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INVESTO INVESTOR R PRE PRESENT SENTATIO TION MOSCOW EXCHANGE FORUM April 2019 DISCLAI DISCLAIMER MER By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to the bound by the following


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SLIDE 1

INVESTO INVESTOR R PRE PRESENT SENTATIO TION

MOSCOW EXCHANGE FORUM April 2019

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SLIDE 2

DISCLAI DISCLAIMER MER

2

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 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. The information in the presentation/this document does not purport to be comprehensive. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. None of the Company nor any of its shareholders, directors, officers or employees nor any

  • ther person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. The information set out

herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. The information communicated in this document contains certain statements that are or may be forward-looking. These statements typically contain the words «anticipate», «believe», «intend», «estimate», «expect», «will» and words of similar meaning. By their nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We assume no obligations to update amend or revise the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. There maybe additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. 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

  • therwise, 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

  • ur 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. The foregoing assumptions and qualifications apply in particular (but are in no way limited to) slides 19 and 20 of this presentation, which present forward-looking data with respect to (i) the real estate business (including with respect to projected contract sales, completions and new launches in 2018) and (ii) the building materials business (including with respect to projected sales of crushed granite, reinforced concrete, bricks, sand, ready-mix concrete and aerated concrete). Under no circumstances shall this document constitute an offer to sell or a solicitation to buy securities in any jurisdiction, including the United States of America, Australia, Canada, Japan, South Africa, and nothing in this document should be construed as a recommendation or advice to any person to purchase any securities. The distribution of this presentation in some jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions.

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LSR LSR GR GROUP OUP – LEADIN LEADING G PLA PLAYER YER IN IN RUSSIAN USSIAN RESIDEN RESIDENTIAL TIAL REAL REAL EST ESTATE TE

TRUE FEDERAL PLAYER BALANCED CUSTOMER EXPOSURE SCALABLE LAND BANK SHAREHOLDER VALUE CREATION

#1 in Yekaterinburg

RUB 36 BILLION

Distributed in dividends

  • ver the last 5 years

8 YEARS IN A ROW

Of dividend payments supported by well-invested cash generative building materials business

PAYOUT RATIO >80%

Average payout ratio since 2010

#3 in Moscow

ONE OF THE ONLY RUSSIAN DEVELOPERS WITH SIGNIFICANT PRESENCE IN KEY REGIONS OVER 7.8 MLN SQM OF NET SELLABLE AREA WITH MARKET VALUE OF RUB 186 BN STRONG FOCUS ON SHAREHOLDER RETURNS THROUGH DIVIDENDS

#1 in St. Petersburg

LEADING POSITION

PRESENT IN MASS MARKET, BUSINESS AND ELITE SEGMENTS

1 2 3 4

Source: Company information; portfolio structure per segment as of 31.12.2018 Note: respective rankings on market position are based on m2 under construction as of 01.01.2019 for each city; ERZ 1 Calculated on the basis of Design and Concept stage of land bank (c. 51% of total NSA) and assuming construction of 888 th. sqm per annum (result for 2018)

DIVIDEND TRACK RECORD

PRESENT IN MASS MARKET, BUSINESS AND ELITE SEGMENTS

LARGE LAND BANK

Design & concept stage 51% Construction stage 47% Enough for 5 years of development1

By area

HIGH QUALITY PORTFOLIO

Operating offices 0.3% Completed 1% Moscow 42.6%

  • St. Petersburg

51.1% Other 2.1%

By value

Yekaterinburg 4.2% Elite 11.8% Business 39.1% Other 13.1% Mass market 36.0%

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KEY EY DE DEVE VELOPMEN PMENTS TS IN IN 201 2018

Supportive market backdrop

  • Strong momentum on mortgage market
  • Moderate macroeconomic situation in Russia and supportive demographic trends for key cities of

presence

  • Rebound of infrastructure developments in North-West region supporting aggregates business

Stabilised regulation

  • Regulatory regime has stabilized
  • LSR is ready to operate under new regime and does not expect any material changes in its business

model

  • Favourable impact on competitive environment and market consolidation

Product changes started paying off

  • Product changes introduced in 2017-2018 have proven to be successful
  • New contract sales are up by 44% and reached 1 million sqm benchmark

Back to positive cash flow

  • Strong operating cash flow1 of RUB30bn with Net Debt/Adj. EBITDA decreasing to 0.8x
  • Moscow projects started to generate strong operational cashflow
  • Only 2 years of investment payments left in ZilArt
  • Stable dividend policy with consistent level of dividends (RUB78) maintained since 2014

Solid landbank sufficient for further growth

  • Over 7.8mm sqm of NSA – sufficient for at least 4-5 years of active development
  • Landbank value of RUB186bn
  • Less competition for the land expected in the next cycle due to changes in the regulation

Note: 1 Cash flows from operations before income taxes and interest paid

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FY FY 201 2018 H 8 HIG IGHLIG LIGHTS

RUB186BN GROUP PORTFOLIO

 Land bank valued at RUB186bn  Assessed value per sqm at RUB 24 th. increased by 10% YoY  Top-4 projects by value: ZILART, LUCHI, MORSKOY FACADE and ZIL YUG  A new contract sales high of 1,0023 th. sqm up, 44%4 YoY  Total value of RUB93bn3, up 38%4 YoY  Completions in 2018 totaled 1,0093 th. sqm  Operating cash flow

1 of RUB30bn,

9.0x increase YoY  Net debt down 30% to RUB30.3bn  Net Debt / adjusted EBITDA of 0.83x  Revenue of RUB146.4bn, up 6% YoY 

  • Adj. EBITDA2 of RUB36.4bn (margin of

25%)  Profit for the year of RUB16.2bn, up 2% YoY

SOLID PERFORMANCE STRONG CASH POSITION RECORD HIGH NEW CONTRACT SALES

¹ Cash flow from operations before income taxes and interest paid; 2 Hereinafter Adjusted EBITDA equals to Results from operating activities + Depreciation/amortization – (Increase in fair value of Investment property – Decrease in fair value of Investment property) – (Increase in results from operating activities due to write off of change in fair value of the disposed asset – Decrease in results from operating activities due to write off of change in fair value of the disposed asset) + Impairment losses recognized during the reporting period + Capitalized interest recognized in cost of sales; 3 With parking; 4 YoY % change is based on sales without parking

Source: Audited consolidated IFRS financial statements for the year ended 31 December 2018 and 2017; Company data

