Presentation H1 2016 Investors

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  • Dom Development S.A.

    H1 2016 Results Presentation 25 August 2016

  • Highlights

    2

    Q2 2016

    Record high quarterly sales 701 units

    Launch of 1 349 units across 8 projects

    4 new sites purchased with development potential of 2 154 units*

    Net profit of PLN 18.4m

    Safe cash levels (PLN 353m) and negative net debt

    *including Marina Mokotw with ~750 units purchased in July 2016

  • Residential Market in Q2 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

    3

  • 4

    427

    479

    407

    483509

    545

    467

    598

    640678

    615

    701

    0

    100

    200

    300

    400

    500

    600

    700

    Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

    Quarterly Net Sales

    No. of units

  • 5

    Sales segmentation based on transaction value

    27% 36% 32% 28% 26% 27% 24% 26% 24% 24% 28%

    18%

    39%

    36% 35%

    36% 37% 37% 35% 32% 33% 29% 23%

    22%

    16% 15%

    17% 18% 18% 18%

    22% 21% 24% 23%

    21%

    25%

    17% 13% 15% 18% 19% 18% 20% 21% 19% 24% 28% 35%

    Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 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

    2 268 2 022

    2 292 2 364 2 397

    1 696 1 548

    2 505

    334

    312

    212 294 357

    557 547

    506

    -

    500

    1 000

    1 500

    2 000

    2 500

    3 000

    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

    31/12/2015 2 253

    31/03/2016 2 095

    30/06/2016 3 011

    Units under construction Finished units

    Doms Offer

    No. of units

  • 7

    345263

    637

    752 735

    279

    426

    1 349

    0

    200

    400

    600

    800

    1 000

    1 200

    1 400

    Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

    2 projects 3 projects 2 projects 4 projects 4 projects 8 projects 1 project 3 projects

    New Construction Starts

    No. of units

  • 3 242 2 927 3 564 3 727

    3 989

    2 958 3 085

    3 935

    4 937 4 672

    6 276 5 762

    5 001

    6 504 6 648 6 734

    0

    1 000

    2 000

    3 000

    4 000

    5 000

    6 000

    7 000

    30/09/2014 31/12/2014 31/03/2015 30/06/2015 30/09/2015 31/12/2015 31/03/2016 30/06/2016

    Under construction In preparation

    8

    Units under construction and in preparation

    No. of units

  • 9

    Units sold but not delivered (presales)

    31.03.2016 30.06.2016

    1 786 units

    1 923 units, including:

    289 finished units 1 634 units under construction

    383

    636

    190

    375478

    1 019

    256

    564

    0

    200

    400

    600

    800

    1000

    Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

    Handovers

    No. of units

  • 10

    Cumulative net sales to be recognized in P&L

    PLN m

    200

    300

    400

    500

    600

    700

    800

    900

    1 000

    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

    2013 2014 2015 2016

  • Financial Results Summary

    Q2 2016 Q2 2015 Change H1 2016 H1 2015 Change

    Sales Revenues 228.7 157.8 45% 367.7 230.3 60%

    Gross Profit on Sales 48.1 38.2 26% 79.9 56.5 41%

    Gross Profit Margin 21.1% 24.2% -3.1 pp 21.7% 24.5% -2.8 pp

    Operating Profit 23.2 13.2 76% 30.6 7.5 309%

    Operating Profit Margin 10.2% 8.3% 1.8 pp 8.3% 3.2% 5.1 pp

    Profit Before Tax 23.2 13.0 79% 29.6 6.4 359%

    Net Profit 18.4 10.6 75% 23.5 5.1 358%

    EPS (PLN) 0.74 0.43 73% 0.95 0.21 352%

    11 IAS 18, PLN m

  • Balance Sheet and Profitability

    12

    Consolidated Balance Sheet IAS 18, PLN m

    30.06.2016 30.06.2015 Change

    Shareholders funds (equity) 826.6 807.7 2%

    Net debt* -2.9 69.7 n.a.

    Capital Employed 823.6 877.4 -6%

    Gearing (net debt/equity) -0.4% 8.6% -9,0 p.p.

