OREANDA-NEWS. June 04, 2010. OJSC Rosinter Restaurants Holding (Rosinter), the leading casual dining restaurants chain in Russia and CIS (RTS and MICEX ticker: ROST), announced its financial results for the full year ended December 31 2009, prepared in accordance with IFRS. The Company’s financial statements for 2009 are posted on our web page at www.rosinter.com.

2009 Highlights

• Net sales almost flat year-on-year at RUR 8,342 mln or declined 21.8% in USD terms to USD 263.0 mln (including devaluation effect of approximately 21.6%).

• Gross Profit amounted to RUR 2,222 mln or USD 70.0 mln, for a gross margin of 26.6%.

• Operating Profit amounted to RUR 331 mln or USD 10.4 mln, for an operating margin of 4.0%.

• EBITDA amounted to RUR 736 mln or USD 23.2 mln, for an EBITDA margin of 8.8%.

• Net losses decreased by 44.5% to USD 8.4 mln in 2009 in comparison to net losses of USD 15.2 mln in 2008.

• Gross debt decreased by 12.0% to USD 72.7 mln (RUR 2,200 mln) leading to a Net Debt/EBITA of 2.97x as at 31 December 2009 in comparison with 3.95x as at 31 December

• Operating cash flow of USD 26.0 mln compared to USD 20.1 mln in 2008

Sergey Beshev, President and CEO, commented:

“Last year was a true stress-test period for Rosinter, and it proved the stability and flexibility of our business model. It showed that we can both deliver growth and provide the right responses to changing market conditions. I am pleased to say that we were able to keep our revenue in ruble terms at similar levels, open new restaurants and implement our key investment projects in 2009, and I am proud to say that we achieved all of this amid a serious economic crisis and virtual shutdown in the global credit markets.

We continued to expand our restaurant chain and accelerated the development of our franchising system in 2009. We implemented a selective approach to opening new restaurants in strategic locations, including our landmark agreement with Sheremetevo airport’s Terminal D and high-traffic locations in new retail centers in Moscow. At the same time, we implemented successful marketing strategies and menus to drive traffic to our restaurants, cut costs and reduced our total borrowings while improving the structure of the debt portfolio significantly.

As a result, amid a sharp contraction in consumer demand and deterioration in overall economic conditions, we successfully strengthened our leading position in the restaurant market last year, and we reconfirmed our ability to provide guests with a great dining experience at the right place and on an unrivalled scale in our core markets. We already had the right business platform in place before the crisis, and I am pleased to say that it delivered.”

Victor Shlepov, CFO, added:

“In a very challenging 2009 environment where the Company faced a drop in Same Store Sales in ruble terms, Ruble devaluation and a very tough credit environment, our net cash from operating activities increased 29.1% to US\\\\$ 26.0 mln, EBITDA increased 19.5% to US\\\\$ 23.2 mln, and Net losses reduced 44.5% to US\\\\$ 8.4 mln, in dollar terms in comparison with 2008. As at 31 December 2009, we had also decreased our debt portfolio by 12.0% and improved its maturity profile with short-term debt accounting for 53.1% of the portfolio in comparison to 95.5% as of end 2008.

Looking ahead into 2010, we believe that we are very well positioned to benefit from market recovery and growth opportunities. So far, we have observed a continuing positive trend in our Same Store Sales and a substantial decrease in loan interest rates and, following the initial step of our Secondary Public Offering, we have also been able to reduce our debt by US\\\\$ 16.0 mln to US\\\\$ 56.7mln as at 31 March 2010. From second half 2010 we will be launching an active, although very selective corporate development program.”