Lsr · RUS:LSRG
Lsr — FY2013 Earnings Presentation
50 slides from Lsr's earnings presentation, 2014
Slide 1: 2013 Results Investor Presentation
2013 Results Investor Presentation
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to the bound by the following limitations: This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an o
Slide 3: Agenda
Agenda 1. Operating and Financial Results 2. Market update 3. LSR Group today Appendix 3
Slide 4: 2013 Results Highlights
2013 Results Highlights Financial Highlights • Revenue increased by 7%, up to RUB 65,316m • EBITDA increased by 6%, up to RUB 14,156m, EBITDA margin was 22% • Total comprehensive income increased by 8%, up to RUB 5,321m • Total debt decreased by 14%, down to RUB 34,062m • Net debt/EBITDA ratio was 2
Slide 5: Key financials
Key financials Sales (RUB m) EBITDA (RUB m) and EBITDA margin (%) +7% +6% 65.316 14,156 13,392 61.122 22 % 22 % 2012 2013 2012 2013 2013 sales revenue and EBITDA breakdown1 Building materials & Aggregates 2 18% 30% 27% 30% Revenue Real Estate EBITDA Development 43% Construction & 52% construction se
Slide 6: Real estate development
Real estate development Revenue1 and New contract sales (RUB m) EBITDA1 (RUB m) and EBITDA margin (%) +62% +46% 60.208 8.824 +34% 37.192 6.061 33.725 25.260 24% 26% 1 2012 2 3 4 2013 5 2012 2013 New contract sales Revenue New contract sales (‘000 m2) Completions (‘000 m2) Transfers (‘000 m2) +69% -1
Slide 7: Real estate development
Real estate development St. Petersburg Moscow Urals +72% +36% +39% 7.414 Revenue and 45.752 7.041 +40% +60% New contract sales 5.471 5.049 5.166 26.672 26.553 (RUB m) 18.985 3.226 -28% 1.764 New contract sales 1.271 Revenue 1 20122 3 42013 5 1 20122 3 2013 4 5 1 20122 3 42013 5 +47% +143% 7.827 1.13
Slide 8: Real estate development: sales in St. Petersburg
Real estate development: sales in St. Petersburg New contract sales in St. Petersburg 2013/2012: +94% (excluding governmental contracts), ‘000 m2 4Q2013/4Q2012: +79% 529 250 272 192 200 231 144 150 129 107 114 100 83 72 78 64 53 41 38 37 46 39 50 22 27 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1 1Q 2Q 3Q 4Q 1Q 2Q 3
Slide 9: Real estate development: sales in Moscow and Urals
Real estate development: sales in Moscow and Urals New contract sales in Moscow, ‘000 m2 2013/2012: +12% 4Q2013/4Q2012: +23% 104 92 40 37 34 35 28 27 30 25 25 20 20 22 21 18 20 4 15 11 10 3 5 5 0,3 0,7 1 2 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 2012 2013 New contract sales in
Slide 10: New project launches 2014
New project launches 2014 St. Petersburg Shuvalovskiy Karyer 422 th m2 Morskie Bashni 62 th m2 Filatovskaya st. Yekaterinburg Mesenskaya st. 40-Letiya Komsomola 182 th m2 Latviyskaya 175 th m2 2014 total new supply Moscow 960 th m2 (including new supply in the projects already launched to the market
Slide 11: Construction
Construction EBITDA1 (RUB m) and Volume of construction Revenue1 (RUB m) EBITDA margin (%) works, ‘000 m2 +11% +18% +19% 24.191 3.167 862 21.842 2.695 725 12% 13% 2012 2013 2012 2013 2012 2013 • RUB 2.8 bn modernisation programme of our prefab factory in St. Petersburg completed. Capacity increased
Slide 12: Construction
Construction St. Petersburg Moscow Urals +9% +44% 16.697 -7% 4.177 15.375 3.567 3.318 2.901 Revenue 1 (RUB m) 2012 2013 2012 2013 2012 2013 +63% 453 +30% 475 EBITDA1 (RUB m) and 2.528 277 13% EBITDA margin (%) 1.943 -61% 187 13% 15% 13% 6% 10% 11% 2012 2013 2012 2013 2012 2013 +28% 546 177 -9% +26%
Slide 13: Building materials
Building materials EBITDA1 (RUB m) and Revenue1 (RUB m) EBITDA margin (%) +2% +6% 20.703 21.101 5.071 4.779 23% 24% 2012 2013 2012 2013 • As of March 2013 our new brick plant achieved 100% capacity utilisation ratio of its 1st production line. • 2nd production line to manufacture clinker ceramic ite
Slide 14: Building materials: Aggregates and Ready-Mix Concrete