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SLIDE 6

INVESTME INVESTMENT NT HIGHLIGHTS HIGHLIGHTS

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LSR LSR GROUP P IN INVE VESTME STMENT T HIG IGHLIG LIGHTS TS

Source: Company information

  • Supportive macroeconomic trends with record low interest

rates and increasing housing affordability

  • Positive regulatory changes supporting industry consolidation

lead by a smaller number of professional and highly reputable homebuilders

  • Increased customer focus on the quality of the apartments

and infrastructure

  • Lower competition for land

RIGHT GHT IND NDUST USTRY

  • Truly federal level developer with leading positions across key

markets presented in all residential housing market segments

  • Large and well-balanced portfolio with attractive customer

proposition following latest market trends

  • Large-scale projects with a complete infrastructure and

housing package

  • Existing land bank is sufficient from a quality and volume

perspective

RIG RIGHT HT BUS BUSINE NESS MODEL MODEL STRONG ONG LE LEADERSHI HIP RIGHT GHT POI OINT NT IN N CYCLE LE

  • Long-term commitment to dividend payments and balanced

capital structure

  • Strong management team with solid experience in

construction sector

  • Best-in-class and internationally recognized corporate

governance system with majority share of INEDs

  • Strong track record of delivering outstanding results
  • Long-term support from the key shareholder now

focused on strategic development

  • Company is undergoing constant agile transformation by

adjusting its product offering in all segments leading to more compelling value proposition to support long term growth

  • Positive free cash flow generation
  • Strong market position of Zilart in Moscow business segment
  • Balanced project mix and development schedule going

forward

  • Additional upside from FCF positive building materials

business

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SLIDE 8

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19.1 24.3 28.0 32.0 34.0 38.7 40.4 Moscow Saint Petersburg Zagreb Paris Helsinki Zurich Rome 4.8% 1.2% 1.5% 0.4% 1.6% 1.1% 0.2% 1.5% 1.3%

  • 5

10 15 20 25 30 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Moscow Saint Petersburg Other regions

GROWING POPULATION AND LOW UNEMPLOYMENT IN KEY CITIES LOW HOUSING STOCK PER CAPITA2 SIZABLE DEPOSIT BASE REGISTERED DEALS IN SAINT PETERSBURG AND MOSCOW (THS.)3

Household deposits (RUB & foreign currencies), RUB trillion Source: CBR SPB Moscow Russia Population growth (CAGR ‘06-’18)(1) Employed population growth (CAGR ‘06-’18) Unemployment rate (2018) Source: Rosstat Average w/o Russia: 34.6 sqm per capita 45% 30% Source: Rosstat, Eurostat Note: 1 Calculated via dividing total housing stock by population; 2 Average area of living accommodation for European countries (for 2017, Moscow and Saint Petersburg for 2018); 3 Includes DDU and buy-sell contracts Source: Rosreestr

1 1

Jan-19

RI RIGH GHT T IN INDU DUSTR STRY STRONG FUNDAMENTALS

35 42 37 47 34 45 43 57 46 56 58 77 27 35 30 36 27 35 39 44 36 44 41 47 61 77 68 83 61 79 81 101 82 100 98 123 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Moscow Saint-Petersburg +11% YoY +26% YoY

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25% 35% 45% 55% 65% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 346 420 405 498 509 852 927 1,333 115 281 260 311 264 397 383 370 461 701 665 808 773 1,249 1,309 1,704 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 Secondary market Primary market 6% 20% 38% 42% 46% 81% 9.66% 7.75% 5% 7% 9% 11% 13% 15% 17% 19% Jan-10 Jul-11 Dec-12 Jun-14 Dec-15 Jun-17 Dec-18 Average mortgage rate Key rate Source: CBR, AIZhK, EMF Source: CBR

AVERAGE MONTHLY WAGE PER AVERAGE SQM PRICE SHARE OF MORTGAGE TRANSACTIONS IN LSR SALES2 AVERAGE MORTGAGE RATE IN RUSSIA1 MORTGAGE LOANS ISSUED, RUB bn

Source: Company information Note: 1 Weighted average interest rate on mortgage loans given to residents in Russia during the month for acquisition of apartments on the primary market; 2 By number of contracts; 3 Mortgages and residential loans for some countries; 4 Latest available data

  • Outstanding mortgage portfolio reached RUB 6.4 trillion by the end of 2018

(CBR data)

Mortgage3 as % of GDP4

RI RIGH GHT T IN INDU DUSTR STRY POSITIVE MORTGAGE LENDING AND RATES DYNAMICS

20% 50% 23% 55% 0% 10% 20% 30% 40% 50% 60% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Moscow Saint Petersburg Source: Rosstat

  • Mortgage rates are still at historical lows with strong support by the

government programmes

  • On the back of real estate prices easing, the

affordability of housing has reached its all- time high levels

  • Share of mortgage contracts

reached 53% in 2018

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15.2% 27.8% 19.1% 17.0% 12.1% 4.3% 4.0% 0.5% 5.8 - 13.8 13.8 - 25.0 25.0 - 35.0 35.0 - 50.0 50.0 - 75.0 75.0 - 100.0 100.0 - 250.0 Over 250.0

Source: Rosstat

SENSITIVITY OF MONTHLY MORTGAGE PAYMENT (RUB) BREAKDOWN OF EMPLOYED POPULATION OF RUSSIA BY MONTHLY SALARY1

Source: Company analysis

INCREASING MORTGAGE AFFORDABILITY REQUIRED SALARY FOR MORTGAGE APPROVAL (RUB) Down payment 20% 25% 30% 35% Mortgage rate 10.0% 34,387 32,238 30,089 27,940 9.0% 32,457 30,428 28,399 26,371 8.0% 30,581 28,670 26,758 24,847 7.0% 28,763 26,965 25,167 23,370 Down payment 20% 25% 30% 35% Mortgage rate 10.0% 68,775 64,476 60,178 55,879 9.0% 64,913 60,856 56,799 52,742 8.0% 61,162 57,339 53,517 49,694 7.0% 57,525 53,930 50,334 46,739

  • Presented sensitivity table assumes the

following: – Apartment price of RUB 4.0 m – Duration of mortgage of 15 years

  • Only c.15% of Russian working population can

afford mortgage at an interest rate of 9.7% (current average rate) for an average mass market apartment (Company estimates)

  • Monthly payments are very sensitive to each

mortgage percentage point change

  • The government announced plans to decrease

mortgage rate to 8% in the next coming years

  • We estimate the upside to current customer

base in the following way:

