1 Table of content Introduction Section 1 Executive Summary 3 - PowerPoint PPT Presentation

Company presentation Oct 2013 1

Table of content Introduction Section 1 Executive Summary 3 Corporate Overview 9 Section 2 Section 3 Market Overview 18 Section 4 Resilient Operations 34 Section 5 Financial Policy 42 Section 6 Financial Performance 46 Yielding Assets 51 Section 7 Section 8 Development Projects 62 2

Section 1: Executive Summary

Achievements In the last 9 months – all key objectives achieved Acquisitions and Divestitures: Financings and Operating Achievements:  Acquisition of Ducat III from Parent: signed  Vivaldi loan to Unicredit scheduled to and closed mature December 2013 is refinanced with Sberbank maturing 2020: signed  Sale of Olympia Park: signed and closed and closed  Increased ownership in Greenpoint Project  Lease for remaining vacant space at from 50% to 85% Vivaldi: signed, registered and deposit  Acquisition of White Square – signed and paid closed by parent Company – acquisition by  Revolving Credit Facility for $50 mln O1 from Parent closed: with PSB Bank: Loan Agreement  White Square is considered to be signed “Trophy” Class A building with  Capital structure improved due to the investment grade tenants and long term conversion of Pref.Stock into Class A leases resulting in bond like cash flows Common Stock  Key tenants: PWC, Deloitte, JP Morgan,  Interest margin on Bank Facilities BNP Paribas, McKinsey. reduced and maturities extended  Forward Purchase Agreement to Acquire a  S&P rating of B+ received in July 2013 newly built Project ICube was signed in September of 2013. The Transaction will  Rouble Bonds issue of Rub 6bln placed close when the building is fully leased. at 12% on MICEX. Proceeds swapped (est.mid.2014) into US dollars with effective rate of below 7%. 4

Idea 5

Strategy Corporate Strategy – four building blocks Hub for International Tenants Moscow 100% Market Rents Market Moscow Valuation Yields Dynamics Strong market fundamentals Active asset management NOI 100% Internal Occupancy Office growth Retention Rate Lease-up of Developments Focus on top tenants IRR Target: 15 – 25% Yielding assets Min 80% of GAV ~ 80/20 Acquisitions Yielding/ and Selective Development Disposals IRR Target: 20 – 30% Development assets Max 20% of GAV Healthy balance sheet Target LTV 45-55% Solid ~ 50/50 Financial Leverage Policies Target EBITDA/Interest > 2x Strong coverage metrics 6

Credit Strengths  Majority of tenants are multinationals or Russian companies with high quality credit standing Strong and  Resilient assets: evidenced by the resilient rental income and high occupancy rates through the 2008 crisis Resilient Cash flows  No receivables collection delays  As of Sep 2013, O1 assets are 97% leased  Modern assets: most of the portfolio is brand new or refurbished within the last 5-6 years High quality assets  Prime locations: on transport arteries or walking distance to metro station as demonstrated by the low vacancy rates compared to the market  Strong track record of asset management as evidenced by consistently strong portfolio metrics (occupancy ratios, Active WAULT, retention) management of  Asset management team is a multinational team with local language, local knowledge and local expertise estate  Minimal exposure to developments (currently 2%, maximum 20% of GAV) Tight risk  Strong emphasis on high standards of corporate governance management policy  Debt Service Coverage Ratios above 1.1 X even under “crisis” scenario analysis  Portfolio WAULT of approximately 4.3 years (as of Sep 2013), which compares well to international industry peers Long lease expiry profile  High Retention Rate Demonstrated  Meaningful relationship with key international and domestics banks access to  Demonstrated willingness and ability to use equity capital to reduce financial leverage capital Strong Liquidity  Strong cash balance (supported by $50mln PSB back-up credit facility,). Strong and positive FFO generation (after interest and dividend payments), long debt maturities and low Capex.  Exceptionally strong market for high quality buildings and within 3 rd ring (Moscow’s central business district) with Strong market limited stock of prime quality office properties as reflected by rising rents since the 2008 crisis and low  GAV of Yielding Projects – $3,72 Billion competition  Total of ca. 225 tenants as of Sep 2013 Low tenant  PwC, Eurasian Economic Community (EEC) and Deloitte are the only tenants accounting for more than 3% of concentration Total NRA 7

