PRESENTATION OF RESULTS FOR THE FIRST half OF 2013

2013-06-26

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PRESENTATION OF RESULTS

FOR THE FIRST half OF 2013

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Table of contents

The most important events in the first half of 2013

Factors that affect the the activity of the Company in the first half of 2013

Sale of flats in the first half of 2013

Chosen consolidated financial data for the first half of 2013

Chosen consolidated financial data for Q2 2013

Margin in gross from the sale vs gross profit from sale

Realization of the gross profit from sale in the first half of 2013

Administration costs vs employment

Premises in the offer to be recognized in the result in further quarters

Investments realized in the first half of 2013

Investments planned to launch

Strategy for next years

The most important marketing events in the first half of 2013

Marketing and sale policy in the first half of 2013

Designs planned to launch in 2013

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Obtained permissions for the use of the following investments:

Obtained construction permits for the first stage of the Investment: Bliska Wola - Warszawa, building permits for I stage of Bliska Wola Investment – Warszawa, Kasprzaka street - 156 premises.Postponent of payment terms of the bonds with a total value of PLN 200,7 mln:

The company has successfully carried out the issue of new bonds worth PLN 105.7 millions with maturing in January 2016. For the means from the issuance, JWCH purchased significant majority of the bonds issued in June 2010 in the total amount of PLN 130 millions for which the maturity would have taken place in June this year

Company also completed successfuly the negotiations with bondholders concerning the prolongation of bonds maturity date for bonds issued in April 2012 in the amount of PLN 95 mln dedicated to the cover of the part of price for the purchased plot at Kasprzata street in Warsaw. Thanks to this, the original maturity date falling in April 2015 has been extended to January 2016.

Total bonds redemption in the amount of 24.3 mln PLN.

Data on the investment

Światowida housing

development, Warszawa-Tarchomin

Zielona Dolina I, Warszawa-Białołęka

Number of premises:

166 apartments18 business

premises

589 apartments 7 business premises

Premises sold until: June 30, 2013:

160 apartments18 business

premises

222 apartments 5 business premises

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Getting a loan and opening the closed escrow account for SPV-Seahouse Sp. z o.o. realizing an investment of Redłowo Residence in Gdynia in accordance with the provisions of the new development law.

Ending of the I edition of „Struggle for home” program, realized on Villa Campina housing development and broadcasted in TVN, where J.W. Construction Holding S.A. was a Partner.

Ending of the first external contract of J.W.C. Sp. z o.o. – the construction of Oxygen apartment building ( 45 Wronia street).

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Thanks to the further reduction in interest rates, for the first time in history, PLN mortgage loans interest rates fell below 4%.

The revival on the mortgage loans market (increase in the number of credit agreements in the Q2 2013 by 6% in comparison to Q1 2013).

Announcement of the program: "Flats for youth" and "Fund of flats for rent".

Bigger interest in flats purchase for investment purposes.

Finished flats in Company offer in the segment of popular flats.Change of the investment realization strategy - high flexibility of the organizational structures in relation to the market needs (General Contracting system).

Large competition on the market of contracting companies - building costs decrease.

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Development law which makes it more difficult to among others fund new investments. Financial institutions are not prepared to co-finance designs in the light of new regulations.

Hold of development branch funding by some banks. Lack of government program to support demand for flats in 2013.

Ending the "Family's Own Place" program resulted in some purchasers return to the secondary market.

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Sales of flats in the first half of 2013

J.W. Construction Holding S.A., in Q2 2013 sold 205 premises.In spite of no government support for developers, the sale has increased in Q2 by 45,4 % in comparison to the analogous period in the previous year

* Data on sales include sales of "Oxygen” investment (34 premises in 2013 and 30 premises in 2012)

58 68 8059 42 40

347

47 66 76 71 67 67

394

January February March April May June TOTAL FOR THE FIRST 6 MONTHS*

2012 2013

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Chosen consolidated financial data for the first half of 2013

Increase of profit from sale in the first half of 2013 by 17% in comparison to analogous period in previous year.

Decrease of net profit in the first half of 2013 by 40% in comparison to analogous period in previous year.

Chosen financial dataFirst half of

2012First half of

2013Change half

to half

profit from sale PLN 155.4 mln PLN 181.3 mln +17%

Gross profit from sale PLN 43.6 mln PLN 38.7 mln - 11%

Gross margin on sale 28% 21% - 7 p.p.

Proft on operating activities PLN 40.2 mln PLN 24.3 mln - 39%

Net profit PLN 8.6 mln PLN 5.1 mln - 40%

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Chosen consolidated financial data for the second quarter of 2013

Decrease of profit from sale in the second quarter od 2013 by 12% in comparison to the analogous period in the previous year

Decrease of net profit in the second quarter of 2013 by 86% in comparison to analogous period in the previous year.

