#1VTB Capital Investment Forum "Russia Calling" 13-14 October 2016 Etalon Group#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. This Presentation has been prepared by the Company for informational purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities of Company in any jurisdiction or an inducement to enter into investment activity. This Presentation is strictly confidential and may not be copied, distributed, published or reproduced in whole or in part, or disclosed or distributed by recipients to any other person in any form. Failure to comply with this restriction may constitute a violation of applicable laws. This Presentation (i) is not intended to form the basis for any investment decision and (ii) does not purport to contain all the information that may be necessary or desirable to evaluate the Company fully and accurately, and (iii) is not to be considered as recommendation by the Company or any of its affiliates that any person (including a recipient of this Presentation) participate in any transaction involving the Company or its securities. The information contained in this Presentation has not been independently verified and the Company does not undertake any obligation to do so. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein or any other material discussed in connection with the Presentation. Neither the Company nor any of its directors, officers, employees, shareholders, affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection with the Presentation. Any "forward-looking statements', which include all statements other than statements of historical facts, including, without limitation, forecasts, projections and any statements preceded by, followed by or that include the words 'targets', 'believes', 'expects', 'aims', 'intends', 'will', 'may', 'anticipates', 'would', 'could' or similar expressions or the negative thereof, involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. 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. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control. Neither the Company, nor any of its agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this Presentation. Construction programme area figures set out in this presentation, including the "Total area of construction programme" figures, may not reflect the final construction programme area figures. Whether such figures do or do not reflect the final construction programme area figures, they may not reflect the revenues ultimately recognized by Etalon. Calculating construction programme area figures is an inherently subjective process, and is subject to uncertainty. 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. No securities of the Company have been registered or are intended to be registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States, and unless so registered may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Any failure to comply with these restrictions is a violation of U.S. federal or applicable state securities laws. In any EEA Member State that has implemented the Prospectus Directive, this Presentation is only addressed to and is only directed at qualified investors in any relevant Member State within the meaning of the Prospectus Directive. The expression "Prospectus Directive" means Directive 2003/71/EC (and amendments thereto, including Directive 2010/73/EU, to the extent implemented in any relevant Member State) and includes any relevant implementing measure in any relevant Member State. This Presentation is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals within the meaning set out in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as "Relevant Persons"). Securities in the Company are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person in the United Kingdom who is not a Relevant Person should not act or rely on this Presentation or any of its contents. Neither this Presentation nor any copy of it may be taken or transmitted into Australia, Canada, South Africa, the Hong Kong Special Administrative Region of the People's Republic of China or Japan or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of applicable securities law. The distribution of this presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. The Company has not registered and does not intend to register any of its securities under the applicable securities laws of Australia, Canada, South Africa, the Hong Kong Special Administrative Region of the People's Republic of China or Japan, and, subject to certain exceptions, its securities may not be offered or sold within Australia, Canada, South Africa, the Hong Kong Special Administrative Region of the People's Republic of China or Japan or to any national, resident or citizen of Australia, Canada, South Africa, the Hong Kong Special Administrative Region of the People's Republic of China or Japan. Information contained in this Presentation is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in Russia or to or for the benefit of any Russian person, and does not constitute an advertisement of any securities in Russia. This information must not be passed on to third parties or otherwise be made publicly available in Russia. The Company's securities have not been and will not be registered in the Russian Federation or admitted