Press releases

Mostotrest Announces Full Year 2011 Results


In 2011, Mostotrest, Russia’s leading infrastructure construction group, delivered strong operating and financial results. The Group strengthened its market position, increased its profits and won a number of major tenders, including several innovative full life cycle projects. The Group continued to implement its strategy of acquiring new competences, develop existing competences, and diversifying into new business segments.

Key Operating Results

  • The Group’s market share increased to 8.6%(b), driven by an increase in the volume of works performed using its own in-house capabilities(c)
  • Backlog(d) rose 36% to RUB 319.8** billion, driven by, among other factors, participation in new-style infrastructure contracts in Russia
  • The Group won the three largest transport infrastructure development contracts tendered in Russia in 2011, with a combined contract value of RUB 74.0** billion(e), including construction, repair, maintenance and toll-based operation of a segment of the Moscow- Saint Petersburg Highway (Vyshny Volochek Bypass) (value: RUB 42.1** billion(e)), upgrade, repair and maintenance of a segment of M-4 Don Highway (value: RUB 16.3** billion(e)), and M-9 Baltiya Highway upgrade (value: RUB 15.7** billion(e)).

Key Financial Results

  • Revenue grew 32% to RUB 99.0 billion, driven by increased construction volumes
  • Gross profit increased by 18% to RUB 13.0 billion versus RUB 11.1* billion in 2010, driven by increased construction volumes along with increased share of works performed using services of subcontractors(f)
  • EBITDA(g) rose 6% to RUB 9.5 billion; EBITDA margin was 10% in 2011
  • Net profit grew 3.7x to RUB 3.7 billion. Adjusted net profit(h) increased by 20% to RUB 5.3 billion
  • Net cash position as at 2011 year-end grew 63% year-on-year to RUB 21.6 billion, driven by advances received, including from large contracts newly signed in 2011. 


“Despite slow growth in the industry in 1H2011, the infrastructure construction market performed strongly over the period growing 12% year-on-year.

2011 was one of the most successful years in the history of Mostotrest. Last year we significantly increased our project backlog and revenue, entered into related segments, developed new competences and expanded our headcount.

In 2011, we actively pursued implementation of complex infrastructure projects. Capitalising on our strong general contractor capability, our scale and our successful partnerships with international players, we were able to respond to new industry trends. Indeed, during the year we signed two full life cycle contracts where we will be responsible not only for the construction of roads but also for their subsequent maintenance and rehabilitation. a totally new  concept in Russia. In addition, we won an operator’s contract for upgrade, repair, maintenance and toll-based operation of a segment of M-4 Don Highway.

Such contracts require that the general contractor not only has an impeccable reputation, but also the appropriate managerial and technical expertise in several different areas of transport infrastructure construction.  These projects fit logically with our strategy of diversifying our operations and developing our presence in related business segments, including road maintenance and rehabilitation, and they lay a solid foundation for the Company’s further participation in these new-style contracts in Russia going forward”.


Development of transport infrastructure remains an absolute priority for the country. We are optimistic about the market prospects for infrastructure construction in Russia. In 2012, we expect the government to continue its investment  in programs  to develop the national road network, a key segment of our business.

As a next step, life cycle contracts may require the contractor to also assume the design responsibility. In addition, the government’s strategy  to increase the length of tollroads will require expertise in installation and operation of traffic management systems. These trends are expected to result in projects becoming far bigger and much more complex which will strengthen the competitive position of the large diversified players like Mostotrest.
Government plans for transport infrastructure development, the size and quality of our backlog along with our construction expertise and our own production capacity allow us to be optimistic about the future.  


a)  The press-release has been prepared on the basis of the consolidated financial statements prepared in accordance with the IFRS as at and for the year  ended 31 December 2011, pro forma consolidated financial statements as at and for the year ended 31 December 2010, as well as on the basis of the management accounts as at and for the same periods, as this set of financial statements in their entirety provide a comprehensive overview of the Group’s performance for the year ended 31 December 2010 and 2011.