  • c.12.1% of Russia’s employed population

has monthly salary in the range of RUB 50.0-75.0 thousand

  • Another 17.0% has monthly salary in the

range of RUB 35.0-50.0 thousand

  • Total employed population of Russia

amounted to c.72m people2

  • Assuming salary should cover monthly

mortgage payment by 2.0x

RUBk

9%

Mortgage rate Upside to customer base Extra 5% of working population

8%

Extra 8% of working population +50% to existing customer base +130% to existing customer base

Source: Company analysis Note: 1 Data as of April 2017; 2 Average for 2016

RI RIGH GHT T IN INDU DUSTR STRY POSITIVE OUTLOOK ON MORTGAGE AFFORDABILITY

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SLIDE 11

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  • Criteria for exemption

from new escrow system currently being discussed:

  • Project completion

rate

  • Volume of sales
  • Most of previously applicable rules (such

as mandatory contributions to compensation fund, limitations with regards to construction permits, project costs, etc.) will no longer apply to those who operate within the escrow system

RI RIGH GHT T IN INDU DUSTR STRY EXPECTED AMENDMENTS TO REGULATION

  • Mandatory use of escrow accounts for

incoming funds from sales

  • Payments from customers to be released

to developers after project commissioning

  • Project financing with the usage of bank

credit lines at a 3%-6%1 interest rate backed by escrow accounts Ability to sell under “old” rules (DDU) Escrow accounts system After 1 July 2019 Before 1 July 2019 LSR READY FOR THE CHANGES Aligned operations with new legislative requirements LSR is in active negotiations and discussions with the banks around the new framework in view of the upcoming changes

Source: Company information, public sources Note: 1 Company information

Project financing via receipt of funds under DDU with customers

Present cost of borrowing

8.8%

Expected interest rate under project financing

3% - 6%

1

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RI RIGH GHT T BUS USIN INESS ESS MOD MODEL EL LSR GROUP IS A CLEAR LEADER IN RUSSIAN REAL ESTATE

Source: Company information, Rosstat, valuation report as of 31.12.2018, erzrf.ru Note: Respective market positions of LSR Group are presented on completions basis for 2018 and on housing under construction basis as of 01.01.2019; 1 Rosstat data as of 2017. Respective position is calculated on the basis of ranking vs. all presented Russian regions and towns. Position for Yekaterinburg is presented for Sverdlovsk region; 2 Based on completions for 2018; 3 Company estimates

FEDERAL PLAYER PRESENT IN KEY REGIONS PRESENCE IN ALL MARKET SEGMENTS

Mass-ma marke rket

MSK | SPB | Yekat

RUB 67 67bn bn RUB 73bn bn RUB 22bn bn MV: MV:

WELL POSITIONED TO BENEFIT FROM MARKET CONSOLIDATION RECOGNITION AMONG PROFESSIONALS

RUB 85th.

  • Avg. price

per sqm3: RUB 182th. RUB 240th.

  • St. Petersburg

Yekaterinburg Moscow

Ci City LSR SR market position #2 by population #8 by disposable income1 #1 by completions #1 by housing under construction

TOP-10 players account for 16% market share2

share of TOP-10 real estate developers in Russia2

Real Estate market in Russia is considered fragmented with total number of developers exceeding 1,700 TOP-10 developers2 (with LSR being #2) account for less than 16% market share Key players including LSR are in strong position to benefit from the upcoming market consolidation supported by changes in legislation and rationalization of the market

Business

MSK | SPB

El Elite te

SPB

NEVA HAUS: BEST MID-RISE RESIDENTIAL COMPLEX 2018 Ci City LSR SR market position #1 by population #4 by disposable income1 #11 by completions #3 by housing under construction Ci City LSR SR market position #4 by population #17 by disposable income1 #1 by completions #1 by housing under construction LUCHI IS A WINNER OF RREF AWARDS 2018 VERONA AND NEVA HAUS: BEST PROJECTS 2018 LEADING CORPORATE GOVERNANCE 2018

16%

RELIABLE CONSTRUCTOR 2018 RIVIERE NOIRE: BEST BUSINESS CLASS PROJECT 2018

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RI RIGH GHT T BUS USIN INESS ESS MOD MODEL EL KEY LARGE-SCALE PROJECTS

  • Large-scale real-estate project

implemented within a comprehensive development plan offers higher quality of living generating sales exceeding 210 units per month

  • Comprehensive social and transport

infrastructure

  • Attractive location with easy city access
  • The only large-scale project in
  • St. Petersburg overlooking Neva river
  • Unique combination of mass-market
  • ffering with business class units
  • verlooking Neva river
  • A rare case of construction of large-scale

residential complex in a well-developed neighborhood

  • Monthly sales exceeding 240 units

Completion by 2024

Land plot – 59 ha Start of pre-sales – March 2016 Total NSA – 836 th m²

Completion by 2033

Land plot – 363 ha Start of pre-sales – June 2016 Total NSA – 2,392 th m²

  • More than 4,000 apartments sold to date
  • Sales dynamics exceeding 190 units per

month

  • Residential cluster of comfort-class and

business class multi-storey buildings

  • Excellent accessibility: located close to

subway station and a quick car drive to the Moscow city centre

Completion by 2026

Land plot – 39 ha Start of pre-sales – February 2016 Total NSA – 542 th m²

Source: Company information Note: NSA stands for net sellable / leasable area excluding parking lots

CIVILIZATION (SAINT PETERSBURG) TSVETNOY GOROD (SAINT PETERSBURG) LUCHI (MOSCOW)

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SLIDE 14

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STR STRON ONG G LEA LEADER DERSH SHIP IP INDUSTRY LEADING DIVIDEND STORY

Source: Company information Note: 1 Net Debt / EBITDA for 2015 and 2016 was restated according to latest changes in accounting principles; 2 Actual dividend payments are usually exercised the following year

HIGH PAYOUT RATIO ON THE BACK OF LOW LEVERAGE OVER RUB 33 BILLION DISTRIBUTED IN DIVIDENDS SINCE 2010 STRONG AND CONSISTENT FOCUS ON SHAREHOLDERS RETURN

St Strong t track record Divi Dividend poli policy

  • Minimum payout ratio of 20% of IFRS Net Income
  • Remaining part of Net Income is to be used for

reinvestment purpose

1 545 2 061 2 061 4 121 8 036 8 036 8 036 8 036 15 20 20 40 78 78 78 78 2010 2011 2012 2013 2014 2015 2016 2017

Dividends payed out, RUBmm Dividends per share, RUB

3,5x 3,3x 2,7x 2,4x 0,1x 0,5x 1,1x 1,2x 0,8x 89% 85% 42% 125% 87% 75% 88% 51% 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net Debt/EBITDA Payout ratio

