QI 2013 FINANCIAL RESULTS

Transcription

1 Warsaw, May 22 nd 2013 INVESTOR PRESENTATION QI 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 CONTENTS Q OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING INVESTMENT PORTFOLIO 3

4 SELECTED FINANCIAL DATA 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 2013 SALES & DELIVERIES [UNITS] GENERAL ADMINISTRATIVE AND SELLING EXPENSES [THOUSANDS PLN] units Q2012 2Q2012 3Q2012 4Q2012 1Q Deliveries Net sales 0 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 4

5 SIGNIFICANT EVENTS Operations Joint Venture Agreement with Group Waryński to construct a development project in Warsaw (total usable area 45 thousand sqm., value in current prices 300m PLN, planned commencement of phase / apartments. Introduction for sale of phase 1 of project Osiedle Guderskiego in Gdańsk (96 apartments in total) Advanced preparations of development projects in Ząbki near Warsaw, Gdańsk and Gdynia Successful commercialization of office building B3 in Wilanów Office Park (leased in almost 90%) Debt management buyout and issue of bonds at total par value of 65,5 mpln buyout of bonds at total par value of 40 mpln, issue of bonds at total par value of 5 mpln issue of bonds at total par value of 46 mpln with the aim to finance new development projects implemented by Polnord. 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. Reduction of operation costs General administrative and selling expenses 8,7 mpln lowest since Merger of Polnord with subsidies optimization of the cost structure of Polnord Capital Group. Reduction of remuneration for Members of the Company's Supervisory Board. 5

6 CONTENTS Q OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING INVESTMENT PORTFOLIO 6

7 DELIVERIES AND MARGINS DELIVERIES AND REVENUES RECOGNIZED IN THE FINANCIAL STATEMENT 600 [units] 132, , ,6 81,2 67, ,0 53, , , [m PLN] 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 % % Units delivered Sales revenue [m PLN] Osiedle Guderskiego I % 28 5 % OLSZTYN Revenues from sales in Q equal to 41,1 mpln recognized as a result of the delivery of 136 apartments and the lease of office space. Osiedle Tęczowy Las (bud.4) SZCZECIN % % Ku Słońcu I % % Ku Słońcu II (bud. 2) % % Negative margins on Sopocka Rezydencja and City Park projects significantly influenced Polnord s financial result these margins should be close to 0 in upcoming periods. High margins (>30%) on projects in Wrocław and Olsztyn. Most deliveries in Q in Szczecin and Tricity area where margins ranged form 13% to 21 %. ŁÓDŹ City Park % % WROCŁAW Osiedle Innova % % TOTAL % % ATTENTION: Data not weighted by Polnord s share in the ptoject 7

8 SALES AND OFFER GROSS SALES [szt] [szt] Gross sales in Q equal to 218 units, 198 units accounting for annulations 14 reservation agreements signed in Q Gross sales in April 2013 equal to 69 units, net sales 64 units High value of sales despite lower unit sales due to increased interest in large apartments OFFER AS AT Increase in the number of clients paying in cash Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 Offer as at March 31 st 2013: 1389 apartments, comprising 490 completed units and 899 units under construction Offer Units under construction Completed units 8

9 EXPANSION OF OFFER apartments of total usable area 67 thousand m 2, located in 8 new development projects to expand Polnord s offer by the end of Brama Sopocka Planned commencement 4Q2013 Planned completion 4Q m 2 usable area 120 units Phase I: m 2 usable area, 42 units Osiedle Tęczowy Las (building 6) Planned commencement 3Q2013 Planned completion 2Q m 2 usable area 149 units Dwa Tarasy Planned commencement 3Q2013 Planned completion 3Q m 2 usable area 334 units Phase I: m 2 usable area, 162 units Neptun (Ząbki near Warsaw) Planned commencement 3Q2013 Planned completion 3Q m 2 usable area 600 units Phase I: m 2 usable area, 218 units Osiedle Moderno Planned commencement 4Q2013 Planned completion 2Q m 2 usable area 158 units Śródmieście Wilanów, building D Planned commencement 3Q2013 Planned completion 2Q m 2 usable area 180 units Ostoja Wilanów (Phase VI, building C2) Planned commencement 3/4Q2013 Planned completion 1/2Q m 2 usable area 184 units Stacja Kazimierz Planned commencement 4Q2013/1Q2014 Planned completion 4Q m 2 usable area 450 units Phase I: m 2 usable area, 165 units 9

