Dom Development S.A. H1 2018 financial and operational results presentation

1. Dom Development S.A.
Consolidated Group
H1 2018 Results Presentation
24 August 2018

2. Highlights
Q2 2018
• Quarterly sales: 802 units, as planned - satisfactory margins
• Start of construction of 12 projects with 1,312 units, including
Marina Mokotów (329 units)
• Dom Construction appointed general contractor for further phases of
Żoliborz Artystyczny
• Excellent land purchases in the Tri-City and Wroclaw
2

3. Q2 2018 Financial Results – summary
• Handovers: 1 025 units (+52% YoY)
• Revenues: PLN 435.7m (+35% YoY)
• Gross Margin: 27.1% (-0.9 pp YoY)
• Net Profit: PLN 58.8m (+20 % YoY)
• Net cash as of 30.06.2018: PLN 184.4m
3

4. Market in Q2 2018
• An excess of demand over supply led to significant price increases
• Favorable macroeconomic factors supported demand, including low interest
rates, low unemployment, strong GDP and wage growth
• Very strong competition on land market. High prices on the land market combined
with administrative obstacles are limiting the housing supply.
• The liquidity and labour shortages affecting the construction industry are
improving only slowly
• Construction cost are beginning to stabilise
• High share of cash buyers – over 35% of overall transactions at Dom
Development
4

5. 5
Quarterly net sales
640 678
615
701 705 714
806
1 039 1 081 1 049
848
802
0
200
400
600
800
1 000
Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
No. of units

6. H1 2018 Sales Segmentation – Markets Breakdown
17%
21% 71%
31%
23% 21%
23%
28%
7%
29%
29%
2%
0
200
400
600
800
1 000
1 200
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
22%
28%
23%
27%
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Dom Development S.A.
Capital Group
* Transaction value includes price of a flat with fit-out (if purchased), storage room (if purchased) and parking place (if purchased).
No. of units No. of units
6

7. 2 214 2 104 2 278
3 254
2 791 2 677
2 416 2 570
451
402
272
221
270 302
323
231
2 665
2 506 2 550
3 475
3 061 2 979
2 739 2 801
-
500
1 000
1 500
2 000
2 500
3 000
3 500
30/09/2016 31/12/2016 31/03/2017 30/06/2017 30/09/2017 31/12/2017 31/03/2018 30/06/2018
Units under construction Finished units
7
Offer (units available for sale)
No. of units

8. 8
New Construction Starts
557
555
575
1 654
1 002
512
1 079
1 312*
0
200
400
600
800
1 000
1 200
1 400
1 600
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
12 projects4 projects4 projects 12 projects5 projects 6 projects 6 projects 7 projects
*Including 730 units introduced to offer in July 2018
No. of units

9. 9
Units Under Construction
3 886
3 543
3 854
5 945
6 241
5 221 5 447
6 409
0
1 000
2 000
3 000
4 000
5 000
6 000
30/09/2016 31/12/2016 31/03/2017 30/06/2017 30/09/2017 31/12/2017 31/03/2018 30/06/2018
No. of units

10. 10
Land Bank
7 016
6 450 6 688
8 306 8 207 8 447
7 904
7 078
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
30/09/2016 31/12/2016 31/03/2017 30/06/2017 30/09/2017 31/12/2017 31/03/2018 30/06/2018
No. of units

11. 11
Handovers
Units sold but not delivered (presales)
31.03.2018 30.06.2018
3 645
units
3 422
units, including:
• 262 finished units
• 3 160 units under construction, out of which
2 119 will be finished in 2018
500
1 162
230
674
553
1 472
416
1 025
0
200
400
600
800
1000
1200
1400
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
No. of units

12. 12
Cumulative Net Sales to be Recognized in P&L
0
200
400
600
800
1 000
1 200
1 400
1 600
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J
2013 2014 2015 2016 2017 2018
PLN m

