Dom Development S.A.

Transcription

1 Dom Development S.A. Consolidated Group H Results Presentation 24 August 2018

2 Highlights Q Quarterly sales: 802 units, as planned - satisfactory margins Start of construction of 12 projects with 1,312 units, including Marina Mokotów (329 units) Dom Construction appointed general contractor for further phases of Żoliborz Artystyczny Excellent land purchases in the Tri-City and Wroclaw 2

3 Q Financial Results summary Handovers: units (+52% YoY) Revenues: PLN 435.7m (+35% YoY) Gross Margin: 27.1% (-0.9 pp YoY) Net Profit: PLN 58.8m (+20 % YoY) Net cash as of : PLN 184.4m 3

4 Market in Q An excess of demand over supply led to significant price increases Favorable macroeconomic factors supported demand, including low interest rates, low unemployment, strong GDP and wage growth Very strong competition on land market. High prices on the land market combined with administrative obstacles are limiting the housing supply. The liquidity and labour shortages affecting the construction industry are improving only slowly Construction cost are beginning to stabilise High share of cash buyers over 35% of overall transactions at Dom Development 4

5 Quarterly net sales No. of units Q Q Q Q Q Q Q Q Q Q Q Q

6 H Sales Segmentation Markets Breakdown No. of units 27% No. of units 29% up to PLN 350k PLN k PLN k over PLN 550k % % % 22% Dom Development S.A. Capital Group % 17% Warsaw Dom Development S.A. 29% 28% 2% 7% 23% 21% 21% 71% Tri-City Euro Styl S.A. * Transaction value includes price of a flat with fit-out (if purchased), storage room (if purchased) and parking place (if purchased). Wroclaw Dom Development Wrocław Sp. z o.o. 6

7 Offer (units available for sale) No. of units /09/ /12/ /03/ /06/ /09/ /12/ /03/ /06/2018 Units under construction Finished units 7

8 New Construction Starts No. of units * projects 4 projects 5 projects 12 projects 6 projects 6 projects 7 projects 12 projects 0 Q Q Q Q Q Q Q Q *Including 730 units introduced to offer in July

9 Units Under Construction No. of units /09/ /12/ /03/ /06/ /09/ /12/ /03/ /06/2018 9

10 Land Bank No. of units /09/ /12/ /03/ /06/ /09/ /12/ /03/ /06/

11 Handovers 1400 No. of units Q Q Q Q Q Q Q Q Units sold but not delivered (presales) units units, including: 262 finished units units under construction, out of which will be finished in

12 Cumulative Net Sales to be Recognized in P&L PLN m J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J

13 Financial Results: Profit and Loss Profit and Loss Account Q Q Change H H Change Sales Revenues % % Handovers (units) 1, % 1, % Revenue per unit (PLN 000) (11)% (8)% Gross Profit on Sales % % Gross Profit Margin 27.1% 28.0% (0.9) pp 28.0% 26.7% 1,3 p.p. Operating Profit % % Operating Profit Margin 16.7% 18.1% (1.4) pp 14.9% 13.2% 1,8 p.p. Profit Before Tax % % Profit Before Tax Margin 16.7% 18.3% (1.6) pp 14.9% 13.3% 1,6 p.p. Net Profit % % Net Profit Margin 13.5% 15.2% (1.7) pp 11.9% 11.0% 0,9p.p. EPS (PLN) % % IAS 18, PLN m 13

14 Financial Results: Balance Sheet Consolidated Balance Sheet Change Shareholders funds (equity) % Net debt/(net cash)* (184.4) (105.3) 75% Gearing (net debt/equity) (20.6)% (12.3)% (8.3) pp Net asset value per share (PLN) % Shares in issue (m) <1% ROE (12M) 25.6% 18.2% 7.4 pp ROCE (12M) 25.7% 17.9% 7.8 pp *Bank debt plus bonds in issue less cash at banks (including escrow accounts) IAS 18, PLN m 14

15 Debt Maturity Structure 120 PLN m by by by by by Bonds Bank Loans Cash (including escrow accounts) as of 30/06/2018 Bond debt as of 30/06/2018 Available credit lines as of 30/06/2018 PLN 479m PLN 260m PLN 200m 15

16 Summary: First half of 2018 Very strong demand on Warsaw, Wroclaw and Tri-City markets New land plots for over 800 units in the Tri-City and over 300 units in Wroclaw Dom Construction (group subsidiary) successfully starts operations in Warsaw 1,650 units sold (-11% YoY) with improving margins 2,801 units available for sale 6,409 units under construction on 50 projects - an all time record Commencement of 19 projects with 2,391 units H net profit: PLN 76.3m, up 59% YoY Gearing as of 30 June 2018: -21%; PLN 184m net cash 16