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

11 PROFIT AND LOSS ACCOUNT Gross profit on sales the result of lease of office space and delivery of 136 units Revaluation of office building B3 in Wilanów Office Park due to advanced progress of commercialization (approx. 90%) by the amount of +23 mpln Reduction of SG&A expenses by 32% year to year Cost of interest 9 mpln SPECIFICATION (THOUSAND PLN) 1Q2013 1Q2012 Sales revenue Prime cost of sales ( ) ( ) Gross profit (loss) on sales Revaluation of investment property General administrative and selling expenses ( 8 701) ( ) Other operating revenue Other operating expenses ( 6 677) ( 7 749) Gross operating profit (loss) Financial revenue Financial expenses ( ) ( ) Share in profit of associated company ( 94) Gross profit (loss) Income tax ( 2 116) ( 1 887) Net profit (loss) on continued operations (Net profit (loss) on discontinued operations 51 ( 285) Net profit (loss)

12 RENTABILITY BY PROJECTS GROSS PROFIT ON SALES BY PROJECTS 5 4,5 4 3,5 3 2,5 2 1,5 1 0,5 0 0,5 0,3 0,7 0,6 0,5 0,2 1,6-0,4-2,5 2,2 0,1 3,8 Gross profit on sales is the result of lease of office space and delivery of 136 units. Lower gross viability on sales of apartments is the result of deliveries on loss-generating projects (20% share in total sales revenue from sales of apartments). Progress of sales on loss-generating projects: City Park in Łódź: 90% GROSS VIABILITY ON SALES 16% 14% 12% 13,1% 13,4% Sopocka Rezydencja: 68% Given past write-downs expected margins on the mentioned projects should be around 0 in upcoming periods, at current sales prices. 10% 8% 9,2% 6% 4% 2% 6,4% 4,5% Estimated value of net revenue on the sale of 198 units in 1Q 2013 (considering only preliminary contracts) equal to kpln. 0% 1Q Q Q Q Q

13 BALANCE SHEET - ASSETS SPECIFICATION (THOUSAND PLN) Increase in value is the effect of the revaluation on office building B3 in Wilanów Office Park due to almost complete commercialization Non-current assets Property, plant and equipment Investment property Intangible assets 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 million PLN million PLN BALANCE SHEET - ASSETS STRUCTURE OF INVENTORY INVENTORY LAND BANK AS AT ,7 661,4 662,2 26,7 0,3 0,1 26,7 26,7 362,2 358,6 361,8 Wrocław 17,33m PLN Ząbki near Warsaw 18,39m PLN Tricity 62,59m PLN Lublin 6,44m PLN ,5 153,2 164,5 Łódź 48,46m PLN ,3 122,6 109, Units completes Units under construction Land bank Infrastructure Other Warsaw - Wilanów 167,07m PLN Szczecin 33,84m PLN Bartąg near Olsztyn 7,66m PLN STRUCTURE OF INVESTMENT PROPERTY INVESTMENT PROPERTY LAND BANK AS AT ,4 963,5 947,7 973,2 29,1 33,2 34,4 66,9 71,6 94,7 93,6 93,0 93,0 Warsaw, Wilanów 505,2m PLN ,5 749, Land bank Office building B1 (Wilanów) Office building B3 (Wilanów) Stroj-Dom (Russia) Office building Novosibirsk (Russia) Dobrzewino, Sopot gmina 47,3m PLN Szemud 16,1m PLN Dopiewiec near Poznań 122,3m PLN Łódź 40m PLN Kowale near Gdańsk Other 9,5m PLN 10,6m PLN 14

