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This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of AFI Development Plc (the "Company") or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this document, 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. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document.
This communication is only being distributed to and is only directed at (1) qualified institutional buyers (within the meaning of Rule 144A of the United States Securities Act of 1933, as amended (the "Securities Act") or (2) accredited investors (as defined in Rule 501(a) of Regulation D adopted pursuant to the Securities Act). Any person who is not a "qualified institutional buyer" or "accredited investor" should not act or rely on this document or any of its contents.
This document contains "forward-looking statements", which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or GDRs, financial risk management and the impact of general business and global economic conditions.
Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and the Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
Neither the Company, nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document.
The information contained in this document is provided as at the date of this document and is subject to change without notice.
Disclaimer
2
•Full cycle real estate developer
•Focus on unique large scale commercial and residential projects
•Primary market: Moscow, Russia
BUSINESS
•12 years on the market
•Admitted to LSE in 2007
•Premium listing in 2010
•Free float – 35,12%
HISTORY
•Strong global brand
•Affiliate of Africa Israel Group (64,88% owner) , a major conglomerate with global focus on real estate, construction and infrastructure
BRAND
•Strong liquidity position: S$178mn as at Dec 31, 2012
•Secured financing for on-going projects
• 21% Debt to Total assets**
FINANCIAL STABILITY
•12 completed projects with total c. 600,000 sqm of space
•Impeccable credit history
•Market reputation for high quality and professional property management
TRACK RECORD
•Substantial income generating
portfolio. Major project
AFIMALL
•5 projects are next for development
•Pipeline and land bank
PORTFOLIO
** Bank loans only
AFI Development at Glance
Portfolio Value*
* Gross Asset Value of Portfolio based on C&W Valuation as for
31 Dec. 2012 and BV of Land Bank projects, Trading Properties
and Hotels
Market Cap, as of March 18, 2013 US$ 0.72 bn
Price per share as of March, 18 2013 US$ 0.68
NAV (Equity), as of Dec 31, 2012 US$ 1.63 bn
NAV per share, as of Dec 31, 2012 US$ 1.56
Portfolio Value* US$ 2.48 bn
AFIMALL
47% Delivered
25%
Next for
development
27%
Land Bank
1%
3
Current Portfolio
Note: the NOI projections are “forward looking statements” based on C&W valuation assumptions and Company estimations and they can be realized or not realized due to factors beyond the Company's control including, among others, the impact of
competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or GDRs, financial risk
management and the impact of general business and global economic conditions
Key Projects in Moscow
Yielding Assets (retail, offices and hotels)
Development Projects m
Ownership:50%
Aquamarine Complex
Four Winds
H2O Office
AFIMALL City Berezkovskaya Aquamarine II
H2O Four Winds***
Aquamarine
Hotel Paveletskaya, 1 Aquamarine III
Tverskaya
Plazas
Kosinskaya
Otradnoe Pochtovaya
Paveletskaya,
Phase # II
Kalinina Hotels**
Plaza Spa **
Berejkovskaya
Paveletskaya, 1
Tverskaya Plazas
Otradnoe Kosinskaya
Pochtovaya, Phase I
Botanic Garden
Paveletskaya,
Phase # II
Other
AFIMALL City
Land Bank and Pipeline **Paveletskaya II, Otradnoe presented as a BV
Tverskaya Ib, II
4
*Ozerkovskaya – 100%
**Outside of Moscow
** *Sold in Q4 2012
Value (C&W): US$ 1.7 bn
GLA(excl. hotels),sqm: 200K sqm
NOI stab*. (AFID share, excl. hotels):
US$ 223 mn
Value** (C&W): US$ 666 mn
GLA(excl. hotels),sqm: 252K
