Dom Development S.a. · GPW:DOM
Dom Development — Q1 2022 Earnings Presentation
24 slides from Dom Development's earnings presentation, May 23, 2022
Slide 1: Presentation of Q1 2022 Results
DOM DEVELOPMENT S.A. CONSOLIDATED GROUP PRESENTATION OF Q1 2022 RESULTS 23 MAY 2022
Slide 2: Q1 2022 at Dom Development Group
Q1 2022 AT DOM DEVELOPMENT GROUP • Launch of Dom Development Cracow and finalisation of acquisitions of Sento Group and companies from BUMA Group • 758 units sold with high margins • Launch of 9 phases (1 137 units) • PLN 535m cash as at 31 March 2022 and negative gearing • Record high dividend reco
Slide 3: Q1 2022 Financial Summary
Q1 2022 FINANCIAL SUMMARY REVENUE Q1 2022 PLN 727m Q1 2021 PLN 808m Change PLN -81m -10% 32% GROSS MARGIN Q1 2021: 32% NET PROFIT Q1 2022 PLN 142m Q1 2021 PLN 174m Change PLN -32m -19% 22% ROE 12M Q1 2021: 39% NET CASH 31.03.2022 PLN 158m 31.03.2021 PLN 277m Change PLN -119m -43% -11% GEARING 31.03.
Slide 4: Market
MARKET • Russian invasion of Ukraine – market slowdown in the first phase of the war, visible rebound since the second half of March • Surging inflation and interest rates – reduced mortgage availability, but negative real interest on deposits still encourages the investment of savings in real estat
Slide 5: Sales
SALES DROP IN VOLUME DUE TO WAR IN UKRAINE AND LIMITED MORTGAGE AFFORDABILITY No. of units Q1 Q1 Change Net sales (units) 2022 2021 YoY Warsaw 385 600 (36)% Tri-City 236 342 (31)% 1 084 1 032 1 094 Wroclaw 84 142 (41)% 856 758 Cracow* 53 - n/a Dom Development 758 1 084 (30)% Group * Dom Development
Slide 6: Q1 2022 Sales Segmentation
Q1 2022 SALES SEGMENTATION WE ARE THE LEADER IN UPPER SEGMENT FLATS Dom Development Group Q1 2022 sales value segmentation over PLN 700k 33% Average transaction Q1 Q1 Change PLN 700-600k 17% value (PLN k) 2022 2021 YoY Warsaw 709 722 (2)% PLN 600-500k 22% Tri-City 641 497 +29% PLN 500-400k 14% Wrocl
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 No. of units available for sale Group offer 31.03. 31.03. Change by location 2022 2021 YoY Warsaw 1 020 959 6% 2 375 2 480 2 381 Tri-City 894 859 4% 1 771 1 816 Wroclaw 373 557 (
Slide 8: Launches in Q1 2022
LAUNCHES IN Q1 2022 187 flats in the Włochy 108 units in the Ursynów 320 flats two new phases in district of Warsaw district of Warsaw the Bemowo district of Warsaw 204 units 82 flats in downtown Gdańsk in Pogórze near Gdynia 146 units in Wroclaw 90 flats in Cracow 8
Slide 9: 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 31.03. 31.03. Change construction 2022 2021 YoY Warsaw 3 199 2 699 +19% 6 977 6 593 Tri-City 2 345 2 163 +8% 5 579 5 804 5 930 Wroclaw 1 019 717 +42% Craco
Slide 10: Land Bank – Owned and Controlled
LAND BANK – OWNED AND CONTROLLED OPTIMAL STRUCTURE AND HIGH QUALITY OF LAND BANK; STRONG GROWTH IN CRACOW No. of units to be developed 18 619 17 047 16 775 16 985 15 592 7 034 Change Land Bank Owned Controlled Total YoY 7 039 9 538 8 430 Warsaw 5 091 4 756 9 847 +16% 8 448 Tri-City 3 668 1 269 4 937
Slide 11: Deliveries
DELIVERIES STRONG Q1 DELIVERIES WILL HELP US MEET ANNUAL TARGETS No. of units Q1 Q1 Change Deliveries in units 2022 2021 YoY Warsaw 829 906 (8)% Tri-City 179 150 +19% 1 366 Wroclaw 1 310 - 1 094 Cracow* 85 - n/a 811 Dom Development 556 599 1 094 1 366 (20)% Group * Dom Development Group entered Crac
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) CONTINUING UPWARD TREND OF REVENUE POTENTIAL PLN m 3 000 2 500 2 000 1 500 Units sold but not delivered (presales): Value 1 000 31.03.2021 3 829 units PLN 2 024m 31.03.2022 4 793 units, including: PLN 2 835m 500 •
