Presentation q3 2016
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Dom Development S.A. reported record high quarterly sales of 705 units in Q3 2016. Net profit for the quarter was PLN 16.8 million. The company has strong cash reserves of PLN 280 million and low gearing of 11%. Dom Development has 23 projects under construction containing 3,886 units and 7 projects in preparation that will contain over 7,000 additional units. Residential market conditions remain strong with stable prices and balanced supply and demand.
Presentation q3 2016
- 1. Dom Development S.A. Q3 2016 Results Presentation 25 October 2016
- 2. Highlights 2 Q3 2016 • Record high quarterly sales – 705 units • 2 new sites purchased with development potential of 777 units • Net profit of PLN 16.8 m • Safe cash levels (PLN 280 m) and low gearing: 11%
- 3. Residential Market in Q3 2016 • Strong sales with stable prices • Supply and demand still balanced • Record low interest rates support demand • Increasing share of cash buyers – approx. 40% of overall transactions at Dom Development • High competition on land market 3
- 4. Quarterly Net Sales 4 479 407 483 509 545 467 598 640 678 615 701 705 0 100 200 300 400 500 600 700 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 No. of units
- 5. 5 Sales segmentation based on transaction value 36% 32% 28% 26% 27% 24% 26% 24% 24% 28% 18% 17% 36% 35% 36% 37% 37% 35% 32% 33% 29% 23% 22% 23% 15% 17% 18% 18% 18% 22% 21% 24% 23% 21% 25% 26% 13% 15% 18% 19% 18% 20% 21% 19% 24% 28% 35% 34% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 up to PLN 350k 350-450k 450-550k over PLN 550k * Transaction value includes price of a flat with fit-out (if purchased), storage room (if purchased) and parking space (if purchased).
- 6. Dom’s Offer 6 2 022 2 292 2 364 2 397 1 696 1 548 2 505 2 214 312 212 294 357 557 547 506 451 - 500 1 000 1 500 2 000 2 500 3 000 31/12/2014 2 334 31/03/2015 2 504 30/06/2015 2 658 30/09/2015 2 754 31/12/2015 2 253 31/03/2016 2 095 30/06/2016 3 011 30/09/2016 2 665 Units under construction Finished units No. of units
- 7. New Construction Starts 7 263 637 752 735 279 426 1 349 557 0 200 400 600 800 1 000 1 200 1 400 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 4 projects3 projects2 projects4 projects 4 projects 8 projects1 project 3 projects No. of units
- 8. Units under construction and in preparation 2 927 3 564 3 727 3 989 2 958 3 085 3 935 3 886 4 672 6 276 5 762 5 001 6 504 6 648 6 734 7 016 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 31/12/2014 31/03/2015 30/06/2015 30/09/2015 31/12/2015 31/03/2016 30/06/2016 30/09/2016 Under construction In preparation 8 No. of units
- 9. Handovers 9 Units sold but not delivered (presales) 30.06.2016 30.09.2016 1 923 units 2 128 units, including: • 456 finished units • 1 672 units under construction 636 190 375 478 1 019 256 564 500 0 200 400 600 800 1000 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 No. of units
- 10. 10 Cumulative net sales to be recognized in P&L PLN m 200 300 400 500 600 700 800 900 1 000 1 100 I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX 2013 2014 2015 2016
