Financial and operating results Q November 2018

Transcription

1 Financial and operating results Q November 2018

2 AGENDA Executive summary Operating data Financial data Attachments 2

3 EXECUTIVESUMMARY 3

4 Executive summary PLN million sales revenue for the three quarters of 2018, up by +25.2% as compared to PLN million in the corresponding period of 2017, as a result of settling historical sales PLN million net cash flows from operating activities for the first three quarters of 2018 PLN million net result for Q , as the result of KB Dom, increase in costs and additional adjustments of the financial result Sale of office buildings at Wilanów Office Park - finalizing the transaction will reduce the debt and release funds to finance further investments Strategic options review process - possible cooperation with potential investors 4

5 Selected financial results vs. market consensus Specification (PLN mn) Q Q One-offs Q normalised Market consensus PAP [PLN mn] Change Q normalised / consenus Sales revenue Profit from sales before tax EBIT EBITDA Net result CF from operations Specification (PLN mn) Q Q One-offs Q normalised Market consensus PAP [PLN mn] Change Q normalised / consenus Sales revenue Profit from sales before tax EBIT EBITDA Net result CF from operations

6 Reported net result vs. adjusted net result Net result adjustment Q (PLN mn) Reported net result KOWR - establishing provisions KOWR - releasing provisions KB Dom - writing-off receivables KB Dom - contractual penalties KB Dom - repair provision KB Dom - write-offs related to change in GC Fadesa - dyvidend Stacja Kazimierz - consolidation error StrojDom - write-off Ząbki - report adjustment Sidelco - writing-off receivables DTA write-off IRRS 9 Adjusted net result One-off negative effect One-off positive effect 6

7 Selected operating data Units sold 1) Units recognised in revenue Units recognised in net result 1) Units introduced to sales 1) Closing offer 1) Q ) Q Change -27% +60% +18% -81% -36% Q ) Q Change -33% +9% -30% -39% -36% 1) Data weighted with Polnord's share 2) Data for Q does not include Semeko Aqusfera Sp. z o.o. 7

8 OPERATING DATA 8

9 The situation on the Polish housing market in Q thou. of units sold on 6 main markets (Warsaw, Wrocław, Cracow, Tri-City, Poznań, Łódź) drop by 8.9% q/q 14.2 thousand premises sold on 6 main markets (Warsaw, Wrocław, Cracow, Tri-City, Poznań, Łódź) - a decrease by 8.9% q/q Almost 16% y/y decrease in the number of units available on the Warsaw market 7% increase y/y in the number of units available on the Tri-City market The highest increase in prices y/y: Warsaw +14.2%, Wrocław +13.6%, Łódź +9.3%, Tri-City +7% Environment: increase in prices of general contracting and prices of building materials, regulatory changes, necessity to remodel the method of financing development investments Based on REAS data 9

10 Units sold per quarter and cumulatively Sale of premises weighted with Polnord s share (pcs) -33.8% 29.3% Q Q Q Q Q Q Q Q Q Q Q % 51.0% 79.7% Q Q July August September 10

11 Units sold geographically Sale of premises weighted with Polnord shares : 753 in Q vs 1,034 units in Q (pcs) Warsaw Tri-City Olsztyn Szczecin Łódź Wrocław Q Q Sale of premises weighted with Polnord shares : 256 in Q vs 384 units in Q (pcs) Warsaw Tri-City Olsztyn Szczecin Łódź Wrocław Q Q

12 Units sold Polnord against the wide market Sale of premises weighted with Polnord s share (pcs) -33.2% 28.6% -17.4% -2.4% largest developers reported changes in sales s in Q2 vs. Q from -52.1% to -5.4% in Q3 vs. Q from -16.9% to 40.5% Polnord 1) Listed developers 2) 1Q Q Q Q Q Q ) Data weighted with Polnord's share 2) Developers listed on WSE or Catalyst 12

