Investor relations

After the first three quarters of 2009, J.W. Construction Holding S.A., Poland’s largest housing developer, presents good financial results. The Company earned PLN 491 million in revenues, a net profit of PLN 69.3 million and operating profit above PLN 100 million. In addition, the Company’s Management Board approved its first commercial development project for implementation.

After the first three quarters of 2009, J.W. Construction Holding S.A. showed a net profit of PLN 69.3 million, which means a 27% increase as compared with the corresponding period in 2008. Operating profit was equally satisfactory and increased by 23% to PLN 100.75 million (PLN 81.78 million after the first three quarters of 2008). Gross margin also improved in that period to 26.62%, i.e. 2 percentage points above the prior year level. It is worth noting that the above increases in profits were achieved despite a 4.1% decline in revenues to PLN 491.08 million in the subject period of 2009.

Sales growing step by step and good profits are the best proof that the hardest times for the industry are now left behind. In the first three quarters the Company sold 566 apartments and Q3, 2009 was considerably better than Q3, 2008. It seems that the strategy adopted by J.W. Construction for the time of slowdown in the economy was efficient. The Company focused its housing proposal on mass-segment customers. It offered apartments that could be purchased by persons eligible to receive a credit subvention under the “Rodzina na swoim” Family Housing Assistance program. Good relationships with banks also allowed the Company to procure special mortgage terms for its clients, according to Ms. Małgorzata Szwarc - Sroka, Economic Division Director.

Gross margin on sale totaled PLN 130.7 million after the third quarter. It was affected by the value of settled housing premises, in particular developed as part of the following development projects: Lazurowa Estate, Escarpment Estate, Forest Estate, Górczewska I Estate, Górczewska Park Estate, Konstancin Villa, Village on Vistula River and Centrum Estate in Łódź.

In the light of sales growing 10 - 15% a month, J.W. Construction Holding has started preparations for new projects that are to meet the current demand and of a new offer for 2011 and 2012. Since its land resources are sufficient to build over 900,000 sq meters of housing space, or about 15,000 apartments, J.W. Construction needs no further land acquisition.

In order to provide a sufficient supply for 2011 – 2012, the Company will start building about 1,500 new apartments throughout Poland in the first two quarters of 2010. ‘Our plans include three projects in Warsaw (in Białołęka and Mokotów districts) and additional projects in Katowice and Łódź,’ says Ms. Małgorzata Szwarc - Sroka, Economic Division Director at J.W. Construction Holding S.A.

J.W. Construction Holding S.A. has commenced next steps to diversify its business portfolio. Simultaneously with its mass housing projects, the Company wants to develop commercial projects. In the next month, it intends to start its first office space project at ul. Badylarska in Warsaw. Despite an early stage, first tenants have showed their strong interest in office space to be provided in that building.

‘Another important effort to diversify the Company’s operations will be the next-month start-up of the first office building in Warsaw with 4,000 sq meters of office space. In 2010, we will commence additional two projects, in Warsaw and Szczecin,’ adds Ms. Małgorzata Szwarc - Sroka.

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