Presentation Q3 2015
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Dom Development S.A. reported strong quarterly results, with record net sales of 640 units in Q3 2015, up 26% year-over-year. The company successfully launched two large projects totaling over 1,600 units. Dom maintained a strong balance sheet with PLN 310 million in cash and low gearing of 7%. For the first three quarters of 2015, Dom reported a net profit of PLN 14.7 million on total revenues of PLN 424.2 million. The company added seven new plots to its Warsaw land bank totaling approximately 2,600 units.
Presentation Q3 2015
- 1. Dom Development S.A. Q3 2015 Results Presentation 23 October 2015
- 2. Presentation Plan 2 Highlights 3 Residential Market Overview 4 Operations: Quarterly Net Sales 5 Dom’s Offer 6 New Construction Starts 7 Units Under Construction and in Preparation 8 Handovers 9 Finance: Profit & Loss Account 10 Balance Sheet 11 Interest-Bearing Debt – Maturity Dates 12 Summary 13 Appendices Appendix 1: Commencement of Handovers in 2015 15 Appendix 2: Dom’s Projects Under Construction and in Land Bank 16-17
- 3. Enjoying a strong market • Record quarterly sales – 640 units net in Q3 2015 (+26% YoY) • Successful launch of two large projects – Premium and Moderna, with over 1,600 units • Two new sites, of over 1,000 units, at the final stage of purchase • Safe cash levels (PLN 310m) and low gearing of 7% 3 Highlights
- 4. • Record sales with stable prices • Supply and demand still in balance • Record-low interest rates drive demand • Strong demand across all primary market segments with high proportion of cash buyers • Homes for the Young support for Warsaw market 4 Residential Market in Q3 2015
- 5. 5 399 427 479 407 483 509 545 467 598 640 0 100 200 300 400 500 600 700 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Quarterly Net Sales No. of units
- 6. Dom’s Offer 6 1 679 1 288 2 163 2 268 2 022 2 292 2 364 2 397 261 473 391 334 312 212 294 357 - 500 1 000 1 500 2 000 2 500 31/12/2013 1 940 31/03/2014 1 761 30/06/2014 2 554 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 Units under construction Units on finished projects No. of units
- 7. New Construction Starts 7 728 297 1 055 345 263 637 752 735 0 200 400 600 800 1 000 1 200 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 2 projects2 projects4 projects 4 projects 4 projects7 projects 1 project 3 projects No. of units
- 8. Units Under Construction and in Preparation 2 601 3 259 3 242 2 927 3 564 3 727 3 989 6 349 5 278 4 937 4 672 6 276 5 762 5 001 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 31/03/2014 30/06/2014 30/09/2014 31/12/2014 31/03/2015 30/06/2015 30/09/2015 Under Construction In preparation 8 No. of units
- 9. Handovers 9 Units sold but not delivered 30.06.2015 30.09.2015 1 607 units 1 769 units, including: • 177 units on finished projects • 1 592 units under construction 508 520 457 383 636 190 375 478 0 100 200 300 400 500 600 700 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 No. of units
- 10. Financial Results Q3 2015 Q3 2014 Change Q1-Q3 2015 Q1-Q3 2014 Change Sales Revenues 193.9 159.9 21.3% 424.2 521.5 (18.7)% Revenue per 1 Unit Delivered (PLNk) 405.7 417.5 (2.8)% 406.7 383.5 6.1% Gross Profit on Sales 37.4 40.2 (6.9)% 93.8 93.8 0.0% Gross Profit Margin 19.3% 25.1% (5.8) pp 22.1% 18.0% 4.1 pp EBITDA 14.4 21.1 (32.0)% 23.9 34.4 (30.6)% EBITDA Margin 7.4% 13.2% (5.8) pp 5.6% 6.6% (1.0) pp Net Profit 9.5 15.3 (37.5)% 14.7 26.2 (44.0)% EPS (PLN) 0.39 0.62 (37.5)% 0.59 1.06 (44.0)% 10IAS 18, PLN m
