1. About PIK Group 2

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2 1. About PIK Group 2

3 Russia s leading residential real estate developer *Source: Company data th. sqm th. sqm. RuА- 1 by total housing completions 1 by current construction volume ExpertRA rating mln $ 1 RuBBB+ 1 by market capitalization among public developers By operational cash flow Highest level among developers on the ACRA rating scale B Standard and Poor s rating 3

4 Company history Rapid expansion in the Moscow Metropolitan Area, Start of sales in other Russian regions. Acquisition of industrial production capacities Real estate market starts to recover. PIK Group contract sales reach pre-crisis volumes at 658 th. sqm. The launch of fundamentally new product and series of houses with improved characteristics and consumer properties Modernization of production capacities The launch of brand new sales and customer service technologies Increase in the share of S. Gordeev to a controlling stake (74.6%) VTB Bank becomes a portfolio investor (7.6%) Achieving record operational indicators for sales contracts and completions Implementation of PIK Group The company carried out a successful IPO on the London Stock Exchange, MICEX and RTS Change of shareholders of PIK, including the acquisition by Sergey Gordeyev of a 29% stake in the Company The arrival of the new management team and the establishment of the new business strategy Increase in operating performance indicators and acquisition of new projects Decrease in net debt to negative values Absorption of the main competitor in the Moscow region 4

5 Corporate governance Shareholder structure Annual general shareholder meeting Audit and risk committee Free float 17,8 % Board of Directors Personnel and remuneration committee VTB Bank 7,6 % Strategy committee Disclosure committee Executive bodies Management Board Investment committee President (CEO) S. Gordeev 74,6 % 5

6 Board of Directors Marina Zinovina Chairman of the Board of Directors Sergey Vorobyov Member of the board of Directors Alexander Varennya Independent Member of the board of Directors Georgy Figin Member of the board of Directors Aleksey Karpenko Member of the board of Directors Zumrud Rustamova Independent Member of the board of Directors Marina Groenberg Member of the board of Directors Alexander Dolzhich Member of the board of Directors Aleksei Blanin Independent Member of the board of Directors 6

7 Management Sergei Gordeev President Alexandr Prygunkov First vice-president Operational Director Alexander Titov Vice-president for economics and finance - financial director Vyacheslav Borisenkov Vice-president for general affairs Ilya Tikhomirov Director of the IT department Acquisition Permits Design Development and construction Sales Aleksey Almazov Vice-president for engineering Ivan Polandov Vice-president Director of Moscow Directorate Gennady Rosso Vice-president Director of sales department Alexey Zolotarev Vice-president for development of land assets Наталья Семикова Вице-президент по исходно-разрешительной документации и земельноимущественным отношениям Denis Ivakin Vice-president - director of the design department Alexey Kozlov Vice-president Director of Moscow Regional Directorate Stanislav Kondratyev Vice-president Director of product department Alexander Lefel Vice-president For regional development Elbrus Gobeev General Director of PIK-Industries 7

8 Development cycle 9-12 months months 3 months Acquisition of the project Planning Construction permit Construction Sales Statement of conformity Ownership registration rights Issuing keys months Balance of all stages of the development cycle (2017) 2,1 th. sqm. 1,8 th. sqm. 2,0 th. sqm. Put on sale Sold Completed 8

9 2. Operational results

10 Real estate contract sales performance 2017 *Source: management accounts Real estate contract sales, тh. sqm. Real estate contract sales, RUB bn 99% 98% Growth doubled following continued organic growth and the integration of major developer companies 96,4 191, , , ,4 33,4 38,9 40,0 47, ,2 57, q2016 1q2017 2q2017 3q2017 4q q2016 1q2017 2q2017 3q2017 4q

11 Cash collections 2017 *Source: management accounts Total cash collections, RUB bn 216,1 114% 101,2 61,7 68,7 216, ,2 71,3 33,3 44,9 49,5 50, q2016 1q2017 2q2017 3q2017 4q

12 Buildings put on sale 2017 *Source: management accounts Number of buildings put on sale Buildings put on sale, th. sqm % For the first time in the history of the Company, more than 2 mln. sqm. Were put on sale

