SOLLERS IFRS RESULTS

SOLLERS IFRS RESULTS 2017 03.05.2018

2 1. 2017 SOLLERS STRATEGIC DEVELOPMENTS 2. RUSSIAN AUTOMOTIVE MARKET OVERVIEW 3. SOLLERS OPERATING AND FINANCIAL PERFORMANCE IN 2017 4. SOLLERS JOINT VENTURES RESULTS

3 2017 SOLLERS STRATEGIC DEVELOPMENTS JUNE MAZDA SOLLERS JV starts assembly of new Mazda CX-5 in Vladivostok JULY Adil Shirinov is appointed CEO and President of Ford Sollers JV JULY UAZ presents pilot version of UAZ Cargo with hybrid power unit OCTOBER UAZ launches sales of new UAZ PROFI in the most popular segment of LCV DECEMBER Ford Sollers JV: retail sales up 18% in 2017 vs. 12% growth of total Russian market DECEMBER UAZ export sales: 46% growth in 2017 to 5.1 k units (2016: 3.5 k units)

4 2018 SOLLERS STRATEGIC DEVELOPMENTS JANUARY Ford Sollers JV launches new Ford Explorer for Russian market FEBRUARY Elena Frolova is appointed Deputy General Director for Finance and Economics of SOLLERS Group FEBRUARY UAZ MAZDA presents SOLLERS pilot version JV launches of UAZ production Cargo with of new hybrid crossover power Mazda unit CX- 9

5 NEW LCV NEW MODELS UAZ PROFI new light commercial vehicle based on UAZ Patriot platform in the mass segment of LCV Combines the comfort of passenger car and the payload of commercial vehicle Competitive price positioning will support the new segment penetration Start of sales in October 2017 Price: from RUB 724 k New engine: ZMZ-PRO up to 160HP Increased payload and wheel base: 1 500 kg & 5.9 m Strengthened frame and suspension Improved manoeuvrability & extra choice of comfort options

6 1. 2017 SOLLERS STRATEGIC DEVELOPMENTS 2. RUSSIAN AUTOMOTIVE MARKET OVERVIEW 3. SOLLERS OPERATING AND FINANCIAL PERFORMANCE IN 2017 4. SOLLERS JOINT VENTURES RESULTS

7 2015 2017 RUSSIAN AUTOMOTIVE MARKET, K UNITS* SALES OF PASSENGER CARS SALES OF LIGHT COMMERCIAL VEHICLES 1 493-12% +12% 1 477 +3% +8% 162 158 1 315 132 145 132 100 103 111 131 407 208 394 129 435 121 89 93 99 558 529 644 11 10 12 2015 2016 2017 2015 2016 2017 Other B B+ C SUV+Pickup LCV+MPV CDV HIGHLIGHTS Sales of new passenger cars and LCVs in Russia increased by 12% in 2017 Growth in all main market segments, the overall passenger car market went up by 12% in 2017 The largest SUV+Pickup segment grew by 22% in 2017 mainly due to crossovers B+ segment also grew by 11% The growth in light commercial vehicles is due to sales of GAZ and Ford vehicles (7% and 71% growth respectively in 2017) * Source - AEB

8 2015 2017 NEW SUV + PICKUP NEW SUV+PICKUP MARKET 2015 2017, K UNITS* 2017 KEY PLAYERS (RETAIL SALES), K UNITS +22% 12% 12% 9% 9% 7% 5% 5% 5% 4% 3% 3% 3% 3% 558 62-5% 529 53 644 51 231 77 76 61 60 218 207 47 278 269 362 34 32 29 24 22 21 21 20 2015 2016 2017 Russian brands Foreign brands assembled in Russia New import 4,6% 0,8% -2,2% -0,7% 0,9% 2,1% -0,8% -0,6% 0,6% -0,7% -1,6% -0,8% 0,4% MAJOR MARKET TRENDS IN 2017 The market for SUVs and Pickups outperformed the overall market: +22% vs. 12% growth of total passenger car sales The growth due to mass SUV models like recently launched Hyundai Creta, Kia Sportage, Renault Kaptur and new Volkswagen Tiguan Ford improved its position on SUV segment due to successful sales of Ford Kuga and Ford Explorer * Source - AEB

