Q3 2014 Investor Presentation

Q3 2014 IR Presentation FINANCIAL & BUSINESS RESULTS November 2014

Disclaimer This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of AFI Development Plc (the "Company") or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document.

This communication is only being distributed to and is only directed at (1) qualified institutional buyers (within the meaning of Rule 144A of the United States Securities Act of 1933, as amended (the "Securities Act") or (2) accredited investors (as defined in Rule 501(a) of Regulation D adopted pursuant to the Securities Act). Any person who is not a "qualified institutional buyer" or "accredited investor" should not act or rely on this document or any of its contents.

This document contains "forward-looking statements", which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or GDRs, financial risk management and the impact of general business and global economic conditions.

Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and the Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

Neither the Company, nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document.

The information contained in this document is provided as at the date of this document and is subject to change without notice.

2

SECTION 1

Company Overview

Company at Glance Market Cap, as of November 17, 2014 US$ 0.61 bn Price per share, as of November 17, 2014 US$ 0.58 NAV (Equity), as of September 30, 2014 US$ 1.69 bn NAV per share, as of September 30, 2014 US$ 1.61 Portfolio Value* US$ 2.5 bn PROJECTS PORTFOLIO 17% Pipeline

Land Bank 1%

• Full cycle real estate developer

BUSINESS & STRATEGY

21% Yielding Projects

• Focus on unique large scale commercial and residential projects in Moscow and Moscow region

• Maintain a mixed portfolio which holds both yielding and development projects from different sectors, with varying durations and phasing

• Strong global brand

15%

TRACK RECORD

Active stage of construction 46% AFIMALL * Gross Asset Value of Portfolio based on C&W Valuation as for 30 June 2014 and BV of Land Bank projects, Trading Properties and Hotels( inc. JV)

0.95 0.90

• 16 completed projects with GBA c. 0,6 mln sqm (incld sold)

1,400

0.85

1002.96

0.80

1,200

0.75

1,000

0.70

800

0.65

• Diversified portfolio: Offices class A and B, Hotels, Residential Complexes and Retail Shopping Center

600

0.60

0.58 0.58

0.55 0.50 0.45

400

200 0

AFID (B-share)

AFID (A-share)

• 13 years on the market • Admitted to LSE in 2007 and Premium listing from 2010

1,600

Share Price since January, 2014

• Affiliate of Africa Israel Group (64,88% owner, a major conglomerate with global focus on real estate, construction and infrastructure; Free float – 35,12%

PORTFOLIO

• 10 Investment Projects with GBA c. 0,5 mln sqm • Development projects GBA is c. 1,6 mn sqm

Index RTS

4

Key Projects in Moscow Yielding Assets (retail, offices and hotels) US$ 1.7 bn

Value** ( C&W, Jun 2014):

Tverskaya IB

Berezhkovskaya

AFIMALL

194,4K

GLA (excl. hotels),sqm:

Pipeline Projects PLAZA SPA Kisl*

PLAZA SPA ZHEL* Aquamarine III

NOI stab., (excl. hotels):

US$ 202,7mn

* * Hotels presented with cost value

Ownership:50%

Aquamarine Hotel

Paveletskaya,1

H2O

* Outside of Moscow

Development Projects Value***

US$ 825 mn

(afid share, C&W):

Odinburg**

Paveletskaya II

Plaza IC

Kossinskaya

Plaza IIa

GLA,sqm:

236,41K

GSA,sqm:

558,10K

Pochtovaya

Plaza IV *** Odinburg presented with cost value,

Yielding Assets

Land Bank

Projects under active stage of development and pipeline

Value

US$ 17 mn

(book value):

Completed Assets Other 5 Note: the NOI projections are “forward looking statements� based on C&W valuation assumptions and Company estimations and they can be realized or not realized due to factors beyond the Company's control including, among others, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or GDRs, financial risk management and the impact of general business and global economic conditions

SECTION 2

Market Update

Market Overview and Capital Markets RUSSIAN MACROECONIMIC OVERVIEW Political and economic uncertainty continues to influence Russian macroeconomic forecasts. Sanctions, falling oil and increasing risk perception have put Russian economic growth under continued pressure.

