Etalon Group Appoints new Head of Corporate Investments and Investor Relations

11 August 2013

 

Etalon Group Limited (“Etalon Group” or the “Company”), one of Russia’s largest and long established residential real estate developers, announces that it has appointed Kirill Bagachenko as Head of Corporate Investments and Investor Relations. Kirill will officially start with the Company on 12 August 2013.

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Kirill’s Bagachenko’s key responsibilities will include implementing a best practice investor relations programme and helping Etalon Group establish an effective dialogue with investors. Kirill has an excellent understanding of investors’ needs, having worked in the asset management sector for eight years. Prior to joining Etalon Group, he was a senior equity portfolio manager at TKB BNP Paribas Investment Partners, where h e co-managed funds with assets totalling USD 3 billion, investing across all sectors in Russia and the CIS. Kirill Bagachenko was voted one of the top three portfolio managers in Russia in the 2013 Thomson Reuters Extel Survey. His experience includes real estate, equity and fixed income investment funds, as well as pension fund management, making his experience relevant for all types of investors in Etalon Group. Kirill graduated with honours from the St. Petersburg State University of Economics and Finance with a degree in finance and credit, and he currently teaches masters-level courses at his alma mater.

Commenting on the appointment, Etalon Group President Vyacheslav Zarenkov said: “We are very pleased to announce that Kirill will be joining us as the Head of Corporate Investments and Investor Relations. This marks a new phase in our relationship with the investment community, and I am confident that investors will see significant improvement in the quality of Etalon Group’s communications. We firmly believe in the importance of an effective and open dialogue with investors for creating shareholder value, and Kirill is the right man to help us with this.”

These and 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

EM

Sam VanDerlip

T: +44 7554 993 032

T: +7 916 306 6112

E: vanderlip@em-comms.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 more than 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 2012, Etalon Group’s portfolio comprised 35 projects, with a total of 3.58 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. Jones Lang LaSalle valued this portfolio at USD 2,369 million, a 38% increase in the market value from YE 2011.

For the year ended 31 December 2012, Etalon Group’s new contract sales totalled 316,466 sqm, or RUR 23,739 million. Deliveries in 2012 totalled 363 thousand sqm.

The Company recorded revenues of RUB 26.9 billion and EBITDA of RUB 6.9 billion, with an EBITDA margin of 26% for the year ended 31 December 2012, making it one of the most profitable players in the sector.

Etalon Group’s net cash position at 31 December 2012 was RUB 890 million, leaving it well positioned to fund continued dynamic growth.

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12 August 2013