#1INVESTOR PRESENTATION Etalon Group = E E E = 13 APRIL 2017#2DISCLAIMER IMPORTANT: You must read the following before continuing. The following applies to the presentation (the "Presentation") following this important notice, and you are, therefore, advised to read this important notice carefully before reading, assessing or making any other use of the Presentation. In assessing the Presentation, you unconditionally agree to be bound by the following terms, conditions and restrictions, including any modifications to them any time that you receive any information from Etalon Group Limited ("Etalon Group" or the "Company") as a result of such access. 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Forward-looking statements include statements regarding: our construction programme and future construction and development projects (information concerning which is being provided solely on an indicative basis for information purposes only and is subject to change without notice); strategies, outlook and growth prospects; future plans and potential for future growth; liquidity, capital resources and capital expenditures; growth in demand for products; economic outlook and industry trends; developments of markets; the impact of regulatory initiatives; and the strength of competitors. Such forward-looking statements are based on numerous assumptions by management regarding present and future business strategies and the environment operating in the future. 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In addition, the construction programme area figures may not be directly comparable to figures given in respect of similar portfolios held by other real estate development businesses in the Russian market as a result of different assumptions and methodologies. In particular, the "Total area of construction programme" figures include area in which governmental authorities, and other third parties, have an interest. The information contained in this document is provided as at the date of this Presentation and is subject to change without notice. Neither the Company nor any of its agents, directors, officers, employees, shareholders, affiliates, advisors or representatives intend or have any duty or obligation to supplement, amend, update or revise any information contained in this Presentation. This Presentation contains certain unaudited half- and full-year financial information which has been prepared based on the Company's reviewed management accounts. This Presentation contains also certain full- and half-year financial information based on the Company's audited consolidated IFRS accounts. It also includes certain non-IFRS financial information, such as Earnings before interest, taxes, depreciation and amortization ("EBITDA"), EBITDA margin, Working capital and free cash flow ("FCF") which has not been audited or reviewed by the Company's auditors. Neither the Presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions. This Presentation does not contain or constitute and should not be construed as an offer to sell or the solicitation of an offer to buy securities in the United States. 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Etalon Group 1#3SUMMARY 10.2 bln RUB new sales New contract sales in 1Q 2017 amounted to RUB 10,248 million and 113,646 sqm ✓ Cash collections totalled RUB 9,714 million 111 ths RUB average price per sqm for apartments 115.8 bln RUB market value 4,040 mln RUB operating cash flow Average price per sqm for apartments increased by 5% quarter-on-quarter to RUB 111,382 The market value of Etalon Group's portfolio grew by 11% year-on-year in rouble terms and reached RUB 116 bln, or RUB 396 per share/GDR ✓ Landbank volume increased by 5% year-on-year to 2.8 mln sqm of unsold NSA, which is sufficient for 5.7 years based on Etalon's record 2016 new sales volumes ✓ Positive operating cash flow of RUB 4,040 million for FY 2016, despite eight acquisitions totalling 682 ths sqm of NSA and the launch of two flagship projects during the year 7.8 bln RUB net debt Etalon Group Balance sheet remains very strong, with net debt of RUB 7.8 bln, almost unchanged vs. 31.12.2015, despite active land acquisitions and dividend distributions 2#4CONTENTS 1 Operating Results 2 Landbank Valuation 3 Financial Results 4 Selected Projects 5 Appendix 3 Etalon Group#51 OPERATING RESULTS Парсилифо СУПЕРМАРКЕТ лайм ✓ Etalon Group Tsar's Capital 1st stage, 2013#61Q 2017 OPERATING RESULTS YEAR-ON-YEAR COMPARISON IMPACTED BY VERY HIGH BASE EFFECT NEW CONTRACT SALES sqm 46,990 +187% -16% 135,003 113,646 NEW CONTRACT SALES mln RUB 3,804 +238% -20% 12,860 10,248 1Q 2015 1Q 2016 1Q 2017 1Q 2015 1Q 2016 1Q 2017 AVERAGE PRICE CASH COLLECTIONS mln RUB RUB/sqm 125,000 111,966 110,413 111,382 106,228 105,297 110,000 105,040 105,928 102,417 100,502 95,000 80,000 102,223 99,144 97,918 95,254 93,746 90,258 89,272 90,178 6,003 80,946 65,000 50,000 1Q15 2015 3Q15 4Q15 1Q16 2016 3Q16 4Q16 1Q17 Source: Company data ⚫apartments total (1) Includes sales of 14 ths sqm of office and sporting premises which prices per sqm are typically below average for residential Etalon Group OPERATING RESULTS LANDBANK VALUATION +76% -8% 10,571 9,714 1Q 2015 1Q 2016 1Q 2017 FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 5 LO#7HEALTHY GROWTH IN OPERATING PERFORMANCE THROUGHOUT 1Q 2017 NEW CONTRACT SALES sqm 30,884 +13% 34,761 +38% 48,000 January 2017 February 2017 March 2017 CASH COLLECTIONS mln RUB +16% +3% 3,611 3,003 3,100 January 2017 February 2017 March 2017 NEW CONTRACT SALES mln RUB +16% 3,262 2,818 +28% 4,168 January 2017 February 2017 March 2017 NEW CONTRACT SALES FORECAST bln RUB 47.4 2016A ■Actual NCS, bln RUB Source: Company data. Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS +20% 40 57 10.2 2017F Planned NCS, bln RUB SELECTED PROJECTS APPENDIX 6#8NEW SALES PERFORMANCE WILL BE SUPPORTED BY FURTHER DIVERSIFICATION OF PROJECT MIX 1Q 2016 NEW CONTRACT SALES BY PROJECT sqm Landyshi Golden Star 4% Other projects Swallow's Nest 7% 7% 7% Emerald Hills 18% Samotsvety 5% 9% Tsar's Capital 25% Etalon City 18% Moscow Gates 1Q 2017 NEW CONTRACT SALES BY PROJECT sqm House on Obruchevykh street Landyshi 3% 2% Other projects Golden Star 10% Swallow's Nest 4% 5% Galactica Emerald Hills 19% 6% Summer Garden 6% 7% Samotsvety 15% Tsar's Capital 11% 12% Etalon City " " SIGNIFICANT SALES PORTFOLIO DIVERSIFICATION Galactica launched in 4Q 2016 and brought 6% of 1Q 2017 new contract sales The Normandy project in Moscow was launched in late March 2017 ■ Four more projects are due to be launched by the end of the year NORMANDY CASE STUDY Launched in late March 2017, Normandy comprises four residential buildings of up to 22 stories each, underground parking facilities, a pre-school and a primary school. The total planned NSA of the complex is 92 ths sqm. The project is located in Moscow's Losinoostrovsky District close to Losiny Ostrov National Park, Torfyanoy and Tayezhny Parks. The complex is within walking distance of two metro stations and has easy access to major transport routes. Source: Company data. Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS Moscow Gates SELECTED PROJECTS APPENDIX 7#9MORTGAGE RATES CONTINUE TO DECLINE PROVIDING ADDITIONAL SUPPORT TO NEW SALES SHARE OF MORTGAGE SALES AVERAGE MORTGAGE RATE IN RUSSIA (1) 15.00% 20% 22% 14.50% 14.00% 14.16% 14.46% 14.54% 14.23% 13.79% 13.50% 13.00% 13.44% 12.50% 12.00% 1Q 2016 11.50% 1Q 2017 11.00% ■ HIGHLIGHTS Etalon Group offers mortgage programmes with major banks, including Sberbank, VTB Group, Gazprombank, Raiffeisen Group and Absolut Bank ■ Joint programmes established with 26 banks and special mortgage agencies to offer flexible financing options: minimum down payment: 10 - 20% maturity: 1 30 years - interest rate: from 9.9% DECLINE IN AN AVERAGE INTEREST RATE SUPPORTED GROWTH IN PRIMARY MARKET MORTGAGE LOANS (2) 1,169 13.36% +27% 1,481 12.49% Jan-15 Mar-15 May-15 Jul-15 Sep-15 12.51% 12.24% Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 12.48% 12.70% 12.74% 12.68% 12.49% 11.84% Source: Company data (1) Weighted average interest rate on mortgage loans given to Russia residents during the month for acquisition of apartments on the primary market. Source: CBR data (2) Volume of and weighted average interest rate on mortgage loans given to Russia residents during the year for acquisition of apartments on the primary market. Source: CBR data Etalon Group OPERATING RESULTS LANDBANK VALUATION 2015 Volume of mortgage loans, bln RUB FINANCIAL RESULTS SELECTED PROJECTS 2016 -Average interest rate, % APPENDIX 8#10POSITIVE WORKING CAPITAL DEVELOPMENTS INVENTORY OF COMPLETED AND AVAILABLE-FOR-SALE APARTMENTS ths sqm 244 31.12.2016 AVERAGE DOWN PAYMENT -33 ths sqm -33 211 inventory contracted in 1Q 2017 31.03.2017 74% 71% 69% 66% ° 66% 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Source: Company data. • HIGHLIGHTS 14% of inventory on books as of 31 December 2016 sold down during 1Q 2017 Completed and available-for-sale apartments accounted for 45% of all apartments contracted in 1Q 2017 Average down payment amounted to 74% in 1Q 2017, up from 66% in 1Q 2016 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 9#112 Emerald Hills 3rd stage, 2016 LANDBANK VALUATION ✓ Etalon Group#12ETALON LANDBANK VALUE INCREASED BY 11% AND REACHED RUB 116 BLN OUR KEY COMPETITIVE ADVANTAGE IS OUR WELL-DIVERSIFIED PORTFOLIO OF HIGH QUALITY PROJECTS LANDBANK AT A GLANCE Open market value(1) RUB 115.8 bln Open market value per share/GDR USD 6.5(2) 园 Unsold NSA 2.82 mln sqm LANDBANK DEVELOPMENT 0% +28% +31% +24% +28% +11% 116 104 104 89 72 55 43 2010 2011 2012 2013 2014 2015 2016 ■Open market value (1), RUB bln 21 projects in Moscow Metropolitan Area (3) and St Petersburg Location 49%/51% Moscow Metropolitan Area (3) to St Petersburg Five projects in Moscow and Moscow region under construction Higher share of prime location projects linked to comfort plus and business class (1) JLL estimate as of 31.12.2016 (2) USD/RUB fx rate as of 31 December 2016 60.66 (3) Moscow, New Moscow and Moscow region within 30 km from Moscow Ring Road Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 11#13OPERATIONS IN ST PETERSBURG AND MMA(1) PROJECTS IN ST PETERSBURG 11 1 2 8 10 4 9 5 6 1 PROJECTS IN MOSCOW METROPOLITAN AREA(1) 10 3 Under construction Design stage Completed (1) Moscow, New Moscow and Moscow region within 30 km from Moscow Ring Road Etalon Group OPERATING RESULTS 4 9 6 8 5 LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 12#14ETALON GROUP PORTFOLIO: HIGH QUALITY PROJECTS DIVERSIFIED ACROSS THE TWO MOST LUCRATIVE MACRO REGIONS IN RUSSIA Project Current Projects St. Petersburg Status Total NSA ('000 sqm) Unsold NSA (Etalon's share) parking (lots), ('000 sqm) (1) Unsold OMV (mln RUB) Income from sales # (mln RUB) (2 Construction budget (mln RUB) (3) Outstanding budget (mln RUB) (3) 1. Galactica 2. Moscow Gates 3. Samotsvety 4. Kalininskiy District Construction 841.1 660.1 4,395 15,174 69,618 44,064 38,877 Construction 234.6 101.6 804 8,004 21,642 10,849 1,854 Construction 212.8 94.7 785 5,903 18,252 9,360 2,742 Design stage 95.9 81.9 496 1,596 8,022 4,388 4,378 5. Landyshi (Polyustrovskiy prospect) Construction 91.8 34.1 397 1,806 7,551 4,092 2,121 6. Krasnogvardeiskiy District Design stage 50.0 50.0 197 1,239 4,795 2,710 2,710 7. House on Obruchevykh street Construction 42.3 36.8 476 1,949 5,153 2,438 2,288 8. Beloostrovskaya (Primorskiy District) Design stage 33.5 33.5 210 614 4,088 2,467 2,458 9. House on Kosmonavtov Construction 26.3 24.1 198 788 2,319 1,224 1,216 10. Krapivniy pereulok (Fusion) Design stage 14.0 14.0 83 719 1,800 810 806 11. Korolyova prospect Total SPMA Moscow Metropolitan Area (MMA)(4) 1. Emerald Hills Design stage 6.0 6.0 35 177 562 362 331 1,648 1,137 8,076 37,969 143,803 82,765 59,780 Construction 855.9 321.2 2,136 18,415 65,149 38,793 9,527 2. Etalon-City Construction 365.1 133.5 1,163 7,512 27,827 20,324 8,919 3. Summer Garden (Dmitrovskoe shosse) Construction 283.4 207.1 1,053 