Etalon Group Operating Results

PROFITABILITY 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

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