H1 2019 financial and opartating results of Dom Development S.A. Capital Group - leading polish house builder

1. Dom Development S.A.
ConsolidatedGroup
H1 2019 Results Presentation
23 August 2019

2. • Strong sales: 836 units, + 4 % y/y – we continue to maximize margins;
• Start of 16 projects with 1,019 units;
• Group is successfully building over half of all projects acting as its own general contractor;
• Large increase in the offer in the Tri-City and Wroclaw;
• Strong balance sheet and a low level of debt ratio maintained;
Q2 2019 Highlights
2

3. 3
•
Deliveries: 1,655 units + 15 % YoY
•
H1 2019 Financial Results Summary
Gross Margin on Sales: 29.3% + 1.3 p.p. YoY
Net Income: PLN 115.3m + 51 % YoY
Gearing as of 30.06.2019: 19.9% + 40.5 p.p. y/y
Revenues: PLN 766.8m + 20 % YoY

4. 4
• Return to a more normal price growth, despite continuing strong demand;
• Favourable macroeconomic factors supported strong demand: low interest rates, low unemployment and growing
real wages;
• Good availability of mortgage loans – the share of cash buyers continued to account for approx. 40% of Group sales;
• Continuing very high land prices limits supply;
• Stabilization of prices for construction materials and services;
Market in Q2 2019

5. 5
Quarterly net sales
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Warsaw Tri-City Wroclaw
848
802
946
1 006
926
1 0491 039
1 081
806
836
No. Of units
Net sales in units
Q2
2019
Q2
2018
Change
Warsaw 558 566 (1)%
Tri-City 162 183 (11)%
Wroclaw 116 53 119%
Dom Development Group 836 802 4%
Group sales by location
Net sales in units
H1
2019
H1
2018
Change
Warsaw 1 166 1 132 3%
Tri-City 389 388 0%
Wroclaw 207 130 59%
Dom Development Group 1 762 1 650 7%

6. Q2 2019 Sales Segmentation
9% 32% 41%
15%
20% 31%
20%
20% 10%
56%
28% 18%
0
100
200
300
400
500
600
Warsaw
Dom Development S.A.
Tri-City
Euro Styl S.A.
Wroclaw
Dom Development Wrocław Sp. z
o.o.
up to PLN 350k
PLN 350-450k
PLN 450-550k
over PLN 550k
18%
18%
19%
45%
0
100
200
300
400
500
600
700
800
900
1 000
Dom Development Group
No. of units No. of units
6
Transaction value includes price of a flat with fit-out (if purchased), storage room (if purchased) and parking space (if purchased).

7. Offer (units available for sale)
7
Group offer by location
No. of units
30.06.
2019
30.06.
2018
Change
Warsaw 2 153 2 182 (1)%
Tri-City 509 430 18%
Wroclaw 504 189 167%
Dom Development
Group
3 166 2 801 13%
31/03/2018 30/06/2018 30/09/2018 31/12/2018 31/03/2019 30/06/2019
Warsaw Tri-City Wroclaw
3 120
2 644
2 801
2 896
2 739
3 166

8. New construction starts
Project starts in Q2 2019:
Warsaw:
Włodarzewska 70/72 (102)
Osiedle Port Żerań phase 3 (152)
Tri-City:
Osiedle Beauforta - B12 (27)
Osiedle Beauforta - B13 (21)
Osiedle CIS (148)
Osiedle Przy Błoniach (Rumia Dębogórska) A (28)
Osiedle Przy Błoniach (Rumia Dębogórska) B (36)
Osiedle Przy Błoniach (Rumia Dębogórska) C (28)
Osiedle Przy Błoniach (Rumia Dębogórska) D (36)
Zielony Południk B9 (26)
Zielony Południk B10 (23)
Zielony Południk B11 (22)
Zielony Południk B12 (26)
Wroclaw:
Apartamenty Księcia Witolda (138)
Grabiszyńska (62)
Idylla 2 (144)
8
12projects
4projects
7projects
11projects
7projects
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Warsaw Tri-City Wroclaw
281
926
1 036
1 079
1 312
1 019
No. of units and projects
16projects

9. Units under construction
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Warsaw Tri-City Wroclaw
No. of units
5 791
5 074
6 409
4 413
5 447 5 372
9
60%
40%
Units under construction
30.06.2019
In-house general contractors
(Dom Construction and Euro Styl Construction)
External general contractors

10. Land Bank – owned and controlled*
10
*Land controlled without building conditions
Land bank 30.06.2019 30.06.2018 Change
Total
YoYNo. of units Owned Controlled Total Owned Controlled Total
Warsaw 2 911 3 310 6 221 4 441 2 400 6 841 (9)%
Tri-City 3 231 1 600 4 831 2 039 0 2 039 137%
Wroclaw 671 298 969 598 798 1 396 (31)%
Dom Development
Group
6 813 5 208 12 021 7 078 3 198 10 276 17%