Slide 13: Profit and Loss Account
PROFIT AND LOSS ACCOUNT HIGH MARGIN AND AVERAGE VALUE PER UNIT DELIVERED, QUARTERLY PROFIT SPLIT SKEWED BY RECORD DELIVERIES IN Q1 2021 Change Profit and Loss Account Q1 2022 Q1 2021 YoY Sales Revenues 727.0 807.9 (10)% Handovers (units) 1 094 1 366 (20)% Revenue per unit (PLN’000) 665 591 +12% Gros
Slide 14: Balance Sheet
BALANCE SHEET STRONG BALANCE SHEET SUPPORTS GROUP DEVELOPMENT AND GROWTH PLN m ASSETS 31.03.2022 31.03.2021 Change 4 000 Current Assets 3 897 3 073 +27% 3 800 (17)% CASH Cash 535 647 3 600 Incl. escrow accounts 87 45 +91% SHORT-TERM LIABILITIES 3 400 DEFFERED Inventory, including: 3 188 2 277 +40% I
Slide 15: Debt Maturity Structure
DEBT MATURITY STRUCTURE ALMOST PLN 1 BILLION OF AVAILABLE FINANCING AND WELL-SPREAD DEBT MATURITY SUPPORT OUR AGILITY PLN m PLN 535m CASH 17 100 110 PLN 422m UNDRAWN CREDIT LINES 51 50 50 2022 2023 2024 2025 2026 Bonds Bank Loans As of 31.03.2022 15
Slide 16: Dividends
DIVIDENDS PLN 10.50 PER SHARE – RECOMMENDATION OF RECORD HIGH PAYMENT FROM 2021 PROFIT Dividend per share (PLN) Dividend yield 12% 10,00 10,5% 9,00 10% 8,9% 8,00 8,5% 8,3% 7,00 8% 6,4% 6,6% 6,00 6,3% 10,50* 6% 5,00 10,00 4,9% 9,50 4,4% 4,5% 9,05 4,00 7,60 3,3% 4% 3,00 2,5% 5,05 2,00 1,9% 1,5% 3,68 2
Slide 17: Summary: Q1 2022
SUMMARY: Q1 2022 • Significant growth potential in Cracow unlocked by our acquisition of the BUMA Group companies • Mortgage-dependent demand constrained by rising interest rates and increased market volatility triggered by Russian aggression in Ukraine • Record 6 977 units under construction as at
Slide 18: Appendices
DOM DEVELOPMENT APPENDICES
Slide 19: Commencement of Handovers in Q2-Q4 2022
COMMENCEMENT OF HANDOVERS IN Q2-Q4 2022 NO. OF COMMENCEMENT NO. OF COMMENCEMENT PROJECT / PHASE LOCATION PROJECT / PHASE LOCATION UNITS OF HANDOVERS UNITS OF HANDOVERS OSIEDLE PERSPEKTYWA PHASE 1/3 TRI-CITY 70 APR'22 APARTAMENTY SŁUŻEWIEC WARSAW 37 JUL'22 OSIEDLE BEAUFORTA BUILDING 10 TRI-CITY 32 AP
Slide 20: Projects Under Construction and in Preparation: Warsaw
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: WARSAW NO. OF UNITS, AS OF 31/03/2022 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 1 METRO ZACHÓD 816 2 078 2 LITERACKA --- 530 3 APARTAMENTY KOŁO PARKÓW (CIOŁKA) --- 133 12 4 APARTAMENTY LUDWIKI 432 --- 13 5 URBINO 124 --- 6 APARTAMENTY SOLIPSKA 187
Slide 21: Projects Under Construction and in Preparation: Tri-City
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: TRI-CITY NO. OF UNITS, AS OF 31/03/2022 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 16 1 PERSPEKTYWA 456 102 2 DOKI + MONTOWNIA 654 546 3 DOLNE MIASTO --- 371 4 PIEKARNICZA --- 536 5 DYNAMIKA 196 138 14 13 6 NASZE MIEJSCE 46 --- 1511 12 10 8 9 7 ZIEL
Slide 22: Projects Under Construction and in Preparation: Wroclaw
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: WROCLAW NO. OF UNITS, AS OF 31/03/2022 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 1 OSIEDLE CHOCIEBUSKA 11 196 --- 9 2 APARTAMENTY OŁTASZYN 158 --- 4 66 3 OSIEDLE KOMEDY 359 96 4 ZIELNA 306 --- 5 5 CENTRUM --- 154 1 7 6 6 OSOBOWICE --- 88 7 NOWY DWÓ
Slide 23: Projects Under Construction and in Preparation: Cracow
PROJECTS UNDER CONSTRUCTION AND IN PREPARATION: CRACOW NO. OF UNITS, AS OF 31/03/2022 UNDER IN NO. PROJECT CONSTRUCTION PREPARATION 1 SENTOTU 190 --- 2 GÓRKA NARODOWA (+969) 134 1 396 12 3 PRANDOTY --- 502 3 4 MALBORSKA 90 33 TOTAL CRACOW 414 1 931 4 PROJECT IN PREPARATION PROJECT UNDER CONSTRUCTION
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