9 2015 2017 NEW LCV+MPV MARKET NEW LCV+MPV MARKET 2015 2017, K UNITS* 2017 KEY PLAYERS (RETAIL SALES), K UNITS 89 +4% 93 +6% 99 50% 21% 10% 7% 5% 2% 2% 2% 1% 1% 0% 49,5 20,3 9,6 64 69 70 6,5 4,6 14 11 2015 Russian brands New import 13 13 11 16 2016 2017 Foreign brands assembled in Russia 1,9 1,7 1,6 1,3 0,6 0,5 0,1% -3,8% 3,7% -0,2% -0,2% -0,1% 0,5% 0,6% 0,0% 0,0% -0,2% MAJOR MARKET TRENDS IN 2017 UAZ is #2 player on LCV+MPV market with 21% market share The market share is expected to increase due to the launch of UAZ PROFI in October 2017. The model is positioned in the mass segment of light commercial vehicles Ford Transit sales increased by 67% in 2017, the brand managed to increase its market share to 10% and became #3 player on the LCV+MPV market * Source - AEB

10 1. 2017 SOLLERS STRATEGIC DEVELOPMENTS 2. RUSSIAN AUTOMOTIVE MARKET OVERVIEW 3. SOLLERS OPERATING AND FINANCIAL PERFORMANCE IN 2017 4. SOLLERS JOINT VENTURES RESULTS

11 SOLLERS GROUP WHOLESALES SOLLERS CONSOLIDATED WHOLESALES k units 2016 2017 Change UAZ 51,1 46,5-9,0% UAZ Hunter 4,1 2,3-43,9% UAZ Patriot 19,2 15,5-19,2% UAZ commercial vehicles - old model range 23,3 22,0-5,6% UAZ commercial vehicles - new model range 4,5 6,8 51,1% SOLLERS JVS WHOLESALES k units 2016 2017 Change MAZDA SOLLERS JV 24,1 24,1 0,0% FORD SOLLERS JV 44,5 54,0 21,3% HIGHLIGHTS The decrease in UAZ sales volumes is due to customers adaptation to the reduction in state direct support

12 OVERVIEW OF 2017 FINANCIAL RESULTS RUB mln 2016 2017 Change Revenue 35 621 35 764 0,4% EBITDA 3 903 3 377-13,5% EBITDA margin 11,0% 9,4% -1,5% Operating profit 2 269 1 788-21,2% Operating margin 6,4% 5,0% -1,4% Financial instrument recognition/ revaluation and change in fair value* (1 319) (261) 1 058 Share of result of JVs 1 026 412-614 Net profit 1 601 999-37,6% Net debt as of 31.12.2016/ 31.12.2017 4 740 7 609 60,5%

13 SALES STRUCTURE, RUB BLN SALES STRUCTURE 0,4% 36 35,6 35,8 32 28 24 20 16 12 8 4 0 28,8 4,9 1,9 2016 27,9 6,5 1,4 2017 Vehicles Automotive components Other The growth in the Group s revenue of 0,4% due to the change in UAZ product mix and export sales growth

14 EBITDA CHANGES, RUB MLN EBITDA CHANGES EBITDA VS OPERATING PROFIT 4 000 3 600 3 200 3 903-13% 3 377 21 18 1 354 135 100 3 377 2 800 15 2 400 2 000 1 600 11.0% 9.4% 12 9 1 354 1 200 6 800 400 3 1 788 0 2016 EBITDA 2017 EBITDA margin 0 Operating profit D&A Compensation Other oneoff of capitalised expenses transactions EBITDA