to public placement and/or public circulation in the Russian Federation except as permitted by Russian law. This Presentation does not constitute or form a part of, and should not be construed as, (i) an advertisement of any securities of the Company, or an offer, or an invitation (including an invitation to make an offer) by or on behalf of the Company in the Russian Federation or in any other jurisdiction or (ii) any promise or representation that any such offer or invitation will be made and shall not form the basis of, nor may it accompany, nor form part of, any contract to acquire any securities of the Company in the Russian Federation or in any other jurisdiction. This Presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require registration of licensing within such jurisdiction. By receiving and reading this Presentation, you agree to be bound by the restrictions in this disclaimer, and acknowledge that that you will be solely responsible for your own assessment of the market, the market position of the Company and any securities of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business. Etalon Group 1#3Summary 33.7 bln RUB new sales + 75% y-o-y New contract sales in 9M 2016 amounted to RUB 33.7 bln and 342 ths sqm, up 75% and 63% year-on-year, respectively ✓ 9M 2016 new contract sales equate to 96% of FY 2015 new sales 110 ths RUB/sqm average price of apartments +8% y-o-y ✓ Average price of apartments was RUB 110 ths per sqm in 3Q 2016, up 8% compared to RUB 102 ths per sqm in 3Q 2015 29 bln RUB cash collections +76% y-o-y ✓Cash collections reached RUB 29 bln in 9M 2016, beating the 9M 2015 result by 76% 4.1 bln RUB operating cash flow On the back of solid cash collections, operating cash flow less interest paid reached RUB 4.1 bln compared to RUB -3.4 bln in 1H 2015 → Etalon Group 2#4Contents 1 Operating Results 2 Landbank Valuation 3 Financial Results 4 Selected Projects 5 Appendix Etalon Group 3#51 Operating Results СУПЕРАКЕТ ✓ Etalon Group Tsar's Capital 1st stage, 2013#6Record level of new contract sales in 9M 2016: up 75% year-on-year Number of contracts 4,384 +50% New contract sales, sqm New contract sales, mln RUB 6,589 210,485 +63% 342,263 19,306 +75% 33,718 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 Cash collections, mln RUB New contract sales y-o-y, mln RUB +76% 28,601 13,309 15,774 10,575 9,406 +75% 9,480 16,213 8,152 10,284 8,095 11,392 96% of 2015 new contract sales 6,746 5,923 9,078 4,110 12,860 3,804 9M 2015 9M 2016 2013 2014 2015 2016 ■1Q 2Q 3Q 4Q Source: Company data → Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 5 LO#7Stable and robust performance in every quarter of 2016 New contract sales, sqm +6% New contract sales, mln RUB +3% 174,767 15,774 135,003 121,522 12,860 100,599 106,661 11,392 10,284 10,575 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 Cash collections, mln RUB Average price, RUB/sqm 125,000 -6% 111,966 110,413 10,571 110,000 106,228 105,297 105,040 102,417 100,502 9,632 9,286 95,923 97,522 8,744 93,122 93,223 95,000 90,860 88,811 5,798 80,000 87,887 85,671 89,402 90,511 102,223 97,918 99,144 93,746 95,254 90,258 85,271 83,234 80,946 65,000 50,000 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 3Q13 4Q13 1Q14 2014 3Q14 4Q14 1Q15 2015 3Q15 4Q15 1Q16 2Q16 3Q16 ⚫apartments total Source: Company data → Etalon Group Operating Results Landbank Valuation Financial Selected Results Projects Appendix 6#8Diversified product mix drives new contract sales in 3Q 2016 3Q 2015 New contract sales by project, sqm Other projects Landyshi 11% 16% 3Q 2016 New contract sales by project, sqm Landyshi Summer Golden Star Garden House on Obruchevykh Other projects 3% 3% 2% 4% 7% Swallow's Nest 21% Emerald Hills 8% Emerald Hills 22% Samotsvety 9% Swallow's Nest 14% 1% Moscow Gates 10% 8% 16% Tsar's Capital 19% Samotsvety 13% Etalon City 13% Moscow Gates Tsar's Capital Etalon City . Significant portfolio diversification with growing share of prime location projects Share of prime location projects reached 57% in 3Q 2016, compared to 39% in 3Q 2015 Share of Moscow Gates increased to 19% following launch of sales at new residential buildings Project House on Obruchevykh street, launched in late August, already accounts for 2% of new sales Galactica project launch, scheduled for 4Q 2016, will further diversify the product mix House on Obruchevykh Street Case Study Acquired in July and launched in late August, the project accounts for 2% of new sales in 3Q 2016. The project is located in the Kalininskiy district of St. Petersburg, within walking distance of the Polytekhnicheskaya and Akademicheskaya metro stations in a well- developed district with stores, fitness centres, parks, schools and kindergartens all in close proximity. Source: Company data Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 7#9Mortgage market rebounded after launch of State support programme Share of mortgage sales, % 15% 22% 3Q 2015 3Q 2016 Number of mortgage contracts 376 3Q 2015 +19% 449 3Q 2016 Average mortgage rate dynamics in Russia (1) Highlights . • • • • Basic terms of the subsidised mortgage programme: minimum down payment: 20% loan amount: up to RUB 8 million maturity: up to 30 years maximum interest rate: 12% Etalon Group works with major domestic banks that offer subsidised mortgage programmes, including Sberbank, VTB24, Rosbank, Bank St. Petersburg and Absolut Bank Apartments at Etalon Group development projects in the Moscow and St. Petersburg Metropolitan Areas are eligible for the Russian government's subsidised mortgage programme 15.0% 14.5% 14.04% 13.93% 14.5% 13.68% 13.33% 14.0% 13.5% 12.22% 13.0% 12.5% 12.0% 11.5% 11.0% Source: Company data (1) CBR data »Etalon Group Operating Results Landbank Valuation Financial Results Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 12% subsidised mortgage interest rate Sep-15 Oct-15 Selected Projects Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Appendix 8#10Positive working capital developments Inventory of completed and available for sale apartments, ths sqm 321 123 -28% 34 232 . . 