30 Aug 2016 09:37
PJSC PIK Group / Half-yearly ResultsPJSC PIK Group: 1H2016 CONSOLIDATED FINANCIAL RESULTS (news with additionalfeatures) 30-Aug-2016 / 10:37 CET/CESTDissemination of a Regulatory Announcement, transmitted by EquityStory.RS,LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- / PIK GROUP REPORTS 1H2016 CONSOLIDATED FINANCIAL RESULTS Moscow, August 30, 2016 - PIK Group (LSE: PIK), ('The Group' or 'PIK'), oneof the leading Russian residential developers, today announces itsunaudited Consolidated Financial Statements prepared in accordance withIFRS, for the 6 months ended June 30, 2016. 1H2016 Financial Highlights: - Total cash collections increased by 39.5% to RUB 41.8 billion (1H2015: RUB30.0 billion); - New sales contracts to customers increased by 77.6% to 405 th. sqm. (1H2015: 228 th. sq. meters); - Transfers of real estate to customers increased by 2.6% to 196,000 square meters (1H2015: 191,000 square meters) - Total revenue decreased by 14.2% to RUB18.9 billion (1H2015: RUB22.1 billion). Revenue from sale of real estate decreased by 15.5% to RUB15.7 billion (1H2015: RUB18.6 billion); - Gross profit margin amounted to 29.2% (1H2015: 39.4%); - Adjusted EBITDA decreased by 57.4% to RUB3.0 billion (1H2015: RUB7.1 billion). Adjusted EBITDA margin amounted to 15.9% (1H2015: 32.0%); - Net profit for the year amounted to RUB1.7 billion (1H2015: RUB4.1 billion); - Net cash flow from operations amounted to RUB2.0 billion (1H2015: RUB3.8 billion); - Net debt as of June 30, 2016 was negative and amounted to (RUB6.6 billion) (December 31, 2015: negative (RUB3.9 billion); ***Additional documents:The Consolidated Financial Statements, prepared in accordance with IFRS,for 6 months ended June 30, 2016 can be found under the following link:http://pik-group.com/investors/financial-statements/2016/ Conference Call Dial-In Details: PIK Group's Management will host a conference call for investors andanalysts followed by a Q&A session. Date: Wednesday, August 31, 2016Time: 15:00 Moscow / 13:00 London / 8:00 New YorkTitle: PIK Group 1H2016 IFRS ResultsConference ID: 8770958Domestic line: +7 495 213 0979UK international tel.: +44 20 3427 1913 Enquiries: PIK Group Investors Media Polina Kurshetsova Natalia MikhnaTel: +7 495 505 97 33 ext. 3785 Tel: +7 909 913 14 70E-mail: ir@pik.ru E-mail: pressa@pik.ru Management review of financial condition for the 6 months ended June 30,2016 Group revenues in 1H2016 decreased by 14.2% to RUB 18.9 billion compared toRUB22.1 billion in 1H2015. The decline was driven by lesser amount of highmargin projects recognized in the reported period. Revenues from realestate sales accounted for 83.2% of total revenues compared to 84.4% in1H2015. Sales revenue by segment In RUB billion 1H2015 1H2016 Change, %Revenue from sale of real 18.6 15.7 (15.5%)estateRevenue from construction 1.2 1.2 2.2%servicesRevenue from sale of 2.2 2.0 (12.9%)construction materials andother salesTotal revenue 22.1 18.9 (14.2%) Source: IFRS PIK Group's core revenues come from the sale of apartments. In 1H2016, theywere 15.5% lower due to absence of high margin Moscow projects recognizedin the revenues. The implied revenue per square meter decreased by 17.6% to80.3 thousand rubles. Implied revenue per sq. meter of transferred properties (1) 1H2015 1H2016 Change, %Revenue from sale of real 18.6 15.7 (15.5%)estate, RUB bnTransfers to customers, 000' 191 196 2.6%sqmImplied revenue per sq. meter 97.5 80.3 (17.6%)of transferred property, 000'RUB/sqm Note: (1) calculated as revenue from apartment sales divided by transfersto customersSource: IFRS Gross profit decreased by 36.5% to RUB5.5 billion from RUB8.7 billion. TheGroup's gross profit margin decreased to 29.2% from 39.4% in 1H2015 due tolower margin of the development segment. In 1H2016, administrative expenses increased by 14.5% and amounted toRUB1.4 billion (1H2015: RUB1.2 billion). Factors above resulted that adjusted EBITDA from core activities