7 May 2010 11:01
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR
INDIRECTLY IN THE UNITED STATES OF AMERICA
PIK GROUP ("The Group" or "PIK")
FINANCIAL RESULTS FOR THE 12 MONTHS
ENDED DECEMBER 31 2009
(LONDON, May 07 2010) - PIK (LSE: PIK), a leading Russian residential developer, today announces its consolidated IFRS financial results for 12 months ended December 31 2009, audited by KPMG.
Financial Summary
·; Revenues are down by 4.1% to US$1,300million (FY08: US$1,355million);
·; Revenues from sale of real estate activity increased by 5.1% to US$0.97billion (2008: US$0.92billion), while consolidated gross profit margin shrank by over 7 ppt down to approximately 18.3% (FY08: 25.3%);
·; Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) from development activities increased by 11.9% to approximately US$138million (FY08: US$124million),
·; Normalized net loss for the year was US$68million (FY08: US$60million);
·; Normalized net loss per share amounted to US$0.14 (FY08: US$0.12);
·; Total assets as of December 31 2008 declined by 19.1% reaching US$3.95billion (FY08: US$4.88billion);
·; Net tangible assets per share as of December 31 2009 amounted to US$3.95 (FY08: US$5.25);
·; Total debt as of December 31 2009 was down to US$1.27billion
(FY08: US$ 1.37billion)
·; Net debt as of December 31 2009 amounted to US$1.15billion
(FY08: US$1.26billion);
Pavel Poselenov, CEO of PIK Group comments:
"Over the last fifteen years we have succeeded in building PIK into an internationally recognized residential real estate developer. Since our inception we delivered over 170,000 units to our customers and we are continuing to contribute towards helping the nation to increase its living conditions and replacing the obsolete housing stock of the country.
Unfortunately, the global economic turmoil impacted Russia heavily, in particular, liquidity shortage together with falling consumer confidence has had a severe impact on our business.
During 2009, we had to concentrate on shoring up our liquidity position, lowering our debt levels, extending debt duration and getting access to new financing. We received support from the federal government and managed to adjust our business to a new environment by cutting overheads. In 2010, the next step would be, as we believe repairing the balance sheet through deleveraging our business and achieving positive results on our projects.
Looking ahead, we see positive signs of market recovery, especially based upon 1Q2010 presales pattern. We feel that the demand from retail customers has come back. The outlook for the real estate sector is getting brighter and longer-term, the fundamentals for our business remain unchanged.
There is a shortage of affordable residential housing in Russia (approximately 22 square meters per capita), the huge potential of a rapidly recovering mortgage market, a large obsolete housing stock in Russia and the willingness of the nation to improve living conditions. These will be the key drivers for PIK Group's recovery and growth."
Enquiries:
| Investors PIK Group Viktor Szalkay Head of Investor Relations
| Tel: +7 495 505 97 33 ext. 1358 |
| International media Citigate Dewe Rogerson Tom Baldock Lindsay Noton
| Tel: +44 20 7638 9571 |
| Russian media Dmitry Ivliev
| Tel: +7 495 505 97 33 ext. 1028 |
Note: The calculation of following measures used in this announcement is set below. Our calculations of the below measures may be different from the calculation used by other companies and therefore comparability may be limited. The below measures are not measures of financial performance under IFRS.
1a). EBITDA represents net profit/loss for the period before income tax expenses, interest income, interest expense including penalties payable, depreciation and amortization.
|
| FY09 |
| Restated FY08 |
|
| MM USD |
| MM USD |
| Net (Loss)/profit for the period | (361) |
| (1,135) |
| Depreciation and amortisation | 27 |
| 43 |
| Interest expense including penalties payable | 208 |
| 93 |
| Interest income | (13) |
| (19) |
| Income tax expense/(credit) | 27 |
| (51) |
| EBITDA | (112) |
| (1,069) |
1b) Adjusted EBITDA from development activities represents net profit/loss for the period before income tax expenses, interest income, interest expense including penalties payable, depreciation, foreign exchange gain/(loss), impairment losses, impairment loss on financial assets, income/loss from sale of development rights and other income (net).
|
|
| FY09 |
| Restated FY08 |
|
|
| MM USD |
| MM USD |
| Net (Loss)/profit for the year |
| (361) |
| (1,135) |
| Depreciation and amortisation |
| 27 |
| 43 |
| Income tax expenses |
| 27 |
| (51) |
| Interest expenses including penalties payable |
| 208 |
| 93 |
| Interest income |
| (12) |
| (19) |
| Impairment losses |
| 147 |
| 967 |
| Impairment loss on financial assets |
| 68 |
| 102 |
| Forex loss |
| 20 |
| 118 |
| Income/loss from sale of development rights |
| 1 |
| 0 |
| Other income (net) |
| 13 |
| 6 |
| Adjusted EBITDA from development activities |
| 138 |
| 124 |
2a) Normalized net profit/loss calculated as net profit impairment losses, impairment loss on financial assets, income/loss from sale of development rights, penalties and fines related to loans' late repayment and other income (net).
