Investor relations

Report concerns:
A correction of the forecast for 2008

Report’s text:
Acting pursuant to § 5.1.(25) and § 31.2 of the Ordinance of the Minister of Finance on current and periodical reporting by issuers of securities of 19 October 2005 (Journal of Laws No. 209/2005, item 1744) (hereinafter referred to as the Ordinance), J.W. Construction Holding S.A. with its registered office in Ząbki ("the Company") hereby officially reports to the public a new forecast regarding its financial results for the year 2008. A preliminary forecast was presented in the current report No. 3 of 8 January 2008.

Preliminary forecast for the year 2008:

Sales revenues: PLN 1,085.4 m
Profit on sales: PLN 345.7 m
Operational result: PLN 295.5 m
Gross profit: PLN 278.2 m
Net profit: PLN 219.7 m

A new forecast for the year 2008:

Sales revenues: PLN 819.9 m
Profit on sales: PLN 256.5 m
Operational result: PLN 207.0 m
Gross profit: PLN 190.2 m
Net profit: PLN 150.6 m

The correction of the forecasted results is a consequence of deferring until upcoming years the revenues and costs of the following investments: "Zdziarska", "Światowida", "Łódź – Tymienieckiego II". It has to be pointed out that due to the rules of recognising the result of property development projects, as applied by the Issuer, which are compliant with IAS 11, the moment of recognising a profit on an investment depends on generating at least 50 % of sales and 40 % of costs.
The factors which have contributed to the correction of the financial results in 2008 as stated at the publication of forecasts include:
- considerable delays, independent of the Issuer, in issuing administrative decisions as part of obtaining a building permit (environment-related decisions, different types of permits, etc.),
- lack of relevant administrative decisions, regarding the above mentioned investments, in the time limits forecasted in schedules before, which resulted in delays in the investments,
- a demand on the housing market lower than expected at the moment of preparing forecasts.

The Company shall quarterly evaluate the possibility of delivering the forecasted financial results for the financial year 2008. A possible change in any item included in this forecast of the Company’s financial results (by at least 10%) shall be reported to the public as a correction of this forecast in the form of a current report.