Results of INVALDA group for 2006 and short-term plans

Transcription

1 Results f INVALDA grup fr 2006 and shrt-term plans Vilnius,

2 Abut us Invalda was established in 1992 during the start f the first part f privatizatin prcess. Since 1995 listed n the stck exchange. Invalda is the hlding cmpany actively managing its investments: By acquiring and restructuring businesses; By intrducing mdern management and financial management methds; By receiving incme frm managed cmpanies and/r exiting businesses and prviding high return t sharehlders f the cmpany; By diversifying risk. 2

3 Sharehlders and shares Sharehlders as f Prtin wned, including shares sld by repurchase agreements, % Nenurama UAB Dailius Juzapas Mišeikis Vytautas Bučas Alvydas Banys Darius Šulnis 9.94 Other sharehlders AB Invalda OMXV 3

4 Key management principles Cmpetitiveness we strive fr every single business f the Invalda grup t be cmpetitive and t have the best managers that wuld be mtivated and able t develp business visin, rganize a team, set ambitius gals and implement them. Independency we believe that Invalda wned businesses are independent frm each ther and culd act independently after main sharehlders are changed. Risk diversificatin striving t retain maximum stability and security, Invalda des nt act as a risk guarantr nr takes respnsibility fr separate businesses, as well as separate businesses d nt take respnsibility fr each ther. 4

5 INVALDA FINANCIAL ACTIVITY REAL ESTATE PHARMACY ROAD AND BRIDGES CONSTRUCTION FURNITURE MANUFACTURING HOTEL MANAGEMENT PRODUCTION AND SERVICES COMPANIES Services f financial brkegare. Custdy. Management f investment and pensin funds. Management f private prtflis. Crprate finance services. Investment int real estate. Real estate develpment and management. Brkerage services. Valuatin. Cnstructin and facility management services. Prductin and sale f generic drugs. Develpment f new prducts. Cntract manufacturing f pharmaceuticals. Cnstructin and repairs f bridges, viaducts and tunnels. Building and repairs f rads and streets. Prductin and sale f furniture frm bard f frame, slid wd and particle bard. Management f business class htel Hliday Inn Vilnius and ecnmy class htel Ectel Management f agricultural cmpanies. Investigatin and designing f water management bjects. Prductin f hardware articles. Cnsulting. Finasta Finasta investicijų valdymas Finasta įmnių finansai Finasta Asset Management and thers Inred Inreal Invalda Cnstructin Managemen Invalda Service Dmm and thers Sanitas Jelfa Hechst-Bitika "Kaun tiltai" "Kėdainių autmbilių keliai" "Taurakelis" "Kelprjektas" ir kt. Vilniaus baldai Girių biznas Minija and thers Valmeda Kelinių viešbučiai Agrvaldym grupė Hidrprjektas Umega Amber Viking Capital 5

6 Financial sectr

7 Prfile Finasta the largest nn-banking financial brkerage cmpany: One f the largest custdians and active financial brkers; In prcess f btaining full scpe banking license; Fcuses n investment and private banking. Finasta įmnių finansai prvides crprate finance services: One f the mst active Lithuanian players in SME segment; Outstanding lcal market knwledge. Finasta investicijų valdymas: Amng the best results in respect f return n managed investment and pensin funds in their regin; Private prtfli management; Expanding activities int Latvia. 7

8 8 Financial brkerage In 2006 Finasta: prvided brkerage services making % f annual transactins in Vilnius stck exchange ( transactins); share turnver in Vilnius stck exchange cvered % f ttal annual share turnver in Vilnius stck exchange; turnver in debt securities in Vilnius stck exchange 6.45 % f the market; At the end f 2006 capitalizatin f securities accunted by Finasta ttaled mltl r % f securities held with intermediaries registered at Central Securities Depsitry.

9 Asset management Managed funds, mltl Fund values, changes % since inceptin Investment Funds Central and East Eurpe Fund New Eurpe Fund Russian Fund Bnd Fund Ttal Pensin Funds Cnservative Investment Grwing Yield Active Investment Ratinal Risk Pensin Pensin Ttal Vluntary Pensin Funds Shares Bnds Ttal Private prtflis TOTAL

10 Financial sectr in 2006 Results: Net prfit attributable t Invalda 7.7 mltl; Net prfit f the sectr 7.9 mltl. Events: Finasta was rerganized by separating the department f crprate finance int the new cmpany Finasta įmnių finansai. 100 % f Medicins bank investicijų valdymas shares acquired. After rerganizatin Medicins bank investicijų valdymas was merged t Finasta investicijų valdymas. Offices in Kaunas and Klaipėda. In March f 2006 rep. ffice in Riga (Latvia) was pened and in Nvember the ne rep. ffice was pened in Kiev, capital f Ukraine. 10