GSA, sqm: 574,3K
NOI stab: US$ 142,3 mn
Value (BV): US$ 23 mn
Achievements 2012 (1/2) STATUS TARGET FOR 2012 COMMENT
FINANCIAL
The Company strengthened the development block
Risk management and internal control have been improved
ACQISITION AND DISPOSITION
FOUR WINDS
OZERKOVSKAYA III
PLAZA SPA KISLOVODSK
STRENGTHEN SMT
AFIMALL PARKING
MANAGEMENT
Increased the credit line limit with VTB bank on project AFIMALL ( + USD110 mn additional
cash for the Company) with lower interest rate (8,2% vs 9,6%)
Decreased the Company average interest rate from 9,4% to 8,1%
(saving c. US$7,6 mn)
Obtained the new loan facility in the amount of US$ 220 mn with VTB to refinance
construction costs on Ozerkovskaya III project with lower interest rate
( LIBOR+5,7% vs 13%)
Made the early debt repayment with Sberbank on Ozerkovskaya III project ( US$ 47 mn)
Reimbursed the VAT in the amount of US$ 48 mn
Completed the group finance restructuring, as a result US$ 5 mn saving on income tax
DEBT SERVICE COSTS
REFINANCING
Disposal of 643 parking lots to VTB was finalized - the resulting estimated total net cash flow for the Company is US$ 57.1 mn, net profit is c. US$20 mn
The transaction relating to the disposal of 50% share in its subsidiary, Westec Four Winds Limited was finalized. The consideration is US$103.4 mn for AFID share, c. US$ 50 mn as a net profit
The company acquired the share of its partner and settled all outstanding liabilities, for a total cash consideration of US$ 227.5 million in Ozerkovskaya III project
The company acquired the shares of operating company of Plaza SPA Kislovodsk, the result: increase in revenue in US$ 1,3 mn
Main Achievements during 2012 (1/2)
6
VAT
FINANCIAL RESTRUCTURING
Achievements 2012 (2/2) STATUS TARGET FOR 2012 COMMENT
BOLSHAYA BOCHTOVAYA
PAVELETSKAYA
FOOTFALL: Daily average footfall increased 36% and reached 40K in Dec 2012 vs 28K in
Dec 2011
COLLECTIONS: The Company recognized income of US$ 3.5 mn as decrease in bad debt
provision
AFIMALL PARKING was fully constructed and put into operation (c. 2,075 parking units)
AFIMALL recognised at the prestigious “International Property Awards Europe” for
excellence in development quality and highest level of customer experience
DELIVERY: the project has been delivered in Q2 2012; operational permit is on place;
negotiations with potential buyers and tenants are in progress
DELIVERY: the project has been delivered in Q2 2012 and put into operation; the hotel
experienced significant demand from customers and has already obtained positive feedback
from its guests. The occupancy was higher than budgeted: 50% on actual vs 30% budgeted
CONSTRUCTION
KOSINSKAYA
TVERSKAYA PLAZAS
REPAIR WORKS: Performing of capital repair works has been started. The project is
planned as a mix-use complex with concept for small DIY(do-it-yourself) shops and
offices
OFFICES CLASS “A”: The process of securing approvals is ongoing. The first
milestone achieved – the land lease certificate for PLAZA IC is in place (GBA – 51K
sqm and GLA – 32,5K sqm)
DEVELOPMENT RIGHTS: Both projects are under active development stage. The
GZK and GPZU were obtained with following parameters:
- Bolshaya Pochtovaya: GBA: 170,6K sqm, where 67,8K is residential and 39,2 sqm is commercial
- Paveletskaya: GBA: 151,4Ksqm,where 61,4K is residential and 15K sqm is commercial. The
Company is working on securing the land lease agreement to allow construction in accordance with the
new development documentation as well as on the planning and design of the project.
OPERATION
AFIMALL
Main Achievements during 2012 (2/2)
OZERKOVSKAYA III
PLAZA SPA
ZHELOEZNOVODSK
7
-70
-50
-30
-10
10
30
50
70
Pri
ce
Ch
an
ge
(%
)
AFI DEVELOPMENT-GDR REG S AFI DEVELOPMENT PLC - B SHS MIRLAND DEVELOPMENT CORP LSR GROUP OJSC-GDR REGS
PIK GROUP-GDR REG S ETALON GROUP-GDR REG S RGI INTERNATIONAL LTD
Company share performance in 2012
The diagram shows
Company share price
performance over 2012.
