Etalon Group Marks Five Years Since IPO

19 April 2016

 

Etalon Group Limited (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, today marked the fifth anniversary of the listing of its Global Depositary Receipts (“GDRs”) on the London Stock Exchange (“LSE”).  Etalon Group top management celebrated the date at the London Stock Exchange with LSE officials and members of the team that assisted Etalon Group during its IPO.

Etalon Group President Viacheslav Zarenkov said: “Etalon Group’s IPO in 2011 marked one of the most important milestones in the Company’s 28-year history. We did much more than raise over USD 500 million in capital to finance Etalon Group's successful expansion – we have improved nearly every aspect of our operations in order to adhere to global best practices for public companies.  In addition, we now have investors from all over the world who share their ideas and experience with us.

“I am very pleased to highlight Etalon Group’s unprecedented achievements in operational performance over the past five years.  New contract sales increased from RUB 14 billion in 2010 to RUB 35 billion in 2015.  Deliveries increased from 209 ths sqm for 2010 to 502 ths sqm for 2015, and the open market value of the Company’s portfolio grew from RUB 43 billion to RUB 104 billion over the same period.  This has all been achieved while maintaining a strong financial position – one of the strongest among our peers.

“Our GDRs, like the securities of nearly all Russian companies, have been under pressure during the last two years.  While this is disappointing, our core focus is on long-term results.  We continue to work hard to build shareholder value, regardless of short-term market volatility.  We have been through crises in 1998 and 2008, and we know that sentiment can change quickly. When this happens, the market will reward those who have consistently delivered good results. For this reason we always have been and will remain open to the investment community, and continue to adhere to the strict requirements for companies whose securities trade on the London Stock Exchange. I view this not only as a serious responsibility, but as a great honour.”

This 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<br/> E: info@etalongroup.com

EM

Sam VanDerlip<br/> T: +44 7554 993 032<br/> T: +7 499 918 3134<br/> E: vanderlip@em-comms.com 

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About Etalon Group

 

Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of Russia's largest development and construction corporations. The Company focuses on middle class residential real estate in the Moscow and St. Petersburg metropolitan areas, where it operates through Etalon Invest and LenSpetsSMU subsidiaries. With a 28-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry.

Since its inception, Etalon Group has commissioned 5 million sqm. Etalon Group's CAGR for deliveries in 2010-2015 was 19%.

Etalon Group's strong reputation among consumers supports its pre-sales business model, which helps the Company to minimise external financing needs for on-going projects while maintaining a secure liquidity position: net debt as of 31 December 2015 was RUB 7,397 million.

The Company is vertically integrated, which helps it to control costs, quality and timing, as well as to demonstrate best-in-class profitability. Etalon Group employs 5,000 people, and its nationwide sales and marketing network covers 36 Russian cities.

As of 31 December 2015, Etalon Group's portfolio comprised 28 projects, with a total of 2.72 million sqm of unsold net sellable area. JLL valued this portfolio at RUB 104,384 million.

For the year ended 31 December 2015, Etalon Group's new contract sales totalled 385 ths sqm, or RUB 35,080 million. Deliveries in 2015 totalled 502 ths sqm.

The Company recorded revenue of RUB 42.4 billion and EBITDA of RUB 7.7 billion for the year ended 31 December 2015.

Etalon Group Limited's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.

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20 April 2016