15 BALANCE SHEET EQUITY AND LIABILITIES SPECIFICATION (THOUSAND PLN) Equity Long-term liabilities Interest-bearing bank loans and borrowings Provisions Other liabilities Debt restructuring through buyout and issue of bonds at par value 65,5 mpln Deffered 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

16 INTEREST-BEARING DEBT NET INTEREST-BEARING DEBT ,7 684,0 639,3 635,9 636,7 100% 90% 80% 70% Buyout of bonds at par value 40 mpln. 3,7 mpln value of bond interest as at r % % % 200 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 Net debt (m PLN) Net debt to equity ratio (%) 30% DEBT [M PLN] 2Q2013 3Q2013 4Q TOTAL Residential projects 9,6 5,5 7,3 37,0 27,1 18,0 104,4 Commercial projects 1,5 0,5 0,5 2,0 2,0 97,4 103,9 Current loans 24,0 56,6 80,6 Debt stemming from issued bonds 43,7 30,4 18,5 114,0 134,0 340,6 Loans of Fadesa Polnord Polska Group 2,1 2,1 2,1 12,9 17,8 37,1 Other (including FPP loans) 28,8 8,6 37,4 TOTAL 80,9 8,1 69,2 127,0 169,5 249,4 704,0 Cash and cash equivalents as at ,3 NET DEBT as at ,7 16

17 CONTENTS Q OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING INVESTMENT PORTFOLIO 17

18 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 COMPENSATORY DAMAGES DUE FROM THE CAPITAL CITY OF WARSAW FOR LAND PLOTS ASSIGNED FOR PUBLIC ROADS DATE OF SALE/AGREEMENT AREA SUBJECT TO COMPENSATION AMOUNT OF I INSTALMENT OF SALE PRICE (RECEIVED) 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 COMPENSATORY DAMAGES DUE FROM MPWIK* FOR WATER AND SEWERAGE INFRASTRUCTURE DATE OF SUBSMISSION COMPENSATORY CLAIM Claim against MPWiK for compensation for usufruct of water and sewerage utilities in Miasteczko Wilanow on a non-contractual basis Claim against MPWiK to take-over, for compensation, part of the water and sewage network, constructed during the investment of Miasteczko Wilanów in Warsaw ,8 mpln ,3 mpln In progress In progress *Miejskie Przedsiębiorstwo Wodociągów i Kanalizacji (Municipal Water and Wastewater Company) 18

19 CONTENTS Q OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING INVESTMENT PORTFOLIO 19

20 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) 20

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

22 ONGOING PROJECTS Śródmieście Wilanów, bud. A Location : Warszawa Commenced 3Q2011 Planned completion 3Q m 2 usable area 170 units, available 48 units Śródmieście Wilanów, bud. C Location : Warszawa Commenced 3Q2012 Planned completion 3Q m 2 usable area 162 units, available 77 units Ostoja Wilanów (etap 7) Location : Warszawa Commenced 3Q2011 Planned completion 2Q m 2 usable area 324 units, available 212 units 22

23 ONGOING PROJECTS Osiedle Tęczowy Las (building 5) Location: Bartąg near Olsztyna Commenced 1Q2012 Planned completion 3Q m 2 usable area 103 units, available 73 units Osiedle Innova (phases 4/5) Location : Wrocław Commenced 1Q2012/1Q2012 Planned completion 2H2014/2H /4 468 m 2 usable area 92/92 units, available 35/36 units Ku Słońcu (phase 2, building 1) Location : Szczecin Commenced 2Q2012 Planned completion 4Q m 2 usable area 158 units, available 158 units 2 Potoki (phase 2, buildings 6-9) Location : Gdańsk Commenced 2Q2012 Planned completion 3Q m 2 usable area 162 units, available 148 units 23

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