11. Deliveries
11
Deliveries breakdown by location
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Warsaw Tri-City Wroclaw
674
553
440416
1025
587
1 604
1 215
1472
No. of units
230
No. Of units
H1
2019
H1
2018
Change
Warsaw 1 481 1 072 38%
Tri-City 166 238 (30)%
Wroclaw 8 131 (94)%
Dom Development
Group
1 655 1 441 15%
No. Of units
Q2
2019
Q2
2018
Change
Warsaw 369 688 (46)%
Tri-City 68 206 (67)%
Wroclaw 3 131 (98)%
Dom Development
Group
440 1 025 (57)%

12. Cumulative Net Sales to be Recognized in P&L
12
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI
2013 2014 2015 2016 2017 2018 2019
PLN m
Units sold but not delivered (presales) Value
30.06.2017
30.06.2018
3 056 units
3 422 units
1 392 mln PLN
1 485 mln PLN
30.06.2019 3 290 units, including: 1 655 mln PLN
• 656 finished units;
• 2 634 units under construction,
with 1 065 finishing in2019

13. Financial Results: Profit and Loss
13
IIAS 18, PLN m
Profit and Loss Account Q2 2019 Q2 2018 Change H1 2019 H1 2018 Change
Sales Revenues 238.7 435.7 (45)% 766.8 639.2 20%
Handovers (units) 440 1 025 (57)% 1 655 1 441 15%
Revenue per unit (PLN’000) 542.4 425.1 28% 463.3 443.6 4%
Gross Profit on Sales 79.4 118.1 (33)% 224.3 178.9 25%
Gross Profit Margin 33.3% 27.1% 6.1 p.p. 29.3% 28.0% 1.3 p.p.
Operating Profit 38.2 72.8 (48)% 143.5 95.4 50%
Operating Profit Margin 16.0% 16.7% (0.7) p.p. 18.7% 14.9% 3.8 p.p.
Profit Before Tax 38.4 72.8 (47)% 143.2 95.2 50%
Profit Before Tax Margin 16.1% 16.7% (0.6) p.p. 18.7% 14.9% 3.8 p.p.
Net Profit 31.1 58.8 (47)% 115.3 76.3 51%
Net Profit Margin 13.0% 13.5% (0.5) p.p. 15.0% 11.9% 3.1 p.p.
EPS (PLN) 1.24 2.35 (47)% 4.61 3.06 51%

14. 14
Financial Results: Balance Sheet
Consolidated Balance Sheet 30.06.2019 30.06.2018 Change
Shareholders’ funds (equity) 939.4 894.3 5%
Net debt/(net cash)* 186.9 (184.4) -
Gearing (net debt/equity) 19.9% (20.6)% 40.5 p.p.
Net asset value per share (PLN) 37.47 35.82 4.6%
Shares in issue (m) 25.1 25.0 0.4%
ROE (12M) 29.7 25.6% 4.1 p.p.
ROCE (12M) 26.7 25.7% 1.0 p.p.
IIAS 18, PLN m
*Bank debt plus bonds in issue less cash at banks (including escrow accounts)

15. 15
Debt Maturity Structure
100
110
50 50
125
0
20
40
60
80
100
120
140
160
180
200
by 30.06.2020 by 30.06.2021 by 30.06.2022 by 30.06.2023 by 30.06.2024
Bonds Bank loans
PLN m
Cash (including escrow accounts) as of 30/06/2019 PLN 248 m
Bond debt as of 30/06/2019 PLN 310 m
Available credit lines as of 30/06/2019 PLN 210 m

16. 16
Q2 2019 Summary
❑ Strong demand for our products on the Warsaw, Wroclaw and Tri-City markets;
❑ 836 units sold with high margins, + 4% YoY;
❑ 3,166 units available for sale;
❑ 5,372 units on 56 projects under construction;
❑ Construction of 1,019 units started across 16 projects;
❑ Land bank (owned and controlled) over 12 021 units in total;
❑ Q2 2019 consolidated net profit: PLN 31.1m;
❑ Gearing as of 30.06.2019: 19.9%;

17. 17

18. Appendix 1:
Commencement of handovers in 2019
Commencement of handovers: on schedule/earlier/delayed
18
Project Location No. of units
Commencement
of handovers
Project Location No. of units
Commencement
of handovers
Q3
Q4
Regaty faza 2 Warsaw 200 JUL 19
Amsterdam phase 3 Warsaw 202 NOV 19
Port Żerań phase 2 Warsaw 330 NOV 19
Księże Nowe Wroclaw 132 AUG 19
Osiedle Beauforta B4 Tri-City 21 NOV 19
Idea B7 Tri-City 27 AUG 19
Osiedle Beauforta B5 Tri-City 36 NOV 19
Cybernetyki 17 phase 3 Warsaw 240 AUG 19
Idea B8 Tri-City 38 NOV 19
Studio Arte Wroclaw 52 AUG 19
Zielony Południk B1 Tri-City 24 DEC 19
Żoliborz Artystyczny phase 10 Warsaw 273 DEC 19
Q4
Apartamenty Dolny Mokotów Warsaw 153 DEC 19
Zielony Południk B2 Tri-City 26 OCT 19
Osiedle Beauforta B6 Tri-City 27 DEC 19
Zielony Południk B3 Tri-City 26 OCT 19
Osiedle Beauforta B7 Tri-City 27 DEC 19
Spektrum building C Tri-City 75 DEC 19

