PIK.L Regulatory News (PIK)

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

4Q 2012 Trading Update

STRONG CASH GENERATION AND FURTHER

 STRENGTHENING OF FINANCIAL POSITION

FULL-YEAR TRADING RESULTS BEAT GUIDANCE FOR THE YEAR

(LONDON, January 23 2013) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, is pleased to publish today a trading update for the twelve months ended December 31, 2012 based upon management accounts.

12M2012 key operational highlights:

·; On the back of a healthy housing market, PIK delivered a year of solid growth, exceeding management expectations and previous guidance to the market;

·; Total gross cash collections grew by 29.6% to RUB67.5 billion (12M11: RUB52.0 billion);

- Cash collections from sales to individuals rose by 47.3% to RUB44.8 billion (12M11: RUB30.4 billion) driven by volume and sales price growth;

- Cash collections from construction services were up by 11.5% to RUB14.4 billion (12M11:RUB12.9 billion);

·; PIK launched 49 new projects (12M11: 41) of which 36 were in the Moscow Metropolitan Area (MMA);

·; New sales contracts to customers grew by 29.0% to 658,000 sq. meters (12M11: 510,000 sq. meters), driven by fundamental demand for affordable housing in Russia;

- In 4Q12 alone new sales contracts to customers reached 219,000 sq. meters, 31.1% higher than in the previous year and 29.6% higher than in 3Q12;

- In December 2012 alone, PIK sold over 118,000 sq. meters to its customers;

·; Mortgage backed sales were stable during the year despite interest rate increases for individual mortgages in the range of 50-100bps;

- 4Q12 mortgage backed sales amounted to 29.2% of total sales;

·; Average selling prices in 2012 increased by 10% in Moscow and 12% in Moscow region and other regions, significantly higher than Russia's inflation;

·; Overall, as a result of the above strong drivers of growth, PIK made a significant step towards deleveraging its balance sheet through cutting its debt burden down to RUB41.8 billion.

·; Compared to December 31 2011, net debt decreased by RUB5.8billion and totaled RUB37.1 billion as of December 31 2012.

2013 Outlook

·; Fundamentals for residential mass market housing remain strong. PIK provides the following annual guidance for 2013:

- Total new sales to customers between the range of 660,000-700,000 sq. meters, with total gross cash collections of RUB69-73billion.

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

Note: including contracted retail and wholesales

Source: Management accounts

Table 3 - Pre-sales launches summary table

Source: Management accounts

Table 4 - 12M2012 pre-sales launches detailed summary

Source: Management accounts

Table 5 - Share of mortgage funded retail sales

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

Source: Management accounts

Table 6 - New sales contracts to retail customers (contracted retail volume)

Note: (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

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