13 Units recognised in financial result by quarter and cumulatively Deeds weigthed with Polnord s share (pcs) % -27.3% Q Q Q Q Q Q Q Q Q Q Q % 658 1) Q Q ) 1) Data for Q does not include Semeko Aqusfera Sp. z o.o. 13

14 Units recognised in financial result geographically Deeds weigthed with Polnord s share: 658 in Q vs 557 units in Q (pcs) Warsaw Tri-City Łódź Olsztyn Szczecin Wrocław Q Q Deeds weigthed with Polnord s share: 141 in Q vs 201 units in Q (pcs) Warsaw Tri-City Łódź Olsztyn Szczecin Wrocław Q Q

15 Offer The number of premises on offer broken down by 100% Polnord and JV (pcs) % Polnord Polnord 100% JV 1) 1) Data weighted with Polnord s share 15

16 FINANCIAL DATA 16

17 Selected financial data PLN thou. Q Q Q Q Sales revenue Profit on sales before tax EBIT EBIT margin -6.3% -4.5% 0.9% -6.2% EBITDA EBITDA margin -5.5% -3.8% 1.6% -5.7% Net profit (loss) Net profit (loss) margin 7.2% -31.1% -1.2% -20.4% Cash flows Cash flows from operating activity Cash flows from investment activity Cash flows from financial activity Cash and cash equivalents Balance sheet data Investment real property Stock Total assets Equity Debt Net debt

18 Cash flows Corporate cash flows (PLN mn) Q Q Cash flows from operating activity Cash flows from investment activity Cash flows from financial activity 18

19 Financial debt The structure of the Group's financial debt in the period based on nominal value of debt (PLN mn) , Bonds Loans Financial lease Loan repayment schedule and redemption of bonds as at (PLN mn) Debt ratios (PLN mn) Q Bonds Loans % 48.7% 42.3% 39.8% Net debt 1) Net debt ratio 70,0% 50,0% 30,0% 10,0% -10,0% 1) Net debt = interest-bearing financial debt - cash and cash equivalents; net debt ratio = net debt / equity 19

20 ATTACHMENTS 20

21 Att. 1 Sales offer Project General information Units sold (net after annulations) Offer as at PUM (m²) No of units Delivery date Implementing company to Q Part I - projects implemented by Polnord SA s 100% subsidiaries WARSAW Delivered projects Neptun I (stage II) Q Polnord Warszawa Ząbki Neptun Neptun II (stage Ia) Q Polnord Warszawa Ząbki Neptun Neptun II (stage Ib) Q Polnord Warszawa Ząbki Neptun Śródmieście Wilanów (building E) Q Śródmieście Wilanów Brzozowy Zakątek (building A2) Q Śródmieście Wilanów Brzozowy Zakątek (building A3) Q Śródmieście Wilanów 98-1 Brzozowy Zakątek (building A4) Q Śródmieście Wilanów Project under implementation Neptun II (stage II) Q1 2019* Polnord Warszawa Ząbki Neptun Wilania Q2 2020* Polnord Gdynia Brama Sopocka *scheduled date of project delivery 21

22 Att. 2 Sales offer Project General information Units sold (net after annulations) Offer as at PUM (m²) No of units Date of delivery Implementing company to Q Part I - projects implemented by Polnord SA s 100% subsidiaries TRI-CITY Delivered projects Ostoja Myśliwska I-II Polnord Apartamenty Brama Sopocka II-III Q Polnord Gdańsk Dwa Tarasy Dwa Tarasy I-II Q Polnord Gdynia Brama Sopocka Chabrowe Wzgórze I Q Polnord Apartamenty Chabrowe Wzgórze II Q Polnord Apartamenty Projects under implementation Fotoplastykon I Q1 2019* Polnord Apartamenty Fotoplastykon II Q3 2020* Polnord Apartamenty Fotoplastykon III Q3 2020* Polnord Apartamenty Studio Morena Q1 2020* Polnord Apartamenty *scheduled date of project delivery 22