6,880 29,328 17,640 16,034 4. Silver Fountain (Alekseevskiy District) Design stage 182.9 169.6 2,160 9,573 25,085 9,700 9,489 5. Ryazanskiy prospect Design stage 185.3 149.9 1,446 3,603 19,976 11,330 11,330 6. Perovo Region Design stage 172.9 138.4 1,335 3,564 18,791 10,382 10,381 7. Normandy (Losinoostrovskiy District) Construction 91.5 83.9 851 3,727 10,221 4,833 4,703 8. Nizhegorodskiy Region Design stage 86.2 72.0 734 1,719 9,231 5,389 5,388 9. Golden Star (Budennogo) Construction 85.1 41.2 264 3,005 10,054 5,343 2,598 10. Mytishinskiy District Design stage 59.6 52.2 212 1,142 5,080 2,852 2,847 Total MMA 2,368 1,369 11,354 59,140 220,741 126,586 81,216 Total Current Projects 4,016 2,506 19,430 97,109 364,544 209,351 140,996 Completed Projects Residential property in completed projects Completed stand-alone commercial properties Total Completed Projects All Projects Total Etalon Group Projects Source: all numbers based on JLL report as of 31.12.2016 (1) Including parking with average area c. 30 sqm Etalon Group OPERATING RESULTS 2,088.0 302.6 5,373 9.9 9.9 55 18,440 269 145,105 2,098 313 5,428 18,709 401 145,506 6,114 2,819 24,858 115,818 510,050 209,351 140,996 (2) Income from sales includes potential and received incomes as of 31.12.2016 (3) Excluding land acquisition costs (4) Moscow, New Moscow and Moscow region within 30 km from Moscow Ring Road LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 13#15NEW PROJECTS ACQUIRED IN MMA(1) IN 2016 PROJECT IN THE PEROVO DISTRICT PROJECT IN THE NIZHEGORODSKIY DISTRICT PROJECT IN THE MYTISHCHINSKIY DISTRICT Total NSA: 173 ths sqm Total NSA: 86 ths sqm Total NSA: 60 ths sqm Construction to start in 2018 Construction to start in 2018 Construction to start in 2017 PROJECT NEAR RYAZANSKIY PROSPEKT Total NSA: 185 ths sqm Construction to start in 2018 The new project will include 105 ths sqm of residential area, 1,500 parking places, a pre-school, and a school. The land plot is located in an area with well-developed infrastructure, and is approximately 1 km from Izmaylovsky park. The project will have good transport accessibility: central Moscow can be reached in 20 minutes by car or by metro from the nearest station, Shosse Entuziastov, which is within just 10 minutes' walk. The project will include 53 ths sqm of residential area, 864 parking places and a pre-school. It is located in the Nizhegorodskiy region of the South-Eastern administrative district of Moscow. The project will have good transport accessibility: central Moscow can be reached in 15 minutes by car, and the nearest metro station, Novokhokhlovskaya, is within just 10 minutes' walk. The new comfort-class residential project is located in the Mytishchinsky district of the Moscow region, six kilometres from the Moscow Ring Road. The project will include four low-rise buildings up to three stories high, containing 780 flats, a detached parking garage, a pre-school and a primary school for 105 and 215 students, respectively. The project will include 113 ths sqm of residential area, 1,700 parking places, a school, and two pre-schools. It is located 10-15 minutes' walking distance from the Nizhegorodskaya metro station, with schools, pre- schools, stores and several shopping malls in close proximity. Central Moscow is a 20-minute car ride from the development. (1) Moscow, New Moscow and Moscow region within 30 km from Moscow Ring Road Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 14#16NEW PROJECTS ACQUIRED IN ST PETERSBURG IN 2016 PROJECT IN THE KALININSKIY DISTRICT HOUSE ON KOSMONAVTOV PROSPEKT HOUSE ON OBRUCHEVYKH STREET FUSION Total NSA: 96 ths sqm Total NSA: 26 ths sqm Total NSA: 42 ths sqm Total NSA: 14 ths sqm Construction to start in 2017 The project will comprise a 12-storey building with a 550-place parking garage. The expected NSA of the project is 96 ths sqm, including 68 ths sqm of residential area. The site is located on a 5-hectare land plot within walking distance of two metro stations and four kilometres from central St Petersburg, in an area with well-developed infrastructure. Construction started in December 2016 Located in the Moskovskiy district of St Petersburg, the project comprises a 25- storey building with 312 apartments, underground parking and a pre-school. It is 10-minutes' walk from the Zvezdnaya metro station and has access to major roads, including Moskovskiy prospekt, Vitebskiy prospekt and Prospekt Kosmonavtov. The complex is situated close to a number of stores, educational, and sports facilities, as well as to Pulkovskiy park. Construction started in August 2016 The project is located in the Kalininskiy district of St Petersburg and will include a 20-storey residential building containing 765 flats, a parking garage, and a pre-school. The land plot is located within walking distance of the Polytekhnicheskaya and Akademicheskaya metro stations in a well-developed district. The Sosnovka and Polytechnic University parks are both within walking distance of the development. Construction started in April 2017 The project will comprise a 9-storey building with 110 apartments, an 83- place parking garage, and a pre-school. The site is located near the historic centre of St Petersburg and the Neva embankment, on a quiet side street on the border of the Vyborgskiy and Petrogradskiy districts. Grenaderskiy Garden and Sampsonievskiy Garden are just around the corner. Vyborgskaya metro station is within 5-minutes' walk. Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 15#17NEW LAUNCHES IN 2017 WILL FURTHER SUPPORT SALES PERFORMANCE SILVER FOUNTAIN NORMANDY Moscow Total NSA: 183 ths sqm Moscow Total NSA: 92 ths sqm FUSION St Petersburg Total NSA: 14 ths sqm KALININSKIY DISTRICT St Petersburg Total NSA: 96 ths sqm Planned launch of sales: 1H 2017 The project is located in the North- Eastern District of Moscow, close to Prospect Mira. The district is characterized by developed residential, business and transport infrastructure. The site has good transportation access. The nearest metro station, Alekseevskaya, is located 10 minutes away by public transport, while the city center is within a 15-20 minute drive by car. Launched in March 2017 The project is located in Losinoostrovsky District, part of North-East District of Moscow. It consists of mostly residential buildings (20-30 years old) and a small number of industrial enterprises. The district lies in close proximity to Moscow Ring Road (MKAD). The nearest metro stations to the project are Medvedkovo and Babushkinskaya, both within 2 km. The entrance to the site is available from Tayninskaya street. The site is surrounded mainly by multi-storey residential blocks. Launched in April 2017 The project is located on a quiet side street on the border of the Vyborgskiy and Petrogradskiy districts of St Petersburg. The site is located near the historic centre of St Petersburg and the Neva embankment. This is a well-developed area of the city, with educational, medical and sporting facilities, as well as shops, banks and cafes all in close proximity. The project is surrounded by parks, with Grenaderskiy Garden and Sampsonievskiy Garden just around the corner. Vyborgskaya metro station is within 5-minutes' walk. Planned launch of sales: 2H 2017 The project is located in the Kalininskiy District of St Petersburg. The site is situated to the north-west from the intersection of Marshala Blukhera Prospect and Kushelevskaya Road. The project is close to the Europolis shopping centre, which contains restaurants, banks, a pharmacy, a cinema, food and clothing departments. The nearest metro station, Lesnaya, is located 15 minutes' walk to the west. Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 16#183 FINANCIAL RESULTS ✓ Etalon Group Near Rostral Columns, 2006#19LOWER DELIVERIES ENABLE INVENTORY RELEASE AND HIGHER CASH FLOW GENERATION, BUT NEGATIVELY IMPACT IFRS REVENUE RECOGNITION DELIVERIES ths sqm 502 2015 -16% 420 2016 RESIDENTIAL REAL ESTATE DEVELOPMENT REVENUE mln RUB 32,474 +3% 33,499 2015 2016 CONSTRUCTION SERVICES EXTERNAL REVENUE mln RUB TOTAL REVENUE mln RUB 4,877 +75% 8,526 2015 2016 Source: IFRS financial statements 42,404 2015 +16% 49,022 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS 2016 APPENDIX 18#20PROFITABILITY IMPACTED BY RECOGNITION OF SALES IN 2015's WEAKER MARKET ENVIRONMENT AND BY CHANGES IN REVENUE MIX RESIDENTIAL DEVELOPMENT ADJUSTED GROSS PROFIT (1) mln RUB -5% 13,362 2015 12,675 2016 CONSOLIDATED ADJUSTED GROSS PROFIT (1) mln RUB -3% 13,896 13,450 2015 CONSTRUCTION SERVICES GROSS PROFIT mln RUB 333 +82% 605 2015 2016 EBITDA mln RUB -5% 7,675 7,301 Residential development adjusted gross profit margin recovered from 35.5% in 1H 2016 to 39.1% in 2H 2016 SG&A expenses as a percentage of revenue decreased 240 bps from 14.6% in 1H 2016 to 12.2% in 2H 2016 EBITDA margin recovered from 8.7% in 1H 2016 to 19.1% in 2H 2016 NET INCOME mln RUB 5,429 -10% 4,902 2016 2015 2016 2015 2016 Source: IFRS financial statements (1) Adjusted for interest in cost of sales OPERATING LANDBANK Etalon Group RESULTS VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 19#21DESPITE ACTIVE ACQUISITIONS, ETALON GENERATED OVER RUB 4 BLN OF OPERATING CASH FLOW, WHICH WILL FUND UPGRADED DIVIDEND POLICY ANNUAL OPERATING CASH FLOW (1) CHANGES AND ACQUISITION PIPELINE 0 682 4,040 (3,297) 2015 2016 NSA of projects acquired, ths sqm Operating cash flow(1), mln RUB DIVIDEND BASE COMPARISON mln RUB +11% 3,594 3,236 2H 2015 2H 2016 Net income, mln RUB Source: IFRS financial statements (1) Operating cash flow less interest paid Etalon Group HIGHLIGHTS Operating cash flow turned positive despite acquisition of eight new projects in 2016 On 20 May 2016, the Board of Directors increased the Company's target dividend payout range to 30%-50% of consolidated IFRS net income Board of Directors will consider a final dividend at its meeting on 28 April 2017 DIVIDEND PAYOUT RATIO INCREASED UNDER NEW DIVIDEND POLICY 50% 30% 30% 15% OLD OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS NEW APPENDIX 20 20#22MAINTAINING STRONG BALANCE SHEET STRONG LIQUIDITY POSITION UNCHANGED 19,414 18,054 12,017 BALANCED GROSS DEBT COMPOSITION (AS OF 31/12/2016) ■Local bonds 10,206 40% 60% ■ Bank loans 31.12.2015 31.12.2016 Debt, mln RUB ■Cash and cash equivalents, mln RUB (1) NET DEBT mln RUB 7,848 7,397 31.12.2015 Source: IFRS financial statements (1) Including bank deposits in ST Investments Etalon Group 31.12.2016 HIGHLIGHTS 100% of debt denominated in RUB Average cost of borrowings declined from 13.95% at the end of 2015 to 12.71% at the end of 2016 OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 21#234 SELECTED PROJECTS ExpoForum, 2015 E ✓ Etalon Group 11#24GALACTICA MARCH 2017 DECEMBER 2016 St Petersburg Total NSA 841 ths sqm I Open Market Value (1) RUB 15,174 mln Income from sales (1) RUB 69,618 mln (1) JLL estimate as of 31.12.2016 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 23#25MOSCOW GATES MARCH 2017 100 000 COACHED DO St Petersburg Total NSA 235 ths sqm DECEMBER 2016 Open Market Value (1) RUB 8,004 mln Income from sales (1) RUB 21,642 mln (1) JLL estimate as of 31.12.2016 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 24#26SAMOTSVETY MARCH 2017 DECEMBER 2016 St Petersburg Total NSA 213 ths sqm Open Market Value (1) RUB 5,903 mln Income from sales (1) RUB 18,252 mln (1) JLL estimate as of 31.12.2016 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 25#27LANDYSHI MARCH 2017 DECEMBER 2016 St Petersburg Total NSA 92 ths sqm Open Market Value (1) RUB 1,806 mln Income from sales (1) RUB 7,551 mln (1) JLL estimate as of 31.12.2016 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 26#28HOUSE ON OBRUCHEVYKH STREET MARCH 2017 St Petersburg Total NSA 42 ths sqm Open Market Value (1) RUB 1,949 mln DECEMBER 2016 Income from sales (1) RUB 5,153 mln (1) JLL estimate as of 31.12.2016 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 27#29EMERALD HILLS MARCH 2017 Moscow region Total NSA 856 ths sqm (1) JLL estimate as of 31.12.2016 DECEMBER 2016 