QI 2014 FINANCIAL RESULTS

Transcription

1 Warsaw, May 28 th 2014 INVESTOR PRESENTATION QI 2014 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 CONTENTS Q OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS INVESTMENT PORTFOLIO 3

4 SELECTED FINANCIAL DATA SALES REVENUE [THOUSANDS PLN] NET PROFIT AND GROSS SALES PROFITABILITY [kpln] Q13 2Q13 3Q13 4Q13 1Q ,0% ,3% 146 4,2% * 15,6% ,4% Q13 2Q13 3Q13 4Q13 1Q14 * corrected by a write-down for inventories, that does not affect development projects 25,0 20,0 15,0 10,0 5,0 0,0 NET SALES OF UNITS SELLING, GENERAL AND ADMINISTRATIVE EXPENSES [units] [units] * * Net sales Quarterly net sales Polnord Fadesa Other (Rosja, Aquasfera) *developers and reservation contracts [mpln] ,55 7,26 6,82 6,68 6,40 1Q13 2Q13 3Q13 4Q13 1Q14 4

5 SALES AND DELIVERIES Q OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS INVESTMENT PORTFOLIO 5

6 DELIVERIES AND MARGINS IN IQ2014 PROJECT UNITS DELIVERED REVENUES [KPLN] % GROSS PROFIT [KPLN] MARGIN GROSS RENTABILITY ON SALES PART I PROJECTS IMPLEMENTED BY THE WHOLLY OWNED SUBSIDIARIES OF POLNORD SA 25% WARSAW 20% 19,4% Śródmieście Wilanów (build. A) TRICITY % % 15% 14,3% 15,6% Apartamenty Albatros % 8 2% Ostoja Myśliwska I % % Ostoja Myśliwska II % % 10% 5% 8,0% 4,2% * 2 Potoki I % 22 16% 2 Potoki II % % 2 Potoki III (build. 1-3) % 15 8% Sopocka Rezydencja % 8 - OLSZTYN Osiedle Tęczowy Las (build. 4) % 66 30% Osiedle Tęczowy Las (build. 5) % % 0% 1Q13 2Q13 3Q13 4Q13 1Q14 * corrected by a write-down for inventories, that does not affect development projects SZCZECIN Ku Słońcu I % 7 - Ku Słońcu II (build. 2) % 117 5% ŁÓDŹ City Park II % 57 6% City Park III % TOTAL PART I % % 6

7 DELIVERIES AND MARGINS IN IQ2014 PROJECT UNITS DELIVERED REVENUES [KPLN] % GROSS PROFIT [KPLN] MARGIN PART II PROJECTS IMPLEMENTED BY THE COMPANIES JOINTLY CONTROLLED BY POLNORD SA WARSAW Ostoja Wilanów II-VII % % WROCŁAW Osiedle Innova I-VII % % TRICITY AQUASFERA % % TOTAL PART II % % TOTAL PART I AND II % % Data not weighted by Polnord s share in the project The company expects a distinct increase in gross profitability from sales to approximately 25% in subsequent quarters owing to: an increase of prices on new projects and the completion of the ongoing projects starting new projects with the gross margin planned at 20-30% completion of unprofitable investments (City Park in Łódź and Sopocka Rezydencja in Sopot); a total of 14 units remain to be sold 7

8 EXPECTED OPERATING INCOME AND PLANNED DIRECT MARGIN ON SALES FROM UNITS SOLD ON IQ2014 INVESTMENT number 1) of premises sold revenues 2) direct margin on sales 2) * direct cost allocated to land 2) ** net operating income 2) *** PART I PROJECTS IMPLEMENTED BY THE WHOLLY OWNED SUBSIDIARIES OF POLNORD SA WARSAW Śródmieście Wilanów (build. C) Śródmieście Wilanów (build. D) Neptun TRICITY Ostoja Myśliwska I Ostoja Myśliwska II Potoki I Potoki II Sopocka Rezydencja Dwa Tarasy I OLSZTYN Osiedle Tęczowy Las (build. 4) Osiedle Tęczowy Las (build. 5) Osiedle Tęczowy Las (build. 6) SZCZECIN Ku Słońcu I Ku Słońcu II (build. 2) Ku Słońcu II (build. 1) ŁÓDŹ City Park I City Park II TOTAL PART I PART II PROJECTS IMPLEMENTED BY THE COMPANIES JOINTLY CONTROLLED BY POLNORD SA WARSAW Ostoja Wilanów II-VII WROCŁAW Osiedle Innova I-VII TRICITY Aquasfera (Pacific) TOTAL PART II TOTAL LART I AND II ) Data not weighted with Polnord s share 2) Data weighted with Polnord s share * direct margin on sales calculated as revenue from sales reduced by costs of land, design and workmanship (excluding financial costs) ** as at the balance sheet date, the land is owned by the Group. The investment implementation will allow return on investment *** net income calculated as revenue from sales contracts, reduced by direct costs and increased by the value of the land 8