decreasedby 57.4% to RUB3.0 billion from RUB7.1 billion in 1H2015, whilst adjustedEBITDA margin decreased to 15.9% from 32.0%. Adjusted EBITDA reconciliation 1H2015 1H2016 RUB mln RUB mlnNet profit for the year 4,080 1 667Depreciation and 353 586amortizationInterest expense 1,490 1 002Interest income (891) (1 036)Income tax expense 1,100 293EBITDA 6,132 2 512Adjustments 926 493Adjusted EBITDA 7,058 3 005Adjusted EBITDA margin, % 32.0% 15.9% Source: IFRS As a results of the above factors, profit for the period (net profit)decreased to RUB1.7 billion from RUB4.1 billion. Discussion of Group's current financial position, cash flows and liquidity Net cash from operating activities in 1H2016 reached RUB2.0 billion(1H2015: RUB3.8 billion). As of June 30, 2016, the Group had RUB13.2 billion of gross debt (as ofDecember 31, 2015 - RUB13.2 billion). Net debt as of June 30, 2016 wasnegative and amounted to (RUB6.6 billion), down from negative (RUB3.9billion) at the end of 2015. Directors' Responsibility Statement The attached Financial Report (Consolidated Financial Statements) and thefinancial information contained herein, are the responsibility of, and havebeen approved by, the directors of PIK Group. The directors are responsiblefor ensuring that management prepares the Financial Report in accordancewith the IFRS and the Listing Rules of the Financial Conduct Authority. Notice to readers The calculation of certain measures used in this announcement may bedifferent from the calculation used by other companies and thereforecomparability may be limited. Some of the measures (e.g. EBITDA, adjustedEBITDA, normalized net income, net debt, free cash flow) are not measuresof financial performance under IFRS. Some of the information in this press release may contain guidance,projections or other forward-looking statements regarding future events orthe 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 ofsuch terms or other similar expressions. These statements are onlypredictions and actual events or results may differ materially. PIK Groupdoes not intend to or undertake any obligation to update these statementsto reflect events and circumstances occurring after the date hereof or toreflect the occurrence of unanticipated events. Many factors could causethe actual results to differ materially from those contained in PIK Group'sprojections, guidance or forward-looking statements, including, amongothers, general economic and market conditions, PIK Group's competitiveenvironment, risks associated with operating in Russia, rapid marketchange, and other factors specifically related to PIK Group and itsoperations. This document does not constitute or form part of any offer or invitationto sell or issue, or any solicitation of any offer to purchase or subscribefor, any securities of PIK Group, nor shall any part of it nor the fact ofits distribution form part of or be relied on in connection with anycontract or investment decision relating thereto, nor does it constitute arecommendation regarding the securities of PIK Group. --------------------------------------------------------------------------- Additional features: Document: http://n.eqs.com/c/fncls.ssp?u=HVGFMCASSNDocument title: PIK Group 1H2015 IFRS statements --------------------------------------------------------------------------- The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Archive at www.dgap.de/ukreg --------------------------------------------------------------------------- Language: English Company: PJSC PIK Group 19 bld 1 Barrikadnaya Street 123242 Moscow Russia Phone: +7 (495) 505 97 33 Fax: +7 (495) 229 90 11 E-mail: ir@pik.ru Internet: www.pik-group.ru ISIN: US69338N2062, RU000A0JP7J7 WKN: A0MSSL Listed: Foreign Exchange(s) London, Moscow Category Code: IR TIDM: PIK Sequence Number: 3363 Time of Receipt: 30-Aug-2016 / 10:37 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 497001 30-Aug-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.