..……15

Projected share of selected projects in total revenue in 2008 ……..……….……..16

Strategy implementation - major projects in 2008 ……………….…..……....………17

Projects in progress ……….…………..…………………………………………………..27

Projects in the sales stage .….……….…………………………………………………..29

Planned projects ……….…….………………………………………………………........30

Industry development prospects in the company’s view …………………………..32

Sales policy in 2008 ……….………………………………………….…………………...34

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

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Mission of J.W. Construction Holding S.A.

3

The mission of the Company is to satisfy the housing needs of all those who value comfort and safety at an affordable price. Thanks

to this business philosophy the Company is the largest Polish developer specialising in the segment of flats accessible to a wide

group of Customers. It incorporates a strategy consisting in continuously increasing the functionality and high quality of the flats

offered by the Company, while maintaining competitive prices.


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Strategy of J.W. Construction Holding S.A.

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strengthening the leading position among developers

diversifying the sources of revenues and profits by separating construction and designing activities from the existing structures, and also by launching building production

reducing and rationalising costs at each and every stage of production and service provision

implementing new housing, office and infrastructure projects in Poland and abroad

The strategic objectives of the Company are:


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preparing new housing offers

introducing new products for Customers in co-operation with banks and leading manufacturers of finishing materials

executing a holiday apartments complex project in Bulgaria and high standard flats in Sochi

executing projects in the commercial spaces building sector – office blocks in Warsaw and Szczecin and the expansion of the Hotel 500 chain

The Company attains its strategic objectives by:


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implementing a modern, cost-effective ceramic walls building technology accelerating the construction process by a subsidiary

outsourcing of services (legal and advisory services, strategic consulting, IT)

purchasing modern and efficient plant and machinery used in construction

The Company attains its strategic objectives by:


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Results for the first six months of 2008

1st half-year of 2008 sales revenue - an increase by 69,7% (by PLN 158.7 million

in absolute terms) compared to the same period of the previous year

7

Sales revenue, PLN million:

386,1

227,5

0

50

100

150

200

250

300

350

400

450

1st half-year of 2007 1st half-year of 2008

Gross margin, %

30,0

27,0

26

26

27

27

28

28

29

29

30

30

31

1st half-year of 2007 1st half-year of 2008*

* with the exception of projects recognized with zero margin


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1st half-year of 2008 operating profit - an increase by 76.6% (by PLN 31.2 million

in absolute terms) compared to 1st half-year of 2007

Net profit - an increase by 98.7% (by PLN 25.3 million in absolute terms) compared to 1st half-year of 2007

8

Operating profit, PLN million:

71,9

40,7

0

10

20

30

40

50

60

70

80


Net profit, PLN million:

50,9

25,6

0

10

20

30

40

50

60


Results for the first six months of 2008


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Gross profit on sales for the 1st half - year of 2008

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Górczewska Park, Warsaw, Górczewska/Olbrachta Streets - 39%

Osiedle Lazurowa, Warsaw, Lazurowa Street - 23%

Osada Wiślana, Warsaw, Marcina z Wrocimowic Street - 12%

Rezydencja Quatro, Warsaw, Łukowska Street - 12%

Osiedle Leśne, Gdynia, Parkowa Street - 10%

The total gross sales profit in 1st half-year of 2008 came to PLN 101.4 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


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The most important event taking place in the first half of 2008 was the separation from J.W. Construction Holding S.A. of its three Branches and their contribution as organised parts of the enterprise to subsidiary companies

1st half - year of 2008 highlights

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:

- 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”


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-

- Lewandów Park I, Warsaw, Lewandów Street

- Aleja Ludwinowska II, Warsaw, Ludwinowska Avenue

- Lewandów Park II, Warsaw, Lewandów Street

- I stage Lazurowe Ustronie I (Ożarów Mazowiecki)

- Bursztynowe Osiedle, Warsaw, Korkowa Street

In June 2008, the Company celebrated the 15th anniversary of its operations

Further extension of the “land bank” through the purchase by the J.W. Construction Bułgaria EOOD, a subsidiary with its registered office in Sofia, of a property with an area of over 1.4 hectares in the Bulgarian Golden Sands resort

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

Obtaining valid construction permits and starting the construction of the projects as listed below:



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“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



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The fifth diamond added to the Polish Business Leader statuette awarded by the Business Centre Club

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

“Benefactor of the Year 2007” title in a competition held by the Academy for the Development of Philanthropy in Poland



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Significant events after 1st half - year of 2008

In July 2008, the Company concluded an agreement with an investment firm within the meaning of Article 6, para. 3, point b) of Commission Regulation (EC) No. 2273/2003 of December 22, 2003 concerning the implementation of a share buy-back program in order to redeem the shares purchased. The program shall be implemented until June 30, 2009 or until the funds allocated to its implementation are exhausted; the number of shares purchased shall be no fewer than 1,500,000. The maximum amount of funds allocated to program implementation shall be PLN 55,000,000; the funds shall come from the Company’s supplementary capital.

