LSR : Download 9M2020 Trading Volume Update

Operating Results

NINE MONTHS OF 2020

October 2020

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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9M 2020 GROUP OPERATING HIGHLIGHTS

• NEW CONTRACT
  SALES
• AVERAGE PRICE

• AND NEW LAUNCHES
• BUILDING

MATERIALSCOMPLETIONS

• OPERATINGGUIDANCEFY 2020

New contract sales increased by 16% YoY, amounting to RUB 66 billion or 590 th. sqm, primarily

driven by strong results in St. Petersburg.

Share of mortgage sales totalled 64%, compared to 48% in 9M 2019.

We expect the share of mortgage sales to remain high given the expected prolongation of the

mortgage rate subsidy program until 1 July 2021.

Average price per sqm increased by 8% YoY reaching RUB 124 th.

Completions reached 200 th. sqm of net sellable area, in line with the projects schedule.

New 585 th. sqm of net sellable area launched in 9M 2020.

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

The sales of ready-mix concrete and sand declined by 15% YoY. Other materials showed marginal

decline in sales volumes, while aerated concrete sales increased by 30% YoY.

The Company reiterates it's sales guidance for FY 2020:

• 870 th. sqm (+6% YoY)
• RUB 95bn (+13% YoY)

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

9M 2020 RESULTS HIGHLIGHTS - REAL ESTATE

NEW CONTRACT SALES (TH. SQM)

	590
552
	+7%
9M 2019	9M 2020

AVERAGE PRICE (RUB TH. / SQM)

NEW CONTRACT SALES (RUB BN)

	66
	+16%
57
9M 2019	9M 2020

COMPLETIONS (TH. SQM)

94

113 114 115

98 100 99

127 130

109 108

390
-49%	200

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

9M 2019

9M 2020

Source: Company information	4

9M 2020 NEW CONTRACT SALES

REGIONAL FIGURES

SAINT PETERSBURG

MOSCOW

URALS

TH. SQM

RUB BN

TH. SQM

RUB BN

TH. SQM

RUB BN

	373
+26%
297
9M 2019	9M 2020

	38
+38%
27
9M 2019	9M 2020

171
	128
	-25%
9M 2019	9M 2020

25
	23
	-9%
9M 2019	9M 2020

	89
83
	+6%
9M 2019	9M 2020

	6
5
+14%
9M 2019	9M 2020

New contact sales in St. Petersburg increased by 38% YoY in rouble terms, mainly driven by mass-market segment (+49% YoY) which delivered particularly strong performance in 3Q 2020 (+131% YoY).

The results were supported by the mortgage rate subsidy program, and with our proper product offering that met consumer needs. This was well-observed in the performance of our flagship projects Tsvetnoy Gorod and Civilization where sales were up 286% and 348% respectively in rouble terms during the third quarter.

The Moscow region demonstrated healthy performance which reflected our focus on profitability over volumes.

In the third quarter new contract sales increased by 3% in rouble terms due to:

• Strong performance in the business class segment with an increase in sales of 30% YoY in rouble terms driven by substantial price growth and stable sales in sqm;
• Lower share of mass market in sales given the high rate of apartments sold in our key project Luchi (~90%), while no new launches were scheduled during the period.

The Urals region demonstrated strong performance with the new contract sales up 14% YoY.

The mortgage rate subsidy program supported sales in the third quarter (+18% YoY in rouble terms) with the strongest sales recorded in our project Meridian (+138% YoY).

We expect that prolongation of the program will continue to have a positive effect on our sales in the region.

Source: Company information	5

3Q 2020 NEW CONTRACT SALES BY PROJECT

(by sqm sold1)

SAINT PETERSBURG		MOSCOW	URALS
167,000 sqm		42,000 sqm	35,000 sqm

11%		2%	7%	12%
17%
22%		25%

12%

29%

9%

17%

56%

28%20%

10%

23%

Civilization 22%

Zapovedny Park 9%

Ruchy 17%

Tsvetnoy Gorod 29%

Shuvalovsky 12%

Other 11%

Luchi 25%

Zilart 56%

Leningradka 58 17%

Other 2%

Flagman 12%

Michurinsky 20%

Tsvetnoy Bulvar 23%

Khrustalnye Klyuchi 10%

Meridian 28%

Rassvetny 7%

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

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Source: Company information

9M 2020 BUILDING MATERIALS SALES

CRUSHED GRANITE ('000 m³)

READY-MIX CONCRETE ('000 m³)

BRICKS (mln units)

5,685		883
	5,211		748		240	229
	-8%		-15%			-5%
9M 2019	9M 2020	9M 2019	9M 2020		9M 2019	9M 2020
	SAND ('000 m³)		AERATED CONCRETE ('000 m³)
	6,463				1,406
		5,502
				1,079
	-15%				+30%
	9M 2019	9M 2020		9M 2019	9M 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

#1 in St. Petersburg

#1 in Yekaterinburg

#6 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 53 BILLION
2% 8%								development
											Distributed in dividends
			43%	48%					10 YEARS SUCCESSIVE
35%
								Of dividend payments supported by
								47%
								well-invested cash generative
12%									building materials business
											PAYOUT RATIO >70%
		Mass market		Elite		Completed				Design	Average payout ratio since 2010
				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 01.01.2020 for each city; 1 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 and

Investment

Committee

Dmitri Kutuzov				HR and
Vasily Kostritsa
		Compensations
	Ivan Romanov
Chief Financial Officer	Deputy CEO	Committee
Deputy CEO
	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

and Investment

Committee

Igor Levit

Member of Strategy and

Investment 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 and Investment 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 and
Compensations Committee	Investment Committee
Andrey Molchanov	Egor Molchanov
CEO	Member of Strategy and
Chairman of the	Investment Committee
Executive Committee
Founder of LSR

Source: Company information	10

9M 2020 KEY OPERATING RESULTS

REAL ESTATE1

	3Q 2020	3Q 2019	Change %	9M 2020	9M 2019	Change %
New contract sales, th. m2	244	183	33%	590	552	7%
Completed, th. m2	28	231	(88%)	200	390	(49%)
		Real Estate - St. Petersburg
New contract sales, th. m2	167	97	73%	373	297	26%
Completed, th. m2	-	52	(100%)	4	52	(93%)
		Real Estate - Moscow
New contract sales, th. m2	42	55	(22%)	128	171	(25%)
Completed, th. m2	0.5	145	(100%)	152	286	(47%)
		Real Estate - Yekaterinburg
New contract sales, th. m2	35	32	9%	89	83	6%
Completed, th. m2	27	33	(18%)	45	52	(14%)
BUILDING MATERIALS1
Product	3Q 2020	3Q 2019	Change %	9M 2020	9M 2019	Change %
Crushed granite, th. m3	2,030	2,194	(7%)	5,211	5,685	(8%)
Sand, th. m3	1,928	2,809	(31%)	5,502	6,463	(15%)
Ready-mix concrete, th. m3	251	326	(23%)	748	883	(15%)
Bricks, million units	89	93	(4%)	229	240	(5%)
Aerated concrete, th. m3	598	471	27%	1,406	1,079	30%

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

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