Unaudited pro forma consolidated financial information can be non-comparable with the consolidated financial information and can not be indicative of future performance, as ETS and TSM were not under common control before 28 June 2010 and 13 May 2010, respectively. In addition, the management accounts can be non-comparable with the consolidated financial statements and pro forma consolidated financial statements, each prepared in accordance with the IFRS. Pro forma consolidated financial statements should be treated together with the consolidated financial statements of MSTT and its subsidiaries, as well as together with the consolidated financial statements of MSTT and its subsidiaries prepared with respect to the past periods (subject to reasonable adjustments).

MSTT 2011 results include results of United Toll Systems, an MSTT subsidiary that was not defined as a separate segment due to the lack of significant activity in 2011.

To make the information in the press-release user friendly special notes are used. The information based on pro forma financial statements as at and for the year ended 31 December 2010 is marked with {*}. The information based on management accounts is marked with {**}.

The detailed “basis of presentation” description can be found in the Appendix nr. 3 at the end of the press-release.

b)  Calculated as amount of works performed using own in-house capabilities in 2011 divided by 2011 market volumes according to EMBS Group report. EMBS Group is is an independent industry consultant which provides among others market information advisory services within a number of business sectors across emerging markets and developed markets globally.

c)  Amount of works performed using own in-house capabilities is the total revenue less other revenue and cost of services of subcontractors.

d)   Backlog is not a measure defined by IFRS or RAS. The relevant entity’s backlog represents its management’s estimate of the contract value of its projects that remain to be completed as at a particular date, excluding VAT. Such value is calculated as the total contract value for each project that remains to be completed less the amounts already received under the contracts for such projects. The total contract value of a particular project represents the total amount that the relevant entity expects to receive under the contract for such project, assuming the contract is performed in accordance with its terms. A project is included in the backlog of a relevant entity when either a firm letter of commitment is executed by the customer or a letter is received confirming its bid has been successful. Backlog may not be indicative of the relevant entity’s future operating results.

e) Excluding VAT.

f)  Share of works performed using services of subcontractors is calculated as costs of services of subcontractor divided by total revenue less other revenue.

g) EBITDA is defined as net profit from continuing operations net of income tax, net finance costs and depreciation. EBITDA is not defined by, or presented in accordance with, IFRS. EBITDA has limitations as an analytical tool, and one should not consider it in isolation, or as a substitute for analysis of the Group’s operating results as reported under IFRS.

h) Adjusted net profit is defined as profit from continuing operations net of dividends paid in ETS and TSM, non-controlling interest and depreciation reflected in consolidation.


Mostotrest (including LLC Corporation Engtransstroy and LLC Transstroymekhanisatsiya) is the largest diversified infrastructure and bridge-building company in Russia. According to EMBS Group, the independent industry consultancy, Mostotrest had an 8.6% share of the total Russian infrastructure construction market in 2011(excluding road maintenance and rehabilitation). Mostotrest’s core competences include construction and repair of automobile, railway and urban bridges, automobile roads and other transport infrastructure.

The company was established in 1930 as a specialist bridge builder, and since then it has built and rehabilitated over 7,500 infrastructure projects (bridges, flyovers, tunnels and interchanges) to date.

Mostotrest is currently implementing major infrastructure development projects across Russia, including transport infrastructure for the 2014 Sochi Olympics, Enthusiasts Avenue traffic interchange in Moscow, as well as infrastructure projects along M-4 Don, M-7 Volga and other highways.

Mostotrest Ownership Structure:

38.6%: Marc O’Polo Investments (beneficiary shareholders: Arkady and Igor Rotenbergs and top-managers of N-Trans, including Konstantin Nikolayev, Nikita Mishin and Andrei Filatov);
27.1%: Transfingroup Asset Management Company, trustee of Blagosostoyanye Pension Fund
34.3%: free float.
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Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of Mostotrest. 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. Mostotrest wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Mostotrest does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Mostotrest, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, market change in the Russian infrastructure construction market, as well as many other risks specifically related to Mostotrest and its operations.
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