Company Announcements

18 October 2021

Etalon Group Announces 3Q and 9M 2021 Operating Results

ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest and longest-established development and construction companies, announces its unaudited operating results for the three months and nine months ended 30 September 2021, based on management accounts.

9M 2021 Operating Highlights

·    New contract sales amounted to 317.4 ths sqm

·    New contract sales in monetary terms increased by 11% year-on-year to RUB 59.5 billion

·    Cash collections rose by 14% year-on-year to RUB 60.2 billion

·    The number of contracts amounted to 6.2 thousand

·    Average price per sqm grew by 30% year-on-year to RUB 187.6 thousand

·    Average price per sqm of apartments in 9M 2021 was RUB 230.5 thousand, up by 33% year-on-year

9M 2021 operating results

Regional breakdown

3Q 2021 Operating Highlights

·    New contract sales amounted to 96.5 ths sqm and RUB 18.4 billion

·    The number of contracts amounted to 1.9 thousand

·    Cash collections totaled RUB 19.3 billion

·    Average price per sqm reached RUB 190.6 thousand, up by 20% year-on-year

·    Average price per sqm of apartments grew by 31% year-on-year to RUB 244.9 thousand

3Q 2021 operating results

Regional breakdown

Quarterly operating performance

Mortgage contract developments

Commenting on the 3Q and 9M 2021 operating results, Etalon Group CEO Gennadiy Shcherbina said:

"In the first nine months of 2021, Etalon Group delivered yet another set of record-setting operating results in monetary terms. We managed to sell 317 ths sqm of real estate for a total of RUB 59.5 billion. Cash collections rose by 14% and exceeded RUB 60 billion.

"Strong price dynamics supported sales, with the average price reaching RUB 245 thousand per sqm in the third quarter. Another important factor was continued improvement in the quality of our portfolio. Since the beginning of the year, we have launched new projects that have expanded our sales offering: two phases of the ZIL-Yug district and the recently launched Voxhall residential complex on Letnikovskaya Street in Moscow, as well as new phases of existing projects. At the ZIL-Yug project in just 5 months we sold 16% of the available apartments, which indicates strong demand for our flagship project.

"Turning to our strategic priority of land bank replenishment, Etalon Group has already added more than 1.9 million sqm to the portfolio so far 2021, in both our traditional and new regional markets. The Company has secured rights to three new projects in St Petersburg with a total area of over 0.2 million sqm. We plan to launch sales at two of them next year, which will make up for the shortage of supply and ensure sufficient diversity in our portfolio. In addition, we entered two new regions: the Novosibirsk region and Omsk. We plan to launch sales for residential neighborhood Green River in Omsk, which has a total NSA of 1.4 mln sqm, by the end of 2021.

"I am confident that by working efficiently with our current portfolio, completing the new acquisitions planned before the end of the year and maintaining a balanced pricing policy will enable the Company to achieve good sales performance by the year-end and reach our operational targets. In addition, the expansion of our project portfolio by 1.9 million sqm and the launch of our first regional project by the end of the year, combined with improved operational efficiency as a result of implementation of strategic initiatives, will help Etalon Group achieve a sustainable growth trajectory and further solidify our position among Russia's leading development companies."

Conference call and webcast

The Company will host a conference call for investors and analysts today at 14:00 London time (16:00 Moscow; 9:00 New York).

On the call, the Etalon Group management team will present the Company's 9M 2021 operating and 1H 2021 IFRS results, as well as an update on the Company's portfolio replenishment and regional expansion. The presentation will be followed by a question-and-answer session for participants.

Webcast:

https://edge.media-server.com/mmc/p/wyx63q2c 

Dial-in numbers:

+44 (0) 2071 928338 - Standard International

+44 (0) 844 4819 752 - London

+7 495 249 9851 - Moscow

+1646 741 3167 - New York

Conference ID Code: 1344576

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

Contact information

Etalon Group

IR Team

T: +44 (0) 20 8123 1328

E: ir@etalongroup.com

EM

Sam VanDerlip

T.: +44 207 002 7859

E: vanderlip@em-comms.com

About Etalon Group

Founded in 1987, Etalon Group is one of the largest development and construction companies in Russia. 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 delivered more than 7.5 million sqm of real estate.

Thanks to its integrated business model, Etalon Group is able to create added value for customers and shareholders at every stage of development, from land plot analysis and acquisition to the operation and maintenance of existing properties. Etalon Group employs over 4,600 people, and its nationwide sales and marketing network covers 59 Russian cities.

Etalon Group's total assets comprise 20 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 2.8 million sqm, as well as a construction and maintenance division. Colliers International valued the Company's total assets at RUB 204 billion as of 31 December 2020.

In 2020, Etalon Group's new contract sales totalled 538 ths sqm, or RUB 79.9 billion. Deliveries in 2020 amounted to 540 ths sqm.

The Company's revenue in 2020 amounted to RUB 78.7 billion, with EBITDA of RUB 12.6 billion.

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