PRESS RELEASE
15 July 2013
St. Petersburg
LSR Group Reports Operating Results for the First Half of 2013
LSR Group (LSE: LSRG; MICEX-RTS: LSRG), one of the leading real estate developers and building materials
producers in Russia, is publishing the operating results for the first half of 2013.
The operating results of our development business in 1H 2013 allow us to reiterate our full year new contract sales
guidance of 570 th m2. We also reiterate our building materials sales guidance for 2013: crushed granite – 6.5 m m3,
sand – 11 m m3, ready-mix concrete – 1.55 m m3, reinforced concrete in St. Petersburg - 390 th m3, cement – 1.6 million
tonnes, bricks – 200 million of units and aerated concrete – 1.1 m m3.
REAL ESTATE DEVELOPMENT
Real estate in St. Petersburg
2Q 2012
2Q 2013
Change, %
1H 2012
1H 2013
Change, %
-
31
9
23
-
-
31
9
23
-
Total
Elite real estate
Mass market real estate
Transferred to customers, th m2
53
14
39
114
15
99
114%
3%
155%
126
39
86
192
30
162
53%
(24%)
88%
Total
Elite real estate
Mass market real estate
20
6
13
45
12
32
126%
89%
144%
58
8
50
94
23
71
63%
195%
43%
Real estate in Moscow
Completed, th m2
New contract sales, th m2
Transferred to customers, th m2
2Q 2012
24
20
7
2Q 2013
21
5
Change, %
9%
(35%)
1H 2012
24
40
7
1H 2013
43
15
Change, %
8%
117%
Real estate in Yekaterinburg
Completed, th m2
New contract sales, th m2
Transferred to customers, th m2
2Q 2012
7
15
16
2Q 2013
10
29
2
Change, %
47%
95%
(88%)
1H 2012
7
33
22
1H 2013
11
47
26
Change, %
58%
45%
19%
2
Completed, th m
Total
Elite real estate
Mass market real estate
New contract sales, th m2
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.
In 1H 2013, in all regions of our operations we entered into new contracts for the sale of 283 th m2 (+43%). The total
value of the contracts was RUB 23.2bn, up 35% against 1H 2012. In 1H 2013, we transferred to our customers 135 th
m2 (+57%) of net sellable area and completed 42 th m2 of net sellable area (+36%).
Real Estate in St. Petersburg
In 1H 2013, in St. Petersburg, we entered into new contracts for the sale of 192 th m2 of net sellable area, up 53%
against 1H 2012. The total value of the contracts was RUB 17.8bn (+38%). In 1H 2013, we transferred to our customers
94 th m2 of net sellable area (+63%) and completed 31 th m2 of net sellable area.
In 1H 2013, in the elite real estate segment, we entered into new contracts for the sale of 30 th m2 of net sellable area (24%). The total value of the contracts was RUB 4.9bn (-20%). In 1H 2013, we transferred to our customers 23 th m2 of
net sellable area (+195%) and completed 9 th m2 of net sellable area in residential house “Kovenky”.
In 1H 2013, in the mass market segment, we entered into new contracts for the sale of 162 th m2, up 88% against 1H
2012. The total value of the contracts was RUB 12.8bn (+91%). In 1H 2013, we transferred to our customers 71 th m2 of
net sellable area (+43%) and completed 23 th m2 of net sellable area in residential complex “Vostok”.
In 1H 2013 we started pre-sales in the following projects: House on Dvoryanskaya with a total area of 6.4 th m2, Europe
city with a total area of 117 th m2, VIVA with a total area of 103 th m2, Kalina-park with a total area of 347 th m2,
Kvartet with a total area of 107 th m2, Novaya Okhta with a total area of 806 th m2 and Sofiya with a total area of 307 th
m2.
Real Estate in Moscow
In 1H 2013, we entered into new contracts with our customers for the sale of 43 th m2 of net sellable area, up 8% on our
sales in 1H 2012. The total value of the signed contracts was RUB 2.6bn (+11%).
In 1H 2013 we transferred to our customers 15 th m2 (+117%). There were no housing completions in 1H 2013 due to
the projects schedule.
During the reported period we started pre-sales of extra 42 th m2 in the first stage of our residential project Novoe
Domodedovo.
Real Estate in Yekaterinburg
In 1H 2013, in Yekaterinburg, we entered into new contracts for the sale of 47 th m2 of net sellable area, up 45% against
1H 2012. The total value of the contracts signed in 1H 2013 increased by 46%, up to RUB 2.9bn.