• Russian economic growth: According to estimates from the MED, in Q3 2014 Russian GDP increased by 0,7% Y-O-Y, taking into account seasonable factor the growth estimates around 0%. The forecast for the 2014 growth is no more than 0.5% annually.

• Longer term, declining oil price will put pressure on the ruble and current account. In September Oil prices Brent dropped down on 19% compared to June 2014. (85 US$/barrel vs 105 US$/barrel.) Compared to the same period the price decreased on 21% ( 85 US$ vs 109 US$).

Russia GDP Growth, % Y-O-Y 20 10

0.5%

0 -10 -20

Exchange Currency

65

• Exchange rates: Russian national currency continued to depreciate. As for the 10th of November the USD/RUB broke through the level in 46.9, and EUR/RUB in 58.5. From the beginning of the year the Ruble depreciated more than 40%.

55

• Liquidity is tightening and getting more expensive. On the back of sanctions, external debt financing has been significantly squeezed rising. Senior debt financing is becoming more expensive and construction financing is difficult to obtain.

25

0.7

45 35

0.5

15

0.3 EUR/RUB

• The weaker ruble and ban of food imports resulted in inflation jump. Inflation reached 8% YoY in September 2014 compared to 7.6% the previous month. The main driver of inflation is food price growth as a result of self-imposed sanctions on the import of certain products.

0.9

USD/RUB

USD/UER

Oil Price(Brent) vs RUB/USD

180

50

46.85

40

130

RUSSIAN REAL ESTATE INVESTMENT MARKET

30 20

80

85.04 10

More than US$ 1,7 bln has been invested in Russian Commercial real estate in Q3 2014.

30

• After a quiet summer, investment volumes reached USD1.7 bn in Q3 2014, down only 2% YoY. On paper, these are an encouraging set of numbers, with Q3 results exceeding the total investment volume of H1 2014.

Given the current headwinds in the economy, particularly in debt markets, it is highly likely that volumes will remain subdued well into next year.

• Total investment volume in 2014 (forecast):

Colliers

JLL

CBRE

C&W

4.0-4.5

3.4

3.2 - 4.0

>5.0

Brent

USD/RUB

8,000

60 50 40 30 20 10 0

6,000 4,000 2,000 0

Source: IMF, MED, C&W, JLL, Colies 7

Amount of transactions

Russian Real Estate Market Transactions (2003-2014) Volume, $, mln

• Foreign investors continue tread carefully. In Q1- Q3 2014 local investors continue to dominate the market, Russian players accounted for 69% of deals in Q1-Q3 2014 vs. 54% in Q1-Q3 2013. Given the tension between Russia and the West, real estate consulting companies do not expect a significant pick up in western investment before the end of the year.

0

Office and Retail Markets overview •

15 new office buildings were delivered in 3Q 2014, totaling 496K sqm of additional office space. For 9 months new construction reached more than 1 mln sqm of rental area. This year could mark the highest level of new construction since 2009.

•

The overall vacancy rate increased to 15.1% in Q3 compared to 14.8 % in Q2 2014 due to the increase and delivery new office projects.

•

According to Q1-Q3 results, the annual class A average rental rate has decreased 8% and is $800 (per year per sqm, triple net). The class B average rental rate has decreased 3% and is $516. According to Cushman & Wakefield, average rates for class A and B are on the downward trend.

1,300

1,100 900 700

Prime rate, US$ sqmpa

1,088 807

•

•

In Q3 2014, 3 shopping centers were opened in Moscow with a total GLA of 64,500 sq m. The biggest one, Vodniy SC (GLA 32 500 sq m), was opened as part of a multifunctional complex.