|
|
| FY09 |
| Restated FY08 |
|
|
| MM USD |
| MM USD |
| Net (Loss)/profit for the year |
| (361) |
| (1,135) |
| Impairment losses |
| 147 |
| 967 |
| Impairment loss on financial assets |
| 68 |
| 102 |
| Income/loss from sale of development rights |
| 1 |
| 0 |
| Penalties and fines related to loans' late repayment |
| 64 |
| 0 |
| Other income (net) |
| 13 |
| 6 |
| Normalized net profit |
| (68) |
| (60) |
2b) Normalized profit/loss per share calculated as normalized net profit/loss divided by number of shares outstanding as of December 31.
|
|
| FY09 |
| Restated FY08 |
|
|
| MM USD |
| MM USD |
| Normalized Net Profit |
| (68) |
| (60) |
| Number of shares outstanding as of December 31 |
| 493 |
| 490 |
| Normalized Net Profit/share |
| (0.14USD) |
| (0.12USD) |
3. Total assets calculated as sum of non-current and current assets.
|
| December 31 2009 |
| Restated December 31 2008 |
|
| MM USD |
| MM USD |
| Total non-current assets | 1,223 |
| 1,500 |
| Total current assets | 2,722 |
| 3,376 |
| Total Assets | 3,945 |
| 4,876 |
4. Total debt calculated as sum of non-current loans and borrowings, current loans and borrowings.
|
| December 31 2009 |
| Restated December 31 2008 |
|
| MM USD |
| MM USD |
| Non-current loans and borrowings | 731 |
| 286 |
| Current loans and borrowings | 535 |
| 1,080 |
| Total Debt | 1,266 |
| 1,366 |
5. Net tangible assets per share calculated as total assets less total debt less intangible assets divided by number of shares outstanding as of period end.
|
| December 31 2009 |
| Restated December 31 2008 |
|
| MM USD |
| MM USD |
| Total Assets | 3,945 |
| 4,876 |
| Total Debt | (1,266) |
| (1,367) |
| Intangible assets | (730) |
| (935) |
| Number of shares (mln shares) | 493.2 |
| 490.2 |
| Net tangible assets/share, US$ | 3.95 |
| 5.25 |
6. Net Debt calculated as total debt less cash and cash equivalents.
|
| December 31 2009 |
| Restated December 31 2008 |
|
| MM USD |
| MM USD |
| Total Debt | 1,266 |
| 1,366 |
| Cash and cash equivalents | (113) |
| (107) |
| Net Debt | 1,153 |
| 1,259 |
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of PIK. You can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. PIK does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in PIK's projections or forward-looking statements, including, among others, general economic conditions, PIK's competitive environment, risks associated with operating in Russia, rapid technological and market change, and other factors specifically related to PIK and its operations.
Appendix
Consolidated financial statements as of and for the year ended December 31 2009
Note: The Group's reporting currency is Russian roubles. However, for presentation purposes, these amounts were converted into US$ using average RUB/US$ exchange rate of the Central Bank of Russian Federation (FY09: 31.68; FY08: 24.86) for the income statement and using RUB/US$ exchange rate (31 December 2009: 30.24; 31 December 2008: 29.38) for the balance sheet as of the date of reporting.