The December 2011
value is assumed at 0
Up to 60%
Company share performance in 2012
8
0.86 0.82 0.81
0.67
0.42 0.38
0
0.2
0.4
0.6
0.8
1
LSR PIK Etalon RGI Mirland AFI Dev
14% 18% 33% 19% 58% 62%
% Discount to NAV
AFI shares –
fundamentally
undervalued stock
AFIMALL City Update (1/3)
PROJECT HIGHLIGHTS 100%
(as of December 2012) share
Total GLA(shops, offices, storage), sqm 107.2K
Total GLA shops only, sqm 96,8K
% of GLA shops only 77%
Stabilized NOI (C&W est.) US$156.9 mn
MV (C&W est.) US$ 1.160 bn
Loan balance as for December, 2012 US$ 536 mn
30K
40K
- 5.0
10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 Daily Average Footfall ('000 visitors)
Workdays average Weekends average Daily average
AFIMALL City Project Highlights
ACHIEVEMENTS in 2012:
During the year 2012 the Mall has continued to see increases in footfall, growing at the rate of c. 5% per month. The average daily footfall in December has reached c. 40K visitors
The occupancy is stable, showing rate in 77% as it was on the end of the 2011 year
Stable development and gradual occupancy rate is also the main trigger in surrounding office and residential buildings
The company refinanced the project with a total multi-currency credit line of US$ 666 mn, reducing the average interest rate from 9.6% to around 8.2%
The underground parking space, purchased in December 2011 has been put into operation and now available for all costumers, serving shopping center with c. 2,075 parking spaces
The agreement with VTB on acquisition of 643 parking lots has been finalized. The resulting estimated total net cash flow for AFI Development is US$57.1 mn and net profit expected in 2013 is circa US$20 mn
10
AFIMALL and Moscow-City Development (2/3) MOSCOW CITY DEVELOPMENT
EXISTING OFFICE COMPLEX
0 – Tower 2000
4 – Imperia Tower
9 – Capital City
10 – Naberezhnaya Tower
13a – Federation Tower (Zapad)
19 – Northern Tower
PLANNED/UNDER CONSTRUCTION
2, 3 – Evolution Tower
8 – CityPoint
11 – Transport Terminal
12 – Eurasia Tower
13b – Federation Tower (Vostok)
14 – Mercury City Tower
15 – Moscow City Government Building
16a – OKO
16b – Parking
17, 18 – Russia Tower
20 – Exposition and Business Center
OTHERS
1 – Expocenter
6, 7 – Central Core (AFIMALL
City)
2013 – section between Delovoy Center and Park Pobedi
2015 – metro line from Tretiyakovskaya till Ramenki
AFIMALL
FUTURE DEVELOPMENT OF TRANSPORTATION STRUCTURE(SUBWAY)
By the end of 2012 circa 500K sqm of office building have been completed
According JLL report as of November 2012 in 2013 additional 308K of leasable area will be build up in CityPoint, Mercury City Tower, Federation Tower (Vostok), Eurasia Towers
Employees of office tenants of Moscow City represent significant percentage of the Mall’s footfall and therefore additions to completed and let office space in Moscow City shall bring additional customers to AFIMALL City (Employees will incease mora than double)
AFIMALL
NOVATEL
AFIMALL and Moscow-City Development
11
Yielding Properties
12
*ADR, NOI – company data for hotels
Cap Rate based on C&W valuation as for 31.12.2012
**Asset sold in December 2012
Building AFIMALL Four
Winds***
Four Winds
F&R***
Berezkovskaya Paveletskaya, bld.
