Etalon : 2023 Financial Results

MARCH 2024

FY 2023

FINANCIAL RESULTS

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CONTENTS

1	FINANCIAL RESULTS	4
2	APPENDIX	13

KEY RESULTS

EBITDA

18.1

RUB BLN

+10% year-on-year

EBITDA was up by 10% year-on-year, and Pre-PPA EBITDA increased by 3% to RUB 19.4 bln supported by increased operational efficiency

FINANCIAL RESULTS

2023 REVENUE

STRONG SALES IN 2023 SUPPORTED DOUBLE-DIGIT GROWTH IN FY 2023 REVENUE AND WILL BACK REVENUE GROWTH IN 2024

• • Residential development revenue at regional projects increased 3.4 times year-on-year due to speedy regional expansion

Source: IFRS financial statements, y-o-y change was calculated without rounding.

PRE-PPA GROSS PROFIT

ETALON GROUP MAINTAINS HEALTHY PRE-PPA GROSS MARGINS AT THE TARGET LEVEL OF 35%

PRE-PPA(1) RESIDENTIAL DEVELOPMENT GROSS PROFIT

RUB mln

MOSCOW

ST PETERSBURG

OTHER REGIONS

+3%

-7%

x3

13 377

13 790

12 761

11 894

4 351

1 474 43%

2022

2023

2022

2023

2022

2023

Pre-PPA gross profit

Pre-PPA gross profit

Pre-PPA gross profit

Pre-PPA gross profit margin

Pre-PPA gross profit margin

Pre-PPA gross profit margin

• • Consolidated Pre-PPA gross margin remains at the target level of 35%, while Pre-PPA gross margin in the residential development segment was as high as 39%. Gross margin in the regions exceeds 37%

• • PPA in adjusted gross profit in 2023 decreased to RUB 1.3 bln against RUB 2.5 bln in 2022 due to the gradual reduction of the share of Leader-Invest projects in our salesportfolio, which affected the dynamics of Pre-PPA gross profit

Source: IFRS financial statements, y-o-y change was calculated without rounding. (1) Purchase price allocation.

PRE-PPA(1) GROSS PROFIT,

RUB mln

CONSOLIDATED

RESIDENTIAL DEVELOPMENT

+2% 31 261

+9%

30 514

30 035

27 612

40%

38%

39%

35%

2022

2023

2022

2023

Pre-PPA gross profit

Pre-PPA gross profit

Pre-PPA gross profit margin

Pre-PPA gross profit margin

38%

34%

42%

45%

37%

GROSS PROFIT

STRICT COST CONTROL TRANSLATED INTO STRONG MARGINS AND DOUBLE-DIGIT GROWTH IN RESIDENTIAL DEVELOPMENT GROSS PORFIT

Gross profit

GROSS PROFIT

RUB mln

CONSOLIDATED

+6%

29 971

28 203

35%

34%

2022

Gross profit

2023

Gross profit margin

RESIDENTIAL DEVELOPMENT

+12%

25 596

37%

2022

Gross profit margin

Source: IFRS financial statements, y-o-y change was calculated without rounding.

28 745

37%

2023

Gross profit

RESIDENTIAL DEVELOPMENT GROSS PROFIT

RUB mln

MOSCOW

+10%

11 361

12 500

32%

31%

2022

Gross profit

2023

Gross profit margin

ST PETERSBURG

-7%

12 761

11 894

42%

45%

2022

Gross profit

2023

Gross profit margin

OTHER REGIONS

x3

4 351

1 474 43%

37%

2022

2023

Gross profit margin

OVERHEAD COSTS

SUSTAINABLE BUSINESS GROWTH IS SUPPORTED BY MODERATE INCREASE IN OVERALL SG&A COSTS, WHILE OVERHEAD COSTS AS % OF REVENUE IS DECREASING

GENERAL AND ADMINISTRATIVE EXPENSES, RUB mln

SELLING EXPENSES

RUB mln

+3%

+3%

7 259

7 475

5 001

5 158

-0.6 p.p.

-0.4 p.p.

2022

2023

2022

2023

G&A

G&A as % of revenue

Selling expenses

Selling expenses as % of revenue

• • Overhead costs as % of revenue decreased to 14.2% from 15.2% a year earlier

• • Overhead costs are at a level that ensures business growth in the regions by several times, and the share of SG&A in revenue will decrease along with targeted business scaling

Source: IFRS financial statements, y-o-y change was calculated without rounding

9.0%

8.4%

6.2%

5.8%

EBITDA & NET INCOME

DECREASING OVERHEAD COSTS AS % OF REVENUE SUPPORT UPWARD EBITDA DYNAMICS, WHILE CAPITAL INVESTMENTS IN SPEEDED-UP BUSINESS SCALING PUT TEMPORARY PRESSURE ON NET INCOME

PRE-PPA(1) EBITDA

EBITDA

PRE-PPA(1) NET INCOME

NET INCOME

RUB mln

RUB mln

RUB mln

RUB mln

+3%

+10%

18 795

19 425

18 135

16 484

13,001

20.5%

20.4%

12 038

2 793

Gain from bargain purchase of YIT Russia

2022

2023

2022

2023

(2 338)

(3 370)

Pre-PPA EBITDAPre-PPA EBITDA margin

EBITDAEBITDA margin

2022

2023

2022

2023

• • Temporary pressure on net income is associated with the investment phase amid high market rates. Substantial business expansion and efficiency with lower key rate in the medium term will ensure high profitability

Source: IFRS financial statements, y-o-y change was calculated without rounding.

(1) Purchase price allocation.

23%

22%