Dom Development SAPresentation of 4th Quarter 2007

Consolidated Results

http://inwestor.domdevelopment.pl/information-for-investors/presentations

(Meeting with investors and analysts – 27 February 2008)

2

Evaluation of the Warsaw real estate market

Neutral / Positive

Positive

Neutral / Positive

Positive

Positive

EVALUATION:FACTOR:

Demand for flats and houses

Households’ financial condition

Availability of mortgage facilities

Macroeconomic conditions

Demographic environment

3

8,6597,354

0

2 000

4 000

6 000

8 000

10 000

December 2006 December 2007

average price per sqm in Warsaw

Price increase dynamics in 2007

Average price per sq m (PLN)

December 2006

December 2007

Change of price per sqm

Warsaw 7,354 8,659 17.7%

Source: redNet Property Consulting

Increase of 17.7 %

In 2007,over the whole year, prices increased by 17.7%. The 4th quarter saw a stabilization in prices of flats. In January 2008, flat prices in Warsaw increased again, by 2.2%.

4

Our customers’ creditworthiness – rate of wage increase is higher than flat prices increase

Number of sqm. which an average family (2+2) can afford to buy if both parents receive the average wage or salary for a given region - quarterly changes

0

10

20

30

40

50

60

70

Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Jan 2008

Warsaw

Cracow

Poznań

Wrocław

Gdańsk

52.73

35.13

42.9045.32

52.42

0

10

20

30

40

50

60

Warsaw Cracow Poznań Wrocław Gdańsk

data as of the end ofJanuary 2008

Source: Expander Analyses

5

Basic financial results in 2006 and 2007 (mPLN)

Q4 2007/Q4 2006 Stabilization of levels of revenues and net profit.

2007/2006 revenues increased by 20.4 % a net profit increase of 48.4 %

Q4 2006 Q4 2007 Change%

Revenues 207.5 204.2 - 1.6

Gross sales profit

73.2 78.5 + 7.2

EBITDA 51.9 52.9 + 1.9

Net profit 43.8 43.1 - 1.6

2006 2007 Change %

Revenues 729.8 878.8 + 20.4

Gross sales profit

232.9 333.1 + 43.0

EBITDA 166.6 243.2 + 46.0

Net profit 135.2 200.6 + 48.4

Quarterly financial results Yearly financial results

6

121

228

173

208

172

230

273

204

0

50

100

150

200

250

300

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

Revenues

Quarterly financial resultsQ1 2006 – Q4 2007 (mPLN)

15

4337

55

65

43

63

88

103

78

34 44

56

7371

33

0

20

40

60

80

100

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

Net profit Gross sales profit

Quarterly profits:Quarterly revenues:

Revenues and profits in the 4th quarter of 2007 were at a similar level to the 4th quarter of 2006.

7

Quarterly margins (%) Q1 2006 – Q4 2007

21.124.023.8

19.3 21.821.1

12.7

18.7

38.438.4 37.836.6

32.131.027.7

35.3

0

5

10

15

20

25

30

35

40

45

Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007

Net profit (% )

Gross sales profit (% )

In spite of a significant increase in costs in 2007, our company has maintained high levels of gross sales profit and net profit margin, resulting from the performance of projects that launched before the jump in costs.

Quarterly margins:

8

Balance sheet data Q1 2006 – Q4 2007 (mPLN)

Quarterly assets and equity

1028 1010

1252

585652 696

569 635 683

924 977

492

225192149

532

0

200

400

600

800

1000

1200

1400

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

4Q2007

Assets

Equity

Quarterly net debt

-105

3

-130-144

-26

9091

217

-200

-150

-100

-50

0

50

100

150

200

250

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

4Q2007

Net debt

9

Assets’ structure (mPLN)

Other 77.8

Cash and cash equivalents

202.1

Fixed assets 34.4

Inventory 695.8

Fixed assets 21.9

Inventory 862.4

Cash and cash

equivalents 275.5

Other 92.3

Advances on land 67.3

Work in progress

143.0

Finished goods 90.2

Land for projects in the

course of preparation

395.3

3rd quarter 2007 4th quarter 2007

Work in progress 138.7

Finished goods 99.8

Advances on land 150.9

Land for projects in the

course of preparation

473.0

INVENTORYINVENTORY

10

Flat sales and completion

Q4 2006 Q4 2007 Change

Popular flats 379 292 - 87

Superior apartments

71 51 - 20

Luxury apartments

0 0 0

Houses 1 0 - 1

Total 451 343 - 108

The decrease in sales in 2007 resulted from longer procedures relating to obtaining building permits, and consequently, delays to the launches of 3 projects planned for 2007 launch.

