Lsr · RUS:LSRG
Lsr — H1 2012 Earnings Presentation
46 slides from Lsr's earnings presentation, 2012
Slide 1: LSR Group
< 2 ~ iy) c—4 ra @ 2) o = a — ° ~ nn o > & LSR Group
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: 1. 1H 2012 Operating and financial results
1. 1H 2012 Operating and financial results 3
Slide 4: Key financials
Key financials Revenues 22,964 22,681 EBITDA 3,834 4,666 EBITDA margin 17% 21% Operating profit 2,685 2,306 Operating profit margin 12% 10% Reported net profit 706 257 Normalised operating profit 2,685 3,450 Normalised operating profit margin 12% d net profit 706 3,328 N Li Gross cash flow Operating
Slide 5: Key financials
Key financials Sales (RUB m) EBITDA (RUB m) and EBITDA margin (%) Change -1% 22,964 —————_-» 22,681 Change +22% _ 4,666 3,834 21% 17% ' 1H 2011 1H 2012 1H 2011 1H 2012 Sales revenue and EBITDA breakdown? 1H 2012 Sales revenue breakdown Real Estate Development Construction Building Materials and Aggr
Slide 6: Real estate development results
Change -54% 2,089 Sales (RUB m) E> Real estate development 970 Change -24% ™ 3,539 4,655 Change +5% 504. ———> 932 Change +3% 1073 ———® 1110 1H 2011 Change -49% 1H 2012 _~ 1H 2011 1H 2012 Change -52% 978 NN EBITDA (RUB m) and 38% aos 468 EBITDA margin (%) | a 1H 2011 1H 2012 1H 2011 1H 2012 _— a Real
Slide 7: Real estate development: sales in St. Petersburg
Real estate development: sales in St. Petersburg New contract sales in mass market segment (excluding governmental contracts), ‘000 m2 2011/2010: +95% 1H 2012/ 1H 2011: +43% 1Q 2Q 3Q 4Q =1Q 2Q 30 4Q— 1Q_ 2Q 3Q 4Q 1Q 2Q 2009 2010 2011 2012 New contract sales in elite segment, ‘000 m2 2011/2010: +34%
Slide 8: New contract sales in Moscow and Urals
New contract sales in Moscow, ‘000 m2 2011/2010: +813% 1H 2012/ 1H 2011: +375% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2a 2010 2011 2012 New contract sales in Urals, ‘O00 m2 2011/2010: +125% 1H 2012/ 1H 2011: +25% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2010 2011 2012
Slide 9: Projects launches planned in 2012
Projects launches planned in 2012 Net sellable area (m2) | Start of Construction Start of pre-sales Pulkovskiy Posad 9,225 102011 4Q2012 Sofiya 40,000 1Q2013 4Q.2012 Uyzhnaya Aquatoria 60,690 102011 4Q.2012 Marshala Blukhera 55,000 102012 4Q2012 Vostok 51,368 3Q2009 4Q2012 Moskovskoe shosse 94,000 4
Slide 10: St. Petersburg project map
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Slide 11: LSR project map
LSR project map St. Petersburg Availableforsale © Future projects e Completed projects @ Z ; RARE 11
Slide 12: LSR real estate projects pipeline — Moscow and Yekaterinburg
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Slide 13: LSR project map
LSR project map Moscow and Moscow Region Yekaterinburg 13
Slide 14: Construction
Construction Change +25% Change -43% Change +42% 7,902, ” 2,263 1,070 6316 —* _— 753 Sales (RUB m) [ [ 1,293 7 [ 1H 2011 1H 2012 1H 2011 1H 2012 1H 2011 1H 2012 Change -2% Change -57% 873 NS 302 iB 68 EBITDA (RUB m) and 257 ™N i 14% 13% 129 EBITDA margin (%) F ‘ tH 2012 10% (6) 1H 2011 1H 2012 1H 20
Slide 15: Building materials: ready-mix concrete and reinforced concrete
Change +112% 1753 Change +27% ‘Change +19% 1,470 Change +45% 1144 . 737 4 02 ——” a sue Sales (RUB m) 826 1238 E 1H 2011, 1H 2012 4H 2011 4H 2012 1H 2011 1H 2012 1H 2011 1H 2012 Change +500% gga Change -13% Change al 331 Fte 596 _ iad 1H 2012 EBITDA (RUB m) and oa cel 521 _ . 1a 23% EBITDA margin (%)
Slide 16: Building materials: cement, bricks, aerated concrete
930 ——_» 925 Change -2% 633 ————> 618 Change +188% Building materials: Cement, Bricks, Aerated Concrete Change +50% a 1,130 69 / 755 Sales (RUB m) 4 E 1H 2011 1H 2012 4H 2011 1H 2012 1H 2011 1H 2012 4H 2011 1H 2012 284 Change +657% Change +123% 238 145 130) EBITDA (RUB m) and 127 . 26% EBITDA margin
Slide 17: Production volumes of building materials
500 400 300 200 100 Bricks, million nf Crushed granite, million m3 2011/2010: +37% 1H 2012/ 1H 2011: +57% 1Q 2Q_3Q 4Q 2010 10 20.30 4Q 2011 1Q2Q 2012 1Q 2 30 4Q 2009 Ready-mix concrete, ‘000 m3 2011/2010: +23% 1H 2012/ 1H 2011: +16% 426 387 376 1Q 2Q 3Q 4Q 2009 1Q 2Q 3Q 4Q 2010 1Q 2Q 3Q 4Q 2011 1Q_2