Chosen financial dataThe second quarter of

2012

The second quarter of

2013

Change quarter to

quarter

profit from sale PLN 108.9 mln PLN 95.5 mln -12%

Gross profit from sale PLN 30.7 mln PLN 20.6 mln -33%

Gross margin on sale 28% 22% -6p.p.

Proft from operating activities PLN 29.2 mln PLN 9.6 mln -67%

Net profit PLN 6.1 mln PLN 0.8 mln -86%

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Pre-tax sales profit vs Pre-tax sales marging

Margin in gross on sale within the long period of time is maintained at the level above 20%.

26,919,2 16,9

13

30,7

7,7

29

18 20,6

28,9%26,9%

19,1%

28,0%28,2%

13,8%

20,1%

21,0% 21,6%

0

5

10

15

20

25

30

35

0%

5%

10%

15%

20%

25%

30%

35%

2011, 2nd quarter

2011, 3rd quarter

2011, 4th quarter

2012, 1st quarter

2012, 2nd quarter

2012, 3rd quarter

2012, 4th quarter

2013, 1st quarter

2013, 2nd quarter

Pre-tax sales profit Pre-tax sales margin

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Realization of the gross profit from sale in the first half of 2013

Units recognized in the result of I half of 2012 vs. I half of 2013

The level of gross profit earned from sales for the first half of 2013 is PLN 38.7 mil. Percentage of developer designs recognized in profit from sales:

215

489

2012, first half-year 2013, first half-year

24%

36%12%

6%

7%

8% 2% 3% 1% 1%Zielona Dolina I (140 units)

Światowida (107 units)

Lewandów bud. 3-6 (52 units)

Górczewska Park (47 units)

Łódź Tymienieckiego II (39 units)

Lewandów II (35 units)

Villa Campina - bloki (35 units)

Lewandów I (17 units)

Bursztynowe Osiedle (12 units)

Others (5 units)

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Overheads vs employment

Including employment in hotels:

* 91 people

** 131 people

*** 144 people

Nu

mb

er o

f peop

le

416

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Premises (in pieces) in the offer to be recognized in the result of further quarters

1183

424

253

183

85

71

52

35

30

24

17

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TOTAL

ZIELONA DOLINA I

VILLA CAMPINA - BLOCKS

OAZA PIĄTKOWO

ŁÓDŹ TYMIENIECKIEGO II

LEWANDÓW II

REZYDENCJA REDŁOWO

ŚWIATOWIDA

LEWANDÓW I BLOCKS 3-6

LEWANDÓW I

OTHERS

GÓRCZEWSKA PARK

sold premises Not

transferred

230

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Investments realized in the first half of 2013

Commercial investments

Name of the designProgress of the design

Useable area (sq.

m.)

Realized - commercial

Hanza Tower - Szczecin"zero" condition

realized36 328

In the first half of 2013, a total of 1.304 premises with a total surface of 72.039 m2 and 36.328 m2 of useful surface on the commercial investment (at the "zero" level) were realized in residential investments

Residential investments

Name of the designNumber of premises

Useable area (sq.

m.)

Realized - residential

Redłowo Residence, Gdynia 52 3 259

Piątkowo Oasis, Poznań 183 9 423

„Oxygen” Investment Warszawa* 287 20 868

Villa Campina Ożarów houses 2 354

Permission to use validation

Zielona Dolina I, Warszawa 596 27 722

Światowida housing development, Warszawa

184 10 413

IN TOTAL 1 304 72 039

* The investment is realized within the frames of General Contracting by JWC Sp. z o.o. company.

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Investments in Warsaw and in the vicinity

Investment

Number of

premises

PUM

Warszawa, Kasprzaka street, stage II

94442,213

m2

Warszawa, Zielona Dolina II 86538,258

m2

Warszawa, Kasprzaka street, stage V

76533,270

m2

Warszawa, Kasprzaka street, stage III

48221,155

m2

Warszawa, Kasprzaka street, stage IV

55824,258

m2

Warszawa, Berensona street

26311,874

m2

Warszawa, Antoniewska street

23413,864

m2

Warszawa, Kasprzaka street, stage I(the construction has been already started)

1567,550

m2

Investments planned to launch according to the condition on the 30th of June 2013

During two years, on the basis of the land bank, the Copany is planning to launch the realization of more than 6.000 premises:

Red color was used to mark designs that are planned to be launched in 2013

InvestmentNumber

of premises

PUM

Warszawa, Aluzyjna II 68 4 080 m2

Warszawa, Odkryta II 82 4 158 m2

Warszawa, Aluzyjna street I 30 1,800 m2

Warszawa Osada Wiślana 21 1,024 m2

Zielona Dolina III 44 2,256 m2

Nowodworska - Houses 16 1,400 m2

Warszawa – Mikołaja Trąby 18 1,440 m2

Villa Campina (Ożarów – houses)