15 CASH FLOW, RUB MLN Net cash used in operating activity RUB (1,121) mln. Net cash used in investing activity RUB (2,679) mln. Net cash from financing activity RUB 3,770 mln. 261 588 (412) (360) (148) 1 354 (3 198) 1 351 2 336 2 306 (557) (1 320) 3 770 (558) Cash at the beginning of the year PBT D&A Impairment of the option Interest charge Share of profit of JVs and associates Provision movements Other adjustments Change in working capital Income tax and interest paid Additions to PPE & other LT assets R&D net of subsidy (876) Prepayments deposited at special accounts (restricted cash) 75 Dividends received from associates and JVs Net change in debt Cash at the end of the year X Subtotals X Cash inflow (X) Cash outflow Other adjustments include profit/ loss on the sale of property, plant and equipment, investments and other non-current assets

16 NET DEBT POSITION, RUB MLN NET DEBT POSITION AND EFFECTIVE INTEREST RATE NET DEBT STRUCTURE 8 000 7 609 15.0% RUB mln 31.12.2016 31.12.2017 Change 7 000 6 000 5 000 4 740 13.5% 12.0% Long-term debt 3 420 2 830-17,3% Short-term debt 3 656 7 961 117,8% 4 000 9.7% 10.5% Total debt 7 076 10 791 52,5% 3 000 2 000 1 000 7.9% 9.0% 7.5% Cash at the end of the period 2 336 2 306-1,3% Restricted cash - 876 n/a 0 31.12.2016 31.12.2017 6.0% Net debt 7 076 7 609 7,5% Net debt Average effective interest rate, % Average effective interest rate increased as a result of the lower share of subsidised debt in the Group s loan portfolio as of December 31, 2017. The government subsidy is applied to the credit lines commenced before 2015 Liquidity reserves up to RUB 7.1 bln. including cash of RUB 3.1 bln. and available credit facilities of RUB 4.0 bln.

17 1. 2017 SOLLERS STRATEGIC DEVELOPMENTS 2. RUSSIAN AUTOMOTIVE MARKET OVERVIEW 3. SOLLERS OPERATING AND FINANCIAL PERFORMANCE IN 2017 4. SOLLERS JOINT VENTURES RESULTS

18 MAZDA SOLLERS JV AND SOLLERS-FINANCE JV PERFORMANCE MAZDA SOLLERS WHOLESALES, K UNITS LEASED OUT VEHICLES BY TYPE, RUB MLN 24,1 6,0 24,1 6,2 3,297 4,509 5% 11% 12% 8% 18,1 2016 17,9 2017 40% 58% 26% Mazda6 Mazda CX-5 18% 8% 14% 2016 2017 Special vehicles Passenger cars Trucks LCV Other vehicles MAZDA SOLLERS JV FINANCIAL RESULTS* SOLLERS-FINANCE JV FINANCIAL RESULTS** RUB mln 2016 2017 Revenue 26 355 27 490 Operating profit 2 070 662 Operating margin 8% 2% Net profit 1 725 604 Net profit margin 7% 2% Debt as of 31.12.2016/31.12.2017 1 432 - RUB mln 2016 2017 Revenue 645 907 Operating profit 351 322 Operating margin 54% 36% Net profit 263 259 Net profit margin 41% 29% Leasing portfolio as of 31.12.2016/31.12.2017 2 633 4 101 * MAZDA SOLLERS JV 2016 net profit included subsidies related to the prior periods ** SOLLERS-FINANCE JV leasing portfolio adjusted for provisions

19 JOINT VENTURES RESULTS BREAKDOWN OF JVS CONTRIBUTION TO THE SHARE OF PROFIT OF JVS RUB mln Current SOLLERS' stake 2016 2017 Change MAZDA SOLLERS JV 50% 862 302 65% SOLLERS-BUSSAN JV 50% 32 (20) -163% SOLLERS-FINANCE JV 50% 132 130-1% TOTAL CONTRIBUTION 1 026 412 60% The results of Ford Sollers JV are not presented due to impairment of the investment and recognition of the option in SOLLERS consolidates financial statement

20 STOCK INFORMATION SHARE PERFORMANCE AT MOEX, TICKER: SVAV 700 600 588 500 501 400 300 25.04.2017 25.04.2018 STOCK EXCHANGE DATA AT 25.04.2018 Market capitalisation, RUB mln. 17 169 Shares, mln. 34,27 Price at 25.04.2018, RUB 501 Security List I