Slide 18: Debt maturity profile as of June 2012
Debt maturity profile as of 30 June 2012 Total debt: RUB 39,156m* 15,656 11,758 7,320 515 3,907 = 2 490 * > = RUBm 25 490 10,214 6,435 3,022 12,557 32,743 UsDm - - 28 27 27 94 176 EUR m - - 15 - - - 15 Total RUB m 25 490 11,758 7,320 3,907 15,656 39,156 18 Note: 1) excluding finance lease liability
Slide 19: Gross debt by source as of June 2012
Gross debt by source as of 30 June 201 Interest Rate (avg) 9,76% p.a. RUB 31,201m VEB 22% Rosselkhozbank 25% Rouble bonds 21% 6,501 Other banks 2% Raiffeisen 2% VIB 16% Sberbank 13% Interest RUB 38,662m 24% VEB 1% Other banks 2% Raiffeisen 13% VIB 18% Sberbank 8.65% p.a. ———> Intere: 17% Rosselkhozb
Slide 20: Debt composition as of June 2012
Debt composition as of 30 June 2012 Gross debt by currency Gross debt composition USD Rouble bonds 15% 25% EUR 2% Bank loans 75% Source: Company Note: 1) excluding finance lease liability and other loans 20
Slide 21: Real estate portfolio by region
Real estate portfolio by region Breakdown of portfolio by region (Net Sellable Area) Moscow and Yekaterinburg Moscow region _5% 10% St. Petersburg and Leningrad LsR Group Breakdown of portfolio by region (Market Value) Yekaterinburg Moscow and 4% Moscow region 21% St. Petersburg and Leningrad region
Slide 22: Real estate portfolio by segment
Real estate portfolio by segment Breakdown of portfolio by segment (Net Sellable Area) Elite %6 Held for future development 47% Operating offices 0.3% Mass-market Business 45% Class 4% Offices 1% LsR Group Breakdown of portfolio by segment (Market Value) Elite 18% Held for future Mass-market develop
Slide 23: Real estate portfolio by stage of development
LsR Group 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) Construction 9% Concept . Development Construction 25% 23% Designing 36% Completed 7% Designing Concept 45% Develop
Slide 24: 2. Market update
2. Market update 24
Slide 25: Sales of new apartments
Sales of new apartments Sales of new apartments in St. Petersburg —_—T—>7 2,064 2,054 1,459 670 620 600 580 620 600 847 a 448 486 446 431 382 408 325 a4 | ray 1a/os 20/08 30/0 4EYOB 1E/0B-2a/09-Ba/09 40/09 IE/I0_2G/10 3Q/10 4Q/10 afl 2a/1l 3Q/11 4C/LL 10/12 “000 m2 Source: SPb Realty 25
Slide 26: New residential real estate price development
New residential real estate price development in St. Petersburg, Moscow and Yekaterinburg 250 St. Petersburg —Elite Mass-Market 228 200 a 150 2 ra 8 9 100 57 68 81 50 39 0 o+ 2002 2003 2004 2005 2006 2007 2008 2009 2010 Jun 2012 Source: $P Reaity Moscow Yekaterinburg a i) 65 z — a IRN Index’ es 3 20
Slide 27: Supply of new apartments
Supply of new apartments Supply of new apartments in St. Petersburg 30% J 76 oar 757 82% 4 584 551 2 520 | 473 466 8 -68% 421 J 383 | lili il 237 | 10/08 20/08 30/08 40/08 20/09 30/09 40/05 20/10 30/10 40/10 10/11 20/11 30/11 40/11 10/12 20/12 2,580 834 1,520 1,981 Source: SPb Realty Note: Supply of
Slide 28: Mortgage lending in Russia
LsR Group Mortgage lending in Russia Average mortgage rates 15.00% 14.6% 250 | Milt number of loans, 250.5 loans in RUB 00 208 14.00% 2 loans in foreign currency 200 | —==bn RUB iam 13.00% ” 169 12.4% 12.2% 42 191.9% 12.0%. 12.00% 12.1% 11.00% 10.00% 9.6% 9.00% aos 2a/9 sa/os safe ra/ia 2a/10 3a/ia
Slide 29: Building materials market positions
Building materials market positions in St. Petersburg and the Leningrad region in 2011 Building Materials Reinforced Concrete Ready-Mix Concrete Bricks Aerated Concrete Cement’ Net Noi wo i Ss ; Aggregates Sand Crushed Granite Ned Ned ‘Source: Reshenie Note: Valumeterms 1) As of 30 June 2012, Source
Slide 30: Agenda
Slide 31: LSR Group overview
MEE Revenue NNN EBITDA Source: Audited consolidated IFRS financial statements 2010 EBITDA margin, % 2011 Real Estate Division Residential Real Estate Development market leader in St. Petersburg with a growing presence in Moscow/the Moscow region and Urals Focus on Mass-Market and Elite segments of r
Slide 32: Building Materials
LsR Group Building Materials LSR Group is Ne 1 In Russia and Ukraine — in production of aerated concrete In Russia — in production of ready-mixed concrete and extraction of sand In Northwest Russia — in production of reinforced concrete and extraction of crushed granite St. Petersburg Moscow Yekater