Open Market Value (1) RUB 18,415 mln Income from sales (1) RUB 65,149 mln Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 28#30ETALON CITY MARCH 2017 Moscow Total NSA 365 ths sqm (1) JLL estimate as of 31.12.2016 11 " DECEMBER 2016 Open Market Value (1) RUB 7,512 mln Income from sales (1) RUB 27,827 mln Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 29#31SUMMER GARDEN MARCH 2017 Moscow Total NSA 283 ths sqm (1) JLL estimate as of 31.12.2016 DECEMBER 2016 Open Market Value (1) RUB 6,880 mln Income from sales (1) RUB 29,328 mln Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 30#32GOLDEN STAR MARCH 2017 Moscow Total NSA 85 ths sqm Open Market Value (1) RUB 3,005 mln (1) JLL estimate as of 31.12.2016 DECEMBER 2016 Income from sales (1) RUB 10,054 mln Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 31#335 APPENDIX ✓ Etalon Group 1800 AAAAAAAAAAAAAA Prestige, 2014#34AT A GLANCE PRESENCE IN RUSSIA'S LARGEST MARKETS ■ Focus on middle class residential real estate in Moscow metropolitan area (MMA) and St. Petersburg metropolitan area (SPMA) ■ 12% CAGR for deliveries over 2010- 2016(1) STRONG DELIVERY TRACK RECORD ■ Over 29 years of construction & development experience 5.4 mln sqm commissioned TRUE VERTICAL INTEGRATION Strategic vertical integration in key value-added segments of property development enables the Company to control costs, quality and timing ■ 5 ths employees Country-wide sales network covering 49 cities DIVERSIFIED PROJECTS PORTFOLIO ■ Land bank of 2.82 mln sqm (2) ■ Land bank sufficient until 2020 Projects well diversified by locations within both SPMA and MMA Etalon Group OPERATING RESULTS LIQUIDITY AND CREDIT RATINGS ■ Secure liquidity position supported by pre-sales cash collections model ■ Low leverage: 1.1x net debt / EBITDA(3) Credit rating by S&P: B+/B(4) CORPORATE GOVERNANCE ■ 10 BoD members, 7 NEDS ■ Board of Directors consists of professionals with broad range of experience and expertise, ensuring that the interests of all groups of shareholders are appropriately represented Monthly visual updates on projects, quarterly trading updates and semi- annual financial reporting ■ Official guidance on deliveries and new contract sales Dividend policy aims to pay out 30% to 50% of IFRS net profit semi- annually (1) Company operating results; (2) JLL land bank valuation report as of 31.12.2016; (3) IFRS financial statements (4) 'B+' long-term & 'B' short-term corporate credit ratings of SSMO LenSpetsSMU (last reconfirmed on 03.06.2016). LANDBANK VALUATION LSE ticker Share price Market capitalisation ETLN:LI USD 3.69 (12.04.2017) USD 1,078 mln (12.04.2017) Portfolio valuation (by JLL) RUB 115,818 mln (31.12.2016) PORTFOLIO COMPOSITION (2) 11% 49% 51% 30% 59% ■ SPMA ■ MMA ■ Projects under development Projects at design stage ■ Projects completed FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 33#35STRATEGIC VERTICAL INTEGRATION: CONTROL OVER COSTS, QUALITY AND TIMING ETALON GROUP OPERATES IN EVERY PART OF PROPERTY DEVELOPMENT PROCESS I | F Land Acquisition and Permits Construction Materials (1) Design Effective Capital Recycling Control over costs, quality and timely delivery of projects Construction Contracting and Commissioning Funding Independence from suppliers, but only in crucial areas 雇 Tower Cranes (2) Sales and Marketing Ongoing Maintenance and Service Business stability and lower risk of dependence on counterparties Understanding of customer needs (sales network throughout the country) (1) Brick plant and concrete products plant. Own production only for "bottleneck" construction materials (2) 62 tower cranes (Liebherr and Wolff). Data as of 31.12.2016 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED APPENDIX 34 PROJECTS#36NATIONWIDE SALES & MARKETING NETWORK SUPPORTS SUSTAINABLE CONTRACTING POWERFUL SALES NETWORK ACROSS THE COUNTRY Regional population actively buys apartments in Moscow and St. Petersburg Murmansk Monchegorsk Apatity SPMA Arkhangelsk Severodvinsk ● Naryan-Mar Ukhta • Norilsk Siktivkar Nadim MMA Perm Noviy Urengoy ETALON GROUP'S REGIONAL SALES GEOGRAPHY(1) Share of total Region contracts Leningrad region Krasnoyarski krai 3.0% 1.9% Yamalo-Nenets AD 1.4% Khanty-Mansiysk AD 1.4% Khabarovski krai 1.2% Murmansk region 1.0% Arkhangelsk region 0.9% Petropavlovsk- Kamchatskiy Krasnodar region Other Russian regions Foreigners Magadan Total 0.9% 19.2% 1.2% 32.1% Yakutsk Tyumen Tolyatti Ekaterinburg • Etalon Group's sales offices / representatives Samara Kamensk Uralskiy Gubkinskiy Khanty-Mansiysk Surgut Krasnodar Snezhinsk Nefteyugansk Chelyabinsk ◆ Nizhnevartovsk Kemerovo Krasnoyarsk Ust-Ilimsk Komsomolsk-on-Amur Omsk⚫ Khabarovsk Novosibirsk Novokuznetsk Tashtagol Chita Blagoveshchensk Irkutsk Mirniy Kholmsk Uzhno-Sakhalinsk Korsakov THE GROUP'S FLATS ARE SOLD IN 14 OUT OF RUSSIA'S 15 RICHEST REGIONS Regional income per capita to Russia average (2) Nenets AD 2.3x Yamalo-Nenets AD 2.0x Moscow 1.8x Established relationships / partnerships with local sales agencies Ussuriysk Vladivostok Chukotka 1.7x Sakhalin region 1.6x Magadan region 1.5x ■ Etalon Group's sales force is focused on the regions with the largest income per capita ■ Key markets: SPMA and MMA Khanty-Mansiysk AD 1.4x Moscow region 1.3x St. Petersburg 1.3x Tyumen region 1.3x ■ 49 cities covered with 10 sales offices in St. Petersburg and 20 more sales offices nationwide ■ External professional marketing and sales service agents engaged nationwide Kamchatski krai 1.3x Yakutia 1.3x Khabarovski krai 1.2x Sverdlovsk region 1.1x Murmansk region Russia average 1.1x Etalon Group's target regions (1) Source: company data for 1Q 2017 (2) Average monthly cash income per capita, Rosstat's preliminary estimates for 12M 2016 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED APPENDIX 35 55 PROJECTS#37BOARD OF DIRECTORS REPRESENTS INTERESTS OF ALL INVESTOR GROUPS VIACHESLAV ZARENKOV President, CEO and Founding shareholder Experience and awards 47 years of experience in construction industry Honoured builder