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PRESENTATION J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q3 2009

PRESENTATION J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q3 2009. PRESENTATION AGENDA. CHANGE IN ACCOUNTING POLICY 3 CHANGES IN ACCOUNTING POLICY – OUTCOMES 4

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PRESENTATION J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q3 2009

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  1. PRESENTATION J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q3 2009

  2. PRESENTATION AGENDA • CHANGE IN ACCOUNTING POLICY 3 • CHANGES IN ACCOUNTING POLICY – OUTCOMES 4 • PERFORMANCE IN Q3 2009 5 • CUMULATIVE RESULTS FOR THE 3RD QUARTER 2009 7 • Q3 2009 GROSS SALES PROFIT 9 • IMPLEMENTED PROJECTS IN Q3 2009 10 • ENDED INVESTMENTS INQ3 2009 11 • STRATEGY OF J.W. CONSTRUCTION HOLDING S.A. 12 • STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP13 • STRATEGY - PROJECTS IN THE PIPELINE 15 • STRATEGY- APARTMENTS READY TO MOVE IN 21 • INDUSTRY DEVELOPMENT PROSPECTS IN THE COMPANY’S VIEW 22 • THE COMPANY’S SALES POLICY IN 2009 23 2 Presentation – PERFORMANCE Q3 2009

  3. CHANGE IN ACCOUNTING POLICY • By the end of 2008, the Group recognized revenues and expenses using the “zero-profit-margin method” (IAS 11), after: • - actual revenues exceeded 50% for a given project, and • - actual expenses of the project exceed 40%. • In accordance with the new regulations, in force from 2009, the Group applies IAS 18 to recognize revenues and expenses: • - revenues are included in the profit and loss account after an apartment is transferred to its buyer under a notarial deed, with alternate options that include revenue recognition after a building permit is received, the purchased apartment is paid for in full and the apartment is officially accepted by the buyer. 3 Presentation – PERFORMANCE Q3 2009

  4. CHANGES IN ACCOUNTING POLICY – OUTCOMES • Changes in accounting policy – outcomes: • For particular projects, revenue and expense recognition (and thus gross profit recognition) will be shifted in time • Operating result – depends on the phase of the project – will be recognized after a given project is completed, i.e. after 18 – 24 months 4 Presentation – PERFORMANCE Q3 2009

  5. PERFORMANCE IN Q3 2009 • Slight decrease in revenues from sales in the 3rd quarter 2009, by 8.73% compared to the same period of the previous year. • Decrease in margin in the 3rd quarter 2009, by 0.94% compared to the same period of the previous year. 2008 data – restated to IAS 18 5 Presentation – PERFORMANCE Q3 2009

  6. PERFORMANCE IN Q3 2009 • Operating profit rose by 0,18%in the 3rd quarter 2009year compared to the corresponding period in the previous year • In addition, net profit in the 3rd quarter 2009posted a 2.47% increase as compared with Q3 2008 2008 data – restated to IAS 18 6 Presentation – PERFORMANCE Q3 2009

  7. CUMULATIVE RESULTS FOR THE 3RD QUARTER 2009 • Slight decrease in revenues from sales for the 3rd quarter 2009, by 4% compared to the same period of the previous year. • Increase in margin for the 3rd quarter 2009, by 8,42% compared to the same period of the previous year. 2008 data – restated to IAS 18 7 Presentation – PERFORMANCE Q3 2009

  8. CUMULATIVE RESULTS FOR THE 3RD QUARTER 2009 • Increase in operating profit in cumulative results for the 3rd quarter 2009, by 23.19% compared to the same period of the previous year. • Increase in net profit in cumulative results for the 3rd quarter 2009, by 27.18% compared to the same period of the previous year. 2008 data – restated to IAS 18 8 Presentation – PERFORMANCE Q3 2009

  9. GROSS SALES PROFITFOR THE 3RD QUARTER 2009 Gross profit from sales after 3 quarters of 2009 equals PLN 130.7 million.The following projects contributed the main to this figure: • Osiedle Lazurowa, Warszawa - 37 % • Rezydencja na Skarpie, Warszawa - 14 % • Osiedle Leśne, Gdynia - 12 % • Osiedle Górczewska Park, Warszawa - 8 % • Osiedle Górczewska I, Warszawa – 8% • Osada Wiślana, Warszawa – 7% • Willa Konstancin, Konstancin - 6 % • Osiedle Centrum, Łódź - 4 % 9 Presentation – PERFORMANCE Q3 2009

  10. IMPLEMENTED PROJECTS IN Q3 2009 In Q3 2009, near 3000 units were being constructed of a total surface of more than 138,000 sq.m. (commercial and residential space) 10 Presentation – PERFORMANCE Q3 2009

  11. ENDED INVESTMENTS IN THE PERIOD I - IX 2009 During 9 months of 2009 the construction of over 2,200 premises was completed under the following investment projects: 11 Presentation – PERFORMANCE Q3 2009

  12. STRATEGY OF J.W. CONSTRUCTION HOLDING S.A. . Regardless of circumstances, the Company diversifies the Group’s risks by: • Expanding non-developer operations of affiliated companies – general construction, designing, construction prefab manufacturing • Enhancing the product range by office and commercial spaceContinuing started housing projects – none of the projects in progress has been stopped • Providing a differentiated commercial offer – including apartments ready to take • Intensified works connected with preparing new investment projects for launch in the first months of 2010 (project documentation and building permits). 12 Presentation – PERFORMANCE Q3 2009

