PIK Group announces financial results for 12 months ended December 31 2011

(LONDON, April 27 2012) - PIK (LSE: PIK), a leading Russian residential developer, today announces its consolidated IFRS financial results for 12 months ended December 31 2011.

Financial summary:

• Total revenues were up by 20.7% to RUB46.0 billion (2010: RUB38.1 billion)

• Revenue from sales of apartments grew by 30.0% to RUB35.3 billion (2010: RUB27.1 billion)

• Earnings before interest, taxes, depreciation and amortization (EBITDA) reached RUB11.7 billion (2010: loss of RUB2.1 billion)

• Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) from development activities  were at RUB5.9 billion (2010: loss of RUB 0.4 billion))

• Net income recovered to RUB4.8 billion (2010: net loss of RUB6.0 billion)

• Total assets as of December 31 2011 increased to RUB128.8 billion (2010: RUB119.6 billion)

• Net debt as of December 31 2011 amounted to RUB42.8 billion (2010: RUB 37.2 billion)

Operational summary:

• Total gross cash collections increased by over 30% to RUB52.1billion (FY10: RUB 39.9 billion);

• Cash collections from sales of apartments surged 49.5% to RUB34.9billion (FY10: RUB23.4billion) driven mainly by higher volume sales.

• Cash collections from construction services and others remained stable at RUB12.9billion (FY10:RUB12.3billion)

• New sales contracts to customers showed growth to 510,000 sq. meters due to the wider range of available PIK projects

• PIK launched 41 new projects (FY10: 25) of which 26 are in its core Moscow Metropolitan Area (MMA);

• 4Q11 sales figures showed a 30% year-on-year increase, reinforcing management’s confidence that growth in PIK’s segment of the market is intact and based upon solid and sustainable fundamentals;

• 4Q11 mortgage backed sales stayed at 30% of total sales;

Property portfolio valuation summary:

• Total net selling area amounted to approximately 6.9 million square meters (10.1million as of June 30 2011), of which 99% is represented by the residential area

• The market value of the property portfolio stayed flat at US$2.7 billion
• Market portfolio value per share was at $5.5 (June 30 2011: US$5.5)
• Our top 10 key projects accounted for 61.8% of total market value (June 30 2011: 65.8%)

For more information: FY 2011 financial results.pdf