13 Real estate contract sales performance 1Q2018 *Source: management accounts Real estate contract sales, тh. sqm. Real estate contract sales, RUB bn 13% 14% ,9 44,3 1q2017 1q2018 1q2017 1q , , ,9 44,3 1q2017 2q2017 3q2017 4q2017 1q2018 1q2017 2q2017 3q2017 4q2017 1q

14 Cash collections 1Q2018 *Source: management accounts Total cash collections, RUB bn 27% 71,3 57,0 57,0 44,9 49,5 50,4 44,9 1q2017 1q2018 1q2017 2q2017 3q2017 4q2017 1q

15 Buildings put on sale 1Q2018 *Source: management accounts Number of buildings put on sale Buildings put on sale, th. sqm % квартал квартал квартал квартал

16 Sales through mortgages *Source: management accounts, CBRF Share of mortgage sales Q2018 monthly Average mortgage interest rate in Russia, % 48 % 54 % 60 % 59 % 57 % 60 % 58 % 62 % 60 % 63 % 64 % 64 % 65 % 67 % 66 % 12,9 12,5 12,1 12,9 12,9 13,1 12,9 12,8 12,7 12,5 12,4 12,2 11,5 11,8 11,9 11,7 11,4 11,3 11,1 10,9 10,6 10,1 10,0 9,8 9,8 9,9 9,8 January February March April May June July August September October NovemberDecember January February March January 2016 May 2016 September 2016 January 2017 May 2017 September 2017 January 2018 March 2018 Share of mortgage sales Number of mortgage transactions 2017 vs % 39 % 50 % 60 % 66 % vs кв

17 3. Financial results

18 Revenue segments *Source: IFRS Total revenue, RUB mln 206% Development segment, RUB mln 214% Maintenance segment RUB mln Construction segment and others, RUB mln 336% 3%

19 Gross profit *Source: IFRS Total gross profit RUB mln Gross profit for sales accounted for at historical value, RUB mln 58% 55% % % % % Gross profit for sales accounted for at fair value, RUB mln % 19

20 EBITDA and net profit *Source: IFRS Adj. EBITDA excluding cost of land, RUB mln Adj. EBITDA, RUB mln Net profit, RUB mln 117% 41% -83% % %

21 Operational cash flow *Source: IFRS Operational cash flow before income tax and interest paid and before acquisitions and sale of development rights and land plots and prepayment for development rights, RUB mln Operational cash flow before before acquisitions and sale of development rights and land plots and prepayment for development rights, RUB mln Net operational cash flow, RUB mln 40% 15% 35%

22 Cash position and leverage *Source: IFRS Debt management principles Total debt, RUB mln. Cash and equivalents RUB mln. 1. Deleveraging 2. Debt curve extension 83% 3. Increasing the share of unsecured debt in debt structure -8% 3. Optimizing the cost of funding Net debt, RUB mln % Unsecured debt Secured debt

23 4. Project portfolio summary

24 Federal player *Source:: CW Region Unsold ared, th. Sqm Market value, RUB bn Moscow Metropolitan area ,2 Novorossiysk 334 1,7 Saints-Petersburg Ekaterinburg 295 1,4 Yaroslavl 241 1,0 Yaroslavl Rostov-on-Don 213 2,2 Obninsk Moscow Kaluga Perm Ekaterinburg Saints-Petersburg 177 4,0 Kaluga 168 1,4 Obninsk 132 0,9 Rostov-on-Don Perm 4 0,2 Total ,0 Novorossiysk 24

25 22 Key projects in Moscow and Moscow region *Source:: CW Project name Unsold ared, th. Sqm Market value, RUB bn 1 Ilyinskie Luga ,7 2 Salaryevo-park , Vostochnoe Butovo 770 6,2 4 Yurlovo 711 1,7 5 Buninskie Luga ,6 6 Odintsovo , Butovo-park 453 5,0 8 Izmaylovsky les 352 4,9 9 Serednevo 350 5, Zhulebino-park 308 6,2 11 Mytishi, Yaroslavsky 296 1,6 12 Lyubertsi-park 271 4,6 13 Lyuberetsky 245 4, Polyarnaya 236 9,2 15 Green Park ,0 16 Myakinino 223 3, Kuntsevo-park 175 7,4 18 Meschersky les 175 5, Stolichniye polyani 141 1, Kuntsevo ,1 21 Yasenevaya 123 4,6 22 Zhemchizhina Zelenograda 112 2,5 23 Putilkovo 110 3, Mitino-park 109 4,1 25 Lefortovo-park 97 6, Rimskogo-Korsakova ,9 27 Kuskovskaya 72 1,5 28 Izmaylovsky proezd 5a 59 3, Orange park 46 0,4 30 Vlyublino 40 1,3 31 Solntsevo-park 30 1,4 32 Butovo-park 23 0, Chernyahovskogo ,4 34 Annino-park 16 0,5 35 Severny 14 0, Mosfilmovsky 11 2,1 25

