Post on 27-Dec-2015
BEARS LOGISTIC CENTERBEARS LOGISTIC CENTER
Kyiv 2007
ProjectProject««Building of network of specialized logistic centers Building of network of specialized logistic centers
for agricultural products storagefor agricultural products storage»»
Bears Food Ingredients ConcernBears Food Ingredients ConcernOrganizational structureOrganizational structure
President
Food Ingredientsbusiness
Commercial propertydivision
Commercial property divisionCommercial property division Organizational structureOrganizational structure
Director
Bears CenterLtd
PAPBSLtd
Bears Logistic CenterOJSC
Activity SpheresActivity Spheres
• Building of industrial properties
• Managing industrial property (Cherkassy)
• Support function for main food ingredients
business
• Bears-Logistic is looking currently for
strategic partner (preferably international)
for common logistic project development
Bears-Logistic-Center
Strategy of project developmentStrategy of project development
Bears LogisticCenter
Ltd
Bears Logistic Cherkassy
Ltd
Bears Logistic Brovary
Ltd
Bears LogisticRovno
Ltd
Bears Logistic Zhitomir
Ltd
Bears Logistic Borispol
Ltd
Bears Logistic Odessa
Ltd
- Bears Logistic Center is planning to create a network of logistic centers Bears Logistic Center is planning to create a network of logistic centers
- The first logistic distributive center in Kalinovka village (Brovarskoy district) with the - The first logistic distributive center in Kalinovka village (Brovarskoy district) with the
total area for first stage of 7 000 sq meters will be launched in the fourth quarter 2007total area for first stage of 7 000 sq meters will be launched in the fourth quarter 2007
- During the following four years we plan to place in operation about 6 500 sq meters of - During the following four years we plan to place in operation about 6 500 sq meters of
warehouses per year in Zhytomyr, Boryspol and other directions warehouses per year in Zhytomyr, Boryspol and other directions
- The total area of the centers will be 33 000 sq meters with investment amounting to - The total area of the centers will be 33 000 sq meters with investment amounting to
$26 m during the next five years.$26 m during the next five years.
Strategy of project developmentStrategy of project development
Strategy of project developmentStrategy of project developmentProject calendar for 2007 – 2011
2008
2008
2009
2009
2010
2010
2011
2011
2007
2007 Putting office and storage facilities
complex into operation В-class5500,0 sq.mCherkassy
Construction of warehouse complexА-class
3500,0 sq.mBears Logistic Zhitomir Ltd
Construction of warehouse complexА-class
3500,0 sq.mBears Logistic Borispol Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Zhitomir Ltd
Construction of warehouse complexА-class
3500,0 sq.mBears Logistic Rovno Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Brovary Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Borispol Ltd
Construction of warehouse complexА-class
3500,0 sq.mBears Logistic Odessa Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Odessa Ltd
Construction of warehouse complexА-class
7000,0 sq.mBears Logistic Brovary Ltd
MarketingMarketing
Proportion of storage facilities
of A, B, C, D classes
MarketingMarketing
Total volume of storage facilities available (A, B-class), sq. m
120000160000
225000
405000
40 000
65000
180000
168000
0
100000
200000
300000
400000
500000
600000
Existing volume New offers
2005 2006 2007 2008
Technological descriptionTechnological description
Compliance with the Compliance with the requirements to A-class requirements to A-class warehouseswarehouses
Technological descriptionTechnological description
Location in close proximity to main Location in close proximity to main highwayshighways;;
One-stored building, ceiling height 10 One-stored building, ceiling height 10 m and morem and more;;
Concrete floors with anti-dust Concrete floors with anti-dust surface;surface;
Floor loading - Floor loading - 5,05,0 tones tones/1/1 sq sq..mm Column gridColumn grid– 12х18– 12х18 m m;;
Technological descriptionTechnological description
Availability of office space.Availability of office space. No less than No less than 50% 50% warehousing areas warehousing areas
have special storage conditions for have special storage conditions for agricultural products.agricultural products.
Professional operator at agricultural Professional operator at agricultural wholesale marketwholesale market..
Company specialized in commercial Company specialized in commercial property managementproperty management..
