Lsr · RUS:LSRG
Lsr — Investor Presentation (June 2010)
30 slides from Lsr's investor presentation, June 2010
Slide 1: Presentation of LSR Group
Presentation of LSR Group June 2010
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: LSR Group: Business With Strong Growth History
LSR Group: Business With Strong Growth History Sales and EBITDA1 dynamics (RUB bn) Real Estate Division 29% 26% Residential Real Estate Development market leader in St. 22% Petersburg with a growing presence in Moscow/the Moscow 17% region and Urals 49.8 51.0 35.8 Focus on Mass-Market and Elite
Slide 4: Successful SPO in April 2010
Successful SPO in April 2010 Date of SPO 30 April 2010 Number of shares sold 9 366 383 Placing price USD 8.5 per GDR Gross USD 398.1m SPO proceeds Net USD 385.3m Used for debt USD 179,4m repayment Use of SPO proceeds at 1 June 2010 Placed on deposits USD 183,4m Spent on working USD 22.5m capital
Slide 5: Agenda
Agenda 1. Key investment highlights 2. Financial overview 3. LSR Group today Appendix 5
Slide 6: Key Investment Highlights
Key Investment Highlights 1 Attractive market Market leadership 2 Strong long-term fundamentals Leader in Elite and Mass-Market segments in St. Petersburg Recovery in progress Leader in construction of housing Growing Mass-Market segment in St. Petersburg St. Petersburg and Moscow lead t
Slide 7: Long-Term Outlook For Building Materials Is Very Attractive
Long-Term Outlook For Building Materials Is Very Attractive Substantial undersupply of real estate assets Supply-side of building materials industry is constrained − Significant part of the production capacity is obsolete − Large part of the existing equipment park dominated by non-efficient pro
Slide 8: Key Infrastructure Projects Announced In St. Petersburg
Key Infrastructure Projects Announced In St. Petersburg Transportation Expansion of St. Petersburg underground system. 20 new stations and 40km of lines planned by 2020 Orlovsky tunnel to link northern and central parts of St. Petersburg Ground Express to link city centre and suburbs High-Sp
Slide 9: Real Estate Division Market Positions In St. Petersburg In 2009
Real Estate Division Market Positions In St. Petersburg In 2009 Housing Completions Housing Under Construction #1 #1 28% 40% Elite Real Estate 6% 8% #5 #1 Mass-Market Real Estate1 #1 19% Total housing construction2 Source: SPb Realty Note: 1) Excluding state-financed completions 2) Share of LSR’s co
Slide 10: Building Materials Market Positions In St. Petersburg And The Leningrad Region In 2009
Building Materials Market Positions In St. Petersburg And The Leningrad Region In 2009 Building Materials Reinforced Concrete Ready-Mix Concrete Bricks Aerated Concrete Cement #1 #1 #1 #1 17% 56% 61% 78% Aggregates Sand Crushed Granite #1 #1 32% 68% Source: Reshenie Note: Volume terms 10
Slide 11: We Plan To Significantly Increase Volumes Of Our Own Mass-Market Development
We Plan To Significantly Increase Volumes Of Our Own Mass-Market Development In-house Mass-Market Primary housing development BU market Finished apartments Substantial Mass-Market Panel Factories land bank of 6,834 th. sqm Construction Government Government services In 2009 LSR compensated for w
Slide 12: 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) Mass-market 53% Elite Offices 27% Mass-market 0.6% 35% Elite Operating Business class 6% offices 9% Business class 0.3% Gated 6% Offices Held for future Gated commu
Slide 13: New Cement Plant
New Cement Plant Key technical data Plant diagram Production capacity 1.86m tons p.a. Bottom right corner: Kiln, 95m tons of limestone, pre-heater and cooler Confirmed reserves 17m tons of cement clay Technology Dry Bottom centre: Clinker storage silo Construction period 2007 – 2010 Stage of the
Slide 14: New Cement Plant: Construction Site
New Cement Plant: Construction Site April 2010 April 2009 April 2008 14
Slide 15: Agenda
Agenda 1. Key investment highlights 2. Financial overview 3. LSR Group today Appendix 15
Slide 16: Key Financials
Key Financials RUB m 2007 2008 2009 Revenues 35,838 49,813 51,024 EBITDA1 7,897 13,178 14,732 EBITDA margin2 22% 26% 29% Normalised operating profit3 6,343 11,130 12,327 Normalised operating profit % 18% 22% 24% Normalised net profit4 3,072 5,298 6,071 Changes in fair value of investment property 8,
