PRESENTATION J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q3 2009 PRESENTATION J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q3 2009

PRESENTATION J.W.CONSTRUCTION HOLDING S.A.

PERFORMANCE IN Q3 2009

PRESENTATION J.W.CONSTRUCTION HOLDING S.A.

PERFORMANCE IN Q3 2009

PRESENTATION AGENDAPRESENTATION AGENDA

2

CHANGE IN ACCOUNTING POLICY 3

CHANGES IN ACCOUNTING POLICY – OUTCOMES 4

PERFORMANCE IN Q3 2009 5

CUMULATIVE RESULTS FOR THE 3RD QUARTER 2009 7

Q3 2009 GROSS SALES PROFIT 9

IMPLEMENTED PROJECTS IN Q3 2009 10

ENDED INVESTMENTS IN Q3 2009 11

STRATEGY OF J.W. CONSTRUCTION HOLDING S.A. 12

STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUP 13

STRATEGY - PROJECTS IN THE PIPELINE 15

STRATEGY - APARTMENTS READY TO MOVE IN 21

INDUSTRY DEVELOPMENT PROSPECTS IN THE COMPANY’S VIEW 22

THE COMPANY’S SALES POLICY IN 2009 23Presentation – PERFORMANCE Q3 2009

3

CHANGE IN ACCOUNTING POLICYCHANGE IN ACCOUNTING POLICY

By the end of 2008, the Group recognized revenues and expenses using the

“zero-profit-margin method” (IAS 11), after:

- actual revenues exceeded 50% for a given project, and

- actual expenses of the project exceed 40%.

In accordance with the new regulations, in force from 2009, the Group applies

IAS 18 to recognize revenues and expenses:

- revenues are included in the profit and loss account after an apartment is

transferred to its buyer under a notarial deed, with alternate options that include

revenue recognition after a building permit is received, the purchased apartment

is paid for in full and the apartment is officially accepted by the buyer.

Presentation – PERFORMANCE Q3 2009

4

CHANGES IN ACCOUNTING POLICY – OUTCOMES

Changes in accounting policy – outcomes:

For particular projects, revenue and expense recognition (and thus gross

profit recognition) will be shifted in time

Operating result – depends on the phase of the project – will be recognized

after a given project is completed, i.e. after 18 – 24 months


175,2

159,9

120,0

140,0

160,0

180,0

Q3 2008 Q3 2009

Sales revenue, PLN million:

26,2 25,9

21,0

22,0

23,0

24,0

25,0

26,0

27,0

Q3 2008 Q3 2009

Gross margin, %

5

Slight decrease in revenues from sales in the 3rd quarter 2009, by 8.73% compared to the same period of the previous year.

Decrease in margin in the 3rd quarter 2009, by 0.94% compared to the same period of the previous year.

PERFORMANCE IN Q3 2009PERFORMANCE IN Q3 2009

2008 data – restated to IAS 18


31,631,7

31

31,2

31,4

31,6

31,8

32

Q3 2008 Q3 2009

Operating profit, PLN million:

19,5

20,0

19,0

19,5

20,0

20,5

21,0

Q3 2008 Q3 2009

Net profit, PLN million:

6

Operating profit rose by 0,18% in the 3rd quarter 2009 year compared to the corresponding period in the previous year

In addition, net profit in the 3rd quarter 2009 posted a 2.47% increase as compared with Q3 2008

PERFORMANCE IN Q3 2009PERFORMANCE IN Q3 2009



511,6491,0

300,0

350,0

400,0

450,0

500,0

550,0

Q3 2008 Q3 2009

Sales revenue, PLN million:

24,5

26,6

21,0

22,0

23,0

24,0

25,0

26,0

27,0

Q3 2008 Q3 2009

Gross margin, %

CUMULATIVE RESULTS FOR THE 3RD QUARTER 2009

7

Slight decrease in revenues from sales for the 3rd quarter 2009, by 4% compared to the same period of the previous year.

Increase in margin for the 3rd quarter 2009, by 8,42% compared to the same period of the previous year.



81,8

100,7

0,0

20,0

40,0

60,0

80,0

100,0

120,0

Q3 2008 Q3 2009

Operating profit, PLN million:

54,5

69,3

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

Q3 2008 Q3 2009

Net profit, PLN million:

8

Increase in operating profit in cumulative results for the 3rd quarter 2009, by 23.19% compared to the same period of the previous year.