Technological descriptionTechnological description
Security system;Security system; Autonomous heat and water supply Autonomous heat and water supply
systems;systems; Backup power supply;Backup power supply; Automatic fire alarm and fire fighting Automatic fire alarm and fire fighting
systems;systems; Air conditioning and ventilation systems;Air conditioning and ventilation systems; No less than 1 dock per 500 sq. m of No less than 1 dock per 500 sq. m of
storage space. storage space.
Technological descriptionTechnological description
Office and storage facilities complex in Office and storage facilities complex in operation (Cherkassy)operation (Cherkassy)
Income and salesIncome and salesProject calendar for 2007 – 2011
2008
2008
2009
2009
2010
2010
2011
2011
2007
2007 Putting office and storage facilities
complex into operation В-class5500,0 sq.mCherkassy
Construction of warehouse complexА-class
3500,0 sq.mBears Logistic Zhitomir Ltd
Construction of warehouse complexА-class
3500,0 sq.mBears Logistic Borispol Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Zhitomir Ltd
Construction of warehouse complexА-class
3500,0 sq.mBears Logistic Rovno Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Brovary Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Borispol Ltd
Construction of warehouse complexА-class
3500,0 sq.mBears Logistic Odessa Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Odessa Ltd
Construction of warehouse complexА-class
7000,0 sq.mBears Logistic Brovary Ltd
Selling a part of warehouse А-class
3000,0 sq.mBears Logistic Brovary Ltd
Selling a part of warehouse А-class
3000,0 sq.mBears Logistic Zhitomir Ltd
Selling a part of warehouse А-class
3000,0 sq.mBears Logistic Borispol Ltd
Selling a part of warehouse А-class
3000,0 sq.mBears Logistic Odessa Ltd
Income and salesIncome and sales
Sales revenue forecastSales revenue forecastItem, USD 2007 2008 2009 2010 2011
Sales Revenue (managing company) 303 000 469 500 469 500 489 975 489 975
Rent (warehouses) 480 000 1 008 000 1 512 000 2 116 800
Rent (offices) 768 000 806 400 806 400 846 720
Revenue from warehouses disposals 3 500 000 3 500 000 3 500 000 3 500 000
Warehousing services (own warehouses) 120 000 252 000 378 000 529 200
Warehousing maintenance (for disposed warehouses) 18 000 75 600 178 605 333 396
Total Revenues, USD 303 000 5 355 500 6 111 500 6 864 980 7 816 091
Financial indicators, 000 USDFinancial indicators, 000 USD From From 2007 2007 to to 2011 2011 Revenue is constantly increase fromRevenue is constantly increase from 0,3 0,3 MUSD up to MUSD up to 7,8 7,8 MUSDMUSD. . Project show profit already starting from second year. In Y2008 Net Profit will be equal to Project show profit already starting from second year. In Y2008 Net Profit will be equal to 1,7 1,7 MUSD and in MUSD and in
2011 2011 will increase up to will increase up to 2,9 2,9 MUSDMUSD. . GPM during whole period is on very height level GPM during whole period is on very height level 58-65% - 58-65% - this is significant benefits for this project and this is significant benefits for this project and
underline the height investment attraction for this projectunderline the height investment attraction for this project EBITDAEBITDA indicator is constantly increase from 2.9MUSD in Y2008 up to 4.8 MUSD in Y2011indicator is constantly increase from 2.9MUSD in Y2008 up to 4.8 MUSD in Y2011 NOPAT will increase from 2MUSD inNOPAT will increase from 2MUSD in 2008 2008 up to 3.2 MUSD inup to 3.2 MUSD in 2011 2011
Capital investments and recurrenceCapital investments and recurrence At the end of Y200At the end of Y2006 6 the total fixed assets cost was equal to the total fixed assets cost was equal to 4,6 4,6 MUSD from MUSD from
which 3.5MUSD was share capital and 1.1MUSD – long term financingwhich 3.5MUSD was share capital and 1.1MUSD – long term financing Total investment forecast for 2007-2011 makes up 14.6 MUSD.Total investment forecast for 2007-2011 makes up 14.6 MUSD. The expected investments into fixed assets till the end of 2011 make up 13.5 The expected investments into fixed assets till the end of 2011 make up 13.5
MUSD. The rest 1.1 MUSD will be used as investment into WCMUSD. The rest 1.1 MUSD will be used as investment into WC The structure of capital: in 207 will consist from 5.8 MUSD of share capital and The structure of capital: in 207 will consist from 5.8 MUSD of share capital and
1.8 MUSD of long-term credits. in 2011 we expect to have 12.1 MUSD of share 1.8 MUSD of long-term credits. in 2011 we expect to have 12.1 MUSD of share capital and 2.5 MUSD of long-term credits.capital and 2.5 MUSD of long-term credits.
