Mostotrest · RUS:MSTT
Mostotrest — Investor Presentation (June 2014)
22 slides from Mostotrest's investor presentation, June 2014
Slide 1: Corporate Overview
CORPORATE OVERVIEW Moscow, June 2014
Slide 2: Disclaimer
2 DISCLAIMER Information contained in this presentation concerns Open Joint Stock Company “Mostotrest”, a company organized and existing under the laws of Russia (the “Company”, and together with its subsidiaries, the “Group”), and is for general information purposes only. The opinions presented her
Slide 3: Basis for Presentation
3 BASIS FOR PRESENTATION The financial information presented in this presentation is based on the audited consolidated financial statements of Open Joint-Stock Company Mostotrest (the Company or, together with its subsidiaries, Mostotrest or the Group) prepared in accordance with International Finan
Slide 4: Mostotrest at a Glance
4 MOSTOTREST AT A GLANCE • Construction: bridges, highways, railroads, airports, ports DIVERSIFIED TRANSPORT • Toll road operation INFRASTRUCTURE • Road and bridge maintenance and repair CONSTRUCTION COMPANY • Pioneer in Russia’s developing concession segment (concession holder for the km 15 – km 58
Slide 5: Key Operation Activities
5 KEY OPERATION ACTIVITIES Construction Services Road Concession Toll highway and bridges operation With its joint venture partner VINCI, Leading player in the Russian infrastructure (UTS), road repair and maintenance Mostotrest owns 100% of NWCC on construction market. services (Mostotrest-Service)
Slide 6: Business Model
6 BUSINESS MODEL • Project risk assessment • Optimization of engineered Execution: • Maintaining traffic flow solutions • Planning and analysis • In-house • Road maintenance • Development of optimal • Scheduled repair& • Pre-project optimization • Subcontracted: execution schedule overhauls - Non-co
Slide 7: Projects Geography
7 PROJECTS GEOGRAPHY M-11 “Narva“ M-11 “Moscow-St. Petersburg“ Highway Section Highway Segments: km 15 – km 58, km 258 – km 334 (Vyshny M-9 “Baltic“ Highway Volochok Bypass), Sections km 334 – km 543 M-8 “Kholmogory“ Highway Section Ivangorod St.-Peterburg Section of M-11 “Moscow –St. Businovskaya a
Slide 8: Strong Backlog
8 STRONG BACKLOG(a) Contract Scheduled % Estimated Backlog Dynamics, RUB billion Тор Project in Backlog Value(b) Completio Completio Backlog(b) (RUB n n (RUB billion) billion) 2013 355.4 Construction of Section 6 (km 334 – km 543) 122.5 2018 0.1% 122.4 of M-11 “Moscow – St. Petersburg” Highway +26%
Slide 9: Market Overview
9 MARKET OVERVIEW Transport Infrastructure Construction Market, 2013 Transport Infrastructure Construction Market RUB billion Structure, RUB billion,% 2009 594.4 Roads and 478.6 bridges 2010 591.8 Construction 322.0 14% 74% 67% Services 156.6 2011 659.5 Airports 34.6 2012 654.7 7% Railways 88.6 33%
Slide 10: Key Mid-Term Market Drivers
10 10 KEY MID-TERM MARKET DRIVERS 2014 KEY MARKET DEVELOPMENT M-11 “Moscow – St. Petersburg” Highway AREAS • Continued development of federal highways administered by Avtodor, including M-11 “Moscow – St. Petersburg” and M-4 “Don” • Development of key federal highways administered by Federal Road Ag
Slide 11: Key Financial Results
11 KEY FINANCIAL RESULTS Revenue, RUB billion Gross Profit, RUB billion Gross Margin(c) 2013 116.7 2013 14.0 12.0% +24% +7% 2012 94.1 2012 13.1 13.9% • Revenue increased by 24% driven by • The share of subcontracted volumes(d) increased to 44% in 2013 • 8% in-house volumes(a) growth from 36% in 2012