1
H2O Tvesrkaya
Plaza Ib
Tverskaya
Plaza II
Ozerkovskaya
III
Aquamarine
Hotel*
Plaza Spa*
Kislovodsk
Plaza SPA
Zheleznovodsk*
TOTAL
Ownership 100% 50% 50% 74% 99.1% 100% 100% 100% 50% 100% 50% 100%
Moscow Moscow Moscow Moscow Moscow Moscow Moscow Moscow Moscow Moscow
Moscow City CBD CBD CBD CBD CBD CBD
GBA, sqm 304,205 28,241 5,970 11,612 16,246 10,698 2,104 6,008 73,346 11,130 25,000 9,526 504K
GLA, sqm 107,208 22,035 5,069 10,250 14,085 8,990 1,909 6,008 55,423 159 keys 274 keys 134 keys 200K
Parking lots (total), # 2,075 138 78 150 126 81 - - 551 15 - 15
Ocupancy rate, % 77% 100% 100% 94% 93% 99% 98% 72% - 70% 63% 54%
Average rent as of
31.12.2012, $/sq m1,243 1,428 556 600 362 377 677 493 750-500 ADR 187 ADR 367 ADR 171
Class Retail Office A Street Retail Office B Office B Office B Street retail &
Office
Street retail &
Office
Office A &
Street Retail Hotel Hotel Hotel
NOI stab (C&W
est.), US mn156.9 15.9 2.0 5.8 4.6 2.9 1.4 4.3 46.7 5.0 4.6 3.5 236
NOI Year 2013 (C&W
est.), US mn 77.7 5.0 3.5 2.4 1.1 3.3 10.4 2.7 3.7 3.2 113
MV/BV (AFID
share),US$ mn1,160 160 18 32 30 19 10 31 195 34 26 24 1,738
CAP Rate** 10% 9% 9% 12% 13% 14% 12% 12% 10% n/a n/a n/a
Location Kavkaz region Kavkaz region
12
Development Update 2012 DEVELOPMENT ASSETS
FOUR
WINDS
OZERKOVSKAYA
III
PLAZA
SPA
The City is progressing with renewing and re-approving the Company’s development rights and leasehold
interests in land plots at the Plaza Ic (part of Plaza I), Plaza IIa and Plaza IV projects
In Q2 2012 the Company reclassified Tverskaya Plaza Ib and Tverskaya Plaza II from “investment properties
under development” to “investment properties”. This was also reflected in the change of valuation approach,
implemented by the independent appraiser (Jones Lang LaSalle) by valuing the assets as yielding properties,
rather than as development projects
The registration of 10 years land lease in November 2012 for Plaza 1c represents significant milestone in
the development process
Construction start in Q4 2013 for Plaza IC
The Company had to re-visit development concept of the project to build a property of higher quality
The Company is started capital repair works in the property
The project involves a construction of multistory residential micro district consisting of two phases:
Phase I – construction of 22-section residential building, named Korona (Crown), construction of infrastructure (Kindergarten, School) with total sellable area of 149,432 sqm (2,620 apartments);
Phase II – construction of 8 residential buildings, construction of infrastructure (Kindergarten, school, outdoor multi-level parking) with total sellable area of 319,775 sqm (6,247 apartments)
The design of the “Otradnoe” micro district is approved by the government of Moscow
The Company has approved a general contractor for the project
Based on the planned construction density the Company obtained “GZK” and the land plot master-plan “GPZU” in respect to the property
The development of total gross building area of 170,3K sq.m, where 67,8K sq.m of residential area, 39,2K sq.m of commercial area and 62,2K sq.m. of underground area
The Company is working on design and planning of project
TVERSKAYA
PLAZAS
KOSINSKAYA
OTRADNOE