The suggested strategy will ensure the increase of payback on the invested The suggested strategy will ensure the increase of payback on the invested capital from capital from -0,5% -0,5% in 2007 to 22% in 2011.in 2007 to 22% in 2011.
Cash FlowCash Flow
Positive Cash Flow are generated already started from Y Positive Cash Flow are generated already started from Y 20092009
Payback period fro investors with 2.8 MUSD investments will be Payback period fro investors with 2.8 MUSD investments will be less then three yearsless then three years
Market valueMarket value The calculation of the Group’s market value is based on the Company strategy and discounted cash-flow. The calculation of the Group’s market value is based on the Company strategy and discounted cash-flow.
At the same time the company’s value is calculated based on EBITDA (starting from 2008) indicator with At the same time the company’s value is calculated based on EBITDA (starting from 2008) indicator with the estimation of averaged market value. By the end of 2007 the company’s market value will amount to the estimation of averaged market value. By the end of 2007 the company’s market value will amount to circa 7,5 MUSD USD and will continued grow up to 2circa 7,5 MUSD USD and will continued grow up to 244 MUSD till Y2011. MUSD till Y2011.
Calculation discounting rate – 12% (in compliance with the interest rate of loan capital).Calculation discounting rate – 12% (in compliance with the interest rate of loan capital). The market value will grow owing to the increasing trust of the market to the Group’s long-term strategy. The market value will grow owing to the increasing trust of the market to the Group’s long-term strategy.
By the end of 2011 the OJSC Bears-Logistic-Center Equity market value will make over 17.3 MUSD.By the end of 2011 the OJSC Bears-Logistic-Center Equity market value will make over 17.3 MUSD. There is possibility to revaluate FA taking into account assumption of premises price increase. At the end There is possibility to revaluate FA taking into account assumption of premises price increase. At the end
of Y2011 even using current sales price the total FA value will be equal to circa 31 MUSD.of Y2011 even using current sales price the total FA value will be equal to circa 31 MUSD. Thus will give us aThus will give us added value from Real Estate MV over 11 MUSD.dded value from Real Estate MV over 11 MUSD.
Project risksProject risks
Lack or reduction of demandLack or reduction of demand.. Commercial risksCommercial risks.. Strategic risksStrategic risks.. Political risksPolitical risks.. Risks connected to goods supplyRisks connected to goods supply..
Shareholder benefitsShareholder benefits The Group’s financial indicators allow paying dividends The Group’s financial indicators allow paying dividends
at a level of 30% starting from Y2009 at a level of 30% starting from Y2009 Value added for the Group’s shareholders will equal to Value added for the Group’s shareholders will equal to
26.4 MUSD and will consist out of26.4 MUSD and will consist out of::• dividendsdividends – 1,7 – 1,7 MUSD MUSD;;• the increase of shares’ market valuethe increase of shares’ market value– 14,9– 14,9 MUSD MUSD;;• Added value from Real Estate MVAdded value from Real Estate MV – 9,8 – 9,8 MUSD MUSD..
Proposal for InvestorProposal for Investor and his and his benefitsbenefits
Investor entering schemeInvestor entering scheme.. We propose next scheme for investor entering:We propose next scheme for investor entering:Sales of 40% of OJSC Bears-Logistic-Center shares to investor in 3-rd Sales of 40% of OJSC Bears-Logistic-Center shares to investor in 3-rd quarter 2007 for amount equal to 2.8 MUSDquarter 2007 for amount equal to 2.8 MUSD by statutory fund increasingby statutory fund increasing
Managing Company OJSC Bears-Logistic-
Center100% - 7,0MUSD
Bears Logistic Zhitomir Ltd.
Bears Logistic Brovary Ltd.
Project Ownership Structure Scheme Y 2007.