13. 13
Financial Results: Profit and Loss
Profit and Loss Account Q2 2018 Q2 2017 Change H1 2018 H1 2017 Change
Sales Revenues 435.7 322.5 35% 639.2 435.5 47%
Handovers (units) 1,025 674 52% 1,441 904 59%
Revenue per unit (PLN’000) 425.1 478.5 (11)% 443.6 481.8 (8)%
Gross Profit on Sales 118.1 90.3 31% 178.9 116.4 54%
Gross Profit Margin 27.1% 28.0% (0.9) pp 28.0% 26.7% 1,3 p.p.
Operating Profit 72.8 58.3 25% 95.4 57.3 66%
Operating Profit Margin 16.7% 18.1% (1.4) pp 14.9% 13.2% 1,8 p.p.
Profit Before Tax 72.8 59.0 23% 95.2 58.0 64%
Profit Before Tax Margin 16.7% 18.3% (1.6) pp 14.9% 13.3% 1,6 p.p.
Net Profit 58.8 49.0 20% 76.3 48.0 59%
Net Profit Margin 13.5% 15.2% (1.7) pp 11.9% 11.0% 0,9p.p.
EPS (PLN) 2.36 1.97 20% 3.06 1.93 59%
IAS 18, PLN m

14. 14
Financial Results: Balance Sheet
Consolidated Balance Sheet 30.06.2018 30.06.2017 Change
Shareholders’ funds (equity) 894.3 855.1 5%
Net debt/(net cash)* (184.4) (105.3) 75%
Gearing (net debt/equity) (20.6)% (12.3)% (8.3) pp
Net asset value per share (PLN) 35.82 34.39 4%
Shares in issue (m) 25.0 24.9 <1%
ROE (12M) 25.6% 18.2% 7.4 pp
ROCE (12M) 25.7% 17.9% 7.8 pp
IAS 18, PLN m*Bank debt plus bonds in issue less cash at banks (including escrow accounts)

15. 15
Debt Maturity Structure
0
100
110
50
35
0
20
40
60
80
100
120
by 30.06.2019 by 30.06.2020 by 30.06.2021 by 30.06.2022 by 30.06.2023
Bonds Bank Loans
PLN m
Cash (including escrow accounts) as of 30/06/2018 PLN 479m
Bond debt as of 30/06/2018 PLN 260m
Available credit lines as of 30/06/2018 PLN 200m

16. 16
Summary: First half of 2018
 Very strong demand on Warsaw, Wroclaw and Tri-City markets
 New land plots for over 800 units in the Tri-City and over 300 units in Wroclaw
 Dom Construction (group subsidiary) successfully starts operations in Warsaw
 1,650 units sold (-11% YoY) – with improving margins
 2,801 units available for sale
 6,409 units under construction on 50 projects - an all time record
 Commencement of 19 projects with 2,391 units
 H1 2018 net profit: PLN 76.3m, up 59% YoY
 Gearing as of 30 June 2018: -21%; PLN 184m net cash

17. 17

18. 18
Project Location
No.
of units
Commence-
ment of
handovers
Project Location
No.
of units
Commence-
ment of
handovers
Q3
Spektrum building B Tri-City 169 Jul'18
Q4
Wilno VI phase 1 Warsaw 309 Oct'18
Kwartet - Macierzy Szkolnej Tri-City 27 Aug'18 Futura Park building 7 Tri-City 8 Oct'18
Impuls building C Tri-City 55 Aug'18 Premium phase 5 Warsaw 113 Nov'18
Nowy Horyzont building 12 Tri-City 38 Sep'18 Apartamenty Mokotów nad Skarpą 2 Warsaw 190 Nov'18
Forma phase 1 Warsaw 95 Sep'18 Cybernetyki 17 phase 1 Warsaw 146 Nov'18
Viridis building A2 Tri-City 42 Sep'18 Moderna phase 3 Warsaw 187 Nov'18
Wille Lazurowa phase 2 Warsaw 102 Nov'18
Spektrum building A Tri-City 169 Nov'18
Idea building 5 Tri-City 62 Nov'18
Nowy Horyzont building 11 Tri-City 38 Nov'18
Apartamenty Park Szczęśliwicki Warsaw 46 Dec'18
Dom na Bartyckiej Warsaw 131 Dec'18
Forma phase 2 Warsaw 199 Dec'18
Amsterdam phase 2 Warsaw 314 Dec'18
Cybernetyki 17 phase 2 Warsaw 247 Dec'18
Port Żerań phase 1 Warsaw 362 Dec'18
Premium phase 4 Warsaw 248 Dec'18
Scena Apartamenty Tri-City 61 Dec'18
Osiedle Viridis building A1 Tri-City 32 Dec'18
Appendix 1:
Commencement of handovers in 2018
Commencement of handovers: on schedule/earlier/delayed