23 Att. 3 Sales offer Project General information Units sold (net after annulations) Offer as at PUM (m²) No of units Date of delivery Implementing company to Q Part I - projects implemented by Polnord SA s 100% subsidiaries OLSZTYN Delivered projects Osiedle Tęczowy Las II (building 8) Q Polnord Olsztyn Tęczowy Las Projects under implementation Osiedle Tęczowy Las II (building 7) Q2 2019* Polnord Olsztyn Tęczowy Las Osiedle Tęczowy Las III (building 9-12) Q3 2019* Polnord Olsztyn Tęczowy Las SZCZECIN Delivered projects Ku Słońcu I Q Polnord Szczecin Ku Słońcu Ku Słońcu III (building 3) Q Polnord Szczecin Ku Słońcu Ku Słońcu III (building 5) Q Polnord Szczecin Ku Słońcu *scheduled date of project delivery 23

24 Att. 4 Sales offer Project General information Units sold (net after annulations) Offer as at PUM (m²) No of units Date of delivery Implementing company to Q Part I - projects implemented by Polnord SA s 100% subsidiaries ŁÓDŹ Delivered projects City Park II Q Polnord Łódź City Park 85-2 City Park IV (bud. A5) Q Polnord Łódź City Park City Park IV (bud. A3) Q Polnord Łódź City Park Projects under implementation Senatorska bud A Q2 2020* Polnord Sopot II Total delivered projects Total projects under implementation Including projects commenced in Total Part I *scheduled date of project delivery 24

25 Att. 5 Sales offer Project General information Units sold (net after annulations) Offer as at PUM (m²) No of units Date of delivery Implementing company to Q Part II - projects implemented by companies co-controlled by Polnord SA. Data weighted with the share of Polnord SA WARSAW Delivered projects Ostoja Wilanów V-VII Fadesa Polnord Ostoja Wilanów VIa (C2) Q Fadesa Polnord Ostoja Wilanów VIII (B2) Q Fadesa Polnord Stacja Kazimierz I Q Stacja Kazimierz Stacja Kazimierz II Q Stacja Kazimierz II 57-1 Stacja Kazimierz III (building 4AB) Q Stacja Kazimierz III Stacja Kazimierz IV (building 3) Q Stacja Kazimierz IV Projects under implementation Stacja Kazimierz V (building 5) Q2 2020* Stacja Kazimierz V TRI-CITY Projekty oddane do użytkowania Aquasfera (bulding T2) Q Semeko Aquasfera Aquasfera (building T3 staircase A and B) Q Semeko Aquasfera Aquasfera (building T3 staircase C and D) Q Semeko Aquasfera *scheduled date of project delivery 25

26 Att. 6 Sales offer Project General information Units sold (net after annulations) Offer as at PUM (m²) No of units Date of delivery Implementing company to Q Part II - projects implemented by companies co-controlled by Polnord SA. Data weighted with the share of Polnord SA WROCŁAW Delivered projects Apartamenty Innova A Q Osiedle Innova 73 1 Apartamenty Innova B Q Osiedle Innova Projekty w realizacji Apartamenty Innova C Q4 2018* Osiedle Innova Apartamenty Innova D Q1 2019* Osiedle Innova Total delivered projects Total - Projects under implementation w tym projekty rozpoczęte w 2018 r Total Part II Summary Part I and Part II Total delivered projects Total - Projects under implementation Including projects commenced in Total Part I and II *scheduled date of project delivery Data weighted with Polnord SA s share 26

27 Att. 7 Revenue and profit before tax by city Q Units delivered to clients Revenue Profit on sales before tax Project No of units Area of units [PLN thou.] Share % [PLN thou.] Gross profitability on sales Part I - projects implemented by Polnord SA s 100% subsidiaries Warsaw % % Tri-City % % Olsztyn Szczecin % % Łódź % % Total Part I % % Part II - projects implemented by companies co-controlled by Polnord SA. Data weighted with the share of Polnord SA Warsaw % % Wrocław % % Tri-City % - - Total Part II % % Summary Part I and Part II Total Part I and II % % 27