Building materials: Aggregates and Ready-Mix Concrete Crushed Granite Sand Ready-Mix Concrete St. Petersburg Moscow +2% +9% 3.876 3.938 +7% -10% 2.932 1.819 2.687 3.199 1.633 2.993 Revenue (RUB m) 2012 2013 2012 2013 2012 2013 2012 2013 +65% 228 82 -9% 1.258 75 -33% 1.429 -23% 845 1,105 138 EBITDA (
Slide 15: Building materials sales volumes: Aggregates and Ready-Mix Concrete
Building materials sales volumes: Aggregates and Ready-Mix Concrete Crushed granite, million m3 2013/2012: +12% Sand, million m3 2013/2012: -8% 4Q2013/4Q2012: +28% 4Q2013/4Q2012: +33% 10.9 10.9 7.2 10 6.4 9.8 5.4 3 4 2,4 4 3,6 3,4 2,5 3,1 3,2 3,2 2 2 2,8 2,9 1,8 3 2,7 2 1,6 1,6 1,7 2,5 2,3 2,4 2,4 2
Slide 16: Building materials: Reinforced Concrete and Cement
Building materials: Reinforced Concrete and Cement Reinforced Concrete Cement +17% 4.929 -20% 3.030 3.960 2.589 Revenue (RUB m) 2012 2013 2012 2013 +106% 536 +49% 975 261 653 13% EBITDA (RUB m) and EBITDA margin (%) 25% 5% 14% 32% 2012 2013 2012 2013 16
Slide 17: Building materials sales volumes: Reinforced Concrete and Cement
Building materials sales volumes: Reinforced Concrete and Cement Reinforced concrete, ‘000 m3 2013/2012: -21% 4Q2013/4Q2012: -23% 391 369 311 276 113 120 102 107 102 102 93 100 82 84 76 78 74 74 79 80 70 58 52 60 40 20 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 2012 2013 2013/2012:
Slide 18: Building materials: Bricks and Aerated Concrete
Building materials: Bricks and Aerated Concrete Bricks Aerated Concrete St. Petersburg Moscow +1% +123% 1.393 +13% 1.374 423 2.721 2.413 Revenue (RUB m) 190 2012 2013 2012 2013 2012 2013 +34% +24% 498 835 672 372 24 EBITDA (RUB m) and 6% EBITDA margin (%) 2012 2013 27% 36% 28% 31% 2012 2013 2012 201
Slide 19: Building materials sales volumes: Bricks and Aerated Concrete
Building materials sales volumes: Bricks and Aerated Concrete Bricks St. Petersburg, million nf 2013/2012: +5% Bricks Moscow, million nf 2013/2012: +34% 4Q2013/4Q2012: +18% 4Q2013/4Q2012: +10% 172 25 172 171 163 18 70 7,5 57 58 8 6.9 6,7 60 52 53 6,5 51 48 50 6,0 5,7 50 44 6 39 37 40 36 4,2 40 30 3,
Slide 20: Debt maturity profile as of December 2013
Debt maturity profile as of 31 December 2013 Total debt: RUB 34,022m* 7,888 7.808 6.969 7.082 3.140 2.565 1.847 2.133 2.141 RUB m 336 1Q14 2Q14 3Q14 4Q14 2015 2016 2017 2018 2019> Total Total, % RUB m 1,847 336 2,565 3,140 6,785 6,040 6,152 1,203 1,676 29,744 87% USD m - - - - 28 28 28 28 14 128 13%
Slide 21: Gross debt by source as of December 2013
Gross debt by source as of 31 December 2013 Net debt/EBITDA Net debt/EBITDA 3.3 2.7 RUB 38,922m RUB 39,475m Net debt/EBITDA 2.0 7,369 19% VEB 8,931 23% VEB RUB 34,062m Interest Rate (avg) 9.04% p.a. Interest Rate (avg) 8.65% p.a. Interest Rate (avg) 8.87% p.a. 5,534 16% VEB 6,442 16% Rosselkhozbank
Slide 22: Agenda
Agenda 1. Operating and Financial results 2. Market update 3. LSR Group today Appendix 22
Slide 23: Sales of new apartments
Sales of new apartments Sales of new apartments in St. Petersburg 1200 1030 1000 780 800 690 710 670 660 600 620 620 600 600 580 ‘000 m2 600 547 560 500 486 448 431 446 408 382 400 325 320 304 200 0 1Q/08 2Q/08 3Q/08 4Q/08 1Q/09 2Q/09 3Q/09 4Q/09 1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12
Slide 24: Supply of new apartments
Supply of new apartments Supply of new apartments in St. Petersburg 200 1031 000 838 800 752 757 737 722 690 647 ‘000 m2 604 600 551 520 492 455 466 415 430 421 383 400 287 226 237 209 200 145 153 0 1Q/08 2Q/08 3Q/08 4Q/08 1Q/09 2Q/09 3Q/09 4Q/09 1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12
Slide 25: New residential real estate price development
145 0 0 New residential real estate price development 57 68 74 56 63 80 70 70 0 17 26 in St. Petersburg, Moscow and Yekaterinburg 39 15 20 26 28 9 13 0 2000 2001 St. Petersburg 250 2002 2003 2004 2005 2006 2007 2008 2009 1Q 2010 216 230 231 Elite Mass-Market 211 200 198 186 200 ‘000 RUB 150 145 100
