13 May 2009 07:29
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NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR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")
FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008
(LONDON, 12 May 2009) - PIK (LSE: PIK), a leading Russian residential developer, today announces its financial results for the year ended 31 December 2008, based upon audited consolidated IFRS accounts.
Financial Summary
Revenues dropped by 38.0% to US$1.43billion (2007: US$2.31billion);
Revenues from sale of real estate activity decreased by 52,6% to US$0,93billion (2007: US$1,97billion), while consolidated gross profit margin shrank by over 4% down to approximately 26% (2007: 30%);
Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 213,7% to approximately US$(1.06)billion (2007: US$937million),
Substantial impairment losses upon PP&E, goodwill, development rights and inventory write downs of US$967 million (2007: nil) were recorded;
Adjusted EBITDA from development activities before accounting for impairment losses and sales of development rights decreased by 78,3% to approximately US$124 million (2007: US$ 571million),
Normalized net loss for the year was US$ 167million (2007: net profit of US$ 329million);
Normalized loss per share amounted to US$0,34 (FY07: net profit per share US$0,69);
Total assets as of December 31 2008 decreased by 5,8% and reached US$4,85billion (2007: US$5,15billion);
Net tangible assets per share as of December 31 2008 amounted to approximately $5.2 (2007: US$6.01);
Total debt as of December 31 2008 has not changed significantly and amounted to US$1,37billion (2007: US$ 1,41billion)
Net debt as of December 31 2008 amounted to US$1,26billion (2007: US$718million);
Kirill Pisarev, CEO of PIK comments:
"The global economic crisis impacted Russia heavily, in particular cyclical industries like real estate, and the liquidity shortage together with falling consumer confidence has had a severe impact on our business.
Looking ahead, the economic outlook is still uncertain and substantial challenges lie ahead. We believe that the next twelve months will continue to be difficult for the Russian economy and for Russian real estate developers.
Longer-term, the fundamentals for our business remain unchanged. There is a shortage of affordable residential housing, an undeveloped mortgage market and a large obsolete housing stock in Russia. These will be the key drivers for PIK Group as the economy recovers."
Enquiries:
PIK Group Tel: +7 495 505 97 33 ext. 1358
Viktor Szalkay
Head of Investor Relations
Citigate Dewe Rogerson Tel: +44 20 7638 9571
Tom Baldock
Lindsay Noton
The full version of the IFRS financial statements is available on the Group's website at http://www.pik.ru/fin_indices/doc_eng/
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
The year 2008 turned out to be for us the most challenging year in our 14-year old history.
Following the bankruptcy of Lehman Brothers in October 2008, the world economy, including for the first time developing economies like Russia, experienced a sharp downturn in output. This was driven by a freezing of the credit markets which has been most keenly felt by capital intensive, cyclical businesses around the world. In Russia, the banking industry together with real estate were among the first to suffer from the market turbulence with previously available credit withdrawn from the financial system, equity markets severely damaged, the ruble badly weakened and consumer confidence hit.
As a results of the above, the Russian economy, which showed growth of 8.1% in 2007, started to suffer and finished 2008 with 5.6% GDP growth. The outlook for 2009 remains challenging for the country and GDP is expected to shrink by about 6%. Ordinary Russian citizens, who have experienced double digit disposable income growth over the past five years, saw growth reduced to 3% in 2008 and expect a decrease of 8% in 2009.
In the critical final quarter of the financial year the Group was unable to raise new finance in any form, while the cost of existing borrowings rose sharply. This combination severely affected the Group's ongoing real estate development activity.
In light of these extreme conditions, the Board moved to realign the Group's priorities. Cost cutting initiatives were put in place and our growth strategy of extending operations into new Russian cities and entering new countries in the CIS was put on hold.
In the short-term, the Group is focused on negotiating revised lending terms with its banks with the aim to stretch maturities and reduce overall debt levels in the future.
Financial summary
During the year we completed over 12,380 apartments (2007: approx 23,000 apartments), equivalent to 813,000 sq. meters (2007:1,542,000 sq. meters). Around 495,000 sq. meters of this total were in Moscow region, while Russia's regions was accounted for 99,000 sq. meters (2007: 371,000 sq. meters). The above figures include PIK commercial housing completions as well as construction services rendered to third parties and shares of third party co-investors.
