PIK GROUP 2014 Trading Update

PIK GROUP 2014 Trading Update

MOSCOW, January 23, 2015 - PIK Group (LSE: PIK) released today its trading update for the twelve months ended December 31, 2014. The operational and financial data are based on management assessment only and have not been reviewed by external auditors.

2014 key operational highlights:

· Total cash collections decreased by 17.5% to RUB 61.7 billion (2013: RUB 74.8 billion)

- Cash collections from sale of real estate to individuals decreased by 14.7% to RUB 50.6 billion (2013: RUB 59.3 billion);

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

- Cash collections from construction services and others were down by 7.8% to RUB 10.7 billion (2013: RUB 11.6 billion);

· Total cash collections in 4Q2014 stayed flat compared to 4Q2013 at RUB 22.5 billion

- Cash collections from sale of real estate to individuals in 4Q2014 increased by 5.4% to RUB 19.4 billion (4Q2013: RUB 18.4 billion);

· New sales contracts to customers decreased by 8.4% to 620 th. sq. meters(2013: 677 th. sq. meters). In 4Q2014 new sales contracts to customers rose by 26.5% to 258 th sq. meters (4Q2013: 204 th. sq. meters)

· In 2014, PIK launched 43 new projects compared to 52 new projects in 2013. New sellable area in the buildings put on sale rose by 6.4% to 645 th. sq. meters (2013: 606 th. sq. meters)

· Share of mortgage backed sales totaled 36.2% in 2014 compared to 39.0% in 2013.

· PIK's average selling prices in 2014 increased by 8.1% in Moscow, 18.4% in New Moscow, 5.7% in the Moscow region and 3.1% in other regions.

Detailed information on key operating results

Table 1 - Cash collections summary (1)

(1) 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.

(2) Including offsets with suppliers

Source: Management accounts

Table 2 - New sales contracts to customers

Source: Management accounts

Table 3 - Quarterly new sales contracts to customers

Note: including contracted retail and wholesales

Source: Management accounts

Table 4 - New sales contracts to customers by region

Note: including contracted retail and wholesales

Source: Management accounts

Table 5 - Pre-sales launches summary table

Source: Management accounts

Table 6 - Share of mortgage backed retail sales

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

Source: Management accounts

Table 7 - Average PIK's net selling price dynamics

Note: PIK is pre-selling properties at different stages of construction. Selling prices vary depending on geographic location, size, floor location, stage of construction. Accordingly, average prices per square meters represent blended average price calculations of the above. Calculated on the basis of retail contracts on completed project and projects in active construction stage.

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.