ETLN.L Regulatory News (ETLN)

20 July 2020

Etalon Group Board of Directors Meeting Results

ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest and longest-established development and construction companies, announces the results of a Board of Directors meeting held on 17 July 2020 in Moscow.

Dividends

The Board of Directors recommended that the Company pay a final dividend for FY 2019 in the amount of RUB 12 per share / GDR in line with the Company's dividend policy. Subject to approval by the Annual General Meeting of Shareholders, the final dividend will be paid out before the end of 2020. The exact payment date, as well as the dividend record date, will be determined when the details of the Annual General Meeting of Shareholders are announced.

Other decisions

To further improve Etalon Group's investor relations and disclosure practices, the Board of Directors took the decision to transform the Group's Information Disclosure Committee into the Investor Relations and Information Disclosure Committee.

The key objective of this new Committee is to develop a unified investor relations and information disclosure strategy, facilitate an effective dialogue between the investment community and the Board of Directors and further strengthen the investment appeal of Etalon Group securities.

Etalon Group Director for Corporate Investments Petr Kryuchkov will retain his position as Chairman of the transformed Committee. The other member of the Investor Relations and Information Disclosure Committee will be Independent Non-Executive Director Dennis Vinokourov.

The Board has approved a new version of the Policy on Remuneration and Compensation Payable to Members of the Board of Directors. In line with best corporate governance practices, the updated Regulation states that only independent non-executive directors will receive remuneration for their work as members of the Board of Directors and its committees. Executive directors who are employees of Etalon Group, as well as representatives of Sistema, will not receive remuneration for their work on the Board of Directors and its committees.

Sergey Egorov, Chairman of the Etalon Group Board of Directors, said:

"Etalon Group's business and financial positions remain solid despite the challenging economic environment, and the Board of Directors is pleased to recommend a dividend of RUB 12 per share, in line with the Company's dividend policy updated in early 2020. Today's decision to recommend a dividend payment highlights Etalon Group's ability to fulfil its promises to investors even under challenging macro-economic circumstances.

"In addition to paying dividends at the level that investors expect from Etalon Group, the Board of Directors considers further improvements to the quality of investor communications a priority. To that end, we have created an Investor Relations and Information Disclosure Committee. The broader mandate and strengthened composition of this Committee will help Etalon Group develop a robust and coordinated approach to its external communications activities.

"Finally, we have adopted a new policy on remuneration and compensation payable to members of the Board of Directors. From now on, only independent non-executive members of the Board of Directors will receive remuneration for their service. This change in our Board remuneration policy is in line with our cost reduction approach and best corporate governance principles."

This and other recent announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/.

Etalon Group IR TeamT: +44 20 8123 1328E: ir@etalongroup.com

EMSam VanDerlipT: +44 207 002 7859E: vanderlip@em-comms.com

About Etalon Group

Founded in 1987, Etalon Group is one of Russia's largest development and construction companies. The Company focuses on middle class residential real estate in the Moscow and St Petersburg metropolitan areas. With a more than 30-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry. Since its foundation, Etalon Group has commissioned 7 million sqm of real estate.

The Company is vertically integrated, which helps it to control costs, quality and timing, as well as maintain best-in-class profitability. Etalon Group employs over 5,000 people, and its nationwide sales and marketing network covers 57 Russian cities.

In 2019, Etalon Group acquired and consolidated 100% in Leader-Invest, one of Moscow's largest residential developers by size of land bank and number of projects currently available for sale.

Etalon Group's total assets comprise 33 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 3.3 million sqm, as well as a construction and maintenance division. Colliers International valued the Company's total assets at RUB 188 billion as of 31 December 2019.

For the year ended 31 December 2019, Etalon Group's new contract sales totalled 630 ths sqm, or RUB 77.6 billion. Deliveries in 2019 amounted to 622 ths sqm.

The Company recorded a record revenue of RUB 84.3 billion and EBITDA of RUB 8.9 billion for the year ended 31 December 2019.

Etalon Group's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011 and on the Level 1 List of Moscow Exchange since 31 January 2020 under the ticker ETLN.