9 PROJECTS TO BE LAUNCHED IN 2014 Haffnera (Phase I) 3,000 sq. m UUA 50 units Expected commencement 2/3Q2014 Expected completion 2Q2016 Aquasfera, Reda near Gdynia (build. Indian) 8,908 sq. m UUA 173 units Expected commencement 4Q2014/1Q2015 Expected completion 2/3Q2016 Ku Słońcu (Phase III) 8,780 sq. m UUA 180 units Expected commencement 3Q2014 Expected completion 2Q2016 Osiedle Moderno 7,245 sq. m UUA 158 units Expected commencement 1Q2014 (Launched) Expected completion 4Q2015 Osiedle Innova II 10,270 sq. m UUA 209 units Expected commencement 2Q2014 Expected completion 2/3Q2016 City Park (Phase IV) 10,965 sq. m UUA 209 units Expected commencement 1Q2014 (Launched) Expected completion 1Q2016 Brama Sopocka 6,986 sq. m UUA 96 units Expected commencement 2Q2014 Expected completion 4Q2015 Stacja Kazimierz (Phase I) 8,575 sq. m UUA 184 units Expected commencement 2Q2014 Expected completion 1Q2016 Dwa Tarasy (Phase II) 8,386 sq. m UUA 172 units Expected commencement 2/3Q2014 Expected completion 3Q2015 Neptun, Ząbki near Warsaw (Phase II) 5,438 sq. m UUA 105 units Expected commencement 2/3Q2014 Expected completion 4Q2015 Investments planned to be launched independently (by the wholly owned subsidiaries of Polnord) Investments planned to be launched, implemented by companies jointly controlled by Polnord ŁÓDŹ Ostoja Wilanów (Phase V, build. B4) 9,203 sq. m UUA 136 units Expected commencement 1Q2014 (Launched) Expected completion 1Q2016 Ostoja Wilanów (Phase VI, build. C2) 12,320 sq. m UUA 184 units Expected commencement 2Q2014 Expected completion 2Q2016 Ostoja Wilanów (Phase VIII) 5,089 sq. m UUA 65 units Expected commencement 2Q2014 Expected completion 2Q2016 Śródmieście Wilanów (build. E) 8,800 sq. m UUA 155 units Expected commencement 3Q2014 Expected completion 4Q2015 Śródmieście Wilanów (build. F) 6,683 sq. m UUA 125 units Expected commencement 2Q2014 Expected completion 3Q2015 Wilanów Zachodni (build. A1) 7,267 sq. m UUA 130 units Expected commencement 4Q2014 Expected completion 4Q2016 SMART Aparthotel (Phase I) Phase I: sq. m UUA 195 units Expected commencement 3Q2014 Expected completion 3Q2016 9

