PIK GROUP reports 2014 consolidated financial results and portfolio valuation summary

Moscow, April 2, 2015 - 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, 2014 and the Valuation Report in respect of the portfolio of its properties.

 

2014 Financial Highlights:

• Revenue from sale of apartments increased by 1.9% to RUB54.3 billion
  (2013: RUB53.3 billion). Total revenue decreased by 2.1% to RUB61.3 billion (2013: RUB62.5 billion);

• Gross profit margin amounted to 26.2% (2013: 28.2%). Gross profit margin in the Real Estate Development segment amounted to 27.2% (2013: 28.5%);

• Adjusted EBITDA decreased by 10.8% to RUB12.5 billion (2013: RUB14.0 billion). Adjusted EBITDA margin amounted to 20.4% (2013: 22.4%);

• Net profit for the year amounted to RUB3.8 billion
  (2013: RUB7.4 billion) primarily due to recognized one-time non-cash impairment losses of RUB5.2 billion;

• Free cash flow increased by 14.3% to RUB9.6 billion (2013: RUB8.4 billion);

• Net debt as of December 31, 2014 decreased by RUB7.8 billion to RUB10.2 billion (2013: RUB18.0 billion);

• Transfers of apartments to customers increased by 6.8% to 644,000 square meters (2013: 603,000 square meters)

 

2014 Operational Highlights:

• Total cash collections decreased by 17.5% to RUB61.7 billion
  (2013: RUB 74.8 billion)

• Cash collections from sale of apartments to individuals decreased by 14.7% to RUB 50.6 billion (2013: RUB 59.3 billion)

• Cash collections from low-margin wholesale transactions decreased by 95.5% to RUB 0.2 billion (2013: RUB 3.6 billion)

• New sales contracts to customers decreased by 8.4% to 620 th. square meters
  (2013: 677 th. square meters)

• Mortgage backed sales totaled a share of 36.2% in 2014 compared to 39.0% in 2013

• PIK’s average selling prices in 2014 decreased by 7.5% in Moscow, increased 5.7% in the Moscow region and increased 3.1% in other regions.

 

2014 Development Portfolio Valuation Summary:

• As of December 31, 2014, total net selling area amounted to approximately 5.2 million square meters (6.9 million as of December 31, 2013), of which 99% is residential

• The market value of the property portfolio decreased 11.9% to RUB83.9 billion (RUB95.2 billion as of December 31, 2013)
• The market value per square meter increased by 18.2% to RUB16.25 thousand.

 

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Additional documents:

The Audited Consolidated Financial Statements, prepared in accordance with IFRS, for the year ended December 31, 2014 can be found under the following link:

http://pik-group.com/investors/financial-statements/2014/

For additional information please see our Corporate Governance Statement under the following link: http://pik-group.com/corporate-governance/regulatory-documents/documents-being-currently-in-force

 

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:                           Friday, April 3, 2015

Time:                          16:00 Moscow / 14:00 London / 9:00 New York

Title:                            PIK Group 2014 IFRS Results

Main Conference ID (Russian line): 8862790

Secondary Conference ID (English line): 5809125

Domestic line:             +7 495 213 0978

UK international tel.:   +44 20 3427 1909

 

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