Another purchase of land (conditional agreement) situated in Warsaw (Mokotów district), Antoniewska Street


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Projected profit to be recognized in 2008

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Górczewska Park II, Warsaw, Górczewska/Olbrachta Streets - 35%

Osiedle Lewandów II, Warsaw, Lewandów Street - 17%

Osiedle Lazurowa, Warsaw, Lazurowa Street - 13%

Osada Wiślana, Warsaw, Marcina z Wrocimowic Street - 11%

Osiedle Leśne, Gdynia, Parkowa Street - 7%

Rezydencja Quatro, Warsaw, Łukowska Street - 7%

The projected 2008 gross sales profit level is PLN 256.5 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


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Projected share of selected projectsin total revenue in 2008

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Project Projected revenue to

be recognized in 2008, PLN thousand

Percentage of projected 2008

revenue

Górczewska Park II, Warsaw,

Górczewska/Olbrachta Streets 195,317 24%

Osiedle Lazurowa, Warsaw, Lazurowa Street 120,984 15%

Lewandów Park II, Warsaw, Lewandów Street 110,596 13%

Osada Wiślana, Warsaw, Marcina z Wrocimowic Street 78,320 10%

Rezydencja Quatro, Warsaw, Łukowska Street 49,347 6%

Victoria Park II, Kolomna, Russia 44,965 5%

Lewandów Park I, Warsaw, Lewandów Street 41,419 5%

Other 178,929 22%

TOTAL 819,877 100%


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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

17

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


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Projects - Warsaw market

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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: 96%

Revenue: 97%


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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: 95%

Revenue: 83%


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Osiedle Lewandów Park

Warsaw, Lewandów Street

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 Park81,191 420,808

Stage I cost: 29%

Stage I revenue: 98%

Stage II cost: 40%

Stage II revenue: 85%


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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: 85%


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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: 93%


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Projects - outside Warsaw

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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: 89%


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Projects - outside Warsaw

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Lazurowe Ustronie 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

Lazurowe Ustronie I

Stage I 17,902 104,550

Cost: 40%

Revenue: 30%


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Projects abroad

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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 58,196 366,074 Cost A1: 80%

Revenue A1: 80%


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Projects abroad

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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%


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Projects in progressProjects under construction and in the sales stage (figures as at the end of June 2008)

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ProjectTotal No. of apartments

No. of apartments sold

Planned project completion date

% included in 2008 results

Osiedle Górczewska

Warsaw, Górczewska Street1,410 1,409

1st half of 2008 – flats are being handed over 100%

Osiedle Centrum

Łódź, Tymienieckiego Street324 305


Rezydencja na Skarpie IV

Warsaw, Bukowińska Street261 261


Willa Konstancin

Konstancin, Bielawska/Paproci

Streets

177 1651st half of 2008 – flats are

being handed over 96%

Aleja Ludwinowska

Warsaw, Ludwinowska Street68 68 Q3 2008 100%

Osiedle Leśne

Gdynia, Parkowa Street202 167 Q4 2008 89%

Osiedle Lazurowa

Warsaw, Lazurowa Street669 636 Q4 2008 93%

Osada Wiślana

Warsaw, Marcina z Wrocimowic

Street

404 371stage I– Q3/Q4 2008

stages II and III – Q2/Q3 200984%

Rezydencja Quatro

Warsaw, Łukowska Street243 242 1st half 2009 74%

Górczewska Park

Warsaw, Górczewska/Olbrachta

Streets

890 702 Q2/Q3 2009 79%

Osiedle Uroczysko, Katowice,

Bałtycka Street24 2 Q3 2008 0%


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Projects in progressProjects under construction and in the sales stage (figures as at the end of June 2008)

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ProjectTotal No. of apartments


Planned project completion date

% included in 2008 results

Victoria Park II (Russia) A1 block 158 104 Q1 2009 64%

Lewandów Park I and II

Warsaw, Lewandów Street1,905 1,577 1st half 2010 32%

Wiślana Aleja

Warsaw, Odkryta Street200 176 Q1 2010 37%

Osiedle Bursztynowe,

Warsaw, Korkowa Street 322 250 1st half 2010 34%

Aleja Ludwinowska II,

Warsaw, Ludwinowska Avenue24 8 Q3 2009 20%

I stage Lazurowe Ustronie I,

Ożarów Mazowiecki376* 39 Q4 2009 0%

*Apartments available for sale


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Projects in the sales stage, projected construction start 2nd half 2008

*Apartments available for sale

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ProjectEstimated revenue,

PLN thousandNo. of apartments


Zielona DolinaWarsaw, Zdziarska/Ostródzka Streets

455,085 633* 355

No. of apartments No. of apartments sold

Apartments under construction and in the sales stage, total

8,290 6,837


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Planned projects (status as at the end of June 2008)

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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


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

Lazurowe Ustronie IOżarów

MazowieckiStandard apartments 1,530 74,688

Lazurowe Ustronie IIOżarów

MazowieckiStandard apartments 762 36,338

Lazurowe Ustronie IIIOżarów

MazowieckiStandard apartments 1,016 61,610

Łeba Łeba Standard apartments 490 29,055

BerensonaWarsaw / Białołęka



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Planned projects (status as at the end of June 2008)

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Project City / district Market segmentNo. of apartments

/ houses

Estimated usable apartment floor space,

sq. m

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, Parkowa Street 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

Warsaw, Antoniewska Street*

Warsaw/MokotówDistrict


TOTAL 15,779 929,232

* the investment also includes the plot purchased in July 2008 by way of a conditional agreement


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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

32PRESENTATION J.W. Construction Holding S.A. – September 2008

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Stabilization of real estate prices in the near future and a gradual increase in prices beginning in fall 2008 or spring 2009 at the latest (according to real estate market experts)

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

33

Industry development prospects in the company’s view


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Wide offer of financing programmes for Customers

Packages offering special conditions, dedicated to employees of institutions co-operating with J.W. Construction

Interior finishing programmes for Customers

Implementation of alternative sales channels

Continuous marketing activities

An employee sales programme involving employees of J.W. Construction in the sales activities

34

Sales policy in 2008


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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]

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....

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