1 / 26

PREZENTACJA J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q 1 200 9

PREZENTACJA J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q 1 200 9. PRESENTATION AGENDA. CHANGE IN ACCOUNTING POLICY 3 CHANGES IN ACCOUNTING POLICY – OUTCOMES 4 PERFORMANCE IN Q 1 200 9 5 Q 1 2008 GROSS SALES PROFIT 7

bran
Download Presentation

PREZENTACJA J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q 1 200 9

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PREZENTACJA J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q1 2009

  2. PRESENTATION AGENDA • CHANGE IN ACCOUNTING POLICY 3 • CHANGES IN ACCOUNTING POLICY – OUTCOMES4 • PERFORMANCE IN Q1 2009 5 • Q1 2008 GROSS SALES PROFIT 7 • STRATEGY OF J.W. CONSTRUCTION HOLDING S.A. 8 • STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP9 • STRATEGY- APARTMENTS READY TO MOVE IN16 • STRATEGY- PROJECTS IN THE PIPELINE17 • IMPLEMENTED PROJECTS – OVERVIEW18 • INDUSTRY DEVELOPMENT PROSPECTSIN THE COMPANY’S VIEW24 • THE COMPANY’S SALES POLICY IN 200825 2 PRESENTATION PERFORMANCE IN Q1 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 IN Q1 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 IN Q1 2009

  5. PERFORMANCE IN Q1 2009 • In Q1 2009, sales increased by 90.6% from the same period last year 2008 data – restated to IAS 18 5 PRESENTATION PERFORMANCE IN Q1 2009

  6. PERFORMANCE IN Q1 2009 • Operating profit rose by 179% in Q1 2009 year on year • In addition, net profit in Q1 2009 posted a 204% increase as compared with Q1 2008 2008 data – restated to IAS 18 6 PRESENTATION PERFORMANCE IN Q1 2009

  7. Q1 2008 GROSS SALES PROFIT The total gross sales profit in the first quarter came to PLN 62,5 million. The following projects contributed the main to this figure: • Osiedle Górczewska I, Warsaw - 31 % • Osiedle Lazurowa, Warsaw - 18 % • Rezydencja na Skarpie, Warsaw - 14 % • Osiedle Leśne, Gdynia - 12 % • Willa Konstancin, Konstancin - 9 % • Osada Wiślana, Warsaw - 7% • Osiedle Centrum, Łódź - 5% 7 PRESENTATION PERFORMANCE IN Q1 2009

  8. 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 space • Continuing started housing projects – none of the projects in progress has been stopped • Providing a differentiated commercial offer – including apartments ready to take • Continuing preparations of new projects (documentation and building permit phase) 8 PRESENTATION PERFORMANCE IN Q1 2009

  9. 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 9 PRESENTATION PERFORMANCE IN Q1 2009

  10. STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP Development of Affiliated Companies – Strength and Capabilities • JW Projekt Sp. z o.o. – focus: architecture and design. • It may prepare projects for unaffiliated clients (recently it has been invited by National Airports to take part in the contest for a luxury hotel in the vicinity of the Okęcie Airport) • Skilled and experienced experts in various designing units dedicated to: architecture, design engineering, water & sewage and electrical systems 10 PRESENTATION PERFORMANCE IN Q1 2009

  11. 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 11 PRESENTATION PERFORMANCE IN Q1 2009

  12. 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. 12 PRESENTATION PERFORMANCE IN Q1 2009

  13. 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. • - Useable space: 25,324 sq. m.- Office space: 20,877 sq. m.- Commercial space: 4,447 sq. m. • A hotel with catering establishments and shops • Warszawa, PileckiegoStreet • Construction design in progress. Planned space: 16,838 sq. m. 13 PRESENTATION PERFORMANCE IN Q1 2009

  14. 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. 14 PRESENTATION PERFORMANCE IN Q1 2009

  15. 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. 15 PRESENTATION PERFORMANCE IN Q1 2009

  16. STRATEGY- APARTMENTS READY TO MOVE IN The Company has about 100 available apartments, ready to move in, in already completed projects • Osiedle Leśne in Gdynia • Osiedle Centrum in Łódź • Osiedle Uroczysko in Katowice • Willa Konstancin in Konstancin Jeziorna 16 PRESENTATION PERFORMANCE IN Q1 2009

  17. 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. * Apartments available for sale – construction work to start in the middle of 2009 17 PRESENTATION PERFORMANCE IN Q1 2009

  18. IMPLEMENTED PROJECTS - OVERVIEW Warsaw Market • Górczewska Park II • Warsaw, Górczewska/ Olbrachta Streets • The Górczewska Park project includes 12 apartment buildings situated at Górczewska/Olbrachta Streets- 886 apartments and 4 commercial premises. 18 PRESENTATION PERFORMANCE IN Q1 2009

  19. IMPLEMENTED PROJECTS - OVERVIEW Warsaw Market • Lewandów Park Warsaw, Lewandów Street • A gated housing compound consisting of over 1,900 apartments. Construction in two stages - Lewandów Park I and Lewandów Park II. Attractive location, good connection to the city center. 19 PRESENTATION PERFORMANCE IN Q1 2009

  20. IMPLEMENTED PROJECTS - OVERVIEW Warsaw Market • Osiedle Bursztynowe • Warsaw, Korkowa Street • A small, cozy housing estate consisting of four-story houses. Very good connection to the city center. Gated and guarded estate. 322 apartments are planned. 20 PRESENTATION PERFORMANCE IN Q1 2009

  21. IMPLEMENTED PROJECTS - OVERVIEW Warsaw Market • Wiślana Aleja • Warsaw, Odkryta Street • A housing estate consisting of modern six-story houses. The estate includes 200 apartments with underground garages. Fast and easy access to schools, kindergartens and shopping malls. 21 PRESENTATION PERFORMANCE IN Q1 2009

  22. IMPLEMENTED PROJECTS - OVERVIEW Warsaw Market • Ludwinowska Aleja II • Warsaw, Ludwinowska Street • Six cosy semi-detached houses with 24 apartments. 22 PRESENTATION PERFORMANCE IN Q1 2009

  23. IMPLEMENTED PROJECTS - OVERVIEW Warsaw Market • Osada Wiślana • Warsaw, Marcina z Wrocimowic Street • A complex of 3-storey buildings with 400 apartments. The privacy of inhabitants is heightened by enchanting location, near the Vistula River and forest. 23 PRESENTATION PERFORMANCE IN Q1 2009

  24. INDUSTRY DEVELOPMENT PROSPECTS IN THE COMPANY’S VIEW • Regardless of the stagnation in the housing market, which has been felt for several months now, supply is still outstripped by demand — the shortfall amounts to over 1.5 million apartments (Central Statistical Office figures as of December 2007) • 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 • Forecasts indicate a decline in PLN interest rates • Supply of new apartments will be probably decreasing, starting in 2010, as developers have stopped many projects and postponed start-ups, which is likely to increase both demand and 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 24 PRESENTATION PERFORMANCE IN Q1 2009

  25. THE COMPANY’S SALES POLICY IN 2008 • 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 • Interior finishing programmes for Customers • Implementation of alternative sales channels • Continuous marketing activities • Flexible approaches to clients – negotiable prices depending on payment amounts and schedules 25 PRESENTATION PERFORMANCE IN Q1 2009

  26. 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

More Related