28 Att. 8 Revenue and profit before tax by projects Q Projekt Units delivered to clients Revenue Profit on sales before tax No of units Area of units [PLN thou.] Share % [PLN thou.] Gross profitability on sales Part I - projects implemented by Polnord SA s 100% subsidiaries Warsaw Śródmieście Wilanów (building A) Śródmieście Wilanów (building C) Śródmieście Wilanów (building D) Śródmieście Wilanów (building E % Śródmieście Wilanów (building F) % % Brzozowy Zakątek A % -1 - Brzozowy Zakątek A % % Brzozowy Zakątek A % % Apart Hotel % 1 - Neptun I (stage I) Neptun I (stage II) % Neptun II (stage Ia) % 705 4% Neptun II (stage Ib) % 337 2% Tri-City Ostoja Myśliwska I-II % 2 Potoki I Potoki II % 2 Potoki III % 2 Potoki IV % Chabrowe Wzgórze I A % % Chabrowe Wzgórze I A % % Chabrowe Wzgórze I C % 808 9% Chabrowe Wzgórze II B % % Chabrowe Wzgórze II C % % Dwa Tarasy I-II % Brama Sopocka I % Brama Sopocka II-III % % 28

29 Att. 9 Revenue and profit before tax by projects Q Project Units delivered to clients Revenue Profit on sales before tax No of units Area of units [PLN thou.] Share % [PLN thou.] Gross profitability on sales Part I - projects implemented by Polnord SA s 100% subsidiaries Olsztyn Osiedle Tęczowy Las (building 4) Osiedle Tęczowy Las (building 5) Osiedle Tęczowy Las (building 6) Szczecin Ku Słońcu I Ku Słońcu II (building 2) Ku Słońcu II (building 1) Ku Słońcu III (building 3) % % Łódź City Park II % City Park IV (building A5) % City Park IV (building A3) % - - Total Part I % % 29

30 Att. 10 Revenue and profit before tax by projects Q Project Units delivered to customers Revenue Profit on sales before tax Number of units Area of uits [PLN 000] % share [PLN 000] Part II Projects implemented by companies co-controlled by Polnord SA. Data weighted with Polnord SA s share Warsaw Profitability of sales before tax Ostoja Wilanów VI-VIII % % Stacja Kazimierz I Stacja Kazimierz II Wrocław Osiedle Moderno Apartamenty Innova % % Apartamenty Innova B % % Tri-City Aquasfera (building T2) % - - Total Part II % % Summary Part I and II Total Part I and II % % Data weighted with Polnord SA s share 30

31 Att. 11 Profit and Loss Statement Description [PLN 000] Q Q Change Sales revenue % Revenue from sale of goods and materials % Revenues from sale of services % Rent revenue % Prime costs of sales % Profit (loss) from sales before tax % Revaluation of investment property Selling costs % Costs of general management % Other operating revenue % Other operating expenses % Operating profit (loss) before tax Financial revenue % Financial expenses % Share in profit of entity valued with the equity method % Profit (loss) before tax Income tax % Net profit (loss) from continued operations % Net profit (loss) from discontinued operations Net profit (loss) % 31

32 Att. 12 Adjusted EBIT Adjusted EBIT [PLN mn] Q Q Reported EBIT Normalisation adjustment - EBIT Supreme Administrative Court s decision - - Revaluation of investment property - - Adjustments related to KB Dom KOWR provisions [National Support Centre for Agriculture] Adjustment of accounting errors from previous years IFRS VAT provision - - Russia write-offs Write-offs on investment projects - - Write-offs on receivables Provisions for liabilities - - Normalised EBIT

33 Att. 13 Adjusted net profit Adjusted net profit [PLN mn] Q Q Reported net result Normalisation adjustments - net result Supreme Administrative Court s decision - - Revaluation of investment property - - Adjustments related to KB Dom Fadesa KOWR provisions [National Support Centre for Agriculture] Adjustment of accounting errors from previous years IFRS Income tax adjustment - - Tax asset write-off VAT provisions and taxes - - Russia write-offs Case won regarding CIT - - Write-offs on receivables Write-offs on investment projects - - Provisions for liabilities - - Normalised net result