- 11. Maintaining Strong Balance Sheet 11 Consolidated Balance Sheet IAS 18, PLN m 30.09.2015 30.09.2014 Change Cash 309.9 342.7 (9.6)% Work in Progress 1,329.3 1,058.8 25.5% Units sold and not delivered 1,769 1,198 47.7% Net Debt 60.1 71.3 (15.7)% Equity 817.2 828.5 (1.4)% Gearing (Net Debt/Equity) 7.4% 8.6% (1.2) pp Net Assets per Share (PLN) 32.99 33.45 (1.4)%
- 12. Comfortable Debt Maturity Structure 12 0 120 50 100 50 50 0 20 40 60 80 100 120 140 160 180 by 30.09.2016 by 30.09.2017 by 30.09.2018 by 30.09.2019 by 30.09.2020 Unsecured bonds Bank loans PLN m Cash as of 30/09/2015 – PLN 310m
- 13. Q1-Q3 2015 13 Summary: Seven plots (approx. 2,600 units in total) added to Warsaw land bank, including approx. 1,900 units on the left-bank of the Vistula Five left-bank locations added to offer 3,989 units under construction across 15 projects 2,754 units in our offer at the end of Q3 2015 in 14 locations in Warsaw and 3 in Wroclaw Homes for the Young: approx. 30% of Dom’s offer was eligible for the programme as at the end of Q3 2015 Financial firepower for land purchases and new project starts – PLN 310m in cash and 7% gearing Net profit of PLN 9.5m in Q3 2015, giving PLN 14.7m net profit for Q1-Q3 2015
- 14. Appendices
- 15. 15 Project No. of units in project Commencement of handovers Q2 Oaza ph 3 (Wrocław) 234 June 2015 Saska Apartamenty n. Jeziorem ph 1 172 June 2015 Wilno II ph 1 183 June 2015 Q3 Palladium ph 2 245 July 2015 Żoliborz Artystyczny ph 3 228 August 2015 Q4 Aura 1a (Wrocław) 124 October 2015 Wilno 2a ph 2 156 October 2015 Willa Lindego 129 October 2015 Saska Apartamenty n. Jeziorem ph 2 240 November 2015 Osiedle Pod Różami 110 November 2015 Żoliborz Artystyczny ph 4 225 November 2015 Rezydencja Mokotów 142 December 2015 Al. Piastów (Wrocław) 177 December 2015 Appendix 1: Commencement of handovers in 2015
- 16. 16 Appendix 2: Projects Under Construction and in Preparation no. of units, as of 30/09/2015 PROJECT UNDER CONSTRUCTION IN PREPARATION WILLA LINDEGO 129 --- PREMIUM (PEŁCZYŃSKIEGO) 213 708 ŻOLIBORZ ARTYSTYCZNY 605 403 OSIEDLE PRZYJACIÓŁ 205 101 WILLE LAZUROWA 166 --- REZYDENCJA MOKOTÓW 142 --- OSIEDLE POD RÓŻAMI 110 --- NOWOSOLIPSOWSKA --- 114 STUDIO MOKOTÓW (GARAŻOWA) 329 --- DOM POD ZEGAREM (BUKOWIŃSKA) 235 --- BUKOWIŃSKA NAD SKARPĄ --- 211 BUKOWIŃSKA III --- 181 ANODY --- 207 TOTAL LEFT BANK 2 134 1 925 PROJECT UNDER CONSTRUCTION IN PREPARATION REGATY --- 217 PALLADIUM (AKACJE) --- 780 KLASYKÓW 235 204 MODERNA (MALBORSKA) 171 593 WILNO 608 744 APARTAMENTY SASKA NAD JEZIOREM 476 --- SASKA III --- 383 TOTAL RIGHT BANK 1 490 2 921 Warsaw PROJECT IN PREPARATION PROJECT UNDER CONSTRUCTION
- 17. 17 TOTAL UNDER CONSTRUCTION IN PREPARATION FINISHED WARSAW 3 624 4 846 22 812 WROCLAW 365 155 480 DOM 3 989 5 001 23 292 PROJECT UNDER CONSTRUCTION IN PREPARATION AL. PIASTÓW 177 ---- AURA 188 155 WROCLAW 365 155 Wroclaw Appendix 2, p.2: Projects Under Construction and in Preparation no. of units, as of 30/09/2015 PROJECT IN PREPARATION PROJECT UNDER CONSTRUCTION
- 18. 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. 18 For further information, please contact: Magdalena Kempa Investor Relations Specialist tel. +48 22 351 68 49 e-mail: magdalena.kempa@domd.pl www.inwestor.domdevelopment.com.pl