3Q2014 Trading Update

PIK GROUP 3Q2014 Trading Update

MOSCOW, October 21, 2014 - PIK Group (LSE: PIK) released today its trading update for the nine months ended September 30, 2014. The operational and financial data are based on management assessment only and have not been reviewed by external auditors.

9M2014 key operational highlights:

· Total cash collections decreased by 25.1% to RUB 39.1 billion (9M2013: RUB52.2 billion) primarily due to lower new sales launches in 1H2014 in accordance with the current development schedule and a slowdown in homebuyers' activity from March, 2014.

- Cash collections from sale of real estate to individuals decreased by 23.8% to RUB 31.2 billion (9M2013: RUB 40.9 billion)

- Cash collections from wholesale transactions decreased by 94.2% to RUB 0.2 billion (9M2013: RUB 2.8 billion)

- Cash collections from construction services and others decreased by 8.9% to RUB 7.7 billion (9M2013: RUB 8.4 billion)

· New sales contracts to customers decreased by 23.5% to 362 th. sqm.(9M2013: 473 th. sq. meters) due to lower new sales launches, which resulted in lower apartment offering in 1H2014, as well as weaker homebuyers' activity. Starting from September, 2014, the revival of demand coupled with a wider new project inventory available for sale allowed sales volumes to recover. In 3Q2014, volumes of new contracts increased by 77.8% to 144 th. sqm. compared to 81 th. sqm. in 2Q2014.

· In 9M2014, PIK launched sales at 37 new projects (including 30 project in Moscow Metropolitan Area) compared to 33 and 23 new projects respectively in 9M2013. The largest increase in launched projects occurred in June, 2014 and had a noticeable effect on sales volumes by September, 2014.

· Share of mortgage backed sales continues to be strong at 39.9% in 3Q2014, which is in line with the 2013 full year average.

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Table 1 - Cash collections summary

Note: In line with PIK's accounting policies, these cash collections will be recognized as sales revenue once the residential real estate properties have been completed, approved by the local State commission established for acceptance of finished buildings and the larger share of proceeds is received upon the completed unit.

(1) Including offsets with suppliers

Source: Management accounts

Table 2 - New sales contracts to customers

Note: including contracted retail and wholesales

Source: Management accounts

Table 3 - New sales contracts to customers by region

Note: including contracted retail and wholesales

Source: Management accounts

Table 4 - Pre-sales launches summary table

Source: Management accounts

Table 5 - Share of mortgage backed retail sales

Note: Based on monthly averaged data from retail sales, calculated using apartments only

Source: Management accounts

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Some of the information in this press release may contain guidance, projections or other forward-looking statements regarding future events or the future financial performance of PIK Group. You can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," or the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. PIK Group does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in PIK Group's projections, guidance or forward-looking statements, including, among others, general economic and market conditions, PIK Group's competitive environment, risks associated with operating in Russia, rapid market change, and other factors specifically related to PIK Group and its operations.

This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of PIK Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of PIK Group.