Operating Results
FY 2020
January 2021
DISCLAIMER
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This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or an offer or the solicitation of an offer to subscribe for, buy or acquire securities of PJSC LSR Group ("hereinafter - the Company") or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity, nor does it purport to give legal, tax or investment advice. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information in this document has been prepared by the Company solely for use at presentations. This document and its contents may not be distributed, published, reproduced (in whole or in part) by any medium or in any form.
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The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control and we may not achieve or accomplish these expectations, beliefs or projections. In addition, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the achievement of the anticipated levels of revenues, profitability and growth, the timely development and acceptance of new products, the impact of competition and competitive pricing, the effect of changes in applicable law, the ability to obtain necessary regulatory approvals and the ability to fund our future operations and capital needs through borrowing or otherwise, the ability to successfully implement any of our business strategies, the ability to integrate our business and to realize anticipated cost savings and operational benefits from such integration, our expectations about growth in demand for our products and services, the effects of inflation, interest rate and exchange rate fluctuations, and our success in identifying other risk to our business and managing the risk of the aforementioned factors, the condition of the economy and political stability in Russia and the other markets of operations and the impact of general business and global economic conditions.
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12M 2020 GROUP OPERATING HIGHLIGHTS
- NEW CONTRACT
SALES - MORTGAGE SHARE
- AVERAGE PRICE
- AND NEW LAUNCHES
- BUILDING
MATERIALSCOMPLETIONS
New contract sales increased by 12% YoY, amounting to RUB 95 billion or 826 th. sqm, primarily
driven by strong results in St. Petersburg.
Share of mortgage sales totalled 64%, compared to 47% in 12M 2019;
Historically low interest rates and potential prolongation of the mortgage rate subsidy programme until the end of 2021 would likely maintain high share of mortgage sales.
Average price per sqm increased by 14% YoY reaching RUB 129 th.
Completions reached 672 th. sqm of net sellable area;
New 787 th. sqm of net sellable area launched in 12M 2020.
Solid performance of building materials segment, in line with management expectations.
Source: Company information | 3 |
Note: Here and from hereon, the operating results are rounded to whole numbers while the % change calculations are based on the full figures
12M 2020 RESULTS HIGHLIGHTS - REAL ESTATE
NEW CONTRACT SALES (TH. SQM)
817 | 826 |
+1% | |
12M 2019 | 12M 2020 |
AVERAGE PRICE (RUB TH. / SQM)
NEW CONTRACT SALES (RUB BN)
95 | |
+12% | |
84 | |
12M 2019 | 12M 2020 |
COMPLETIONS (TH. SQM)
94
113 114 115
98 100 99
143
127 130
109 108
834 |
672 |
-19% |
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q |
2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 |
12M 2019 | 9M 2020 |
Source: Company information | 4 |
12M 2020 NEW CONTRACT SALES
REGIONAL FIGURES
SAINT PETERSBURG
MOSCOW
URALS
TH. SQM
RUB BN
TH. SQM | RUB BN |
TH. SQM
RUB BN
518 | |
461 | |
+12% | |
12M 2019 | 12M 2020 |
54 | |
43 | |
+27% | |
12M 2019 | 12M 2020 |
241 | |
183 | |
-24% | |
12M 2019 | 12M 2020 |
34 | 32 |
-5% | |
12М 2019 | 12М 2020 |
125 | |
116 | |
+8% | |
12M 2019 | 12M 2020 |
8 | |
7 | |
+13% | |
12M 2019 | 12M 2020 |
Sales in St.Petersburg increased by 27% in rouble terms thanks to:
- Our strong product offering in the mass-market segment and low mortgage rates on the back of government's subsidy programme. New contract sales in sqm in our largest projects Tsvetnoy Gorod and Civilization were up 51% and 41% respectively;
- An increase in average price by 14% compared to 2019 due to higher stage of completion of our projects as well as increase in sales of our business class project Morskaya Naberezhnaya that was launched in 2019.
New contract sales declined in Moscow by 5% in rouble terms due to:
- Our focus on profitability and therefore a planned decline in sales volumes. This was mostly offset by an increase in the average price by 40% thanks to our distinctive product offering;
- The impact of the coronavirus outbreak in the second quarter which resulted in the closure of sales offices and banks in Moscow from mid-April to mid- May.
Sales in Yekaterinburg increased by 13% thanks to our attractive product offering, lower mortgage rates as well as our planned increase in the average price by 10%. Our projects Meridian and Tsvetnoy Bulvar demonstrated sales growth of 59% and 36% respectively in rouble terms, while our project Rassvetny more than tripled its sales.