These significant declines can be primarily attributed to capital constraints in the last quarter of the year, where the majority of the completions usually occur. During the first three quarters of 2008, apartment completions and cash collections were in line with management expectations. Total cash collections for 9M08 stood at US$1.9billion (9M07: US$1.2billion), while cash collections from apartment sales reached US$1.5billion versus US$0.85billion in the same period in 2007.
The momentum from the first nine months continued until the situation deteriorated in the final quarter of the year. Total cash collections for 2008 reached US$2.5billion (2007: US$2.59billion), while collections from apartment sales amounted to US$1.8billion (2007: US$1.77billion). This is achieved despite the fact that a large Moscow City government order did not come through in the last quarter of the year.
Under our conservative accounting standards, cash collections may only be registered as revenue upon registration of the a completed apartment with the local authorities. Therefore with fewer completions achieved, sales fell by 38% to US$1.4billion for the year.
The operating profitability of our core business was also affected by increased sales & distribution and administrative expenses, which almost doubled to US$288million. Accordingly, EBITDA from development activities before accounting for impairment losses and sales of development rights decreased by 78,3% to approximately US$124million (2007: US$ 571 million)
Increased sales and distribution and administrative expenses resulted from a higher headcount during the first half of the year as the Group expanded operations into Russia's regions. During the ten months to October 2008 our total number of employees increased from by approximately 14,000 to 15,300.
With the onset of the financial crisis, PIK Group has moved to reduce costs across the business. Since October 2008 this has included a significant redundancy programme with approximately 2,500 employees laid off.
Given the economic outlook, we had also reviewed impairment testing of our assets, including assumptions on goodwill, PP&E, intangibles, development rights and equity accounted investees. Using more conservative accounting estimates we have recognized a non-cash US$967 million impairment loss in 2008 accounts (2007: nil), mainly attributed on development rights.
The same time, under the current macroeconomic environment, we did not manage to finalize sales of development rights to potential co-investors on certain projects, thereon gain from sale of developments rights was nil (2007:US$372million).
Decreasing revenues, an absence of sales from development rights, increased operational costs and the significant impairment loss detailed above gave the Group a net loss of US$1.1billion for 2008 (2007: net profit US$698million). Accordingly, shareholders' equity (including minorities) shrank by 66.7% from US$2billion to US$682million. Total debt was largely unchanged at approximately US$1,37billion (2007: US$1,41billion).
Operational review
In the period up to the end of October 2008 the Group also made good progress with its strategy of diversification into the regions and the wider CIS, acquiring the land and production facilities necessary to facilitate growth. In line with this strategy, the Group planned to modernize five facilities recently acquired in the regions of Russia. However, given the changed economic circumstances, these capital expenditure plans were put on hold and only one modernised facility in Obninsk (Kaluga region) was launched. Activity at all other production facilities, including those in Moscow and Moscow region, has been significantly cut back.
PIK continues working to finalize construction of residential projects already under development. However all commercial projects and residential projects without active development have been suspended until debt finance becomes available.
Market Overview
The real estate market in Russia has been extremely challenging since end of October last year and remains so today. Apartment sales fell by approximately 90% after the October crisis compared to 2008 summer levels. In the primary market, apartment prices in rubles fell by 5-10% while secondary prices are down by approximately 15-20%.
There have been some signs in March and April that the decline in transaction volumes may be stabilizing. According to official statistics, secondary market transactions in April were over double the level of February 2009. While this is still 30% below Q1 figures for 2008, we are cautiously optimistic that the worst period of shrinking number in transactions and price declines may be over.
Strategy
Our strategy is to prioritise the immediate needs of the business and position PIK for a more normalized economic environment.
We are currently working hard to restructure Group debt and management is in talks with existing lenders regarding the possible replacement of short-term borrowings with longer term debt. Within the framework of the restructuring process, we are aiming to receive additional working capital of US$600million to finish existing construction and launch new developments in 2010. This is our main focus and on 03 April 2009 we announced that the Group had mandated Sberbank Capital (an investment arm of Sberbank), to advise on restructuring the Company's debt portfolio.