Vacancy rate has increased significantly from 3.5% to 5% due to: the volume of new retail space which is anticipated to reach 750,000 sq m by the end of 2014 – the highest level on record and moderate demand from tenants: tenants’ decision-making time is now more drawn out, some retailers have decided to limit their plans for new store openings and some plan to exit the market completely.

The downward rental rate trend became evident in the retail segment in 2014. Discounts from asking rents for new tenants could be up to 30%.

Moscow’s prime retail indicator decreased from US$ 4,000 to US$ 3,300.

509

530

734 444

645 414

466

300 2007

2008

2009

2010

2011

2012

The weighted average price in the primary market business class residential in III quarter 2014 amounted to 244,650 rubles. (5,755 USD) per 1 square. m. (Source: BEST Nedvizhimost)

4,648

3,162

3,360

3,504

3,718

Overall vacancy,%

15,1%

Vacancy rate,%

11,2%

6.0%

Key indicators

Units

Prime rate, US$ psqma

3,300

4.0% 3.0%

1,774

2.0%

1,124

1,000

1.0%

0

(prime shopping center retail gallery)

0.0%

2007

2008

2009

2010

2011

2012

total area

2013 2014F vacancy

Base rent, US$ psqma

5,000

Prime Rents, US$ psqmpa

In Moscow region the City Odintsovo holds leading position at the average price for sqm of primary residential. As for October 2014, the average price for sqm is 94 684 rub.

500-1,800

4,000

3,000

3,300

Vacancy rate,%

5,0%

2,000 2007

2008

2009

2010 2011 Prime rents

2012

2013

2014F

Asking Price Residential, rub/psqm 60

184,308

50 40 30 20

•

580-800

(Moscow downtown)

5.0%

2,765

3,000 2,000

average Class B

5.0%

4,000

Base rent Class A (CBD) US$ sqmpa

2013 2014F

Retail Volume and Vacancy

RESIDENTIAL MARKET MOSCOW AND MOSCOW REGION •

810 515

796

500

5,000

900-1,100

870 731

RETAIL MARKET OVERVIEW

Units

(US$/sqm/year)

935 646

average Class A

•

Key indicators

Office Price (Class A, Class B), US$ psqm

US$/psqm/pa

OFFICE MARKET OVERVIEW

10 0

rub/persqm

USD

Source: http://www.peresvet.ru/temptext/1397046862160.pdf

Euro

190,000 185,000 180,000 175,000 170,000 165,000 160,000 155,000 150,000

8

SECTION 3 Project Update Yielding Projects

AFIMALL City Update

AFIMALL CITY (as of September 2014) Total GBA, sqm

283,2K

Total GLA(shops, offices, storage), sqm

107.2K

Occupancy end of June, (as % of GLA total) Parking lots, numbers

82%

 In September well-known fashion retailer “Forever 21” opened its first shop in Russia at AFIMALL (c. 1,500 sqm). Also AFIMALL welcomed other new entry – American chain of furniture and household products “Crate & Barrel” (c. 3,000 sqm). The agreements have been signed in 2013.

2,075

Stabilized NOI (C&W est.)

US$147,3 mn

MV (C&W est.)

US$ 1.160 bn

Loan balance as for September, 2014

 In Q3 2014 the occupancy level remained the same at the level of 82%.

US$ 567mn

 Average monthly footfall up 8% in September 2014 compared to September 2013

Revenue, mn USD Operating Expenses, mn USD NOI

Q1 2014 Q2 2014 Q3 2014 9M 2014 9M 2013 28.0 28.7 26.0 82.7 74.5 (11.1) (6.2) (1.0) (18.4) (26.2) 16.8 22.5 25.0 * 64.3 48.3

* Increase NOI is mainly due to decrease in Property tax as positive decision from State committee on project cadastral value and overpayment in Q1 2014.

10

+33%

AFIMALL and Moscow-City Development MOSCOW-CITY DEVELOPMENT  At the moment “Moscow City” is in the process of development. Today Moscow-City consists of 8 complete building complexes accounting for c. 0.65 million sqm of rentable area among 1,2 mn sqm upon delivery.

