LSR : Download 2020 Full Year Trading Volume Update

Operating Results

FY 2020

January 2021

DISCLAIMER

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This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or an offer or the solicitation of an offer to subscribe for, buy or acquire securities of PJSC LSR Group ("hereinafter - the Company") or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity, nor does it purport to give legal, tax or investment advice. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information in this document has been prepared by the Company solely for use at presentations. This document and its contents may not be distributed, published, reproduced (in whole or in part) by any medium or in any form.

The information in the presentation/this document does not purport to be comprehensive. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially.

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The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe 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 our control and we may not achieve or accomplish these expectations, beliefs or projections. In addition, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the achievement of the anticipated levels of revenues, profitability and growth, the timely development and acceptance of new products, the impact of competition and competitive pricing, the effect of changes in applicable law, the ability to obtain necessary regulatory approvals and the ability to fund our future operations and capital needs through borrowing or otherwise, the ability to successfully implement any of our business strategies, the ability to integrate our business and to realize anticipated cost savings and operational benefits from such integration, our expectations about growth in demand for our products and services, the effects of inflation, interest rate and exchange rate fluctuations, and our success in identifying other risk to our business and managing the risk of the aforementioned factors, the condition of the economy and political stability in Russia and the other markets of operations and the impact of general business and global economic conditions.

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12M 2020 GROUP OPERATING HIGHLIGHTS

• NEW CONTRACT
  SALES
• MORTGAGE SHARE
• AVERAGE PRICE

• AND NEW LAUNCHES
• BUILDING

MATERIALSCOMPLETIONS

New contract sales increased by 12% YoY, amounting to RUB 95 billion or 826 th. sqm, primarily

driven by strong results in St. Petersburg.

Share of mortgage sales totalled 64%, compared to 47% in 12M 2019;

Historically low interest rates and potential prolongation of the mortgage rate subsidy programme until the end of 2021 would likely maintain high share of mortgage sales.

Average price per sqm increased by 14% YoY reaching RUB 129 th.

Completions reached 672 th. sqm of net sellable area;

New 787 th. sqm of net sellable area launched in 12M 2020.

Solid performance of building materials segment, in line with management expectations.

Source: Company information

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Note: Here and from hereon, the operating results are rounded to whole numbers while the % change calculations are based on the full figures

12M 2020 RESULTS HIGHLIGHTS - REAL ESTATE

NEW CONTRACT SALES (TH. SQM)

817	826
	+1%
12M 2019	12M 2020

AVERAGE PRICE (RUB TH. / SQM)

NEW CONTRACT SALES (RUB BN)

	95
	+12%
84
12M 2019	12M 2020

COMPLETIONS (TH. SQM)

94

113 114 115

98 100 99

143

127 130

109 108

834

672

-19%

1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
2018	2018	2018	2018	2019	2019	2019	2019	2020	2020	2020	2020

12M 2019

9M 2020

Source: Company information	4

12M 2020 NEW CONTRACT SALES

REGIONAL FIGURES

SAINT PETERSBURG

MOSCOW

URALS

TH. SQM

RUB BN

TH. SQM

RUB BN

TH. SQM

RUB BN

	518
461
+12%
12M 2019	12M 2020

	54
43
+27%
12M 2019	12M 2020

241
	183
-24%
12M 2019	12M 2020

34	32
	-5%
12М 2019	12М 2020

	125
116
+8%
12M 2019	12M 2020

	8
7
+13%
12M 2019	12M 2020

Sales in St.Petersburg increased by 27% in rouble terms thanks to:

• Our strong product offering in the mass-market segment and low mortgage rates on the back of government's subsidy programme. New contract sales in sqm in our largest projects Tsvetnoy Gorod and Civilization were up 51% and 41% respectively;
• An increase in average price by 14% compared to 2019 due to higher stage of completion of our projects as well as increase in sales of our business class project Morskaya Naberezhnaya that was launched in 2019.

New contract sales declined in Moscow by 5% in rouble terms due to:

• Our focus on profitability and therefore a planned decline in sales volumes. This was mostly offset by an increase in the average price by 40% thanks to our distinctive product offering;
• The impact of the coronavirus outbreak in the second quarter which resulted in the closure of sales offices and banks in Moscow from mid-April to mid- May.