  • Average payout ratio since 2010 exceeds 80%
  • LSR has been paying dividends for 8 years in a row

without a single interruption even during investment peak years

  • Focus on balanced capital structure proven by

improving leverage profile

2 1

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STR STRON ONG G LEA LEADER DERSH SHIP IP

EXPERIENCED MANAGEMENT AND STRONG CORPORATE GOVERNANCE

KEY MANAGEMENT TEAM MEMBERS COMPOSITION OF BOARD OF DIRECTORS

Eugeny Yatsyshin

First Deputy CEO Head of real estate development

  • >25 years at LSR

Vasily Kostritsa

Head of Building Materials

  • >18 years at LSR

CORPORATE GOVERNANCE STRUCTURE

Dmi Dmitri Gontcharov Member of the Strategy and Investment Committee

  • >15 years at LSR

And Andrey y Molchanov

Chairman

  • Founder of LSR
  • Doctor of Economics

Maxim m So Sokolov CEO

  • Ph. D. in Economics

GENERAL MEETING OF SHAREHOLDERS EXECUTIVE COMMITEE CEO MANAGE ANAGEMENT NT

BOARD OF DIR IRECTORS

Audit commitee HR and compensations committee Independent Auditors Strategy and Investment Committee

Al Alexander Pr Prysyazhnyuk Member of BoD commitees

  • >3 years at LSR

Dmitry Kutuzov

Chief Financial Officer

  • >14 years at LSR

Leonid Sorokko

Deputy CEO for Construction Head of Construction unit

  • >5 years at LSR

Vi Vitaly Po Podolsky Chairman of HR and Compensation, member of Audit and Strategy committees

  • >2 years at LSR

INED

An Andrey Nesterenko Chairman of the Strategy and Investment Committee

  • More than 12 years experience in

the construction industry

INED

Galina Volchetskaya

Executive Director

  • >8 years in LSR

Maxim Sokolov

CEO

  • Ph. D. in Economics

Al Alexey Makhnev Chairman of Audit, member of Audit and Strategy committees

  • >5 years at LSR

INED INED

Source: Company information

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LSR

ADAPTING TO LATEST TRENDS

  • Customers tend to focus more on apartment location, quality of common areas and ability to move in as fast as

possible additionally driving demand for fit-out apartments in economy class

  • Gradual decreasing of average unit size as customers are now more focused on price per unit vs. price per sqm

leading to higher demand for smaller apartments (c. 15% decrease vs. initial floor plans)

  • Increasing demand for supporting facilities such as storage rooms and service offering for residents provided by

service company (LSR has in-house service company in select projects)

1 ZILART – SOUND PLAYER IN MOSCOW BUSINESS SEGMENT

  • Flagship redevelopment project close to the city center of Moscow
  • 10 buildings have already been completed and sold
  • Accelerated sales dynamics with c. 2x more sales in Jan-Feb 2019 compared to the same period of 2018
  • Zilart is expected to attract more than 20,000 people per day on the back of Zilart commercial infrastructure and

recently launched park zone “Tyfeleva Rosha” considered to be one of the best in Moscow

  • Zilart is named #1 project in high-class development projects by construction speed1

2 BALANCED DEVELOPMENT PIPELINE

  • In 2017-2018 main focus was on adjusting our offering and achieving an optimal project mix in elite, business and

mass-market segments while maintaining target construction volumes

  • Increased presence in Moscow business segment by commissioning sales in project Leningradka 58
  • Group has strong pipeline exceeding 5 new projects in all segments and plans to launch them over next years

depending on legislation and market environment

  • St. Petersburg will remain the largest contributor of LSR land bank in the mid-term
  • Yekaterinburg will oversee commissioning of new projects in mass-market segment
  • Company expects to further increase its presence in Moscow business segment

3 HIGH QUALITY BUILDING MATERIALS BUSINESS

  • Market leader with excellent access to infrastructure, modern technologies and resource base maintaining dominant

positions in the regions in which we operate where there are substantial barriers to entry

  • Free cash flow positive building materials segment with predictable revenue stream, high margins and limited

maintenance capex requirements

  • Our production facilities are well-invested as a result of completed EUR 1 billion investment program

4

Source: Company information Note: 1 As of 2018 according to Metrium agency

RI RIGH GHT T PO POIN INT T IN IN CY CYCLE CLE GROUP TRANSFORMATION: READY FOR A NEW CYCLE

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SLIDE 17

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101 m2 86 m2

1

Source: Company information

RI RIGH GHT T PO POIN INT T IN IN CY CYCLE CLE LSR GROUP: MEETING CUSTOMER DEMANDS AND NEEDS

Floor Floor area area adjustme stments ts Fit-out t apart rtme ments ts integ tegrati ration Quality ty public are reas In In-house se ma manageme ment se servi rvice

INITIAL PROJECT

Three-room apartment

AFTER ADJUSTMENTS

Three-room apartment Large common area Elongated rooms Squared rooms Reduced common area

Separated parking lots and pedestrian areas

1 2

Quality entrance zones

3

Proximity to parks and promenades Cleaning Infrastructure maintenance Decoration repair works Security

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PROJECT OVERVIEW KEY FACTS

GENERAL PRE-SALES RESULTS

Apartments & other lots Area sold Project status

>2,500pcs >180th. sqm

Revenue up-to-date

>RUB 30bn

65.1ha

Total area

1.1mm sqm

Net sellable area1

4Q 2026

End of construction

Source: Company information, pre-sales results as of 31.12.2018 Note: 1 Including parking lots

2

Daily sales in Jan-Feb 2019 2.6 apartments

1.5mm sqm

Gross area

RI RIGH GHT T PO POIN INT T IN IN CY CYCLE CLE ZILART: LARGEST BUSINESS CLASS PROJECT IN RUSSIA

Zilart is business class residential complex being constructed on the place of former car manufacturer plant ZiL It should become a perfect residential place for people valuing their comfort, proximity to office and cultural climate Strong support from Moscow government describing Zilart as “one

  • f the best integrated Moscow

districts”

Moscow

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SLIDE 19

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SAINT PETERSBURG MOSCOW YEKATERINBURG

MORSKOY FACADE AEROPORT RZHEVKA NEVA ART

  • Business project in Vasilievsky Island

comprises of residential and commercials wings with NSA exceeding 500 th. sqm

  • Own 25 ha park zone
  • Mass-market project Leningrad region

with over 1mm sqm of NSA

  • Comprises residential, social and

commercial buildings with parking lots

  • Elite 116 th. sqm complex located in

Petrogradsky District, city center

  • State-of-the-art infrastructure,

underground parking and pre-school KRASNY MAYAK

  • Over 1,600 apartments
  • Comprises a building of

variable number of floors (up to 23 floors) with a parking and commercial premises

