LenSpetsSMU consolidated statements according to IFRS for the first half 2009 are available on the company’s financial website

20.10.2009

20 October, LenSpetsSMU Group issued its consolidated statements according to IFRS for the first half 2009. According to the statements the main indices (revenue, gross and net profit, EBITDA) have increased 2-3 times compared with the same period of the last year, and EBITDA margin has reached 39.9%.

It should be noted that LenSpetsSMU’s accounting policy is based on the method where revenue is only recognized upon completion of projects. So, a considerable increase in P&L indices has resulted from a record delivery, over LenSpetsSMU’s lifespan, of 413 thousand sq m in 2008. The revenue was recognized only in 2009 upon measuring the completed real estate projects and then transferring apartment titles to the buyers.

Chairman of the Board of Directors of Etalon-LenSpetsSMU Holding Company, Viacheslav A. Zarenkov, commented on the issue of the statements: “The Holding was ready for the crisis which happened in the 2nd half 2008, and according to the results of the 1st half 2009 it managed a remarkable performance. We have not made any breach or delay in our debt obligations, and since the beginning of the year we have repaid credits and loans exceeding 120 million dollars. In principle, we could, and still can, increase our leverage by 4 times without breaking any covenants imposed on LenSpetsSMU. The company’s operation is under the constant monitoring of Standard & Poor’s rating agency, and since the beginning of this year it has already confirmed three times LenSpetsSMU’s rating as ‘B’, outlook ‘stable’. This is the highest rating out of all constructions companies in Russia and Eastern Europe.”

Main indices according to the results of the 1st half 2009:

- Total assets of LenSpetsSMU Group is 34.2 billion rub,

- Amount of funds raised from clients (advances received on principal activity) is 16.0 billion rub,

- Equity increased 1.9 times over a year from 3.2 billion rub to 6.0 billion rub (+87.7%),

- Revenue for 6 months 2009 increased 2.1 times compared with the same period of the last year and is equal to 9.6 billion rub.,

- Gross profit increased 2.3 times,

- EBITDA increased 3.2 times (1.7 billion rub for 6 months 2008 against 3.8 billion rub for 6 months 2009),

- Net profit increased 2.5 times up to 2.2 billion rub.

Index

6М2009

6М2008

Change, %

Assets, thousand rub

34 205 149

32 076 721

+6.6%

Financial debt (credits and loans), thousand rub

6 637 726

5 345 432

+24.2%

Net financial debt (credits and loans less deposits), thousand rub

5 039 583

4 463 432

+12.9%

Advances from clients, received from the main business, thousand rub

16 041 221

19 794 140

-19,0%

Equity, thousand rub

6 042 291

3 218 951

+87.7%

Revenue, thousand rub

9 593 341

4 614 686

+107.9%

Gross profit, thousand rub

4 017 929

1 733 689

+131.8%

Interests due, thousand rub

415 409

280 529

+48.1%

Net profit, thousand rub

2 158 560

848 961

+154.3%

EBITDA, thousand rub

3 826 199

1 180 273

+224.2%

EBITDA margin

39.9%

25.6%

-

Financial debt / EBITDA

(calculated on an annual basis)

1.02

3.26

-

EBITDA / Interests due

(calculated on an annual basis)

9.14

2.94

-

The statements are available on the company’s financial website.