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D om Development SA. Presentation of 4th Quarter 2006 Results. In 2006 the demand for housing was the result of many factors. Positive Positive Positive Positive Positive. Households’ financial condition Development of mortgage lending Good macroeconomic conditions Migration to Warsaw
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Dom Development SA Presentation of 4th Quarter 2006 Results
In 2006 the demand for housing was the result of many factors Positive Positive Positive Positive Positive • Households’ financial condition • Development of mortgage lending • Good macroeconomic conditions • Migration to Warsaw • The baby boomers of the 80s enter the labour market
Growing market of housing loans Value of housing loans in Poland (PLNbn) • Dynamic increase on the housing loans market • Relatively low percentage rates • The anticipated strong increase of the value of housing loans will support demand on the housing market Source: Polish Bank Association / Rzeczpospolita
Increase of the flats’ prices on the Warsaw market 50.7% increase Source: redNet Property Consulting
Basic financial results 4Q 2005 – 4Q 2006 (PLNm) • Increase of sales revenues by 3.9% in 4Q 2006 as compared to 4Q 2005 • Net profit increase by 30.0 %
Financial results 2003 – 2006 (PLNm) Margins:
Flat sales and deliveries Flats and high standard apartments constitute the basis for the offer of Dom Development (in 2005 they constituted 89.4%, and in 2006 96.1% of all sales) Sales Completed and delivered to the clients
Projects – high growth potential • By the end of 2006 the Company completed projects incorporating almost 8 700 flats and houses. • At present the Company is in the process of construction of over 2 600 flats and apartments of about PLN 1.4 billion • Dom Development plans to invest in the construction of 5 869 flats and houses. The value of those projects amounts to about PLN 2.2 billion.
Dom Development in the WSE Price on 28/02/2007 PLN 160.1 Debut quotation price PLN 121.5 Debut date: 24 October 2006 End price on debut date: PLN 121.50 Capitalisation at debut price: PLN 2.6 billion Capitalisation on 26/02/2007: PLN 3.9 billion Capitalisation increase since the 1st quotation: + 50.0%