  • NSA exceeds 100 th.

sqm VIZ

  • Multifunctional

residential development complex with over 1,200 parking lots

  • Close proximity to a

forest and lake

  • c. 7km from city center

Business Mass-market Elite Business Mass-market

Source: Company information

3

RI RIGH GHT T PO POIN INT T IN IN CY CYCLE CLE DEVELOPMENT PIPELINE: KEY UPCOMING PROJECTS

slide-20
SLIDE 20

20

SEGMENT STRUCTURE GENERAL OVERVIEW

Building Materials

Source: Company information Note: capacity data as of December 2018

4

RI RIGH GHT T PO POIN INT T IN IN CY CYCLE CLE

BUILDING MATERIALS BUSINESS – STRONG CASH FLOW GENERATION

LSR GROUP IS THE LARGEST BUILDING MATERIALS PRODUCER IN RUSSIA WITH FULL RANGE OF CONSTRUCTION SERVICES

Aggregates Building Materials

Total Building Materials, capacity Ready-mix concrete 1 563 th m³ Bricks 336 mn Aerated concrete 1 665 th m³ Reinforced concrete 114 th m³ Aggregates Reserves Sand 374 mn m³ Crushed granite 549 mn m³ Tower Cranes Tower Cranes 190 units Crushed Granite Sand Ready-mix Concrete Reinforced Concrete Bricks Aerated Concrete Tower Cranes

#1

in ceramic bricks segment

#1

in sand segment

#1

in aerated concrete, ready-mix concrete, ceramic bricks, crushed granite and sand segments.

RUSSIA NORTH-WEST REGION

  • Well-invested modern assets generating predictable revenue inflows

and high EBITDA margins of up to 25%

  • Free cash flow positive
  • CAPEX is limited to maintenance levels
  • Market leader and trend setter in Moscow and St. Petersburg

regions

  • Benefitting from RUB devaluation due to limited competitive

pressure from foreign producers

slide-21
SLIDE 21

FIN FINANCIAL ANCIAL RES RESUL ULTS TS

slide-22
SLIDE 22

22

2018 2018 FIN FINAN ANCI CIAL AL RE RESU SULTS TS HIG IGHLIGH LIGHTS TS

Source: Company information Note: 1 RUB3.1bn one-off profit recognition in 2017, following a land plot sale (Energetikov 9) in St. Petersburg

Revenue

  • Revenues reached a record RUB146bn, up 6% YoY, primarily driven by robust performance across all regions of presence

(Saint-Petersburg, Moscow, Yekaterinburg) Adjusted EBITDA1 and margin

  • Adjusted EBITDA remained at a level of RUB36bn
  • Adjusted EBITDA margin stands at 25% (in line with 2017 level adjusted for one-off effect of sale of land plot1)

Net profit

  • Profit for the period marginally increased by 2% YoY to RUB16bn
  • EPS reached RUB159 (3% YoY)

Debt and leverage

  • Significant decrease of net debt level, down 30% YoY to RUB30bn
  • Net debt / adjusted EBITDA ratio decreased to 0.83x
  • Average borrowing rate declined to 8.8% as of 2018 year-end (vs. 9.1% in 2017)

Real Estate portfolio

  • Real estate portfolio was valued by Knight Frank at RUB186bn (as of December 31, 2018)
  • Appraiser’s valuation takes into account new regulatory amendments (incl. escrow accounts system)
  • Assessed value per sqm up by 10% YoY

Operating cash flow

  • Strong operating cash flow generation of RUB30bn on the back of robust sales dynamics throughout the year
slide-23
SLIDE 23

23

90% 10% 84% 16% 86% 14% 87% 13% 87% 13% 83% 17%

91 155 159 2016 2017 2018 9,163 15,871 16,230 2016 2017 2018 27,750 36,845 36,400 2016 2017 2018 106,524 138,494 146,376 2016 2017 2018

Real Estate & Construction Building Materials

RE REVE VENUE E AN AND D AD ADJU JUSTE STED D EB EBITD ITDA A BR BREA EAKDO DOWN

  • Revenue hit a record of RUB146.4bn, up 6% YoY, with a stable adjusted EBITDA of RUB36.4bn
  • Adjusted EBITDA margin stood at 25% while operating profit margin was 17%
  • Growth primarily driven by strong performance across all regions (Saint-Petersburg, Moscow, Urals)
  • Net profit amounted to RUB16.2bn on the back of revenue and operating profitability growth

NET PROFIT DYNAMICS (RUB M) REVENUE DYNAMICS (RUB M) ADJUSTED EBITDA DYNAMICS (RUB M)

Source: Company information Note: 1 Breakdown before intergroup eliminations, unallocated income and expenses, other operations; 2 RUB3.1bn one-off profit recognition in 2017, following a land plot sale (Energetikov 9) in St. Petersburg

1

+6% +30% 25% 27% 26%

margin, %

11% 11% 9%

margin, %

Revenue Breakdown 1 Adjusted EBITDA Breakdown EPS Dynamics (RUB)

3,070 2

slide-24
SLIDE 24

24

1,356 1,800 2,140 2016 2017 2018 5,889 8,463 9,218 2016 2017 2018 3,151 8,195 12,699 2016 2017 2018 23,283 31,101 38,397 2016 2017 2018 20,061 22,374 20,771 2016 2017 2018 47,985 71,559 68,639 2016 2017 2018 24,410 32,297 35,553 2016 2017 2018 77,262 111,216 116,592 2016 2017 2018

URALS MOSCOW SAINT PETERSBURG KEY DEVELOPMENTS

RE REAL AL EST ESTATE TE DE DEVE VELOPMEN PMENT T SEG SEGMEN MENT T PER PERFOR FORMAN MANCE

  • In 2018 Real Estate segment revenue increased by 5% to

RUB116.6bn

  • Real Estate adjusted EBITDA rose to RUB35.6bn (10% YoY), with

adjusted EBITDA margin standing at 30%

  • Robust growth rates were driven by solid performance in

Moscow revenue up 23% YoY, Urals – 9% YoY with slight decrease Saint-Petersburg of 4% YoY due to change in product mix

Revenue (RUB M) Adjusted EBITDA (RUB M) Revenue (RUB M) Adjusted EBITDA (RUB M) Revenue (RUB M) Adjusted EBITDA (RUB M) Revenue Adjusted EBITDA

REVENUE AND ADJUSTED EBITDA DYNAMICS (RUB M)