10 FINANCIAL RESULTS Q OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS INVESTMENT PORTFOLIO 10

11 CONSOLIDATED INCOME STATEMENT SPECIFICATION IN THOUSANDS OF PLN 1Q2014 1Q2013 transformed data Sales revenue Prime cost of sale (29 867) (32 048) Gross profit (loss) on sales Revaluation of investment property (189) General administrative and selling expenses (6 399) (7 256) Other operating revenue Other operating expenses (1 080) (6 409) Gross operating profit (loss) Financial revenue Financial expenses (7 535) ( 9 976) Share in profit of associated measured with equity method (1 258) Gross profit (loss) Income tax (2 353) Net profit (loss) on continued operations Net profit (loss) on discontinued operations (111) 51 Net profit (loss) for the financial year Due to the changes in accounting standards, including in particular IFRS 11 in terms of the proportionate consolidation, with effect from , Fadesa Polnord Poland Sp. z o.o. and its subsidiaries ( Fadesa ) are consolidated using the equity method, which means that there were changes in the presentation in the consolidated financial statements: in the consolidated balance sheet, Fadesa was included in the item Investments in associates measured with the equity method, and in the consolidated profit and loss account, Fadesa was included in the item Share in profit of associate measured with the equity method. Consequently, as from 2014, the proportional recognition of assets and liabilities of Fadesa in the consolidated balance sheet and of individual revenues and costs of Fadesa in the consolidated profit and loss account was discontinued. Figures for the comparable periods were restated accordingly. 11

12 BALANCE SHEET - ASSETS SPECIFICATION IN THOUSANDS OF PLN transformed data Fixed assets Tangible fixed assets Investment property Intangible assets Investments in associates measured with equity method Financial assets Deferred tax assets Long-term receivables Goodwill Current assets Inventories Trade and other receivables Other short-term financial assets Receivables due to VAT, other taxes, customs duties, insurance and other Income tax receivables Prepayments and accrued income Cash and cash equivalents TOTAL ASSETS

13 [mpln] [mpln] BALANCE SHEET - ASSETS STRUCTURE OF INVENTORIES INVENTORIES LAND BANK AS AT Ząbki near Warsaw 20 mpln Tricity 36,8 mpln Łódź 46,0 mpln Bartąg near Olsztyn 6,8 mpln Lublin 6,4 mpln 0 Land bank Units under construction Other Infrastructure Units completed Warsaw 138,2 mpln Szczecin 30,1 mpln STRUCTURE OF INVESTMENT PROPERTIES INVESTMENT PROPERTIES LAND BANK AS AT ,0 1000,0 800,0 600,0 31,5 99,5 90,1 30,1 99,5 90,1 Dopiewiec near Poznań 128,4 mpln Other 4,9 mpln Kowale near Gdańsk 9,5 mpln Łódź 40,0 mpln 400,0 200,0 0,0 785,8 732, Warszawa Wilanów 467,2 mpln Sopot 59,7 mpln Głosków near Piaseczno 6,5 mpln Dobrzewino 16,6 mpln Land bank Office building B1 (Wilanów) Office building B3 (Wilanów) Stroj Dom - Rossia 13

14 LIST OF PLOTS OF THE HIGHEST VALUE LOCATED IN WILANÓW Plot no. Area [aq. m] Reported value [PLN 000] Investment plans 2/70 93, ,671 2/48 72,421 88,933 The area adjacent to the planned S2 Warsaw Southern bypass. The plot available for service and residential purposes. Possibility to build up the plot by 95,6 thousand sq. M. The Company does not expect to implement an investment on this plot in the 3 years The plot designated for residential buildings and facilities for public services as well as sports and recreational facilities. The Company does not expect to implement an investment on this plot in the 3 years. The Company considers applying for a change in the land development plan 2/244, 2/245 2/246, 2/247 2/248 (2/101 before) 29,023 53,008 The whole area intended for SMART Aparthotel investment whose implementation will begin in On , the Company received a decision approving the first phase of the construction project involving more than 190 units which will be located on plots 2/245, 2/246 and 2/247. On 20 March 2014, the Company filed an application for a building permit. 2/96 2/228 30,899 53,263 The plots constitute a single area in the vicinity of the planned S2 Warsaw Southern bypass. In 2014, a housing estate with the total usable area of approximately 30 thousand sq. m is planned to be designed. 9/1, 9/2,9/3 (9 before) 21,627 38,410 Plot is located adjacent to plots 2/96 and 2/228. A housing estate with the total usable area of approximately 20 thousand sq. m is planned to be designed in this area. 2/241, 2/242, 2/243 2/239, 2/240 (2/115, 2/97 before) 23,211 27,842 The Company signed a preliminary agreement on a sale of the land concerned TOTAL 270, ,127 The listed plots in Wilanów represent 88% of the value of investment land located in Warsaw, classified as investment properties,. Most of this land is located in the southern part of Miasteczko Wilanów south of Płaskowicka Bis and Aleja Rzeczypospolitej. These areas are well connected to the city centre, have full technical support and infrastructure. In the neighbourhood there are social, education and medical facilities. There are plans to build a large shopping centre in surrounding areas. 14

