News
Sistema-Hals releases unaudited consolidated financial results for the first nine months of 2009
Moscow, Russia - 30 November 2009 - Sistema-Hals JSC (LSE, MICEX, RTS: HALS), one of the largest diversified companies in the real estate market of Russia and the CIS, is releasing the unaudited consolidated financial results of its activities for the first 9 months of 2009, prepared in conformity with US GAAP.
Conditions in the Russian real estate market remain challenging. The net loss of Sistema-Hals Group for the first 9 months of 2009 amounted to USD 235.7 mln. The management of the Company continues to take measures to increase revenues and reduce expenses and losses. In these market conditions the Company remains dependant on support from its major shareholders.
Andrey Nesterenko, President of Sistema-Hals commented, "The Russian real estate market is still depressed though we see some positive signs in both residential and commercial sectors. The mortgage market is recovering, investors are getting more and more active on the buy-side. Earlier in the year, investors were just looking for, and gathering information about target projects. Today both investors and tenants are ready to start negotiations on real deals. It goes without saying that major clients and investors are looking for only reliable developers which can deliver the projects they promise and can offer high class assets. I do believe that Sistema-Hals with the support of its major shareholders is among those companies that will get over the challenges the market is facing and unlock our potential for further growth".
FINANCIAL HIGHLIGHTS FOR THE FIRST 9 MONTHS OF 2009
• The consolidated revenues of the Sistema-Hals Group for the first three quarters of 2009 amounted to USD 50.9 mln. as compared to USD 248.2 mln. for the same period in 2008, a decline of 79.5%.
• The operating expenses reduced by 49.8% as compared to the same period in 2008 and amounted to USD 124.0 mln. for the first three quarters of 2009.
• The cost of sales for the 9 months of 2009 ended on 30 September reduced by 44.1% and amounted to USD 102.0 mln. as compared to USD 182.4 mln. for the same period of the previous year.
• The selling, general and administrative expenses for the first 9 months of 2009 reduced by 76.2% and amounted to USD 12.9 mln. as compared to USD 54.1 mln. for the first 9 months of the previous year.
• In the third quarter of 2009, the Company's management reversed USD 18.4 mln. provision for doubtful accounts in respect of Mirax Group as the amount was recovered.
• The operating loss of the Group for the 9 months of 2009 ended on 30 September amounted to USD 73.1 mln. as compared to the operating income in the amount of USD 1.0 mln. for the same period of the previous year.
• The OIBDA for the first 3 quarters of 2009 was negative USD 59.4 mln. as compared to the positive OIBDA of USD 11.6 mln. for the same period in 2008.
• The net loss of Sistema-Hals Group for the first 9 months of 2009 amounted to USD 235.7 mln. as compared to USD 72.5 mln. for the same period of the previous year.
• The loans and notes payable within the period under review reduced by USD 115.6 mln. or by 7.9% - down to USD 1,349.4 mln. - as compared to 31 December 2008.
• The Group's total assets as of 30 September 2009 decreased by 13.6% to USD 1,638.5 mln. as compared to USD 1,895.7 mln. as of 31 December 2008.
In accordance with its announced strategy, in May 2009 Sistema-Hals exchanged its share in Mosdachtrest OJSC (assets included land plots and cottages) and Landshaft CJSC (assets included land plots), these companies together constituted the Asset Management business segment of the Group, for a 100% stake in Lubyanka Development OJSC which owns the Central Detsky Mir building in Moscow.
In July 2009, the Company sold a 100% stake in Citi-Hals CJSC to AFK Sistema Group. This company constituted the Facility Management business segment, which was mainly focused on the management of AFK Sistema Group's offices, while Sistema-Hals strategy is focused on the development business.
The financial results of the Asset Management and Facility Management business segments are disclosed in a separate line, discontinued operations, of the unaudited financial statements for 9 months of 2009 as a result of terminated activities.
For further information:
Ulyana Denga
Investor Relations Director
tel. +7 (495) 785-4214
cell. +7 (903) 2626-529
denga@sistema-hals.ru
Anna Zavialova
Public Relations Director
tel. +7 (495) 785-7764
zavialova@sistema-hals.ru
Sistema-Hals ("the Company") is a leading diversified company in the Russian and CIS real estate market. The Company was the first Russian property developer to list its shares on the main market of the London Stock Exchange. The Company's shares are also listed on the Moscow Interbank Currency Exchange and the Moscow Stock Exchange and in the Russian Trading System Stock Exchange.
Starting operations in 1994, Sistema-Hals has successfully completed about 40 projects with a total area in the region of over 400,000 square metres, including the headquarters of DaimlerChrysler, the Hals Tower office building, the headquarters of Trubnaya Metallurgical Company, a hotel for the MaMaison chain (Orco Property Group), residential projects in Kuntsevo district.
Sistema-Hals has assembled a balanced and diversified portfolio of assets in fast-growing sectors of the market. The Company's strategy is focused on building Class A and B office space, mixed-use retail and office complexes, business-class residential buildings.
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The information in the press release may contain forward-looking statements regarding future events or the future financial performance of Sistema-Hals. 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. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date thereof or to reflect the occurrence of unanticipated events.