101,870

m2

In totalNumber of premises

4 556Useable area210 470 m2

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Investments beyond Warsaw

Investments planned to be launch

InvestmentNumber of premises

PUM

Katowice, Tysiąclecia street stage II 488 23,805 m2

Katowice, Tysiąclecia street, stage I 149 7,085 m2

Katowice, Bałtycka street 236 14,467 m2

Gdynia, Spokojna street, stage II 236 13,614 m2

Gdynia, Spokojna street, stage I 196 11,306 m2

Łódź, Tymienieckiego street III 108 5,072 m2

Gdynia, Sochaczewska street 51 3,600 m2

In total: 1 464 78,949 m2

Red color was used to mark designs that are planned to be launched in 2013

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Strategy for next years

Strategic goals

Intensification of works related to the preparation of detailed design

documentation and obtaining building permit

Strenghtening the leadership among developers, both in Warsaw and within

the whole country

Implementation of innovative sales solutions onto the

market

Activity concentration on the segment of residential investments

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The most important marketing events in the first half of 2013

Distinction of Hotel Czarny Potok Resort & SPA an emblem of Polish Exclusive 2013.

Introducing to the offer a new program of interiors decor: „Premium”, available in four versions: "White", "Black", "Cappucino" and "Orange".

Achieving sales and image effects thanks to the participation in the I edition of „Struggle for home” as a basis to continue the cooperation:

In August 2013, the second edition of „Struggle for home” was started with the participation of J.W. Construction Holding S.A. This time, within the frames of the program, pictures are realized in the Zielona Dolina investment.

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Marketing and sale policy in the first half of 2013

Focusing the marketing and adevertising strategic actions on the internet marketing field.Leading campaigns directed on the sale of premises that are fully ready to be occupied in Warszawa, Ożarów Mazowiecki and Łódź.Continuation of sponsoring action, directed to the promotion of Company investment and strenghtening its image – concluding agreement concerning the realization of TVN’s program – „Struggle for home” in Zielona Dolina investment.

• Preparation to lead the Oxygen Residence program for Oxygen investment. Oxygen Residence service makes it possible to use the complex program of rent management. This is a proposal for investors and the added value for apartment building occupants - possibility to use premium services, as for example concierge.

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DesignWarszawa,

Berensona street

LocationWarszawa,

Berensona street

Number of flats 263

Useable area (in sq. m.) 11 874

Design net value (in mln of PLN)

66

Characteristics

the design covers 12 facilities low, prestige developmentLocalization on Białołęka – the most resiliently developing district in WarsawSafe playground within the area of housing developmentProximity of agglomeration conveniences: schools, kindergartens, shopping centresQuick commute to the city centre

Designs to launch in 2013:Warszawa, Berensona street

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DesignŁódź,

Tymienieckiego street

LocationŁódź,

Tymienieckiego street

Number of flats 108

Useable area(in sq. m.) 5 072


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Characteristics

the design covers 3 facilities with max. 7 storeysprestige location in the historic area of Łódźwide scope of metric areas and room arrangementsEnclosed and supervised areaSafe playgrounds

Designs to launch in 2013:Łódź, Tymienieckiego street

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DesignGdynia, Spokojna

street

LocationGdynia, Spokojna

street

Number of flats I stage 196

Useable area (in sq. m.) I stage 11,306


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Characteristics

attractive location - vicinity of Leśna and Spacerowa streetslow, cosy developmentWide scope of metric areas and rooms arrangementDesign of room arrangement allows for any arrangement of interiorProximity of beach and Trójmiejski Park Krajobrazowy

Designs to launch in 2013:Gdynia, Spokojna street, stage I

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Design Bliska Wola

Location Warszawa, Wola

Number of premises156 in I stage, 944 in II

stage(in prospect, the investment will

cover approximately 3000 premises)

Useable area (in sq. m.)I stage: 7 550, II stage 42 213

Service – trading – offices (in m2)

as a target - more than 70 000

Design net value(in mln of PLN)

approximately 53 for I stage,

approximately 298 for II stage

Characteristics

great location - only 3 km from the strict center of the cityvery well developed communication infrastructure – subway station since 2014Recreational area within the premises of housing developmentInteresting and modern buildings architectureCompetitive flats prices

Designs to launch in 2013: Bliska Wola, Stage I and II

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Design Nowe Tysiąclecie

Location Katowice

Number of flats I stage 149

Useable area (in sq. m.)

I stage 7,085


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Characteristics

as a target the design should cover five 17-storey residential and office facilitiesModern architecture – numerous glazingsAttractive location allows for convenient and quich communication with city centreTerrain development includes numerous shrubs and treesWide scope of metric area selectionVicinity of green terrains including Park Śląski (the biggest city park in Europe)

Designs to launch in 2013: Nowe Tysiąclecie, Etap I

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Thank you for your attention

INVESTOR RELATIONS:

Małgorzata Szwarc-SrokaEconomy Division and Investor Relations Office Head

J.W. Construction Holding S.A.

Member of the Management Board of J.W. Construction Sp. z o.o.phone: 22 771 77 85

e-mail.: [email protected]

PRESENTATION OF RESULTS FOR THE FIRST half OF 2013

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