Sales in Yekaterinburg increased by 13% thanks to our attractive product offering, lower mortgage rates as well as our planned increase in the average price by 10%. Our projects Meridian and Tsvetnoy Bulvar demonstrated sales growth of 59% and 36% respectively in rouble terms, while our project Rassvetny more than tripled its sales.

Source: Company information	5

4Q 2020 NEW CONTRACT SALES BY PROJECT

(by sqm sold1)

SAINT PETERSBURG		MOSCOW	URALS
128,018 sqm		31,687 sqm	27,351 sqm

7%

8%

9%40%

14%

22%

Tsvetnoy Gorod 40%

Civilization 22%

Ruchy 14%

Other 9%

Zapovedny Park 8%

Morskaya Naberezhnaya 7%

9%

9%

20%

62%

Zilart 62%

Luchi 20%

Other 9%

Leningradka 58 9%

6%

11%22%

19%

21%

21%

Meridian 22%

Michurinsky 21%

Rassvetny 21%

Tsvetnoy Bulvar 19%

Khrustalnye Klyuchi 11%

Flagman 6%

Note: 1 Respective project % share in sales is calculated using sales data w/o parking sales

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Source: Company information

12M 2020 BUILDING MATERIALS SALES

CRUSHED GRANITE ('000 m³)		READY-MIX CONCRETE ('000 m³)		BRICKS (mln units)

7 416	6 934
	-7%

1 142

947

-17%

305	296
	-3%

12M 2019	12M 2020	12M 2019
	SAND ('000 m³)
8 240
	7 194
	-13%
12M 2019	12M 2020

12M 2020	12M 2019	12M 2020
AERATED CONCRETE ('000 m³)
	1 814
1 413
	+28%
12M 2019	12M 2020

Source: Company information	7

APPENDIX

LSR GROUP

LEADING PLAYER IN RUSSIAN RESIDENTIAL REAL ESTATE

TRUE FEDERAL

PLAYER

ONE OF THE

ONLY RUSSIAN

DEVELOPERS WITH

SIGNIFICANT

PRESENCE IN KEY

REGIONS

LEADING POSITION

#2 in Russia

#1 in St. Petersburg

#5 in Yekaterinburg

#8 in Moscow

BALANCED CUSTOMER

SCALABLE LAND

SHAREHOLDER

EXPOSURE

BANK

VALUE CREATION

PRESENT IN	OVER 7.6 MLN	STRONG
MASS MARKET,	SQM OF NET	FOCUS ON
BUSINESS AND	SELLABLE AREA	SHAREHOLDER
ELITE SEGMENTS	WITH MARKET	RETURNS
	VALUE OF	THROUGH
	RUB 207 BILLION	DIVIDENDS

HIGH QUALITY PORTFOLIO		LARGE LAND BANK	STABLE DIVIDENDS FLOW
		By value				By area
					0%	1%	4%
										5 years of	RUB 55 BILLION
2% 8%								development**
											Distributed in dividends
			43%	48%					10 CONSECUTIVE YEARS
35%
								of dividend payments
								47%
12%									PAYOUT RATIO >70%
								Average payout ratio since 2010
		Mass market		Elite		Completed				Design
				Concept development			Construction
		Business		Operating offices
				Operating offices
		Commercial

Source: ERZ, Сompany information; portfolio structure per segment as at 31.12.2019	9
Note: respective rankings on market position are based on m2 under construction as at 01.01.2021 for each city; **Calculated on the basis of Design and Concept stage of land bank (c. 51% of total NSA) and assuming

construction of 834 th. sqm per annum (result for 2019)

STRONG LEADERSHIP

EXPERIENCED MANAGEMENT AND STRONG CORPORATE GOVERNANCE

KEY MANAGEMENT TEAM MEMBERS						CORPORATE GOVERNANCE STRUCTURE
			Igor Levit
	Andrey Molchanov		Evgeny Yatsyshin			Independent
	CEO	First Deputy CEO	Deputy CEO		GENERAL MEETING OF SHAREHOLDERS
		Auditors

Chairman of the	22 years at LSR	22 years at LSR
Executive Committee
Founder of LSR

