Trading Statement

THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR

INDIRECTLY IN THE UNITED STATES OF AMERICA

PIK GROUP ("The Group" or "PIK")

1H2013 Trade update

MOMENTUM CONTINUES, SUPPORTED BY GROWING DEMAND FOR MORTGAGES AND SELLING PRICE APPRECIATION IN MOSCOW

(LONDON, July 18 2013) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, is pleased to publish a trading update for the six months ended June 30, 2013 based upon management accounts.

1H2013 key highlights:

·; Total net cash collections up by 34.1% to RUB 33.9 billion (1H12: RUB 25.3 billion);

- Cash collections from sales of apartments to individuals increased by 45.0% to RUB 25.9 billion (1H12: RUB 17.8 billion) driven by mix of selling price and volume growth;

- Cash collections from construction services and other activities slightly changed to RUB 5.5 billion (1H12:RUB 5.7 billion);

·; New launches consolidated at 19 properties on sale (1H12: 20) of which 14 came from Moscow Metropolitan area, demonstrating healthy operational run-rate;

·; New sales contracts ('NSC') to customers grew to 291 thousand square meters, up by 7.8% yoy driven by underlying fundamental demand for affordable housing;

·; The structure of NSC remained consistent with previous periods and was as follows:

- 29.5% is derived from Moscow and New Moscow territory (1H12: 27.4%);

- 53.0% is generated in Moscow region (1H12: 51.8%);

- 17.5% came through other regions (1H12: 20.8%);

·; Mortgage backed sales continued to grow, reaching 39.2% in 2Q13 on the back of macroeconomic stability and customer confidence; mortgage rates remained stable for the period;

·; Compared to FY2012, the average net selling prices of PIK's properties at different stages of construction showed 21.2%, 1.4% and 7.1% growth in Moscow, Moscow region and other regions respectively; the significant appreciation of selling prices in Moscow is driven by the fact that stock on sale has been at the final stage of construction, triggering higher prices to customers;

·; In early June 2013 PIK Group completed its RUB 10.45 billion (equivalent to USD 330 million) capital increase issuing 167,236,960 new shares;

·; Compared to December 31 2012, total debt excluding accrued interest payable decreased by RUB 6.5 billion from RUB 41.9 billion to RUB 35.4 billion as result of accelerated debt redemption throughout 1H13. This has been in line with PIK's strategy to deleverage its balance sheet to sustainable levels;

·; In the same period, PIK heavily cut its net debt by RUB 13.9 billion down to RUB 22.9 billion as a result of the Group's capital increase.

2013 Outlook

·; In accordance with the Group's strategy, PIK plans to use excessive cash balances to further deleverage and reduce total debt below RUB 30 billion by the end of the current year.

·; In line with disciplined approach towards new purchases and subject to the availability of projects meeting margin requirements, PIK targets to spend up to RUB 4.5 billion for new acquisitions with the aim of replenishing the existing landbank;

·; Operational environment remains good; PIK reiterates 2013 guidance on NSC to customers between 660,000-700,000 square meters with total gross cash collections of RUB 69-73 billion.

Table 1 - Cash collections summary(1)

Note:(1) In line with PIK's accounting standards, these cash collections will be recognized as sales revenue once the residential real estate properties have been completed and third party acceptance acts (formal building certification provided by authorities) are received upon the completed unit

(2) Including offsets with suppliers

(3) Excluding offsets with suppliers

Source: Management accounts

Table 2 - New sales contracts to customers (total)

Note: (1) including contracted retail and wholesales

Source: Management accounts

Table 3 - New sales contracts to customers by region (1)

Note: (1) including contracted retail and wholesales

Source: Management accounts

Table 4 - Pre-sales launches summary table

Source: Management accounts

Table 5 - 1H2013 pre-sales launches (detailed summary)

Source: Management accounts

Table 6 - Share of mortgage funded retail sales

Note: (1) Based upon monthly averaged data upon retail sales, calculated as per flats only

Source: Management accounts

Table 7 - New sales contracts to retail customers (contracted retail volume)

Notes: (1) unit is equivalent to aggregated amount of flats, ground floors and parking lots

(2) size is taken for flats and ground floors

Source: Management accounts

 Table 8 - Average PIK's net selling price dynamics (1)

Note: (1) PIK is preselling 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.

(2) Calculated for property under construction on contracts with retail customers

(3) Excluding business class projects, such as the 'English Town'

Source: Management accounts

Enquiries:

PIK Group

Investors

Viktor Szalkay Tel: +7 495 505 97 33 ext. 1358 / 1315

Media

Natalia Ivanova Tel: +7 495 505 97 33 ext. 1010 /1014