Talks with our banks include a proposal for a four month 'standstill' arrangement in respect of existing debt repayment and interest charges. We already received the first consent from the major creditor of the Group. We are also seeking the withdrawal of all existing lawsuits and a moratorium on new ones whiles these talks are ongoing. We believe that the debt restructuring could be finalized during summer 2009.
Our second priority is to maintain the integrity of the business. In doing so, we will seek total cost reductions across our operations of over 30%. We have already begun this process that led to approximately 2,500 redundancies to date and the introduction of reduced working hours for production workers. All non-essential capital expenditure has been postponed. We expect to push through further cost reductions in the coming months as we shape the business for the new economic environment. In total for 2009, we expect total savings from the above measures to reach up to US$90m calculating with current exchange rate.
As well as reducing costs we are seeking to stimulate private sector apartment sales by the competitive purchase conditions of PIK apartments. We will also work with federal and local authorities on social housing programmes and have already concluded contracts for construction services for approximately 250,000 square meters of apartment space in the Moscow metropolitan area for 2009.
Shareholder structure
On 01 April 2009 the Group during the restructuring process announced that Lacero Trading Ltd, part of Nafta Moskva Group, had acquired a 25% stake in PIK Group from its main shareholders, Kirill Pisarev (CEO of PIK) and Yury Zhukov (Chairman of the Board of PIK). The transaction reduced the holdings of the two major shareholders down to 49%. Accordingly, 26% of the Group's shareholders capital is in free float on different exchanges including 0.6% of treasury shares the Group purchased from the market early 2008 with the aim to launch stock-option program for its Management.
Corporate Governance
We comply with the corporate governance requirements applicable to Russian public companies listed on Russian stock exchanges.
In line with Russian requirements, we are required to comply with a number of corporate governance requirements, such requirements include the: (1) obligation to have at least one independent director, (2) setting up an audit committee, (3) adoption of a bylaw on insider trading and (4) implementation of internal control procedures. We are in full compliance with these requirements. In addition, we observe the code of corporate conduct, as recommended by the Russian Federal Service for the Financial Markets.
Board and employees
Since the year end there have been a number of Board changes. On 12 January 2009 we announced the resignation of Evgeny Luneev as the Company's Chief Financial Officer and the appointment of Anna Kolonchina as his successor.
At the Group's General Meeting of Shareholders on February 27 2009 Nozdrachev D.A. - Head of Infrastructure Department, State Corporation at Vnesheconombank ("VEB") - was elected to the Board of Directors. The appointment followed the receipt of US$262million of government funding through VEB,in the final quarter of the year.
In addition, the following personnel were re-elected to the Board:
Zhukov U.V. - Chairman of the Board of Directors;
Pisarev K.V. - President, CEO;
Eyramdzhants A. S. - First Vice President, COO;
Kanaev S.V. - First Vice President;
Timmins, Stuart Lee - Head of Moscow Representative Office of Hines Int. Inc.;
Schmucki, Anselm Oscar - Director of Moscow Representative Office of UBS AG;
Shanti, Sen - Managing Director, City Alternative Investments;
Maryanchik, Alec - Head of the Representative Office of Klever Group Ltd.
Over the last fourteen years we have succeeded in building PIK into an internationally recognized residential real estate developer with over 122,000 unit completions. Now, we face new challenges, with capital in short supply and the financial crisis extending into the real economy. On behalf of the Management Board, we wish to thank all our employees for their hard work in the transformation and commitment during this difficult time and encourage everyone at PIK to continue putting in all the necessary energy to drive PIK Group through the year 2009.
Outlook
The outlook for the overall economy remains challenging, with GDP expected to decrease by 6% in 2009. While the worst of the financial crisis may be over we remain cautious. Despite the currency reserves, which Russia managed to build up in the past years, conditions in the real economy are still unfavorable and credit markets will remain very difficult for the foreseeable future.
Meanwhile, Russia with its 143 million population and obsolete housing stock needs sufficient replacement in the next years. PIK Group's mass market focus and integrated business model is well-fitted into meeting the needs of the middle class for new housing.