9M 2016 Highlights 36% of inventory on books as of 31 December 2015 sold down during 9M 2016 Completed and available for sale apartments accounted for 49% of all apartments contracted in 9M 2016 31.12.2015 inventory contracted new inventory 30.09.2016 • in 9M 2016 Average down payment Average down payment 69% 66% 66% 59% 58% 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 Source: Company data amounted to 69% in 3Q 2016, up from 59% in 3Q 2015 → Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 9#11✓ Etalon Group 2 Landbank Valuation 121 Near Rostral Columns, 2006#12Etalon Group's portfolio value remains stable, with 2.72 mln sqm of net sellable area Open market value, RUB mln Breakdown by region 104,286 104,384 89,253 71,934 55,185 43,171 43% ■ SPMA ■MMA 57% 2010 2011 2012 2013 2014 2015 • Market value of Etalon Group's portfolio as of 31 December 2015 remained stable at RUB 104.4 million • • • As Etalon Group's new sales in 2015 outperformed both the Company's own and market expectations, unsold NSA declined to 2.72 million sqm The Company launched sales for two projects in 2015: Golden Star in Moscow (24% of launched premises sold after three months), and Landyshi in St. Petersburg (56% of launched premises sold after three months) The portfolio includes 581 thousand sqm of completed & available for sale property at projects that are completed or still underway, out of which completed & available for sale apartments account for 321 thousand sqm. JLL estimates potential income from the sale of these properties at RUB 44,731 million and RUB 35,142 million, respectively Source: JLL estimate as of 31.12.2015 → Etalon Group Operating Results Landbank Financial Valuation Results Selected Projects Appendix 11#13Projects in SPMA and MMA Projects in St. Petersburg Metropolitan Area Projects in Moscow Metropolitan Area 10 8 1 4 3 6 Under construction Design stage Acquired in 2016 Completed 5 Etalon Group Operating Results Landbank Financial Valuation Results Selected Projects Appendix 12#14Etalon Group portfolio: high quality projects diversified across the two most lucrative macro regions in Russia Current Projects Project Status Total NSA ('000 sqm) Unsold NSA (Etalon's share) ('000 sqm) (1) Unsold parking (lots), OMV (RUB mln) Income from sales # (RUB mln) (2) Construction budget (RUB mln) (3) Outstanding budget (RUB mln) (3) St. Petersburg Metropolitan Area (SPMA) 1. Galactica Construction 798.4 646.4 2,976 10,787 72,311 43,374 40,235 2. Tsar's Capital Construction 390.9 170.8 1,946 10,350 30,225 14,823 2,845 3. Swallow's Nest Construction 335.1 96.4 1,416 6,700 23,431 13,630 710 4. Moscow Gates Construction 234.1 180.0 879 10,176 24,049 10,264 4,637 5. Samotsvety Construction 204.9 131.9 919 6,465 18,455 10,661 4,377 6. Molodejny Construction 112.1 17.5 382 929 8,703 3,971 271 7. Landyshi (Polyustrovskiy prospect) Construction 90.6 58.6 492 2,081 7,299 4,132 3,613 8. Technopark Design stage 61.3 61.3 363 1,103 6,002 3,571 3,089 9. Beloostrovskaya Design stage 39.5 39.5 277 498 3,949 2,482 2,473 10. Koroleva Design stage 6.0 6.0 35 167 610 362 331 Total SPMA 2,272.9 1,408.5 9,685 49,256 195,034 107,271 62,579 Moscow Metropolitan Area (MMA) 1. Emerald Hills 2. Etalon-City Construction 859.0 411.6 2,826 17,866 63,905 38,698 13,699 Construction 376.2 216.9 1,904 8,650 29,066 19,611 12,761 3. Summer Garden (Dmitrovskoe shosse) Construction 283.4 230.0 1,057 7,640 32,236 16,204 15,537 4. Silver Fountain (Alekseevskiy District) Design stage 182.9 169.6 2,160 7,810 24,977 8,780 8,637 5. Golden Star (Budennogo) 6. Losinoostrovskiy District Total MMA Total Current Projects Completed Projects Residential property in completed projects Completed stand-alone commercial properties Total Completed Projects All Projects Total Etalon Group Projects Construction 84.9 63.7 325 4,540 11,009 5,040 4,228 Design stage 91.5 83.9 851 2,943 10,602 4,424 4,369 1,878.0 1,175.7 9,123 49,449 171,794 92,756 59,231 4,150.8 2,584.2 18,808 98,705 366,828 200,027 121,810 1,259.0 115.9 2,369 5,156 18.9 18.9 58 524 1,278.0 134.8 2,427 5,680 84,334 737 85,070 5,428.8 2,719.1 21,235 104,384 451,898 200,027 121,810 Source: all numbers based on JLL report as of 31.12.2015 (1) Including parking with average area c. 30 sqm (2) Income from sales includes potential and received incomes as of 31.12.2015 (3) Excluding land acquisition costs Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 13#15New launches in 2016 will provide a further impulse for new sales New project launched in Moscow Metropolitan Area Summer