of Russia (1) Education Institute of Civil Engineering, St. Petersburg University of Internal Affairs PhD in Economics, PhD in Technical Sciences, PhD in Architecture, Professor KIRILL BAGACHENKO Deputy CEO and Vice President Experience and awards 12 years' experience in corporate finance and asset management Previously held position of senior equity portfolio manager at TKB BNP Paribas Investment Partners Voted one of the top three portfolio managers in Russia by Thomson Reuters Extel Survey (2013) Education SPb State University of Economics and Finance BORIS SVETLICHNY Independent Non-Executive Director DMITRY KASHINSKY Vice President DMITRY ZARENKOV Chairman of the Board of Directors Experience and awards : 20 years of experience in construction industry Honoured builder of Russia (¹); Certificate of Honour of the Ministry of Regional Development Education " Institute of Aeronautical Instrumentation, SPb University of Architecture & Civil Engineering, SPb University of Internal Affairs PhD in Engineering MICHAEL JOHN CALVEY Senior partner at Baring Vostok since 1999 ALEXEI KALININ Senior partner at Baring Vostok Experience and awards " Over 15 years of experience in the construction industry Worked at Barkli and AFI Development (Russia), where he served as CEO Education Moscow Aviation Institute Experience and awards " Member of the board of Europlan, Volga Gas, Gallery Media Group Worked at EBRD, Salomon Brothers, Sovlink Corporation Ex-Member of the board of CTC Media, Golden Telecom, Burren Energy Education " University of Oklahoma and London School of Economics Experience and awards With Baring Vostok since 1999 Worked at Alfabank and Alfa Capital Chairman of the Board of Directors at Volga Gas, member of the board at Samarenergo and two Russian glass companies Education Moscow Power Engineering University PhD in Engineering MARTIN COCKER Independent Non-Executive Director Experience and awards Over 27 years of experience in finance and senior management with international and Russian companies Recent experience included CFO position at Orange in Russia, VP for Finance at Vimpelcom and CFO at Golden Telecom. From March 2014 to August 2016 served as CFO of Etalon Group Education University of Massachusetts (BBA in Accounting) Carnegie Mellon University (MBA) Experience and awards Over 20 years of experience in audit, 7 years - in construction industry Runs his own development business in Portugal Worked at Deloitte & Touche, KPMG and Ernst & Young in Russia, Kazakhstan and UK Education University of Keele (1) Title granted by President of Russia Etalon Group OPERATING RESULTS LANDBANK VALUATION CHARALAMPOS AVGOUSTI Independent Non-Executive Director MARIOS THEODOSIOU Independent Non-Executive Director Experience and awards " " 10 years of legal experience in the real estate, corporate and banking sectors Founder and Managing Director of Ch. Avgousti & Partners LLC (Advocates & legal consultants) Board member at Cyprus Telecommunication Authority (CYTA), member of the Advisory council of Limassol for the Central Cooperative Bank Education " " Northumbria University Newcastle (LLM in International Commercial Law) Democritus University of Thrace Experience and awards " Experienced professional in marketing and strategy, affiliated with American Marketing Association (AMA) and Academy of International Business Member of the Working Group on Economic Matters for Cyprus talks In 2015 won Excellence in Global Marketing Research Award from AMA Education University of Cyprus University of Wales, Cardiff (PhD, International Marketing and Strategy) FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 36#38STRONG CORPORATE GOVERNANCE AND SHAREHOLDER STRUCTURE CORPORATE GOVERNANCE STRUCTURE General Shareholders Meeting Board of Directors ■ Chairman (D. Zarenkov) ■ 3 Executive Directors ■ 6 Non-Executive Directors, including 4 Independent Directors Board Committees Strategy Committee Remuneration & Nomination Committee Audit Committee Management Team Information Disclosure Source: Company data Committee SHAREHOLDER STRUCTURE 1.0% 30.8% 44.1% 16.4% 7.7% Zarenkov family Management Baring Vostok Free float Etalon Development Ltd As of 31 December 2015 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 37#39RESIDENTIAL DEVELOPMENT SCHEME Timing 3-5 YEARS Permission risk vs. Project value High permission risk Low entry price Stages of residential real estate development Zoning & initial permit documentation Revenue recognition Source: Company data TOTAL DEVELOPMENT PERIOD RANGE: 39-59 MONTHS 12-18 MONTHS Medium-low permission risk Medium entry price Investment contract, planning & construction permit 18-30 MONTHS Construction Pre-sale 1-2 MONTHS 3 MONTHS State commission Ownership rights registration Sales after commission ing For share participation agreements when the construction is completed and the building has been approved by the State commission for acceptance of finished buildings. For share accumulation agreements when the building has been approved by the State commission for acceptance of finished buildings and act of acceptance is signed by share accumulation cooperative. For 100% payment when sale-purchase agreement is signed. For less than 100% payment when preliminary agreement and act of acceptance is signed by client. Etalon Group focus OPERATING Etalon Group RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 38#40TYPICAL PROJECT COST STRUCTURE MATERIALS COST STRUCTURE(1) (RUB 12,000 18,000 PER SQM OF NSA) Bricks Sand 2% Crushed granite 3% 8% Cement 15% Metal products 23% CONSTRUCTION COST STRUCTURE (1) (RUB 29,000 - 39,000 PER SQM OF NSA) Machinery VAT accrued 5% Materials 16% ΤΟ 49% Other 43% 19% TOTAL COST STRUCTURE(1) (RUB 59,000 72,000 PER SQM OF NSA) Other Project management 1% 2% 17% Wages Construction 56% Design Interest expense 5% 6% Sales costs 8% 8% Infrastructure 14% Land acquisition TYPICAL PROJECT LIFECYCLE (1) Overhead expenses (2) Task Share,% Start, month Duration, months Predevelopment 