PIK Group faces difficult months ahead and the outlook for the business, its 12,800 employees and its shareholders depends on whether an agreement can be reached with its banks on debt restructuring. With a successful outcome to these talks, the challenges we face can be overcome and a re-shaped business can emerge from the economic crisis able to tackle the pressing social need for new housing in Russia.
| Zhukov Y.V. | Pisarev K.V. |
| Chairman of the Board of Director | Chief Executive Officer |
Appendix
Consolidated Financial Statements for the year ended 31 December 2008
Note: The Group's reporting currency is Russian roubles. However, for presentation purposes, these amounts were converted into US$ using average RR/US$ exchange rate of the Central Bank of Russian Federation (FY07: 25.5798; FY08: 24.8639) for the income statement and using RR/US$ exchange rate (31 December 2007: 24.5462; 31 December 2008: 29.3804) for the balance sheet as of the date of reporting.
The full version of the IFRS financial statements is available on the Group's website at http://www.pik.ru/fin_indices/doc_eng/
Consolidated Income Statement for the year ended 31 December 2008
MM US$
| 2008 | 2007 | |||
| restated | ||||
| (audited) | (audited) | |||
| Revenues | 1 434 | 2 313 | ||
| Cost of sales | (1 063) | (1 615) | ||
| Gross profit | 371 | 698 | ||
| Sales of development rights | - | 372 | ||
| Distribution expenses | (47) | (35) | ||
| Administrative expenses | (241) | (122) | ||
| Impairment losses on non-financial assets and inventory write-down | (967) | (3) | ||
| Results from operating activities | (884) | 910 | ||
| Finance Income | 20 | 23 | ||
| Finance Expenses | (314) | (93) | ||
| Share of loss of equity accounted investees (net of income tax) | (4) | (1) | ||
| Profit before income tax | (1 182) | 839 | ||
| Income tax expense | 48 | (141) | ||
| Net profit for the year | (1 134) | 698 | ||
| Basic and diluted (loss)/earnings per share | US$(2.29) | US$1.46 |
Consolidated Balance Sheet as at 31 December 2008
MM US$
| 2008 | 2007 | |||
| (audited) | (audited) | |||
| ASSETS | ||||
| Non-current assets | ||||
| Property, plant and equipment | 438 | 512 | ||
| Intangible assets | 935 | 865 | ||
| Investments in equity accounted investees | 120 | 140 | ||
| Other investments | 6 | 13 | ||
| Deferred tax assets | 3 | 5 | ||
| Other non-current assets | 1 | 6 | ||
| Total non-current assets | 1 503 | 1 541 | ||
| Current assets | ||||
| Inventories | 2 596 | 2 029 | ||
| Other investments | 144 | 138 | ||
| Income tax receivable | 18 | 10 | ||
| Trade and other receivables | 481 | 738 | ||
| Cash and cash equivalents | 108 | 695 | ||
| Total current assets | 3 347 | 3 610 | ||
| Total assets | 4 850 | 5 151 | ||
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Share capital | 1 051 | 1 257 | ||
| Additional paid-in capital | 686 | 791 | ||
| Treasury shares | (83) | |||
| Reserve resulting from additional share issue | (971) | (1 162) | ||
| Retained earnings | (35) | 1 114 | ||
| Total equity attributable to shareholders of the Company | 648 | 2 000 | ||
| Minority interest | 34 | 52 | ||
| Total equity | 682 | 2 052 | ||
| Non-current liabilities | ||||
| Loans and borrowings | 286 | 427 | ||
| Trade and other payables | 52 | 64 | ||
| Provisions | 2 | 3 | ||
| Deferred tax liabilities | 209 | 327 | ||
| Total non-current liabilities | 549 | 821 | ||
| Current liabilities | ||||
| Loans and borrowings | 1 081 | 986 | ||
| Trade and other payables | 2 502 | 1 250 | ||
| Provisions | 31 | 37 | ||
| Income tax payable | 5 | 5 | ||
| Total current liabilities | 3 619 | 2 278 | ||
| Total liabilities | 4 168 | 3 099 | ||
| Total equity and liabilities | 4 850 | 5 151 |
