Company Announcements

28 March 2022

Value of Etalon Group Assets Reaches RUB 270 Billion

ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest and longest-established development and construction companies, announces the results of its asset valuation as of 31 December 2021, conducted by Colliers International.

The total value of the Company's assets has reached RUB 270 billion, which represents USD 9.5 for one global depositary receipt (GDR) at the exchange rate of the Central Bank of Russia as of 31 December 2021.

Etalon Group's project portfolio, with unsold NSA of 6 mln sqm at 27 projects under development and at completed residential and commercial properties, was valued by Colliers International at RUB 256 billion.

The asset valuation also includes Etalon Group's construction and maintenance division, which was assessed at RUB 14 billion.

Commenting on the asset valuation, Etalon Group CEO Gennadiy Shcherbina said:

"Since the beginning of last year, our project portfolio has more than doubled, and its market value has increased by 34% to RUB 256 billion. This rapid growth in the value of our land bank is driven by our acquisitions programmes, including expansion into new regions. Notably, of the 3.7 mln sqm Etalon Group has acquired since the beginning of 2021, nearly 3.3 mln sqm is in regional markets: Omsk, Novosibirsk, Tyumen and Ekaterinburg.

"Despite the challenges facing the market, Etalon Group has been successfully standardising its product through the use of advanced digital technologies and state-of-the-art industrial housing construction technologies, while also paying close attention to cost controls. These initiatives enable the Company to ensure that housing remains affordable for consumers through existing state support programmes while getting the most value from its land bank at the same time.

"Another important advantage in Etalon Group's favour in the context of accelerating market consolidation is its strong financial position with a net corporate debt to EBITDA ratio of 0.1x. This puts the Company in a position to further increase business volumes through the acquisition of new sites on favourable terms, while smaller players in the current situation are unable to take advantage of economies of scale in order to reduce costs and are thus forced to exit the market."

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

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. In 2021, the Company began a regional expansion programme and has already launched new projects in Omsk, the Novosibirsk region as well as Ekaterinburg and Tyumen. With a 35-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 7.9 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 27 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 6.0 million sqm, as well as a construction and maintenance division. Colliers International valued the Company's total assets at RUB 270 billion as of 31 December 2021.

In 2021, Etalon Group's new contract sales totalled 446 ths sqm, or RUB 84.4 billion. 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.