19. 19
Appendix 2a:
Projects Under Construction and in Preparation: Warsaw
No. of units, as of 30/06/2019
NO. PROJECT
UNDER
CONSTRUCTION
IN
PREPARATION
1 ŻOLIBORZ ARTYSTYCZNY 760 494
2 LUDWIKI --- 419
3 APARTAMENTY OGRODOWA 160 ---
4 WŁODARZEWSKA 70/72 102 ---
5 MARINA MOKOTÓW 766 ---
6 WILLE TANECZNA 81 ---
7
APARTAMENTY DOLNY MOKOTÓW
(SOBIESKIEGO)
153 ---
TOTAL LEFT BANK 2 022 913
NO. PROJECT
UNDER
CONSTRUCTION
IN
PREPARATION
8 PALLADIUM (AKACJE) --- 566
9
PORT ŻERAŃ
(KOWALCZYKA)
482 ---
10
AMSTERDAM
(SAMARYTANKA)
202 ---
11 WILNO 359 1 023
12
STACJA GROCHÓW
(SIENNICKA)
148 409
TOTAL RIGHT BANK 1 191 1 998
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION
8
10
3
7
11
1
2
5
6
9
4
9
6
12

20. 20
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION
Appendix 2b:
Projects Under Construction and in Preparation: Tri-City
No. of units, as of 30/06/2019
1
2
3
7 5
8
6
9
10
11
NO. PROJECT
UNDER
CONSTRUCTION
IN
PREPARATION
1 IDEA 173 27
2 SPEKTRUM 232 ---
3 OSIEDLE BEAUFORTA 197 385
4 POWSTAŃCÓW WARSZAWSKICH --- 651
5 MEZZO 158 ---
6 ZIELONY POŁUDNIK 194 520
7 POLANKI APARTAMENTY 9 ---
8 LOCUS 109 162
9 OSIEDLE CIS 148 ---
10 OSIEDLE PRZY BŁONIACH 128 180
11 DAWNA POCZTA --- 106
12 ATRIUM --- 1 200
TOTAL TRI-CITY 1 348 3 231
4 12

21. 21
NO. PROJECT
UNDER
CONSTRUCTION
IN
PREPARATION
1 KSIĘŻE NOWE (RYBNICKA) 132 ---
2 IDYLLA (STABŁOWICKA) 227 ---
3 STUDIO ARTE 52 ---
4 KSIĘCIA WITOLDA 138 ---
5 PIĘKNA 21 200 ---
6 KURKOWA --- 118
7 BUFOROWA --- 553
8 GRABISZYŃSKA 62 ---
TOTAL WROCLAW 811 671
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION
1
2
5
3
4
6
7
8
Appendix 2b:
Projects Under Construction and in Preparation: Wroclaw
No. of units, as of 30/06/2019

22. 22
LOCATION
NO. OF
PROJECTS / PHASES
UNDER CONSTRUCTION
NO. OF UNITS
UNDER CONSTRUCTION
NO. OF UNITS
IN PREPARATION
TOTAL
(NO. OF UNITS)
Warsaw 18 3 213 2 911 6 124
TRI-CITY 32 1 348 3 231 4 579
WROCŁAW 6 811 671 1 482
TOTAL 56 5 372 6 813 12 185
Appendix 2d:
Projects Under Construction and in Preparation: Summary
No. of units, as of 30/06/2019

23. 23
For further information please contact:
Adam Jarzębowski
Investor Relations
tel. +48 22 351 68 49
e-mail: adam.jarzebowski@domd.pl
www.inwestor.domd.pl
Euro Styl S.A. results incorporation key:
• Sales volume – from Q2 2017
• New construction starts – whole 2017
• Deliveries and financial results – from 8 June 2017, i.e. the acquisition date
Dom Development S.A. endeavours to ensure that the information in the presentation is complete. up-to-date and accurate. However. we do not make any guarantees in this respect.
Dom Development S.A. connot accept responsibilty for the consequences of using such information. and in particular any loss caused by reliance thereon for the purpose of
investment decisions. The material contained in the presentation originates from reliable public sources and to the best knowledge of Dom Development S.A. may be considered
reliable.