LSR Group Reports 4Q and 12M 2018 Operating Results

A new contract sales high of RUB 93 bln with a total of over one million sqm in 2018 reflecting a strengthened competitive position and balanced portfolio

St. Petersburg, Russia – 28 January 2019 – PJSC LSR Group (“LSR” or the “Company”) (LSE: LSRG; MOEX: LSRG), one of the leading real estate developers and building materials producers in Russia, today announces its operating results for the fourth quarter and twelve months ended 31 December 2018.

FY2018 Highlights:

• Outperformed guidance by 9.5% on new contract sales – up 44% year-on-year to 1,002 th. sqm, or 920 th. sqm, excluding parking space, reaching RUB 93 billion, up 38% year-on-year, or RUB 90 billion,
• Average price per sqm of RUB 93,000 (RUB 98,000 excl. parking), reflecting higher sales in the St. Petersburg mass-market real estate
• 684 th. sqm (620 th. sqm excl. parking) launched across all market
• Completions of 1,009 th. sqm of net sellable area (888 th. sqm excluding parking).
• Share of mortgage sales amounted to 53% compared to 47% in
• Completion of 144 th. sqm (105 th. sqm excl. parking) of the ZILART project in
• In the fourth quarter, LSR entered the apartment market through the NEOPARK project and the launch of a large-scale mass market project Ruchyi, St.
• Strong performance by the Building Materials business segment: sales of crushed granite and sand increased by 26% year-on-year and 41% year-on-year, respectively; and a record high sale of 1.1 mln m3  of ready-mix

Andrey Molchanov, Chairman of the Board of Directors of PJSC LSR Group, commented:

“LSR Group delivered a solid set of results for 2018, on the back of record high new contract sales across all regions.

New contract sales totalled just over one million square meters during 2018, translating into RUB 93 billion. This is a reflection of the recent adjustments made to the Company’s product offering, which has led to a more competitive proposition. Contract sales were also underpinned by record low mortgage  rates in the first half of the year, and consumer expectations for future price increases in light of recent regulatory changes.

Our building materials business segment continues to perform strongly, with an increase in sales of our crushed granite and sand products, as well as higher shipment volumes of our ready-mix concrete.

Looking ahead, we will maintain our leading market positions by focusing on offering an optimal mix of elite, business and mass-market developments, leaving us well positioned to capitalise on the general increase in market demand for quality real estate.”

REAL ESTATE DEVELOPMENT1

Real Estate in St. Petersburg

Real Estate in Moscow

• Here and from hereon, the operating results in tables related to Real Estate Development are rounded to whole numbers in thousands square metres, while all the calculations are based on the full
• Here and from hereon, ADJUSTED figure (‘adj.’) includes parking at a conversion rate of 30 sqm per parking

Real Estate in Yekaterinburg

CONSTRUCTION

Notes: The operating results in this table are rounded to whole numbers in thousand square metres, while all the calculations are based on the full figures.

*Sales figures in Yekaterinburg include both transfer of completed panel housing to the customers and sales of reinforced concrete for panel construction.