11 Financial sectr in 2007 Frecasts: Net prfit attributable t Invalda 5.5 mltl; Net prfit f the sectr 5.5 mltl. Pririties raised by Invalda: Transfrmatin f the financial sectr cmpanies int the bank by fcussing n high level quality management, investment and private banking services; Further develpment and prfitability. 11

12 Real estate sectr

13 Prfile Investment prfile in Lithuania and Latvia: Active develpment frm land acquisitin t letting ut; Cmmercial prperties such as ffice premises and lgistic centers; Residential prperties in dwntwn and resrts: Fcused search and selectin f pprtunities; High quality and pst cnstructin services. Active trading in real estate at wn accunt. Real estate brkerage services in Lithuania, Latvia and Ukraine. Cnstructin and facility management services. 13

14 Assets In Lithuania In Latvia Buildings, units Buildings, thus.sq.m. Land plts, units. Land, hectare Offices Warehuses, lgistics Residential RE Other Ttal Land fr develpment, hectare Buildings, thus.sq.m Ttal units f real estate

15 Brkers Emplyees: in Vilnius - 43; in Kaunas -15; in Klaipėda - 12; in Riga -19; in Kiev In 2006 ttal value f assets sld using brkerage services f InReal reached 250 mltl. 15

16 Real estate sectr in 2006 Results: Net prfit attributable t Invalda 56.1 mln. Lt Net prfit f the sectr 67.3 mln. Lt. Events: Invalda Real Estate cmpleted rerganisatin, during which the activity f real estate mediatin was separated frm the activity f real estate prject develpment and management; Invalds nekilnjamj turt fndas cmpleted the acquisitin transactin f the real estate package wned by TEO LT (8 buildings, 40 thusand sq.m.); Expanding brkerage activities int Ukraine; 16

17 Real estate sectr in 2007 Frecasts: Net prfit attributable t Invalda 32.5 mltl; Net prfit f the sectr mltl. Pririties raised by Invalda: High financial return and balanced risk frm investment int the real estate; Fcussed selectin f pririty markets and segments. 17

18 Pharmacy sectr

19 Prfile Sanitas grup is amng fastest grwing cmpanies in CEE regin and becmes a significant player in the market. Prductin and sale f generic drugs under GMP. Cmpanies: Sanitas in Lithuania; Jelfa in Pland; Hechst Bitika in Slvakia. Representative ffices: Jelfa s rep. ffices in Kiev (Ukraine) and Mscw (Russia); HBM rep.ffice in Prague (Czeck Republick). Medicines are sld in 27 cuntries. 19

20 Prductin capacities (per year) Injectins preparatins 50 mln. units ampules. Tablets and capsules 100 mln. units. Ointments 4.3 mln. tubes. Hechst-Bitika, spl. s r.. Injectins preparatins 80 mln. units ampules. Tablets mln. units. Ointments 5.7 mln. tubes. Injectins preparatins - 80 mln. units ampules. Tablets - 1 bln. units. Ointments - 50 mln. tubes. 20

21 Pharmacy sectr in 2006 Results: Net lss attributable t Invalda 1.8 mltl*; Net lss f the sectr 7.3 mltl*. Įvykiai: In February a sharehlders agreement was cncluded between Invalda, hlding the largest sharehlding f Sanitas AB, several sharehlders and the investment funds Amber Trust II SCA and Citigrup Venture Capital Internatinal Jersey Limited. The agreement was signed regarding the new emissin f Sanitas AB shares intended fr the redemptin f the Plish pharmaceutical enterprise Jelfa. Sanitas acquired 100 % shares f Plish pharmaceutical cmpany Jelfa; During 2006, the turnver in Sanitas shares reached mltl and capitalizatin ttalled mltl at the end f the year. * Pssible changes 21

22 Pharmacy sectr in 2007 Frecasts: Net prfit attributable t Invalda 6.7 mltl; Net prfit f the sectr 21.3 mltl; Sales mltl; EBITDA 77.1 mltl. Pririties raised by Invalda: T achieve the status f ne f the best CEE regin pharmaceutical enterprises; Realisatin in financial results f the effect and synergy received frm the restructuring f enterprises. 22

23 Rads and bridges cnstructin sectr

24 Prfile Kaun tiltai: Operating in Lithuania, including subsidaries; Operating in Pland via jintly (tgether with partner) cntrlled tw cmpanies in Bialystk area; Specializing n the cnstructin f cmplex bridges and high quality highway cnstructin. Mre than 800 emplyees Mdern equipment and utstanding track recrd in respect f quality, timeliness and cmplexity f wrks perfrmed. Active participant in the sectr cnslidatin prcess. 24