The full version of the IFRS financial statements is available on the Group's website at http://www.pik-group.com/investors/financial-statements
Consolidated statement of financial position as of December 31 2009
|
|
| 2009 audited | Restated 2008 audited |
| 2009 | Restated 2008 |
| ASSETS |
| In MM RUB | In MM RUB |
| In MM USD | In MM USD |
| Non-current assets |
|
|
|
|
|
|
| Property, plant and equipment |
| 10,390 | 12,840 |
| 344 | 437 |
| Intangible assets |
| 22,072 | 27,455 |
| 730 | 934 |
| Investments in equity accounted investees |
| 3,460 | 3,522 |
| 114 | 120 |
| Other investments |
| 997 | 169 |
| 33 | 6 |
| Deferred tax assets |
| 86 | 71 |
| 3 | 2 |
| Total non-current assets |
| 37,005 | 44,057 |
| 1,224 | 1,500 |
| Current assets |
|
|
|
|
|
|
| Inventories |
| 67,345 | 77,184 |
| 2,227 | 2,627 |
| Other investments |
| 872 | 4,223 |
| 29 | 144 |
| Income tax receivable |
| 87 | 519 |
| 3 | 18 |
| Trade and other receivables |
| 10,598 | 14,124 |
| 350 | 481 |
| Cash and cash equivalents |
| 3,417 | 3,153 |
| 113 | 107 |
| Total current assets |
| 82,319 | 99,203 |
| 2,722 | 3,377 |
| Total assets |
| 119,324 | 143,260 |
| 3,945 | 4,876 |
| EQUITY AND LIABILITIES |
|
|
|
|
|
|
| Equity |
|
|
|
|
|
|
| Share capital |
| 30,843 | 30,843 |
| 1,020 | 1,050 |
| Additional paid-in capital |
| 20,082 | 20,082 |
| 664 | 684 |
| Treasury shares |
| - | -2,428 |
| 0 | -83 |
| Reserve resulting from additional share issue |
| -28,506 | -28,506 |
| -943 | -970 |
| Retained earnings |
| -14,540 | -1,011 |
| -481 | -34 |
| Total equity attributable to equity holders of the Company |
| 7,879 | 18,980 |
| 261 | 646 |
| Minority interest |
| 555 | 978 |
| 18 | 33 |
| Total equity |
| 8,434 | 19,958 |
| 279 | 679 |
| Non-current liabilities |
|
|
|
|
|
|
| Loans and borrowings |
| 22,121 | 8,393 |
| 731 | 286 |
| Trade and other payables |
| 1,128 | 1,527 |
| 37 | 52 |
| Provisions |
| - | 46 |
| 0 | 2 |
| Deferred tax liabilities |
| 5,858 | 6,135 |
| 194 | 209 |
| Total non-current liabilities |
| 29,107 | 16,101 |
| 962 | 548 |
| Current liabilities |
|
|
|
|
|
|
| Loans and borrowings |
| 16,169 | 31,742 |
| 535 | 1,080 |
| Trade and other payables |
| 63,753 | 74,439 |
| 2,108 | 2,534 |
| Provisions |
| 609 | 894 |
| 20 | 30 |
| Income tax payable |
| 1,252 | 126 |
| 41 | 4 |
| Total current liabilities |
| 81,783 | 107,201 |
| 2,704 | 3,649 |
| Total liabilities |
| 110,890 | 123,302 |
| 3,666 | 4,197 |
| Total equity and liabilities |
| 119,324 | 143,260 |
| 3,945 | 4,876 |
Consolidated statement of comprehensive income for 12 months ended December 31 2009
|
|
| 2009 audited | Restated 2008 audited |
| 2009 | Restated 2008 |
|
|
| In MM RUB | In MM RUB |
| In MM USD | In MM USD |
| Revenue |
| 41,175 | 33,695 |
| 1,300 | 1,355 |
| Cost of sales |
| -33,656 | -25,169 |
| -1,062 | -1,012 |
| Gross profit |
| 7,519 | 8,526 |
| 238 | 343 |
| Gains and losses on disposal of subsidiaries and development rights |
| -1,272 | - |
| -40 | 0 |
| Distribution expenses |
| -477 | -974 |
| -15 | -39 |
| Administrative expenses |
| -3,890 | -5,540 |
| -123 | -223 |
| Impairment losses and reversal of impairment loss |
| -4,671 | -24,028 |
| -147 | -967 |
| Finance income |
| 771 | 481 |
| 24 | 19 |
| Finance expenses |
| -9,754 | -7,933 |
| -308 | -319 |
| Share of loss of equity accounted investees, net of income tax |
| -41 | -75 |
| -1 | -3 |
| Loss before income tax |
| -11,815 | -29,543 |
| -372 | -1,189 |
| Income tax expense /(credit) |
| -866 | 1,277 |
| -27 | 51 |
| Loss from continuing operations |
| -12,681 | -28,266 |
| -399 | -1,138 |
| Profit from discontinued operations |
| 1,193 | 85 |
| 38 | 3 |
| Loss and total comprehensive income for the period for the period |
| -11,488 | -28,181 |
