Dom Development S.a. · GPW:DOM
Dom Development — FY2021 Earnings Presentation
31 slides from Dom Development's earnings presentation, Mar 18, 2022
Slide 1: Presentation of 2021 Results
DOM DEVELOPMENT S.A. CONSOLIDATED GROUP PRESENTATION OF 2021 RESULTS 18 MARCH 2022
Slide 2: 2021 at Dom Development Group
2021 AT DOM DEVELOPMENT GROUP 4 066 PLN 667k PLN 325m UNITS SOLD AVERAGE VALUE 2021 CONSOLIDATED NET PROFIT record sales +8% YoY per sold unit +12% YoY record profit PLN 648m PLN 10 per share Cracow CASH AS AT 31.12.2021 NEW MARKET DIVIDEND PAID PLN 255m above interest-bearing PLN 254m in total cont
Slide 3: Dom Development Group in Cracow
DOM DEVELOPMENT GROUP IN CRACOW AS PLANNED, IN 2021 WE ENTERED CRACOW MARKET 1 July 2021 purchase of a 77% stake in Sento S.A. for PLN 35m 28 February 2022 acquisition of companies from BUMA Group for PLN160m* TOTAL 2021 Sales 245 261 506 Units under construction 190 224 414 Units in land bank 727 1
Slide 4: 2021 Financial Summary
2021 FINANCIAL SUMMARY REVENUE 2021 PLN 1 897m 2020 PLN 1 815m Change PLN +82m +5% 33% GROSS MARGIN 2020: 32% NET PROFIT 2021 PLN 325m 2020 PLN 302m Change PLN +23m +8% 28% ROE 2020: 28% NET CASH 31.12.2021 PLN 255m 31.12.2020 PLN 266m Change PLN -11m -4% -20% GEARING 31.12.2020: - 23% 4
Slide 5: Market in 2021
MARKET IN 2021 • Strong demand across all market segments • Insufficient market supply due to administrative delays and permit problems, particularly in Warsaw • Further price growth resulting from surging inflation and supply restrictions • Interest rate increases in Q4 slightly limited mortgage af
Slide 6: Russian Invasion of Ukraine and Its Impact on the Market Environment
RUSSIAN INVASION OF UKRAINE AND ITS IMPACT ON THE MARKET ENVIRONMENT • Inflow to Poland of almost 2 milion refugees within three weeks • Strong social mobilisation to help Ukrainians and the shock caused by destabilisation have resulted in people postponing decisions on flat purchases • Concentratio
Slide 7: Dom Development Group at the Beginning of 2022
DOM DEVELOPMENT GROUP AT THE BEGINNING OF 2022 • We are actively supporting refugees, in cooperation with local authorities • High cash balance and available credit lines provide us with stability during the current turmoil • We started the year with 5 000 flats sold with a total valueof PLN 3bn, wh
Slide 8: Annual Net Sales
ANNUAL NET SALES RECORD VOLUMES AND INCREASING MARKET DIVERSIFICATION No. of units Change Net sales (units) 2021 2020 YoY Warsaw 2 165 2 340 -7% 3 975 4 066 3 661 3 756 Tri-City 1 263 1 015 +24% 3 602 Wroclaw 519 401 +29% Cracow* 119 - - Dom Development 4 066 3 756 +8% Group * Dom Development Group
Slide 9: Net Sales Value
NET SALES VALUE SALES VALUE UP 21% YOY WHILE VOLUME INCREASED BY 8% PLN m Net sales value Change 2021 2020 (PLN m) YoY Warsaw 1 577 1 521 +4% 2 575 Tri-City 696 438 +59% 2 131 Wroclaw 230 172 +34% 1 941 1 695 1 740 Cracow* 72 - - Dom Development 2 575 2 131 21% Group * Dom Development Group entered
Slide 10: 2021 Sales Segmentation
2021 SALES SEGMENTATION 12% INCREASE IN AVERAGE TRANSACTION VALUE COMBINED WITH RECORD SALES VOLUME Dom Development Group 2021 sales value segmentation over PLN 700k 33% Average transaction Change 2021 2020 PLN 600-700k 14% value (PLN k) YoY Warsaw 774 685 +13% PLN 500-600k 16% Tri-City 568 453 +25%