Slide 26: Mortgage lending
Mortgage lending Mortgage lending in Russia Average mortgage rates in Russia 450 459,2 15,0% number of loans, '000 loans in RUB 400 339,9 bn RUB 370,9 14,0% 318,3 loans in foreign currency 350 13,1% 300 264,3 250,5 275,5 267 13,0% 12,8% 12,7% 12,6% 227,0 12,4% 12,4% 250 221 12,3% 206,6 215 12,0% 12,
Slide 27: Agenda
Agenda 1. Operating and Financial Results 2. Market update 3. LSR Group today Appendix 27
Slide 28: LSR Group: business with strong growth history
LSR Group: business with strong growth history Sales and EBITDA dynamics (RUB bn) Real Estate and Construction 61 65 40 Residential Real Estate Development market leader in St. 60 50 51 50 52 Petersburg with a growing presence in Moscow/the Moscow 29% 30 region and Urals 40 36 22% 22% 26% 20% Fo
Slide 29: Development
Development LSR Group is one of the leading Russian real estate companies. The portfolio of real estate development projects of LSR Group includes 7.8 million square metres of net sellable area and RUB 113.3 billion of market value of residential and commercial properties.* St. Petersburg Moscow Yek
Slide 30: Real estate market positions in St. Petersburg in 2013
Real estate market positions in St. Petersburg in 2013 Housing Under Construction Elite Real Estate Mass-Market Real Estate* Prefab Construction* №1 №1 №1 12% 41% 71% Housing Completions Elite Real Estate Mass-Market Real Estate * Prefab Construction* №1 №2 №1 9% 62% 82% Source: SPb Realty Note: *Ex
Slide 31: Real estate portfolio by region
Real estate portfolio by region Breakdown of portfolio by region Breakdown of portfolio by region (Net Sellable Area) (Market Value) Yekaterinburg; Yekaterinburg; 5% 8% Moscow; 13% Moscow; 21% St Petersburg; 79% St Petersburg; 74% Region NSA (‘000 m2) % of total MV (RUB m) % of total St. Petersburg
Slide 32: LSR real estate projects pipeline – St. Petersburg
LSR real estate projects pipeline – St. Petersburg NSA (m2) 2014 2015 2016 2017 2018 2019+ Elite 1 Smolny Park Smolnogo St., bld. 4, lit. A 65,601 2 Baskov / Korolenko Korolenko St., 5, 5A 45,885 3 Paradny Quarter Paradnaya St., 1-3 8,463 Radishcheva St., 39 10,108 4 Radishcheva, 39 5 Morskoy 29 Mor
Slide 33: LSR project map
LSR project map St. Petersburg 18 25 17 27 12 12 18 11 20 18 25 17 27 11 12 22 10 7 6 8 11 15 7 9 10 5 7 6 1 Available for sale 6 4 1 2 9 Future projects 3 2 4 3 Completed projects 4 8 2 20 19 20 13 19 26 9 19 26 21 15 14 21 15 16 16 14 10 14 21 24 24 17 13 2313 16 23 33
Slide 34: LSR real estate projects pipeline – Moscow and Yekaterinburg
LSR real estate projects pipeline – Moscow and Yekaterinburg NSA (m2) 2014 2015 2016 2017 2018 2019+ Moscow 1 Novy Balchug Sadovnicheskaya St., 9 12,099 2 Leningradskoe Highway, 58 Leningradskoe Highway, 58 49,389 3 Donskoy Olymp Serpukhovskiy Val, 19 75,617 4 Nakhabino Yasnoye Сhernaya Village 145,
Slide 35: LSR project map
LSR project map Moscow and Moscow Region Yekaterinburg 5 2 4 3 6 1 7 3 5 4 1 2 8 5 6 Available for sale 4 Future projects 7 Completed projects 35
Slide 36: Real estate portfolio by segment
Real estate portfolio by segment Breakdown of portfolio by segment Breakdown of portfolio by segment (Net Sellable Area) (Market Value) Offices; Business class; 1% Operating offices; Operating offices; Offices; 4% 0.2% 3% Elite; 8% 2% Business class; 15% Mass-market Mass-market ; 93% Elite; 59% 15%
Slide 37: Real estate portfolio by stage of development
Real estate portfolio by stage of development Breakdown of portfolio by stage of development Breakdown of portfolio by stage of development (Net Sellable Area) (Market Value) Completed; Operating offices; Operating offices; 0.2% 0.2% Completed; 3% 4% Construction; Concept 27% Development; 29% Design
Slide 38: Construction