Increase in net profit in cumulative results for the 3rd quarter 2009, by 27.18% compared to the same period of the previous year. 2008 data – restated to IAS 18


CUMULATIVE RESULTS FOR THE 3RD QUARTER 2009

9

GROSS SALES PROFITGROSS SALES PROFIT FOR THE 3RD QUARTER 2009FOR THE 3RD QUARTER 2009

Gross profit from sales after 3 quarters of 2009 equals PLN 130.7 million.The following projects contributed the main to this figure:

Osiedle Lazurowa, Warszawa - 37 %

Rezydencja na Skarpie, Warszawa - 14 %

Osiedle Leśne, Gdynia - 12 %

Osiedle Górczewska Park, Warszawa - 8 %

Osiedle Górczewska I, Warszawa – 8%

Osada Wiślana, Warszawa – 7%

Willa Konstancin, Konstancin - 6 %

Osiedle Centrum, Łódź - 4 %


10

IMPLEMENTED PROJECTS IMPLEMENTED PROJECTS IN Q3 2009IN Q3 2009

In Q3 2009, near 3000 units were being constructed of a total surface of more than 138,000 sq.m. (commercial and residential space)

PROJECT CITY / DISTRICTMARKET SEGMENT NO. OF

APARTMENTS / HOUSES

ESTIMATED USABLE APARTMENT FLOOR

SPACE, SQ. M

„Pyry II” Ludwinowska Awenue Warsaw / Ursynów Apartments 24 1 632

„Osiedle Lewandów I” Lewandów Street Warsaw / Białołęka Standard apartments 631 26 827

„Osiedle Lewandów II” Lewandów

StreetWarsaw / Białołęka Standard apartments 1 274 54 364

„Osiedle Bursztynowe” Korkowa Street Warsaw / Wawer Standard apartments 328 17 594

„Wiślana Aleja” Odkryta Street Warsaw / Białołęka Standard apartments 200 9 770

„Lazurowe Ustronie” I stage Ożarów Mazowiecki Standard apartments 376 17 902

„Osiedle Victoria Park”, Russia Kołomna / Russia Standard apartments 158 11 545


11

ENDED INVESTMENTS IN THE PERIOD ENDED INVESTMENTS IN THE PERIOD I - IX 2009I - IX 2009

During 9 months of 2009 the construction of over 2,200 premises was completed under the following investment projects:


APARTMENTS / HOUSES

ENDED

„Osiedle Lazurowa” Lazurowa Street Warsaw / Bemowo Standard apartments 669 I half 2009

„Górczewska Park” Górczewska Street Warsaw / Wola Luxury Apartments 890 I half 2009

„Rezydencja Quatro” Łukowska Street Warsaw / Praga Południe Luxury Apartments 243 I half 2009

„Osada Wiślana” Marcina z

Wrocimowic Street I, II stageWarsaw / Białołęka Standard apartments 276 I half 2009

„Osada Wiślana” Marcina z

Wrocimowic Street III stageWarsaw / Białołęka Standard apartments 128 Q3 2009

Ludwinowska Awenue II Warsaw / Mokotów Apartments 24 Q3 2009


STRATEGY OF STRATEGY OF J.W. CONSTRUCTION HOLDING S.A.J.W. CONSTRUCTION HOLDING S.A.

..

Expanding non-developer operations of affiliated companies – general construction, designing, construction prefab manufacturing

Enhancing the product range by office and commercial space Continuing started housing projects – none of the projects in progress has been stopped

Providing a differentiated commercial offer – including apartments ready to take

Intensified works connected with preparing new investment projects for launch in the first months of 2010 (project documentation and building permits).

12 Presentation – PERFORMANCE Q3 2009

Regardless of circumstances, the Company diversifies the Group’s risks by:

13

STRATEGY - STRATEGY - DIVERSIFYING OPERATIONAL RISK OF THE GROUPDIVERSIFYING OPERATIONAL RISK OF THE GROUP

Development of Affiliated Companies – Strength and Capabilities

J.W. Construction S.A. – focus: construction and assembly work

Strengths:

It may implement projects for unaffiliated clients (general construction, electrical engineering, water & sewage, and road construction work)

Experienced engineering and technical staff, own resources for project implementation

Substantial construction and transportation equipment resources


JW Projekt Sp. z o.o. - działalność z zakresu architektury i projektowania.

It may implement projects for unaffiliated clients

Experienced engineering and technical staff, own resources for project implementation

Designing works referring to new housing and office projects (for

instance, in Warsaw at ul. Antoniewska, Światowida, Zdziarska,

Badylarska, Pileckiego, Lewandów, Berensona as well as in Ożarów

Mazowiecki, Łódź, Katowice and Szczecin).

14




15


APARTMENTS / HOUSES

ESTIMATED USABLE APARTMENT FLOOR

SPACE, SQ. M

Ożarów Mazowiecki – houses I stage Ożarów Mazowiecki Houses 72 houses -

Mokotów Antoniewska Street Warsaw / Mokotów Standard apartments 220 13 863

Światowida Warsaw / Białołęka Standard apartments 173 11 735

Łódź II - I stage Łódź / Tymienieckiego Standard apartments 80 12 485

Katowice II Katowice Standard apartments 90 19 593

Zielona Dolina I, II Zdziarska Street Warsaw / Białołęka Standard apartments 1 480 72 550

Lewandów Park III, Lewandów Street Warsaw / Białołęka Standard apartments 787 33 179

Berensona Warsaw / Białołęka Standard apartments 170 9 350

Badylarska – Offices Warsaw Services - 4 157

Szczecin, Wyzwolenia Awenue Szczecin Services - 28 712

Pileckiego – Offices/Hotel Warsaw Services/ Hotel services - 16 838

STRATEGY- STRATEGY- PROJECTS IN THE PIPELINEPROJECTS IN THE PIPELINE

Regardless of market circumstances, works related to preparation of further projects are carried out based on the existing “land bank”, including: Drawing up documents, e.g. design documentation Applying for building permits.