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18 Appendix 1: Commencement of handovers in 2018 Q3 Project Location No. of units Commencement of handovers Spektrum building B Tri-City 169 Jul'18 Q4 Project Location No. of units Commencement of handovers Wilno VI phase 1 Warsaw 309 Oct'18 Kwartet - Macierzy Szkolnej Tri-City 27 Aug'18 Futura Park building 7 Tri-City 8 Oct'18 Impuls building C Tri-City 55 Aug'18 Premium phase 5 Warsaw 113 Nov'18 Nowy Horyzont building 12 Tri-City 38 Sep'18 Apartamenty Mokotów nad Skarpą 2 Warsaw 190 Nov'18 Forma phase 1 Warsaw 95 Sep'18 Cybernetyki 17 phase 1 Warsaw 146 Nov'18 Viridis building A2 Tri-City 42 Sep'18 Moderna phase 3 Warsaw 187 Nov'18 Commencement of handovers: on schedule/earlier/delayed Wille Lazurowa phase 2 Warsaw 102 Nov'18 Spektrum building A Tri-City 169 Nov'18 Idea building 5 Tri-City 62 Nov'18 Nowy Horyzont building 11 Tri-City 38 Nov'18 Apartamenty Park Szczęśliwicki Warsaw 46 Dec'18 Dom na Bartyckiej Warsaw 131 Dec'18 Forma phase 2 Warsaw 199 Dec'18 Amsterdam phase 2 Warsaw 314 Dec'18 Cybernetyki 17 phase 2 Warsaw 247 Dec'18 Port Żerań phase 1 Warsaw 362 Dec'18 Premium phase 4 Warsaw 248 Dec'18 Scena Apartamenty Tri-City 61 Dec'18 Osiedle Viridis building A1 Tri-City 32 Dec'18 18

19 Appendix 2a: Projects Under Construction and in Preparation: Warsaw no. of units, as of 30/06/2018 No. PROJECT UNDER CONSTRU- CTION IN PREPARATION 1 ŻOLIBORZ ARTYSTYCZNY II PREMIUM WILLE LAZUROWA Warsaw No. PROJECT UNDER CONSTRU- CTION IN PREPARATION 13 REGATY OGRODOWA WŁODARZEWSKA 70/ APARTAMENTY PARK SZCZĘŚLIWICKI (PRZY PARKU) MARINA MOKOTÓW PALLADIUM (AKACJE) PORT ŻERAŃ (KOWALCZYKA) MODERNA AMSTERDAM (SAMARYTANKA) APARTAMENTY MOKOTÓW NAD SKARPĄ CYBERNETYKI WILLE TANECZNA APARTAMENTY DOLNY MOKOTÓW (SOBIESKIEGO) WILNO FORMA (MOTOROWA) STACJA GROCHÓW (SIENNICKA) TOTAL RIGHT BANK DOM NA BARTYCKIEJ TOTAL LEFT BANK PROJECT IN PREPARATION PROJECT UNDER CONSTRUCTION 19

20 Appendix 2b: Projects Under Construction and in Preparation: Tri-City no. of units, as of 30/06/2018 Tri-City No. PROJECT UNDER CONSTRUCTION IN PREPARATION OSIEDLE VIRIDIS IDEA NOWY HORYZONT SPEKTRUM IMPULS OSIEDLE BEAUFORTA SCENA APARTAMENTY MEZZO FUTURA PARK ZIELONY POŁUDNIK KWARTET POLANKI LOCUS (RUMIA STOCZNIOWCÓW) GDYNIA MORSKA RUMIA DĘBOGÓRSKA (NEW) GDAŃSK MICKIEWICZA (NEW) TOTAL PROJECT IN PREPARATION PROJECT UNDER CONSTRUCTION 20

21 Appendix 2c: Projects Under Construction and in Preparation: Wroclaw no. of units, as of 30/06/2018 Wroclaw 2 No. PROJECT UNDER CONSTRUCTION IN PREPARATION 1 KSIĘŻE NOWE (RYBNICKA) IDYLLA (STABŁOWICKA) STUDIO ARTE KSIĘCIA WITOLDA PIĘKNA KURKOWA (NEW) TOTAL WROCLAW PROJECT IN PREPARATION PROJECT UNDER CONSTRUCTION 21

22 Appendix 2d: Projects Under Construction and in Preparation Summary LOCATION NO. OF PROJECTS / PHASES UNDER CONSTRUCTION NO. OF UNITS UNDER CONSTRUCTION NO. OF UNITS IN PREPARATION TOTAL (NO. OF UNITS) WARSAW WROCLAW TRI-CITY TOTAL

23 For further information please contact: Magdalena Cumanis Investor Relations tel Euro Styl S.A. results incorporation key: Sales volume from Q New construction starts whole 2017 Deliveries and financial results from 8 June 2017, i.e. the acquisition date 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. 23