Slide 17: Key Financials
Key Financials Sales (RUB m) EBITDA (RUB m) and EBITDA margin (%) 49,813 51,024 14,732 13,178 35,838 +2% +12% 7,897 29% 26% 22% 2007 2008 2009 2007 2008 2009 Sales revenue and EBITDA breakdown1 2009 Sales revenue breakdown 70% 30% Building Materials, Aggregates Real Estate Development, Construction
Slide 18: Debt Composition As Of 31 May 2010
Debt Composition As Of 31 May 2010 Gross debt by currency1 Gross debt composition² Rouble bonds 10% USD 39% RUB 47% Bank and other loans 90% 89% EUR 14% Source: Company Note: 1) Excluding finance lease liability and other loans 2) Excluding finance lease liability 18
Slide 19: Debt Maturity Profile As Of 31 May 2010
Debt Maturity Profile As Of 31 May 2010 10,369 35,595 Total 2011: RUB 17.0 bn Total 2010: RUB 3.1 bn 5,209 3,785 4,473 RUB m 4,577 4,122 332 2,683¹ 45 Period 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 2012 >2013 Total RUB m 6 2,545 194 3,798 4,332 3,062 1,652 422 766 16,777 US$ m 1 4 4
Slide 20: Bank and Other Loans By Source
Bank and Other Loans By Source 38,324 RUB m 41,366 RUB m 36,317 RUB m 11% 4,073 16% 5,645 VEB 13% 5,332 20% 7,561 18% 7,322 21% 7,624 Rosselkhozbank 7% 2,670 1,069 8% 3,451 3% 3% 1,285 Raiffaisen 10% 3,451 Rouble bonds 12% 4,893 622 8% 3,063 Other banks/ loans 13% 4,944 1% 11% 4,410 12% 4,288 ABN AM
Slide 21: Agenda
Agenda 1. Key investment highlights 2. Financial overview 3. LSR Group today Appendix 21
Slide 22: Group Structure
Group Structure LSR Group Real Estate Development, Construction and Building Materials, Aggregates and Commercial Real Estate Construction Services Real Estate Commercial Construction Building Construction Aggregates Development Real Estate Services Materials Prefabricated Panel Elite Real Estate Ma
Slide 23: Real Estate Development Overview
Real Estate Development Overview Key Brands Real Estate Portfolio Key Financials Business Units 31.12.2009 2008 (RUB m) 2009 (RUB m) NSA (th. sqm) MV (RUB m) Sales EBITDA Sales EBITDA Elite 535 29,920 3,930 1,819 12,951 6,493 (St. Petersburg) Mass-Market and Business 6,353 55,246 5,180 1,588 8,031 2
Slide 24: Panel Construction: Quick and Cost-Efficient Method of Construction of Mass Market Housing
Panel Construction: Quick and Cost-Efficient Method of Construction of Mass Market Housing Key financials Customer Mix (St. Petersburg) RUB m 2008 2009 RUB m 2008 2009 Sales volume (th. sqm) 464 499 LSR Group 27% 36% Sales 13,064 12,756 Government 36% 58% EBITDA 3,121 3,213 3rd Party developers 37%
Slide 25: Aggregates and Services
Building Materials Key Financials Key Business Brands Units 2008 (RUB m) 2009 (RUB m) Sales EBITDA Sales EBITDA Reinforced 6,001 1,484 3,792 117 Concrete Building Materials Ready-Mix Concrete 5,732 612 2,249 76 Economies of scale based on mass Bricks 2,709 1,038 1,331 176 production Aerated 2,590 31
Slide 26: Agenda
Agenda 1. Introduction 2. Key investment highlights 3. Financial overview 4. LSR Group today Appendix 26
Slide 27: Income Statement
Income Statement RUB m FY 2008 FY 2009 Sales revenue 49,813 51,024 Cost of sales (31,807) (32,279) Gross profit 18,006 18,744 Distribution, G&A and other expenses (7,266) (5,968) Changes in fair value of investment property (non-cash) (16,143) (1,752) Write-down of inventory - (529) Operating profit
Slide 28: Balance Sheet
Balance Sheet RUB m 31.12.08 31.12.09 ASSETS Non-current assets Property, plant and equipment 28,314 31,843 Investment property under development 5,488 391 Investment property 1,925 2,305 Intangible assets 4,615 4,472 Other investments 125 49 Deferred tax assets 877 1,166 Trade and other receivables
Slide 29: Cash Flow
Cash Flow RUB m 2008 2009 Net Income (8,007) 4,590 Depreciation & amortization 2,049 2,406 Other, net 19,293 8,240 Operating profit before changes in working capital and provisions 13,335 15,235 Change in Inventories (12,166) (1,671) Change in Trade and Other Receivables (1,810) 4,147 Change in Trad
Slide 30: Contacts
Contacts LSR Group LSR Group 36 Kazanskaya Street, 16 Tverskoy Boulevard, St Petersburg Moscow 190031, Russia 125009, Russia Phone: +7 812 315 44 19 Phone: +7 495 228 34 19 Fax: +7 812 312 13 81 Fax: +7 495 228 34 18 Email: [email protected] Email: [email protected] www.lsrgroup.ru www.lsrgroup.ru 30