Etalon Group Mortgage and Real Estate Market Insights
At a glance
Presence in rapidly growing markets
•Focus on middle class residential real estate
in Moscow metropolitan area (MMA) and
St. Petersburg metropolitan area (SPMA)
• 25% target CAGR for construction volumes
over 2010-2016(1)
Strong delivery track record
• Over 26 years of construction &
development experience
⚫3.9 mln sqm commissioned
• 31% CAGR for deliveries over 2010-2013(2)
True vertical integration
• Strategic vertical integration in key value-
added segments of property development
enables the Company to control costs,
quality and timing
• 4,500 employees
•
Country-wide sales network covering 36
cities
Diversified projects portfolio
• Land bank of 3.44 mln sqm(3)
• Land bank sufficient until 2018
•Projects well diversified by locations within
both SPMA and MMA
Etalon Group
Liquidity and credit ratings
• Secure liquidity position supported
by pre-sales cash collections model
• Strong financial standing with a net cash
position of USD 7 mln (4)
• Credit rating by S&P: B+/Stable/B+(5)
Corporate governance
⚫ 10 BoD members, 5 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 15% to
30% of IFRS net profit semi-annually
(1) Company expectations;
(2) Company operating results;
(3) Jones Lang LaSalle land bank valuation report as of 31.12.2013;
(4) Unaudited management accounts as of 30.06.2014;
(5) 'B+' long-term & 'B+' short-term corporate credit
ratings of SSMO LenSpetsSMU with 'Stable' outlook (last reconfirmed on
29.07.2013).
(6) Jones Lang LaSalle land bank valuation report as of 31.12.2013
LSE ticker
Share price
Market capitalization
ETLN:LI
USD 4.15 (15.08.2014)
USD 1,212 mln (15.08.2014)
Portfolio valuation (by
Jones Lang LaSalle)
USD 2,727 mln (31.12.2013)
Portfolio composition (6)
■ SPMA
42%
58%
■MMA
5%
■Residential under
construction
■Residential design
46%
stage
49%
■Completed residential
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