34 Att. 14 Balance Sheet - Assets Description [PLN 000] As at As at Change ASSETS Non-current assets % Tangible fixed assets % Investment properties % Intangible assets % Investments in entities, accounted for using the equity method % Goodwill Non-current receivables % Other financial assets % Deferred tax assets % Current assets (excluding assets classified as held for sales ) % Inventories % Trade and other receivables % Granted loans % VAT and other tax, customs, insurance and other receivables % Income tax receivables % Prepayments % Cash and cash equivalents % Assets classified as held for sale ,740.17% Current assets (including assets classified as held for sales) % TOTAL ASSETS % 34

35 Att. 15 Balance Sheet - Liabilities Description [PLN 000] As at As at Change LIABILITIES Equity (to equity holders of parent company) % Share capital Share premiums Differences on recalculation of foreign units Other reserve capitals Retained earnings/uncovered losses % Total equity % Non-current liabilities % Interest-bearing bank loans and borrowings % Provisions % Other liabilities % Deferred income tax provision Current liabilities % Trade and other liabilities % Current portion of long-term bank loans and borrowings % Other current loans and borrowings % VAT and other tax, customs, insurance and other liabilities % Income tax liabilities Other financial liabilities % Accruals % Advances received % Provisions % Liabilities related directly to fixed assets held for sale Total liabilities % TOTAL LIABILITIES % 35

36 Att. 16 Cash flows CASH FLOW STATEMENT For the period from to For the period from to Change Cash flows from operating activities Profit (loss) before tax (including profit from discontinued operations) Adjustments by items: % Share in result of affiliated entities accounted for using the equity method % Amortisation/depreciation % Interest and dividends, net % Profit (loss) from investing activities (Increase) / decrease in receivables (Increase) / decrease in inventories (Increase) / decrease in liabilities, excluding loans and borrowings % Change in prepayments and accruals % Change in provisions Income tax paid Other % Effect of IFRS 9 on non-current receivables Net cash from operating activities % 36

37 Att. 17 Cash flows CASH FLOW STATEMENT For the period from to For the period from to Change Cash flows from investing activities Inflows % Sale of property, plant and equipment and intangible assets Sale of investment property Sale of financial assets % Iterest received Rpayment of loans granted Dividends received Outflows % Acquisition of property, plant and equipment and intangible assets % Acquisition of investment property Acquisition of financial assets Acquisition of a subsidiary, after deduction of acquired cash Granting of loans % Net cash from investing activities % 37

38 Att. 18 Cash flows CASH FLOW STATEMENT Cash flows from financing activities For the period from to For the period from to Inflows % Inflows from share issue Inflows from loans/credits drawn % Inflows from bond issue % Outflows % Repayment of finance lease Loan/credit repayment % Interest paid % Bond redemption % Pozostałe Change Net cash from financing activities % Net increase (decrease) in cash and cash equivalents % Net exchange differences Cash opening balance % Cash at end of period, including % of limited disposability % 38

39 DISCLAIMER: This study has been prepared solely for information purposes and is not intended to induce acquisition or sale of any financial instruments. The study does not constitute advertising, offer or proposing the purchase of financial instruments. It uses sources of information that Polnord SA considers credible and accurate, but there is no guarantee that they are comprehensive and fully reflect the facts. The study may include statements regarding the future, which constitute an investment risk or source of doubt and may significantly differ from actual results. Polnord SA is not liable for any effects of decisions which have been made based on this study. The study should not be treated as a source of knowledge sufficient to make an investment decision. Responsibility for the use of information contained in the study lies solely with the recipient.the study is subject to protection resulting from the Copyright and Derivative Rights Act. Copying, publishing or distributing it requires the written consent of Polnord SA INVESTOR CONTACT: IR@POLNORD.PL