AFIMALL

 In short-term perspectives Moscow city expects almost doubling of office space (c. 1mn sqmm). Thus, due to high concentration and new massive deliveries of high quality office stock, the office vacancy will remain relatively high. (for 2014 30,6%)

 In October Russian oil company completed the deal on buy – out of office building Evolution in Moscow City. ( c. 1 bln USD according to press release) TRANSPORT ASSECIBILITY  Now three metro stations are opened. (Vistovochnaya, Mezhdunarodnaya, Devlovoy Tcentr) Vistovochnaya and Delovoy Tcentr have a direct enter to the Mall.  New metro stations will make it possible to approach Moscow-City from three different lines: the dark-blue and yellow lines

EXISTING OFFICE COMPLEX 4 – Imperia Tower (GLA, sqm – 70K) 9 – Capital City (GLA, sqm – 81K) 19 – Naberezhnaya Tower (GLA, sqm – 155K) 13a – Federation Tower (Zapad) 19 – Northern Tower (GLA, sqm – 60K) 6, 7,8 – Central Core (AFIMALL) 8a – City Point, Novotel (GLA, sqm – 10K)

- 2015 a route from Delovoy Tcents station to Nizhnaya Maslovka - 2016 a route from Park Pobedi to Ramenki - 2017-2018 – a prolongation of the yellow line to Solncevo, Kropotkinskaya, Smolenskaya and Delovoy Tcentr  Also after opening a hub in 2015 it will take 40-50 min from Moscow-city to SVO and Vnukovo airport.

PLANNED/UNDER CONSTRUCTION 2, 3 – Evolution (GLA, sqm – 70K) – 2015 11 – IQ-quarter (GLA, sqm – 123K) – 2015 12 – Eurasia Tower (GLA, sqm – 86K) – 2014 13b – Federation Tower (Vostok) – 2016 15- MFC (GLA, sqm – 75K) – 2017-2018 16 – OKO (GLA, sqm – 110K) - 2014 17, 18 – Russia Tower (GLA, sqm – 131K) – 2017-2018 11

AFIMALL and Moscow-City Development

AFIMALL

12 Based on C&W report

Yielding Properties Yielding Assets

Building

AFIMALL

Ozerkovskaya III*

Moscow

Moscow

* Berezkovskaya

Moscow

Tverskaya Plaza II Paveletskaya, bld.

1 Moscow

Moscow

H2O

Tvesrkaya Plaza Ib Aquamarine Hotel

Moscow

Moscow

Moscow

CBD

CBD

Office B

Office & Street Retail

16,246

10,698

5,856

14,085

143

-

0.0%

91%

1,201

750- Office 500 - retail

98.6

Location Class GBA, sqm GLA, sqm Parking lots (total), # Ocupancy rate (30.09.2014), % Average rent as of 30.06.2014, $/sq m** NOI (12m forward) (C&W est.), US mn NOI stab (C&West.), US mn MV,US$ mn***

Plaza SPA Kislovodsk

Plaza SPA Zheleznovodsk

TOTAL

Kavkaz region

Kavkaz region

Hotel

Hotel

Hotel

2,027

8,931

25,000

11,701

438K

8,990

1,740

159 keys

275 keys

134 keys

194K

126

81

-

15

-

15

83%

92%

86%

83%

67%

68%

72%

563

505

356

334

537

ADR 206

ADR 301

ADR 203

10.1

4.3

2.4

3.1

1.7

0.9

-

-

-

121

147.3

38.5

5.1

3.4

4.5

2.7

1.2

-

-

-

203

1,160

323.6

37.6

24

29.9

16.9

8.4

25.1

20.5

18.2

1,664

Moscow City

CBD

CBD

Retail

Office A & Street Retail

Office B

Office & Street Retail

Office B

283,182

61,772

11,612

6,742

107,208

46,247

10,250

2,075

466

82%

* Information after disposal of 1 Bld. Project is not leased yet ** Average rents presented as of June 30, 2014 ***MV based on C&W valuation as for 30.06.2014 for 100% of the property. Hotels presented by cost value and show AFI share as for 30.09.2014