Garden Total NSA 283 ths sqm The project is situated in a pleasant area close to Dmitrovsky Park and the Veteran Theme Park. The project can be easily accessed from Yahromsky passage and Dmitrovskoye highway. Seligerskaya metro station, for which construction recently started, is just 1.5 km from the complex, and there are plans to build another metro station adjacent to the site. New project to be launched in St. Petersburg Metropolitan Area Galactica Total NSA 798 ths sqm The project is located on a 38-hectare land plot by Moskovsky prospect and Naberezhnaya Obvodnogo kanala, just south of central St. Petersburg, which makes it a prestigious location for both living and business. Project Galactica will create an entire new comfort-class residential district. The nearest metro stations, Frunzenskaya and Moskovskiye Vorota, are situated 10-15 minutes from the development. Source: Company data, NSA of the projects Galactica and Summer Garden based on JLL report as of 31.12.2015 Etalon Group Operating Results Landbank Financial Valuation Results Selected Projects Appendix 14#16Three attractive projects acquired in 9M 2016 New projects acquired in St. Petersburg 1 2 1. Project on Kosmonavtov prospekt Total NSA 26 ths sqm This project is located in the Moskovskiy district of St. Petersburg. The new comfort-class residential project will comprise a 25-storey building with 312 apartments, underground parking, and a pre-school with a capacity of up to 50 children. The site 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 is expected to start in 2016. 2. Project on Obruchevykh street Total NSA 42 ths sqm 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 for 80 children. The plot is located within walking distance of the Polytekhnicheskaya and Akademicheskaya metro stations in a well-developed district with stores, entertainment and fitness centres, as well as schools and kindergartens, all in close proximity. The Sosnovka and St. Petersburg Polytechnic University parks are both within walking distance of the future development. Construction has already started. New project acquired in Moscow Metropolitan Area Gribki Source: Company data Total NSA 60 ths sqm 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. Construction is expected to start in 2017. Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 15#173 Financial Results BFAAAAAAAAAAAA ✓ Etalon Group Prestige, 2014 ΠΕΡ#18Etalon Group 1H 2016 revenue up 9% y-o-y to RUB 19.7 bln Residential real estate development revenue, mln RUB -15% 13,857 11,828 1H 2015 1H 2016 Other revenue, mln RUB 2,419 +28% 3,102 1H 2015 1H 2016 Source: IFRS financial statements Construction services revenue from third parties/external, mln RUB 1,872 +157% 4,812 1H 2015 1H 2016 Total revenue, mln RUB 18,148 +9% 19,742 1H 2015 1H 2016 → Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 17#19Profitability impacted by temporary changes in revenue mix Residential real estate development adjusted gross profit*, mln RUB -25% 5,586 4,200 40% 36% 1H 2015 1H 2016 Residential real estate development adjusted gross profit*, mln RUB Adjusted gross profit margin*, % Consolidated adjusted gross profit*, mln RUB -22% 5,836 4,565 32% 23% 1H 2015 1H 2016 Consolidated adjusted gross profit*, mln RUB Adjusted gross profit margin*, % Etalon Group Construction services gross profit, mln RUB +162% 401 5% 153 2% Highlights 1H 2015 1H 2016 Construction services gross profit, mln RUB Gross profit margin, % • Changes to revenue mix affected gross profit margin in 1H 2016 Segment revenue breakdown is expected to • return to historical levels in the second half of 2016, which should have a positive effect on consolidated margins Source: IFRS financial statements *Adjusted for interest in cost of sales Operating Results Landbank Valuation Financial Results Selected Projects Appendix 18#20Strong operating cash flow generated in 1H 2016 General and administrative expenses, mln RUB 2,021 -3% General and administrative expenses as % of revenue Operating cash flow (1), mln RUB 1,958 1,585 514 11% 10% 141 4,108 1H 2015 1H 2016 1H 2015 1H 2016 1H 2014 2H 2014 -3,438 1H 2015 2H 2015 1H 2016 EBITDA, mln RUB 3,173 1,715 Net income, mln RUB 2,193 1,308 • • Highlights Operating cash flow amounted to RUB 4,108 mln in 1H 2016, free cash flow (2) reached RUB 2,657 mln Board of Directors will consider 1H 2016 dividends on its meeting in mid-November Source: IFRS financial statements Operating cash flow less interest paid For detailed free cash flow calculation refer to slide 47 (1) (2) 1H 2015 1H 2016 1H 2015 1H 2016 Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 19#21Net debt and average cost of borrowing decreased in 1H 2016 Strong liquidity position maintained 19,414 12,017 31.12.2015 Debt, mln RUB 21,670 16,372 30.06.2016 ■Cash and cash equivalents, mln RUB Net debt, mln RUB -28% 7,397 31.12.2015 5,298 30.06.2016 Working capital(2), mln RUB -6% 54,036 50,662 31.12.2015 30.06.2016 Highlights 100% of debt denominated in RUB 0.7x Net debt/ EBITDA 2015 In June 2016, Etalon Group subsidiary LenSpetsSMU placed bonds in the amount of RUB 5 billion with a five-year maturity and a coupon rate of 11.85%. Demand exceeded the offering amount by 3.3 times Average cost of borrowings was 13.3% in 1H 2016, down from 14.2% in 1H 2015 (1) Including