Moscow, August 30, 2017 - PIK Group (LSE: PIK), (“The Group” or “PIK”), the leading Russian residential developer, today announces its unaudited Consolidated Financial Statements prepared in accordance with IFRS, for the 6 months ended June 30, 2016. 

1H2017 Financial Highlights: 

Note: In accordance with the direct requirement of IFRS 3 "Acquisition of business", all assets of acquired businesses must be recognized at a fair, rather than historical value. This resulted in a significant increase in the accounting cost of acquired assets in the reporting period - the market value of assets at the time of acquisition is used. Thus, profitability and EBITDA in the 1H2017 financial report reflect this cost increase. At the same time, operating cash flow and total revenue fully reflect the current position of the Company.

• Total cash collections increased by 125.9% to RUB 94.4 billion (1H2016: RUB 41.8 billion);

• New sales contracts to customers* increased by 90.4% to 771 th. sqm.
(1H2016: 405 th. sq. meters)

*is calculated as the volume of premises for which the deals are concluded after deducting the volume of premises for the canceled transactions according to management accounts

• Transfers of real estate to customers increased by 112.2% to 416 th square meters (1H2016: 196 thsquare meters)

• Total revenue increased by 119.3% to RUB 41.5billion (1H2016: RUB 18.9 billion). Revenue from sale of real estate increased by 124.2% to RUB 35.3billion 
(1H2016: RUB 15.7 billion);

• The implied revenue per square meter amounted to 84.9 thousand rubles (1H2016: 80.3 thousand rubles);

• Gross profit margin amounted to 21.4% (1H2016: 29.2%);

• Gross profit margin from sale of real estate amounted to 20.5% (1H2016: 31.6%);

• This being said, gross profit margin from sale of real estate recognized under historical value, amounted to 32.4%, which corresponds to the 1H2016;

• Cash flow from operations before acquisition of development rights and prepayments for development rights increased by 45.8% to RUB 14.3billion (1H2016: RUB 9.8 billion). 

• Net cash flow from operations increased by 492.9% to RUB 12.1 billion (1H2016: RUB 2.0 billion) ;

• Adjusted EBITDA decreased by 4.1% to RUB2.9 billion (1H2016: RUB 3.0 billion). Adjusted EBITDA margin amounted to 7.0% (1H2016: 16.1%);

• Adjusted EBITDA before land acquisition portion included in cost of sales increased by 15.8% to RUB3.7 billion (1H2016: RUB 3.2 billion)

• Net loss for the period amounted to RUB 2.5 billion
(1H2016: net profit of RUB 1.7 billion);

• Net debt as of June 30, 2017 was amounted to RUB43.6 billion (December 31, 2016: RUB 40.7 billion);

***

Additional documents:

The Consolidated Financial Statements, prepared in accordance with IFRS, for 6 months ended June 30, 2017 can be found 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: ​​​Wednesday, August 30, 2017

Time: ​​​14:00 Moscow / 12:00 London / 7:00 New York

Title: ​​​PIK Group 1H2017 IFRS Results

Conference ID: 1953775

Domestic line:​+7 495 213 1767

UKinternational tel.: +44 330 336 9105 

Enquiries:

PIK Group