19. 19
No. PROJECT
UNDER
CONSTRU-
CTION
IN
PREPARATION
1 ŻOLIBORZ ARTYSTYCZNY II 273 1 010
2 PREMIUM 361 ---
3 WILLE LAZUROWA 102 ---
4 OGRODOWA --- 160
5 WŁODARZEWSKA 70/72 --- 102
6
APARTAMENTY PARK
SZCZĘŚLIWICKI (PRZY PARKU)
46 ---
7 MARINA MOKOTÓW 319 444
8
APARTAMENTY MOKOTÓW
NAD SKARPĄ
190 ---
9 CYBERNETYKI 17 633 ---
10 WILLE TANECZNA --- 81
11
APARTAMENTY DOLNY
MOKOTÓW (SOBIESKIEGO)
153 ---
12 DOM NA BARTYCKIEJ 131 ---
TOTAL
LEFT BANK
2 208 1 797
No. PROJECT
UNDER
CONSTRU-
CTION
IN
PREPARATION
13 REGATY 272 ---
14 PALLADIUM (AKACJE) --- 566
15
PORT ŻERAŃ
(KOWALCZYKA)
692 152
16 MODERNA 187 ---
17
AMSTERDAM
(SAMARYTANKA)
516 ---
18 WILNO 520 1 369
19 FORMA (MOTOROWA) 412 ---
20
STACJA GROCHÓW
(SIENNICKA)
--- 557
TOTAL
RIGHT BANK
2 599 2 644
Warsaw
14
16
17
194
9
18
12
2
1
3
6
7
8
11
13
5
10
15
20
Appendix 2a:
Projects Under Construction and in Preparation: Warsaw
no. of units, as of 30/06/2018
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION

20. 20
1
2
4
57
6
3
11 8
No. PROJECT
UNDER
CONSTRUCTION
IN
PREPARATION
1 OSIEDLE VIRIDIS 74 ---
2 IDEA 169 145
3 NOWY HORYZONT 76 ---
4 SPEKTRUM 570 ---
5 IMPULS 2 55 ---
6 OSIEDLE BEAUFORTA 137 471
7 SCENA APARTAMENTY 61 ---
8 MEZZO 158 ---
9 FUTURA PARK 8 ---
10 ZIELONY POŁUDNIK --- 593
11 KWARTET POLANKI 27 9
12
LOCUS
(RUMIA STOCZNIOWCÓW)
--- 250
13 GDYNIA MORSKA --- 158
14 RUMIA DĘBOGÓRSKA (NEW) --- 308
15 GDAŃSK MICKIEWICZA (NEW) --- 105
TOTAL 1 335 2 039
12
910
13
14
15
Appendix 2b:
Projects Under Construction and in Preparation: Tri-City
no. of units, as of 30/06/2018
Tri-City
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION

21. 21
No. PROJECT
UNDER
CONSTRUCTION
IN
PREPARATION
1
KSIĘŻE NOWE
(RYBNICKA)
132 ---
2 IDYLLA (STABŁOWICKA) 83 144
3 STUDIO ARTE 52 ---
4 KSIĘCIA WITOLDA --- 138
5 PIĘKNA --- 201
6 KURKOWA (NEW) --- 115
TOTAL
WROCLAW
267 598
Wroclaw
1
2
5
3
4
6
Appendix 2c:
Projects Under Construction and in Preparation: Wroclaw
no. of units, as of 30/06/2018
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION

22. 22
LOCATION
NO. OF
PROJECTS / PHASES
UNDER CONSTRUCTION
NO. OF UNITS
UNDER CONSTRUCTION
NO. OF UNITS
IN PREPARATION
TOTAL
(NO. OF UNITS)
WARSAW 24 4 807 4 441 9 248
WROCLAW 3 267 598 865
TRI-CITY 23 1 335 2 039 3 374
TOTAL 50 6 409 7 078 13 487
Appendix 2d:
Projects Under Construction and in Preparation
Summary

23. 23
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.
For further information please contact:
Magdalena Cumanis
Investor Relations
tel. +48 22 351 68 49
e-mail: magdalena.cumanis@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