The Company obtained “GZK” and the land plot master-plan (“GPZU”) with new parameters for the future development. GBA of the project is 151,3K sq.m, where 61,4K sq.m of residential area, circa 15K sq.m of commercial area and 57,3K sq.m of underground space*
The Company is currently working on obtaining land lease agreement for construction in accordance with the development plan
Book Value of the project is US$ 12 mn; MV - US$ 117 mn
OTRADNOE
(ODINTCOVO)
POCHTOVAYA
PAVELETSKAYA
PARAMETERS:
Type: Office
GBA, sqm: 169,7K
GLA, sqm: 101,4K
• Ic: 32,5K
• Iia: 7,6K
• IV: 61,4K
Total MV(C&W): US$ 306,6 mn
As of 31.12.2012
PARAMETERS:
Type: Mix
GBA, sqm: 111,7K
GLA, sqm: 90,3K
MV(C&W): US$ 102,7 mn As of 31.12.2012
PARAMETERS:
Type: Residential
GBA, sqm: 170,4K
GSA/GLA, sqm: 57K/34K
MV(C&W): US$ 141,3 mn As of 31.12.2012
PARAMETERS:
Type: Residential
GBA(Phase I), sqm: 200,8K
GSA(Phase I total), sqm: 149,4K
PARAMETERS:
Type: Residential
GBA, sqm: 151,4K
GSA/GLA, sqm: 48K/26K
MV(C&W): US$ 117,4 mn
As of 31.12.2012
Kalinina Spa Hotel Development Update 2012
*Do not include reconstructed
buildings
14
TVERSKAYA
Extensive land bank
Land bank – projects the Company is currently put on hold
Land bank strategy
Activate projects upon securing required financing and evaluation of demand level from prospective tenants/buyer
Full flexibility regarding future development in various cycles of the economy – the major competitive advantage for the
Company
Pipeline and Land Bank
Project Type Land (ha) GBA upon completion (sqm) BV as of 31.12.2012, US$ ‘000
Park Plaza Kislovodsk Hotel resort 5.3 40,000 8,000
Versailles, Kislovodsk Hotel resort 0.6 12,350 9,000
Ruza Mixed use 387 n/a 4,000
St. Petersburg Mixed use 3.07 n/a 2,000
TOTAL 23,000
Note: MV upon completion and GBA upon completion are “forward looking statements” based on JLL valuation assumptions and they can be realized or not realized due to factors beyond the Company's control including, among
others, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of
our shares or GDRs, financial risk management and the impact of general business and global economic conditions
Pipeline and Land Bank
15
Q1 2012 Q2 2012 Q3 2012 2011
(1) Construction consulting/management services 1.5 0.3 0.4 0.3 2.5 1.0
(2) Rental income 35.3 36.8 37.4 36.5 146.0 117.0
(3) Sale of residential 3.5 4.1 4.8 1.8 14.1 15.9
(4) TOTAL REVENUE 40.3 41.1 42.6 38.6 162.6 133.9
(5) Other income (0.2) 2.2 0.5 0.8 3.3 0.7
(6) Operating expenses (16.3) (19.0) (18.3) (20.9) (74.4) (72.1)
(7) Administrative expenses (3.4) (9.9) (3.0) (4.1) (20.4) (30.3)
(8) Cost of sales of residential (1.9) (3.2) (3.7) (0.5) (9.2) (10.4)
(9) Other expenses (0.2) (0.1) (1.2) (1.1) (2.6) (2.3)
(10) TOTAL EXPENSES (22.0) (30.0) (25.6) (25.8) (103.4) (114.4)
(11) GROSS PROFIT 18.3 11.2 17.0 12.8 59.3 19.5
(12) Profit on disposal of subsidiaries 2.7 2.7
(13) Impairment of prepayment for investments - - - - - (1.2)
(14) Valuation gains on investment property 1.1 (173.5) (73.2) (0.4) (246.1) 268.0
(15) Negative goodwill - - - - - -
(16) Impairment loss for trading property and hotels - (65.4) - - (65.4) 1.0
(17) RESULTS FROM OPERATING ACTIVITIES 22.1 (227.7) (56.2) 12.3 (249.6) 287.3
(18) Finance income 2.1 1.9 2.1 5.4 9.3 8.2
(19) Finance expense (15.9) (17.7) (13.4) (14.3) (60.5) (43.3)
(20) FX Gain/( Loss) 7.8 (11.1) 17.1 2.1 17.3 (5.6)
