Q1 2019 financial and opartating results of Dom Development S.A. Capital Group - leading polish house builde

1. Dom Development S.A.
ConsolidatedGroup
Q1 2019 Results Presentation
7 May 2019

2. • Deliveries and net profit at record high levels Q1;
• Strong sales: 926 units, + 9.2% YoY, with high margins;
• Start of 11 projects with 1,036 units;
• Dom Construction starts next Warsaw project - Apartamenty Ogrodowa;
• 1 200 plot Atrium project site purchase further enriches our Tri-City land bank;
Q1 2019 Highlights
2

3. 3
Q1 2019 Financial Results Summary
Revenues:
PLN 528m +160% YoY
Gross Margin on Sales:
27.4% < 2.5 p.p. YoY
Net Income:
PLN 84m +381% YoY
On-time completion of all projects and strong sales resulted in record deliveries
Record-high quaterly revenues, with deliveries mix weighted towards popular segment.
Satisfactory margins confirm efficiency of the Group and our position on the market.
Record-high Q1 net income.
Very low gearing despite a significant increase in the land bank.Gearing as of 31.03.2019:
8%
Deliveries:
1,215 units +191% YoY

4. 4
• Selling price rises continued, although at a lower pace than in previous months;
• Strong demand for new flats was supported by record low interest rates, low unemployment and increasing salaries;
• Supply remained restricted mainly due to high land prices and the complicated legal situation around land;
• A reduction in construction starts was observed, leading to increased availability of construction services and
improved costs;
• Cash buyers accounted for over 40% of sales at Dom Development;
Market in Q1 2019

5. 5
Quarterly net sales
No. of units
Net sales in units
Q1
2019
Q1
2018
Change
Warsaw 608 566 7.4%
Tri-City 227 205 10.7%
Wroclaw 91 77 18.2%
Dom Development
Group
926 848 9.2 %
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Warsaw Tri-City Wroclaw
848
802
946
1006
926
1049
1039
1081
806
Group sales by location

6. Q1 2019 Sales Segmentation
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).
15% 49%
45%
17% 15%
40%
27%
14%
12%
41%
22%
4%
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.
over PLN 550k
PLN 450-550k
PLN 350-450k
up to PLN 350k
27%
19%
22%
33%
0
100
200
300
400
500
600
700
800
900
1 000
Dom Development Group

7. Offer (units available for sale)
7
Group offer by location
No. of units
31.03.
2019
31.03.
2018
Change
Warsaw 1 929 2 120 (9)%
Tri-City 357 460 (22)%
Wroclaw 358 159 125%
Dom Development
Group
2 644 2 739 (3)%
2 416 2 570
2 868
2 330 2 254
323
231
252
566
390
2 739 2 801
3 120
2 896
2 644
31/03/2018 30/06/2018 30/09/2018 31/12/2018 31/03/2019
Units under construction Finished units
No. of units

8. New construction starts
Project starts in Q1 2019:
Warsaw:
Żoliborz Artystyczny phase 11 (381)
Żoliborz Artystyczny phase 12 (106)
Apartamenty Ogrodowa (160)
Wilno VI phase 3/1 (197)
Tri-City:
IDEA B10 (50)
LOCUS B2 (50)
Apartamenty Polanki (9)
Zielony Południk B1 (24)
Zielony Południk B4 (21)
Osiedle Beauforta B2 (19)
Osiedle Beauforta B3 (19)
8
12projects
4projects
7projects
11projects
7projects
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Warsaw Tri-City Wroclaw
281
926
1 036
1 079
1 312No. of units

9. Units under construction
9
Units under construction
31.03.2019
In-house general contractor
External general contractors
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Warsaw Tri-City Wroclaw
5 791
5 074
6 409
4 413
5 447
No. of units

