Slide 1: Investor Presentation
as Investor Presentation 20 LSR Group YEARS
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to the bound by the following limitations: This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an o
Slide 3: 1. Operating and financial results
1. Operating and financial results 3
Slide 4: 2012 Results Highlight
2012 Results Highlight Financial Highlight e Revenue increased by 18%, up to RUB 61,122m EBITDA increased by 32%, up to RUB 13,392m EBITDA margin increased from 20% to 22% Total comprehensive income increased by 102%, up to RUB 4,914m Net debt/EBITDA ratio decreased from 3.33 to 2.65 Operational Hig
Slide 5: Key financials
Key financials Sales (RUB m) EBITDA (RUB m) and EBITDA margin (%) +18% +32% 61,122 13,392 51,910 7 10,135 2011 2012 2011 2012 2012 sales revenue and EBITDA breakdown? ™ Building materials & Aggregates * Revenue Real Estate Development EBITDA ™ Construction & construction services Note: 1)Before inte
Slide 6: Real estate development
LSR Group Real estate development Revenue’ and New contract sales (RUB m) EBITDA‘ (RUB m) and EBITDA margin (%) 443% 424% 6,098 436% 37,192 4936 25,260 27% 24% 2011 2012 —_ 2011 2012 _ ll New contract sales ® Revenue Completions(‘000 m2) _ Transfers (‘000 m2) * New contract sales in 2012 saaaye 40%
Slide 7: Real estate development by region
Revenue and New contract sales (RUB m) i New contract sales lM Revenue EBITDA (RUB m) and EBITDA margin (%) Real estate development St. Petersburg Moscow Urals Elite’ Mass-Market +137% 4172% +25% 437% +H9% S47. 11,200 16390 6.908 201 2012 vou 2012 2011 Dow rot 2012 +246% +185% 465 3,936 3,020 329 52
Slide 8: New contract sales in mass market and elite segments
100 New contract sales in mass market segment (excluding governmental contracts}, ‘000 m2 2012/2011: +12% 102013/1Q2012: +34% 208 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2012 2013 New contract sales in elite segment, ‘000 m2 2012/2011: +42% 1Q2013/1Q2012: -40% 1Q. 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 9: New contract sales in Moscow and Urals
2012/2011: +147% 102013/102012: +7% 12 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2012 2013 New contract sales in Urals, ‘000 m2 72 ——_>. 2012/2011: +14% 102013/1Q2012: +4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 2012 2013
Slide 10: New project launches 2013
LSR Group New project launches 2013 Kalina-Park 347 th m2 St. Petersburg Europecity Morskie Bashni 103 th m2 117 th m? 62 thm? Donskoiy Olymp 81th m? 2013 total new supply -— 1.2 million m2 Yekaterinburg Berezovaya Roshcha Michurinsky 63 th m2 231th m? m 10
Slide 11: Construction
LSR Group Construction EBITDA‘ (RUB m) and Revenue’ (RUB m) Transferred to in (9 +36% EBITDA margin (%) customers, ‘000 m2 aaear 428% 425% 2,661 ms s79 2011 2012 2011 2012 2011 2012 * RUB 2.8 bn modernisation programme of our prefab factory in St. Petersburg completed. Capacity increased up to 500 t
Slide 12: Construction by region
Construction Revenue (RUB m) EBITDA (RUB m) and EBITDA margin (%) St. Petersburg Moscow Urals 48% A% 446% 15375 3,725 3,567 2,901 10,363 [ 1,993 2011 2012 2011 2012 2011 2012 416% +10% 475, 277 1,909 433 1,642 16% 12% 12% 13% 10% 7 2011 2012 2011 2012 2011 2012 Notes: Construction in st. Petersburg
Slide 13: Building materials revenue and EBITDA
Revenue’ (RUB m) +14% 20,703 18,195 2011 2012 EBITDA‘ (RUB m) and EBITDA margin (%) 430% 4787 3,683 2011 2012 Note: 1) Before inter-group eliminations, unallocated amountsand other operations Cee visu wna al ete 2012 - 1st year of cement plant operation. 1.2 m tonnes of cement sold. 19% market share
Slide 14: New Cement Plant key technical data
LSR Group Key technical data New Cement Plant completes the integrated chain of Production capacity 1.86m tons p.a. Building Materials 95m tons of limestone, Upstream Downstream Customers Confirmed reserves 17m tons of cement clay Technology Dry Stage of the project Launched in 2011 Supplier of equi
Slide 15: Brick plant key technical data
Group Key technical data Brick line 120m nf & special ceramic Productioncapacity — goods line 25-40m nf (depending on the type of brick produced) Constructionperiod 2007-2013 Stage ofthe project Launched in 2012 Supplier of Clay preparation line — Handle equipment Line 120m nf — Lingl Line 25-40m nf
Slide 16: Building materials: Aggregates and Ready-Mix Concrete
Building materials: Aggregates and Ready-Mix Concrete Crushed Granite Sand Ready-Mix Concrete St. Petersburg Moscow +10% 3% 432% +4 we 2,687 3,097 2,993 1819 3,876 2,448 1,378 2,695 Revenue (RUB m) 7 2011 2012 2011 2012 2011 2012 2011 2012 +85% 1,258 ago 1429 1,430 2 EBITDA (RUB m) and 679 “12% EBIT
Slide 17: Building materials sales volumes: Aggregates and Ready-Mix Concrete
Building materials sales volumes: Aggregates and Ready-Mix Concrete Crushed granite, million m3 2012/2011: +18% Sand, million m3 2012/2011: - 102013/102012: -7% 1Q2013/1Q2012: -34% 1Q 2Q_ 3Q 4Q 1Q 2Q 3a 4Q 1Q 2Q 3q 40 10 1Q 20 3a 4a iQ 2a 3Q 40 1Q 20 30 40 1Q 2010 2011 2012 2013 2010 2011 2012 2013
Slide 18: Reinforced Concrete and Cement
Reinforced Concrete Cement 5% +14% 5,186 4929 2,589 2,279 Revenue (RUB m) [ 2011 2012 2011 2012 705 653 -63% EBITDA (RUB m) and 261 EBITDA margin (%) 14% 5% 2 25% 1 2011 2012 2011 2012 18
Slide 19: Sales volumes: Reinforced Concrete and Cement
Building materials sales volumes: Reinforced Concrete and Cement Reinforced concrete, ‘000 m3. 369 102 197 402 2012/2011: +6% 1Q2013/102012: -10% 102013/1Q2012: +22% 1Q 2Q_ 3Q 4Q 1Q 20. 3Q 4Q 1Q 20. 3Q 4Q 2010 2011 2012 Cement, ‘000 tonnes 4,208 500 465 400 297 318 300 200 108 128 ‘ Ei o+ 1Q 2Q_ 3Q
Slide 20: Building materials: Bricks and Aerated Concrete
Building materials: Bricks and Aerated Concrete Bricks Aerated Concrete St. Petersburg Moscow -2% 472% +36% 1398 1374 190 oats Revenue (RUB m) 110 1,768 2011 2012 2011 2012 2011 2012 +204% 497% 372 6e1 EBITDA (RUB m) and EBITDA margin (%) v2 " 9% 27% 2011 2012 2011 2012 7 20
Slide 21: Sales volumes: Bricks and Aerated Concrete
Bricks St. Petersburg, million nf Building materials sales volumes: Bricks and Aerated Concrete 2012/2011: -4% Bricks Moscow, million nf 1Q2013/1Q2012: +312% 1Q2013/1Q2012: +10% 172 al 163 A A, A 60 a1 57 52 83 49 50 38 36 37 40 6 29 28 30 ° L_ 0 12 2Q 30 4Q 1Q 22 3 42 1a 20 3a 4Q 810 12 2a 3a 40 10
Slide 22: Debt maturity profile as of March 2013
Debt maturity profile as of 31 March 2013 Total debt: RUB 40,808m* 14,539 5,508 { \ 5,721 4,172 3,907 3,158 1,621 729 a = 6,960 RUBm RUBm 1,190 3,158 306 13,694 3,327 4,876 6,114 2,639 35,305 87% USD m 14 (¢) 14 27 27 27 27 41 177 13% Total 1,621 3,158 729 14,539 4,172 5,721 6,960 3,907 40,808 100%
Slide 23: Gross debt by source as of March 2013
LSR Group Gross debt by source as of 31 March 2013 RUB 40,808 RUB 39,511m ygosm RUB 38,662m 19% VEB 19% VEB 24% VEB ) 9.04% p.a. ———— > Intere ) 8.99% p.a. Intere: Interest 8.65% p.a. a7 16% Rosselkhozbank 17% Rosselkhozbank 16% Rosselkhozbank 9,958 26% Rouble bonds : | 14,197 36% Rouble bonds 13,55
Slide 24: 2. Market update
2. Market update 24
Slide 25: Sales of new apartments
‘000 m2 Sales of new apartments Sales of new apartments in St. Petersburg 1030 690 600 620 620 600 600 547 486 lla 448 434 TW cane 20/08 30/08 ‘aloe 10/09 20/09 30/09 40/09 10/10 20/10 30/10 4Q/10 10/11 20/11 3E/AL fos 10/12 2/12 30/12 4Q/l2_— 10/13 _—— YT 2,520 1,459 2,064 2,054 2,510 42% +41% -0.5
Slide 26: Supply of new apartments
“900 m2 Supply of new apartments Supply of new apartments in St. Petersburg 7s7 7 752 37 690 4 647 604 1 551 520 492 466 455 415 430 421 383 287 237 209 226 145 | | 153 | 1ofoa 20/08 30/08 4QfOR 10/09 2Ef09_3QJD9AQYO9 1/10. 2QALO.-FO/IO.AG/IO._—«1G/I1_—-2A/L1-3Q/11. 4/11. 1/12 2E/l2_—-3Q/I2_ AGI. 10
Slide 27: New residential real estate price development
New residential real estate price development in St. Petersburg, Moscow and Yekaterinburg 250 - St. Petersburg 234 ——Elite —— Mass-Market 200 ~ 150 - 100 ~ _76_ 85 ——_ 87 50 - 30 26 8 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012. Apr 2013 Source: SPh Realty Moscow! Yekaterinburg 180 6s 1
Slide 28: Mortgage lending
Mortgage lending Mortgage lending in Russia 341.0 so | (=e number of loans, '000 275.5 bn RUB 264.3 250.5, 250 206.6 81.1 200 - 150 215 244 169 180 | | [ | A 1 1O/L0 20/19 3O/L0 40/10 1O/11 2/11 BO/11 4/11 10/12 2O/12 30/12 4Q/12 10/13 Source: CBR Mortgage lending in St. Petersburg 18.0 — 16.3 (mmm
Slide 29: Building materials market volumes
Building materials market volumes in St. Petersburg and the Leningrad region Crushed granite, ‘000 m3 Sand, ‘000 m3 Ready-mix concrete, ‘000 m3 5,650 12,205 26,200 4,900 4,900 410,900 seo 15,000 14,909 15,600 16,800 3300 2008 2009 201020112012 2008 2009-2010 2011-2012 2008 2009 201020112012 Reinforc
Slide 30: Agenda
Slide 31: Real Estate and Construction
Real Estate and Construction @ Residential Real Estate Development market leader in St. Petersburg with a growing presence in Moscow/the Moscow region and Urals ™ ~~ Focus on Mass-Market and Elite segments of residential real estate | 3 pre-fabricated housing factories Building Materials 2007 2008 2
Slide 32: Development portfolio
LSR Ise. Development LSR Group is one of the leading Russian real estate companies. The portfolio of real estate development projects of LSR Group includes 8.6 million square metres of net sellable area and RUB 116.2 billion of market value of residential and commercial properties.* St. Petersburg M
Slide 33: Real estate market positions in St. Petersburg in 2012
Real estate market positions in St. Petersburg in 2012 Housing Under Construction Elite Real Estate Mass-Market Real Estate* Prefab Construction* Noa Ned Nod Housing Completions Elite Real Estate Mass-Market Real Estate * Prefab Construction* Ned 4 Ned © J 8 Source: SPb Realty Note: "Excluding socia
Slide 34: Real estate portfolio by region
Real estate portfolio by region Breakdown of portfolio by region (Net Sellable Area) Yekaterinburg; 8% Moscow; 13% St Petersburg; 79% LSR Group Breakdown of portfolio by region (Market Value) Yekaterinburg: 4% Moscow; 22% St Petersburg; P3% St. Petersburg and Leningrad region 6,847 Moscowand Moscow
Slide 35: LSR real estate projects pipeline - St. Petersburg
oN anewne i LSR Group LSR real estate projects pipeline — St. Petersburg Smolny Park Nevsky, 1 Paradny Quarter Radishcheva, 39 Morskoy Venice Kovensky Dom na Dvoryanskoy EuropeCity Morskie Bashni Smolenskaya Yuzhnaya Aquatoria Novaya Okhta Ruch’! Avrora Vostok Sofiya Kalina-Park VIVA Kvartet Shuvalo
Slide 36: Available for sale
Available for sale Future projects Completed Projects Ne
Slide 37: <©) Cc oO S e} oO wn ie) = I fo) s © =
<©) Cc oO S e} oO wn ie) = I fo) s © = jos La) ~~ 1S) g ie) = tok fed) us) oO ams) ”n 0) i fe) — a Y) —! bole) —_ = 2 S ‘S ie) Pa © a wv = 5 2 3 J 37
Slide 38: LSR project map
LSR project map Moscow and Moscow Region Yekaterinburg @ Available for sale @ Future projects @ Completed projects 38
Slide 39: Real estate portfolio by segment
LSR Group Real estate portfolio by segment Breakdown of portfolio by segment Breakdown of portfolio by segment (Net Sellable Area) (Market Value) Held for future development; Operating offices; 15% Held for future 3% development 48% Offices; 5% Mass-market 46% Mass-market; 43% Business class; 14% Op
Slide 40: Real estate portfolio by stage of development
LSR 4 Group Real estate portfolio by stage of development Breakdown of portfolio by stage of development Breakdown of portfolio by stage of development (Net Sellable Area) (Market Value) Completed; Operating offices; 0.2% Operating offices; 0.4% Construction; 15% Completed; __2% 6% Concept Developme
Slide 41: Construction
Construction Prefab housing construction tersburg Capacity: 500,000 m2 +largest pre-fabricated housing factory in the North-West of Russia; full cycle of construction of residential buildings of 3 to 25 storeys high ona “turnkey” basis; «combines factory itself, design departmentand construction div
Slide 42: Building Materials
LSR Group Building Materials LSR Group is Ne 1 In Russia and Ukraine — in production of aerated concrete In Russia — in production of ready-mix concrete and extraction of sand In Northwest Russia — in production of reinforced concrete and extraction of crushed granite St. Petersburg Moscow Ukraine R
Slide 43: Building materials market positions
Building materials market positions in St. Petersburg and the Leningrad region in 2012 Building Materials Reinforced Concrete Ready-Mix Concrete Bricks Aerated Concrete Cement Ned Ned New Ned Ne3 Aggregates Sand Crushed Granite ‘Source: Reshenie Note: Volume terms 43
Slide 44: Group structure
Group structure LSR Group Real Estate Building Materials LSR. Real Estate - North-West. LSR. Construction - North-West LSR. Aggregates and Ready-mix Concrete - North-West LSR. Real Estate - Moscow LSR. Construction - Moscow LSR. Ready-mix concrete - Moscow LSR. Real Estate - LSR. Construction - LSR.
Slide 45: Robust corporate governance - Board of Directors
LSR Group Robust corporate governance — Board of Directors Andrey Molchanov Chairman i 2 ‘ 5 = as] 2 3 2 y = 3 Dmitri Gontcharov Elena Tumanova Mikhail Romanov Olga Sheikina 4 a Managing Director of LSR coo ‘Advisor to the board Head of LSR Group Moscow office Europe GmbH : 5 b 3 Y = nol o g / 5 y i
Slide 46: Experienced And Committed Management
Experienced And Committed Management Years with LSR sin industry s with LSR Executive Committee: Solid experience within the industry by ks Alexander Vakhmistrov 38 Director of regional development. Moscow Ivan Romanov 20 B Director of regional development. Urals Federal District Kliment Falaleev 10
Slide 47: Key Investment Highlights
Key Investment Highlights Strong long-term fundamentals | Leader in Elite and Mass-Market segments in St. Petersburg r i | Growing Mass-Market segment | Leader in construction of housing . in St. Petersburg ™ St. Petersburg and Moscow - leading real estate markets in Russia ™ Leader across key segme
Slide 48: Housing construction technologies
LSR Group Housing construction technologies Traditional panel LSR prefab technology Short construction period Short construction period Industrial production Industrial production Standardized housing, individual ? Flexibility of architectural and facade solutions projects limited Seamless technolog
Slide 49: Appendix
Appendix 49
Slide 50: Key financials
Key financials Revenues 49,950 EBITDA 8,687" EBITDA margin 17% Normalised operating profit 6,307 Normalised operating profit margin 13% Profit for the year 1,742 Normalised profit for the year 1,778 Gross cash flow 9,035 Operatingcash flow (2,375) Capitalised capital expenditure 4,544 Totaldebt 31,7
Slide 51: Statement of Comprehensive Income
Statement of Comprehensive Income Cost of sales (36,875) (37,247) (42,225) Changes in fair value of investment property (non-cash) Write-down of inventory - - - Net financial expenses (3,775) (4,121) (3,205) Income tax expense (754) (1,302) (1,507) Total comprehensive income 1,693 2,439 4,914 51
Slide 52: Balance sheet
Property. plantendequipment. investment property under development Investment property intangible assets Otherinvestments Deferred tax assets Trade and other recetvables Restricted cach Current assets Nor-contrallinginterest ee Non-curentiabltes Laan endborrveings Deferedrarlabilnes Trade andatier p
Slide 53: Cash flow
Cash flow RUBm 2010 2011 2012 Net Income Other, net Change in Inventories Increase/ decrease in provisions Income Taxes Paid Interest Paid Capital Expenditures (2,847) Proceeds from SPO Net change in cash " Cashat beginning of period Exchange rate fluctuations 53
Slide 54: Contacts
Contacts LSR Group Investor Relations Yuri Ilyin 36 Kazanskaya Street, St Petersburg 190031, Russia Phone: +7 812 326 9329 Mob: +7 921906 7777 Email: ilyin@Isrgroup.ru