Source: Company information | 5 |
4Q 2020 NEW CONTRACT SALES BY PROJECT
(by sqm sold1)
SAINT PETERSBURG | MOSCOW | URALS | ||
128,018 sqm | 31,687 sqm | 27,351 sqm | ||
7%
8%
9%40%
14%
22%
Tsvetnoy Gorod 40%
Civilization 22%
Ruchy 14%
Other 9%
Zapovedny Park 8%
Morskaya Naberezhnaya 7%
9%
9%
20%
62%
Zilart 62%
Luchi 20%
Other 9%
Leningradka 58 9%
6%
11%22%
19%
21%
21%
Meridian 22%
Michurinsky 21%
Rassvetny 21%
Tsvetnoy Bulvar 19%
Khrustalnye Klyuchi 11%
Flagman 6%
Note: 1 Respective project % share in sales is calculated using sales data w/o parking sales | 6 |
Source: Company information
12M 2020 BUILDING MATERIALS SALES
CRUSHED GRANITE ('000 m³) | READY-MIX CONCRETE ('000 m³) | BRICKS (mln units) | ||
7 416 | 6 934 |
-7% |
1 142 |
947 |
-17% |
305 | 296 |
-3% |
12M 2019 | 12M 2020 | 12M 2019 |
SAND ('000 m³) | ||
8 240 | ||
7 194 | ||
-13% | ||
12M 2019 | 12M 2020 |
12M 2020 | 12M 2019 | 12M 2020 |
AERATED CONCRETE ('000 m³) | ||
1 814 | ||
1 413 | ||
+28% | ||
12M 2019 | 12M 2020 |
Source: Company information | 7 |
APPENDIX
LSR GROUP
LEADING PLAYER IN RUSSIAN RESIDENTIAL REAL ESTATE
TRUE FEDERAL
PLAYER |
ONE OF THE
ONLY RUSSIAN
DEVELOPERS WITH
SIGNIFICANT
PRESENCE IN KEY
REGIONS
LEADING POSITION
#2 in Russia
#1 in St. Petersburg
#5 in Yekaterinburg
#8 in Moscow
BALANCED CUSTOMER | SCALABLE LAND | SHAREHOLDER |
EXPOSURE | BANK | VALUE CREATION |
PRESENT IN | OVER 7.6 MLN | STRONG |
MASS MARKET, | SQM OF NET | FOCUS ON |
BUSINESS AND | SELLABLE AREA | SHAREHOLDER |
ELITE SEGMENTS | WITH MARKET | RETURNS |
VALUE OF | THROUGH | |
RUB 207 BILLION | DIVIDENDS |
HIGH QUALITY PORTFOLIO | LARGE LAND BANK | STABLE DIVIDENDS FLOW | |||||||||
By value | By area | ||||||||||
0% | 1% | 4% | |||||||||
5 years of | RUB 55 BILLION | ||||||||||
2% 8% | development** | ||||||||||
Distributed in dividends | |||||||||||
43% | 48% | 10 CONSECUTIVE YEARS | |||||||||
35% | |||||||||||
of dividend payments | |||||||||||
47% | |||||||||||
12% | PAYOUT RATIO >70% | ||||||||||
Average payout ratio since 2010 | |||||||||||
Mass market | Elite | Completed | Design | ||||||||
Concept development | Construction | ||||||||||
Business | Operating offices | ||||||||||
Operating offices | |||||||||||
Commercial | |||||||||||
Source: ERZ, Сompany information; portfolio structure per segment as at 31.12.2019 | 9 |
Note: respective rankings on market position are based on m2 under construction as at 01.01.2021 for each city; **Calculated on the basis of Design and Concept stage of land bank (c. 51% of total NSA) and assuming |
construction of 834 th. sqm per annum (result for 2019)
STRONG LEADERSHIP
EXPERIENCED MANAGEMENT AND STRONG CORPORATE GOVERNANCE
KEY MANAGEMENT TEAM MEMBERS | CORPORATE GOVERNANCE STRUCTURE | |||||||||
Igor Levit | ||||||||||
Andrey Molchanov | Evgeny Yatsyshin | Independent | ||||||||
CEO | First Deputy CEO | Deputy CEO | GENERAL MEETING OF SHAREHOLDERS | |||||||
Auditors | ||||||||||
Chairman of the | 22 years at LSR | 22 years at LSR |
Executive Committee | ||
Founder of LSR |
BOARD OF DIRECTORS
Audit
Committee
Strategy,
Investment, IR and
Сapital markets
Committee
Dmitri Kutuzov | Vasily Kostritsa | HR and | ||
Ivan Romanov | ||||
Chief Financial Officer | Deputy CEO | Compensations | ||
Deputy CEO | Committee | |||
Head of Building Materials | ||||
16 years at LSR | 20 years at LSR | EXECUTIVE COMMITEE | Sustainability | |
20 years at LSR | committee | |||
Leonid Sorokko | CEO | |||
Galina Volchetskaya | ||||
Deputy CEO | Executive Director | |||
Head of Construction | ||||