26 Land bank dynamics *Source:: CW Unsold area, th sqm Market value, RUB bn ,1 9,8 225,0 12, ,1 58, ,5 10,2 25,7 52,6 95,2 9,3 25, ,8 5,8 20,2 57,8 100,6 5,8 15,1 79,7 152,2 153, Moscow Moscow region Other regions Moscow Moscow region Other regions 26

27 Project portfolio pipeline *Source:: CW, management accounts Land bank breakdown by region, % Moscow Moscow region Other regions % 6 % 12,9 RUB bn 1,5 mln sqm 37 % 26 % 4,2 mln sqm 58,6 RUB bn ,7 mln sqm 153,5 RUB bn 68 % 50 % Unsold area Market value Land bank as of Acquired Sold Plannings change Land bank as of

28 5. Company transformation

29 Investing in operational eficiency and Company transformation Product Management Procurement Sales 1. Introduction of technology for managing the process of creating and developing products aimed at: - Increase the speed of innovation implementation - Cost control 2. Transformation of the design process: - Technology and design speed - Digitalizing control and tracking of design progress 1. Digitalization and creation of a platform for project and construction management at all stages of execution and supply chains 2. Industrialization of construction and investments in «prefabricated" technology to reduce the time and cost of construction and improve the quality level 3. Uberization of the construction management process and reduction of the number of levels of management for construction participants 1. Developing of long-term relations with production plants and contractors 2. Reducing the number of participants in supply chains - excluding intermediaries. Creation of an IT platform for management of the suppliercontractor-developer scheme 3. Consolidation of procurement and supply management for construction companies 4. Investments in the training and effectiveness of building contractors 1. Digitalization of sales and omnichannel interaction with customers 2. Technology of the sales process: eficiency and speed 3. Customer service and interaction at all stages - from the sale of an apartment to giving the keys 4. The introduction of technology NPC and Customer Journey - Introduction of IT-programming technologies 29

30 Appendix

31 1. Market overview

32 Dynamics of interest rates and mortgage market *Source: Forecast of the dynamics of the average weighted interest rate of the secured by DDU, depending on the Central Bank's key rate and inflation Dynamics of monthly change in the mortgage housing loan in the Russian Federation, RUB mln 2,08 2,08 2,10 2,12 2,08 2,09 2,15 2,18 2,18 2,20 2,24 2,26 2,01 1,97 1,78 1,79 1,69 1,67 1,82 1,83 1,84 1,71 1,72 1,73 1,75 1,86 1,83 1,73 1,74 1,85 1,75 1,87 1,78 1,89 1,90 1,80 1,82 1,92 1,77 1,90 1,82 1,94 Jan. 17 Feb. 17 Mar. 17 Apr. 17 May 17 Jun. 17 Jul. 17 Aug. 17 Sep. 17 Oct. 17 Nov. 17 Dec. 17 Янв. 18 Фев. 18 Mortgages issued secured by DDU Martgages issued, total Mortgages issued secured by complete estate 32

33 Dynamics of changes in the key rate and volume of lending *Source: Dynamics of the key rate of the Central Bank and the volume of issued housing loan Dynamics of changes in the weighted average price of apartments in new buildings in the Russian Federation, RUB/ m² 33