Bears Logistic Boryspil Ltd.
Shareholder60% - 4,2MUSD
Investor40% - 2,8MUSD
Proposal for InvestorProposal for Investor and his and his benefitsbenefits
Company Market Value in YCompany Market Value in Y 2011. 2011.
Managing Company OJSC Bears-Logistic-
Center100% -
30,9MUSD
Bears Logistic Zhitomir Ltd.
Bears Logistic Brovary Ltd.
Project Ownership Structure Scheme Y 2011.
Bears Logistic Boryspil Ltd.
Shareholder60% - 18,5MUSD
Investor 40% - 12,4MUSD
Proposal for InvestorProposal for Investor and his and his benefitsbenefits
Sales Revenue Sales Revenue 2007-20112007-2011
-259
1 7201 951
2 336
2 874
688 780934
-104
1 150
-500
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2007 2008 2009 2010 2011
Total Sales Revenue
Investors benefits
Proposal for InvestorProposal for Investor and his and his benefitsbenefits
Value added for the Investors will equal to Value added for the Investors will equal to 10,5610,56 MUSD and will consist out ofMUSD and will consist out of::• dividendsdividends – 0,68 – 0,68 MUSD MUSD;;• the increase of shares’ market valuethe increase of shares’ market value– – 5,965,96
MUSDMUSD;;• Added value from Real Estate MVAdded value from Real Estate MV – – 3,923,92 MUSD MUSD..
Proposal for InvestorProposal for Investor and his and his benefitsbenefits – – Construction firmConstruction firm
Within the bounds of this project the Construction Within the bounds of this project the Construction firm is offered to become a Co-investor of the firm is offered to become a Co-investor of the “Bears Logistic Center” Project.“Bears Logistic Center” Project.
The Investor is offered to become a prime The Investor is offered to become a prime contractor of construction works of all other contractor of construction works of all other posterior projectsposterior projects..
The potential Investor is offered to enter the The potential Investor is offered to enter the
Project withProject with 40% 40% by means of supplementary by means of supplementary emission at the rate of emission at the rate of 2 800 2 800 MUSDMUSD. .
Proposal for InvestorProposal for Investor and his and his benefitsbenefits – – Construction firmConstruction firm
Additional benefit of the shareholder – prime Additional benefit of the shareholder – prime contractor since contractor since 20072007 till till 2011 2011 will amount will amount to to 5,3 5,3 MUSDMUSD
350000 300000 300000 300000 300000
840000
720000 720000 720000 720000
0
200000
400000
600000
800000
1000000
1200000
1400000
2007 2008 2009 2010 2011
Benefits of the main works
Benefits of main contract works
Proposal for InvestorProposal for Investor and his and his benefitsbenefits – – Construction firmConstruction firm
In 5 years the Investor – Construction firm will collect an In 5 years the Investor – Construction firm will collect an extra income amounting to extra income amounting to 15 830 15 830 MUSDMUSD ( (includingincluding 680680 USD USD as dividends and as dividends and 55 270 270 MUSDMUSD as a profit on as a profit on implementation of building and construction worksimplementation of building and construction works).).
Development strategy for Development strategy for 20120122--20162016
Network of specialized logistic centers in whole Ukraine Network of specialized logistic centers in whole Ukraine developmentdevelopment
Project Calendar 2012 – 2016.
2013
2013
2014
2014
2015
2015
2016
2016
2012
2012 Construction of warehouse complex
А-class3000,0 sq.m
Bears Logistic Kharkiv Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Donetsk Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Dnepropetrovsk Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Odesa Ltd
Construction of warehouse complexА-class
3000,0 sq.mBears Logistic Lviv Ltd
Development strategy for Development strategy for 20120122--20162016
Till the end of Till the end of 2016 2016 Bears Logistic Center Bears Logistic Center plans to build minimum 30 000 sq.m of plans to build minimum 30 000 sq.m of warehouses and 3 000 sq.m of office warehouses and 3 000 sq.m of office space in regional centers of Ukraine. space in regional centers of Ukraine.
At the same time turnover will grow up At the same time turnover will grow up over 15 MUSD over the yearover 15 MUSD over the year
Company Market value will grew up till Company Market value will grew up till 2016 over 50 MUSD2016 over 50 MUSD