EtalonPromstroy to Deliver Second Stage of Nissan Plant

04 December 2012

 

St. Petersburg – Etalon Group Limited (“Etalon Group” or the “Company”), one of Russia’s largest and long-established residential real estate developers, announces that on 23 October 2012, CJSC EtalonPromstroy (part of Etalon Group) signed a contract with LLC Nissan Manufacturing Rus to be the EPC Contractor for the second stage of the Nissan plant in St. Petersburg.

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Nissan is set to expand its existing production capacity at its St. Petersburg site in Pargolovo, 140 Komendantskiy prospect. The tender was announced by the company and CJSC EtalonPromstroy won despite stiff competition to win the bid.

The project is to encompass the expansion of key facilities at Nissan’s site, including manufacturing buildings, storage areas, and security points. The total area of construction works will be 71,014 square meters.

Information about the Nissan plant in St. Petersburg

  • Location: North-West of St. Petersburg
  • Start of production: June 2009
  • Capital investment: US$ 200 million
  • Total area: 165 hectares
  • Total building space: 66,000 sqm
  • No. of staff: 1,900 people, three working shifts
  • Shops: Body, Paint, Trim and Chassis
  • Productivity: 10 cars per hour
  • Annual capacity: 50,000 units
  • Models produced: X-Trail; Teana; Murano
  • In May 2012 the planned expansion, to be completed by 2014, was declared. This will enable the plant to increase its annual production capacity to 100,000 units, and to produce five different models simultaneously. Further investments of EUR 167 million will add 50 ths sqm of new production facilities, including new Press and Plastics Shops.

Information about EtalonPromstroy

  • EtalonPromstroy is part of Etalon Group and specialises in residential, industrial, and commercial development.
  • Established in 2005, EtalonPromstroy has defined itself as a leading player and has earned a reputation for being a reliable partner, able to realise complex engineering projects.
  • The company’s comprehensive approach enables it to employ the necessary equipment, manpower and expertise to execute complex projects within the required timeframe.
  • EtalonPromstroy operates at each stage of the construction process: from plot acquisition to commissioning, offering clients a comprehensive and flexible range of solutions.

Other recent announcements are available on the Etalon Group website: www.etalongroup.com/investors/news/

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Etalon Group IR Team

T: +44 (0) 20 8123 1328

E: info@etalongroup.com

M: Communications

Sam VanDerlip

T: +7 495 363 2845

vanderlip@mcomgroup.com

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About Etalon Group

History and Overview

Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of Russia's largest residential real estate developers. With a 25-year history, the Company has one of the longest and most successful track records in the Russian real estate industry.

Today Etalon Group is a leading player in Russia’s “Golden Triangle” – St Petersburg, Moscow and the greater Moscow area, with a dominant position in the “comfort class” segment. The Company’s strong foothold in these markets is reinforced further by its unique nationwide sales network covering 9 of the 10 wealthiest regions of Russia, and spanning 30 cities in total. The sales network generates up to 30% of Etalon Group’s revenue, and has been an important source of stable demand even throughout the crisis.

Etalon Group is one of the only truly vertically integrated businesses in the Russian real estate sector. The Company does everything from acquiring land to sales and cash collections from its customers, which enables it to maximise margins throughout the value chain, and reduces exposure to cost inflation from external service providers. Etalon Group is a company of scale, with a total of 40 business units that employ over 4,000 people, two strong management companies, five general contractors, 16 subcontractors, a crane company, a brick factory and a nationwide sales network.

Etalon Group’s strong financial position is driven by its effective pre-sales business model. The Company aims to pre-sell 70-90% of all residential space before a building is delivered. It also targets an average down payment of 50%. This allows Etalon Group to finance the construction process using money from customers, as opposed to using the loans or funding from shareholders.

In addition to homebuilding, Etalon Group’s long history and superior quality offering has helped it to become a trusted industrial construction partner for clients like General Motors, Toyota, Ford Motors, Bosch, Siemens, Nissan, Suzuki and Gazprom in northwest Russia.

Since 20 April 2011, Etalon Group Limited has had its GDRs traded on the Main Market of the London Stock Exchange.

Operational and Financial Highlights

As of 31 December 2011, Etalon Group’s portfolio comprised 31 projects, with a total of 3.25 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. Jones Lang LaSalle valued this portfolio at USD 1,714 million, a 20% increase in the market value from YE 2010.

For the year ended 31 December 2011, Etalon Group’s new contract sales totalled 270,012 sqm, or RUR 18,306 million. Deliveries in 2011 totalled 328 thousand sqm.

The Company recorded revenues of RUB 22.7 billion (USD 774 million) and EBITDA of RUB 8.2 billion (USD 279 million), with an EBITDA margin of 36% for the year ended 31 December 2011, making it one of the most profitable players in the sector.

Etalon Group’s net cash position at 31 December 2011 was USD 167 million, leaving it well positioned to fund continued dynamic growth.

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5 December 2012