| -361 | -1,135 |
| Attributable to: |
|
|
|
|
|
|
| Owners of the Company |
| -11,115 | -27,961 |
| -350 | -1,125 |
| Minority interest |
| -373 | -220 |
| -11 | -9 |
| Total comprehensive loss for the period |
| -11,488 | -28,181 |
| -361 | -1,135 |
Consolidated statement of cash flows for 12 months ended December 31 2009
|
|
| 2009 audited | Restated 2008 audited |
| 2009 | Restated 2008 |
| OPERATING ACTIVITIES |
| In MM RUB | In MM RUB |
| In MM USD | In MM USD |
| Loss from continuing operations |
| -11,488 | -28,181 |
| -363 | -1,134 |
| Adjustments for: |
|
|
|
|
|
|
| Depreciation and amortisation |
| 860 | 1,076 |
| 27 | 43 |
| Impairment losses |
| 4,671 | 24,028 |
| 147 | 967 |
| Foreign exchange loss, net |
| 642 | 2,941 |
| 20 | 118 |
| Loss on disposal of property, plant and equipment |
| -16 | 80 |
| -1 | 3 |
| Impairment loss on financial assets |
| 2,147 | 2,547 |
| 68 | 102 |
| Income from disposal of development rights and subsidiaries |
| -43 | - |
| -1 | 0 |
| Share of loss of equity accounted investees |
| 41 | 75 |
| 1 | 3 |
| Interest expense, including penalties payable |
| 6,588 | 2,303 |
| 208 | 93 |
| Interest income |
| -400 | -481 |
| -13 | -19 |
| Income tax expense/(benefit) |
| 866 | -1,277 |
| 27 | -51 |
| Cash from operating activities before changes in working capital and provisions |
| 3,868 | 3,111 |
| 122 | 125 |
| Decrease/(Increase) in inventories |
| 7,075 | -28,338 |
| 223 | -1,140 |
| Decrease in trade and other receivables |
| 1,519 | 2,382 |
| 48 | 96 |
| (Decrease)/Increase in trade and other payables |
| -7,119 | 35,128 |
| -225 | 1,413 |
| Decrease in provisions |
| - | -22 |
| 0 | -1 |
| Cash flows from operations before income taxes and interest paid |
| 5,343 | 12,261 |
| 169 | 493 |
| Income taxes paid |
| -218 | -925 |
| -7 | -37 |
| Interest paid |
| -3,937 | -3,165 |
| -124 | -127 |
| Net cash (used in) /from operating activities |
| 1,188 | 8,171 |
| 38 | 329 |
|
|
|
|
|
|
|
|
| INVESTING ACTIVITIES |
|
|
|
|
|
|
| Proceeds from disposal of property, plant and equipment |
| 26 | 522 |
| 1 | 21 |
| Acquisition of other investments |
| - | -40 |
| 0 | -2 |
| Interest received |
| 22 | 331 |
| 1 | 13 |
| Acquisition of property, plant and equipment |
| -267 | -3,650 |
| -8 | -147 |
| Acquisition of development rights and other intangible assets |
| -223 | -17,657 |
| -7 | -710 |
| Acquisition of equity accounted investees |
| -2,208 | - |
| -70 | 0 |
| Acquisition of minority interests |
| -61 | -374 |
| -2 | -15 |
| Loans issued |
| - | -3,084 |
| 0 | -124 |
| Proceeds from sale of minority interests and development rights |
| 902 | 1,047 |
| 28 | 42 |
| Consideration paid to acquire mortgage loans from related party bank |
| - | -2,380 |
| 0 | -96 |
| Repayment of mortgage loans |
| 486 | 1,569 |
| 15 | 63 |
| Repayment of loans issued |
| 565 | 1,439 |
| 18 | 58 |
| Net cash used in investing activities |
| -758 | -22,277 |
| -24 | -896 |
|
|
|
|
|
|
|
|
| FINANCING ACTIVITIES |
|
|
|
|
|
|
| Proceeds from borrowings |
| 25,197 | 37,584 |
| 795 | 1,512 |
| Repayment of borrowings |
| -25,202 | -35,590 |
| -796 | -1,432 |
| Repurchase of own shares |
| - | -2,428 |
| 0 | -98 |
| Consideration received for treasure shares disposed |
| 224 | - |
| 7 | 0 |
| Transactions with Founding shareholders |
| -385 | 681 |
| -12 | 27 |
| Net cash (used in) /from financing activities |
| -166 | 247 |
| -5 | 10 |
| Net increase/(decrease) in cash and cash equivalents |
| 264 | -13,859 |
| 8 | -557 |
| Effect of exchange rate fluctuations on cash and cash equivalents |
| - | -34 |
| 0 | -1 |
| Cash and cash equivalents at beginning of year |
| 3,153 | 17,046 |
| 100 | 686 |
| Cash and cash equivalents at end of year |
| 3,417 | 3,153 |
| 108 | 127 |
-END-