15 WILANÓW 15

16 ZESTAWIENIE GRUNTÓW O NAJWIĘKSZEJ WARTOŚCI W POZOSTAŁYCH LOKALIZACJACH Location Plot no. Area [aq. m] Reported value [PLN 000] Investment plans Dopiewiec near Poznań 188/1 184/6 184/7 184/8 497, ,395 The land is covered by the local master plan. According to its provisions, the development yield is approximately 346 thousand sq. m, but the Company plans approx. 173 thousand sq. m of the residential and 34 thousand sq. m of retail space, so as to preserve the natural landscape of the plots. The Letter of Intent was signed with the Nickel Development Sp. z o.o company. Sopot 38 28,047 59,666 The estimated development yield assumes a possibility of implementing multifamily houses with approximately 7 thousand sq. m of living space, aparthoteltype buldings with the area of approximately 5.7 thousand sq. m an office building with the area of approximately 7.9 thousand sq. m and hotel building with rooms. The Company assumes obtain a construcion permit for residential approx. 8 thousand sq. m of retail space in Łódź 568/30 568/32 568/33 19,474 40,042 Possibly of implementing multi-family residential development with approximately 44 thousand sq. m of living space, with services on the ground floors of approximately 2.5 thousand sq. m of retail space. Dobrzewino 224/6 224/8 145,194 16,624 The land is covered by the local master plan. According to its provisions, the land may be divided into approximately 139 plots of approximately 1,000 sq. m each on which four-family houses may be built Kowale near Gdańsk 109/54 40,672 9,477 The land is designated for residential development with approximately 8,5 thousand sq. m of living space and for service facilities with the area of approximately 3.3 thousand sq. m. the Company does not expect to implement any investment on this plot in the next 3 years. Głosków near Piaseczno 18/3-18/18 (18/2-18/4 before) 42,468 6, single-family houses may be built on the plot. Outline planning permissions were obtained for 11 planned houses. A procedure aimed at obtaining outline planning permissions for other houses was started TOTAL 773, ,715 16

17 BALANCE SHEET EQUITY AND LIABILITIES SPECIFICATION IN THOUSANDS OF PLN transformed data Equity (attributable to shareholders of the parent) Long-term liabilities Interest-bearing bank loans and borrowings Provisions Other liabilities Deferred income tax provision Prepayments and accrued income 3 3 Short-term liabilities Trade and other liabilities Current long-term portion of bank loans and borrowings Other short-term loans and borrowings Liabilities due to VAT, other taxes, customs duties, insurance and other Prepayments and accrued income Advance payments received Provisions Total liabilities TOTAL EQUITY AND LIABILITIES

18 INTEREST-BEARING DEBT NET INTEREST-BEARING DEBT AS AT THE REPAYMENT SCHEDULE FOR DEBT INTEREST [mpln] [mpln] Residential projects Commercial projects 328, Overdrafts Debt under bonds 125,3 220, ,5 45,1 95,1 4,1 26,1 16,1 0,5 0,5 2,5 0,3 14,6 15,6 5,6 5,1 9,3 12,9 2Q14 3Q14 4Q As at 31 March 2014 the net debt of the Group (excluding Fadesa Polnord Poland and its subsidiaries) amounted to PLN million (including gross debt of PLN million), while as of 31 December 2013 the net debt was PLN million (including gross debt of PLN 538.0). The strategic objective of the Polnord's Management Board is to considerably reduce the Group's debt. Funds for the debt reduction will come primarily from proceeds resulting from increased sales of apartments, a sale of non-operating assets that are unrelated with the principal activity of the Company and from compensations received. 18