bank deposits in ST Investments (2) For detailed working capital calculation refer to slide 46 »Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 20 20#224 Selected Projects ✓ Etalon Group ExpoForum, 2015 11#23Tsar's Capital September 2016 December 2015 St. Petersburg Total NSA 391 ths sqm Open Market Value* RUB 10,350 mln Income from sales* RUB 30,225 mln Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix *JLL estimate as of 31.12.2015 22 22#24Moscow Gates September 2016 00 St. Petersburg Total NSA 234 ths sqm Open Market Value* RUB 10,176 mln *JLL estimate as of 31.12.2015 December 2015 Income from sales* RUB 24,049 mln Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 23#25Samotsvety September 2016 December 2015 St. Petersburg Total NSA 205 ths sqm Open Market Value* RUB 6,465 mln *JLL estimate as of 31.12.2015 Income from sales* RUB 18,455 mln Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 24#26Swallow's Nest September 2016 St. Petersburg Total NSA 335 ths sqm *JLL estimate as of 31.12.2015 December 2015 Open Market Value* RUB 6,700 mln Income from sales* RUB 23,431 mln Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 25#27Emerald Hills September 2016 Moscow region Total NSA 859 ths sqm Open Market Value* RUB 17,866 mln *JLL estimate as of 31.12.2015 December 2015 Income from sales* RUB 63,905 mln Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 26#28Etalon City September 2016 December 2015 STANOH-WHBECT HBAPTИPb (43)378 88 R Moscow *JLL estimate as of 31.12.2015 ЭТАЛОН-СИТИ 378 88 88 Total NSA 376 ths sqm Open Market Value* RUB 8,650 mln Income from sales* RUB 29,066 mln Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 27#29Landyshi September 2016 December 2015 St. Petersburg Total NSA 91 ths sqm *JLL estimate as of 31.12.2015 Open Market Value* RUB 2,081 mln Income from sales* RUB 7,299 mln Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 28#30Golden Star September 2016 Moscow Total NSA 85 ths sqm *JLL estimate as of 31.12.2015 December 2015 Open Market Value* RUB 4,540 mln Income from sales* RUB 11,009 mln Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 29#31Summer Garden September 2016 Moscow Total NSA 283 ths sqm *JLL estimate as of 31.12.2015 Visualization Open Market Value* RUB 7,640 mln Income from sales* RUB 32,236 mln Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 30#32House on Obruchevykh September 2016 Visualization St. Petersburg Total NSA 42 ths sqm Sales launched in August 2016 Delivery expected in 2018 Source: Company data Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 31#33Galactica A St. Petersburg Total NSA 798 ths sqm EEEE Open Market Value* RUB 10,787 mln Income from sales* RUB 72,311 mln Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 32 *JLL estimate as of 31.12.2015#345 Appendix FEEEEEEER ✓ Etalon Group Golden Bay, 2008 EEEEEEEE#35At 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) • 19% CAGR for deliveries over 2010-2015(1) Strong delivery track record . Over 29 years of construction & development experience • 5.1 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 • 5,000 employees • Country-wide sales network covering 46 cities Diversified projects portfolio . Liquidity and credit ratings • Secure liquidity position supported by pre-sales cash collections model • Low leverage: 0.7x net debt / EBITDA 2015(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 LSE ticker Share price ETLN:LI USD 2.78 (07.10.2016) USD 812 mln (07.10.2016) Market capitalisation Portfolio valuation (by Jones Lang La Salle) RUB 104,384 mln (31.12.2015) Portfolio composition (2) 5% 43% 50% 57% 45% ■SPMA MMA . Land bank of 2.72 mln sqm (2) Land bank sufficient until 2020 Projects well diversified by locations in SPMA and MMA (1) Company operating results; (2) JLL land bank valuation report as of 31.12.2015; (3) IFRS financial statements; (4) 'B+' long-term & 'B' short-term corporate credit ratings of SSMO LenSpetsSMU (last reconfirmed on 03.06.2016). »Etalon Group Operating Results Landbank Valuation ■ Projects under development Projects at design stage ■ Projects completed Financial Results Selected Projects Appendix 34#36Strategic vertical integration: control over costs, quality and timing Etalon Group operates in every part of the property development process I | Land Acquisition and Permits Construction Materials (1) Funding Independence from suppliers, but only in crucial areas Design Effective Capital Recycling Construction Contracting and Commissioning 個 Tower Cranes (2) Sales and Marketing Control over costs, quality and timely delivery of projects 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 31.12.2015 Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 35 55#37Nationwide sales & marketing network supports sustainable contracting Powerful sales network across the country Regional population actively buys apartments in Moscow and St. Petersburg Monchegorsk Murmansk Apatity SPMA Arkhangelsk Severodvinsk Kostroma MMA Perm Kazan Tolyatti Tyumen Ekaterinburg · Snezhinsk Krasnodar Samara Chelyabinsk Omsk⚫ • Norilsk Nadim Noviy Urengoy Gubkinskiy Yakutsk Mirniy Magadan Khanty-Mansiysk Surgut Nefteyugansk Nizhnevartovsk Ust-Ilimsk Kemerovo Krasnoyarsk Etalon Group's regional sales geography(1) Region Leningrad region Khanty-Mansiysk AD Share of