A carefully selected portfolio of projects, growth of key financials, and a balanced leverage help INTECO maintain resilience and ensure business continuity amid any market backdrop.
- Government stake
The Company’s resilience builds on the government involvement. Since 2020, PJSC Bank TRUST, which is 97.7% owned by the Bank of Russia, has been INTECO’s sole shareholder.
- Use of escrow accounts to cover project financing RUB 31.2 billionproject financing as at 31 December 2021RUB 40.1 billionheld in escrow accounts as at 31 December 20211.3Ratio of project financing coverage from funds in escrow accounts
- Trusted partner banks
Our strategic partners include Bank Otkritie Financial Corporation, DOM.RF and Sberbank, with whom we deal at arm’s length.
- Strong margins 36%EBITDA margin for 2021
- Zero FX debt
Rouble loans account for 100% of the loan portfolio.
- Competitive cost of funding 4.93%weighted average interest rate on loans as at 31 December 2021
- Low Net debt / EBITDA 1.08Net debt / EBITDA as at 31 December 2021
Efficient business processes
As part of transition to the new business model, most of INTECO’s business processes were transformed and streamlined enabling the Company to focus purely on investment and development. General contracting, general design and operation of buildings have been outsourced.
To ensure efficient operation of its business model, INTECO is committed to selecting the best partners, with a focus of diversifying contractors and engaging predominantly market leaders.
For more information, see the Partners section.
All INTECO’s key processes driving value creation have been elaborated in detail and are carefully regulated. This ensures clarity as to the allocation of roles of all process participants during project implementation.
INTECO relies on KPIs decomposition from the top management level to the line personnel level, which is key to achieving its strategic goals. KPIs are also set for project teams to achieve the key targets of development projects.
The Company has in place a multi-tier system of business process audits performed both by internal control functions and the shareholder.
Well-established business processes enable the Company to quickly adapt to crisis. They helped INTECO successfully tackle COVID-19 while achieving strong operating results and meeting all obligations to partners and customers.
Amid the market environment of 2022, the Company keeps fulfilling its obligations in full, despite the imposed import and logistics restrictions. Currently, INTECO is looking into finding alternatives with the same top-notch level of quality.
At INTECO, project management is based on a matrix approach. This means that project teams are comprised of employees from different functional units, making it possible to achieve talent synergies, share experience and follow unified business process standards.
INTECO seeks to strengthen its resilience and ensure uninterrupted operation by implementing a comprehensive digitalisation programme covering all business processes. At the time the report was prepared, the Company was assessing the risks of limitations on imported equipment and software, considering options to switch to Russian-made software.
For more information, see the IT Strategy section.
INTECO recognises the importance of ESG principles and remains committed to sustainable practices despite the challenging market environment. It keeps developing green construction and taking care of our customers and employees while fulfilling all its obligations to partners and the shareholder, and upholding business transparency and efficiency.
For more information, see the Sustainable Development section.
Balanced portfolio of projects
- Unique projects
All our projects are set in most iconic locations and boast singular architectural concepts and unique design solutions.RUB 66.3project portfolio in value terms in 2021
billionE&Y estimate as at 31 December 2021.
- Growth potential
The existing balanced pipeline of projects is sufficient to ensure INTECO’s stable operation for at least two years without acquiring new projects. At the same time, the Company continues to look for new promising projects and the best financing options.> 1.7 million sqmproject portfolio in volume terms
- Stable demand
The unique identity of our projects and the strongest resilience of our key property classes (premium/elite) to market fluctuations drive consistent demand for our flats and apartments despite strong market volatility.167 thousand sqmproject pipeline under contracts signed in 2021
- Government support
To ensure successful implementation of our projects, we leverage government support for developers (subsidised mortgage, subsidised loans for developers, simplified process requirements to obtain initial permits, etc.).
Our success is based on our management team’s in-depth knowledge of the market and extensive experience in implementing challenging large-scale projects. Over the last three years, they led the Company to achieve excellent results, exceed targets and re-gain its place among the leaders of Moscow’s residential real estate market.
Performance highlights for the last three years:
(to 1.2 million sqm in Moscow)
(to RUB 60.4 billion)
as part of business transformation