HI 2013 FINANCIAL RESULTS

Transcription

1 Warsaw, September 11th 2013 INVESTOR PRESENTATION HI 2013 FINANCIAL RESULTS POLNORD SA CAPITAL GROUP

2 DISCLAIMER This report has been prepared solely for information purposes and is not intended to incite to buy or sell any financial instruments. This report does not constitute an advertisement, offer or suggestion to purchase financial instruments. Sources of information used are considered by Polnord SA reliable and accurate, but there is no guarantee that they are complete and fully reflect the actual state. The presentation may contain forward-looking statements, which represent investment risk or source of uncertainty and may differ materially from actual results. Polnord SA is not responsible for the effects of decisions made on the basis of this study. Information contained in this presentation should not be treated as a source of knowledge sufficient to make an investment decision. Responsibility for the use of the information contained in the paper rests solely with the users of the presentation. This report is copyright protected. Copying, publishing or distribution requires written permission from Polnord SA. 2

3 SPIS TREŚCI H OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING PROJECTS UNDER CONSTRUCTION 3

4 WYBRANE DANE FINANSOWE ZA IH2013 SALES REVENUE [THOUSANDS PLN] GROSS PROFIT ON SALES /NET PROFIT [THOUSANDS PLN] Gross profit on sales Net profit Q Q Q Q Q Q Q Q Q Q Q Q SALES & DELIVERIES [UNITS] GENERAL ADMINISTRATIVE AND SELLING EXPENSES [THOUSANDS PLN] units 400 kpln Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 Deliveries Net sales 4

5 SIGNIFICANT EVENTS Operations Joint Venture Agreement with Group Waryński to construct a development project Stacja Kazimierz in Warsaw (total usable area 45 thousand sqm., value in current net prices 300 mpln, planned commencement of phase 1 in Q apartments). Joint Venture Agreement with Semeko to continue the construction of the development project Aquasfera in Reda near Gdynia (total usable area 29,5 thousand sqm., 550 apartments, value in current net prices 125 mpln). Significant improvement of sales: monthly average net sales of 100% subsidiaries of Polnord in H apartments, in July 55 apartments, in August 62 apartments, monthly average net sales of Fadesa Polnord Polska in H apartments, in July 37 apartments, in August 19 apartments. August 2013 commencement of new investments by 100% subsidiaries of Polnord in Ząbki near Warsaw (Neptun) and Gdańsk (Dwa Tarasy), as well as phase 3 of project Śródmieście Wilanów in Warsaw (within the framework of launched phases a total of 460 apartments of total usable area of 23 thousand sqm. will be constructed). Preparation to launch within the coming year of new investments in Warsaw, Gdynia, Reda, Olsztyn and Wrocław. A total of ca apartments with usable area of 53,4 thousand sqm. will be build within the framework of phases commenced. Debt management and indemnities Submission of a statement of claim against Miejskie Przedsiębiorstwo Wodociągów i Kanalizacji w m.st. Warszawie SA ("MPWiK") for take-over, for remuneration of 57,3 mpln, of a part of the water and sewage network, constructed during the investment of Miasteczko Wilanów in Warsaw. Submission of a statement of claim against the Capital City of Warsaw for indemnity for damage incurred by the Company as a result of unlawful decisions on refusal to pay indemnity for public roads in Wilanów in the amount of 140 mpln. Submission of an application with the Capital City of Warsaw on payment of indemnities for plots located in the district of Wilanów in Warsaw separated for public roads in the amount of 182,2 mpln. Repayment of development loans on projects City Park in Łódź and Śródmieście Wilanów building C in Warsaw. Upcoming bond redemption dates: mpln, ,4 mpln. Q planned issue of bonds at total par value up to 50 mpln with three-year maturity. Reduction of operation costs Lowest since 2007 general administrative and selling expenses in the amount of 17,2m PLN in 2013 IH (decrease by 31% compared to 2012 IH). 5