total contracts 3.2% 1.9% Krasnoyarski krai 1.9% Murmansk region 1.8% Yamalo-Nenets AD 1.7% Yakutia 1.6% Khabarovsky krai 1.3% Petropavlovsk- Kamchatskiy Arkhangelsk region 1.0% Other Russian regions 24.2% Foreigners 1.9% Total 40.5% Etalon Group's sales offices / representatives Established relationships / partnerships with local sales agencies Komsomolsk-on-Amur Bratsk Khabarovsk Novosibirsk Irkutsk Blagoveshchensk Novokuznetsk Chita 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 2.7x Yamalo-Nenets AD 2.1x Moscow 2.0x Vladivostok Sakhalin region 1.6x Magadan region 1.6x Chukotka 1.6x • Etalon Group's sales force is focused on the regions with the largest income per capita • Key markets: SPMA and MMA • 46 cities covered with 8 sales offices in St. Petersburg and 20 more sales offices nationwide • External professional marketing and sales service agents engaged nationwide Khanty-Mansiysk AD 1.4x St. Petersburg 1.4x Moscow region 1.4x Tyumen region 1.3x Kamchatski krai 1.3x Khabarovski krai 1.3x Murmansk region 1.2x Yakutia 1.2x Sverdlovsk region Russia average 1.1x (1) Source: company data for 3Q 2016 (2) Average monthly cash income per capita, Rosstat's preliminary estimates for 3M 2016 Etalon Group Operating Results Etalon Group's target regions Landbank Valuation Financial Results Selected Appendix 36 Projects#38Strong corporate governance and shareholder structure Corporate governance structure General Shareholders Meeting Board of Directors Shareholder structure 1.0% 30.8% 44.1% Board Committees • Chairman (D. Zarenkov) 16.4% • 2 Executive Directors 7.7% Strategy Committee ⚫ 7 Non-Executive Directors, including 4 Independent Directors Zarenkov family Remuneration & Nomination Committee Management Baring Vostok Free float Etalon Development Ltd Management Team Audit Committee As of 31 December 2015 Source: Company data → Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 37#39INDEPENDENT NON- EXECUTIVE DIRECTORS NON-EXECUTIVE DIRECTORS EXECUTIVE DIRECTORS Board of Directors represents interests of all investor groups Viacheslav Zarenkov President, CEO and Founding shareholder Dmitry Zarenkov Chairman of the Board of Directors Kirill Bagachenko Deputy CEO and Vice President Experience and awards • 46 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 Michael John Calvey Senior partner at Baring Vostok since 1999 Experience and awards ⚫ 19 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 Alexei Kalinin Senior partner at Baring Vostok Experience and awards • 11 years' experience in corporate finance and asset management • Previously held position of senior equity portfolio manager at TKB BNP Paribas Investment Partners . In 2013 voted one of the top three portfolio managers in Russia by Thomson Reuters Extel Survey Education ⚫ St. Petersburg State University of Economics and Finance Anton Evdokimov Experienced Real Estate Professional 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 Experience and awards • 29 years of experience in construction industry • Certificate of Honour of the Ministry of Regional Development Education ⚫ Leningrad Engineering Construction Institute, SPb State University and International Banking Institute, Open University Business School (MSc in International finance, MBA in business strategy) Boris Svetlichny Independent Non-Executive Director Martin Cocker Independent Non-Executive Director Anton Poryadin Independent Non-Executive Director Andrew Howat Independent Non-Executive Director Experience and awards • Over 27 years 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) (1) Title granted by President of Russia Etalon Group Experience and awards • 21 years of experience in audit, 6 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 Operating Results Landbank Valuation Experience and awards 14 years of experience in strategy consulting at A.T. Kearney. Partner and Vice President at A.T. Kearney • Worked at Barents International Markets B.V., Torno Internazionale S.p.A., St. Petersburg Foundation for Enterprise Development Education ⚫SPb Technical University, Business School at the University Of Rochester Financial Results Selected Projects Experience and awards • 31 years of experience in international finance, banking and investment businesses • Worked as a senior Director at ING Bank in the Corporate Banking and Financial Markets divisions, and as Managing Director of Butterfield Fulcrum • Chartered member of the Chartered Institute for Securities & Investment Education ⚫ Farnborough College of Technology Appendix 38 88#40Residential 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 18-30 months Medium-low permission risk Medium entry price Investment contract, planning & construction permit 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 → Etalon Group Operating Landbank Results Valuation Financial Results Selected Projects Appendix 39#41Typical project cost structure Materials cost structure* (RUB 12,000 18,000 per sqm of NSA) Bricks Sand 2% Crushed granite 3% 8% Cement 15% 23% Construction cost structure* (RUB 29,000 - 39,000 per sqm of NSA) Machinery 5% Materials 49% Other 43% 16% TO 19% VAT accrued Total cost structure* (RUB 59,000 72,000 per sqm of NSA) 17% Wages Construction Other Project management 1% 2% 5% Design Interest expense 6% 8% O 56% 14% 8% Sales