Q1 2016 Investor Presentation by AFI Development

Q1 2016 IR Presentation FINANCIAL & BUSINESS RESULTS May 2016

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.

Company Overview SECTION 1

AFI Development at a glance Market Cap, as of 17 May 2016 Mkt price GDR, as of 17 May 2016 Mkt price B share, as of 17 May 2016 NAV (Equity), as of 31 March 2016 NAV per share, as of 31 March 2016 Portfolio Value*

US$133 mln US$0.120 US$0.099 US$814 mln US$0.78 US$ 1.4 bn

BUSINESS

PORTFOLIO VALUE*

HISTORY *Gross Asset Value of Portfolio based on JLL Valuation as for 31 March 2016 and BSV of Land Bank projects, Trading Properties and Hotels (incl. JV)

BRAND

•Full cycle real estate developer •Focus on unique large scale commercial and residential projects •Primary market: Moscow, Russia

•14 years on the market •Admitted to LSE in 2007 •Premium listing from 2010 •Free float – 35.12%

•Strong global brand •Subsidiary of Africa Israel Group (64.88% owner) , an international conglomerate with global focus on real estate, construction and infrastructure

FINANCIAL STABILITY

• Liquidity position: US$42.4 million as at 31 December, 2015 • Secured financing for on-going projects • 42% Debt to Total Assets ratio**

TRACK RECORD

•14 completed projects with total c. 0.6 mln sqm of space •Impeccable credit history •Market reputation for high quality and professional property management

PORTFOLIO

• Substantial income generating portfolio. Major project AFIMALL City • 8 Development Projects & land bank

** Bank loans only

Key Projects in Moscow Yielding Projects (retail, offices and hotels) US$942 mn

Value** (JLL, 31 March 2016): Plaza II, Plaza Ib

Riverside Station Riverside St-n

AFIMALL

PLAZA SPA Kisl*

PLAZA SPA Zhel*

Aquamarine III

GLA (excl. hotels), sqm:

193.1K sqm

* Outside of Moscow * * Hotels presented at cost value Aquamarine Htl

Paveletskaya I

H2O

Projects Under Development Value**

US$433 mn

( JLL, 31 March 2016): Odinburg**

Paveletskaya II

Plaza IIa

KOSSINSKAYA Kossinskaya

Plaza Ic

B. Pochtovaya

Botanic Garden

Plaza IV

GLA, sqm:

231.4K

GSA, sqm:

730.7K

** Odinburg and Botanic Garden presented at cost value

Land Bank Yielding Projects Value (BSV):

Projects under Development Completed Assets

US$7 mn

Note: the NOI projections are â&#x20AC;&#x153;forward looking statementsâ&#x20AC;? based on JLL 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

Project Update. Yielding Projects SECTION 2

AFIMALL City Update

Ownership:50%

(as of March 2016) Total GBA, sqm

283.2K

Total GLA(shops, offices, storage), sqm

107.2K

Occupancy

(as part of GLA total)

Parking lots Terminal NOI (JLL est.)

82%

 The occupancy level was at 82% at the end of March 2016, a 4% increase compared to end of Q4 2015.  During the quarter, AFIMALL City welcomed several new tenants, including B&G Store (children apparel), Pepen (women apparel) and Mario Mikke (shoes and accessories).

2,075 US$ 87.55 mn

MV (JLL est.)

US$ 666 mn

Loan balance as for end of Q1, 2016

US$ 420 mn

ITEM, US$ million (1) Revenue (2) Operating expenses (3) NOI

Actual Actual Q1 2016 Q1 2015 16.1 19.1 -3.7 -5.4 12.4 13.7

* During Q1 2016 the Company received a court ruling for AFIMALL City as for the calculation of property tax. This ruling allowed the Company to reverse circa US$3m as other income

Note: the NOI projections are “forward looking statements” based on JLL 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

