LSR Group 1H 2010 Financial Results

In the first half of 2010 LSR Group generated RUB 17,717m of revenues and RUB 2,923m of EBITDA

• Sales revenues amounted to RUB 17,717m
• EBITDA amounted to RUB 2,923m
• EBITDA margin was 17%
• Normalised operating profit amounted to RUB 1,729m
• Net loss amounted to RUB 675m

In the first half of 2010, 63% of our revenues and 88% of our EBITDA were generated by our Real Estate Development, Construction and Commercial Real Estate pision, and the share of our Building Materials, Aggregates and Construction Services pision was 37% of the total revenues and 12% of the Group’s EBITDA

Igor Levit, Chairman of the Board of Directors of LSR Group comments:
“Our results in the first half of 2010 reflect the dynamics of the current economic cycle. In particular, the financial results of our real estate development business were affected by sales of real estate to the government at the decreased price. The end of 2009 and winter of 2010 were especially difficult periods for our building materials pision. In addition, during the winter season the demand was further hampered by severe weather conditions.
However, starting from spring 2010 signs of recovery are observed in all our product markets which results in the growth of sales. In the certain segments our growth rates are ahead of the market which proves strengthening of our market positions.
Today our main goal is to capitalise on the opportunities which the market recovery could bring to our business. In the first half of 2010 we launched several new real estate development projects, acquired the number of land and production assets at attractive prices in St. Petersburg and the Leningrad region. We continued the implementation of our key investment projects – construction of the cement plant and upgrade of our pre-fabricated panel factories. We entered mass market housing segment in the Moscow Region and increased our development pipeline in the Moscow region. In future we plan to expand our panel production capacity in the Urals and thus strengthen our positions in this market.”

Full version of the press-release>>

Notes to Editors:
OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are production of building materials, real estate development and panel construction.
LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine.
In 2009, the sales revenues of LSR Group were RUR 51,024 million (IFRS).
LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.

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