costs Infrastructure Land acquisition Metal products Typical project lifecycle* Task Predevelopment Zero cycle works Construction works Facade works Fit out works MEP systems Engineering facilities Urban landscaping Overhead expenses** Share,% Start, month Duration, months 3 7 02 8 10 43 14 2 687 31515 52 5 20 16 10 18 10 21 23 24 6 0 5 Construction timeline, months 10 *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. **including payroll tax ✓ Etalon Group Operating Results Landbank Valuation Financial Results 15 20 25 30 30 Selected Projects Appendix 40 40#42Etalon Group has an extensive track record of successful industrial construction projects that meet the highest standards of quality Ford Motor Company Nissan plant ExpoForum *Expected date of completion 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 UniPres UNIPRES Zvezda-Reduktor ЗВЕЗДА State Hermitage Museum 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 Diesel engines Contract covers a total area of 9,854 sqm • • manufacturer of compact, high-RPM 2015-2016* 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 4Q 2016 Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 41#43Income statement mln RUB Revenue 2013 2014 2015 1H14 1H15 1H16 39,921 51,481 42,404 14,539 18,148 19,742 Cost of sales (27,553) (35,685) (29,405) (10,759) (12,584) (15,685) Gross profit 12,368 15,796 12,999 3,780 5,564 4,057 General and administrative expenses (3,157) (4,178) (4,348) (1,957) (2,021) (1,958) Selling expenses (1,023) (1,474) (1,411) (577) (619) (918) Other expenses, net (40) (913) (991) (166) (341) (495) Results from operating activities 8,148 9,231 6,249 1,080 2,583 686 Finance income 691 1,717 1,686 391 998 891 Finance costs (342) (553) (504) (242) (593) (152) Net finance income 349 1,164 1,182 149 405 739 Profit before income tax 8,497 10,395 7,431 1,229 2,988 1,425 Income tax expense (1,833) (2,026) (2,002) (302) (795) (117) Profit for the period 6,664 8,369 5,429 927 2,193 1,308 Profit attributable to: Owners of the Company Non-controlling interest Profit for the period Source: IFRS financial statements for 2013, 2014, 2015, 1H14, 1H15, 1H16 Etalon Group Operating Results 6,629 8,345 5,399 927 2,188 1,307 35 24 30 5 1 6,664 8,369 5,429 927 2,193 1,308 Landbank Valuation Financial Results Selected Projects Appendix 42#44Balance sheet mln RUB 2013 2014 2015 1H14 1H15 1H16 mln RUB 2013 2014 2015 1H14 1H15 1H16 Assets Equity and Liabilities Non-current assets Equity PP&E 1,962 2,503 2,479 2,326 2,349 2,433 Share capital Investment property 1,142 808 538 1,052 618 482 Retained earnings 14,967 14,983 14,999 14,983 14,983 29,332 36,537 39,697 30,259 37,011 14,999 40,068 Other long-term investments 275 1,036 578 684 684 556 Total equity attributable to equity holders of the Company 44,299 51,520 54,696 45,242 51,994 55,067 Trade and other receivables 1,332 2,521 3,303 756 2,164 3,801 Non-controlling interest 387 351 147 387 170 83 Deferred tax assets 560 885 1,159 710 1,040 1,412 Total equity 44,686 51,871 54,843 45,629 52,164 55,150 Other non-current assets 10 10 5 10 10 2 Non-current liabilities Total non-current assets 5,281 7,763 8,062 5,538 6,865 8,686 Loans and borrowings Current assets Trade and other payables 10,176 785 12,411 13,138 10,050 13,375 2,854 923 678 4,024 12,950 610 Inventories 50,057 57,525 Trade and other receivables 15,078 15,074 Short-term investments 5,008 1,221 67,722 18,227 733 57,132 61,131 17,746 15,926 5,493 2,122 69,237 20,340 Provision 89 114 117 91 112 109 Deferred tax liabilities 830 Total non-current liabilities 11,876 826 1,456 1,810 16,835 15,988 11,469 18,760 650 1,249 1,096 14,765 Cash and cash equivalents 8,139 14,631 11,532 9,635 10,042 15,770 Current liabilities Other current assets 7 66 7 18 66 7 Loans and borrowings Total current assets 78,289 88,517 98,221 Total assets 83,570 96,280 106,283 90,024 89,287 95,562 96,152 106,184 114,870 Trade and other payables Provisions 3,043 3,880 6,276 4,689 5,141 22,300 21,460 25,630 32,436 18,451 8,720 34,375 Total current liabilities Total equity and liabilities 1,665 2,234 3,546 1,339 1,636 27,008 27,574 35,452 38,464 25,228 83,570 96,280 106,283 95,562 96,152 1,860 44,955 114,870 Source: IFRS financial statements for 2013, 2014, 2015, 1H14, 1H15, 1H16 Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 43#45Cashflow statement mln RUB Operating Activities Profit for the period Adjustments for: Depreciation Loss (gain) on disposal of PP&E 2013 2014 2015 1H14 1H15 1H16 6,664 8,369 5,429 927 2,193 1,308 343 417 406 204 213 240 (15) (52) (65) (46) 20 (7) Impairment loss on investment property 280 215 60 166 27 Impairment loss on inventories 466 514 85 30 290 Finance income, net (337) (1,164) (1,182) (149) (405) (739) Income tax expense 1,833 2,026 2,002 302 795 117 Cash from operating activities before changes in working capital 8,488 10,342 7,319 1,383 Change in inventories (7,837) (6,890) (8,255) (6,763) 3,012 (2,418) 1,236 (502) Change in accounts receivable (5,080) (1,427) (3,958) (2,093) (366) (2,381) Change in accounts payable 4,880 1,184 2,369 10,135 (1,461) 8,519 Change in provisions Change in other current assets Income tax paid Interest paid Net cash from/(used in) operating activities Investing Activities Proceeds from disposal of non-current assets Interest received 1,109 