Yielding Properties Building

AFIMALL

Ozerkovskaya III*

Berezhkovskaya Tverskaya Plaza II

Tvesrkaya Plaza Ib

Paveletskaya I

Aquamarine Hotel

Moscow

Moscow City

CBD

Moscow

CBD

Retail

Office A & Street Retail

Office B

Office & Street Retail

Office B

GBA, sqm

283 182

61 579

11 612

5 848

2 338

16 246

GLA, sqm

107 208

46 247

10 250

4 967

2 050

2 075

466

140

82%

61%

87.6

28.8

666

197

Location Class

Parking lots (total), # Ocupancy rate (31.03.2016), % NOI term., (JLL est.), US$ mn MV**, US$ mn

Moscow

H2O Moscow

Plaza SPA Kislovodsk

Moscow

Plaza SPA Zheleznovodsk

TOTAL

Caucasus region

Hotel

10 080

8 931

25 000

11 701

437K

13 412

8 990

159 keys

275 keys

134 keys

193K

126

98%

89%

57%

2.7

1.5

0.6

2.5

11.5

9.2

3.4

11.5

CBD

78%***

76% ***

75%***

1.7

125

8.9

13.1

9.1

942

11.6 ****

* GBA and GLA presented after disposal of Bld. 1. ** MV based on JLL valuation as for 31.12.2015 (AFIMALL and Ozerkovskaya III have updated valuations as of 31.3.2016). Hotels presented at cost value *** The hotel occupancy is presented as the annual average **** MV of the Plaza Spa Kislovodsk is presented as 50% (the Company share in the project)

Project Update. Development Projects SECTION 3

Odinburg Residential GBA, 821.1K sqm GSA residential, sqm 453.0K STATUS: Construction Bld.#2 SALE STATUS: Bld#1, Bld#2 are on sale Ownership:50%

Other 10

Odinburg Residential OVERVIEW  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). A new highway to Moscow is in close proximity to the complex.  The entire residential district takes up an area of 33 hectares, which will host eight 8-to-25 story buildings. The residential element will offer 9,059 apartments and a total sellable area of 453K sq.m. (Including city share).

Ownership:50%

CONSTRUCTION STATUS and SALES  As of today, 698 out of 723 contracts for sales of apartments in Building 1 (37.7K sqm) have been signed, while for Building 2 158 out of 706 contracts (6.7K sqm) have been signed. (as of March 2016) Type

Residential

GBA, sqm

821.1K

GSA, sqm/GSA commercial total: GSA resi (Phase I), sqm: GSA resi (Phase II), sqm: GLA commercial, sqm: Apartments, total : Phase 1: Phase2: • Stage 1 • Stage 2 Parking units:

453.0/19.6K 150.9K 311.9K 16.8K

9,142 2,569 6,573 723 (Sold 698) 706 (Sold 158) 4,563

 Parking units: Building 1: 39 units out of 71 sold to date. Building 2: 4 units out of 71 sold to date.  Construction of Bld.#2 is ongoing. Bldg#1 completed, delivery of apartments started in March  Construction is funded with proceeds from sales. APARTMENTS DELIVERY

# of delivered appartments Total sq.m. delivered

Bldg 1 (delivered in Q1 2016) 104 6 050

Revenue

7 297 427

Cost of sales

6 182 248

Net profit Net profit margin

1 115 179 15%

AFI Residence Paveletskaya As of March 2016 GBA (total), sqm:

133.5K

GBA (phase 1), sqm

50.4K

GSA (total), sqm:

78.8K

Flats (total), amnt

549

Flats (phase 1), amnt

175

“Apartments” (total), amnt

220

“Apartments “ (phase 1), amnt

220

Commercial space, sqm

17.1K

Commercial space (phase 1), sqm

5.8K

Book value, US$ mn:

56.4

According to common market practice in Russia and to applicable Russian laws, preliminary sales of apartments during construction are done in the form of “contracts of participation in construction”, which are executed between the developer and purchaser of an apartment. These contracts are registered with state authorities and enter into legal force after this state registration. However the Company considers that signed contracts have high probability of registration and entering into legal force and reports “units sold” as the number of contracts signed with the apartments purchasers. “Apartments” are premises legally not zoned for housing, but are widely sold for residence (a person cannot register in this address, but the premises cannot be used for housing). The prices of ‘apartments’ are normally lower than this of similar flats

 Construction of Phase 1 started in December 2015.  As of 17 March 2016, contracts for 45 flats and 4 “apartments” have been signed.

