REG - Etalon Group PLC - Etalon Assets Reach Record Valuation of RUB288 BLN

EtalonAnnouncement

16/03/2023 07:30

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RNS Number : 1373T  Etalon Group PLC  16 March 2023

16 March 2023

 

Etalon Group Assets Reach Record Valuation of RUB 288 BLN

 

ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest
and longest-established development and construction companies, announces the
results of its asset valuation as of 31 December 2022, conducted by Nikoliers.

 

The total value of Etalon Group's assets has reached RUB 288 billion (up 7%
year-on-year), which is equivalent to USD 10.70 per global depositary receipt
(GDR) at the Bank of Russia's exchange rate as of 31 December 2022.

 

The total NSA of Etalon Group's project portfolio increased from 6.0 mln sqm
as of the end of 2021 to 6.4 mln sqm as of the end of 2022, and the number of
regions where the Company operates increased from seven to eight, thanks in
part to the acquisition of YIT Russia. Nikoliers determined the market value
of the real estate at 38 ongoing projects as well as completed residential and
commercial properties to be RUB 272 billion, 6% higher than the value of the
Company's portfolio as of 31 December 2021.

 

The asset valuation also encompasses Etalon Group's integrated construction
and maintenance division, which includes the Company's own general contractors
and subcontractors, service business as well as IT companies and production
enterprises, such as a modular production facility, the first phase of which
is expected to be delivered in 2023. Since the beginning of the year, the
market value of the construction and maintenance division has increased by 14%
to RUB 16 billion.

 

Commenting on the asset valuation, Etalon Group CEO Gennadiy Shcherbina said:

 

"Since 2021, one of our main strategic development goals has been the
expansion and qualitative improvement of our project portfolio. In 2021, we
more than doubled the size of our portfolio thanks to the effective
implementation of our acquisitions programme and our expansion into new
regional markets. In 2022, despite a challenging market environment, we
continued to develop our land bank, expanding it to 6.4 mln sqm and increasing
the value of our assets to a record RUB 288 billion, including through the
lucrative acquisition of YIT Russia as well as the launch of new projects in
regions such as Omsk, Ekaterinburg, Tyumen and Kazan.

 

"In the context of market consolidation and the expansion of major players
into regional markets, we continue to work to make our product more
affordable. To this end, we have largely been taking a standardised approach
to design, incorporating digital products and developing state-of-the-art
technologies for industrial housing construction: prefabrication and modular
technology. We are building our own production facilities and have already
begun assembling test modules, which will increase the value of our production
assets even further, beyond the record RUB 16 billion achieved in 2022. We are
confident that new business streams, such as IT and prefabrication, will not
only give us competitive advantages but will also lay the groundwork so that
we can compete in new markets."

 

This and other announcements are available on the Etalon Group website:
https://www.etalongroup.com/investor-relations/investor-news/
(https://www.etalongroup.com/ru/investoram/novosti/)

 

Contact information

 

Etalon Group

IR Team

T: +44 (0) 20 8123 1328

E: ir@etalongroup.com (mailto:ir@etalongroup.com)

 

EM

E: etalon@em-comms.com (mailto:etalon@em-comms.com)

 

 

About Etalon Group

Founded in 1987, Etalon Group is one of Russia's largest development and
construction companies. The Company focuses on middle class residential real
estate in the Moscow and St Petersburg metropolitan areas. In 2021, the
Company began a regional expansion programme and has already launched new
projects in Omsk, the Novosibirsk region, Ekaterinburg, Tyumen and Kazan. With
a 35-year history, Etalon Group has one of the longest and most successful
track records in the Russian real estate industry. Since its foundation,
Etalon Group has delivered 8.6 mln sqm of real estate.

Thanks to its integrated business model, Etalon Group is able to create added
value for customers and shareholders at every stage of development, from land
plot analysis and acquisition to the operation and maintenance of existing
properties. Etalon Group employs over 4,600 people, and its nationwide sales
and marketing network covers 59 Russian cities.

Etalon Group's assets comprise 38 projects at the design and construction
stages, unsold inventory at completed residential complexes and commercial
properties, with total unsold NSA of 6.4 mln sqm, as well as a construction
and maintenance division. According to Nikoliers, the value of Etalon Group
assets as of 31 December 2022 was RUB 288 billion.

In 2022, Etalon Group's new contract sales totalled 292 ths sqm, or RUB 58.7
billion, not including accumulated new contract sales at YIT Russia as of its
acquisition.

The Company's revenue in 2021 amounted to RUB 87.1 billion, with EBITDA of RUB
17.9 billion.

Etalon Group's GDRs have been listed on the Main Market of the London Stock
Exchange since 20 April 2011 and in the Level 1 quotation list of Moscow
Exchange since 31 January 2020 under the ticker ETLN.

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