10. Land Bank – owned and controlled*
10
*Land controlled without building conditions
Land bank
No. Of units Owned Controlled Total Owned Controlled Total
Warsaw 3 165 2 900 6 065 5 415 2 000 7 415 (18)%
Tri-City 3 586 1 660 5 246 1 927 0 1 927 172%
Wroclaw 1 015 250 1 265 562 850 1 412 (10)%
Dom Development
Group
7 766 4 810 12 576 7 904 2 850 10 754 17%
31.03.2019 31.03.2018
Change Total
YoY

11. Deliveries
11
No. Of units
Q1
2019
Q1 2018 Change
Warsaw 1 112 384 190%
Tri-City 98 32 206%
Wroclaw 5 0 500%
Dom Development
Group
1 215 416 191%
Deliveries breakdown by location
416
1025
587
1 604
1 215
1472
No. of units
230
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Warsaw Tri-City Wroclaw
674
553

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
2013 2014 2015 2016 2017 2018 2019
PLN m
Units sold but not delivered (presales) Value
31.03.2018 3 645 units, PLN 1 544m
31.03.2019 2 894 units, including: PLN 1 417m
• 275 finished units;
• 2 619 units under construction,
with 1 535 finishing in 2019

13. Financial Results: Profit and Loss
13
IIAS 18, PLN m
Profit and Loss Account Q1 2019 Q1 2018 Change
Sales Revenues 528.2 203.5 160%
Handovers (units) 1215 416 191%
Revenue per unit (PLN’000) 435 489 (11)%
Gross Profit on Sales 145.0 60.8 139%
Gross Profit Margin 27.4% 29.9% (2.5) pp
Operating Profit 105.3 22.5 367%
Operating Profit Margin 19.9% 11.1% 8.8 pp
Profit Before Tax 104.7 22.4 368%
Profit Before Tax Margin 19.8% 11.0% 8.8 pp
Net Profit 84.3 17.5 381%
Net Profit Margin 16.0% 8.6% 7.4 pp
EPS (PLN) 3.37 0.70 381%

14. 14
Financial Results: Balance Sheet
Consolidated Balance Sheet 31.03.2019 31.03.2018 Change
Shareholders’ funds (equity) 1,134.5 1,023.8 11%
Net debt/(net cash)* 94.0 (16.8) -
Gearing (net debt/equity) 8.3% (1.6)% 9.9 pp
Net asset value per share (PLN) 45.26 41.00 10.4%
Shares in issue (m) 25.1 25.0 0.4%
ROE (12M) 28.7 22.5% 6.2 pp
ROCE (12M) 23.1 19.6% 3.5 pp
IAS 18, PLN m
*Bank debt plus bonds in issue less cash at banks (including escrow accounts)

15. 15
Debt Maturity Structure
Cash (including escrow accounts) as of 31/03/2019 PLN 351 m
Bond debt as of 31/03/2019 PLN 310 m
Available credit lines as of 31/03/2019 PLN 200 m
100 110
50 50
135
0
20
40
60
80
100
120
140
160
180
200
by 31.03.2020 by 31.03.2021 by 31.03.2022 by 31.03.2023 by 31.03.2024
Bonds Bank loans
PLN m

16. 16
Q1 2019 Summary
❑ Very strong position on all three markets;
❑ 926 units sold with high margins, + 9,2% YoY;
❑ 2,644 units available for sale;
❑ 5,074 units on 46 projects under construction;
❑ Construction of 1,036 units started across 11 projects ;
❑ Land bank (owned and controlled) over 12 576 units in total;
❑ Q1 2019 consolidated net profit: PLN 84 m
❑ Gearing as of 31.03.2019: 8%;

