Moscow, April 16, 2018 - PIK Group, the leading Russian residential developer, today announces its audited Consolidated Financial Statements prepared in accordance with IFRS and Valuation Report in respect of the portfolio of its properties for the year ended December 31, 2017.

2017 Financial Highlights:

• Total revenue increased by 203.4% to RUB 175.1 billion (2016: RUB 57.7 billion). Revenue from sale of real estate increased by 214.5% to RUB 169.9 billion
  (2016: RUB 54.0 billion);
• The implied revenue per square meter amounted to 90.0 thousand rubles (2016: 88.8  thousand rubles);
• Gross profit margin amounted to 16.3% (2016: 31.1%). Gross profit margin from sale of real estate amounted to 16.5% (2016: 31.9%);
• This being said, gross profit margin from sale of real estate recognized under historical value, amounted to 28.2%;
• Adjusted EBITDA increased by 41.0% to RUB 15.6 billion (2016: RUB 11.1 billion). Adjusted EBITDA margin amounted to 9.0% (2016: 19.3%);
• Adjusted EBITDA before land acquisition portion included in cost of sales increased by 117.5% to RUB 27.4 billion (2016: RUB 12.6 billion)
• Net income for the period amounted to RUB 3.2 billion (2016: RUB 19.1 billion);
• Cash flow from operations before income taxes and interest, acquisition and sale of development rights and prepayments for development rights increased by 40.1% to RUB 54.5 billion (2016: RUB 38.9 billion).
• Net cash flow from operations increased by 35.0% to RUB 25.3 billion (2016: RUB 18.8 billion) ;
• Net debt as of December 31, 2017 amounted to RUB 15.0 billion (December 31, 2016: RUB 40.7 billion);
• Transfers of real estate to customers increased by 210.4% to 1 887 th square meters (2016: 608 th square meters)

2017 Development Portfolio Valuation Summary:

• As of December 31, 2017, total net selling area amounted to approximately 11.5 million square meters (12.5 million as of December 31, 2016)
• The market value of the property portfolio increased 3.6% to RUB 225.0 billion (RUB 217.1 billion as of December 31, 2016)
• The market value per square meter increased by 12.8% to RUB 19.6 thousand. 

Commenting on the operating results, Sergei Gordeev, President of PIK Group, said:

"In 2017, PIK delivered strong financial results. For the first time in Company’s history, we exceeded 2 million square meters in construction volumes. Total revenue increased more than 3 times and amounted to RUB 175.1 billion.

The Group’s net debt at the end of the year amounted to RUB 15.0 billion, which is 63% lower than at the end of 2016. As such, we have confirmed on our strategic course of decreasing our debt levels.

Additionally, we accomplished a number of important strategic milestones by entering the new market of St. Petersburg, successfully integrating two major developer companies. We continued to develop our industrial division through the creation of a single production unit with five factories, and significantly progressed in our IT transformation, having launched new projects and services to enhance operational efficiency and service quality.

In 2018, we will continue to undertake measures aimed at maintaining our industry leading position, while working to boost our operational and financial efficiency. We will strive to increase market share in key segments and regions where we operate as well as our profitability while remaining focused on industrialization and technological development of our production processes and elevating our customer service.”

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Additional documents:

The Consolidated Financial Statements, prepared in accordance with IFRS, for 12 months ended December 31, 2017 can be found under the following link:

https://pik-group.com/investors/financial-statements/2017/

Conference call details:

Date: April 16, 2018

Time: 15:00 Moscow / 13:00 London / 8:00 New York

Title: PIK Group 2017 IFRS Results

Conference ID: 7024991

Domestic line: +7 495 213 1767

UKinternational tel.: +44 330 336 9105

Enquiries:

PIK Group