Lsr · RUS:LSRG
Lsr — FY2017 Earnings Presentation
19 slides from Lsr's earnings presentation, March 2018
Slide 1: Full Year 2017 Financial Results
Full Year 2017 Financial Results March 2018
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: 2017 Financial Results Highlights
2017 FINANCIAL RESULTS HIGHLIGHTS • Revenues reached a record RUB138bn, up 30% YoY, primarily driven by robust performance across all regions of presence Revenue (Saint-Petersburg, Moscow, Yekaterinburg) Adjusted EBITDA • Adjusted EBITDA surged by 33% YoY to RUB37bn and margin • Adjusted EBITDA marg
Slide 4: Revenue and Adjusted EBITDA Breakdown
REVENUE AND ADJUSTED EBITDA BREAKDOWN • Revenue hit a record of RUB138.5bn, up 30% YoY, with adjusted EBITDA demonstrating robust growth of 33% YoY • Adjusted EBITDA margin stood at 27% while operating profit margin was 16% • Growth primarily driven by strong performance across all regions (Saint-Pe
Slide 5: Real Estate Development Segment Performance
REAL ESTATE DEVELOPMENT SEGMENT PERFORMANCE KEY DEVELOPMENTS REVENUE AND ADJUSTED EBITDA DYNAMICS (RUB M) Revenue Adjusted EBITDA • In 2017 Real Estate segment revenue increased by 44% to RUB111.2bn 111,216 32,297 • Real Estate adjusted EBITDA rose to RUB32.3bn (32% YoY), with 24,410 77,262 adjusted
Slide 6: Building Materials Segment Performance
BUILDING MATERIALS SEGMENT PERFORMANCE KEY DEVELOPMENTS • In 2017 the sales revenue of building materials division increased by 1% to RUB17,362m • Adjusted EBITDA increased by 52% to RUB6,571m with margin hitting 38% level • Crushed granite is affected by the deficit of rolling stock on Oktyabrskaya
Slide 7: Maintaining Strong Balance Sheet
MAINTAINING STRONG BALANCE SHEET COMPANY DEBT SNAPSHOT COMPANY DEBT COMPOSITION (AS OF 31-DEC-2017) • Total debt up to RUB72.8bn, as of 31 December 2017 Total: RUB72.8bn Bank debt: RUB57.7bn 0.1% • The average interest rate down to 9.1% as of December 2017, as compared to 10.89% as of December 2016
Slide 8: Sustainable Dividend Policy
SUSTAINABLE DIVIDEND POLICY • Dividend policy of LSR Group is developed in accordance with the existing Russian legislation, the company’s charter and internal regulations of LSR Group DIVIDEND POLICY • In 2014 the BoD of LSR Group adopted a new version of the dividend policy • Recommended amount of
Slide 9: Update on Portfolio Valuation
UPDATE ON PORTFOLIO VALUATION
Slide 10: Group Portfolio Amounts to RUB 185 Billion
GROUP PORTFOLIO AMOUNTS TO RUB 185 BILLION VALUE OF OUR LAND BANK INCREASED BY RUB 42 BILLION BREAKDOWN BY GEOGRAPHY X% - market value for assets in key cities1 as % of total 31 Dec 2016 31 Dec 2017 Operating Commercial Operating Russia Germany Commercial offices Majority of increase offices 5.6% 5.
Slide 11: Appendix
APPENDIX
Slide 12: Portfolio Overview
PORTFOLIO OVERVIEW PORTFOLIO BREAKDOWN NSA MV by net sellable area by market value Region % of total % of total (‘000m2) (RUB mn) St. Petersburg and Yekaterinburg Germany Yekaterinburg Germany 5,832 67.8% 109,338 59.0% 3.4% BY REGION Leningrad region 10.0% 0.3% 1.0% Moscow and Moscow region 1,874 21
Slide 13: Building Materials: Financial Results by Product
BUILDING MATERIALS: FINANCIAL RESULTS BY PRODUCT CRUSHED GRANITE (RUB M) REINFORCED CONCRETE (RUB M) BRICKS (RUB M) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Revenue Adjusted EBITDA 3,208 1 3,064 3,132 3,435 1,224 817 3,343 3,135 3,144 3,167 1,061 2,612 2,870 631 878 487 730 569 2015 2016 2017
Slide 14: 2017 Operating Results Highlights
2017 OPERATING RESULTS HIGHLIGHTS • In 2017 we entered into new contracts for the sale of 640 th. sqm (-6% YoY) with a total value of RUB 65.3 bn (-7% YoY) o Average price per sqm was up 14% QoQ and 7% YoY in Q4 2017 o 780 th. sqm launched during the year o In 2017 we completed 909 th. sqm (up 15% Y
Slide 15: Operating Guidance 2018: Real Estate
OPERATING GUIDANCE 2018: REAL ESTATE NEW CONTRACT SALES (TH. SQM) NEW CONTRACT SALES (RUB BN) +31% +35% 840 88.0 640 65.3 2017 2018 2017 2018 NEW LAUNCHES (TH. SQM) COMPLETIONS (TH. SQM) +5% +13% 880 950 909 780 2017 2018 2017 2018 Source: company information 15
Slide 16: Operating Guidance 2018: Building Materials
OPERATING GUIDANCE 2018: BUILDING MATERIALS CRUSHED GRANITE (mn m3) REINFORCED CONCRETE (th. m3) BRICKS (mn units) +14% - +10% 6.8 320 234 234 6.0 290 2017 2018 2017 2018 2017 2018 SAND (mn m3) READY-MIX CONCRETE (th. m3) AERATED CONCRETE (th. m3) +27% -5% -11%1 1,052 1,000 9.6 1,509 7.6 1,350 2017
Slide 17: Key Operating Results
KEY OPERATING RESULTS REAL ESTATE1 3Q 2017 4Q 2017 Change QoQ, % 4Q 2016 Change YoY, % 2016 2017 Change, % New contract sales, th. sqm 167 216 29% 172 26% 681 640 (6%) Completed, th. sqm 38 690 1,716% 514 34% 788 909 15% Real Estate - St. Petersburg New contract sales, th. sqm 110 146 33% 97 50% 386
Slide 18: Key Financials
KEY FINANCIALS 2015 2016 2017 Change, % Revenue, RUB m 91,730 106,524 138,494 30% Adjusted EBITDA, RUB m 23,532 27,750 36,845 33% Adjusted EBITDA, % 25.7% 26.1% 26.6% 2% Operating profit, RUB m 13,763 14,031 22,444 60% Operating profit, % 15.0% 13.2% 16.2% 23% Profit for the year, RUB m 10,646 9,163
Slide 19: Contacts
Contacts For more information please contact: Yuri Ilyin Managing Director Mob.: +7 921 958 23 63 Tel.: +7 (812) 320 56 53 [email protected] You can watch the construction progress of all our projects in a free mobile app: 19