Investor Presentaiton
1H 2014 Gross profit analysis
Adjusted gross profit*, mln RUB
Residential real estate development
adjusted gross profit*, mln RUB
Adjusted gross profit margin*, %
5,925
439
249
4,120
455
281
5,237
3,384
5,237
3,384
43%
38%
1H 2013
1H 2014
Other segments plus elimination of inter-segment profit
■Construction services
■Residential real estate development
1H 2013
1H 2014
Residential real estate development adjusted
gross profit*, mln RUB
Adjusted gross profit margin*, %
36%
28%
1H 2013
1H 2014
•
In 1H 2014 the revenue mix shifted towards lower-margin segments (construction services and
other) due to several factors specific to this period:
high level of revenue from ExpoForum general contractor work, and
lower volume of transfers in residential real estate development due to the
construction schedule
The margin in the residential real estate development was affected by an accounting
requirement whereby the costs associated with construction of a school and pre-school for
phase III of Emerald Hills were included in the cost of the construction of the first two buildings
(No10 and No11) of the six buildings that comprise this phase of the project. As a result, these
social infrastructure costs are included disproportionately on this stage of the project. Had
these costs been spread evenly across all of the buildings, the residential development segment
adjusted gross margin for 1H 2014 would have been 40% instead of 38%. Going forward,
however, this same fact will have a positive impact on the margin of the next four buildings of
Emerald Hills phase III.
Revenue breakdown and gross profit margin (GPM), by
segment
Const.
serv.
(GPM:
7.1%)
Other
12%
Other
Const.
serv.
(GPM:
9%
8.5%)
27%
18%
RRED
(GPM:
43%)
73%
61%
RRED
1H 2013
(GPM:
38%)
Source: IFRS financial statements
*Note 5 to IFRS financial statements
Etalon Group
1H 2014
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