Asset Growth Critical Mass achieved in 2013 4 000 Mln USD 3 500 1 002 3 000 318 380 76 2 500 356 64 2 000 3 719 1 500 2 982 2 525 2 105 1 000 500 0 30 June 2012 CAPEX & Silver City 30 September CAPEX & Ducat III 31 December Olympia Park White Square 30 June 2013 Valuation acquisition 2012 Valuation acquisition 2012 disposal acquisition changes changes 1) O1 Properties acquired Silver City in 3Q 2012 and Ducat III 4Q 2012. 2) O1 Properties sold Olympia Park to Kaspersky Lab in 1Q 2013. 3) O1 Properties acquired White Square in 2Q 2013. 8

Section 2: Corporate Overview Section 2: Corporate Overview

Company Overview Fully Integrated Office Real Estate Platform Internally – Managed Business O1 - Company Snapshot   Investment in high quality office properties located in Moscow Continuous in-depth analysis of development and acquisition opportunities in Moscow  Class A and Class B+/B properties Sourcing /  Highly visible presence in the market (investors,  Top-tier tenants, principally multinationals corporations and leading Business landlords, developers, occupiers, investment Russian companies Development managers, finance providers…)  Existing yielding real estate portfolio comprised of 10 properties with total NRA of 427 thous. sq. m. as of Oct 2013 (2)  Excellent track record in the acquisition of attractive  Development portfolio includes 85% stake in Greenpoint Project and assets and development projects 50% stake in Bolshevik Project Acquisitions  Approval of all material investments and disposals at  Independent portfolio valuation of US$ 3.72Bn the Board of Directors level  Yielding: US$ 3.72Bn   Developments: US$0.1Bn (3) Top-class franchise of leasing capabilities including strong relationships with tenant brokers  In-house experience with strong focus on tenant relationships Portfolio Structure (1)  Add value to standing assets through specific asset Asset improvements Management 2% Total value = US$3.72 Bn  and Leasing Close involvement of O1 professionals ensures Yielding assets = US$3.72 Bn optimal management of the centres and their client Development = US$0.1 Bn relationships  Full control of asset performance  Established relationships with Moscow planning authorities and other relevant government authorities  Experienced in-house team for supervision of development Development  Regular interaction with local authorities helps ensure Supervision 98% local needs (for both the O1 and the local authorities) Yielding Assets Development Projects can be aligned within re-development activities Notes 1. Cushman & Wakefield valuation report as of 30 June 2013; 2. NRA including only yielding assets; except development projects 3. Greenpoint Project was consolidated in 2Q 2013, Bolshevik will be shown as Investment in JV 10

Assets Portfolio Yielding Assets make up 98% of Portfolio Value 100% Moscow Office Current Portfolio Sheremetyevo Yielding Assets Airport White Square Krugozor Oct 2013 GAV (US$ Bn.) 3.72 Ducat III Stanislavsky NRA (thous. sq. m) 427 Sheremetyevskaya $33 MM Avion Occupancy 97% Le Fort $101 MM Lesnaya Plaza White Square $263 MM Lesnaya Plaza Le Fort Silver City $294 MM $1 001 MM LOI’s 1% Bolshevik Factory $361 MM Ducat III $137 MM Stanislavsky Factory $385 MM Kremlin $256 MM Annualized 2013 NOI 324 Lighthouse ($ MM) (1) $260 MM Lighthouse Silver City Vivaldi Plaza $434 MM Weighted Average Rental 772 Rate Oct 2013 (US$) Weighted Average ERV 726 Vivaldi Plaza Avion Krugozor 2013 (US$) $365 MM WAULT (years) 4.3 MKAD Vnukovo Development Projects Ring Road Airport Bolshevik Greenpoint Yielding Asset Value: $170 mln Development Project (2) O1 Share: $101 mln Domodedovo Completion: 2016 Completion: 2014/16 5 km Airport NRA: 75 000 NRA: 33 000 Notes 1. Annualized full occupancy NOI as of Oct 2013 incl. parking 2. O1 owns 85% of Greenpoint Project and 50% of Bolshevik Project 11