Slide 11: Offer
OFFER OFFER LEVEL MAINTAINED DESPITE RECORD SALES VOLUME AND CHALLENGING MARKET, OVER 1,750 UNITS LAUNCHED IN Q4 No. of units available for sale Group offer 31.12. 31.12. Change by location 2021 2020 YoY Warsaw 1 161 1 051 +10% 2 979 2 896 Tri-City 753 1 017 -26% 2 482 2 480 2 255 Wroclaw 457 414 +1
Slide 12: Launches in Q4 2021
LAUNCHES IN Q4 2021 APARTAMENTY LUDWIKI – NEW, PRESTIGOUS WARSAW PROJECT 432 units Wola district of Warsaw, 110 units near Płocka metro station Bemowo district of Warsaw 131 units, Krzyki-Jagodno 186 flats 93 flats district of Wroclaw Pogórze, near Gdynia south of Gdańsk 12
Slide 13: Units Under Construction
UNITS UNDER CONSTRUCTION RECORD NUMBER OF UNITS UNDER CONSTRUCTION - ALL SITES PROGRESSING ON TIME AND WITH HIGH MARGINS No. of units Units under 31.12. 31.12. Change construction 2021 2020 YoY Warsaw 2 584 2 433 +6% 5 930 Tri-City 2 283 2 044 +12% 5 221 5 298 4 718 Wroclaw 873 821 +6% 4 413 Cracow
Slide 14: Land Bank – Owned and Controlled
LAND BANK – OWNED AND CONTROLLED RECORD LAND BANK – ALMOST 17K PLOTS TO BE DEVELOPED No. of units to be developed 16 985 14 215 14 666 Change 12 311 7 039 Land Bank Owned Controlled Total YoY Warsaw 4 574 4 755 9 329 +24% 6 339 7 975 4 702 Tri-City 3 931 1 269 5 200 -6% Wroclaw 880 849 1 729 +10% Cr
Slide 15: Deliveries
DELIVERIES WE ARE DELIVERING THE HIGHEST QUALITY FLATS ON SCHEDULE No. of units Change Deliveries in units 2021 2020 YoY Warsaw 1 798 1 807 - Tri-City 972 824 +18% 3 632 3 482 3 332 Wroclaw 470 375 +25% 2 929 3 006 Cracow* 92 - - Dom Development 3 332 3 006 +11% Group * Dom Development Group entered
Slide 16: Profit and Loss Account
PROFIT AND LOSS ACCOUNT ANOTHER RECORD YEAR FOR DOM DEVELOPMENT GROUP Profit and Loss Account 2021 2020 Change YoY Sales Revenues 1 897.5 1 815.0 +5% Handovers (units) 3 332 3 006 +11% Revenue per unit (PLN’000) 569.5 603.8 -6% Gross Profit on Sales 625.2 578.8 +8% Gross Profit Margin 32.9% 31.9% +1
Slide 17: Gross Margin on Sales
GROSS MARGIN ON SALES CONSISTENT AND EFFECTIVE USE OF MARKET OPPORTUNITIES 31,9% 32,9% 30,1% 27,5% 27,5% 2017 2018 2019 2020 2021 17
Slide 18: ROE and Gearing
ROE AND GEARING HIGH RETURN ON EQUITY AND LOW DEBT 27,9% 28,1% 24,5% 22,6% 20,5% 14% ROE annual net income / equity beginning balance 6% 7% Gearing net interest-bearing debt* 2017 2018 2019 2020 2021 / equity closing balance *bonds and bank loans less cash (including escrow accounts) -20% -23% 18
Slide 19: Cumulative Net Sales to Be Recognized in P&L
CUMULATIVE NET SALES TO BE RECOGNIZED IN P&L (UNITS SOLD BUT NOT DELIVERED - PRESALES) OVER PLN 3 BILLION REVENUE PIPELINE PLN m 3 000 2 500 2 000 1 500 Units sold but not delivered (presales): Value 1 000 31.12.2020 4 111 units PLN 2 222m 31.12.2021 5 030 units, including: PLN 3 003m 500 • 1 192 fi
Slide 20: Balance Sheet
BALANCE SHEET STRONG BALANCE SHEET AND LOW DEBT PLN m 3 800 ASSETS 31.12.2021 31.12.2020 Change 3 600 CASH Current Assets 3 767 3 182 +18% 3 400 SHORT-TERM LIABILITIES Cash 648 636 +2% 3 200 DEFFERED Incl. escrow accounts 41 50 -19% 3 000 INCOME Inventory, including: 3 025 2 424 +25% 2 800 Land and
Slide 21: Debt Maturity Structure
DEBT MATURITY STRUCTURE OVER PLN 1 BILLION OF AVAILABLE FINANCING AND WELL-SPREAD DEBT MATURITY SUPPORT OUR AGILITY PLN m PLN 648m CASH 31 100 110 PLN 414m UNDRAWN CREDIT LINES 51 50 50 2022 2023 2024 2025 2026 Bonds Bank Loans As of 31.12.2021 21