Slide 33: Development
Development LSR Group is one of the leading Russian real estate companies. The portfolio of real estate development projects of LSR Group includes 8.4 million square metres of net sellable area and RUB 120.2 billion of market value of residential and commercial properties.* St. Petersburg Moscow Yek
Slide 34: Prefab housing construction and reinforced concrete
LsR Group ‘St. Petersburg Moscow Yekatel jurg Prefab housing . . . . Capacity: 400,000 m2 Capacity: 200,000 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; r
Slide 35: Housing construction technologies
Housing construction technologies Traditional panel LSR prefab technology Short construction period Short construction period Industrial production Industrial production Standardized housing, individual : Flexibility of architectural and facade solutions projects limited Seamless technology allows i
Slide 36: Group structure
oup structure LSR Group Real Estate. Real Estate. Aggregates & Ready-mix Real Estate. Moscow North-West concrete Urals Construction. Construction. Cement Construction. Urals Moscow North-West Ready-mix concrete Project management and engineering services Bricks & Aerated concrete Bricks Reinforced C
Slide 37: Robust corporate governance — Board of Directors
LsR Group Robust corporate governance — Board of Directors Igor Levit Chairman Elena Tumanova Mikhail Romanov Dmitri Gontcharov Olga Sheikina Managing director Managing director of Head of LSR Group of new projects LSR Europe GmbH Moscow office Executive directors Managing director b Sergey Skatersc
Slide 38: Executive Committee: Experienced and committed management
Years with LSR Years In the industry Executive Committee: Solid experience within the industry | Managing Director Elena Tumanova 38 19 2 19 ce Real Estate Construction North-West Dmitry Khodkevich Vladimir Chernyaev 19 34 13 10 Dmitry Kutuzov Experienced And Committed Management clo 10 lo Aggregate
Slide 39: Key Investment Highlights
Key Investment Highlights \ @) Attractive market \ Strong long-term fundamentals Growing Mass-Market segment St. Petersburg and Moscow - leading real estate markets in Russia Market leadership Q) Leader in Elite and Mass-Market segments in St. Petersburg Leader in construction of housing in St. Pete
Slide 40: New cement plant
New cement plan Production capacity Confirmed reserves Technology Stage of the project Supplier of equipment Building contractor Total investment Comments Key technical data 1.86m tons p.a. 95m tons of limestone, 17m tons of cement clay Dry Launched in 2011 FLSmidth Hefei Cement Research & Design In
Slide 41: New Brick Plant
LsR Group New Brick Plant Key technical data Plant today Production capacity Total 220m nf Construction brick line 120m nf & t 1* phase special ceramic goods line 25m nf 2"4 phase Facing brick line 75m nf ™ . Construction period 2007 - 2013 Construction: 85% Technology: 50% Clay preparation line — H
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Slide 43: Income Statement
Income Statement FY 2010 FY 2011 1H 2011 1H 2012 Cost of sales (36,875) (37,247) (17,173) (16,195) 13,074 14,662 5,791 6,486 “Changes i in fair value of investment property (non-cash) Write-down of inventory Net financial expenses (3,775) (4,121) (1,375) (1,845) Income tax expense / (benefit) (754)
Slide 44: Balance Sheet
ween ern athe eS EES cc ensseneneneninnesense Breen en A Defered tax asses “Wade and other receivab Asa “Restricted cash 930 “re an thes eeiabes ~aso80 24,862 ‘Gahan casnequbaens ‘Share capital. loansand borrowings Income tax payable “wade and other payables Liabites classified 2s hel for sale . 44
Slide 45: Cash Flow
Cash Flow 1H 2011 1H 2012 Net Income Depreciation & amortization Change in Trade and Other Payables Increase/ decrease in provisions “_ Disposals __ Debt issued (repaid) (1,942) Proceeds from SPO (1,611) Exchange rate fluctuations 4s
Slide 46: LSR Group Investor Relations
LSR Group Investor Relations Yuri Ilyin 36 Kazanskaya Street, St Petersburg 190031, Russia Phone: +7 812 326 9329 Fax: +7812 312 8565 Mob: +7921 906 7777 Email: [email protected]