LSR Group Reports Operating Results for the First Half of 2016

Transcription

1 14 July 2016 PRESS RELEASE St. Petersburg LSR Group Reports Operating Results for the First Half of 2016 LSR Group (LSE: LSRG; MOEX: LSRG), one of the leading real estate developers and building materials producers in Russia, is publishing the operating results for the first half of REAL ESTATE DEVELOPMENT Total 2Q Q 2016 Change, % 1H H 2016 Change, % New contract sales, th m % % New contract sales, RUB bn 11,1 16,7 51% 21,5 37,8 76% Completions, th m % % Deliveries, th m % % St. Petersburg New contract sales, th m % % Elite real estate (10%) % Mass market real estate % % New contract sales, RUB bn 7,6 7,8 3% 14,2 19,3 36% Elite real estate 2,6 1,8 (30%) 4,5 4,4 (2%) Mass market real estate 5,0 6,0 20% 9,7 14,8 54% Completions, th m % % Elite real estate (41%) (41%) Mass market real estate % % Deliveries, th m % % Elite real estate (60%) (64%) Mass market real estate % % Moscow New contract sales, th m % % New contract sales, RUB bn 2,3 7,9 248% 4,9 16,4 235% Completions, th m % % Deliveries, th m % % Yekaterinburg New contract sales, th m (17%) (14%) New contract sales, RUB bn 1,2 1,0 (18%) 2,5 2,1 (13%) Completions, th m % % Deliveries, th m % % Notes: The operating results in this table, except for New contract sales, RUB bn are rounded to whole numbers in thousands square meters, while all the calculations are based on the full figures. In 2Q 2016, in all regions of our operations we entered into new contracts for the sale of 153 th m 2 (+32% y/y). The main drivers of the increase were expansion of Moscow presence and new launches. The total value of the contracts for the sale of apartments and other premises was RUB 16.7 bn, up 51% against 2Q In 2Q 2016, we completed 202 th m 2 of net sellable area (+55% y/y). The deliveries to be recognised in the company s real estate development revenue for 2Q 2016 amounted to 207 th m 2 (+64% y/y), including the net sellable area completed within the reported period and 1

2 pre-sold/sold either within the reported period or in previous years along with the net sellable area completed in previous years but sold within the reported period. In 1H 2016, we entered into new contracts for the sale of 366 th m 2 (+60% y/y). One of the main factors of the solid performance was the favorable base effect of 1Q 2015 sales dynamics. The total value of the contracts for the sale of apartments and other premises was RUB 37.8 bn, up 76% against 1H In 1H 2016, we completed 206 th m 2 of net sellable area (+58% y/y). The deliveries in 1H 2016 amounted to 228 th m 2 (+69% y/y). Real Estate in St. Petersburg In 2Q 2016, in St. Petersburg in total we entered into new contracts for the sale of 81 th m 2 of net sellable area, up 21% against 1Q The total value of the contracts was RUB 7.8 bn (+3% y/y). In 2Q 2016, we completed 127 th m 2 of net sellable area (+18% y/y). In the elite segment, we entered into new contracts for the sale of 10 th m 2 of net sellable area (-10% y/y). The total value of the contracts was RUB 1.8 bn (-30% y/y). We completed 17 th m 2 of net sellable area (-41% y/y) in Smolny Park project. In the mass market segment, we entered into new contracts for the sale of 71 th m 2, up 27% against 2Q The total value of the contracts was RUB 6,0 bn (+20% y/y). We completed 110 th m 2 of net sellable area (+39% y/y) in Sophia, Kalina-Park, and Quartet projects. In 1H 2016, in St. Petersburg in total we entered into new contracts for the sale of 211 th m 2 of net sellable area, up 65% against 1H The total value of the contracts was RUB 19.3 bn (+36%). In the elite segment, we entered into new contracts for the sale of 27 th m 2 of net sellable area (+38% y/y). The total value of the contracts was RUB 4.4 bn (-2% y/y). In the mass market segment, we entered into new contracts for the sale of 185 th m 2, up 70% against 1H The total value of the contracts was RUB 14.8 bn (+54% y/y). Real Estate in Moscow In 2Q 2016, in Moscow we entered into new contracts for the sale of 55 th m 2 of net sellable area, up 93% on our sales in 2Q The total value of the signed contracts was RUB 7.9 bn (+248% y/y). In 2Q 2016, we completed 56 th m 2 of net sellable area (+252% y/y) in New Domodedovo project. In 1H 2016, in Moscow we entered into new contracts for the sale of 119 th m 2 of net sellable area, up 104% on our sales in 1H The total value of the signed contracts was RUB 16.4bn (+235% y/y). The main reason behind the strong growth in 1H and 2Q was the launch of sales in ZILART project in September 2015 and Luchi project in February Real Estate in Yekaterinburg In 2Q 2016, in Yekaterinburg we entered into new contracts for the sale of 17 th m 2 of net sellable area, down 17% against 2Q The total value of the contracts signed in 2Q 2016 decreased by 18% y/y, down to RUB 1,0 bn. In 2Q 2016, we completed 19 th m 2 of net sellable area (+206% y/y) in Michurinsky and Rassventiy projects. In 1H 2016, in Yekaterinburg we entered into new contracts for the sale of 36 th m 2 of net sellable area, down 14% against 1H The total value of the contracts signed in 1H 2016 decreased by 13%, down to RUB 2.1 bn. 2