Consolidated Cash Flow Statement for the year ended 31 December 2008
MM US$
| 2008 | 2007 | |||
| (audited) | (audited) | |||
| OPERATING ACTIVITIES | ||||
| (Loss)/profit for the year | (1 134) | 698 | ||
| Adjustments for: | 0 | 0 | ||
| Depreciation and amortisation | 44 | 31 | ||
| Impairment losses | 967 | |||
| Foreign exchange loss, net | 119 | 12 | ||
| Loss on disposal of property, plant and equipment | 4 | 9 | ||
| Provision for investments and receivables | 98 | |||
| Gain on disposals of development rights | (372) | |||
| Gain on disposal of available-for-sale financial assets | (9) | |||
| Negative goodwill on acquisition of subsidiaries and minority interests | 2 | |||
| Share of loss of equity accounted investees | 4 | 1 | ||
| Interest expense | 93 | 81 | ||
| Interest income | (20) | (14) | ||
| Income tax (benefit)/expense | (48) | 141 | ||
| Operating profit before changes in working capital and provisions | 127 | 580 | ||
| Increase in inventories | (1 140) | (339) | ||
| Decrease/(increase) in trade and other receivables | 101 | -423 | ||
| Increase in trade and other payables | 1 409 | 197 | ||
| Decrease in provisions | (1) | (1) | ||
| Cash flows from operations before income taxes and interest paid | 496 | 14 | ||
| Income taxes paid | (38) | (28) | ||
| Interest paid | (128) | (104) | ||
| Cash flows from/(utilised by) operating activities | 330 | (118) | ||
| INVESTING ACTIVITIES | ||||
| Proceeds from disposal of property, plant and equipment | 21 | 2 | ||
| Acquisition of other investments | (2) | |||
| Interest received | 14 | 13 | ||
| Acquisition of property, plant and equipment | (147) | (142) | ||
| Acquisition of development rights and other intangible assets | (711) | (633) | ||
| Acquisition of minority interests | (16) | (1) | ||
| Loans issued | (125) | (347) | ||
| Proceeds from sale of minority interests and development rights | 43 | 421 | ||
| Consideration paid to acquire mortgage loans from related party bank | (96) | |||
| Repayment of mortgage loans | 64 | |||
| Repayment of loans issued | 58 | 267 | ||
| Acquisition of subsidiaries, net of cash acquired | (95) | |||
| Cash flows utilised by investing activities | (897) | (515) | ||
| FINANCING ACTIVITIES | ||||
| Proceeds from borrowings | 1 512 | 1 395 | ||
| Repayment of borrowings | (1 432) | (984) | ||
| Proceeds from share issue | 900 | |||
| Repurchase of own shares | (98) | |||
| Cash flows from financing activities | 10 | 1 273 | ||
| Net (decrease)/increase in cash and cash equivalents | (558) | 642 | ||
| Effect of exchange rate fluctuations on cash and cash equivalents | (2) | (8) | ||
| Cash and cash equivalents at beginning of year | 686 | 32 | ||
| Cash and cash equivalents at end of year | 126 | 666 |
Note: The calculation of following measures used in this announcement is set below. Our calculations of the below measures may be different from the calculation used by other companies and therefore comparability may be limited. The below measures are not measures of financial performance under IFRS.
1a). EBITDA represents net profit/loss for the year before income tax expenses, interest income, interest expense, depreciation and amortization.
| 2008 | 2007 | |||
|
|
| MM USD | MM USD | |
| Net (Loss)/profit for the year |
| (1 134) |
| 698 |
| Depreciation and amortisation |
| 44 |
| 31 |
| Interest expense |
| 93 |
| 81 |
| Interest income |
| (20) |
| (14) |
| Income tax expense |
| (48) |
| 141 |
| EBITDA |
| (1 065) |
| 937 |
1b) Adjusted EBITDA from development activities represents net profit/loss for the year before income tax expenses, interest income, interest expense, depreciation, foreign exchange gain, foreign exchange loss, impairment losses and gain from sale of development rights.