25 Rads & bridges cnstructin sectr in 2006 Results: Net prfit attributable t Invalda 2.9 mltl; Net prfit f the sectr 7.6 mltl. Events: Kaun tiltai tgether with the partners cnsrtium has wn the cntest fr the cnstructin f the Suthern Vilnius detur, wrth 265 mltl. Due t the significant increase f investments the leading-edge asphalt mixing plant in the Baltics (320 t/hur) was purchased. Kaun tiltai started imprving business management system, envirnmental and wrk-safety standards. In 2006 the management team f Kaun tiltai was strengthened seeking t enhance the cmpany s psitin in the market. 25

26 Rad & bridges cnstructin sectr in 2007 m. Frecasts: Net prfit attributable t Invalda 2.8 mltl; Net prfit f the sectr 7.2 mltl. Pririties raised by Invalda: T enhance the psitin thrugh acquisitins and rganisatinal develpment in Lithuania and neighburing cuntries; T increase an efficiency f the enterprises and imprve the main financial indicatrs. 26

27 Furniture prductin sectr

28 Prfile Vilniaus baldai: Bard f frame prducts; Large scale prductin by using mdern prductin technlgy; Main custmer IKEA, mutually beneficial lng-term relatinships; OMX listed cmpany. Minija ir Keli ženklai: Slid wd custmized items; Small batch, flexible manufacturing prcess. 28

29 Furniture prductin sectr in 2006 Results: Net lss attributable t Invalda 5.7 mltl Net lss f the sectr 7.7 mltl 2006 was the mst difficult year fr this sectr, but prblems were identified, decisins were made and actins necessary fr situatin imprvement were started. 29

30 Baldų gamybs sektrius 2007 Frecasts: Net prfit attributable t Invalda 0.4 mltl; Net prfit f the sectr mltl; EBITDA 15.3 mltl. Pririties raised by Invalda: Efficient and cmpetitive manufacturing; Frmatin f an ptimal prtfli f the clients rders. Prfitable peratin. 30

31 Htel management sectr

32 Prfile 2 htels in Vilnius are managed: fur stars business class htel Hliday Inn Vilnius; Ecnmy class htel Ectel. Attractive gegraphical lcatin. Ttal area f buildings, sq.m Number f rms Number f cnference halls 4 3 Ttal area f cnference halls, sq.m

33 Htel management sectr in 2006 Results: Net prfit attributable t Invalda 1.8 mltl. Net prfit f the sectr 1.8 mln. Lt Events: The ccupancy f the 4 star htel Hliday Inn Vilnius increased up 61%, and f the ecnmic class htel Ectel Vilnius - up t 66% in The htel Hliday Inn Vilnius was acknwledged ne f the best htels f the Hliday INN netwrk in the service field amng 600 EMEA regin htels fr the secnd year in a rw. 33

34 Htel management sectr in 2007 Frecasts: Net prfit attributable t Invalda 1.93 mltl; Net prfit f the sectr 1.93 mltl. Pririties raised by Invalda: Further imprvement f the main indicatrs prfitability, EBITDA, ccupancy; Analysis f develpment pssibilities. In prcess f sale. 34

35 Prductin and services sectr

36 Prductin & services cmpanies in 2006 Results: Net prfit attributable t Invalda 3.1 mltl*. Net prfit f the sectr 3.3 mltl*. 100 % f Klaipėds knditerija shares were sld. *Changes pssible 36

37 Prductin & services cmpanies in 2007 Frecasts: Net prfit attributable t Invalda 1.75 mltl; Net prfit f the sectr 1.75 mltl. Invalda s plicy: T participate nly in thse nn-strategic businesses where a high rate f return and risk rati is prbable, and which require management adequate t their size. 37

38 INVALDA grup in 2006

39 Invalda (nn-cnslidated data) Assets (ttal) mln. Lt: Investments int main business mltl Investments int ther business 7.8 mltl Lans granted 47.4 mltl Other assets 0.7 mltl Equity mltl Financial liabilities 86 mltl Other liabilities 3.4 mltl Net prfit 28.8 mltl 39

40 Sectrs f Invalda grup , mltl Acquisitin cst Equity (Invalda s part) Finance Real estate Pharmacy Rads & bridges cnstr Furniture prductin Htel management Prductin & services cmpanies Ttal

41 Invalds grup in 2006 Prfit (lss), mltl Part attributable t Invalda Ttal Net cnslidated 58.5* 66.5* Financial sectr Real estate sectr Pharmacy sectr -1.8* -7.3* Rads & bridges cnstructin sectr Furniture prductin sectr Htel management sectr Prductin & services sectr 3.1* 3.3* * Changes pssible 41

