Pik Sz · RUS:PIKK
Pik Sz — PIK Group — Investor Presentation (January 2012)
27 slides from Pik Sz's investor presentation, January 2012
Slide 1: Company Presentation January 2012
Unsaved Document / 06/07/2010 / 03:39 January 2012 Company Presentation
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation (the “Presentation”) is made, or by reading the Presentation slides, you acknowledge and agree to be bound by the following: This Presentation does not constitute or form part of, and should not be construed as, an offer or invitation to se
Slide 3: Unsaved Document / 06/07/2010 / 03:39
Unsaved Document / 06/07/2010 / 03:39 2
Slide 4: PIK Group at a glance
PIK Group at a glance 1 A leading mass market residential developer in Russia with 17 year track record Over 9% market share(1) in Moscow Metropolitan Area (MMA)(2) in 2010 Over 11mn sqm of net selling area (NSA) completed since inception 87% of project portfolio by value is concentrated in MM
Slide 5: Key investment highlights
Key investment highlights 1 2 Growing real estate Considerable project market with portfolio and secured strong fundamentals landbank 5 Strategy to succeed 4 3 Recovery of financial Integrated business performance model with substantial demonstrates production facilities and successful turn-around i
Slide 6: Growing real estate market with strong fundamentals
1 Growing real estate market with strong fundamentals PIK’s typical development – Novokurkino, Moscow region Unsaved Document / 06/07/2010 / 03:39 5
Slide 7: Long-term fundamentals for Russia's real estate market
Long-term fundamentals for Russia’s real estate market Low level of housing stock and housing debt underpins Demand shows increasing growth demand (sqm per capita) Russia 3.2% 22 Housing debt to GDP Latvia 53.7% 25 China 13.1% 31 (# of deals) Hungary 15.0% 32 Czech Rep. 24.5% 36 28 000 UK 86.4% 37 2
Slide 8: Prices and buying patterns returned to normality
Prices and buying patterns returned to normality Environment is back to 2007 average realized price dynamics (RUB ‘000 / sqm) 14% 115,1 100,8 103,7 +20% 71,6 +19% 59,9 64,1 36,4 39,5 33,1 FY2009 FY2010 FY2011 FY2009 FY2010 FY2011 FY2009 FY2010 FY2011 Moscow Moscow region Other regions MMA FY 2009 –
Slide 9: Considerable project portfolio and secured landbank
2 Considerable project portfolio and secured landbank PIK’s typical residential development – Zapovednaya, Moscow Unsaved Document / 06/07/2010 / 03:39 8
Slide 10: Portfolio provides tangible opportunity for future growth
Portfolio provides tangible opportunity for future growth Project portfolio geography by market value Project portfolio geography by unsold NSA Other regions Moscow 12.7% 10.1% Other regions 53.6% Moscow Moscow region 51.3% 36.3% Moscow region 35.9% Total: US$2,724mn Total: 10.1mn sqm Source: CBRE a
Slide 11: Portfolio of top projects under execution in MMA
Portfolio of top 15 projects under execution in MMA Total remaining Total Landplot Unsold NSA Market value budget Number of (ha) ('000 sqm) (US$mn) (US$m) buildings 13 15 12 Moscow 14 11 Perovskaya str., 66 15.32 139 114 326 7(1) Varshavskoe highway, own. 22 8.87 130 105 257 6(1) 141 South Chertanov
Slide 12: Integrated business model with substantial production facilities and in-house sales team
3 Integrated business model with substantial production facilities and in-house sales team Unsaved Document / 06/07/2010 / 03:39 11
Slide 13: Operating business model
Operating business model Total 1H 2011 revenue (2) 76.0% 8.9% 15.1% US$796mn Facilities management and Real estate development Construction services other Full chain of mass market residential Construction services provision Post completion development, including to 3rd parties: propert
Slide 14: Recovery of financial performance demonstrates successful turn-around
4 Recovery of financial performance demonstrates successful turn-around Unsaved Document / 06/07/2010 / 03:39 13
Slide 15: Operating results indicate continuing growth