Construction St. Petersburg Moscow Yekaterinburg Prefab housing Capacity: 500,000 m2 Capacity: 250,000 m2 Capacity: 200,000 m2 construction •largest pre-fabricated housing •"EuroPa", 111 and 222 series of •full cycle of construction of factory in the North-West of pre-fabricated panel housing; resid
Slide 39: Building Materials
Building Materials LSR Group is № 1 In Russia and Ukraine – in production of aerated concrete In Russia – in production of ready-mix concrete, bricks and extraction of sand In Northwest Russia – in production of reinforced concrete and extraction of crushed granite St. Petersburg Moscow Ukraine Buil
Slide 40: Building materials market positions in St. Petersburg and the Leningrad region in 2013
Building materials market positions in St. Petersburg and the Leningrad region in 2013 Building Materials Reinforced Concrete Ready-Mix Concrete Bricks 1 Aerated Concrete Cement №1 №1 №1 №1 №2 17% 20% 33% 37% 62% Aggregates Sand Crushed Granite №1 №1 39% 62% Source: Reshenie Note: Volume terms 1) Ca
Slide 41: Group structure
Group structure LSR Group Real Estate Construction Building Materials LSR. Aggregates and LSR. Real Estate - LSR. Construction - Ready-mix Concrete - North-West North-West North-West LSR. Real Estate - LSR. Construction - LSR. Ready-mix concrete - Moscow Moscow Moscow LSR. Real Estate - LSR. Constru
Slide 42: Robust corporate governance – Board of Directors
Robust corporate governance – Board of Directors Andrey Molchanov Chairman Executive directors Dmitri Gontcharov Elena Tumanova Mikhail Romanov Olga Sheikina Managing Director of Advisor to the Chairman of Advisor to the Chairman of Head of LSR Group Moscow office LSR Europe GmbH the Board of Direct
Slide 43: Experienced And Committed Management
Experienced And Committed Management Executive Committee: Solid experience within the industry CEO Executive Director Deputy CEO, Deputy CEO, Deputy CEO, Deputy CEO, Head of Corporate Managing Director Managing Director Managing Director business development functions Aggregates & Bricks & Aerated R
Slide 44: Housing construction technologies
Housing construction technologies Traditional panel LSR prefab technology Poured concrete Short construction period Short construction period Shorter construction period increases costs, higher labour costs Industrial production Industrial production Production process at the construction site requi
Slide 45: Agenda
Agenda 1. Operating and Financial Results 2. Market update 3. LSR Group today Appendix 45
Slide 46: Key financials
Key financials RUB m 2011 2012 2013 Revenues 51,910 61,122 65,316 EBITDA 10,135 13,392 14,156 EBITDA margin 20% 22% 22% Operating profit 7,855 9,626 10,916 Operating profit margin 15% 16% 17% Profit for the year 2,432 4,914 5,234 Operating cash flow 7,738 5,167 14,213 Capitalised capital expenditure
Slide 47: Statement of Comprehensive Income
Statement of Comprehensive Income RUB m 2011 2012 2013 Sales revenue 51,910 61,122 65,316 Cost of sales (37,247) (42,225) (44,058) Gross profit 14,662 18,896 21,258 Distribution, G&A and other expenses (6,959) (9,261) (10,343) Changes in fair value of investment property 152 (10) - (non-cash) Write-
Slide 48: Financial Position
Financial Position RUB m 31.12.11 31.12.12 31.12.13 ASSETS Non-current assets Property, plant and equipment 37,329 39,907 42,776 Investment property under development 651 153 - Investment property 2,311 676 - Intangible assets 4,880 4,949 5,275 Other investments 112 147 3 Deferred tax assets 1,795 1
Slide 49: Cash flow
Cash flow RUB m 2011 2012 2013 Net Income 2,432 4,914 5,234 Depreciation & amortization 2,432 2,724 3,238 Net finance costs 4,121 3,205 3,986 Other, net 485 1,749 1,712 Operating profit before changes in working capital and provisions 9,469 12,592 14,170 Change in Inventories (3,127) (9,364) (11,757
Slide 50: Contacts
Contacts LSR Group Investor Relations Yuri Ilyin 36 Kazanskaya Street, St Petersburg 190031, Russia Phone: +7 812 326 9329 Mob: +7 921 906 7777 Email: ilyin@lsrgroup.ru