9 years in LSR | ||||
7 years at LSR |
MANAGEMENT
COMPOSITION OF BOARD OF DIRECTORS
Dmitri Gontcharov Chairman of the Board of Directors Chairman of Strategy, Investment, IR and Capital markets Committee
Igor Levit
Member of Strategy, Investment, IR and Capital markets Committee, Chairman of Sustainability Committee
Alexander Prysyazhnyuk INED Chairman of Audit, member of HR and Compensations, member of Sustainability Committees
Alexey Makhnev INED Member of Audit, member of Strategy, Investment, IR and Capital markets Committees
Vitaly Podolsky INED Chairman of HR and Compensations, member of Audit , member of Sustainability Committees
Natalia Nikiforova INED | Evgeny Yatsyshin |
Member of HR and | Member of Strategy, |
Compensations Committee | Investment, IR and Capital |
markets Committee | |
Andrey Molchanov | Egor Molchanov |
CEO | Member of Strategy, Investment, |
Chairman of the | IR and Capital markets |
Executive Committee | Committee |
Founder of LSR |
Source: Company information | 10 |
12M 2020 KEY OPERATING RESULTS
REAL ESTATE1
4Q 2020 | 4Q 2019 | Change % | 12M 2020 | 12M 2019 | Change % | |
New contract sales, th. m2 | 236 | 266 | (11%) | 826 | 817 | 1% |
Completed, th. m2 | 472 | 444 | 6% | 672 | 834 | (19%) |
Real Estate - St. Petersburg | ||||||
New contract sales, th. m2 | 145 | 164 | (12%) | 518 | 461 | 12% |
Completed, th. m2 | 406 | 363 | 12% | 410 | 416 | (1%) |
Real Estate - Moscow | ||||||
New contract sales, th. m2 | 54 | 69 | (22%) | 183 | 241 | (24%) |
Completed, th. m2 | - | - | - | 152 | 286 | (47%) |
Real Estate - Yekaterinburg | ||||||
New contract sales, th. m2 | 37 | 33 | 12% | 125 | 116 | 8% |
Completed, th. m2 | 66 | 80 | (18%) | 110 | 132 | (16%) |
BUILDING MATERIALS1 | ||||||
Product | 4Q 2020 | 4Q 2019 | Change % | 12M 2020 | 12M 2019 | Change % |
Crushed granite, th. m3 | 1,723 | 1,730 | (0.4%) | 6,934 | 7,416 | (7%) |
Sand, th. m3 | 1,692 | 1,776 | (5%) | 7,194 | 8,240 | (13%) |
Ready-mix concrete, th. m3 | 199 | 259 | (23%) | 947 | 1,142 | (17%) |
Bricks, million units | 68 | 65 | 4% | 296 | 305 | (3%) |
Aerated concrete, th. m3 | 408 | 334 | 22% | 1,814 | 1,413 | 28% |
Source: Company information | 11 |
Note: 1 Operating results in these tables are rounded to whole numbers, while the % change calculations are based on the full figures |
KEY 1H 2020 FINANCIAL RESULTS
RUB, mln | 2017 | 2018 | 2019 | 1H 2019 | 1H 2020 | Change,% |
Revenue | 138,494 | 146,376 | 110,438 | 46,608 | 48,101 | 3% |
Adjusted EBITDA | 36,845 | 36,400 | 21,037 | 7,817 | 9,162 | 17% |
Adjusted EBITDA, % | 27% | 25% | 19% | 17 % | 19% | - |
Operating profit, | 22,444 | 24,798 | 16,624 | 5,759 | 6,664 | 16% |
Operating profit, % | 16% | 17% | 15% | 12% | 14% | - |
Profit for the year | 15,871 | 16,230 | 7,469 | 1,864 | 2,573 | 38% |
RUB, mln | 31.12.17 | 31.12.18 | 31.12.19 | 30.06.19 | 30.06.20 | Change,% |
Total debt | 72,786 | 86,088 | 89,619 | 88,036 | 94,189 | 7% |
Net debt | 43,073 | 30,290 | 22,760 | 21,629 | 27,178 | 26% |
Net debt/ EBITDA | 1.17 | 0.83 | 1.08 | 0.62 | 1.21 | - |
Source: Company information | 12 |
CONTACTS
For more information please contact:
Igor Tsoy
Director of Investor Relations and Sustainable Development
Tel.: +7 495 537 8008 (ext. 45882)
E-mail: IR@lsrgroup.ru
You can watch the construction progress of all our projects in a free mobile app:
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OJSC LSR Group published this content on 25 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2021 09:29:04 UTC