The above actions will allow smooth construction commencement in the future.


JWCH Produkcja Budowlana Sp. z o.o. – focus: construction prefab

manufacturing – own plant with an advanced production line

Shorter deadlines Prefabs may be offered to unaffiliated clients Target – reduced expenditures Application of the prefabricated elements technology under the implemented

investment projects:

- Lewandów Park, Warsaw – application of ceramic walls (within shell walls)

- Lazurowe Ustronie, Ożarów Mazowiecki – complex application of prefabricated elements in the construction of multi-family and one-family houses (8 show houses finished until the end of 2009).

16




17

Office Building – Jerozolimskie Point

Warszawa Badylarska / Al. Jerozolimskie Streets

It is a modern 5-storey B+ class office building (with option to upgrade to A class standard), designed to the highest standards and care for work comfort. Useable space: 4,157 sq. m.Launch of the construction as soon as in November 2009.


Office and Commercial Space

The Company is prepared to start a commercialization project for office buildings,

hence project implementation may commence soon.


Office Building - Nowa DanaSzczecin, Wyzwolenia Avenue / Odzieżowa Street

It is a technologically advanced 22-storey A class office building. - services space: 25 324 sq. m.

Hotel and office building

Warsaw, PileckiegoStreetConstruction design in progress. Planned space: 16,838 sq. m.

18


Office and Commercial Space


19


At present, J.W. Construction Holding Group has

5 two- and three-star hotels in: Zegrze, Stryków,

Cieszyn, Tarnów Podgórny and Święta Lipka.

Hotels focus on institutional clients (conferences,

training sessions, seminars), but do not ignore

individuals.

Hotel Operations


20

In 2005, the Company purchased the “Czarny

Potok” Resort in Krynica. Now, it is being

expanded and upgraded to the “Resort & SPA”

standard. The goal is to convert it into a four-star

hotel with appropriate catering and conference

facilities plus a five-star SPA/wellness centre. The

building houses a lobby with reception desk, a

restaurant for 400 guests and a multi-purpose

conference room.

Hotel Operations



The Company

has about 360

available

apartments,

ready to move

in, in already

completed

projects

21

Osiedle Uroczysko, KatowiceOsiedle Leśne Gdynia

Willa Konstancin, Konstancin

Górczewska Park, Warsaw Osiedle Lazurowa, Warsaw

Ludwinowska Aleja, WarsawOsiedle Centrum, Łódź

Rezydencja Quatro, Warsaw

Osada Wiślana, Warsaw

STRATEGY- STRATEGY- APARTMENTS READY TO MOVE INAPARTMENTS READY TO MOVE IN


Revival on the mortgage loan market during the last weeks, with the perspective for the following months.

There is an active group of customers in the real estate market who were born during the 1980s baby boom and whose housing needs still have not been met

Projected decreasing supply of finished apartments starting from 2010 – developer companies have withheld constructions and not launched new projects, which results in a renewed interest in the purchase of apartments at a slight increase in prices

Stable pricing situation in the construction materials market

In the longer term, demand will be boosted again from 2010 onwards due to the Euro 2012 effect and Poland’s probable entry into the euro area

22

INDUSTRY DEVELOPMENT PROSPECTSIN THE COMPANY’S VIEW


Offer of financing programmes for Customers

Packages offering special conditions, dedicated to employees of institutions co-operating with J.W. Construction

Excellent housing offer, including instant-delivery opportunity buys

Offer of apartments meeting the requirements of the government programme “Rodzina na swoim” (Family on its own)

Interior finishing programmes for Customers

The best lending offer on the mortgage loans market, exclusively for clients of the Company

Competition of bids submitted by Clients

Continuous marketing activities

Flexible approaches to clients – negotiable prices depending on payment amounts and schedules

23

THE COMPANY’S SALES POLICY IN 2009


INVESTOR RELATIONS OFFICE:Małgorzata Szwarc-Sroka

Head of Financial Liquidity Managementand Head of the Investor Relations Office

Phone: +48 022 771 77 85 / +48 0 22 771 78 10or +48 022 771 75 10

e-mail: [email protected]

Documents

PRESENTATION J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q3 2009 PRESENTATION J.W.CONSTRUCTION HOLDING S.A. PERFORMANCE IN Q3 2009