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Contents. 2. J.W. Construction - the biggest developer in the crisis period in Central-East Europe.
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Contents 2
J.W. Construction - the biggest developer in the crisis period in Central-East Europe The CIJ Magazine released the ranking of 50 developers in Central-East Europe, which handled with the market slowdown in 2008-2012 in the most successful way. J.W. Construction took the first place with a number of 5,673 flats commissioned within the period of crisis Source: CIJ, Volume 18 | Issue 4 | April 2012 3
Significant events in Q1 2012 • Acquisition of investment loans with a value of PLN 50 million for a partial financing the implementation of a housing investment in Poznan and Warsaw community in • Lewandów Street; • Preparation works to the opening of a hotel-conference complex - Czarny Potok in Krynica Zdrój • Entry into a final stage of an investment implementation of an exclusive guest house in Sopot; • Continuation of talks regarding an investment purchase at Kasprzaka Street • (final transaction in April). • Obtaining an occupancy permission for a sewage treatment plant in Ożarów Mazowiecki; 4
The Company's results in Q1 2012 The value of credits granted for investment projects Flats sold to the clients, with 22 premises from OXYGEN investment implemented by the Company of J.W. Construction S.A. Ongoing housing investments • Ongoing commercial investments, including: • an office building Hanza Tower- Szczecin; • - a hotel Stara Dana - Szczecin • a hotel Czarny Potok in Krynica Zdrój • a luxurious guest house - Sopot • Investments to launch in 2012: • Gdynia, at Powstania Wielkopolskiego Street - a building permit • Gdynia, at Sochaczewska Street • Poznań, at Jaroczyńskiego Street - a building permit about PLN 50 mil 206 3 6 4 5
Sales of flats in Q1 2012 vs Q1 2011 January February March Total Q1 • J.W. Construction Holding S.A sold 206 units* in Q1 2012. • Other investments planned to launch with sales are in the pipeline * Data on sales include sales of "Oxygen" investment (22 premises) 6
Financial results for Q1 2012 Revenues from sales [PLN mil] Gross margin on sales [%] 62.98% 2,62 p.p. Q1 2011 Q1 2012 Q1 2011 Q1 2012 • Decrease in revenues from sales in Q1 2012 by 62,98%, y/y. • Decrease in gross margin on sales in Q1 2012 by 2,62 p.p y/y. 7
Financial results for Q1 2012 Profit from operating activities [PLN mil] Net profit [PLN mil] 65.19% 87.05% Q1 2011 Q1 2012 Q1 2011 Q1 2012 • Decrease in profit from operating activities in Q1 2012 by 65.19% y/y • Decrease in net profit in Q1 2012 by 87.05% y/y 8
Implementation of the gross profit from sales in Q1 2012 The level of gross profit earned from sales after Q1 2012 is PLN 12.99 mil.The percentage of developer projects recognized in profit from sales: Otherlocations Units recognized in results Q1 2012 vs Q1 2011: Q1 2011 Q1 2012 9
Premises from an offer for recognition in results of subsequent quarters Otherlocations Total * in units 10
Properties diversifications due to market segment, prestige and location COMMERCIAL SEGMENT HOUSING SEGMENT J.W. CONSTRUCTION HOLDING S.A. Zegrze Stryków Cieszyn Tarnowo 1.Centrum I & II 2.Górczewska Park 3.Osiedle Światowida 4.Lewandów Park 5.Zielona Dolina 6.Os. Bursztynowe 7.Słoneczny Park Łódź Hotel 500 chain 2* & 3* Hotels 4* & 5* Krynica Zdroj Sopot Szczecin 1. Czarny Potok 2. JW. - luxlux 3. Stara Dana Warsaw Ożarów Maz Popular Flats Apartments Warsaw OXYGEN Szczecin Hanza Tower Office buildings A Class Warsaw Jerozolimskie Point Villa Campina Exclusive Ożarów Maz Houses prestige location 12
Commercial spaces- a systematic growth in the value of the Company's assets We are building the value for shareholders through a diversification of income sources, what results in a systematic growth of the Company's assets. Usable Space 31,785 m2 4,157 m2 20,500 m2 2,852 m2 4,979 m2 A luxurious guest house - Sopot Stara Dana - hotel project 4* Hanza Tower - office-service project Jerozolimskie Point - office project Czarny Potok- hotel project 4* with 5-star SPA&Wellness complex Target estimated value of facilities is PLN 600 mil 13
An innovative project - Villa Campina Villa Campina is the first prestigious estate of single-family houses in Poland based on an American concept ShowCase House.Its assumption is to present 12 ready to move-in houses diverse in terms of architecture and interior design. ShowCase House concept As the first in Poland, we are offering a prestigious estate of single-family houses, which are created by the inhabitants themselves by selection of plots and projects of houses. From the exposition of 12 types of show houses, the client can select a preferred project and entrust the developer its implementation and all the paperwork associated with it. Numbers Number of undeveloped plots: 194 Total area of undeveloped plots: 162,058m2 Estimated value of utilized plots: PLN 123 mil Ready show houses: 12 (value of PLN 19 million) Number of parcels: 719 m² to 1,387 m² Toal area of houses: 116 m² to 193 m² Distance from Warsaw: about 8 km Distance from Kampinos National Park: 5 km Distance from Ożarów: 5 km 14
Housing investments implemented in Q1 2012 - housing spaces Number of units "Słoneczny Park" "Zielona Dolina I", Zdziarska Street "Osiedle Lewandów I"– buildings 3-6 „Osiedle Światowida” „Osiedle Centrum II", Łódź „Osiedle Centrum II", Łódź "Osiedle Lewandów I"– buildings 3-6 "Zielona Dolina I", Zdziarska Street "Słoneczny Park" „Osiedle Światowida” 12 houses in Ożarów UFS 15
Housing investments - planned to commence • In the nearest 2 years, the Company is planning to introduce to its offer about 6,431 units from the owned land bank, of which 26% will be erected beyond Warsaw Investments in Warsaw and vicinity Investments beyond Warsaw *Investments which are planned to launch in 2012 are in green colour 16
Sales policy of the Company in 2012 • 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, "Move in, then buy" for the investment of Lewandów Park • 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. • Offer of various financing programmes for Customers • Attractive offer of flats that meet the requirements of the government program "Rodzina na swoim" • Individual approach to the customer – the possibility of negotiating the prices depending on the payment amount and schedule 17
Sales policy of the Company in 2012 • 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 18
Investor Relations: Małgorzata Szwarc-Sroka Economy Division and Investor Relations Office HeadDirector of Economic and 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 e-mail.: relacje.inwestorskie @ jwconstruction.com.pl 19