Moscow, April 02, 2019- PIK Group, the leading Russian residential developer, today announces its audited Consolidated Financial Statements prepared in accordance with IFRS and Assets Valuation Report for the year ended December 31, 2018.

2018 Financial Highlights:

• Total revenue increased by 40,4% to RUB 245,8 billion (2017: RUB 175,1 billion). Revenue from sale of real estate increased by 38,9% to RUB 236,3 billion
  (2017: RUB 170.1 billion);
• Gross profit margin amounted to 22.4% (2017: 16.2%). Gross profit margin from sale of real estate amounted to 21.6% (2017: 16.6%); Gross profit margin from sale of real estate recognized under historical value amounted to 31.2%;
• EBITDA increased by 214.7% to RUB 42.8 billion (2017: RUB 13.6 billion). EBITDA margin amounted to 17.2% (2017: 7.8%);
• Adjusted EBITDA before land acquisition portion included in cost of sales increased by 105.5% to RUB 56.3 billion (2017: RUB 27.4 billion)
• Net income for the period amounted to RUB 21.3 billion (2017: RUB 3.2 billion);
• Cash flow from operations before income taxes and interest, acquisition and sale of development rights and prepayments for development rights increased by 28.1% to RUB 69.8 billion (2017: RUB 54.5 billion).
• Net cash flow from operations increased by 22.9% to RUB 31.1 billion (2017: RUB 25.3 billion);
• Net debt as of December 31, 2018 amounted to RUB 2.5 billion (December 31, 2017: RUB 15.0 billion);
• Net debt/EBITDA ratio decreased to 0.06 (December 31, 2017: 1.1)

2018 Assets Valuation Summary:

• As of December 31, 2018, total PIK assets valuation amounted to RUB 388.1 bln. That includes land bank, Industrial segment, brand and new businesses. Assets valuation per share amounted to RUB 577;
• As of December 31, 2018, total net selling area amounted to approximately 10.9 million square meters (11.5 million as of December 31, 2017)
• The market value of the property portfolio increased 19.8% to RUB 269.5 billion (RUB 225.0 billion as of December 31, 2017)
• The market value per square meter increased by 26.6% to RUB 24.8 thousand.

Commenting on the operating results, Sergei Gordeev, President of PIK Group, said:

“In 2018, PIK demonstrated excellent financial performance and high growth rates compared to the previous year. The company's revenue reached almost 250 billion rubles, EBITDA increased almost 3 times, net profit 7 times. The company's net debt decreased 6 times, and the ratio of net debt to EBITDA decreased to almost 0 - 0.06. Thus, the company reaffirmed its strong financial position and commitment to a balanced financial policy. This is further reflected in the Standard & Poor’s PIK’s credit rating upgrade to B+.

The company entered new regional markets - Yekaterinburg and Tyumen. In October, we were the first in the country to conclude the largest project financing deal and at the moment PIK is fully ready to work within the framework of the changed regulation of the construction industry.

We continued to develop our industrial segment, launch new projects and services, implement proprietary IT solutions for automatization and digitalization of business processes. At the end of March 2019, we launched a new service - PIC Franchise - which provides ready-made business management solutions for developers in Russia and the CIS. All this is reflected in the valuation of the company's assets as of December 31, 2018, which amounted to 381.5 billion rubles or 577 rubles per share.

In 2019, we will continue to work to further improve the operating and financial performance of the company, increase the supply of high-quality housing, provided with all the necessary social infrastructure, and implement various initiatives to improve the profitability of projects and the level of service for our clients.”

***

Additional documents:

The Consolidated Financial Statements, prepared in accordance with IFRS, for 12 months ended December 31, 2018 can be found under the following link:

https://pik-group.com/investors/financial-statements/2018/

Conference call details:

Date: April 2, 2019
Time: 17:00 Moscow / 15:00 London / 10:00 New York
Title: PIK Group 2018 IFRS Results
Passcode: 45664627#
Domestic line: +7 495 646 9315
UK international tel.: +44 207 194 3759

Enquiries:

PIK Group

Investors: Polina Kurshetsova, Tel: +7 495 505 97 33 ext. 3785, E-mail: ir@pik.ru

Media: E-mail: media@pik.ru