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
Q2
Q4
Zielony Południk B2 Tri-City 26 OCT 19
Osiedle Beauforta B1 Tri-City 26 APR 19 Zielony Południk B3 Tri-City 26 OCT 19
Księże Nowe Wroclaw 132 OCT 19
Idea B6 Tri-City 42 JUN 19 Amsterdam phase 3 Warsaw 202 NOV 19
Port Żerań phase 2 Warsaw 330 NOV 19
Q3
Osiedle Beauforta B4 Tri-City 21 NOV 19
Osiedle Beauforta B5 Tri-City 36 NOV 19
Regaty phase 2 Warsaw 200 JUL 19 Idea B8 Tri-City 38 NOV 19
Forma phase 2/2 Warsaw 213 JUL 19 Zielony Południk B1 Tri-City 24 DEC 19
Idea B7 Tri-City 27 AUG 19 Żoliborz Artystyczny phase 10 Warsaw 273 DEC 19
Cybernetyki 17 phase 3 Warsaw 240 SEP 19 Apartamenty Dolny Mokotów Warsaw 153 DEC 19
Studio Arte Wroclaw 52 SEP 19 Osiedle Beauforta B6 Tri-City 27 DEC 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 31/03/2019
NO. PROJECT
UNDER
CONSTRUC
TION
IN
PREPARATION
1 ŻOLIBORZ ARTYSTYCZNY 760 494
2 LUDWIKI --- 419
3 APARTAMENTY OGRODOWA 160 ---
4 WŁODARZEWSKA 70/72 --- 102
5 MARINA MOKOTÓW 766 ---
6 CYBERNETYKI 17 240 ---
7 WILLE TANECZNA 81 ---
8
APARTAMENTY DOLNY MOKOTÓW
(SOBIESKIEGO)
153 ---
TOTAL LEFT BANK 2 160 1 015
NO
.
PROJECT
UNDER
CONSTRUC
TION
IN
PREPARATION
9 REGATY 200 ---
10 PALLADIUM (AKACJE) --- 566
11 PORT ŻERAŃ (KOWALCZYKA) 330 152
12 AMSTERDAM (SAMARYTANKA) 202 ---
13 WILNO 359 1 023
14 STACJA GROCHÓW (SIENNICKA) 148 409
15 FORMA (MOTOROWA) 213 ---
TOTAL RIGHT BANK 1 452 2 150
10
12
3
8
13
1
2
5
6
9
4
11
15
7
14
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION

20. 20
Appendix 2b:
Projects Under Construction and in Preparation: Tri-City
No.of units, as of 31/03/2019
1
2
3
7 5
8
6
9
10
11
NO. PROJECT
UNDER
CONSTRUCTION
IN
PREPARATION
1 IDEA 215 37
2 SPEKTRUM 232 ---
3 OSIEDLE BEAUFORTA 175 433
4 POWSTAŃCÓW WARSZAWSKICH --- 584
5 MEZZO 158 ---
6 ZIELONY POŁUDNIK 97 617
7 POLANKI APARTAMENTY 9 ---
8 LOCUS 109 162
9 OSIEDLE CIS --- 148
10 OSIEDLE PRZY BŁONIACH --- 308
11 DAWNA POCZTA --- 97
12 ATRIUM (NEW) 1 200
TOTAL TRI-CTY 995 3 586
4 12
PROJECT IN PREPARATION
PROJECT UNDER CONSTRUCTION

21. 21
NO. PROJECT
UNDER
CONSTRUC
TION
IN
PREPARATION
1 KSIĘŻE NOWE (RYBNICKA) 132 ---
2 IDYLLA (STABŁOWICKA) 83 144
3 STUDIO ARTE 52 ---
4 KSIĘCIA WITOLDA --- 138
5 PIĘKNA 21 200 ----
6 KURKOWA --- 118
7 BUFOROWA --- 553
8 GRABISZYŃSKA --- 62
TOTAL
WROCLAW
467 1 015
1
2
5
3
4 6
Appendix 2c:
Projects Under Construction and in Preparation: Wroclaw
No.of units, as of 31/03/2019
7
8
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 19 3612 3 165 6 777
TRI-CITY 23 995 3 586 4 581
WROCLAW 4 467 1 015 1 482
TOTAL 46 5 074 7 766 12 840
Appendix 2d:
Projects Under Construction and in Preparation: Summary
No.of units, as of 31/03/2019

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.