RBI Holding Published 2009 Financial Results According to International Financial Reporting Standards (IFRS)

 RBI Holding has published 2009 financial reports according to International Financial Reporting Standards (IFRS). 2009 was a crisis year for developers, they had to look for new financing sources, while population purchasing power was declining and bank loans were actually not available. Each company was looking for its own variants and schemes of survival. By the end of the year the customers had made their choice and purchased apartments only from reliable companies with stable operations. RBI Holding financial results for 2009 demonstrate stable growth, which is an obvious confirmation of efficiency of the company policy oriented to profitability improvement, both for the company as a whole and for individual projects.

The holding net income for 2009 more than doubled to 392 million rubles, as compared with 167 million rubles in the previous year. EBITDA increased by 69% and reached the level of 445 million rubles as compared with 264 million rubles in 2008 г. Totally during the last 2 years EBITDA has grown by 2,4 times. The Holding projects’ efficiency also increased in 2009 г, which is confirmed by the gross margin growth from 31% in 2008 to 42% in 2009. 

Comments by Alexey Efremov, CFO of RBI Holding:

«Debt/EBITDA ratio is an important indicator of a developer’s financial stability. The ratio level between 3 and 5 is considered normal for the Russian construction industry. As a result of measures taken in 2009 to reduce our debts, we managed to put down this ratio to 1, which is an exceptional achievement for the development market during the crisis year. Availability of sufficient free cash allowed us to flexibly manage the debt level and pay back part of the loans before term. In total we used 1,1 billion rubles from own funds for loans repayment.

Debt to Equity ratio shows that the company attracted only 40 kopecks of bank loans for each ruble of own investments into projects, which was achieved by flexible management of the debt burden.

It is very important, first of all for our customers. It is a guarantee of financing sufficiency for the full completion of the company’s current projects. We are conservative in our financial policy and have often stated that we are not eager to get money at all costs. We understand our social responsibility of a developer towards people who are waiting for apartments we build, and we are very careful with our cashflow management. Our objective is to sell only that amount of sq.m. which is necessary for the current project works financing.

The reporting data indicate the increase in efficiency of the business as a whole. Such result was achieved with more efficient project management under crisis conditions, and in particular, by a complex of measures to optimize costs and by introduction of strict tender procedures. As a result, commercial expenses decreased by 27% and administrative expenses - by 25%, as compared with 2008.

In 2009 Holding actively developed three projects: “Privilegiya” residential complex on Vasilievsky Island, “Tavrichesky” elite residential house at 4 Chernyshevsky Pr., and “Dom U Rechnogo Vokzala” (the House Near the Riverside Station), a new project in Nevsky District that was launched in the end of the year. In 2010 г. we have 358 000 sq.m. of residential and commercial real estate in the stages of design and construction. Our key task is to expand our land portfolio, and it means that our financial policy must be structured in such way that any moment when we have interesting land offers, we could finance the land purchase». 

The detailed information about financial results of the Holding companies is published in the section «About the Holding/Development Dynamics” of the Holding website.