34 Dynamics of construction in Russian Federation *Source: Dynamics of completions of apartment buildings,accumulated total in the RF, mln. sqm Dynamics of completions of apartment buildings, monthly in the RF, mln. sqm 17,4 18,9 48,4 45,9 28,3 27,1 9,3 8,3 4,9 17,7 16,5 5,5 4,3 5,0 4,7 3,9 5,2 5,4 4,9 4,7 4,2 4,4 4,3 6,8 6,4 5,7 5,4 5,6 6,3 6,7 6,7 6,1 6,9 7,3 7,1 1 quarter 6 months 9 months FY January February March April May June July August September October November December Dynamics of issued mortgage under DDU, accumulated in the RF, mln. sqm Dynamics of issued mortgage under DDU, monthly in the RF, mln. sqm quarter 6 months 9 months FY Январь Февраль Март Апрель Май Июнь Июль Август Сентябрь Октябрь Ноябрь Декабрь

35 Renovation Background Next steps PIK participation г. Moscow's budget for 2017 was increased by 96.5 billion rubles to carry out preparatory activities: the formation of land plots, the preparation of additional sites, the implementation of predesign and design work г. The Moscow City Law "On Additional Guarantees of Housing and Property Rights of Physical and Legal Persons in the Implementation of Renovation of Housing in Moscow" г. Federal Law No. 141-FZ was adopted to regulate the renovation of the housing stock in the city of Moscow г. the Resolution of the Government of Moscow No PP "On the program of renovation of the housing stock in Moscow" was adopted 1Q tenders for the design of the first stage of renovation in the amount of about 1 million m² As of April 15, 2018, tenders were held for the design of 1.4 million square meters. m. 4Q start of the construction of the 1st stage of renovation projects 2 half half 2021 года completion of houses of the 1 wave of renovation and implementation of the 1st stage of resettlement 1. Development and construction competencies, involvement of the management team of PIK Group 2.Construction and "design" capacities DSC and the Construction Industry (including monolithic technologies) of PIK Group are named by the city as eligible suppliers PIK won 6 contests for the design of about 106 thousand m² 35

36 New law 218-FZ: PIK Group position Land bank reserve High speed of construction Access to unsecured financing As a result of major acquisitions of assets in 2016, PIK has a long-term reserve of a land bank for which construction permits have already been received or can be received by the end of June 2018, which will allow the business model to be fully retained for these projects. PIK Group has its own production facilities and advanced construction technologies, which ensures a high degree of industrialization of production and, therefore, the shortest possible time for completing houses. At the moment, the average term for the construction of houses is years, but taking into account the continuous optimization of all stages of business processes, the target construction period can be reduced to less than 1.5 years. Levels of credit ratings of PIK Group allow to attract unsecured debt financing to the level of a holding company. The last issue of PIK Group's bonds in the amount of 7 billion rubles was carried out after the new regulation came into force, the maturity is 10 years, with the Issuer's right to repay the issue ahead of schedule in full or in part during the circulation period. Assignment of the ACRA rating at the level of BBB + and the revision of the negative outlook of the S & P to a stable one were also made taking into account the new regulatory field. PIK organizational structure Large-scale positive experience of risk assessment of projects by banks The organizational structure of the PIK Group includes over 250 legal entities, new projects are implemented on the balance of individual SPVs. In this regard, the new regulation will not lead to a significant change in the group's tax burden. PIK Group also has long-term partnerships with Russian banks, both in terms of corporate financing and in the field of mortgage lending. Banks that provide mortgage financing during the construction phase actually assume the risk of completion of construction and impairment of collateral. At the same time, the percentage of penetration of mortgages into sales of PIK Group is currently much higher than the average market, in recent months has exceeded 60%. Mortgage lending is present at all sites, and accreditation of new projects of PIK Group is made by the majority of partner banks in an automatic mode. In 2017, at the expense of loan funds from partner banks, sales of PIK Group for more than 87 billion rubles were financed. 36

37 2. IFRS accounts

38 Consolidated statement of financial position ASSETS 31 December December 2016 (restated) 31 December 2017 EQUITY AND LIABILITIES Non-current assets Property, plans and equipment Intangible assets Investment property Equity accounted investees Other investments Trade and other receivables Deferred tax assets Total non-current assets Current assets Inventories Other investments Income tax receivables Trade and other receivables Cash and cash equivalents Total current assets Total assets Equity Share capital Additional paid-in capital (8 470) (8 470) (8 470) Retained earnings (886) Total equity attributed to owners of the Company Non-controlling interests Total equity Non-current liabilities Loans and borrowings Financial instruments measured at fair value through profit and loss Trade and other payables Deferred tax liabilities Total non-current liabilities Current liabilities Loans and borrowings Trade and other payables Provisions Income tax payable Total current liabilities Total liabilities Total equity and liabilities