13

SECTION 4 Project Update Development Projects

Odinburg Residential GBA, sqm 767,1K GSA, sqm 489,4K STATUS: construction of 22th Floor of Bld. 1 construction of Bld. 2 has been started

15

Odinburg Residential OVERIVEW  The ODINBURG residential district is located in the town of Odintsovo, a modern area considered to be one of the best and most environmentally clean towns in the Moscow region. (11 km from MKAD).  New highway to Moscow is right next to the complex.  The entire residential district takes up an area of 33.14 hectares, which will host eight 8-to-25 story buildings. The residential element will offer almost 9,000 apartments and a total sellable area of 453K sq.m. (Company share).

CONSTRUCTION STATUS and SALES

ODINBURG

 As of today - 416 apartments have been signed  The construction works is ongoing – 22nd floor of bld. 1

(as of September 2014 ) Type

GBA,sqm GSA, sqm/GSA commercial total: Phase I, sqm: Phase II, sqm:

Residential

767,1K 453,0/36,4K 145,1K 307,9K

Apartments, total :

9,059

 Phase 1:  Bld 1

2,572 702

Parking units:

 Start of construction of Bld. 2

3,399

16

Plaza IC ( 2 Brestskaya, 50/2) GBA, sqm:

61,8K

GLA, sqm:

37,0K

MV (C&W est.) US$:

136,0mn

Plaza IC ( 2 Brestskaya, 50/2) PlAZA IC

OVERIVEW  The Plaza 1C project is located in Moscow business district in close proximity to the Garden Ring and Belorussky railway station and implies A class office complex construction with retail zones on the ground floor.

CONSTRUCTION STATUS  Negotiations with several banks are ongoing  Upon the Company obtains finance on favorable terms from banks, the agreement with GC will be signed

(as of September 2014 ) Total GBA, sqm

61,8K

Total GLA, sqm

37,0K

Parking lots, numbers

467 The Kremlin

MV (C&W est.)

US$ 136,0mn

18

Pipeline Projects •

The Company has several projects in pipeline with total GBA c. 550K sqm. Two of them are business class residential complexes located in central part of Moscow 1. POCHTOVAYA (RESIDENTIAL COMPLEX) Location: Moscow, CAD GBA, sqm 170,3K GSA/GLA, sqm 56,9K/34,2K Status: Stage P MV, US$ (C&W) 159,3 mn

2. PAVELETSKAYA (RESIDENTIAL COMPLEX) Location: Moscow, CAD GBA, sqm 151,4K GSA/GLA, sqm 48,2K/26,1K Status: Stage P MV, US$ (C&W) 104,3 mn

Pochtovaya Plaza IV Kosinskaya Paveletskaya

3. PLAZA IV (OFFICE COMPLEX) Location: Moscow, CAD GBA, sqm 108,0K GLA, sqm 61,3K Status: Securing approval MV, US$ (C&W) 164,0 mn

4. KOSSINSKAYA (reconsideration of the project) Location: Moscow GBA, sqm 117,7K GLA, sqm 70,0K Status: *Reconsideration MV, US$ (C&W) 107,3 mn * On 17 November, AFI Development’s Board of Directors decided to place on hold and reconsider further implementation of the development concept of the Company’s apparel and fashion wholesale trade centre “Expolon”, in light of the current economic situation in Russia.