594 1,315 (324) (600) (1,694) 25 (59) 59 (11) (907) (1,645) (2,146) (742) (1,605) (1,070) (1,724) (1,588) (2,516) (683) (1,180) (1,278) (1,046) 511 (5,813) 902 (4,618) 2,830 15 66 188 52 29 45 611 823 1,311 342 802 580 Acquisition of PP&E (431) (653) (369) (364) (95) (218) Loans given (55) (178) (123) (16) (4) Loans repaid 85 174 66 79 21 (41) 18 Acquisition of subsidiaries, net of cash acquired 10 - Disposal of subsidiaries, net of cash disposed of (20) 7 (3) (1) (Acquisition)/disposal of other investments 1,606 3,038 1,155 (964) (598) (113) Net cash used in investing activities 1,821 3,277 2,228 (871) 152 270 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 2013, 2014, 2015, 1H14, 1H15, 1H16 Etalon Group Operating Results Landbank Valuation (10) (83) (20) (66) (38) 5,937 10,763 (9,668) (8,498) 9,480 (6,281) 5,627 4,707 5,882 (4,278) (2,323) (3,635) 16 16 16 (1,124) (2,452) (1,834) (961) (3,741) 1,074 743 1,365 484 1,248 (2,966) 4,862 (2,842) 1,396 (3,982) 4,348 389 1,630 (257) 100 (607) (110) 8,139 14,631 11,532 9,635 10,042 15,770 Financial Results Selected Projects Appendix 44#46EBITDA calculation mln RUB 2013 2014 2015 1H14 1H15 1H16 Comprehensive income 6,664 8,369 5,429 927 2,193 1,308 Income tax expense 1,833 2,026 2,002 302 795 117 Interest expense on loans and finance leases 233 295 19 140 15 6 Net foreign exchange loss 109 138 70 438 51 Interest income on bank deposits (583) (729) (1,089) (307) (686) (437) Interest income on loans and receivables (28) (94) (222) (35) (116) (143) Net foreign exchange gain (814) Bank fees and commissions 80 117 95 42 49 65 Interest in COS Depreciation 779 1,024 897 340 272 508 343 417 406 204 213 240 EBITDA 9,430 10,611 7,675 1,683 3,173 1,715 2013 2014 2015 1H14 1H15 1H16 + Depreciation to COGS (Note 13 PP&E) 292 271 284 160 167 183 Depreciation to selling expenses (Note 1 4 6 1 3 2 13 PP&E) Depreciation to G&A expenses (Note 13 PP&E) 39 94 24 63 19 19 29 Depreciation to Investment property 11 48 48 18 (Note 14 Investment property) 24 24 24 24 Depreciation to other non-current assets 5 2 Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 45#47Working capital calculation mln RUB Total inventory 2013 2014 2015 1H14 1H15 1H16 50,057 57,525 67,722 57,132 61,131 69,237 Current part + Trade and other receivables 15,078 15,074 18,227 17,746 15,926 20,340 Trade and other payables 22,300 21,460 25,630 32,436 18,451 34,375 - Provisions 1,665 2,234 3,546 1,339 1,636 1,860 Non-current part + Trade and other receivables 1,332 2,521 3,303 756 2,164 3,801 - Trade and other payables 785 2,854 923 678 4,024 610 - Provisions 89 114 117 91 112 109 Adjustments - Cumulative borrowing costs capitalized during the period (Note 11 Finance income and finance costs) 4,092 5,416 7,977 4,660 6,636 9,278 + Cumulative borrowing costs that have been included into the cost of sales (Note 11 Finance income and finance costs) 1,289 2,313 3,210 1,629 2,585 3,718 -Income tax receivable (Note 18 Trade and other receivables) 103 159 358 85 467 302 +Income tax payable (Note 25 Trade and other payables) 248 380 125 116 10 100 Working capital 38,970 45,576 54,036 38,090 50,490 50,662 Etalon Group Operating Results Landbank Valuation Financial Results Selected Projects Appendix 46#48FCF calculation mln RUB Comprehensive income 2013 2014 2015 1H14 2H14 1H15 2H15 1H16 6,664 8,369 5,429 927 7,442 2,193 3,236 1,308 Adjustment for: Depreciation 343 417 406 204 213 213 193 240 Loss/(gain) on disposal of PP&E (15) (52) (65) (46) (6) 20 (85) (7) Impairment loss on investment property 280 215 60 220 166 49 27 Impairment loss on inventory 466 514 85 381 30 484 290 Loss on disposal of subsidiaries Finance income, net Income tax expense Income tax paid Interest paid (337) (1,164) (1,182) (149) (1,015) (405) (777) (739) 1,833 2,026 2,002 302 1,724 795 1,207 117 (907) (1,645) (2,146) (742) (903) (1,605) (541) (1,070) (1,724) (1,588) (2,516) (683) (905) (1,180) (1,336) (1,278) (Increase)/Decrease in working capital (Increase)/Decrease in invested capital FCF (6,903) (6,598) (8,470) 944 (7,542) (4,845) (3,625) 3,942 (416) (587) (181) (312) (275) (66) (115) (173) (1,462) (76) (5,994) 590 (666) (4,684) (1,310) 2,657 (Increase)/Decrease in working capital based on CF 2013 2014 2015 1H14 2H14 1H15 2H15 1H16 statement + Change in inventories Change in accounts receivable (7,837) (5,080) (6,890) (8,255) (6,763) (1,427) (3,958) (2,093) (127) 666 (2,418) (366) (5,837) (502) (3,592) (2,381) Change in accounts payable 4,880 1,184 2,369 10,135 8,951 (1,461) 3,830 8,519 Change in provisions 1,109 594 1,315 (324) 918 (600) 1,915 (1,694) Change in other current assets 25 (59) 59 (11) (48) 59 Working capital change (6,903) (6,598) (8,470) 944 (7,542) (4,845) (3,625) 3,942 + (Increase)/Decrease in invested capital based on CF 2013 2014 2015 1H14 2H14 1H15 2H15 1H16 statement Acquisition of PP&E (431) (653) (369) (364) (289) (95) (274) (218) Proceeds from disposal of non-current assets 15 66 188 52 14 29 159 45 Invested capital change (416) (587) (181) (312) (275) (66) (115) (173) Etalon Group Operating Landbank Financial Selected Appendix Results Valuation Results Projects 47#49Etalon Group Limited Redwood House St Julian's Avenue St Peter Port Guernsey GY1 1WA » Etalon Group Tel: +44 (0)20 8123 1328 Fax: +44 (0)20 8123 1328 Email: [email protected] 48