39 Debt Loans and borrowings, current Loans and borrowings, non-current Total debt Cash and cash equivalents (17 022) (24 812) (45 452) Net debt (3 858) Total debt/adj. EBITDA 1,0х 5,9х 3,9х Net debt/adj. EBITDA -0,3х 3,7х 1,0х Adj. EBITDA/interest paid 3,9х 8,1х 1,6х 39

40 EBITDA (restated) 2017 Profit for the period Plus: Depreciation of PP&E and amortization of intangible assets Plus: Interest expense Less: Interest income (1 338) (2 305) (3 729) Plus: Income tax expense EBITDA Impairment loss/ (reversal of impairment loss), net 630 (2 874) Change in fair value of investment property - (4 629) (967) Gain on bargain purchase of subsidiaries - (5 942) - Impairment loss on financial assets, net Write-off of accounts payable (225) (156) (51) Foreign exchange (gain)/loss, net (4 015) 893 (556) Loss on disposal of PP&E Loss on disposal of PP&E and other assets - (50) (161) Penalties and fines, including reversals, net Write-off of other materials Other financial income - (2) (176) Gain from change in long-term financial liability - - (1 050) Adjusted EBITDA Cost of land plots included in the cost of sales Cost of projects accounted for at fair value, included in the cost of sales Adjusted EBITDA excluding cost of land

41 Operational cash flow Adjusted profit for the year Changes in: Inventories before acquisitions and sale of development rights (3 754) (13 279) (481) (2 232) (14 531) Trade and other receivables excluding prepayments for development rights and land plots Trade and other payables Provisions for cost to complete (2 101) (737) Cash flow form operations before income taxes and interest paid and before acquisitions and sale of development rights and prepayments for development rights and land plots Income taxes paid (1 793) (2 526) (4 559) Interest paid (3 489) (1 373) (9 848) Cash flow form operations before acquisitions and sale of development rights and prepayments for development rights and land plots (5 178) (16 221) (14 732) Acquisition, sale and prepayments for development rights Net cash from operating activities

42 Consolidated statement of profit and loss Revenue from sale of real estate objects accounted for at historical cost Revenue from sale of real estate objects acquired through business combinations and recognized at fair value at initial recognition Other revenue Total revenue Cost of sales of real estate objects accounted for at historical cost (33 495) (36 791) (68 084) Cost of sales of real estate objects acquired through business combinations and recognized at fair value at initial recognition - - (73 888) Cost of other sales (26 220) (3 023) (4 769) Cost of sales (33 495) (39 814) ( ) Gross profit of sales of real estate objects accounted for at historical cost Gross profit of sales of real estate objects acquired through business combinations and recognized at fair value at initial recognition Gross profit of other sales Gross profit Gain on disposal of subsidiaries and development rights, net Distribution expenses (1 600) (2 910) (5 670) Administrative expenses (3 645) (4 444) (8 466) Decrease in fair value of investment property Impairment (loss)/ gain, net (630) (2 538) Gain on bargain purchase of subsidiaries Other expenses, net (285) (552) (3 695) Results from operating activities Finance income Finance costs (3 949) (4 133) (11 679) (Loss)/profit from financial activities (1 670) (6 117) Share of loss of equity accounted investees, net of income tax 48 (18) (58) Profit before income tax Income tax expense (1 833) (2 703) (423) Profit and total comprehensive income for the year for continued operations Profit and total comprehensive income for the year for discontinued operations (excluding income tax expense) - (57) 600 Profit and total comprehensive income for the year

43 3. Key projects

44 Salaryevo-park Residential area "Salaryevo Park" is located in the south-west of Moscow, just 500 meters from the "Salaryevo" metro station. The large-scale project will be built in several stages and will include not only residential buildings, but all necessary infrastructure: kindergartens, schools, clinics and parking lots. The green courtyard-parks, free from cars, will be equipped with children's and sports grounds, as well as places for rest. In walking distance from the district is the Ulyanovsk forestry, and in five minutes drive are large shopping centers. UNSOLD AREA, THOUSAND М 2 MARKET VALUE, RUB BILLION STATUS ,2 On sale 44