Source: Company information Note: 1 Includes LSR-Europe revenue of RUB220m; 2 Includes LSR-Europe EBITDA of RUB(79)m

1 2

32%

margin, %

29% 30% 42%

margin, %

31% 30% 14%

margin, %

26% 33% 23%

margin, %

21% 23%

slide-25
SLIDE 25

25

2,569 5,002 2,758 2016 2017 2018 4,328 6,571 4,000 2016 2017 2018 17,177 17,362 19,144 2016 2017 2018

OPERATING PROFIT (RUB M) REVENUE DYNAMICS (RUB M)

BUILD ILDIN ING MA MATER TERIA IALS LS SEG SEGMEN MENT T PER PERFO FORMA RMANCE NCE

  • Sales revenue increased by 10% YoY to RUB19,144m
  • Adjusted EBITDA decreased by 39% YoY to RUB4,000m with a 21% margin – lower adjusted EBITDA reflects the one-off profit recognition

in 2017, following a land plot sale (Energetikov 9) in St. Petersburg

  • On a comparable basis (excl. one-off in 2017) - adjusted EBITDA increased by 14% YoY
  • Operating profit decreased to RUB2.8bn with a 14% margin, following a drop in adjusted EBITDA due to the one-off in 2017

ADJUSTED EBITDA DYNAMICS (RUB M)

Source: Company information Note: 1 RUB3.1bn one-off profit recognition in 2017, following a land plot sale (Energetikov 9) in St. Petersburg ; 2 Adj. EBITDA margin excl. one-off effect

KEY DEVELOPMENTS

+10% +1% 21% 38% 25%

margin, %

14% 29% 15%

margin, % 3,070 1

20%2 11%2

3,070 1

slide-26
SLIDE 26

26

83% 17% 0.01%

  • 200

5,333 5,803 29,910 38,305 6,350 187 Q1 2019 Q2 2019 Q3 2019 Q4 2019 2020 2021 2022 2023+

COMPANY DEBT SNAPSHOT

Total: RUB86.1bn

MAI MAINTAI AININ ING STR STRONG BAL ALAN ANCE CE SH SHEET EET

Source: Company information

COMPANY DEBT COMPOSITION (AS OF 31-DEC-2018)

  • Total debt up to RUB86.1bn, as of 31 December 2018
  • The average interest rate down to 8.8% in 2018, as compared to

9.1% in 2017

  • Net debt of RUB30.3bn, down 30% YoY
  • Net debt/adjusted EBITDA – 0.83x
  • 98% of debt denominated in RUB
  • Credit rating: Moody’s – B1, outlook stable; Fitch – B, outlook

positive; RAEX – ruA, outlook stable

DEBT MATURITY PROFILE (RUB M)

Bank and other loans Bond issues Finance lease liability

RUB11,336m

slide-27
SLIDE 27

UPD UPDATE TE ON ON POR PORTFO TFOLIO LIO VAL ALUATION TION

slide-28
SLIDE 28

28

Source: Company information, Knight Frank as of 31.12.2018 Note: 1 LSR Group also has operations in Germany which are spread over Leipzig, Landshut and Munich yet MV of assets represents c.2% of total; 2 Unsold area excludes parking; 3 For projects located in Russia

RUB 185bn 31 Dec 2017

MV MV UNSOLD AREA2

Zilart rt

Moscow | Business

RUB UB 35bn 35bn 848 th. m2 RUB UB 12bn 12bn 532 th. m2

Mors Morskoy fac facade

SPB | Business

1,247

ha

7,815

TOTAL AREA OF LSR GROUP SITES YET TO BE SOLD AND LEASED IN OUR PROJECTS

c.24

th. RUB

VALUE PER SQM FOR UNSOLD NSA

55

projects

IN ALL MARKET SEGMENTS3

th. sqm

  • market value for assets in key regions1 as % of total

GR GROU OUP P POR PORTFO TFOLIO IO AMOUN AMOUNTS TS TO O RUB UB 186bn

Business class 37.8% Mass- market 40.9% Elite 13.0% Commercial 5.6% Operating

  • ffices

2.6%

  • St. Petersburg

Yekaterinburg Moscow

51% 42% 4%

Russia

RUB UB 14bn 14bn 2,232 th. m2

Tsv svetn tnoy Gorod

SPB | Mass-market

VALUE OF OUR LAND BANK REMAINED BROADLY FLAT BREAKDOWN BY GEOGRAPHY TOP-4 PROJECTS BY VALUE KEY FACTS RUB 186bn 31 Dec 2018

Commercial 10.1% Mass- market 36.0% Elite 11.8% Business class 39.1% Operating offices 3.0%

RUB UB 9bn 9bn 116 th. m2

Neva va Art rt

SPB | Elite

New

slide-29
SLIDE 29

29

PORTFOLIO BREAKDOWN

Mass-market 69,3% Elite 2,7% Business class 26,6% Commercial 0,3% Operating

  • ffices

1,1%

  • St. Petersburg

66,7% Moscow 24,0% Yekaterinburg 8,9% Other 0,4% Concept development 38,7% Design 12,4% Construction 47,4% Completed 1,2% Operating

  • ffices

0,3% Mass-market 36,0% Elite 11,8% Business class 39,1% Commercial 10,1% Operating

  • ffices

3,0%

PO PORTFO TFOLIO LIO OVE VERVI VIEW EW

Region NSA (‘000m2) % of total MV (RUB mn) % of total

  • St. Petersburg and

Leningrad region 5,212 66.7% 94,776 51.1% Moscow and Moscow region 1,875 24.0% 79,053 42.6% Yekaterinburg 699 8.9% 7,763 4.2% Germany 29 0.4% 3,969 2.1% Total 7,815 100% 185,561 100% Property Sector NSA (‘000m2) % of total MV (RUB mn) % of total Mass-market 5,413 69.3% 66,729 36.0% Elite 210 2.7% 21,835 11.8% Business class 2,079 26.6% 72,620 39.1% Commercial 25 0.% 5,605 3.0% Operating offices 88 1.1% 18,773 10.1% Total 7,815 100% 185,561 100% Property Sector NSA (‘000m2) % of total MV (RUB mn) % of total Concept Development 3,027 38.7% 27,925 15.0% Designing 966 12.4% 27,422 14.8% Construction 3,706 47.4% 102,914 55.5% Completed 92 1.2% 21,695 11.7% Operating offices 25 0.3% 5,605 3.0% Total 7,815 100% 185,561 100%