(21) Impairment of financial asset - - - - - -
(22) Net finance income/(costs) (6.1) (26.8) 5.7 (6.8) (34.0) (40.6)
(23) PROFIT BEFORE INCOME TAX 16.0 (254.6) (50.5) 5.5 (283.5) 246.6
(24) Current income tax (0.3) (1.2) (1.5) (1.6) (4.6) (13.6)
(25) Deferred income tax (7.8) 7.2 16.1 (2.9) 12.6 (61.5)
(26) PROFIT FROM CONTINUING OPERATION 7.9 (248.5) (35.9) 1.0 (275.5) 171.5
# ITEM ('000) Q4 2012 2012
Income Statement
17
Revenues - up 21% year-on-year to
US$163 mn driven by higher rental
income. AFIMALL City contribution
at US$81.4 mn
Gross profit - up by three times
( 203%) year-on-year to US$59 mn
on stronger revenues
Decrease in bad debt provisions due to the
strong collection in 2012
17
Loans and Cash Position as of Dec 31, 2012
*
*
**
***
Gross balance of the loan portfolio (as of December 31, 2012) – US$ 555,7 mn;
Total cash balance (as of December 31, 2012) – US$ 178 mn
AFIMALL
Liquidation Value of the property should be higher than sum of the outstanding principal and six months interest
Q4 Revenue: not less than US$ 19,8 mn (including VAT)
As of December, 2012 the Company is in line with the covenants
Balance as of Dec-
31, 2012Maturity
(US$ mn) (dd.mm.yy)
RCB $309 - 3-month LIBOR +
6,7%USD 01.04.2018
RCB $226 $131 9.5% RUB 01.04.2018
Total AFIMALL $535.8
Ozerkovskaya III (100%) VTB $0 $220 3-m Libor+5,7% USD 26.01.2015
Plaza SPA Zheleznovodsk Sberbank $20 - 6.75% RUB 20.12.2014
Total/Blind interest rate 555.7 8.1%
Total
Interest payments $64.6
Repayments $1.1
Currency
AFIMALL (Refinance)
Project Lending bankAvailable
(US$ mn)Nominal Interest rate
$0.0
$2.4
$1.1
Debt service expected up to 31.12.2013
VTB Sberbank
$62.1
18
19
Balance Sheet
31.12.2012 31.12.2011
US$ mn US$ mn US$ mn %
(1) Investment property 1486.4 1403.7 82.7 6%
(2) Investment property under development 568.2 983.7 (415.5) (42%)
(3) Property, plant and equipment 102.9 92.0 10.9 12%
(4) Long-term loans receivable 0.8 0.0 0.7
(5) VAT recoverable 0.6 5.4 (4.8)
(6) Goodwill 0.2 0.2 (0.0) 0%
(8) Inventory of real estate 0.0 66.2 (66.2)
(9) Non-current assets 2159.0 2551.2 (392.2) -15%
(11) Trading properties 2.1 11.1 (8.9) (81%)
(12) Trading properties under construction 141.8 129.6 12.2 9%
(13) Inventory 1.1 0.7 0.5 71%
(14) Short-term loans receivable 0.1 0.8 (0.7) (88%)
(15) Trade and other receivables 81.4 107.2 (25.7) (24%)
(16) Cash and cash equivalents 178.2 84.8 93.4 110%
(17) Current assets 404.7 334.1 70.7 21%
(18) Assets held for sale 185.9 185.9
(19) TOTAL ASSETS 2749.6 2885.3 (135.6) -5%
(20) Equity
(21) Share capital 1.0 1.0 0.0 0%
(22) Share premium 1763.4 1763.4 0.0 -
(23) Translation reserve (144.6) (178.5) 33.9 (19%)
(24) Retained earnings 9.7 277.5 (267.8) (97%)
(25) Equity attributable to owner of the Company 1629.5 1863.5 (234.0) (13%)
(26) Minority interest (3.0) 3.9 (6.9) -177%
(27) TOTAL EQUITY 1626.5 1867.4 (240.8) -13%
(28) Trade and other payables 38.3 71.6 (33.3) (46%)
(29) Long-term loans and borrowings 554.6 528.1 26.4 5%
(30) Deferred tax liabilities 104.6 142.1 (37.5) (26%)
(31) Deferred income 20.2 22.6 (2.5) (11%)
(32) Non-current liabilities 717.6 764.5 (46.8) -6%
(33) Short-term loans and borrowings 17.3 99.0 (81.6) (82%)
(34) Trade and other payables 273.5 154.1 119.4 78%
(35) Income tax payable 0.2 (0.2)
(36) Current liabilities 290.9 253.3 37.6 15%