  13. STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP Development of Affiliated Companies – Strength and Capabilities • J.W. Construction S.A. – focus: construction and assembly work • Strengths: • It may implement projects for unaffiliated clients (general construction, electrical engineering, water & sewage, and road construction work) • Experienced engineering and technical staff, own resources for project implementation • Substantial construction and transportation equipment resources 13 Presentation – PERFORMANCE Q3 2009

  14. STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP Development of Affiliated Companies – Strength and Capabilities • JW Projekt Sp. z o.o. - działalność z zakresu architektury i projektowania. • It may implement projects for unaffiliated clients • Experienced engineering and technical staff, own resources for project implementation • Designing works referring to new housing and office projects (for instance, in Warsaw at ul. Antoniewska, Światowida, Zdziarska, Badylarska, Pileckiego, Lewandów, Berensona as well as in Ożarów Mazowiecki, Łódź, Katowice and Szczecin). 14 Presentation – PERFORMANCE Q3 2009

  15. STRATEGY- PROJECTS IN THE PIPELINE • Regardless of market circumstances, works related to preparation of further projects are carried out based on the existing “land bank”, including: • Drawing up documents, e.g. design documentation • Applying for building permits. • The above actions will allow smooth construction commencement in the future. 15 Presentation – PERFORMANCE Q3 2009

  16. STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP Development of Affiliated Companies – Strength and Capabilities JWCH Produkcja Budowlana Sp. z o.o. – focus: construction prefab manufacturing – own plant with an advanced production line • Shorter deadlines • Prefabs may be offered to unaffiliated clients • Target – reduced expenditures • Application of the prefabricated elements technology under the implemented investment projects: • - Lewandów Park, Warsaw – application of ceramic walls (within shell walls) • - Lazurowe Ustronie, Ożarów Mazowiecki – complex application of prefabricated elements in the construction of multi-family and one-family houses (8 show houses finished until the end of 2009). 16 Presentation – PERFORMANCE Q3 2009

  17. STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP Office and Commercial Space The Company is prepared to start a commercialization project for office buildings, hence project implementation may commence soon. • Office Building – Jerozolimskie Point • Warszawa • Badylarska / Al. Jerozolimskie Streets • It is a modern 5-storey B+ class office building (with option to upgrade to A class standard), designed to the highest standards and care for work comfort. Useable space: 4,157 sq. m. • Launch of the construction as soon as in November 2009. 17 Presentation – PERFORMANCE Q3 2009

  18. STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP Office and Commercial Space • Office Building - Nowa Dana • Szczecin, Wyzwolenia Avenue / Odzieżowa Street • It is a technologically advanced 22-storey A class office building. • - services space: 25 324sq. m. • Hotel and office building Warsaw, PileckiegoStreet • Construction design in progress. Planned space: 16,838 sq. m. 18 Presentation – PERFORMANCE Q3 2009

  19. STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP Hotel Operations At present, J.W. Construction Holding Group has 5 two- and three-star hotels in: Zegrze, Stryków, Cieszyn, Tarnów Podgórny and Święta Lipka. Hotels focus on institutional clients (conferences, training sessions, seminars), but do not ignore individuals. 19 Presentation – PERFORMANCE Q3 2009

  20. STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP Hotel Operations In 2005, the Company purchased the “Czarny Potok” Resort in Krynica. Now, it is being expanded and upgraded to the “Resort & SPA” standard. The goal is to convert it into a four-star hotel with appropriate catering and conference facilities plus a five-star SPA/wellness centre. The building houses a lobby with reception desk, a restaurant for 400 guests and a multi-purpose conference room. 20 Presentation – PERFORMANCE Q3 2009

  21. STRATEGY- APARTMENTS READY TO MOVE IN The Company has about 360 available apartments, ready to move in, in already completed projects • Górczewska Park, Warsaw • Osiedle Lazurowa, Warsaw • Rezydencja Quatro, Warsaw • Willa Konstancin, Konstancin • Ludwinowska Aleja, Warsaw • Osiedle Centrum, Łódź • Osiedle Leśne Gdynia • Osiedle Uroczysko, Katowice • Osada Wiślana, Warsaw 21 Presentation – PERFORMANCE Q3 2009

  22. INDUSTRY DEVELOPMENT PROSPECTS IN THE COMPANY’S VIEW • Revival on the mortgage loan market during the last weeks, with the perspective for the following months. • There is an active group of customers in the real estate market who were born during the 1980s baby boom and whose housing needs still have not been met • Projected decreasing supply of finished apartments starting from 2010 – developer companies have withheld constructions and not launched new projects, which results in a renewed interest in the purchase of apartments at a slight increase in prices • Stable pricing situation in the construction materials market • In the longer term, demand will be boosted again from 2010 onwards due to the Euro 2012 effect and Poland’s probable entry into the euro area 22 Presentation – PERFORMANCE Q3 2009

  23. THE COMPANY’S SALES POLICY IN 2009 • Offer of financing programmes for Customers • Packages offering special conditions, dedicated to employees of institutions co-operating with J.W. Construction • Excellent housing offer, including instant-delivery opportunity buys • Offer of apartments meeting the requirements of the government programme “Rodzina na swoim” (Family on its own) • Interior finishing programmes for Customers • The best lending offer on the mortgage loans market, exclusively for clients of the Company • Competition of bids submitted by Clients • Continuous marketing activities • Flexible approaches to clients – negotiable prices depending on payment amounts and schedules 23 Presentation – PERFORMANCE Q3 2009

  24. INVESTOR RELATIONS OFFICE: Małgorzata Szwarc-Sroka Head of Financial Liquidity Management and Head of the Investor Relations Office Phone: +48 022 771 77 85 / +48 0 22 771 78 10 or +48 022 771 75 10 e-mail: relacje.inwestorskie@jwconstruction.com.pl

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