Highlights:

Armada’s revenue rose 15% in 9M 2012 (13% in 9M 2011)

The group is expecting double-digit revenue growth for the full-year

EBITDA margin in 2012 is expected on par with the level of 2011, when it stood at 12.2%

Armada has substantial financial resources to continue M&A deals

Moscow, November 29, 2012 Armada Group (MICEX-RTS: ARMD) releases preliminary financial results for the first nine months of 2012.

«With a large number of clients and products, substantial financial resources and a portfolio of potential M&A deals, Armada is able to continue confident development. We expect to reach double-digit revenue growth and a traditionally high EBITDA margin in 2012 (EBITDA margin stood at 12.2% in 2011)», Chairman of Armada’s Board of Directors Alexey Kuzovkin said.

Armada’s revenue for the first nine months of 2012 and 2011:

¹ Based on management report under IFRS for January 1 — September 30 of each year.

Revenue
Armada’s consolidated revenue amounted to RUB 2.34bn in 9M 2012 under IFRS, up 15% year-on-year. In the first nine months of 2011, revenue advanced 13% year-on-year.

Financial resources
Armada has no long-term debt and possesses substantial spare financial resources to finance potential M&A transactions.

Staff
The company’s headcount totaled 932 as of September 30, 2012, up 4% from December 31, 2011.

Customer base
Armada’s customer base remains highly diversified, with each of over thousand customers accounting for no more than 10% of total full-year revenue.

For TNK-BP, PM Expert and the customer’s specialists have successfully completed the first stage of servicing and engineering works as part of the major Gas Project Program for TNK-BP’s subsidiary Rospan International. The duration of the program is eight years, from 2011 until 2019. The capex target is about USD 6bn.

For the Chief Road Traffic Inspectorate, Armada is developing special software which will offer a variety of services ranging from the registration of drivers and licenses issued to them, and the registration of administrative offences, to information about stolen vehicles and road accidents.

The MEDIALOG product has been selected as the foundation for the deployment of medical information systems in a number of Russian regions.

Armada Soft supports the single data base of Russia’s Blood Transfusion Service in 63 regions.

Helios IT’s projects in Vnesheconombank and Priorbank (the Belarusian subsidiary of Raiffeisen Group) were named the winners of international competition «ITSM Project of the Year» in two out of six categories.

Armada is implementing a large project aimed at developing and deploying software for an automated system to accept and register requests from citizens and organizations for public services in Moscow.

Guidance for Q4 and full-year
The company usually generates more than half of full-year revenue in the fourth quarter (56% in 2011). Contracts for the software development and implementation make a substantial contribution to revenue in Q4, as a result of which the Software/IT services ratio changed from 25:75 as of the end of 9M 2011 to 45:55 as of the full-year 2011.

Armada’s management expects to achieve double-digit organic growth of consolidated revenue in 2012 and EBITDA margin on par with the year-earlier level, when it stood at 12.2%.