4Q2012 trading update

STRONG CASH GENERATION AND FURTHER STRENGTHENING OF FINANCIAL POSITION

PIK FULL-YEAR TRADING RESULTS BEATS GUIDANCE FOR THE YEAR

(LONDON, January 23 2013) - PIK Group (LSE: PIK), one of Russia’s leading residential real estate developers, is pleased to publish today a trading update for the twelve months ended December 31, 2012 based upon management accounts.

12M2012 key operational highlights:

• On the back of a healthy housing market, PIK delivered solid year growth, exceeding management expectations and previous guidance to the market ;

• Total gross cash collections grew by 29.6% to RUB67.5 billion (12M11: RUB52.0 billion);

- Cash collections from sales to individuals rose by 47.3% to RUB44.8 billion (12M11: RUB30.4 billion) driven by volume and sales price growth;

- Cash collections from construction services were up by 11.5% to RUB14.4 billion (12M11:RUB12.9 billion);

• PIK launched 49 new projects (12M11: 41) of which 36 were in the Moscow Metropolitan Area (MMA);

• New sales contracts to customers grew  by 29.0% to 658,000 sq. meters (12M11: 510,000 sq. meters), driven by fundamental demand for affordable housing in Russia;

- 4Q12 alone new sales contracts to customers reached 219,000 sq. meters, which were 31.1% higher than those of the previous year and 29.6% higher than in 3Q12;

- In December 2012 alone, PIK sold over 118,000 sq. meters to its customers ;

• Mortgage backed sales were stable during the year despite increased interest rates for individual mortgages in the range of 50-100bps;

- 4Q12 mortgage backed sales amounted to 29.2% of total sales;

• Average selling prices in 2012 increased by 10% in Moscow, and 12% in Moscow region and other regions, significantly higher than Russia’s inflation;

• Overall, as a result of the above strong drivers of growth, PIK made a significant step towards deleveraging its balance sheet through cutting its debt burden down to RUB41.8 billion.

• Compared to December 31 2011, net debt decreased by RUB5.8billion and totaled RUB37.1 billion as of December 31 2012.

2013 Outlook

• Fundamentals for residential mass market housing remain strong. PIK provides the following annual guidance for 2013:

- Total new sales to customers between the range of 660,000-700,000 sq. meters, with total gross cash collections of RUB69-73billion.

For more details: 4Q2012 trading update