Letter

Letter from the President of the Management Board of INPRO SA
Ladies and Gentlemen,
On behalf of the Management Board, I have the pleasure to present the Annual Report of the
INPRO SA Capital Group for the year 2013 to you. I address this letter to our Shareholders,
Contractors, Employees and other Stakeholders.
Despite the persistent economic slowdown, 2013 was a successful year for developers. It was
not only better than 2012, but also comparable with the record year 2007. The contributing
factors include, among others: relatively low prices of flats, advantageous interest rates for
borrowers, and the growth of income in Poland. Moreover, buyers wishing to use the last
months in which it was possible to obtain credit for 100% of the value of a flat focused on
doing so.
Undoubtedly, the INPRO SA Group took advantage of its very good experience-based
knowledge of the market and the commitment of the whole staff. From January to December
2013, the Group sold 499 flats and houses gross (in the meaning of preliminary agreements)
in total, which is 88 agreements more than in the previous year (a 21% increase). If
withdrawals from agreements are taken into consideration, the so-called net sales were 419
agreements (an 18% increase).
At the same time, in the period in question, the INPRO SA Group placed on the market the
total of 428 flats and houses on the following projects: Chmielna Park building B, City Park
buildings E and F, Wróbla Staw multi-family buildings stage III, Wróbla Staw single-family
houses stage D, and Osiedle Leszczynowe building No. 13.
Sales revenues achieved by the Group in 2013 were 11% higher year on year and amounted
to over PLN 178 million. In 2013 the Group delivered more premises than a year before (468
compared to 409). However, in view of the situation on the property development market and
of the need to use various kinds of promotion, net profit constituted 8% of the sales against
11% in the previous year. The profitability was also adversely affected by the costs of
equipment for Hotel Mikołajki Sp. z o.o., which were written into the allowable costs on a oneoff basis.
www.inpro.com.pl
INPRO S.A., ul. Opata Jacka Rybińskiego 8, 80-320 Gdańsk, tel.: (58) 34 00 370, e-mail: [email protected]
Spółka wpisana do rejestru przedsiębiorców prowadzonego przez Sąd Rejestrowy Gdańsk – Północ w Gdańsku VII Wydział
Gospodarczy Krajowego Rejestru Sądowego pod numerem KRS 0000306071. Spółka Emitenta została zarejestrowana w rzeczonym
rejestrze przedsiębiorców dnia 29 maja 2008 roku. Spółka posiada również numer identyfikacji podatkowej NIP 589-000-85-40 oraz
numer ewidencji statystycznej REGON 008141071.
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Last year, the Mikołajki Hotel***** on the Birds' Island on Lake Mikołajskie was opened as
the crowning achievement after a few years of hard work. The construction of the condohotel
in Mikołajki was co-financed by the funds from the issue of the shares of INPRO SA. The
extension of the Dom Zdrojowy**** hotel in Jastarnia was completed as well. Both projects
will have direct impact on the revenues generated by the Group at the level of hotel activity in
the coming years.
Despite great concern about the economic situation, the previous year proved much better
than we initially had assumed, a fact which lets us look towards the future with hope. In
addition to the factors mentioned earlier, demand in the coming months will be stimulated by
the "Flat for Young People" programme launched in 2014. Inpro has flats qualifying for that
Programme and intends to extend is relevant offer.
In the second half of the next year we are also planning to start the sales of the first buildings
from new projects in very attractive locations, including the Oliwa district of Gdańsk,
Grunwaldzka street (land was purchased in 2013 from TVP SA), and in the Przymorze district
of Gdańsk, Szczecińska street. We also intend to launch the next stages of current projects.
This should let us maintain a high sales level in 2014 and, consequently, contribute to the
further steady growth of the value of INPRO SA.
I wish to thank all the Shareholders for their trust in the Company and the employees for their
commitment and contribution to the Company's development so far.
Enjoy reading the Report.
Piotr Stefaniak
President of the Management Board
of Inpro SA
www.inpro.com.pl
INPRO S.A., ul. Opata Jacka Rybińskiego 8, 80-320 Gdańsk, tel.: (58) 34 00 370, e-mail: [email protected]
Spółka wpisana do rejestru przedsiębiorców prowadzonego przez Sąd Rejestrowy Gdańsk – Północ w Gdańsku VII Wydział
Gospodarczy Krajowego Rejestru Sądowego pod numerem KRS 0000306071. Spółka Emitenta została zarejestrowana w rzeczonym
rejestrze przedsiębiorców dnia 29 maja 2008 roku. Spółka posiada również numer identyfikacji podatkowej NIP 589-000-85-40 oraz
numer ewidencji statystycznej REGON 008141071.
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