6 H OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING PROJECTS UNDER CONSTRUCTION 6

7 DELIVERIES AND MARGINS IN H DELIVERIES AND REVENUES RECOGNIZED IN THE FINANCIAL STATEMENT units Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 WARSAW PROJECT UNITS DELIVERED UNITS SOLD TO BE DELIVERED REVENUES [KPLN] % GROSS PROFIT [KPLN] MARGIN Ostoja Wilanów % % Królewskie Przedmieście % % Dobry Dom % % TRICITY Ostoja Myśliwska II % % 2 Potoki I % % Sopocka Rezydencja % % Osiedle Guderskiego I % 49 5 % GROSS RENTABILITY ON SALES 16% Deliveries Net sales OLSZTYN Osiedle Tęczowy Las (bud.4) SZCZECIN % % Ku Słońcu I % % 14% 12% 13,1% 13,4% 13,3% Ku Słońcu II (bud. 2) % % ŁÓDŹ 10% City Park % % 8% 9,2% WROCŁAW Osiedle Innova % % 6% 6,4% TOTAL % % 4% 2% 4,5% ATTENTION: Data not weighted by Polnord s share in the project 0% 1Q Q Q Q Q Q

8 SALES AND OFFER GROSS SALES *Q sales estimate based on the assuption that sales in September will be equal to average sales in July and August OFFER AS AT Gross sales in H equal to 439 units, 410 units accounting for annulations Gross sales in Q equal to 221 units, 212 units accounting for annulations 12 reservation agreements signed in H Sales in July 2013 equal to 92 units accounting for annulations Sales in August 2013 equal to 81 units accounting for annulations, 62 of which were sold by subsidiaries 100% owned by Polnord Level of sales positively influenced in coming periods by the commencement, individually or jointly with partners, of new investments Offer as at : 1177 apartments, comprising 388 completed units and 789 units under construction Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 Offer Units under construction Units completed 8

9 PROJECTS TO BE LAUNCHED Brama Sopocka sqm. usable area 120 units Phase I: sqm.usable area, 42 units Planned commencement 4Q2013 Planned completion 4Q2015 Dwa Tarasy sqm. usable area 334 units Phase I: sqm. usable area, 162 units Launched 3Q2013 Planned completion 3Q2014 Osiedle Tęczowy Las (build. 6) sqm. usable area 149 units Planned commencement 3Q2013 Planned completion 2Q2015 Aquasfera (Reda near Gdynia) sqm. usable area 550 units Build. T2: sqm. usable area, 215 units Planned commencement 3Q2013 Planned completion 4Q2013/4Q2014 Neptun (Ząbki near Warsaw) sqm. usable area 600 units Phase IA: sqm. usable area, 109 units Launched 3Q2013 Planned completion 3Q2015 Osiedle Moderno sqm. usable area 158 units Planned commencement 4Q2013 Planned completion 2Q2015 Śródmieście Wilanów, build. D sqm. usable area 189 units Launched 3Q2013 Planned completion 2Q2015 Ostoja Wilanów (Phase VI, build. C2) sqm. usable area 184 units Planned commencement 4Q2013 Planned completion 1/2Q2014 Miniapartaments in Wilanów sqm. usable area 800 units Phase I: sqm. usable area, 200 units Planned commencement 1/2Q2014 Planned completion 1/2Q2015 Stacja Kazimierz sqm. usable area 450 units Phase I: sqm. usable area, 165 units Planned commencement 1Q2014 Planned completion 4Q2017 9

10 RENTABILITY OF NEW PROJECTS Location Investment Total UA* Estimated number of apartments Planned gross sale price PLN/sqm. UA Direct costs excluding financial costs per sqm. UA** Direct margin on sales % Direct margin on sales PLN/sqm. UA Direct costs assigned to land [mpln]*** Total direct margin [mpln] Estimated net operational inflow [mpln]**** Warsaw Wilanów Śródmieście Wilanów build. D % ,2 12,4 28,6 Warsaw Wilanów Warsaw Ząbki Miniapartaments % ,0 30,0 83,0 Neptun % ,3 32,3 50,6 Gdynia Brama Sopocka % ,4 9,8 19,2 Gdańsk Dwa Tarasy % ,9 19,7 27,6 Olsztyn OTL phase II build % 855 1,8 5,8 7,6 TOTAL ,5 110,0 216,5 * UA usable area ** direct costs include costs of purchase of land, project costs and construction costs *** as at land is owned by the Capital Group, undertaking new investments will enable the recovery of incurred expenditures **** net inflow calculated as the inflow stemming from sales contracts reduced by direct costs and increased by value of land Projects to be undertaken by subsidiaries 100% owned by Polnord High rate of return between 20% - 30% Construction on land owned by Polnord Capital Group Estimated total direct margin 110 mpln Estimated net operational inflow 216,5 mpln 10