- 11. Financial Results Summary Q3 2016 Q3 2015 Change Q1-Q3 2016 Q1-Q3 2015 Change Sales Revenues 218.2 193.9 13% 585.9 424.2 38% Gross Profit on Sales 49.4 37.4 32% 129.3 93.8 38% Gross Profit Margin 22.6% 19.3% 3.4 pp 22.1% 22.1% - Operating Profit 21.0 13.2 59% 51.6 20.7 149% Operating Profit Margin 9.6% 6.8% 2.8 pp 8.8% 4.9% 3.9 pp Profit Before Tax 20.9 12.4 69% 50.4 18.8 168% Net Profit 16.8 9.5 76% 40.4 14.7 175% EPS (PLN) 0.68 0.39 74% 1.63 0.59 176% 11 IAS 18, PLN m
- 12. Balance Sheet and Profitability 12 Consolidated Balance Sheet IAS 18, PLN m 30.09.2016 30.09.2015 Change Shareholders’ funds (equity) 843.5 817.2 3% Net debt* 90.1 60.1 50% Gearing (net debt/equity) 10.7% 7.4% 3.3 pp Net asset value per share (PLN) 34.04 32.99 3% Shares in issue (m) 24.8 24.8 - ROE (12M) 13.0% 5.4% 7.6 pp ROCE (12M) 12.2% 4.8% 7.4 pp *Bank debt plus bonds in issue less cash at banks (including escrow accounts)
- 13. Debt Maturity Structure 13 120 50 100100 0 20 40 60 80 100 120 140 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 30/09/2016 – PLN 280m
- 14. Q1-Q3 2016 14 Summary: 3,886 units under construction on 23 projects 2,665 units in Dom’s offer as of September 2016 2,021 units sold in Q1-Q3 2016 , with a record high 705 units in Q3 New land for approx. 2,800 units: Sobieskiego, Kowalczyka, further phases of Wilno, Marina Mokotów, and Przy Parku Cash resources for land purchases and new project starts: PLN 280m of cash and low net debt Q1-Q3 2016 net profit of PLN 40.4m, with PLN 16.8m in Q3
- 15. Appendices
- 16. 16 Project No. of units in project Commencement of handovers Q1 Aura phase 1B (Wroclaw) 64 March 2016 Q2 Wille Miejskie Klasyków phase 1 235 April 2016 Wilno II phase 2 263 May 2016 Apartamenty Saska nad Jeziorem phase 3 236 June2016 Q3 Wille Lazurowa 166 September 2016 Osiedle Przyjaciół phase 1 116 September 2016 Osiedle Przyjaciół phase 2 89 September 2016 Q4 Dom Pod Zegarem 235 October 2016 Wilno II phase 3 189 October 2016 Studio Mokotów 329 November 2016 Żoliborz Artystyczny phase 8 218 November 2016 Żoliborz Artystyczny phase 9 162 November 2016 Appendix 1: Commencement of handovers in 2016 Commencement of handovers: on schedule/ earlier / delayed
- 17. 17 NO PROJECT UNDER CONTRUC TION IN PREPARATIO N 1 ŻOLIBORZ ARTYSTYCZNY 783 --- 2 PREMIUM 442 486 3 OS. PRZYJACIÓŁ 95 --- 4 WŁODARZEWSKA 30 (NOWOSOLIPSOWSKA) 123 --- 5 OS. POD RÓŻAMI III 50 --- 6 PRZY PARKU (NEW) --- 46 7 MARINA MOKOTÓW (NEW) --- 731 8 STUDIO MOKOTÓW 329 --- 9 APARTAMENTY MOKOTÓW NAD SKARPĄ (BUKOWIŃSKA II) 184 --- 10 BUKOWIŃSKA III --- 181 11 CYBERNETYKI --- 600 12 TANECZNA 119 --- 13 URSYNOVIA (ANODY) 190 --- 14 SOBIESKIEGO --- 153 TOTAL LEFT BANK 2 315 2 197 NO PROJECT UNDER CONTRUCTION IN PREPARATION 15 REGATY --- 217 16 PALLADIUM (AKACJE) 214 566 17 KLASYKÓW 204 --- 18 KOWALCZYKA --- 792 19 MODERNA 365 442 20 SAMARYTANKA --- 581 21 WILNO 429 1 556 22 MOTOROWA --- 493 23 SASKA III 359 --- TOTAL RIGHT BANK 1 571 4 647 Warsaw TOTAL UNDER CONSTRUCTION IN PREPARATION FINISHED WARSAW 3 886 6 844 25 278 WROCLAW (AURA PROJECT) --- 172 721 DOM 3 886 7 016 25 999 1 2 4 5 8 12 9 15 16 19 23 22 14 17 18 20 21 7 6 13 11 3 10 Appendix 2: Projects Under Construction and in Preparation no. of units, as of 30/09/2016 PROJECT IN PREPARATION PROJECT UNDER CONSTRUCTION
- 18. 18 For further information, please contact: Magdalena Cumanis Investor Relations tel. +48 22 351 68 49 e-mail: magdalena.cumanis@domd.pl www.inwestor.domdevelopment.com.pl 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.