Q4 2006 Q4 2007 Change

Total 518 570 + 52

Quarterly completions delivered to clients

Quarterly sales

2006 2007 Change

Popular flats 1 227 1 404 + 177

Superior apartments

459 296 - 163

Luxury apartments

40 0 - 40

Houses 29 4 - 25

Total 1 755 1 704 - 51

2006 2007 Change

Total 1 522 1 442 - 80

Yearly sales

Yearly completions delivered to clients

11

Projects – high land bank

Number of units

As at 12 November

2007

As at 26 February

2008

Change

Completed projects

9,866 10,770 + 904

Projects under construction and offered for sale

2,869 2,692 - 177

Controlled land / projects in the course of preparation

8,545 8,173 - 372

Total 21,280 21,635 + 355

The Company has so far completed projects comprising over 10,700 flats and houses.

At present the Company is in the process of constructing almost 2,700 flats and apartments having a value of around PLN 1.6 billion.

Dom Development also has a further 8,173 flats and houses under preparation. The value of these projects amounts to approx PLN 3.7 billion.

Dom Development is also currently negotiating the purchase of land for a further 9,500 units

12

Houses

0%

20%

40%

60%

80%

100%

120%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Model project life cyclePopular flats

0%

20%

40%

60%

80%

100%

120%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q5 Q6 Q1 Q2 Q3

Sales progress

ConstructionLand purchase

80%

Preparation period After construction completion

Superior apartments

0%

20%

40%

60%

80%

100%

120%

Q1 Q2 Q3 Q4 Q5 Q1 2Q Q3 Q4 Q5 Q6 Q7 Q1 Q2 Q3

Land purchase Preparation period Construction After construction

75%

Preparation period

Construction After construction

Land purchase 40%

Final building permit

Final building permit

Construction completion

Occupation permit

Construction completion

Occupation permit

Final building permit

Construction completion

Occupation permit

13

Projects offered for sale (as of 26/02/2008)

Projects under construction

LocationNumber of

units

Sales progress *

(in quantity)

Construction progress *

Commencement date

Completion date

Popular flats

Derby 15 Białołęka 277 92 % 73% Q1 2007 Q2 2008

Olbrachta 1 i 2 Wola 448 60% 43% Q2 2007 Q4 2008

Olimpia 2 ph 5 Ursynów 63 81% 38% Q2 2007 Q4 2008

Regaty stage 1 i 2 Białołęka 390 40% 21% Q3 2007 Q4 2008

Derby 17 Białołęka 185 87% 40% Q2 2007 Q3 2008

Derby 13 Białołęka 174 3% 4% Q4 2007 Q3 2009

Derby 18 Białołęka 82 0% 0% Q1 2008 Q2 2009

Róża Wiatrów Targówek 184 0% 0% Q1 2008 Q4 2009

Superior apartments

Bruna Mokotów 247 70% 72% Q2 2006 Q1 2008

Zawiszy 1 i 2 Wola 355 71% 58% Q4 2006 Q2 2008

Grzybowska Śródmieście 287 0% 0% Q1 2008 Q2 2010

Completed projects

Location Number of units

Sales progress *

(in quantity)

Construction progress *

Commencement date

Completion date

Popular flats

Olimpia 2 ph 4 Ursynów 282 90% 100% Q3 2006 Q4 2007

Derby 7 ph 1 Białołęka 127 0% 100% Q4 2005 Q2 2007

Superior apartments

Patria 1 i 2 Śródmieście 242 91% 100% Q3 2005 Q3 2007

Gdański Śródmieście 260 85% 100% Q1 2006 Q3 2007

* As of 31/12/2007

14

Controlled land / projects in course of preparation (as of 26 February 2008)

Popular flats Location Number of units Commencement date Project value (m PLN)

Derby 9 Białołęka 192 Q2 2008

Derby 11 Białołęka 148 Q1 2009

Derby 14 Białołęka 696 Q1 2009

Derby 16 Białołęka 234 Q2 2008

Derby 20 Białołęka 52 Q3 2008

Winnica 1 (ph 1-3) Białołęka 840 Q2 2008

Regaty 3-6 Białołęka 678 Q1 2008

Akacje 10 ph 2 Białołęka 63 Q1 2010

Akacje 11 Białołęka 77 Q1 2008

Górczewska Wola 355 Q2 2008

Regaty 2 stage 1 Białołęka 196 Q2 2009

Rondo Wiatraczna Praga Południe 624 Q1 2010

Winnica 2 ph 1 Białołęka 125 Q2 2009

Gocław Praga Południe 1,596 Q2 2009

Klasyków Białołęka 543 Q4 2008

Jugosłowiańska Praga Południe 717 Q1 2009

Wrocław – Nyska Krzyki 490 Q3 2008

Wrocław – Nyska 2 NEW Krzyki 246 Q4 2009

Subtotal 7,872

Luxury apartments

Opera 2 Śródmieście 11 Q4 2008

Razem 11

Houses

Laguna 2 Ursynów 26 Q1 2008

Malwa 4 Białołęka 16 Q1 2010

Regaty 2 stage 1 Białołęka 88 Q1 2008

Klasyków Białołęka 74 Q3 2009

Józefosław NEW Józefosław 86 Q2 2009

Subtotal 290

TOTAL 8,173 3.7