11 H OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING PROJECTS UNDER CONSTRUCTION 11

12 PROFIT AND LOSS ACCOUNT Gross profit on sales the result of lease of office space (4.177 kpln) and delivery of 246 units (3.318 kpln) SPECIFICATION (THOUSAND PLN) 1H2013 1H2012 2Q2013 2Q2012 Sales revenue Prime cost of sales ( ) ( ) ( ) ( ) Gross profit (loss) on sales Revaluation of investment property: building B3 in Wilanów Office Park due to advanced progress of commercialization (ca. 90%) Plots in Sopot due to changes in the local area development plan Revaluation of investment property General administrative and selling expenses ( ) ( ) ( 8 518) ( ) Other operating revenue Other operating expenses ( 7 878) ( 8 227) ( 1 201) ( 478) Gross operating profit (loss) Financial revenue Financial expenses ( ) ( ) ( ) ( ) Further decrease of SG&A costs by 31% y/y Share in profit of associated company ( 122) ( 28) Gross profit (loss) Decrease of the value of other operating revenue stemming from recognition in 2H 2012 of a one-off revenue from indemnities in the amount of 83,3 mpln Income tax ( 2 562) (9 894) ( 446) ( 8 007) Net profit (loss) on continued operations Net profit (loss) on discontinued operations 143 (241) Net profit (loss)

13 BALANCE SHEET - ASSETS SPECIFICATION (THOUSAND PLN) Non-current assets Property, plant and equipment Investment property Intangible assets Investments in associates measured with equity method 3 Financial assets Deferred tax assets Long-term receivables Goodwill Current assets Inventory Trade and other receivables Other short-term financial assets Receivables due to VAT and other taxes Receivables due to income tax Payments Cash and cash equivalents TOTAL ASSETS

14 millnion PLN million PLN BALANCE SHEET - ASSETS STRUCTURE OF INVENTORY ,4 662,2 667,3 0,3 26,7 0,1 26,7 1,0 26,7 358,6 361,8 354,7 INVENTORY LAND BANK AS AT Wrocław; 17,3m PLN Ząbki near Warsaw; 18,9m PLN Bartąg, near Olsztyn; 7,6m PLN Tricity; 56,2m PLN Lublin; 6,4m PLN ,2 164,5 190,0 Łódź; 47,4m PLN ,6 109,2 94, Warsaw; 167,5m PLN Szczecin; 33,4m PLN Units completed Units under construction Land bank Infrastructure Other STRUCTURE OF INVESTMENT PROPERTY INVESTMENT PROPERTY LAND BANK AS AT ,0 1000,0 800,0 947,7 973,2 990,7 33,2 34,4 71,6 94,7 33,7 96,9 93,0 93,0 93,0 Warsaw, Wilanów; 505,2m PLN 600,0 400,0 749,9 751,0 767,1 200,0 0, Land bank Office building B1 (Wilanów) Office building B3 (Wilanów) Stroj-Dom (Russia) Other; 3m PLN Dobrzewino, municipality Szemud; 16,1m PLN Sopot; 59,7m PLN Kowale near Gdańsk; 9,5m PLN Dopiewiec near. Poznań; 122,3m PLN Łódź; 40m PLN Jastarnia - Jurata; 4,7m PLN Głowsków near Piaseczno; 6,5m PLN 14

