PIK Group announces financial results for 12 months ended December 31 2012 and portfolio overview summary - новости ПИК от 22 апреля 2014
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22 апреля 2014

PIK Group announces financial results for 12 months ended December 31 2012 and portfolio overview summary

Moscow, April 22, 2014 - PIK Group (LSE: PIK), (“The Group” or “PIK”), one of the leading Russian residential developers, today announces its audited Consolidated Financial Statements prepared in accordance with IFRS, for the year ended December 31, 2013 and the Valuation Report in respect of the portfolio of its properties.

2013 Financial Highlights:

  • Total revenue decreased by 5.4% to RUB62.5 billion (2012: RUB66.1 billion);
    Revenue from sale of apartments declined by 2.7% to RUB53.3 billion
    (2012: RUB54.8 billion)
  • Gross profit margin increased to 28.2% from 21.7% in 2012; gross profit margin in the Real Estate Development segment increased to 28.5% from 23.4% in 2012
  • Adjusted EBITDA from core operations increased by 31.9% to RUB14.0 billion (2012: RUB10.8 billion); the adjusted EBITDA margin increased to 22.4% from 16.1% in 2012
  • Net income for the period increased more than 2.3x to RUB7.4 billion
    (2012: RUB3.1 billion)
  • Net cash generated from operating activities reached RUB12.5 billion
    (2011: RUB7.0 billion)
  • Net debt as of December 31, 2013 decreased by RUB20.1 billion to RUB18.0 billion (2012: RUB38.1 billion).

2013 Operational Highlights:

  • Total cash collections increased by 10.8% to RUB74.8 billion
    (2012: RUB 67.5 billion)
  • Cash collections from sales of apartments increased by 20.4% to RUB63.0 billion (2012: RUB52.3 billion) and 52 new buildings were released for sale during the year compared to 49 buildings in 2012
  • Cash collections from sale of apartments to individuals increased by 32.3% to RUB 59.3 billion (2012: RUB 44.8 billion) with the share of retail sales increasing to 94.2% from 85.7% in 2012
  • New sales contracts to customers grew by 2.9% to 677 th. sq. meters
    (2012: 658 th. sq. meters)
  • Mortgage backed sales reached 39.0% of total new sales in 2013 (2012: 28.5%)
  • PIK’s average selling prices in 2013 increased by 17.0% in Moscow, 21.5% in New Moscow, 1.1% in the Moscow region and 7.7% in other regions.

2013 Development Portfolio Valuation Summary:

  • Total net selling area amounted to approximately 6.9 million square meters (6.5 million as of December 31, 2012), of which 99% is residential
  • The market value of the property portfolio increased 7.6% to RUB95.2 billion (RUB88.4 billion as of December 31, 2012) and was unchanged when denominated in US Dollars
  • The market value of new projects acquired in 2013 as of December 31, 2013 amounted to RUB6.1 billion
  • The market value per square meter increased by 1.6% to RUB13,753. In MMA market value per square meter increased by  21.8% to RUB20,949
  • The market value of the portfolio per ordinary share was RUB144.1/ordinary share.

Pavel Poselenov, PIK Group’s President and Chief Executive Officer, commented:

“2013 was another very successful year for PIK Group during which we achieved strong financial results and increased our financial and investment flexibility. As growth in the Russian economy slowed, we shifted our focus from rapid expansion in volumes to better earnings’ quality and overall deleveraging of the company. We believe our strong profitability in 2013 is a good indication that our business model works, even in times when the macroeconomic trends are not optimal.

Despite macroeconomic pressures, the Russian residential real estate market was stable during 2013 with average selling prices growing slightly ahead of inflation. PIK Group was able to exceed average market price growth rates in the key regions primarily due to changes in sales mix and efficient marketing. Increasing mortgage penetration continues to provide good support to sales momentum. A new record was set last year with 39% of our new contracts being backed by mortgages as overall mortgage affordability and accessibility continue to improve.

Overall, the pace of growth is moderating. In 2013, our residential apartment sales amounted to 677,000 square meters, just 2.8% higher than in 2012. Our cash collections in 2013 rose by 10.8%, while retail residential sales were 32.3% higher due to intentional reduction in lower margin wholesale transactions. The steadying of growth allowed us to focus on profitability by further enhancing our project management in the real estate development segment and by launching efficiency measures at our production facilities in Moscow. As a result, we have achieved an adjusted EBITDA margin of 22.4% compared to a margin of 16.1% in 2012. Together with a number of other positive financial developments, we were able to boost our net income for the year more than 2.3 times to RUB7.4 bn and to generate a record free cash flow of RUB8.4 bn.

The strong cash flow from operations coupled with capital raised during the secondary public offering in June, 2013 have enabled us to cut our net debt by about RUB20 bn and achieve a significantly lower net debt to adjusted EBITDA ratio of 1.3x.

We entered 2014 with a strong platform, both in terms of our financial standing and operational efficiency across all business lines. Our prime goals are to maintain the current level of profitability and investment discipline while capturing current market opportunities, which continue to be plentiful as indicated by homebuyers’ activity early in 2014.

All in all, we continue to be optimistic about the Group’s future – both for 2014 and in a longer perspective, despite increased macroeconomic uncertainty in Russia .

On behalf of the Management Board, I would like to thank all our employees for their energy and commitment and encourage them to keep up the good work for the benefit of all of our stakeholders.”



Additional documents:

The Audited Consolidated Financial Statements, prepared in accordance with IFRS, for the year ended December 31, 2013 can be found under the following link:

For additional information please see our Corporate Governance Statement under the following link:


Conference Call Dial-In Details:

PIK Group’s Management will host a conference call for investors and analysts followed by a Q&A session.

Date:                           Tuesday, April 22, 2014
Time:                          17:30 Moscow / 14:30 London / 9:30 New York
Title:                            PIK Group 2013 IFRS Results
Conference ID:          4680429
Domestic line:             + 7 (495) 662-5793
UK international tel.:   +44 (207) 190-1595



PIK Group





Andrey Machanskis


Head of Investor Relations




Tel: +7 495 505 97 33
ext. 1157 / 1315

Tel: +7 495 505 97 33
ext. 1403

E-mail: ir@pik.ru

E-mail: pressa@pik.ru


For more information: FY 2013 financial results