PIK GROUP REPORTS 2016 CONSOLIDATED FINANCIAL RESULTS AND PORTFOLIO VALUATION SUMMARY

Moscow, April 18 , 2017 - PIK Group (LSE: PIK), ('The Group' or 'PIK'), the leading Russian residential developer, today announces its audited Consolidated Financial Statements prepared in accordance with IFRS and Valuation Report in respect of the portfolio of its properties for the year ended December 31, 2016.

Corporate events occurred in the reporting period:

In December 2016, PIK acquired 'Morton' group of companies for 11.7 billion rubles Acquired assets have been fully operationally integrated into the PIK Group. Construction and sales are realized under the joint PIK brand.

During 2016 PIK also purchased a number of other assets in the form of land plots, fixed assets and companies providing maintenance services of real estate.
Taking into account these acquisitions the Group became a leader in the construction industry of the Russian Federation.

The total income from the acquisitions amounted to 7.9 billion rubles due to utilization of favorable market environment for the transactions.

2016 Financial Highlights:

- Total revenue increased by 17.5% to RUB 60.1 billion (2015: RUB 51.1 billion); revenue from sale of apartments increased by 25.8% to RUB 54.0 billion (2015: RUB 42.9 billion);

- Adjusted EBITDA decreased by 16.5% to RUB 11.4 billion (2015: RUB 13.7 billion). Adjusted EBITDA margin amounted to 19.0% (2015: 26.8%);

- Net profit for the year increased and amounted to RUB 20.5 billion
(2015: RUB 11.4 billion);

- Gross profit margin amounted to 30.9% (2015: 34.5%). Gross profit margin in the Real Estate Development segment amounted to 31.9% (2015: 38.9%);

- Cash flow from operations before acquisition of development rights and prepayments for development rights increased by 97.2% to RUB 28.3 billion (2015: RUB 14.4 billion). Net cash flow from operations increased by 104.4% to RUB 18.8 billion (2015: RUB 9.2 billion) ;

- Net debt as at December 31, 2016 amounted to RUB 40.7 billion (2015: negative net debt RUB (3.9) billion);

- Transfers of apartments to customers increased by 24.8% to 608 th. square meters (2015: 487 th. square meters).

2016 Development Portfolio Valuation Summary:

- As of December 31, 2016, total net selling area amounted to approximately 12.5 million square meters (5.5 million as of December 31, 2015)

- The market value of the property portfolio increased 115.9% to RUB 217.1 billion (RUB 100.6 billion as of December 31, 2015)

- The market value per square meter decreased by 5.6% to RUB 17.35 thousand.

Sergei Gordeev, President and Chairman of the Management Board, said:

'In 2016, the PIK Group took many successive steps to implement its strategy. We have achieved good results for all key performance indicators and this year we will continue to increase financial and operational efficiency of the company. Due to the acquisition of new assets, the Group became the leader in terms of the volume of construction in Russia. Our task is to reach the next, better level of operational results in 2017'.
***
Additional documents:
The Audited Consolidated Financial Statements, prepared in accordance with IFRS, for the year ended December 31, 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 and analysts followed by a Q&A session.

Date: Tuesday, April 18, 2017
Time: 15:00 Moscow / 13:00 London / 8:00 New York
Title: PIK Group 2016 IFRS Results
Main Conference ID (Russian line): 1258902
Secondary Conference ID (English line): 8474994
Domestic line: +7 495 213 1767
UK international tel.: +44 (0)330 336 9105

Enquiries:

PIK Group

Notice to readers

The calculation of certain measures used in this announcement may be different from the calculation used by other companies and therefore comparability may be limited. Some of the measures (e.g. EBITDA, adjusted EBITDA, net debt) are not measures of financial performance under IFRS.

Some of the information in this press release may contain guidance, projections or other forward-looking statements regarding future events or the 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 of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. PIK Group 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 Group's projections, guidance or forward-looking statements, including, among others, general economic and market conditions, PIK Group's competitive environment, risks associated with operating in Russia, rapid market change, and other factors specifically related to PIK Group and its operations.

This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of PIK Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of PIK Group.