Company Presentation at Sberbank Conference April, 2013 Contents - PowerPoint PPT Presentation

Company Presentation at Sberbank Conference April, 2013

Contents Strategy and corporate overview 3 Market overview 10 Asset portfolio overview 17 2012 Achievements & acquisitions and divestments 21 2013 Initiatives 27 Debt & Liquidity 30 Financial performance – Historical 32 Financial performance – Projections 34 Our equity story 37 Appendix: yielding assets 42 2

Strategy & Corporate Overview 3

Management Team Chairman of the Board  Since 2006 actively involved in the real estate and private equity Dmitriy Mints investment projects of OTKRITIE FINANCE CORPORATION (“OFC”)  Completed transactions exceeding $3Bn in value  Graduated from Moscow State Institute of International Relations Chief Executive Officer Alexander Ostrovskiy  Previously Managing Director at OFC, which he joined in 2007  Degree in Law from The Russian Customs Academy of Federal Customs Service Chief Investment Officer  Joined OFC in 2006 to create its Real Estate Fund for Vivaldi Plaza Michael Stanton  25 years of finance experience  MBA from the University of Michigan Chief Financial Officer  CFO of Horus Group from 2006 until 2010 Tomasz Zamiara  14 years experience in Accounting and Real Estate  MBA from London Business School Head of Asset Management and Leasing  Over 5 years with Horus Capital and 6 years with Hines Pavel Barbashev  Management of the assets that are now part of the O1 portfolio  Over 15 years experience in Real Estate  Graduated from TOURO College of New-York (Moscow Branch) 4

The Idea 100% 100% Office Moscow ~ 50/50 ~ 80/20 Yielding/ Leverage Development 5

A Moscow Office Pure-Play Fully Integrated Office Real Estate Platform Internally – Managed Business O1 - Company Snapshot   Continuous in-depth analysis of development and Investment in high quality office properties located in Moscow 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 426,793 sq. m. of as of 01 February 2013 (2)  Excellent track record in the acquisition of attractive  Development portfolio includes 50% stake in 1 project assets and development projects  Independent portfolio valuation of US$ 3.7Bn Acquisitions  Approval of all material investments and disposals at  Yielding: US$ 3.67Bn the Board of Directors level  Developments: US$0.03Bn (3) (not consolidated)  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 1%  Close involvement of O1 professionals ensures and Leasing Total value = US$3.7 Bn optimal management of the centres and their client Yielding assets = US$3.67 Bn relationships Development (not consolidated)  Full control of asset performance (tenant = US$0.03 Bn performance, etc.)  Established relationships with Moscow planning authorities and other relevant government authorities  Experienced in-house team for supervision of Development development 99% Supervision  Regular interaction with local authorities helps ensure 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 31 December 2012; assets ownership as of 01 February 2013 6 2. NRA including only yielding assets; except development projects (incl. White Square but excl. Olympia park ) 3. O1 stake in development project is 50%

Asset Quality: Diversified Portfolio Across Moscow Yielding Assets make up 99% of Portfolio Value Current Portfolio (1) 100% Moscow Office Sheremetyevo Yielding Assets Airport Krugozor White Square Feb 2013 Value (US$ Bn.) 3.7 Ducat III Stanislavsky NRA (sq. m) 426,793 Sheremetyevskaya $29 MM Occupancy 98% Avion Le Fort $107 MM Lesnaya Plaza White Square $261 MM Lesnaya Plaza Le Fort LOI’s 0,2% Silver City $280 MM $1 002 MM $361 MM Ducat III Stanislavsky Factory Annualized 2013 NOI $380 MM 336 Kremlin $256 MM ($ MM) (2) Lighthouse Weighted Average ERV $237 MM Lighthouse Silver City 752 Vivaldi Plaza (US$) $423 MM Avion Vivaldi Plaza Krugozor $359 MM MKAD Vnukovo Development Projects Ring Road Airport Sheremetyevskaya Yielding Asset Value: $0.03 Bn Development Project NRA: 31 171 sq m Domodedovo Completion: 2016 5 km Airport Notes 1. Olympia park was sold in Feb 2013, all data are given without Olympia park 2. Annualized full occupancy NOI as of Feb 2013 incl. parking 7 7 3. O1 owns a 50% interest in Sheremetyevskaya