 Parking lots sold: 32 units.

(properly zoned housing units).

Development Projects - Residential POCHTOVAYA

PAVELETSKAYA II

Botanic Garden

(as March 2016) (as of March 2016) Type

Resi

GBA, sqm

133.5K

GSA/GLA, sqm

78.8/17.1K

Parking

1,760 pp

Status

Construction launched in Q4 2015

MV, US$

55.5 mil

Pochtovaya

Type

Resi

GBA, sqm

170.3K

GSA/GLA, sqm

56.9/34.2K

Parking

1,771 pp

Status

Launch of construction in H2 2016

MV, US$

71.5 mil

Paveletskaya

BOTANIC GARDEN

(as of March 2016)

Other

Type

Resi

GBA, sqm

255.0K

GSA/GLA, sqm

107.5/5,1K

Parking

1,334 pp

Status

Construction permit received. Project concept being reviewed

MV, US$

18.6 mil 13

Development Projects - Commercial PLAZA IC

KOSSINSKAYA

(as of March 2016) Type GBA, sqm GLA, sqm Parking

Office A 61.8K 37.0K 467 pp

Status

Ready for construction launch 65.5 mil

MV, US$

(as of March 2016) Type GBA, sqm GLA, sqm Parking MV, US$

Plaza IV Plaza IC

Mixed use 108.0K 70.0K 1,200 pp 27.8 mil

Kossinskaya

PLAZA IV*

(as of March 2016)

Other

Type GBA, sqm GLA/GSA, sqm

Office A 108.0K 58.6/2.7K

Parking Status

1,210 pp

MV, US$

Preparing for construction 68.6 mil

*For 100% of the project

Financial update SECTION 4

Consolidated P&L

Actual Actual Q1 2016 Q1 2015

ITEM, US$ million (1) (2) (3) Ownership:50%

Construction consulting/management services Rental income Sale of residential and trading property

(4) TOTAL REVENUE (5) (6) (7) (8) (9)

Other income Operating expenses Administrative expenses Cost of sales of residential and trading property Other expenses

(10) TOTAL EXPENSES (11)

Share of profit of equity-accounted investees

0.0 20.0 7.3

0.0 24.4 -

27.4

24.4

2.2 (7.7) (1.7) (6.2) (0.0)

1.1 (11.4) (2.7) (0.4)

(13.4)

1.1

0.1

(12) GROSS PROFIT (LOSS)

15.1

11.2

(13) (14)

(60.3)

21.4

(15) RESULTS FROM OPERATING ACTIVITIES

(45.2)

32.0

(16) (17) (18) (19)

(0.0) 0.7 (10.7) 20.5

1.5 (11.3) (16.2)

10.5 (34.7)

(26.0) 6.0

(0.1) 2.9

(0.2) 0.3

Valuation gain (loss) on investment property Impairment loss for trading property and hotels Profit on sale/disposal of properties/investment Finance income Finance expenses FX Gain/(Loss)

(20) Net finance income/(costs) (21) PROFIT BEFORE INCOME TAX (22) (23)

Current income tax Deferred income tax

(24) PROFIT (LOSS) FOR THE PERIOD

(31.9)

* Other income mainly due to property tax repayment

6.0

Other 16

Balance Sheet as of 31 March 2016 #

(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) (32) (33) (34)

Investment property Investment property under Investment in Joint Ventures Property, plant and equipment Long-term loans receivable VAT recoverable Inventory of real estate Total non-current assets Trading property Trading properties under 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 Capital reserve Retained earnings TOTAL EQUITY Minority interest Long-term loans and borrowings Deferred tax liabilities Deferred income Total non-current liabilities Short-term loans and borrowings Trade and other payables Advances from customers Income tax payable Total current liabilities