45 Green Park Residential area Green Park is located in a picturesque area near the metro stations "Otradnoe" and "Botanical Garden". The district's own infrastructure includes 3 kindergartens, a school, a clinic and parking lots. The ground floors of the houses will accommodate shops and service companies. Nearby there are hypermarkets "Auchan", "Carousel", "Golden Babylon". In a 10-minute walk are the Sviblovo manor and the Main Botanical Garden of the Russian Academy of Sciences. The cozy courtyards of the district are free from cars and completely equipped for the people. Inside is a wide promenade, leading to the central square with a rest area. All this will allow you to spend more time in the fresh air and enjoy nature. Modern architecture and carefully thought out details will make your life here comfortable and pleasant. UNSOLD AREA, THOUSAND М 2 MARKET VALUE, RUB BILLION STATUS On sale 45

46 Meschersky Les The residential complex "Meshchersky Les» is a return to nature. We allocated a whole block in a picturesque area in the west of Moscow between the Borovskoye highway and the well-groomed Meshchersky park. The complex consists of 6 blocks with a height of floors with green courtyards. Facades of houses are with bright ceramic tiles. The picturesque courtyards of the residential complex are free of cars and completely given to people. A wide promenade will connect them. All this will allow you to spend more time in the fresh air and enjoy nature every day. And modern architecture and carefully thought-out details will make your life here comfortable and pleasant. The complex will be provided with its own infrastructure. Here there are 2 schools, 2 kindergartens and several land parking lots. The ground floors will hold shops, cafes and other services. UNSOLD AREA, THOUSAND М 2 MARKET VALUE, RUB BILLION STATUS 175 5,7 On sale 46

47 Odintsovo-1 A new comfort class residential area "Odintsovo-1" is located in the southern part of the city of Odintsovo, Moscow region, 10 km from MKAD along the Minsk highway. The large-scale concept of the district development provides for the creation of a harmonious urban environment, perfectly adapted for work and leisure. The key advantages of the district are: The area is connected with Moscow by a number of bus routes from the metro station "Molodezhnaya", «Park Pobedy" and «Yugo-Zapadnaya". In a 10-minute walk is the Vnukovo train platform. By train in 30 minutes you can get to the Kievskaya railway station. In a 10-minute walk from the district is a large Ulyanovsk forest park. Also nearby are Podushkinsky, Meshchersky Forest Parks and Bakovoye Forestry. In the area itself will be realized the ecological concept of "yard without cars", recreational boulevards and a quay along the pond are arranged. UNSOLD AREA, THOUSAND М 2 MARKET VALUE, RUB BILLION STATUS 555 3,7 On sale 47

48 Buninskie Luga Residential area "Buninskie Luga" is located in New Moscow near the "Buninskaya Alleya" metro station. The development of the project "Buninskie Luga" includes the construction of schools, kindergartens, clinics, shopping centers and parking lots. The school and kindergarten have already been put into operation. On the ground floors of the houses are shops and service enterprises. Near the residential area are MEGA shopping mall, hypermarkets Auchan, OBI, IKEA store. UNSOLD AREA, THOUSAND М2 MARKET VALUE, RUB BILLION STATUS ,6 On sale 48

49 Mitino Park The residential complex "Mitino Park" is located in the Krasnogorsk district of the Moscow region, 10 minutes walk from the metro station "Mitino", close to the north-west of Moscow, the Mitino district. The road to the center of Moscow takes no more than 30 minutes. The complex includes a school, a kindergarten and an underground parking. The surrounding area has everything necessary for a comfortable life. In walking distance are a kindergarten and a school. In close proximity are shopping and entertainment centers "Crocus City Mall", "Your Home", "Wei-Park", "Mega- Khimki". For families who prefer active recreation, the slope of the ski complex "Snezkom" is open all year round. A 10-minute walk from the residential complex is the Mitino Landscape Park. The territory of the park is characterized by a diverse layout: high hills are replaced by spacious valleys. UNSOLD AREA, THOUSAND М 2 MARKET VALUE, RUB BILLION STATUS 109 4,1 On sale 49