Other

19 Note: the NOI projections are “forward looking statements” based on C&W valuation assumptions and Company estimations and they can be realized or not realized due to factors beyond the Company's control including, among others, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or GDRs, financial risk management and the impact of general business and global economic conditions

SECTION 5 Financials

Consolidated P&L #

Q1 2014 Q2 2014 Q3 2014 9M 2014 9M 2013 Actual Actual Actual Actual Actual

ITEM ('000)

(1)

Construction consulting/management services

(2)

Rental income

(3)

Sale of residential and trading property

(4) TOTAL REVENUE

-

-

0.1

0.1

0.1

36.7

38.2

35.0

109.8

105.1

-

1.4

0.2

1.6

57.1

36.7

39.6

35.3

111.5

162.3

1.7

1.3

0.1

3.1

4.4

(5)

Other income

(6)

Operating expenses

(21.8)

(15.5)

(11.5)

(48.8)

(57.5)

(7)

Administrative expenses

(7.4)

(3.6)

(7.1)

(18.2)

(13.0)

(8)

Cost of sales of residential and trading property

(1.0)

0.0

(1.0)

(33.2)

(9)

Other expenses

(2.3)

(0.7)

(3.1)

(6.0)

(4.1)

(29.7)

(19.6)

(21.6)

(70.9)

(103.4)

(1.3)

(0.7)

(0.5)

(10) TOTAL EXPENSES (11)

Share of profit of equity-accounted investees

(12) GROSS PROFIT (13)

Valuation gains on investment property

(14)

Impairement loss for trading property

(15) RESULTS FROM OPERATING ACTIVITIES (16)

Profit on sale/disposal of properties/investment

-

(0.6)

1.2

6.3

21.2

12.3

39.8

58.4

73.3

(46.8)

108.4

134.8

105.9

(0.4)

79.2 0.1

(8.3)

(8.8)

(34.0)

111.9

-

-

(17.5)

163.3

0.1

32.1

Finance income

2.5

2.0

0.8

5.3

18.5

(18)

Finance expense

(14.9)

(14.1)

(14.7)

(43.6)

(51.2)

(19)

FX Gain/( Loss)

(37.7)

22.8

(63.8)

(78.8)

(23.7)

(20)

Translation reserve reclassification due to disposal of subsidiary

-

-

-

-

(30.3)

(50.2) 29.1

10.7 (23.3)

(77.7) 34.2

(117.1) 40.1

(86.7) 108.7

(23)

Current income tax

(0.2)

(0.3)

(0.3)

(0.8)

(1.3)

(24)

Deferred income tax

(4.8)

3.1

(9.7)

(11.4)

(23.4)

27.9

84.1

(25) PROFIT FOR THE PERIOD

24.2

(20.5)

24.2

(2) Rental and hotel operating income grew 4% year-on-year to US$109.8 mn.

AFIMALL City contribution at US$82.7 million (compared to US$74.5 million in the first nine months of 2013) (3) (8) Revenue for the 9M 2013 includes disposal of parking to VTB ( US$ 24,7 mn in gross profit) Company demonstrates a solid financial performance for 9M 2014, with the challenging market environment

(1.0)

157.2

(17)

(21) Net finance income/(costs) (22) PROFIT BEFORE INCOME TAX

Comments:

21

Statement of Financial Position Changing US$ mn

30.09.2014 US$ mn

30.06.2014 US$ mn

1,602.3 686.6 3.9 54.7 21.4 0.1

1,600.4 686.6 6.0 66.8 22.5 0.1

1.9 (0.0) (2.1) (12.1) (1.1) (0.0)

0% 0% -35% -18% -5% -16%

2,368.9

2,382.3

(13.4)

-1%

4.8 143.4 0.4 0.8 67.3 (0.1) 97.3

5.5 139.6 0.5 0.7 111.2 0.1 123.4

(0.7) 3.8 (0.1) 0.0 (44.0) (0.2) (26.1)

313.9 2,682.8

381.2 2,763.5

(67.3) (80.7)

1.0 1763.4 (229.2) 149.1

1.0 1763.4 (162.5) 124.6

0.0 0.0 (66.7) 24.6

0% -

1,684.4 (2.4)

1,726.5 (3.0)

-42.2 0.6

(2%)

540.7 140.1 18.3

592.4 127.1 21.8

(51.7) 13.0 (3.5)

(9%) (16%)