(37) Liabilities held for sale 114.5 114.5
(38) TOTAL LIABILITIES 1123.0 1017.7 105.3 10%
(39) TOTAL EQUITY AND LIABILITIES 2749.6 2885.1 (135.5) (5%)
# NARRATIVE Changing
Strong cash position with US$178 million in cash and cash equivalents as
at 31 December 2012, compared to US$85 million as at 31 December
2011
• Increase in cash balance attributed to the disposal of Westec Four
Winds Ltd. and parking areas at AFIMALL City to JSC VTB Bank
Low level of debt to equity ratio ( 35%)
Investment property is significant part of total asset portfolio (60%)
• (2) The difference in IPUD is a result of Ozerkovskaya III project transfer from
IPUD to IP and revaluation made in Q2 2012
• (5) The amount of VAT, which was received back during the period
• (8) Botanic Garden write-off in Q2 2012
• (11) Sale of apartments and parking lots
• (15) The amount 107,2 included 21,9 mn USD VAT reimbursement during 2012
year
• (18) W4W
• (33) The amount of US$ 273 mn includes US$ 61 mn of advance payment for the
parking disposal to VTB bank and US$ 100 mn of advance payment for Four Winds
project
• (36) W4W
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PROJECT Book Value Bank loan
31.12.2012 31.12.2012
AFI Mall 1,160 (536) 624
Four Winds building (50%) 160 (81) 79
Berezkovskaya (100%)* 43 43
Paveletskaya I (1) 30 30
Four Winds fitness & retail (50%) 18 18
Plaza H20 19 19
OZE Phase III (Аквамарин, №22-24, офисы) - 50% 194 194
Plaza Ib 10 10
Plaza II 31 31
TOTAL INVESTMENT PROPERTY: 1,664 (617) 1,047
Ozerkovskaya III (50%) 0 0
Plaza Ic 107 107
Plaza II a 32 32
Plaza IV (100%)** 168 168
Kosinskaya 103 103
Bolyshaya Pochtovaya 141 141
Paveletskaya II 12 12
Ruza 4 4
St. Petrsburg 2 2
TOTAL INVESTMENT PROPERTY UNDER DEVELOPMENT: 569 0 569
Four Winds II 1 1
Ozerkovskaya Phase II (26) 1 1
TOTAL TRADING PROPERTY: 2 0 2
Aquamarine/Ozerkovskaya 26 34 34
Plaza Spa Kislovodsk (Tirel) (50%) 26 26
Kalinina 24 (20) 4
Pyatigorskaya (Park Plaza Kislovodsk) 8 8
Versailles (Kislovodsk) 9 9
TOTAL PROPERTY PLANT AND EQUIPMENT: 102 (20) 82
Odintsovo-Otradnoeye 112 112
AFIMALL parking sold to VTB 30 30
TOTAL TRADING PROPERTY UNDER DEVELOPMENT: 142 0 142
TOTAL PORTFOLIO: 2,479 (637) 1,842
Portfolio NAV
Portfolio NAV as of December,31 2012 Portfolio NAV as of December,31 2012
• Total projects portfolio - US$2.5
bn as at 31 December 2012
• Debt/BV of Portfolio – 25%
• Yielding Assets (Investment
Property and Trading Property)
represents 71% in total BV of
Portfolio
• As per last valuation report the value of
Paveletskaya 2 is 117M
Notes:
(1) AFID share in Berezkovskaya is 74%, the asset presented at 100% due to its full consolidation
(2) AFID share in Plaza IV is 100%, the asset presented at 100% due to its full consolidation
Gross Asset Value, based partially on the valuation of our projects portfolio independently verified by
Cushman & Wakefield and partially on book cost,
Contact Information
Registered office AFI DEVELOPMENT PLC 25 Olympion St., Omiros & Araouzos Tower, 3035 , Limassol, Cyprus. Tel: +357 25 340 058 Principal office of operating subsidiary AFI RUS 16 A Berezhkovskaya Embankment, building 5, Moscow, 121059, Russian Federation. Tel: +7 495 796 99 88 http://investors.afi-development.ru
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