3 CONSTRUCTION 2Q Q 2016 Change, % 1H H 2016 Change, % Construction 2 transferred to customers th m % % St. Petersburg % % Moscow* % (31%) Yekaterinburg* % % Our subsidiaries in St. Petersburg, Moscow and Yekaterinburg in 2Q 2016 and 1H 2016 transferred to the customers 285 th m 2 (+21% y/y) and 484 th m 2 (+5% y/y) of panel housing, respectively. Notes: The operating results in this table are rounded to whole numbers in thousands square meters, while all the calculations are based on the full figures. *Sales figures in Yekaterinburg and Moscow include both transfer of completed panel housing to the customers and sales of reinforced concrete for panel construction 3

4 BUILDING MATERIALS Product 2Q Q 2016 Change, % 1H H 2016 Change, % Crushed granite, th m % % Sand, th m % % Ready-mix concrete, th m (24%) (26%) Reinforced concrete, th m (11%) (6%) Bricks, million units (14%) (15%) Aerated concrete, th m % % Crushed Granite and Sand In 2Q 2016, our crushed granite sales were 1.8 m m 3 up 25% against 2Q 2015, while sand sales were 2.5 m m 3 for the same period (+13% y/y). The positive dynamics were driven by M-11 highway construction contracts. In 1H 2016, our crushed granite sales were 2.8m m 3 up 16% against 1H 2015, while sand sales were 4.4m m 3 for the same period (+7% y/y). Ready-Mix Concrete and Reinforced Concrete In 2Q 2016, ready-mix concrete sales were 228 th m 3, down 24% against 2Q 2015, and we sold 70 th m 3 of reinforced concrete items, down 11% against our sales in 2Q The sales drop was primarily caused by (1) weaker demand from construction companies, suspending or cancelling new projects and (2) intensifying competition in the ready-mix concrete market. In 1H 2016, ready-mix concrete sales were 391 th m 3, down 26% against 1H 2015, and we sold 124 th m 3 of reinforced concrete items, down 6% against our sales in 1H Bricks and Aerated Concrete In 2Q 2016, our bricks sales amounted to 84 million units, down 14% on our sales in 1Q In 1H 2016, our bricks sales amounted to 149 million units, down 15% against our sales in 1H The brick sales drop was driven by a combination of factors such as new transportation regulations and unfavourable weather conditions that both limited the volume of delivered bricks; slowdown of construction among selected buyers, and the high base effect of 1H Aerated concrete sales amounted to 379 th m 3 in 2Q 2016 (+17% y/y) and 640 th m 3 in 1H 2016 (+9% y/y). Notes: The operating results in this table are rounded to whole numbers, while all the calculations are based on the full figures. 4

5 Notes to Editors: PJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are real estate development, prefab construction and production of building materials. LSR Group's main operations are located in St. Petersburg, Moscow and Yekaterinburg. As of December 31, 2015 (according to Knight Frank), the net sellable area of the projects in LSR Group s real estate portfolio is equal to 9.3m m 2 with the market value of RUB 136bn. In 2015, the sales revenue of LSR Group amounted to RUB 86,830m (IFRS). LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MOEX. For more information please contact: LSR Group Press Service Tel.: Fax: press@lsrgroup.ru 5