19 COMPENSATORY CLAIMS Q OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS INVESTMENT PORTFOLIO 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 ROAD COMPENSATORY RECEIVABLES FROM THE CAPITAL CITY OF WARSAW DATE OF THE AGREEMENT AREA IN QUESTION AMOUNT RECEIVED POTENTIAL RECEIPTS Receivable I (sold to Bank PBP SA) ,9 ha 101,5 million - Receivable II (sold to Bank PBP SA) ,74 ha 43,4 million - Supplementary agreement under contracts (participation in cash surplus over PLN 144,9 million) million 5 million CLAIMS UNDER LITIGATION ROAD COMPENSATORY RECEIVABLES FROM THE CAPITAL CITY OF WARSAW DATE OF SUBMISSION CLAIM AMOUNT CASE STATUS RECEIVABLES IN CONSOLIDATED FINANCIAL STATEMENTS Tort damages from the capital City of Warsaw ,0 million Compensation for 10 hectares of areas dedicated for public roads * ,2 million Case pending (value of the claim increases over time) Motion to initiate negotiations was filed - 39,9 million COMPENSATION FOR WATER AND SEWAGE INFRASTRUCTURE FROM MPWIK DATE OF SUBMISSION CLAIM AMOUNT CASE STATUS RECEIVABLES IN CONSOLIDATED FINANCIAL STATEMENTS Claim for compensation for non-contractual use of the water and sewage infrastructure in Miasteczko Wilanów ,8 million** Case pending (value of the claim increases over time) Claim for take-over, for remuneration, of the water and sewage network in Miasteczko Wilanów ,3 million** Case pending 72 million Claim for take-over, for remuneration, of the sanitary sewerage in Miasteczko Wilanów - Approx. 55 million In preparation * Claim is pursued by Polnord through the SPV, 10 H Sp. z o.o. with its registered office in Gdynia ** The amount of the principal claim does not include statutory interest 20

21 INVESTMENT PORTFOLIO Q OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS INVESTMENT PORTFOLIO 21

22 INVESTMENT PORTFOLIO Śródmieście Wilanów (build. C) Location: Warsaw Commenced 3Q2012 Planned completion 3Q sq. m UUA 162 units, available 16 units* Śródmieście Wilanów (build. D) Location : Warsaw Commenced 3Q2013 Planned completion 2Q sq. m UUA 189 units, available 39 units* * Offer as at Neptun (Phase IA) Location : Ząbki near Warsaw Commenced 3Q2013 Planned completion 2/3Q sq. m UUA 109 units, available 77 units * Ostoja Wilanów VII Location : Warsaw Commenced 1Q2014 Planned completion 2Q sq. m UUA 324 units, available 53 units * 22

23 INVESTMENT PORTFOLIO Ku Słońcu (Phase 2, build. 1) Location : Szczecin Commenced 2Q2012 Planned completion 4Q sq. m UUA 158 units, available 107 units * Osiedle Tęczowy Las (build. 6) Location : Bartąg near Olsztyn Commenced 3Q2013 Planned completion 2Q sq. m UUA 149 units, available 138 units * Dwa Tarasy (Phase I) Location : Gdańsk Commenced 3Q2013 Planned completion 4Q sq. m UUA 162 units, available 89 units * Aquasfera (build. Pacific) Location : Reda near Gdynia Commenced 3Q2012 Planned completion 2Q sq. m UUA 213 units, available 117 units * * Offer as at

24 INVESTMENT PORTFOLIO Osiedle Innova (Phase 6) Location : Wrocław Commenced 1H2013 Planned completion 3Q sq. m UUA 56 units, available 27 units * Osiedle Innova (Phase 7) Location : Wrocław Commenced 1H2013 Planned completion 3Q sq. m UUA 56 units, available 31 units * Osiedle Moderno Location : Wrocław Commenced 1Q2014 Planned completion 4Q sq. m UUA 158 units, available 158 units * City Park IV Location : Łódź Commenced 1Q2014 Planned completion 1Q sq. m UUA 209 units, available 209 units * * Offer as at

25 THANK YOU KONTAKT DLA INWESTORÓW Wioletta Ząbek tel. (22)