Total non-current liabilities

699.1

741.3

(42.2)

(6%)

Short-term loans and borrowings Trade and other payables Advances from customers

231.8 35.4 34.5

232.0 44.1 22.5

(0.2) (8.8)

(0%) (20%)

Total current liabilities

301.7

298.6

3.1

1%

(32) TOTAL LIABILITIES

998.4

1036.9

(38.5)

(4%)

2,682.8

2,763.5

(80.7)

(3%)

# (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) (31)

NARRATIVE Investment property Investment property under development Investment in Joint Ventures Property, plant and equipment Long-term loans receivable VAT recoverable

Total non-current assets Trading property Trading properties under construction Inventory Short-term loans receivable Trade and other receivables Current tax assets Cash, cash equivalents and tradable securities

Total current assets TOTAL ASSETS Equity Share capital Share premium Translation reserve Retaining earnings TOTAL EQUITY Minority interest Long-term loans and borrowings Deferred tax liabilities Deferred income

(33) TOTAL EQUITY AND LIABILITIES

%

3% (15%) 2%

 Stable Cash position with US 97,3 mn in cash ,cash equivalents and marketable securities as at 30 September 2014  Debt to equity ratio ( 46%)  Investment property is significant part of total asset portfolio (9) Odinburg

(21%)

(3%)

(25) Change in 30 September 2014 and 30 June 2014 exchange rate

(30) Advance Payments from customers in Odinburg

22

Loans and cash position as of September 30, 2014  Gross balance of the bank loan portfolio (as of September 30,2014) – US$ 772 mn  Total cash balance and deposits (as of September 30, 2014) – US$ 97,3 mn (including marketable securities)

Project

Bank

Balance as of Sept, 2014 (US$ mn)

Available (US$ mn)

Nominal Interest rate

Currency

VTB

$264

-

9.5%

RUB

VTB

$303

-

3-m Libor+5.02%

USD

$567

$0

7.23%

$205

$0

3-m Libor+5.7%

01.04.2018

AFIMALL TOTAL AFIMALL

Ozerkovskaya III (100%)

Maturity

VTB

TOTAL/AVERAGE RATE

$772

USD

26.01.2015

6.89%

The Company is in line with all financial covenants

23

Gross Asset Value PROJECT

Bank Loan

Net Company's Share

30.09.2014

30.09.2014

30.09.2014

AFI Mall Berezkovskaya (100%) Paveletskaya I (1) Plaza H20 Ozerkovskaya III Plaza Ib Plaza II Sadovaya -Samotechnaya

1,160 38 30 17 324 8 24 2

(567)

593 38 30 17 118 8 24 2

TOTAL INVESTMENT PROPERTY:

1,602

(772)

Plaza Ic Plaza II a Plaza IV (100%) Kosinskaya Bolyshaya Pochtovaya Paveletskaya II Ruza

136 12 164 107 159 104 4

TOTAL INVESTMENT PROPERTY UNDER DEVELOPMENT:

687

Ozerkovskaya Phase II (26) 4Winds residential

4 1

Aquamarine/Ozerkovskaya 26 Plaza SPA Zheleznovodsk Pyatigorskaya (Park Plaza Kislovodsk) Plaza Spa Kislovodsk (Tirel) (50%) Versailles (Kislovodsk)

25 18 6 21 4

TOTAL TRADING PROPERTY:

5

TOTAL PROPERTY PLANT AND EQUIPMENT:

74 Odinburg

TOTAL TRADING PROPERTY UNDER DEVELOPMENT:

TOTAL PORTFOLIO: CASH AND CASH EQUIVALENT DEFFERED TAX LIABILITY TOTAL OTHER ASSETS AND LIABILITIES

TOTAL EQUITY:

Book Value

(205)

LTV= 31% LTE = 46%

830 136 12 164 107 159 104 4

0

687 4 1

0

5 25 18 6 21 4

0

143

74 143

143

0

143

2,511

(772)

1,739 97 (140) (11)

1,684

24