Strong Board Value-Add Board Members and Strong Corporate Governance Independent Non-Executive Directors Richard Gregson John Nacos Timothy Fenwick Former Real Estate Leader of Former Global Head of Former Head of Jones Lang PWC, Russia Real Estate, Deutsche Bank LaSalle, Russia Appointed to the Board in Joined in August 2011 June 2012 Joined in July 2011 Chairman of O1 Strategy and Chairman of audit committee Chairman of remuneration Development committees committee Executive Directors Dmitriy Mints Alexander Michael Tomasz Ostrovskiy Stanton Zamiara Chairman of the Board and Chief Investment Chief Operating Chief Financial Chief Executive Officer Officer Officer Officer Corporate Governance  The composition of the Board of Directors is well balanced; 3 out of 7 Board members are independent non-executive directors, all are active industry participants with significant experience in real estate and real estate finance  All three committees (audit, nomination and remuneration, strategy and development) are headed by independent directors Strong Alignment of Shareholder Interests  Founding shareholder (Boris Mints) remains committed to the ongoing business strategy 8

Group structure chart (pro-forma) 85% 9

Market Overview 10

Key Highlights Market Position 1) Russian Economy demonstrating strong macroeconomic position 2) Within Russia, Moscow demonstrates position of economic concentration 3) Moscow market has particularly attractive characteristics for office real estate 4) Moscow – Investment into Real Estate Rising 5) Leading Class “A” Office Player in Moscow Market 11

1) Macros: Lowest debt levels Source: The Economist (Global debt guide September 2012) 12

2 ) Moscow: Russia’s Office Market Moscow Office Market 5 times larger than St Petersburg Moscow Office Stock & Vacancy Breakdown 1.20 MM sq m (11.4% of Class B) 2.14 MM sq m 0.42 MM sq m (16.6% of Class A) Class A Vacant class A Class B 9.34 MM sq m Vacant class B Total Stock (sq m): 13.1 MM Source: Cushman & Wakefield, as of Feb 2013 13

3) Moscow Office Market: Low Levels Class A Stock Attractive Yield Dynamics New office Construction 8,5 % Million sq.m. 8 7,3 2 500 6,4 6,3 6,0 2 000 5,8 6 4,5 4,5 1 500 4,0 4 2,9 1 000 2,1 1,8 500 2 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Moscow Warsaw Madrid Budapest Paris (France) London (UK) Class B (B+ and B-) Class A (Russia) (Poland) (Spain) Office yield Government bonds yield Source Cushman & Wakefield, as of Feb 2013 Moscow’s Stock & Vacancy Low Relative Stock Per Capita Population (MM) 15.0 Moscow Paris 10.0 London New York Milan 5.0 Budapest Madrid Frankfurt Warsaw 0.0 Prague 15.0 30.0 45.0 60.0 Total Office Stock (sq m MM) Source Cushman & Wakefield, as of Feb 2013 Source Cushman & Wakefield, as of June 2012 14

4) Increasing Investments into Real Estate Foreign Participation Small But Rising Recent foreign investment transactions Rentable area, Estimated Value, US$ Name Market YEAR Investor sq m MM Metropolis Shopping Center Moscow 2013 200,000 Morgan Stanley (MSREF) $1 200 Galleriya St Pete 2012 192,000 Morgan Stanley (MSREF) $1 100 Actor Gallery Moscow 2012 18,000 SOFAZ $133 Metropolis Bldg B Moscow 2012 25,000 Heitman $250 Nagatino I-Land Moscow 2012 24,995 Raiffeisenbank $95 Bakhrushina House Moscow 2012 4,159 Sponda Plc $47 Mercury City Moscow 2012 10,000 Japan Tobacco International N/A Golden Babylon Moscow 2012 240,000 Immofinanz $250 Pushkino Logistics Moscow 2012 212,600 Raven Russia $220 G - 11 Moscow 2011 9,000 Hines $94 • In 2007, Russian investors and foreign investors reach represented roughly half of the investment market • In 2009, foreign investment was largely absent • Foreign investors gradually returning to the market but market still driven by local market participants 15 Source: Cushman & Wakefield as of Feb 2013, Jones Lang LaSalle Feb 2013