15 WARSAW, DISTRICT WILANÓW LAND BANK List of land plots of highest value in Miasteczko Wilanów in Warsaw No. of plot Area [sqm.] Value in the financial report [kpln] Investment plans 2/ / / /96 2/ Area adjacent to the planned southern ring road S2 of Warsaw. Area development plan allows the construction of apartments and services. Potential to construct 90 thousand sqm. of residential usable area. Polnord does not plan to launch any development projects on this land plot in the nearest 3 years. Area designated for housing and public utility facilities as well as sports and recreational facilities. Polnord does not plan to launch any development projects on this land plot in the nearest 3 years. Moreover, Polnord considers the possibility to apply for a change in the area development plan for this land plot. Area assigned to the project "Miniapartaments", the launch of which will take place in These plots consitute a complex located in the vicinity of the planned ring road S2. In 2014 Polnord plans to begin work on the project of a residential estate of total usable area of 30 thousand sqm. Land plot no. 9 is located in the vicinity of plots no. 2/96 and 2/228. This area is designated for a residential project of total usabel area of 20 thousand sqm. 2/115 2/ Polnord is negotiating the sale of this land plot. TOTAL

16 WARSAW, DISTRICT WILANÓW LAND BANK MAP 16

17 BALANCE SHEET EQUITY AND LIABILITIES SPECIFICATION (THOUSAND PLN) Equity Long-term liabilities Interest-bearing bank loans and borrowings Provisions Other liabilities Deferred income tax provision Accruals Short-term liabilities Trade and other liabilities Current long-term portion of bank loans and borrowings Short-term revolving loans 788 Other short-term loans and borrowings Liabilities due to VAT and other taxes Liabilities due to income tax Accruals Advance payments received Provisions Total liabilities TOTAL EQUITY AND LIABILITIES

18 SCHEDULE OF REPAYMENT OF INTEREST-BEARING DEBT DEBT [M PLN] Q Q TOTAL Residential projects 1,1 6,9 44,9 20,6 18,1 91,6 Commercial projects 1,2 0,5 2,0 2,0 97,5 103,2 Current loans 80,2 80,2 Debt stemming from issued bonds 4,5 35,4 18,5 114,0 180,0 352,4 Loans of Fadesa Polnord Polska Group 7,6 18,9 26,5 Other (including FPP loans) 30,0 8,5 38,5 TOTAL 6,8 72,8 153, ,6 692,4 Cash and cash equivalents as at NET DEBT as at ,4 NET INTEREST-BEARING DEBT AS AT % ,7 684,0 639,3 635,9 636,7 640,4 90% 80% 70% % % % 200 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q % Net debt (mpln) Net debt to equity ratio (%) [right scale] 18

19 1H 2013 OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING PROJECTS UNDER CONSTRUCTION 19

20 COMPENSATORY DAMAGES FOR ROADS AND INFRASTRUCTURE The judgement of the Supreme Administrative Court fully confirms Polnord's legal position regarding the Company's claim for compensation. CLAIMS SOLD COMPENSATORY DAMAGES DUE FROM THE CAPITAL CITY OF WARSAW FOR LAND PLOTS ASSIGNED FOR PUBLIC ROADS DATE OF SALE AREA SUBJECT TO COMPENSATION SALE PRICE POTENTIAL INFLOWS Receivable I (sold to Polski Bank Przedsiębiorczości) ,9 ha 101,5 mpln - Receivable Ii (sold to Polski Bank Przedsiębiorczości) ,74 ha 43,4 mpln - Additional agreement (participation in amounts exceeding 144,9 mpln) mpln 5 mpln CLAIMS SETTLED BEFORE COURT COMPENSATORY DAMAGES DUE FROM THE CAPITAL CITY OF WARSAW FOR LAND PLOTS ASSIGNED FOR PUBLIC ROADS DATE OF SUBSMISSION COMPENSATORY CLAIM STATUS VALUE OF RECEIVABLE IN THE CONSOLIDATED FINANCIAL REPORT Claim for indemnity for damage incurred by the Company as a result of unlawful decisions on refusal to pay indemnity for public roads mpln summons to a conciliation hearing - Claim for indemnity for plots (10 ha) assigned for public roads in Wilanów, Warsaw ,2 mpln In progress 39,9 mpln COMPENSATORY DAMAGES DUE FROM MPWIK* FOR WATER AND SEWERAGE INFRASTRUCTURE DATE OF SUBSMISSION COMPENSATORY CLAIM STATUS VALUE OF RECEIVABLE IN THE CONSOLIDATED FINANCIAL REPORT Claim for compensation for usufruct of water and sewerage utilities in Miasteczko Wilanow on a non-contractual basis ,8 mpln In progress (value of claim increases with time) Claim to take-over, for compensation, part of the water and sewage network, constructed during the investment of Miasteczko Wilanów in Warsaw Claim to take-over, for compensation of the sanitary sewage network constructed during the investment of Miasteczko Wilanów in Warsaw ,3 mpln In progress - ca. 55 mpln In preparation 72 mpln *MPWiK - Miejskie Przedsiębiorstwo Wodociągów i Kanalizacji (Municipal Water and Wastewater Company) 20

