Lsr · RUS:LSRG
Lsr — FY2018 Earnings Presentation
22 slides from Lsr's earnings presentation, March 2019
Slide 1: FY 2018 Financial Results
FY 2018 Financial Results March 2019
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: FY 2018 Highlights
FY 2018 Highlights STRONG CASH POSITION RECORD HIGH NEW CONTRACT SALES 1 3 Operating cash flow of RUB 30.3 bn, a nine-fold increase YoY A new contract sales high of 1,002 th. m² up, 44% YoY 4 Cash balance increased by 88% year-on-year to RUB 55,798 bn Total value of RUB 93 bn , up 38% YoY
Slide 4: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA SOLID TOP LINE PERFORMANCE AND ADJUSTED EBITDA IN LINE WITH 2017 Revenue Adjusted EBITDA 146,376 RUB m RUB m 36 845 36 400 138 494 6% 1% Adj. EBITDA margin 27% 25% 2017 2018 2017 2018 A 6% YoY increase in revenue was primarily driven by A slight YoY decrease in adjusted E
Slide 5: Profit for the Year and EPS
Profit for the Year and EPS PROFIT FOR THE YEAR AND EPS REMAINED ON THE 2017 LEVEL Profit for the Year EPS RUB m RUB 15 871 16 230 159.33 2% 154.51 3% 2017 2018 2017 2018 Profit for the Year up 2% YoY Stable earnings per share in line with 2017 Source: Company data 5
Slide 6: Real Estate Development
Real Estate Development SUSTAINED INCREASE IN PROFITABILITY Revenue Adjusted EBITDA RUB m RUB m 116 592 35 553 111 216 5% 32 297 10% Adj. EBITDA margin 29% 30% 2017 2018 2017 2018 Increase in the segment’s revenue and Adjusted EBITDA was Adjusted EBITDA margin expanded to 30% reflecting primarily dr
Slide 7: Real Estate Development: Breakdown by Region
Real Estate Development: Breakdown by Region STRONG PERFORMANCE ACROSS ALL REGIONS St Petersburg Moscow Urals RUB m RUB m RUB m 71 559 68 639 38 397 9 218 8 463 31 101 22 374 12 699 20 771 8 195 2 140 1 800 2017 2018 2017 2018 2017 2018 Revenue Adj. EBITDA Revenue Adj. EBITDA Revenue Adj. EBITDA Sou
Slide 8: Building Materials
Building Materials CONTINUED REVENUE GROWTH Revenue Adjusted EBITDA RUB m RUB m 19 144 6 571 17 362 10% 39% 4 000 Adj. EBITDA margin 38% 21% 2017 2018 2017 2018 A 10% YoY revenue growth was primarily driven by strong sales Lower adjusted EBITDA reflects the one-off profit recognition in of crushed g
Slide 9: Operating Expenses
Operating Expenses STRICT APPROACH TO COST CONTROL Distribution expenses Administrative expenses RUB m 7 211 9 392 RUB m 8 910 27% 5% 5 671 As % of revenue 4% 5% As % of revenue 6% 6% 2017 2018 2017 2018 Higher distribution expenses were attributable mainly to an An increase in administrative expens
Slide 10: Further Strengthened Balance Sheet
Further Strengthened Balance Sheet SIGNIFICANT NET DEBT REDUCTION DRIVEN BY STRONG CASH FLOW GENERATION • Total debt of RUB 86,088 mln as of 31 Dec 2018 Strong liquidity position • Significant decrease of net debt level, down 30% YoY, to RUB 30,290 mln RUB m 86 088 72 786 (2017: RUB 43,073 mln) • Av
Slide 11: Shareholder Return
Shareholder Return SUSTAINABLE DIVIDEND POLICY Total dividends paid Dividend per share RUB m RUB 8 000 8 000 8 000 8 000 78 78 78 78 4 100 40 2 000 2 000 20 20 1 500 15 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 LSR Group paid out a total of RUB 8.0 bn cash divid
Slide 12: Group Portfolio of RUB 186 bn
Group Portfolio of RUB 186 bn 10% YOY INCREASE IN ASSESSED VALUE PER SQM BREAKDOWN BY GEOGRAPHY market value for assets in key cities as % total 31 Dec 2017 31 Dec 2018 Operating RUSSIA GERMANY Operating Commercial offices Commercial offices 5.6% 2.6% Mass 10.1% 3.0% Mass Elite Market Market 40.9% E
Slide 13: Portfolio overview
Portfolio overview BY MARKET SEGMENT NSA (TH. M2) % OF TOTAL MARKET VALUE, RUB MLN % OF TOTAL Mass market residential 5 413 69.3% 66 729 36.0% Elite class residential 210 2.7% 21 835 11.8% Business class residential 2 079 26.6% 72 620 39.1% Operating offices 25 0.3% 5 605 3.0% Commercial 88 1.1% 18
Slide 14: Appendix
sad Appendix
Slide 15: LSR Group: leading Russia's residential real estate for 25 years
LSR Group: leading Russia’s residential real estate for 25 years A LEADING PLAYER IN BALANCED CUSTOMER SCALABLE LAND SHAREHOLDER KEY STRATEGIC MARKETS EXPOSURE BANK VALUE CREATION 1 ONE OF THE 2 PRESENCE IN 3 7.8 MILLION m2 4 STRONG ONLY RUSSIAN THE MASS OF NET SELLABLE FOCUS ON DEVELOPERS WITH MARK
Slide 16: Selected projects: ZILART
Selected projects: ZILART FEBRUARY 2019 SEPTEMBER 2017 Total NSA Unsold NSA Open Market Value MOSCOW 1,010K m2 828K m2 RUB 34,928 M Source: Knight Frank report as of 31. December 2018 16
Slide 17: Selected projects: Luchi
Selected projects: Luchi FEBRUARY 2019 JANUARY 2017 Total NSA Unsold NSA Open Market Value MOSCOW 542K m2 236K m2 RUB 10,091 M Source: Knight Frank report as of 31. December 2018 17
Slide 18: Selected projects: Novaya Okhta
Selected projects: Novaya Okhta FEBRUARY 2019 NOVEMBER 2017 Total NSA Unsold NSA Open Market Value ST. PETERSBURG 765K m2 117K m2 RUB 4,428M Source: Knight Frank report as of 31. December 2018 18
Slide 19: Selected projects: Tsvetnoy Gorod
Selected projects: Tsvetnoy Gorod FEBRUARY 2019 NOVEMBER 2017 Total NSA Unsold NSA Open Market Value ST. PETERSBURG 1,037K m2 877K m2 RUB 9,114 M Source: Knight Frank report as of 31. December 2018 19
Slide 20: Selected projects: Michurinsky
Selected projects: Michurinsky FEBRUARY 2019 MARCH 2017 Total NSA Unsold NSA Open Market Value YEKATERINBURG 271K m2 88K m2 RUB 1,526 M Source: Knight Frank report as of 31. December 2018 20
Slide 21: Key Operating Results
Key Operating Results REAL ESTATE1 4Q 2017 4Q 2018 Change % 4Q 2018 2017 2018 Change, % 2018 ADJUSTED ADJUSTED New contract sales, th. m2 216 300 39% 319 640 920 44% 1 002 Completed, th. m2 690 739 7% 818 909 888 (2%) 1 009 Real Estate - St. Petersburg New contract sales, th. m2 146 193 32% 200 407
Slide 22: Contacts
Contacts For more information please contact: Igor Tsoy Director of Investor Relations and Sustainable Development E-mail: [email protected] 22