Dom Development S.a. · GPW:DOM
Dom Development — H1 2022 Earnings Presentation
24 slides from Dom Development's earnings presentation, Aug 25, 2022
Slide 1: Presentation of H1 2022 Results
DOM DEVELOPMENT S.A. CONSOLIDATED GROUP PRESENTATION OF H1 2022 RESULTS 25 AUGUST 2022
Slide 2: H1 2022 at Dom Development Group
H1 2022 AT DOM DEVELOPMENT GROUP • 1 559 units sold in H1 2022 with high margins, including 801 in Q2 • Launch of 21 project phases (2 304 units) confirms our effectiveness in obtaining building permits • PLN 575m cash balance as at 30 June 2022 and negative gearing (-19%) • DOM 2030 – adoption of D
Slide 3: H1 2022 Financial Summary
H1 2022 FINANCIAL SUMMARY REVENUE H1 2022 PLN 1 329m H1 2021 PLN 1 144m Change +PLN 185m +16% 31% GROSS MARGIN H1 2021: 33% NET PROFIT H1 2022 PLN 236m H1 2021 PLN 233m Change +PLN 3m +1% 29% ROE 12M 12M to 06.2021: 35% NET CASH 30.06.2022 PLN 214m 30.06.2021 PLN 65m Change +PLN 149m +229% -19% GEAR
Slide 4: Market
MARKET • Rising interest rates and tightening of mortgage granting criteria since April – strong cuts in mortgage availability affecting most visibly demand in popular segment • Decrease in market sales in Q2 as compared to Q1 against QoQ increase at Dom Development Group • Surging inflation and neg
Slide 5: Sales
SALES QoQ INCREASE AS COMPARED TO MARKET DOWNTURN IN SALES No. of units H1 H1 Change Net sales (units) 2022 2021 YoY Warsaw 833 1 148 (27)% Tri-City 439 674 (35)% 1 032 1 094 Wroclaw 176 294 (40)% 856 801 758 Cracow* 111 - n/a Dom Development 1 559 2 116 (26)% Group * Dom Development Group entered C
Slide 6: H1 2022 Sales Segmentation
H1 2022 SALES SEGMENTATION WE ARE THE LEADER IN UPPER SEGMENT FLATS – MORE RESILIENT TO MARKET DOWNTURN Dom Development Group H1 2022 sales value segmentation over PLN 700k 35% Average transaction H1 H1 Change PLN 700-600k 15% value (PLN k) 2022 2021 YoY Warsaw 709 758 (6)% PLN 600-500k 21% Tri-City
Slide 7: Units Available for Sale - Under Construction and Finished
UNITS AVAILABLE FOR SALE - UNDER CONSTRUCTION AND FINISHED WE ARE CAREFULLY MANAGING THE LEVEL AND STRUCTURE OF OUR OFFER; SIGNIFICANT INCREASE OF WARSAW OFFER THANKS TO SUCCESS IN OBTAINING BUILDING PERMITS No. of units available for sale 2 657 2 480 40 55 2 381 39 1 771 1 816 Group offer 30.06. 30
Slide 8: Launches in Q2 2022
LAUNCHES IN Q2 2022 129 apartments 133 units in the Wola 134 flats in the North 293 flats in the Bemowo in Mokotów - Warsaw district of Warsaw Praga district of Warsaw district of Warsaw 102 units 60 units in Jastarnia 92 units in downtown Gdańsk (Hel peninsula) in Rumia 88 flats 136 flats in Wrocla
Slide 9: Units Under Construction
UNITS UNDER CONSTRUCTION ALL SITES PROGRESSING ON TIME AND WITH HIGH MARGINS No. of units Units under 30.06. 30.06. Change construction 2022 2021 YoY Warsaw 3 532 2 718 +30% 6 977 7 245 Tri-City 2 317 2 344 (1)% 6 593 5 804 5 930 Wroclaw 846 742 +14% Cracow* 550 - n/a Dom Development 7 245 5 804 +25
Slide 10: Land Bank – Owned and Controlled
LAND BANK – OWNED AND CONTROLLED HIGH QUALITY, DIVERSIFIED LAND BANK No. of units to be developed 18 619 17 871 17 047 16 775 16 985 7 034 6 562 Change 7 039 Land Bank Owned Controlled Total YoY 9 538 8 430 Warsaw 4 996 4 175 9 171 (5)% Tri-City 3 515 1 334 4 849 (12)% Wroclaw 1 003 1 053 2 056 +12%
Slide 11: Deliveries
DELIVERIES STRONG H1 DELIVERIES WILL HELP US MEET ANNUAL TARGETS No. of units H1 H1 Change Deliveries in units 2022 2021 YoY Warsaw 1 294 1 201 +8% 1 366 Tri-City 548 277 +98% 1 094 1 084 Wroclaw 236 444 (47)% 811 Cracow* 100 - n/a 599 Dom Development 556 2 178 1 922 +13% Group * Dom Development Gro
Slide 12: Cumulative Net Sales to Be Recognized in P&L