In 1H 2013, we transferred to customers 26 th m2 (+19%) and completed 11 th m2 of net sellable area (+58%).
In 1H 2013 we started pre-sales in the new low-rise residential neighbourhood “Michurinsky” with a total area of 232 th
m2.
CONSTRUCTION
Construction
2Q 2012
2Q 2013
Change, %
1H 2012
1H 2013
Change, %
111
122
10%
191
223
16%
30
32
7%
73
67
(7%)
26
47
81%
55
81
48%
167
201
20%
319
371
16%
St. Petersburg
transferred to customers
th m2
Moscow
transferred to customers
th m2*
Yekaterinburg
transferred to customers
th m2*
Total
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
Construction
In 1H 2013, our subsidiaries in St. Petersburg, Moscow and Yekaterinburg transferred to our customers 371 th m2 of
panel housing (+16%).
BUILDING MATERIALS
Product
2Q 2012
2Q 2013
Change, %
1H 2012
1H 2013
Change, %
1,614
1,660
3%
2,961
2,908
(2%)
2,889
2,441
(16%)
5,214
3,983
(24%)
Ready-mix concrete, th m
378
380
1%
642
659
3%
Reinforced Concrete, th m3
117
95
(19%)
212
185
(13%)
Cement, th tonnes
297
304
2%
425
461
8%
Bricks, million units
54
52
(3%)
84
94
11%
Aerated concrete, th m3
332
334
1%
522
521
-
Crushed granite, th m3
Sand, th m3
3
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.
Crushed Granite
In 1H 2013, our crushed granite sales totaled 2.9m m3 unchanged as compared to 1H 2012.
In 1H 2013, we supplied our crushed granite to producers of building materials and for construction of several large
infrastructure projects including Western High Speed Diameter and the new terminal of Pulkovo Airport.
Sand
Sand sales in 1H 2013 were 4m m3 (-24%). The decline in sand sales was due to the changed schedules of certain
infrastructure projects.
In 1H 2013, we supplied our sand to a number of infrastructure projects including Western High Speed Diameter and
the new terminal of Pulkovo Airport as well as to large residential projects.
Ready-Mix Concrete
In 1H 2013, ready-mix concrete sales were 659 th m3, up 3% against 1H 2012. It included 438 th m3 sold in St.
Petersburg and 221 th m3 sold in Moscow.
In 1H 2013, in St. Petersburg we supplied our ready-mix concrete to residential, commercial and infrastructure projects.
In Moscow we mainly supplied our ready-mix concrete for residential construction.
Reinforced Concrete
In 1H 2013, we sold 185 th m3 of reinforced concrete items, down 13% against our sales in 1H 2012. It included 148 th
m3 in St. Petersburg, 1 th m3 in Moscow and 35 th m3 in Yekaterinburg.
Cement
In 1H 2013, we sold 461 th tonnes of cement (+8%). We mainly supplied our cement to building materials producers,
including ready-mix concrete and reinforced concrete factories. Bagged cement accounted for about 20% of our total
sales.
Bricks
In 1H 2013 our bricks sales amounted to 94 million units, up 11% on our sales in 1H 2012. It included 70 million units
sold in St. Petersburg (-7%) and 24 million units sold in Moscow (+179%).
Our new brick plant in the Leningrad region, launched in December 2012, produced 51 million units in 1H 2013. In
March 2013, the plant has achieved 100% capacity utilisation ratio for its key product. In June 2013, we launched a new
advanced production line to manufacture clinker ceramic items at the plant. The annual capacity of the new line is up to
25 million clinker ceramic items or up to 40 million regular facing bricks.
Aerated Concrete
Aerated concrete sales amounted to 521 th m3 in 1H 2013, unchanged as compared to 1H 2012. St. Petersburg accounted
for 193 th m3, and 328 th m3 were sold in Ukraine.
Notes to Editors:
OJSC 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 production of building materials, real estate
development and panel construction. LSR Group's main operations are located in St. Petersburg, Moscow and
Yekaterinburg. As of 31 December 2012 (according to Cushman & Wakefield Russia), the net sellable area of the
projects in LSR Group’s real estate portfolio is equal to 8.7m m2 with the market value of RUB 120bn. In 2012, the
sales revenue of LSR Group amounted to RUB 61,122m (IFRS). LSR Group is a public company, with its GDRs traded
on the London Stock Exchange and its ordinary shares traded on MICEX-RTS.
For more information please contact:
LSR Group Press Service
Tel.: +7 812 314 10 44
Fax: +7 812 458 83 72
E-mail: press@lsrgroup.ru
www.lsrgroup.ru