3 Zero cycle works 7 02 8 10 Construction works 43 Facade works 11 Fit out works MEP systems 14 Engineering facilities 15 15 Urban landscaping 2 5667 315 52 20 16 10 18 10 21 24 23 6 0 5 Construction timeline, months (1) Source: Company estimates for typical project based on current portfolio average. Actual breakdown per project is subject to significant variation due to a number of factors. (2) including payroll tax Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS 10 15 20 25 SELECTED PROJECTS 30 30 APPENDIX 39#41EXTENSIVE TRACK RECORD OF SUCCESSFUL INDUSTRIAL CONSTRUCTION PROJECTS THAT MEET THE HIGHEST STANDARDS OF QUALITY FORD MOTOR COMPANY NISSAN PLANT NISSAN EXPOFORUM (1) Expected date of completion Etalon Group • ☐ ☐ 2007-2012 Expansion of existing production facilities, including a 25 ths sqm logistics area for finished goods, renovation of warehouse and overhaul of utility systems This project was unique as work was carried out in the production area, next to the main production line, while it was in operation 2012-2014 Etalon Group is a long-time partner of Nissan in Russia, having acted as the general contractor for design and construction of the test track and new car storage areas in 2008 In 2014 Etalon Group delivered 66 ths sqm of new factory space, including expansion of existing assembly lines, warehouse and office facilities 2011-2015 The largest commercial construction project in St. Petersburg in recent years Overall size of the complex is over 200 ths sqm 2 main exhibition halls, 3 exhibition pavilions, 2 hotels, 3 helicopter pads, parking and utilities infrastructure Capacity for up to 10 ths delegates OPERATING RESULTS UNIPRES UNIPRES ZVEZDA-REDUKTOR 2014-2016 General contractor agreement for the construction of a 12,313 sqm manufacturing facility and a 3,588 sqm administrative building Turnkey project involving the full construction cycle 2015-2016 ■ Overhaul of production lines and the renovation of administrative and service buildings for Zvezda-Reduktor, a subsidiary of Zvezda, Russia's largest manufacturer of compact, high-RPM Diesel engines • STATE HERMITAGE MUSEUM ◉ Contract covers a total area of 9,854 sqm 2015-2017(1) Construction of part of the Restoration and Storage Centre of the State Hermitage Museum in St Petersburg Contract is worth RUB 1.6 billion Due to be completed in 2Q 2017 LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 40#42INCOME STATEMENT mln RUB Revenue 1H14 1H15 1H16 2014 2015 2016 14,539 18,148 19,742 51,481 42,404 49,022 Cost of sales (10,759) (12,584) (15,685) (35,685) (29,405) (36,813) Gross profit 3,780 5,564 4,057 15,796 12,999 12,209 General and administrative expenses (1,957) (2,021) (1,958) (4,178) (4,348) (4,454) Selling expenses (577) (619) (918) (1,474) (1,411) (1,984) Other expenses, net (166) (341) (495) (913) (991) (753) Results from operating activities 1,080 2,583 686 9,231 6,249 5,018 Finance income 391 998 891 1,717 1,686 1,857 Finance costs Net finance income Profit before income tax Income tax expense Profit for the period Profit attributable to: Owners of the Company Non-controlling interest Profit for the period (242) (593) (152) (553) (504) (319) 149 405 739 1,164 1,182 1,538 1,229 2,988 1,425 10,395 7,431 6,556 (302) (795) (117) (2,026) (2,002) (1,654) 927 2,193 1,308 8,369 5,429 4,902 927 2,188 1,307 8,345 5,399 4,902 5 1 24 30 927 2,193 1,308 8,369 5,429 4,902 Source: IFRS financial statements for 1H14, 1H15, 1H16, 2014, 2015, 2016 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 41#43BALANCE SHEET mln RUB 1H14 1H15 1H16 2014 2015 2016 mln RUB 1H14 1H15 1H16 2014 2015 2016 Assets Equity and Liabilities Non-current assets Equity PP&E 2,326 2,349 2,433 2,503 2,479 2,889 Share capital Investment property 1,052 618 482 808 538 561 Retained earnings 14,983 14,983 14,999 14,983 14,999 30,259 37,011 40,068 15,070 36,537 39,697 43,052 Other long-term investments 684 684 556 1,036 578 545 Total equity attributable to equity holders of the Company 45,242 51,994 55,067 51,520 54,696 58,122 Trade and other receivables 756 2,164 3,801 2,521 3,303 5,063 Non-controlling interest 387 170 83 351 147 28 Deferred tax assets 710 1,040 1,412 885 1,159 1,414 Total equity 45,629 52,164 55,150 51,871 54,843 58,150 Other non-current assets 10 10 2 10 5 Non-current liabilities Total non-current assets 5,538 6,865 8,686 7,763 8,062 10,472 Loans and borrowings 10,050 Current assets Trade and other payables 13,375 12,950 12,411 678 4,024 610 2,854 13,138 12,415 923 859 Inventories 57,132 Trade and other receivables Short-term investments Cash and cash equivalents 61,131 69,237 17,746 15,926 20,340 5,493 2,122 830 9,635 10,042 15,770 57,525 67,722 15,074 18,227 1,221 733 14,631 71,261 21,409 Provision 91 112 109 114 117 107 Deferred tax liabilities 650 793 Total non-current liabilities 11,469 1,249 1,096 1,456 1,810 18,760 14,765 16,835 15,988 1,557 14,938 11,532 10,206 Current liabilities Other current assets 18 66 7 66 7 Loans and borrowings Total current assets Total assets 95,562 96,152 90,024 89,287 106,184 114,870 88,517 98,221 96,280 103,669 106,283 114,141 Trade and other payables Provisions Total current liabilities Total equity and liabilities 4,689 5,141 8,720 3,880 6,276 32,436 18,451 34,375 21,460 25,630 1,339 1,636 1,860 2,234 3,546 38,464 25,228 44,955 27,574 35,452 95,562 96,152 114,870 96,280 106,283 5,639 33,666 1,748 41,053 114,141 Source: IFRS financial statements for 1H14, 1H15, 1H16, 2014, 2015, 2016 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 42#44CASHFLOW STATEMENT mln RUB Operating Activities Profit for the period Adjustments for: Depreciation Loss (gain) on disposal of PP&E Gain on disposal of investment property Impairment gain / (loss) on investment property Impairment loss on inventories 1H14 1H15 1H16 2014 2015 2016 927 2,193 1,308 8,369 5,429 4,902 204 213 240 417 406 434 (46) 20 (7) (52) (65) (52) (267) 60 166 27 280 215 (41) 85 30 290 466 514 430 Finance income, net (149) (405) (739) (1,164) (1,182) (1,538) Income