    Net asset value per share (PLN) 33.35 32.61 2%

    Shares in issue (m) 24.8 24.8 0%

    ROE (12M) 12.3% 6.2% 6.1 pp

    ROCE (12M) 12.2% 5.5% 6.7 pp

    *Bank debt plus bonds in issue less cash at banks (including escrow accounts)

  • 13

    120

    50

    100

    30

    50

    0

    20

    40

    60

    80

    100

    120

    140

    160

    by 30.06.2017 by 30.06.2018 by 30.06.2019 by 30.06.2020

    Unsecured bonds Bank Loans

    PLN m

    Cash as of 30/06/2016 PLN 353m

    Debt Maturity Structure

  • H1 2016

    14

    Summary:

    3 935 units under construction on 23 projects

    3 011 units in Doms offer as of June 2016

    1 316 units sold in H1 2016, with record high 701 units in Q2

    New land for over 2 700 units: Sobieskiego, Kowalczyka, further phases of

    Wilno, and Marina Mokotw

    Cash resources for land purchases and new project starts: PLN 353m of cash

    and no net debt

    H1 2016 net profit of PLN 23.5m, with PLN 18.4m in Q2

  • Appendices

  • 16

    Project No. of units in

    project Commencement of

    handovers

    Q1 Aura phase 1B (Wroclaw) 64 March 2016

    Q2

    Wille Miejskie Klasykw 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 Przyjaci phase 1 116 September 2016

    Osiedle Przyjaci phase 2 89 September 2016

    Q4

    Dom Pod Zegarem 235 October 2016

    Wilno II phase 3 189 November 2016

    Studio Mokotw 329 November 2016

    oliborz Artystyczny phase 8 218 November 2016

    oliborz Artystyczny phase 9 162 November 2016

    Commencement of handovers: on schedule/ earlier / delayed

    Appendix 1:

    Commencement of handovers in 2016

  • 17

    NO PROJECT UNDER

    CONTRUCTION IN

    PREPARATION

    1 OLIBORZ ARTYSTYCZNY 783 ---

    2 PREMIUM 442 471

    3 OSIEDLE PRZYJACI 300 ---

    4 WILLE LAZUROWA 166 ---

    5 WODARZEWSKA 30 (NOWOSOLIPSOWSKA)

    --- 114

    6 OS. POD RAMI III 50 ---

    7 STUDIO MOKOTW 329 ---

    8 DOM POD ZEGAREM 235 ---

    9 APARTAMENTY MOKOTW NAD SKARP (BUKOWISKA II)

    184 ---

    10 CYBERNETYKI --- 600

    11 BUKOWISKA III --- 181

    12 TANECZNA --- 115

    13 URSYNOVIA (ANODY) 190 ---

    14 SOBIESKIEGO (NEW) --- 153

    15 MARINA MOKOTW (purchased in July 2016)

    --- 750

    TOTAL LEFT BANK 2 679 2 384

    NO PROJECT UNDER

    CONTRUCTION IN

    PREPARATION

    16 REGATY --- 217

    17 PALLADIUM (AKACJE) 214 566

    18 KLASYKW --- 204

    19 KOWALCZYKA (NEW) --- 792

    20 MODERNA 365 424

    21 SAMARYTANKA --- 581

    22 WILNO (+459) 318 1 668

    23 MOTOROWA --- 493

    24 SASKA III 359 ---

    TOTAL RIGHT BANK 1 256 4 945

    Warsaw

    TOTAL UNDER

    CONSTRUCTION IN PREPARATION FINISHED

    WARSAW 3 935 7 329 24 672

    WROCLAW (AURA PROJECT)

    --- 155 721

    DOM 3 935 7 484 25 393

    1 2

    4 3

    5 6

    7 8 11

    12 13

    9 10

    16

    17

    20

    24 23

    14

    18

    19

    21 22

    Appendix 2:

    Projects Under Construction and in Preparation no. of units, as of 30/06/2016

    PROJECT IN PREPARATION

    PROJECT UNDER CONSTRUCTION

    15

  • 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.