CUMULATIVE NET SALES TO BE RECOGNIZED IN P&L (UNITS SOLD BUT NOT DELIVERED - PRESALES) STRONG REVENUE POTENTIAL IN FORTHCOMING QUARTERS PLN m 3 000 2 500 2 000 1 500 Units sold but not delivered (presales): Value 1 000 30.06.2021 4 305 units PLN 2 365m 30.06.2022 4 510 units, including: PLN 2 861m 5
Slide 13: Profit and Loss Account
PROFIT AND LOSS ACCOUNT WE MAINTAIN HIGH PROFITABILITY DESPITE ELEVATED CONSTRUCTION COSTS Profit and Loss Account Q2 2022 Q2 2021 Change YoY H1 2022 H1 2021 Change YoY Sales Revenues 601.8 336.5 +79% 1 328.8 1 144.4 +16% Handovers (units) 1 084 556 +95% 2 178 1 922 +13% Revenue per unit (PLN’000) 5
Slide 14: Balance Sheet
BALANCE SHEET OUR STRONG BALANCE SHEET OFFERS SECURITY AGAINST MARKET VOLATILITY PLN m 4 000 ASSETS 30.06.2022 30.06.2021 Change 3 800 CASH Current Assets 3 906 3 171 +23% 3 600 Cash 575 549 +5% 3 400 DEFFERED SHORT-TERM LIABILITIES Incl. escrow accounts 77 42 +86% INCOME 3 200 Inventory, including:
Slide 15: Debt Maturity Structure
DEBT MATURITY STRUCTURE ALMOST PLN 1 BILLION OF AVAILABLE FINANCING AND WELL-SPREAD DEBT MATURITY PLN m PLN 575m CASH 1 100 110 PLN 407m UNDRAWN CREDIT LINES 50 50 50 2022 2023 2024 2025 2026 Bonds Bank Loans As of 30.06.2022 r. 15
Slide 16: DOM 2030 – Dom Development Group ESG Strategy
DOM 2030 – DOM DEVELOPMENT GROUP ESG STRATEGY STRATEGY PILLARS AND MAIN TARGETS: 30% reduction ‘15-minute City’ in 90% Top class in CO2 emissions by 2030 of our projects by 2030 corporate governance per unit under construction, as compared to active work towards an optimal structure and maximisation
Slide 17: Summary: H1 2022
SUMMARY: H1 2022 • Significant growth potential in Cracow unlocked by our acquisition of the BUMA Group companies • Mortgage-dependent demand constrained by rising interest rates and affordability criteria • Very strong demand from cash buyers • Deliveries of 2 178 units, including 1 084 in Q2 • 31%
Slide 18: Appendices
DOM DEVELOPMENT APPENDICES
Slide 19: Commencement of Handovers in Q3-Q4 2022
COMMENCEMENT OF HANDOVERS IN Q3-Q4 2022 NO. OF COMMENCEMENT NO. OF COMMENCEMENT PROJECT / PHASE LOCATION PROJECT / PHASE LOCATION UNITS OF HANDOVERS UNITS OF HANDOVERS APARTAMENTY SŁUŻEWIEC WARSAW 37 JUL'22 METRO ZACHÓD PHASE 3/1 WARSAW 145 OCT'22 STACJA GROCHÓW PHASE 4 WARSAW 159 AUG'22 REZYDENCJA
Slide 20: Projects Under Construction and in Preparation: Warsaw
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: WARSAW NO. OF UNITS, AS OF 30/06/2022 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 1 METRO ZACHÓD 1 109 1 779 2 LITERACKA --- 530 3 APARTAMENTY KOŁO PARKÓW (CIOŁKA) 133 --- 4 APARTAMENTY LUDWIKI 432 --- 13 5 URBINO (+180) 124 180 14 6 APARTAMENTY SOLI
Slide 21: Projects Under Construction and in Preparation: Tri-City
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: TRI-CITY NO. OF UNITS, AS OF 30/06/2022 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 1516 1 PERSPEKTYWA 558 --- 2 DOKI + MONTOWNIA 654 546 3 DOLNE MIASTO --- 371 4 SYNTEZA (PIEKARNICZA) --- 536 5 DYNAMIKA 196 138 14 13 6 WIDOKI 92 124 6 11 12 10 9 7 Z
Slide 22: Projects Under Construction and in Preparation: Wroclaw
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: WROCLAW NO. OF UNITS, AS OF 30/06/2022 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 1 OSIEDLE CHOCIEBUSKA 11 196 --- 9 2 APARTAMENTY OŁTASZYN 158 --- 4 66 3 OSIEDLE KOMEDY 258 96 4 ZIELNA (+196) 146 196 5 5 CENTRUM --- 154 1 7 6 6 OSOBOWICE 88 --- 7 N
Slide 23: Projects Under Construction and in Preparation: Cracow
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: CRACOW NO. OF UNITS, AS OF 30/06/2022 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 1 SENTOTU 190 --- 2 GÓRKA NARODOWA 270 1 260 12 3 PRANDOTY --- 502 3 4 MALBORSKA 90 33 TOTAL CRACOW 550 1 795 4 PROJECT IN PREPARATION PROJECT UNDER CONSTRUCTION 23
Slide 24: 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