Slide 12: Revenue Analysis by Key Segment
12 REVENUE ANALYSIS BY KEY SEGMENT • Volume growth in major projects: RUB billion ROADS AND BRIDGES – km 15 – km 58 and km 258 – km 334 (Vyshny Volochok 2013 98.4 Bypass) sections of M-11 “Moscow – St. Petersburg” Highway +27% – Businovskaya traffic interchange 2012 77.6 – M-9 “Baltic” Highway secti
Slide 13: Cost Analysis
13 COST ANALYSIS SUBCONTRACTOR • 52% increase in subcontracted volumes(с) mainly driven by RUB billion SERVICES construction of Kurortny Avenue Relief Road in Sochi 2013 51.8 • Share of subcontracted volumes(d) rose to 44% from 36% in +52% 36%(a) 44%(b) 2012 2012 34.0 MATERIALS COSTS 2013 18.9 • Mat
Slide 14: Solid Financial Position
14 SOLID FINANCIAL POSITION RUB billion NET CASH(a) • Net cash position of RUB22.0 billion (2012: RUB0.2 billion) • Increase in net cash balances driven by customer advances, 26.6 (22.0) including under new large contracts concluded in 2H 2013 (4.5) Debt Cash & cash Net debt equivalents STRONG LIQUI
Slide 15: Appendices
‹#› 15 APPENDICES • OWNERSHIP STRUCTURE • EXTRACTS FROM CONSOLIDATED FINANCIAL STATEMENTS • TOP PROJECTS IN BACKLOG
Slide 16: Appendix 1: Ownership Structure
16 16 APPENDIX 1: OWNERSHIP STRUCTURE Mostotrest shares in affiliated and subsidiary companies Construction Services TSM UTS Construction and reconstruction of roads, Toll road operation, including as part of lifecycle airports and airfields, railway infrastructure and Road concession Contracts port
Slide 17: Appendix 2 (1/3): Extracts from Consolidated IFRS Reports
17 17 APPENDIX 2 (1/3): EXTRACTS FROM CONSOLIDATED IFRS REPORTS Consolidated Balance Sheet RUB million 31/12/2013 31/12/2012 31/12/2013 31/12/2012 Assets Equity Registered capital 136 136 Goodwill 1,272 1,272 Paid-in capital 6,049 6,049 Revaluation provision for investments available for Intangible
Slide 18: Appendix 2 (2/3): Extracts from Consolidated IFRS Reports
18 18 APPENDIX 2 (2/3): EXTRACTS FROM CONSOLIDATED IFRS REPORTS Consolidated Income Statement RUB million For the Year Ended 31 December 2013 2012 Revenue 116,714 94,078 Cost of sales (102,704) (80,990) Gross profit 14,010 13,088 Other revenue 394 222 Administrative expenses (6,168) (4,968) Other ex
Slide 19: Appendix 2 (3/3): Extracts from Consolidated IFRS Reports
19 19 APPENDIX 2 (3/3): EXTRACTS FROM CONSOLIDATED IFRS REPORTS Segmental reporting RUB million Continuing operations Construction Services 2013 2012 2013 2012 Revenue 106 861 91 224 10 700 2 864 Cost of sales (94 998) (78 429) (8 654) (2 576) Gross profit 11 863 12 795 2 046 288 Operating profit 3
Slide 20: Appendix 3 (1/2): Top Projects in Backlog
20 20 APPENDIX 3 (1/2): TOP PROJECTS IN BACKLOG(a) Contract Estimated Scheduled Project Value(b) % Completion Backlog(b) Company Role Completion (RUB billion) (RUB billion) Construction of Section 6 (km 334 – km 543) of M-11 “Moscow – 122.5 2018 0.1% 122.4 General Contractor St. Petersburg” Highway
Slide 21: Appendix 3 (2/2): Top Projects in Backlog
21 21 APPENDIX 3 (2/2): TOP PROJECTS IN BACKLOG(a) Contract Estimated Scheduled Project Value(b) % Completion Backlog(b) Company Role Completion (RUB billion) (RUB billion) Construction of km 0 – km 18 section of Vladivostok – Nakhodka General Contractor – Vostochny Port Highway in Primorski Krai (S
Slide 22: Investor Relations Contact
Russia, 121087, Moscow, Olesya Lapina Barklaya St. 6, Bld. 5 Head of IR Tel: +7 (495) 669 7999 Tel.: +7985-413-9194 Fax: +7 (495) 669 7711 E-mail: olapina@mostro.ru E-mail: mostro@mostro.ru