BOARD OF DIRECTORS

Audit

Committee

Strategy,

Investment, IR and

Сapital markets

Committee

Dmitri Kutuzov	Vasily Kostritsa			HR and
	Ivan Romanov
Chief Financial Officer	Deputy CEO	Compensations
Deputy CEO	Committee
	Head of Building Materials

16 years at LSR		20 years at LSR	EXECUTIVE COMMITEE	Sustainability
	20 years at LSR		committee
Leonid Sorokko			CEO
Galina Volchetskaya
Deputy CEO	Executive Director
Head of Construction
	9 years in LSR
7 years at LSR

MANAGEMENT

COMPOSITION OF BOARD OF DIRECTORS

Dmitri Gontcharov Chairman of the Board of Directors Chairman of Strategy, Investment, IR and Capital markets Committee

Igor Levit

Member of Strategy, Investment, IR and Capital markets Committee, Chairman of Sustainability Committee

Alexander Prysyazhnyuk INED Chairman of Audit, member of HR and Compensations, member of Sustainability Committees

Alexey Makhnev INED Member of Audit, member of Strategy, Investment, IR and Capital markets Committees

Vitaly Podolsky INED Chairman of HR and Compensations, member of Audit , member of Sustainability Committees

Natalia Nikiforova INED	Evgeny Yatsyshin
Member of HR and	Member of Strategy,
Compensations Committee	Investment, IR and Capital
	markets Committee
Andrey Molchanov	Egor Molchanov
CEO	Member of Strategy, Investment,
Chairman of the	IR and Capital markets
Executive Committee	Committee
Founder of LSR

Source: Company information	10

12M 2020 KEY OPERATING RESULTS

REAL ESTATE1

	4Q 2020	4Q 2019	Change %	12M 2020	12M 2019	Change %
New contract sales, th. m2	236	266	(11%)	826	817	1%
Completed, th. m2	472	444	6%	672	834	(19%)
		Real Estate - St. Petersburg
New contract sales, th. m2	145	164	(12%)	518	461	12%
Completed, th. m2	406	363	12%	410	416	(1%)
		Real Estate - Moscow
New contract sales, th. m2	54	69	(22%)	183	241	(24%)
Completed, th. m2	-	-	-	152	286	(47%)
		Real Estate - Yekaterinburg
New contract sales, th. m2	37	33	12%	125	116	8%
Completed, th. m2	66	80	(18%)	110	132	(16%)
BUILDING MATERIALS1
Product	4Q 2020	4Q 2019	Change %	12M 2020	12M 2019	Change %
Crushed granite, th. m3	1,723	1,730	(0.4%)	6,934	7,416	(7%)
Sand, th. m3	1,692	1,776	(5%)	7,194	8,240	(13%)
Ready-mix concrete, th. m3	199	259	(23%)	947	1,142	(17%)
Bricks, million units	68	65	4%	296	305	(3%)
Aerated concrete, th. m3	408	334	22%	1,814	1,413	28%

Source: Company information	11
Note: 1 Operating results in these tables are rounded to whole numbers, while the % change calculations are based on the full figures

KEY 1H 2020 FINANCIAL RESULTS

RUB, mln	2017	2018	2019	1H 2019	1H 2020	Change,%
Revenue	138,494	146,376	110,438	46,608	48,101	3%
Adjusted EBITDA	36,845	36,400	21,037	7,817	9,162	17%
Adjusted EBITDA, %	27%	25%	19%	17 %	19%	-
Operating profit,	22,444	24,798	16,624	5,759	6,664	16%
Operating profit, %	16%	17%	15%	12%	14%	-
Profit for the year	15,871	16,230	7,469	1,864	2,573	38%
RUB, mln	31.12.17	31.12.18	31.12.19	30.06.19	30.06.20	Change,%
Total debt	72,786	86,088	89,619	88,036	94,189	7%
Net debt	43,073	30,290	22,760	21,629	27,178	26%
Net debt/ EBITDA	1.17	0.83	1.08	0.62	1.21	-

Source: Company information	12

CONTACTS

For more information please contact:

Igor Tsoy

Director of Investor Relations and Sustainable Development

Tel.: [phone] (ext. 45882)

E-mail: [e-mail]

You can watch the construction progress of all our projects in a free mobile app:

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