|
| 2008 | 2007 | ||
|
| MM USD | MM USD | ||
| Net (Loss)/profit for the year | (1 134) | 698 | ||
| Depreciation and amortisation | 44 | 31 | ||
| Income tax expenses | (48) | 141 | ||
| Interest expenses | 93 | 81 | ||
| Interest income | (20) | (14) | ||
| Impairment losses on non-financial assets and inventory write down | 967 | 3 | ||
| Impairment losses on financial assets | 103 | |||
| FOREX loss | 119 | 12 | ||
| Income from sale of dev rights | 0 | (372) | ||
| Gain on available of sale assets | 0 | (9) | ||
| Adjusted EBITDA | 124 | 571 |
2. Normalized operating profit calculated as operating profit before impairment losses and gain from sale of development rights.
| 2008 | 2007 | |||
| MM USD | MM USD | |||
| Operating (Loss)/profit for the year | (884) | 910 | ||
| Impairment losses on non-financial assets and inventory write down | 967 | 3 | ||
| Income from sale of development rights | (372) | |||
| Normalized Operating Profit | 83 | 541 |
3. Normalized net profit/loss calculated as net profit before impairment losses and gain from sale of development rights.
| 2008 | 2007 | |||
| MM USD | MM USD | |||
| Net (Loss)/profit for the year | (1 134) | 698 | ||
| Impairment losses on non-financial assets and inventory write down | 967 | 3 | ||
| Income from sale of development rights | (372) | |||
| Normalized Net Profit | (167) | 329 |
4. Normalized profit/loss per share calculated as normalized net profit/loss divided by average number of shares outstanding during the year.
| 2008 | 2007 | |||
| MM USD | MM USD | |||
| Normalized Net Profit | (167) | 329 | ||
| Weighted average number of shares for the year ended 31 December | 490 | 478 | ||
| Normalized Net Profit/share | (0,34USD) | 0,69USD |
5. Total assets calculated as sum of non-current and current assets.
| 2008 | 2007 | |||
| MM US$ | MM US$ | |||
| Total non-current assets | 1 503 | 1 541 | ||
| Total current assets | 3 347 | 3 610 | ||
| Total assets | 4 850 | 5 151 |
6. Total debt calculated as sum of non-current loans and borrowings, current loans and borrowings.
| 2008 | 2007 | |||
| MM US$ | MM US$ | |||
| Non-current Loans and borrowings | 286 | 427 | ||
| Current Loans and borrowings | 1 081 | 986 | ||
| Total debt | 1 367 | 1 413 |
7. Net tangible assets per share calculated as total assets less total debt less intangible assets divided by average number of shares outstanding during the year
| 2008 | 2007 | |||
| MM US$ | MM US$ | |||
| Total Assets | 4 850 | 5 151 | ||
| Total Debt | (1 367) | (1 413) | ||
| Intangible assets | (935) | (865) | ||
| Weighted average number of shares for the year ended 31 December | 490.2 | 477.8 | ||
| Net tangible assets per share | 5,20 | 6,01 |
8. Net Debt calculated as total debt less cash and cash equivalents.
| 2008 | 2007 | |||
| MM US$ | MM US$ | |||
| Total Debt | 1 367 | 1 413 | ||
| Cash and cash equivalents | (108) | (695) | ||
| Total net debt | 1 259 | 718 |
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of PIK. You can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. PIK 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's projections or forward-looking statements, including, among others, general economic conditions, PIK's competitive environment, risks associated with operating in Russia, rapid technological and market change, and other factors specifically related to PIK and its operations.
-END-
NOTES TO EDITORS
PIK Group Overview
Founded in 1994, PIK is one of the leading vertically integrated residential developers operating on a nationwide scale. Its business activities are concentrated in Moscow and the Moscow region with an increasing footprint in many of Russia's other regions. Its principal activity is the development, construction and sale of residential properties in large scale developments targeted primarily at the middle income housing market in Russia.
Since inception, PIK has completed over 7.3 million square meters of housing (equivalent to over 122,000 units) in Russia.
June 1, 2007, the Group completed successful listings on the London Stock Exchange, the RTS and MICEX exchanges in Russia.