Slide 22: Cash Flow
CASH FLOW HIGH OPERATING CASH FLOW PROVIDES SECURITY Cash flow 31.12.2021 31.12.2020 Profit/(loss) before tax 405.5 378.6 Changes in inventory (367.8) 125.7 Changes in prepayments and deferred income 431.0 262.9 Other adjustments 6.2 29.1 Cash flow generated from operating activities 474.9 796.4 Int
Slide 23: Dividend
DIVIDEND RECORD PAYMENT IN 2021 – PLN 10.00 PER SHARE, PLN 254M IN TOTAL FROM 2020 PROFITS RECOMMENDATION ON DIVIDEND PAYMENT FROM 2021 PROFITS TO BE ISSUED UPON ANALYSIS OF THE IMPACT OF THE WAR IN UKRAINE Dividend per share (PLN) Dividend yield ON COMPANY BUSINESS 10,00 10,5% 9,00 10% 8,9% 8,5% 8,
Slide 24: Summary: 2021
SUMMARY: 2021 • Record 4 066 units sold with high margin • 5 930 units under construction as at the end of December • Timely deliveries of 3 332 units at an average value of PLN 569k • Record PLN 325m net profit • PLN 648m cash at bank with negative gearing of (20)% • Successful entry into strong ne
Slide 25: Appendices
DOM DEVELOPMENT APPENDICES
Slide 26: Commencement of Handovers in 2022
COMMENCEMENT OF HANDOVERS IN 2022 NO. OF COMMENCEMENT NO. OF COMMENCEMENT PROJECT / PHASE LOCATION PROJECT / PHASE LOCATION UNITS OF HANDOVERS UNITS OF HANDOVERS ŻOLIBORZ ARTYSTYCZNY PHASE14 WARSAW 280 JAN'22 OSIEDLE ZIELNA PHASE 1 WROCLAW 160 JUL'22 STACJA GROCHÓW PHASE 3 WARSAW 125 FEB'22 ZIELONY
Slide 27: Projects Under Construction and in Preparation: Warsaw
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: WARSAW NO. OF UNITS, AS OF 31/12/2021 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 1 METRO ZACHÓD (+1 255) 496 2 398 2 LITERACKA --- 530 3 CIOŁKA --- 133 11 4 APARTAMENTY LUDWIKI 432 --- 12 5 URBINO 124 --- 6 APARTAMENTY SOLIPSKA (NEW) --- 188 2 13 7
Slide 28: Projects Under Construction and in Preparation: Tri-City
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: TRI-CITY NO. OF UNITS, AS OF 31/12/2021 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 16 1 PERSPEKTYWA 322 283 2 DOKI + MONTOWNIA 654 546 3 DOLNE MIASTO --- 371 4 PIEKARNICZA --- 536 5 DYNAMIKA 196 138 6 NASZE MIEJSCE 80 --- 14 13 10 1511 12 8 9 7 ZIEL
Slide 29: Projects Under Construction and in Preparation: Wroclaw
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: WROCLAW NO. OF UNITS, AS OF 31/12/2021 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 4 1 OSIEDLE CHOCIEBUSKA 11 (NOWY DWÓR) 196 --- 66 2 APARTAMENTY OŁTASZYN (KUSTRONIA) 158 --- 3 KOMEDY (BUFOROWA) 359 96 5 4 ZIELNA 160 146 1 7 6 5 CENTRUM --- 171 6 OS
Slide 30: Projects Under Construction and in Preparation: Cracow
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: CRACOW NO. OF UNITS, AS OF 31/12/2021 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 1 SENTOTU 190 --- 2 GÓRKA NARODOWA --- 561 51 2 TOTAL – SENTO S.A. 190 561 3 3 PRANDOTY --- 502 4 MALBORSKA 90 33 GÓRKA NARODOWA 4 5 134 835 (PRZESTRZENIE BANACHA) TOTA
Slide 31: For further information please contact
For further information please contact: Magdalena Cumanis Investor Relations Director tel. +48 22 351 68 49 e-mail: magdalena.cumanis@domd.pl www.inwestor.domd.pl Dom Development S.A. endeavours to ensure that the information in the presentation is complete. up-to-date and accurate. However, we do n