42 Invalda grup frecasts fr 2007 Prfit (lss), mltl Part attributable t Invalda Ttal Net cnslidated Financial sectr Real estate sectr Pharmacy sectr Rads & bridges cnstructin sectr Furniture prductin sectr Htel management sectr Prductin & services sectr * Assumptins fr frecasts: - wn t be significant psitive r negative changes in investment prperty in the market - wn t be significant changes in the structure f the Grup ** Frecasts cnfirmed n ; in 2007 the Bard can prpse t recalculate frecasts 42

43 Changes

44 Situatin tday Owners f cntrlling blck f shares: Sharehlders as f Prtin wned including shares sld by repurchase agreements, % Nenurama UAB Dailius Juzapas Mišeikis Vytautas Bučas Alvydas Banys Darius Šulnis

45 Changes Planned changes: Dailius Mišeikis and Alvydas Banys will decrease blcks f Invalda and Nenurama shares; Darius Šulnis and Vytautas Bučas will increase blcks f Invalda and Nenurama shares; After rerganizatin Nenurama will be merged t Invalda. Situatin after changes: D.J.Mišeikis and A.Banys plan t withdraw frm active wrk. They will wn blcks f Invalda shares representing less than 10 %. 45

46 Management pinin abut share price Benchmark valuatins

47 Financial sectr We valuate this business accrding t the fllwing ratis: P/Bv - Price t bk value; P/Sales - Price t sales; P/E Price t earnings; Enterprise value t assets under management; Custdy accunted assets and market share. 47

48 Real estate We valuate this business accrding t the fllwing histrical and frecasted ratis: NAV Net asset value; NAV is calculated with the fllwing prvisins: evaluating difference between bk value and market value f prjects under management (value f assets befre develpment and invested sums). evaluating difference between latter deals real estate yield f latter deals and discunt rate applied by assessrs f grup s assets. P/NAV; P/E; Cash flws at present and discunted future cash flws, estimating frecasted results f started prjects. 48

49 Pharmacy We valuate this business accrding t the fllwing histrical and frecasted ratis: EV/EBITDA enterprise value t EBITDA; P/Sales enterprise value t sales; P/E; Prductin capacities; Securities market price; Discunted cash flws. 49

50 Rads and bridges cnstructin We valuate this business accrding t the fllwing histrical and frecasted ratis: EV/EBITDA enterprise value t EBITDA; EV/Sales enterprise value t sales; P/E; Size f signed future cntracts. Discunted cash flws. 50

51 Furniture prductin We valuate this business accrding t the fllwing histrical and frecasted ratis: EV/EBITDA enterprise value t EBITDA; EV/Sales enterprise value t sales; P/E; Prductin capacities; Discunted cash flws; Market price f buildings and land; Securities market price. 51

52 Htel management We valuate this business accrding t the fllwing histrical and frecasted ratis: EV/EBITDA enterprise value t EBITDA; EV/Sales enterprise value t sales; P/E; Htel rm price; Market price f buildings and land; 52

53 Management pinin Further t the prvided assumptins abut businesses valuatin, the management f Invalda suppse that capitalizatin f the cmpany is less than real value f equity. This situatin des nt satisfy bth the interest f sharehlders and the management f the cmpany. 53

54 Actins 1. Dividend plicy. 2. Disclsure f infrmatin. 3. Interventins int stck market by purchasing wn shares. 54

55 Dividend plicy Invalda s dividends payment plicy is stable. Dividends fr ne share 0,25 0,20 0,15 0,10 0,05 0, It will be prpsed t pay 0,25 LTL dividend fr ne share. 55 Year LTTL fr ne share % f nminal value Dividend Yield ,02 2 5, ,05 5 1, , , ,2 20 1, , ,0

56 Disclsure f infrmatin T disclse maximum infrmatin necessary fr bjective valuatin assets f Invalda grup and the future, nt nly material events. Infrmatin cannt be disclsed nly when the disclse can be restricted by signed cntracts and /r the disclse can be harmful fr the grup and cmpetitiveness f businesses. 56

57 Purchase f wn shares At present situatin when real value f equity is larger than capitalizatin, the reserve f 34.5 mltl fr purchase f wn shares is frmed. If the share price desn t reach 14 LTL till June 30, 2007, t cnvene sharehlders meeting and initiate purchase f wn shares. 57

58 Objectives Grwing by imprving! T ensure significant financial influence and rdinary financial stability with lw risk level and ethical actins; T ensure high financial return fr Invalda s sharehlders due t dividend payment and share price increase. Efficient management f businesses. Actively lk and pursue fr new pprtunities. 58

59 THANK YOU!