tax expense 302 795 117 2,026 2,002 1,654 Cash from operating activities before changes in working capital 1,383 3,012 1,236 10,342 7,319 5,522 Change in inventories (6,763) (2,418) (502) (6,890) (8,255) (1,780) Change in accounts receivable (2,093) (366) (2,381) (1,427) (3,899) (3,746) Change in accounts payable 10,135 (1,461) 8,519 1,184 2,369 7,814 Change in provisions Change in other current assets Income tax paid Interest paid Net cash from/(used in) operating activities (324) (600) (1,694) 594 1,315 (1,808) (11) (59) (742) (1,605) (1,070) (1,645) (2,146) (1,960) (683) (1,180) (1,278) (1,588) (2,516) (2,603) 902 (4,618) 2,830 511 (5,813) 1,437 Investing Activities Proceeds from disposal of non-current assets 52 29 45 66 188 93 Interest received 342 802 580 823 1,311 1,153 Acquisition of PP&E (364) (95) (218) (653) (369) (711) Loans given (16) (4) (41) (178) (123) (435) Loans repaid 79 21 18 174 66 25 Disposal of subsidiaries, net of cash disposed of (3) (1) 7 (Acquisition)/disposal of other investments (964) (598) (113) 3,038 1,155 242 Net cash used in investing activities (871) 152 270 3,277 2,228 367 Financing activities Acquisition of non-controlling interest Proceeds from borrowings Repayments of borrowings Acquisition of own shares Dividends paid Net cash from/ (used in) financing activities Net increase/(decrease) in cash and cash equivalents Effect of FX rate fluctuations Cash & cash equivalents at the end of the period Source: IFRS financial statements for 1H14, 1H15, 1H16, 2014, 2015, 2016 (66) (38) (83) (20) (94) 5,627 4,707 5,882 10,763 9,480 9,016 (4,278) (2,323) (3,635) (8,498) (6,281) (10,404) 16 16 16 (1,834) (961) (1,124) (2,452) (1,504) 1,365 484 1,248 1,074 743 (2,986) 1,396 (3,982) 4,348 4,862 (2,842) (1,182) 100 (607) (110) 1,630 (257) 9,635 10,042 15,770 14,631 11,532 (144) 10,206 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 43#45EBITDA CALCULATION mln RUB 1H14 1H15 1H16 2014 2015 2016 Comprehensive income 927 2,193 1,308 8,369 5,429 4,902 Income tax expense 302 795 117 2,026 2,002 1,654 Interest expense on loans and finance leases 140 15 6 295 19 12 Net foreign exchange loss 70 438 51 138 78 Interest income on bank deposits (307) (686) (437) (729) (1,089) (839) Interest income on loans and receivables (35) (116) (143) (94) (222) (314) Net foreign exchange gain (814) Bank fees and commissions 42 49 65 117 95 133 Interest in COS Depreciation 340 272 508 1,024 897 1,241 204 213 240 417 406 434 EBITDA 1,683 3,173 1,715 10,611 7,675 7,301 1H14 1H15 1H16 2014 2015 2016 + Depreciation to COGS (Note 13 PP&E) 160 167 183 271 284 321 Depreciation to selling expenses (Note 13 PP&E) 1 3 2 4 6 4 Depreciation to G&A expenses (Note 13 PP&E) 19 19 29 94 63 62 52 Depreciation to Investment property 24 24 24 48 48 42 (Note 14 Investment property) Depreciation to other non-current assets 2 5 5 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 44#46WORKING CAPITAL CALCULATION mln RUB 1H14 1H15 1H16 2014 2015 2016 Total inventory 57,132 61,131 69,237 57,525 67,722 71,261 Current part + Trade and other receivables 17,746 15,926 20,340 15,074 18,227 21,409 Trade and other payables 32,436 18,451 34,375 21,460 25,630 33,666 - Provisions 1,339 1,636 1,860 2,234 3,546 1,748 Non-current part + Trade and other receivables 756 2,164 3,801 2,521 3,303 5,063 - Trade and other payables 678 4,024 610 2,854 923 859 - Provisions 91 112 109 114 117 107 Adjustments - Cumulative borrowing costs capitalized during the period (Note 11 Finance income and finance costs) 4,660 6,636 9,278 5,416 7,977 10,602 + Cumulative borrowing costs that have been included into the cost of sales (Note 11 Finance income and finance costs) 1,629 2,585 3,718 2,313 3,210 4,451 -Income tax receivable (Note 18 Trade and other receivables) 85 467 302 159 358 412 +Income tax payable (Note 25 Trade and other payables) 116 10 100 380 125 399 Working capital 38,090 50,490 50,662 45,576 54,036 55,189 Etalon Group OPERATING RESULTS LANDBANK VALUATION FINANCIAL RESULTS SELECTED PROJECTS APPENDIX 45#47FCF CALCULATION mln RUB Comprehensive income 2014 2015 2016 1H15 2H15 1H16 2H16 8,369 5,429 4,902 2,193 3,236 1,308 3,594 Adjustment for: Depreciation 417 406 434 213 193 240 194 Loss/(gain) on disposal of PP&E (52) (65) (52) 20 (85) (7) (45) Impairment loss on investment property 280 215 (41) 166 49 27 (68) Impairment loss on inventory 466 514 430 30 484 290 140 Loss on disposal of subsidiaries Finance income, net Income tax expense Income tax paid Interest paid (1,164) (1,182) (1,538) (405) (777) (739) (799) (Increase)/Decrease in working capital (Increase)/Decrease in invested capital FCF 2,026 2,002 (1,645) (2,146) (1,588) (2,516) (6,598) (8,470) 795 (587) (181) (66) 1,654 (1,960) (1,605) (2,603) (1,180) (1,336) 480 (4,845) (3,625) (618) 1,207 117 1,537 (541) (1,070) (890) (1,278) (1,325) 3,942 (3,462) (115) (173) (445) (76) (5,994) 1,088 (4,684) (1,310) 2,657 (1,569) (Increase)/Decrease in working capital based on CF 2014 2015 2016 1H15 2H15 1H16 2H16 statement + Change in inventories Change in accounts receivable Change in accounts payable (6,890) (8,255) (1,780) (1,427) (3,958) (3,746) 1,184 2,369 7,814 (2,418) (366) (1,461) (5,837) (502) (1,278) (3,592) (2,381) (1,365) 3,830 8,519 (705) Change in provisions 594 1,315 (1,808) (600) 1,915 (1,694) (114) Change in other current assets (59) 59 59 Working capital change (6,598) (8,470) 480 (4,845) (3,625) 3,942 (3,462) + (Increase)/Decrease in invested capital based on CF 2014 2015 2016 1H15 2H15 1H16 2H16 statement Acquisition of PP&E (653) (369) (711) (95) (274) (218) (493) Proceeds from disposal of non-current assets 66 188 93 29 159 45 48 Invested capital change (587) (181) (618) (66) (115) (173) (445) OPERATING LANDBANK FINANCIAL SELECTED Etalon Group RESULTS VALUATION RESULTS PROJECTS APPENDIX 46#48Etalon Group Public Company Limited 2-4 Capital Centre Arch. Makariou III Avenue Nicosia Cyprus Tel: +44 (0)20 8123 1328 Fax: +44 (0)20 8123 1328 Email: [email protected] Etalon Group 47