In 2012 LSR Group generated RUB 61,122m of revenues and RUB 13,392m of EBITDA

• Sales revenue increased by 18%, up to RUB 61,122m
• EBITDA increased by 32%, up to RUB 13,392m
• EBITDA margin increased from 20% to 22%
• Total comprehensive income increased by 102%, up to RUB 4,914m
• Earnings per share amounted to RUB 48.06
• Net debt/EBITDA ratio decreased from 3.3 to 2.65

• New contract sales - 447 th m2 (+31%). Value of the contracts - RUB 37bn (+46%)
• Construction volume increased by 25%, up to 725 th m2

Aleksandr Vakhmistrov, CEO and Chairman of the Executive Committee of LSR Group comments:

The year of 2012 was successful for the company. Our key indicators not only exceeded the pre-crisis level but also set several all-time records. Our revenue increased by 18%, to RUB 61bn. EBITDA growth was 32%, up to RUB 13.4bn. EBITDA margin increased to 22%.

The financial results of our real estate development business in 2012 reflect completions and transfers in accordance with our construction schedule. Throughout the year in all regions of operations we transferred to our customers 248 th m2 and completed 332 th m2. In 2012, we started pre-sales in several long-anticipated projects, which allowed us to increase supply of real estate and benefit from favourable market conditions while increasing our housing pre-sales. As a result, in 2012 we entered into new contracts with our customers for the sale of 447 m2, up 31%. The total value of the contracts amounted to RUB 37bn (+46%). In particular, in St. Petersburg we signed new contracts for the sale of 272 th m2, which is an all-time record for the company. Our new contract sales in Moscow (92 th m2) and Yekaterinburg (82 th m2) also set all-time records for the company’s real estate development business in these regions. In 2013, we intend to increase supply of real estate in all regions of operations. Since the beginning of the year we have already started pre-sales of approximately 190 th m2. In the short run we plan to launch several new projects to the market.

The increased volume of construction works driven by the demand in the real estate market ensured growth of building materials consumption which had a positive impact on the financial performance of our building materials division. At the end of the year we completed one of our key investment projects – construction of a new brick plant in the Kirovsky district of the Leningrad region. The new facility has an annual capacity of up to 160 million bricks and will become the largest producer of bricks in Russia. We have also increased the scope of our building materials business in the Moscow region. In June 2012, we put into operation a brick plant with a total capacity of up to 70 million bricks in Pavlovsky Posad (Moscow region).

The year of 2012 saw sustainable growth of our construction business. We have completed a large-scale modernisation of our prefabricated factory in St. Petersburg, which began in 2006. As a result the capacity of the factory will increase up to 500 th m2.

As of 31 December 2012, our real estate portfolio amounted to 8,659 th m2, its market value estimated at RUB 120bn. As part of our expansion strategy in the Moscow region and Yekaterinburg we gradually increase the shares of these regions in the portfolio. In particular, the share of Yekaterinburg grew up to 8% in terms of NSA and up to 4% in terms of market value. The share of the Moscow region amounted to 13% by NSA and 22% by market value, which is mainly due to the increased area of New Domodedovo project.

In 2012, we proceeded with our corporate programme aimed at consolidation of business units and centralisation of key functions within the company. In the course of the year we consolidated our real estate development companies in St. Petersburg, Moscow and Yekaterinburg into three business units - LSR. Real Estate – North-West, LSR. Real Estate – Moscow and LSR. Real Estate – Urals – and introduced unified project management standards. The efficiency of these efforts is reflected in the successful results of our real estate development business in 2012.

We believe there are good perspectives for further development of our business in 2013. They are primarily attributed to the launch of several new real estate development projects in all regions of operations as well as the increase of our building materials production including our new brick plant which is to reach its designed capacity this year.
Notes to Editors:
OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are production of building materials, real estate development and panel construction. LSR Group's main operations are located in St. Petersburg, Moscow and Yekaterinburg. As of 31 December 2012 (according to Cushman & Wakefield Russia), the net sellable area of the projects in LSR Group’s real estate portfolio is equal to 8.7m m2 with the market value of RUB 120bn. In 2012, the sales revenue of LSR Group amounted to RUB 61,122m (IFRS). LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX-RTS.

For more information please contact:
LSR Group Press Service
Tel.: +7 812 314 10 44
Fax: +7 812 458 83 72
E-mail: press@lsrgroup.ru
www.lsrgroup.ru