BY REGION BY SEGMENT BY STAGE

  • St. Petersburg

51,1% Moscow 42,6% Yekaterinburg 4,2% Other 2,1% by net sellable area Operating

  • ffices 2.6%

Source: Knight Frank, Company information as of 31.12.2018 Note: NSA – Net unsold sellable / leasable area without parking lots, MV – Market Value. NSA and MV include project Zil-South with NSA of 485 th. m2 and MV of RUB 9.8bn by market value by net sellable area by market value by net sellable area by market value Concept development 15,0% Design 14,8% Construction 55,5% Completed 11,7%

slide-30
SLIDE 30

30

EVOLUTION OF LSR LAND BANK PORTFOLIO MARKET VALUE

103 777 124 364 119 921 117 218 135 151 136 038 143 764 185 466 185 561 2010 2011 2012 2013 2014 2015 2016 2017 2018

EVOLUTION OF VALUE PER SQUARE METER1

RUBmm

+20% (4%) +15% +1% +6% +29% (2%)

Source: Knight Frank, Company information as of 31.12.2018 Note: 1 Calculated as Market Value divided by Unsold NSA in the related segment

CON CONTINUO TINUOUS US INCREA INCREASE SE OF OF LAND AND BANK ANK VAL ALUE UE

+0.1%

El Elit ite

74,0 103,9 104,1 2016 2017 2018

RUB ‘000

28,9 35,3 34,9 2016 2017 2018 12,3 12,1 12,3 2016 2017 2018

Bu Busi siness ss Mass ss-mar market

SPB SPB | MSK SPB | MSK | Yekat

slide-31
SLIDE 31

APP APPENDIX ENDIX

slide-32
SLIDE 32

32

909 888 2017 2018 65 90 2017 2018 640 920 2017 2018 97 103 96 109 94 98 100 99 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018

201 2018 O 8 OPER PERATING TING RE RESU SULTS TS HIG IGHLIGH LIGHTS TS

  • In 2018 we entered into new contracts for the sale of 920 th. sqm (+44% YoY) with a total value of RUB 90 bn (+38% YoY)
  • Average price per sqm was down by 1% QoQ and 9% YoY in Q4 2018
  • 620 th. sqm launched during the year
  • In 2018 we completed 888 th. sqm (down 2% YoY)
  • In 2018 share of mortgage contracts reached 53% across the Company

AVERAGE PRICE (RUBk / SQM) COMPLETIONS (TH. SQM) NEW CONTRACT SALES (RUB BN) NEW CONTRACT SALES (TH. SQM)

  • In 2018, in all

regions of our

  • perations we

entered into new contracts for the sale of 920 th. sqm (+44% to 2017)

  • The total value of

the contracts for the sale of apartments and

  • ther premises in

2018 was ca. RUB 90bn (up 38% to 2017)

  • In 2018, we

completed 888 th. sqm of net sellable area

+44% +38% (2%)

Source: Company information Note: HoH and QoQ calculations are based on the rounded numbers (YoY calculations are based on the full figures); 1 Adjusted figure including parking at a conversion rate of 30 m2 per parking lot 1,0021 931 1,0091

slide-33
SLIDE 33

33

851 1,080 748 2016 2017 2018 3,099 3,523 3,539 2016 2017 2018 102 155 517 2016 2017 2018 2,921 3,374 4,119 2016 2017 2018 768 692 1,333 2016 2017 2018 2,266 1,922 2,533 2016 2017 2018 1,061 878 365 2016 2017 2018 3,167 2,870 2,861 2016 2017 2018 730 3,132 (6) 2016 2017 2018 3,343 3,144 1,459 2016 2017 2018 817 631 577 2016 2017 2018 3,208 3,064 3,723 2016 2017 2018

BUI UILDI LDING NG MA MATER TERIA IALS: LS: FIN FINAN ANCI CIAL AL RES RESUL ULTS TS BY BY PR PRODU DUCT CT

CRUSHED GRANITE (RUB M) REINFORCED CONCRETE (RUB M) BRICKS (RUB M) AERATED CONCRETE (RUB M) SAND (RUB M) READY-MIX CONCRETE (RUB M)

Source: Company information Note: 1 RUB3.1bn one-off profit recognition in 2017, following a land plot sale (Energetikov 9) in St. Petersburg

Revenue Adjusted EBITDA Revenue Adjusted EBITDA Revenue Adjusted EBITDA Revenue Adjusted EBITDA Revenue Adjusted EBITDA Revenue Adjusted EBITDA

15%

margin, %

n/a

margin, %

13%

margin, %

53%

margin, %

13%

margin, %

21%

margin, % 3,070 1

slide-34
SLIDE 34

34

DE DEDI DICA CATED TED BO BOAR ARD D OF F DI DIRE RECT CTORS RS

Andrey Molchanov Chairman of the Board of Directors

  • Founded LSR Group in 1993
  • Doctor of Economics
  • Honorary builder of Russia1

Education:

  • In 1993 graduated from the Faculty of Economics, St. Petersburg State

University

  • In 1998 graduated from the Russian Academy of Public Administration

with a degree in State and Municipal Administration Experience:

  • In 1993, Andrey Molchanov founded LSR Group and headed the

Company till 2007

  • In 2008 – 2013 – elected Senator of the Leningrad Region in the

Federation Council of Russia’s Federal Assembly

  • Since April 2015 – Chairman of the Strategy and Investment
  • May 2015 - August 2018 – CEO, Chairman of the Executive Committee
  • Since August 2018 – Chairman of the Board of Directors of LSR Group

Andrey Nesterenko INED, Chairman of the Strategy and Investment Committee Experience:

  • Works in the construction industry for 12 years
  • Since 2015 — adviser of Colombo and Partners
  • Worked at Capital Group, Hals Development amd Rose Group

Education:

  • Moscow University of Consumer Cooperation

Dmitri Gontcharov Deputy Chairman of the Board of Directors, Member of the Strategy and Investment Committee Experience:

  • Works in LSR Group since 2003
  • Worked at BBMS Treuhand GmbH, Siemens AG

Education:

  • St. Petersburg State University; Ludwig-Maximilians-Universität

(Munich) Maxim Sokolov CEO, Chairman of the Executive Committee Experience:

  • Works in LSR Group since 2018
  • Worked at Rossi CJSC and Corporation S
  • In 2012–2018 — Minister of Transport of the Russian Federation

Education:

  • St Petersburg State University, Faculty of Economics

Alexander Prysyazhnyuk INED, Member of Strategy and Investment Committee, Audit Committee of BoD, Member of Human Resources and Compensation Experience:

  • Was INED of DIXY Group PJSC, INED and Chairman of the Audit

Committee of M.video PJSC Education:

  • Kuban State University

Aleksey Makhnev INED, Chairman of Audit Committee

  • f BoD, Member of Human

Resources and Compensation Committee Experience:

  • Member of the BoD of M.video PJSC and Magnit PJSC.
  • Head of Consumer Goods, Retail and Real Estate of the Corporate

Investment Department of VTB Capital Education:

  • Saint-Petersburg State University of Economics and Finance
  • PhD in Economics

Vitaly Podolsky INED, Chairman of Human Resources and Compensation Committee, Member of Audit Committee of BoD Experience:

  • Worked at RG Brands, Caesar Satellit Companies, Cherkizovo Group

PJSC, Skoltech, ARMADA PJSC, FMF Capital Education:

  • Lomonosov Moscow State University; University of Chicago Booth

School of Business

   

 – Independent Director

Source: Company information Note: 1 Title granted by President of Russia 4 INEDs out of 7 Directors

slide-35
SLIDE 35

35

EX EXPER PERIEN IENCE CED D EX EXEC ECUTIV TIVE E CO COMMITT MMITTEE EE

Maxim Sokolov CEO, Chairman of the Executive Committee

  • Ph. D. in Economics
  • Current State Adviser of the Russian Federation of second class

Education:

  • St Petersburg State University, Faculty of Economics

Experience:

  • In 1993–1999 — General Director of Rossi CJSC
  • In 1999–2004 — General Director of Corporation S
  • In 2004–2009 — Chairman of the Committee on Investments and

Strategic Projects of the Government of St Petersburg

  • In 2009–2012 — Director of the Department of Industry and

Infrastructure of the Government of the Russian Federation

  • In 2012–2018 — Minister of Transport of the Russian Federation
  • June-August 2018 — Chairman of the Strategy and Investment

Committee of the Board of Directors of LSR Group

  • Since August 2018 — Chairman of the Executive Committee, CEO and

Member of the Board of Directors of LSR Group

Eugeny Yatsyshin Member of the Executive Committee, First Deputy

  • CEO. Supervises real estate development units in

three regions Experience:

  • Works in LSR Group since 1993
  • Honorary builder of Russia1
  • Worked as Chairman of the Construction Committee of St.

Petersburg Government in 2003-2005 Education:

  • Saint Petersburg State University; Saint Petersburg International

Management Institute Galina Volchetskaya Member of the Executive Committee, Executive Director. Supervises directorates for legal affairs, information technologies, economic security and office management Experience:

  • Works in LSR Group since 2011
  • Worked in the system of State Registrations of Rights for Realty
  • Awarded the Certificate of Merit of the President of the Russian

Federation Education:

  • Leningrad State University
  • PhD in Law

Leonid Sorokko Member of the Executive Committee, Deputy CEO for Construction. In charge of LSR Construction business units in three regions Experience:

  • Works in LSR Group since 2013
  • Worked for various construction companies holding positions

ranging from specialist to CEO

  • In 2007-2009, he was Head of the Construction Department at

Russia's Defense Ministry and Advisor to the Minister of Defense Education:

  • Leningrad Institute of Civil Engineering

Source: Company information Note: 1 Title granted by President of Russia

Vasily Kostritsa Member of the Executive Committee, Deputy CEO for Building Materials Experience

  • Works in LSR Group since 2000
  • Honorary Builder of Russia(1)
  • Member of the Legislative Assembly of the Leningrad region,

member of the Commission for Construction, Transport, Communication and Roads Education:

  • Leningrad Institute of Marine Transport
  • PhD in Economics

Dmitry Kutuzov Member of the Executive Committee, Chief Financial Officer Experience:

  • Works in LSR Group since 2004
  • Worked in the banking sector
  • Awarded the Honorary Certificate of the Vice Governor of St.

Petersburg Education:

  • St. Petersburg State University of Finance and Economics; St.

Petersburg International Management Institute (IMISP)

slide-36
SLIDE 36

36

KEY EY OPER PERATIN TING RE RESU SULTS TS

Source: Company information Note: 1 Operating results in these tables are rounded to whole numbers, calculations are based on the full figures; 2 Adjusted figure includes parking at a conversion rate of 30 m2 per parking lot

REAL ESTATE1 4Q 2017 4Q 2018 Change % 4Q 2018

ADJUSTED2

2017 2018 Change, % 2018

ADJUSTED2

New contract sales, th. m2 216 300 39% 319 640 920 44% 1 002 Completed, th. m2 690 739 7% 818 909 888 (2%) 1 009 Real Estate - St. Petersburg New contract sales, th. m2 146 193 32% 200 407 562 38% 599 Completed, th. m2 466 550 18% 589 607 644 6% 715 Real Estate – Moscow New contract sales, th. m2 36 64 78% 73 122 199 63% 236 Completed, th. m2 182 114 (38%) 153 193 114 (41%) 153 Real Estate – Yekaterinburg New contract sales, th. m2 35 44 27% 46 110 159 45% 167 Completed, th. m2 42 76 79% 76 109 131 20% 140 BUILDING MATERIALS1 Product 4Q 2017 4Q 2018 Change % 2017 2018 Change, % Crushed granite, th. m3 1 445 1 760 22% 5 975 7 540 26% Sand, th. m3 1 992 2 665 34% 7 564 10 699 41% Ready-mix concrete, th. m3 243 274 13% 1 052 1 135 8% Bricks, million units 62 71 15% 290 300 4% Reinforced concrete, th. m3 60 27 (55%) 234 160 (32%) Aerated concrete, th. m3 310 313 1% 1 509 1 418 (6%)

slide-37
SLIDE 37

37

2016 2017 2018 Change, %

Revenue, RUB m 106,524 138,494 146,376 6% Adjusted EBITDA, RUB m 27,750 36,845 36,400 (1%) Adjusted EBITDA, % 26.1% 26.6% 24.9% (6%) Operating profit, RUB m 14,031 22,444 24,798 10% Operating profit, % 13.2% 16.2% 16.9% 4% Profit for the year, RUB m 9,163 15,871 16,230 2% Operating cash flow, RUB m 2,338 3,358 30,248 801% 31.12.16 31.12.17 31.12.2018 Change, % Total debt, RUB m 55,695 72,786 86,088 18% Net debt, RUB m 30,065 43,073 30,290 (30%) Net debt/ adjusted EBITDA 1.08x 1.17x 0.83x (29%)

Source: Company information

KEY EY FIN FINAN ANCI CIAL ALS

slide-38
SLIDE 38

38

CO CONTACT CTS

38

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: