Presentation of the consolidated IFRS results for 6 months ended June 30 2010 and revaluation of portfolio of properties as of July 01 2010 4 October 2010 Speakers: Andrey Rodionov, CFO Viktor Szalkay, IRO Content Title 1 Introduction 3 Sales & Marketing Update 6 Portfolio Overview 10 Financial Overview 15 Appendix 19 Top-15 Projects Overview 20 Disclaimer 30 2 Introduction 3 Proven execution in Russian real estate Key statistics 2007 2008 2009 1H09 1H10 Leading integrated homebuilder in Russia; Key operating indicators Focused on affordable residential housing Total housing completions ('000 sqm) (1) 1542 813 884 174 245 New sales contracts to customers (PIK share) 825 520 123 24 159 segment on Moscow Metropolitan market; ('000 sqm) (1) Transferred to customers (PIK share) ('000 sqm) (2) 992 378 492 110 152 Proven track record with over 10MM sq, meter completions (equivalent to over 170,000 units); Key financial indicators Consolidated Group revenue, US$MM (3) 2313 1355 1300 363 503 Founded in 1994, public since June 2007. Consolidated Group adjusted EBITDA, US$MM (3) 571 124 138 (13) (81) Note: 1. Management accounts 2. as per recognition criteria adopted under IFRS 3. 2007, 2008, 2009, 1H09, 1H10 P&L data was converted at 25.55, 24.86, 31.68, 33.05, 30.06 RUR/US$ exchange rates respectively Estimated market share in 2005-2010E (%) Volume of completed housing in 2000-2009 (sqm) 20% Russia Moscow Moscow Region PIK Group (thousand sq.m.) 16,0% 14,7% 15,0% 70 Russia (million sq.m.) 63,8 1800 16% 14,4% 61,0 59,8 1600 60 50,2 10,7% 11,3% 12% 1 542 1400 10,5% 13,9% 50 41,0 43,6 8,3% 1200 33,8 36,4 1 244 6,7% 40 31,7 1000 8% 8,7% 30,3 800 3,9% 4,3% 4,1% 30 884 3,1% 2,8% 827 813 600 4% 2,2% 20 400 2,9% 514 497 10 409 200 0% 261 0 167 0 2005 2006 2007 2008 2009 2010E 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Note: market share is calculated as PIK completions divided by total completions in a specific region excluding individual housing Source: Rosstat, Company data construction. See below Russia: PIK completions of 1MM divided by estimated Russia completions of 24.5MM sqm Moscow: PIK completions of 0.3MM sqm divided by Moscow estimated completions of 2MM sqm; Moscow Region: PIK completions of 0.6MM sqm divided by Moscow Region estimated completions of 4MM sqm Source: Rosstat, Company data, 2010E are based on federal housing program 4 Sales & Marketing Update 5 Beginning of the next real estate cycle after bottoming out Starting summer 2009, positive signals were recorded showing that the Russian residential market bottomed out: Primary affordable housing market Average – maximum selling price decline vs. pre-crisis levels reached 23% price, Change since Change since in roubles, 45% in USD terms; Data as of July 1 2010 RUB/sq m MoM change ,% Oct 2009,% Sept 2008,% – in May-June 2009, residential prices in Moscow metropolitan Moscow 113 200 +0,7% +1,0% -6,3% Moscow Region 65 200 -0,4% +0,5% -6,9% market stabilized; Khimki 88 700 +0,6% +2,2% -7,3% Mytishchi 79 700 -1,4% +1,3% +1,0% – customer sentiment has changed; Dolgoprudny 77 200 0,0% +3,3% -5,2% – transaction volume increased and became recurring on a daily Lubertsy 64 500 +0,1% -1,5% -10,8% Lobnya 53 300 -1,6% +0,2% -17,6% basis; Dmitrov 46 200 -1,4% +4,5% -10,2% St, Petersburg 71 400 +1,1% 0,0% -22,2% – in December 2009, secondary market transactions in Moscow Russia’s regional cities (~1MM pp) 38 000 -0,9% -2,5% -23,7% Nizhniy Novgorod 47 300 -3,2% -5,2% -20,8% doubled vs. 2009 average; Yekaterinburg 47 300 +0,3% -1,8% -19,8% Novosibirsk 42 000 -0,5% -4,8% -16,6% – secondary market mortgage transactions in April 2010 reached Samara 34 500 -4,8% -15,7% -23,7% pre-crisis level; and Rostov-on-Don 38 900 -1,9% -5,0% -24,6% Ufa 38 100 +0,5% +0,1% -21,7% – pent-up demand on the secondary market showed higher Perm 35 700 -0,5% -3,9% -33,7% Kazan 37 900 +1,8% +8,1% -1,1% transaction volumes in 1H2010 than in almost any of the Tumen 37 100 +1,9% +0,7% -18,9% previous periods. Volgograd 36 700 +0,5% +2,2% -35,8% Chelyabinsk 32 500 -2,1% +0,9% -23,5% In line with PIK past estimations, the market recovery in 2010 is Omsk 28 200 +0,3% -0,1% -20,5% coming through increasing transaction volume at flat prices Source: Company Data, Company Research Moscow primary market performance in affordable housing (%) Transaction volume on Moscow secondary(1) market (units) Max price decline from pre-crisis highest level incl.hidden discounts Current price vs. pre-crisis highest level 12 000 2007 2008 USD/sqm RUB/sqm 2009 2010 10 000 0% -5% -5% 8 000 -18% -10% -23% -15% 6 000 -20% -45% -25% 4 000 -30% 2 000 -35% -40% 0 -45% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -50% Note: (!) existing home sales after title registration Source: IntermarkSavills Source: Federal Registration Chamber 6 Undergoing moderate market recovery in affordable housing segment PIK enjoys the benefits of the undergoing market Cash collections dynamics over time (RUB BN) (1) recovery in affordable housing segment: – total cash collections for the first six months of 12M08 44,8 13,5 3,5 61.9 2010 doubled YoY; 12M09 9,4 12,6 0,4 22.4 – cash collections from sale of apartments for the same period showed a five-fold YoY increase; 6M09 1,7 4,1 0,2 6.1 * 6M10 8,7 3,8 0,3 12.8 – total cash collections for 3Q10 were up by 75% 75% compared to 1H10; and 9M09 6,2 7,7 0,3 14.2 – contracted retail volume continued to gain 9M10E 13,6 8,2 1,1 22.3 momentum and reached sustainable monthly 0 10 20 30 40 50 60 70 levels (see next slide). Sales of apartments Construction services Others Note: *9M10 cash collections represent cash collection up to September 20 2010 Note: (1) excluding offsets, 9M10 cash collections represent cash collection up to September 20 2010 Source: Company data, Management accounts Breakdown of retail sales (units) Total contracted retail volume (RUB MM) 231 238 flats + ground floors/retail premises 222 855 804 parking 133 133 528 Total (FY09) – 1,386 (incl. 600 parking) 125 Total (FY09) – RUB4.5bn 471 375 310 66 66 154 244 57 58 152 217 209 227 37 147 96 91 20 70 44 53 55 43 39 30 10 19 Source: Company Data, Management Accounts, extracted as of August 2010 Source: Company Data, Management Accounts, extracted as of August 2010 7 9M 2010E update: clear-cut pick-up in demand from retail customers Average retail realized prices, 8M10 (ths,RUB / sqm) In 8M10, total contracted retail volume saw a ~5.3x 113,5 YoY growth in money terms; 101,7 96,4 98,2 98,5 92,7 92,3 92,8 Average monthly sales in 8M10 came to 311 units(1) vs. 81 units YoY; 68,1 67,7 67,3 63,6 63,9 65,7 63,9 65,9 Average daily sales(2) were at 15.4 units vs. 4.0 units (3) YoY and 38,3 35,6 34,3 37,1 37,4 36,1 32,8 31,1 In September 2010, following successful marketing sales campaign, average daily sales reached 21,6 Jan Feb Mar Apr May June July Aug units. Moscow Moscow region Other regions Note: (1) units = flats + ground floors + parking lots Note: weighted average realized price is calculated as total sales divided by units weighted on projects (2) taking into account only business days Source: Company Data, Management Accounts (3) 12.4 units excluding parking lots vs.1.8 units YoY Breakdown of retail sales by region, 9M10E (units) Total contracted retail volume, 9M10E (MM RUB) Flats + ground floors Parking lots Moscow Moscow, Moscow 475 Region, Other Regions Moscow Region 75% 401 Other Regions 382 361 338 337 8M10 average monthly = 311 247 231 8M10 average monthly = 1,193 2 500 260 349 ~3.8x 190 266 341 298 159 1 557 1 488 ~5.3x 204 1 362 1 407 1 426 131 8M09 average monthly = 81 936 8M09 average monthly = 225 636 730 Jan Feb Mar Apr May June July Aug Sept E Jan Feb Mar Apr May June July Aug Sept E Source: Company Data, Management Accounts, extracted as of September 2010 Source: Company Data, Management Accounts, extracted as of September 2010 8 Mortgages to be the next strong catalyst for the continuing market recovery . The Russian Government undertakes a set of measures to support mortgage market development and to make mortgages more affordable; . End of 2009, PIK entered into partnership agreement with Sberbank to provide mortgages on one PIK project. In September 2010, this programme was further extended. Similar programmes were launched with VTB24 and others (e.g. Svyazbank, BSGV, HFB); . In June 2010, PIK signed an agreement with Gazprombank, stipulating mortgages(1) on new properties under construction, which resulted in a significant increase in the share of sales funded by mortgages. Note: (1) RUB interest rate of 13%; LTV = 80%; maturity of up to 25 years Sberbank’s mortgage branch at PIK’s customer area on Barrikadnaya str, 19 Share of PIK sales funded by mortgages in Moscow Metropolitan area Total mortgage credits issued on a monthly basis (units) in 8M10 (% of total) Mortgage programmes with 2009 (Russia, '000 units, lhs) 16% Gazprombank on new 40 2010 (Russia, '000 units, lhs) 1400 2009 (Moscow, units, rhs) 14% properties under construction 35 2010 (Moscow, units, rhs) 1200 12% Mortgage programmes with a 30 number of banks on already 1000 10% constructed properties 25 800 8% 20 6% 600 15 4% 400 10 2% 5 200 0% 0 0 Jan Feb Mar Apr May Jun Jul Aug Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec flat terms Source: management accounts Source: CBRF 9 Portfolio Overview 10 Landbank highlights as of July 1 2010 Portfolio dynamic Portfolio breakdown by geography 16 14.9MM sqm 1 200 14.2MM sqm By Unsold area By Market Value $1,000/sqm 14 Moscow Other $865/sqm 1 000 11.6MM sqm regions 12 10.8MM sqm 13% 12% 800 10 8.8MM sqm Moscow