Operating results indicate continuing growth Gross cash collections increased 31% FY11 year-on-year Gross cash collections dynamics(1) − +49.5% in gross cash collections from sales of apartments (Rub bn) In FY11 the company sold 1.55x the number of units sold in 70 58,8 61,9 +31% FY10 which indi
Slide 16: IFRS financial highlights
IFRS financial highlights US$mn, unless otherwise stated FY2008 FY2009 FY2010 1H2010 2H2010 1H2011 Revenue 1 356 1 298 1 254 503 751 796 Revenue in million RUB 33 695 41 175 38 090 15 126 22 964 22 794 Gross profit according to IFRS 339 251 82 (1) 84 130 Gross profit after additional provisions in m
Slide 17: Strategy to succeed
Unsaved Document / 06/07/2010 / 03:39 5 Strategy to succeed 16
Slide 18: Strategy to succeed in the current growing market
Strategy to succeed in the current growing market Focus on affordable segment of residential real estate − 10.1mn sqm land bank as at June 30, 2011 Focus on existing project portfolio in synergy with manufacturing facilities − annual housing construction capacity over 1.3mn/sqm Maintain focus
Slide 19: Appendix
Appendix PIK’s typical residential development, Bitsevsky (Moscow) Unsaved Document / 06/07/2010 / 03:39 18
Slide 20: PIK Group's selected completed residential communities
PIK Group’s selected completed residential communities Mass-market urban neighbourhood, Okskaya st. Mass-market urban neighbourhood, Novokurkino Moscow Moscow region, phase 1 and 2 – completed Land plot area: 63ha Land plot area: 81ha Total NSA: c.536,000 sqm, ~8,200 units Total NSA: c.835,0
Slide 21: Technological enhancement of PIK's product
Technological enhancement of PIK’s product Present Near future Medium term MMA – Potential evolution of prefabricated buildings Modern prefabricated buildings Redesigned prefabricated buildings “Generation next” buildings Construction worls on the first building (P3MK – Flagman) has been started in
Slide 22: Promising regional projects
Promising regional projects Aggregate Number PIK’s Aggregate number of aggregate market value of projects unsold NSA (US$mn) buildings ('000 sqm) Growing regionalmarkets Projects in the course of active development Obninsk 2 175 52 19 St. Petersburg Most (Kaluga region) Kaliningrad active Yaroslavl
Slide 23: PIK's relative stock performance
PIK’s relative stock performance PIK share price performance vs. indices PIK stock performance on MICEX vs. LSE (Rebased to 100) (GDR = 100%) FY09 Debt 150% Local shares are traded almost at par with GDRs GDR financial restructuring readmission results finalized to trading 140% 550 BoD 130% decision
Slide 24: Commitment towards best corporate governance practice
Commitment towards best corporate governance practice Shareholders Nafta Moskva 38.3% + Free float 61.7% Vladislav Mamukin Pavel Poselenov Anna Kolonchina Dmitry Skryabin Sergey Bessonov Chairman of the Board of CEO, Member of the Board Member of the Board of Member of the Board of Member of the Boa
Slide 25: Indicative cumulative net cash flow pattern on project level
Indicative cumulative net cash flow pattern on project level Land acquisition(1) Project acquisition (1) Presales launch Project completion Active construction Post completion development Predevelopment Initial construction works Permitting (1) Time T+ 0 T+1,5 T+ 2,5-3 T+ 3-3,5 ~ 25% Breakeven Targe
Slide 26: Debt position
Debt position Debt restructuring finalized (total debt RUB 43.9(1) bn, net Debt repayment schedule(1) debt – RUB 42.53 bn as of June 30, 2011) (RUB mn) New dialogue on future financing with the banks has been 0 10 000 20 000 30 000 40 000 reopened 1 300 Total debt: c.RUB 43.9 bn (2) 2011 − US$40
Slide 27: Operational highlights
Operational highlights 2008 2009 2010 2011 1H2010 1H2011 Key Operating indicators ('000 sqm) (1) New sales contracts to customers (PIK share) 520 123 392 510 159 229 (2) Transferred to customers (PIK share) 378 492 434 n/a 152 260 (1) Total housing completions 813 884 739 n/a 245 354 Key Financial i