21 H OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING PROJECTS UNDER CONSTRUCTION 21

22 MARKET FOR PUBLIC HOUSING Statutory task of municipalties: creation of conditions to meet housing needs of self-government community Tight budget of local self-governments: necessity to complete ongoing investment projects (especially infrastructural projects) restrictions on further indebtedness of municipalities pressure to reduce public debt extension of municipality obligations successive take-over of responsabilities for indebtedness of self-government legal persons (such as Independent Public Health Care institutions), cultural institutions and municipal companies (including guarantees) Only public flats delivered each year in Poland ie. on average 1 flat/municipality/year Estimated deficit of public flats for the less affluent in Poland = flats URGENT ISSUE FOR LOCAL SELF-GOVERNMENTS (see Supreme Audit Office report ) Well adjusted offer of public flats (product + financing structure) 22

23 H OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING PROJECTS UNDER CONSTRUCTION 23

24 PROJECTS UNDER CONSTRUCTION Śródmieście Wilanów, build. A Location : Warsaw Commenced 3Q2011 Planned completion 3Q sqm. usable area 170 units, available 37 units* Śródmieście Wilanów, build. C Location : Warsaw Commenced 3Q2012 Planned completion 3Q sqm. usable area 162 units, available 57 units* Śródmieście Wilanów, build. D Location : Warsaw Commenced 3Q2013 Planned completion 2Q sqm. usable area 189 units, available 189 units* * Offer as at

25 PROJECTS UNDER CONSTRUCTION Neptun, phase IA Location: Ząbki near Warsaw Commenced 3Q2013 Planned completion 3Q sqm. usable area 109 units, available 109 units* Osiedle Tęczowy Las (build. 5) Location: Bartąg near Olsztyn Commenced 1Q2012 Planned completion 3Q sqm. usable area 103 units, available 64 units* Ku Słońcu (phase 2, building 1) Location : Szczecin Commenced 2Q2012 Planned completion 4Q sqm. usable area 158 units, available 158 units* 2 Potoki (phase 2, buildings 6-9) Location : Gdańsk Commenced 2Q2012 Planned completion 3Q sqm. usable area 162 units, available 138 units* * Offer as at

26 PROJECTS UNDER CONSTRUCTION Dwa Tarasy (etap I) Location: Gdańsk Commenced 3Q2013 Planned completion 3Q sqm. usable area 162 units, available 162 units* Osiedle Innova (phases 4/5) Location: Wrocław Commenced 1Q2012/1Q2012 Planned completion 2H2014/2H /4 468 sqm. usable area 92/92 units, available 22/29 units* Osiedle Innova (phases 6/7) Location: Wrocław Commenced 1H2013 Planned completion 3Q2014/3Q /4 693 sqm. usable area 56/56 units, available 51/56 units* Ostoja Wilanów (phase 7) Location : Warsaw Commenced 3Q2011 Planned completion 2Q sqm. usable area 324 units, available 177 units* * Offer as at

27 THANK YOU FOR YOUR ATTENTION CONTACT FOR INVESTORS Agata Wiktorow-Sobczuk tel. (22)