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1H2020 SOLLERS IFRS RESULTS

Moscow, November 27, SOLLERS Group (MOEX: SVAV) reports its consolidated condensed IFRS financial information as of 30 June 2020.

In 1H2020, the revenue was up to RUB 23.1 bln. from RUB 15.1 bln. in 1H2019. The considerable growth of 53.2% was due to Sollers Ford JV consolidation from July 1, 2019 and as the result addition of Ford Transit sales to the Groups consolidated revenue.

The EBITDA declined by 36.4% to RUB 1.2 bln. SOLLERS' consolidated net loss totalled RUB 1.2 bln. The net debt was RUB 4.9 bln., compared to RUB 614 mln. as of December 31, 2019. The substantial increase in the net debt was a result of new credit lines signed under the state support programme for automakers.

This year is a real challenge for the Russian automotive market: lockdown, discontinuation of production and interruption in dealer operations, all together resulted in rapid drop in demand and, consequently, car sales. It had undoubted adverse effect on SOLLERS Groups financial results.  We believe that the first half year slump will be partially compensated by the supplies of vehicles to state companies and federal authorities, as well as large fleet sales, which shifted to the second half of the year. SOLLERS proceeds with its car as a service initiatives and strengthens its market position in LCV segment: Ford Transit sales steadily grow after the pandemic restrictions were moderated, said Nikolay Sobolev, SOLLERS CEO.

In the 1H2020 UAZ launched all new rehab ambulances based on UAZ Profi and started production of UAZ Pickup with automatic gearbox. SOLLERS launched online shop for car sales and rentals. Now UAZ prepares the production for UAZ Profi with double-tire wheels.

Sollers Ford JV continues the localisation projects and gets ready to relaunch the engine plant in SEZ Alabuga for the Ford Transit diesel engines manufacturing. In 1H2020, Ford Transit retail sales amounted to 4.4 K vehicles, the market shares increased by 6.3% to 17.9%.

RUB mln

1H2019

1H2020

Change

Revenue

 15 107

23 140

53.2%

EBITDA

1 824

1 160

-36.4%

Operating profit/ (loss)

1 086

(496)

n/a

Share of profit in JVs and associates

278

112

-59.7%

Net loss[1]

(130)

(1 161)

/

Net debt[2] as of 31.12.2019/ 30.06.2020

614

4 860

x8

Wholesales, K units

1H2019

1H2020

Change

UAZ

16.7

11.7

-29.9%

Ford Transit

5.6[3]

5.0

-11.5%



[1] After minority interest deduction

[2] Excluding restricted cash

[3] Not consolidated by SOLLERS Group

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