(35) TOTAL LIABILITIES (36) TOTAL EQUITY AND LIABILITIES

31.03.2016 31.12.2015 31.03.2015 Change YoY US$ mn US$ mn US$ mn US$ mn % 912.6 933.7 1 375.4 (462.8) (32%) 237.0 238.9 431.5 (194.4) (33%) 0.0 0.0 0.0 0.0 28.3 26.3 33.5 (5.2) (3%) 9.5 14.3 17.6 (8.1) (36%) 0.0 0.0 0.0 (0.0) (9%) 20.4 18.6 20.1 0.3 12% 1 207.9 1 231.8 1 878.2 (670.3) (32%) 35.2 2.1 2.9 32.3 1545% 178.7 204.4 134.9 43.9 (15%) 0.5 0.5 0.5 (0.0) 26% 4.5 0.1 0.1 4.4 4077% 29.5 29.0 39.4 (9.8) (22%) 1.7 1.6 1.4 0.3 11% 32.5

42.4

74.7

(42.2)

282.7 1 490.6

280.1 1 512.0

253.9 2 132.0

1.0 1763.4 (324.7) (9.2) (652.3) 778.3 (3.9) (0.0) 18.8 9.1 27.9 612.9 22.3 53.0 0.0 688.2

1.0 1763.4 (339.0) (9.2) (620.8) 795.5 (3.9) 389.8 25.6 8.5 423.9 224.3 18.2 54.0 0.0 296.5

1.0 1763.4 (320.7) 0.0 (152.4) 1 291.4 (8.7) 632.7 103.6 12.2 748.5 30.6 24.5 45.7 0.0 100.8

712.3

716.4

840.7

(125.4)

(15%)

1 490.6

1 512.0

2 132.0

(595.2)

(29%)

* Change in AFIMall value due to the decrease in rental rates

(48%)

28.8 (10%) (641.4) (29%) 0.0 (0.0) 0.0 0% (3.9) (1%) (9.2) (499.9) 265% (513.1) (38%) 4.8 553% (632.7) (100%) (84.8) (84%) (3.1) (1%) (720.6) (96%) 582.3 1178% (2.2) 12% 7.3 (0%) 0.0 587.4 470%

* In Q1 2016 AFIMall loan was reclassified from non-current to current liabilities.

Loans and cash position as of 31 March 2016  Gross balance of the bank loan portfolio (as of 31 March 2016) – US$611 million  Total cash balance and deposits (as of 31 March 2016) – US$35.1 million (including marketable securities)

Project

Bank

Historical debt limit

VTB AFIMALL TOTAL AFIMALL

TOTAL/AVERAGE RATE

Available (US$ mn)

Nominal Interest rate

Currency

$143

9.5%

RUB

$277

3m Libor + 5.02%

USD

$420

6.74%

3m Libor + 8% from 24.01.15 to 20.03.15 3m Libor + 7% from 21.03.15 to 26.01.18

RUR 21 bn VTB

Ozerkovskaya III

Balance as of March 31, 2016 (US$ mn)

VTB

$220

Maturity

01.04.2018

$191

$611

USD

26.01.2018

6.90%

Financial covenants On 29 March 2016 the operating subsidiary of the Company, AFI RUS LLC received a letter from Bank VTB PJSC ("the Bank"). The letter stated that the Bank had reached a conclusion that Bellgate Construction Limited and Krown Investments LLC (the borrowers under the AFIMALL City and the Ozerkovskaya III loan facilities respectively) had experienced, in the opinion of the Bank, material adverse changes in their financial conditions and there had appeared other circumstances that indicate that their obligations under the loan facility agreements could be not met on time. According to the letter, the Bank proposed that the Company "implement steps aimed at removing possible negative consequences of the aforesaid circumstances, no later than 30 calendar days from today", otherwise the Bank will exercise its right under the loan facility agreements to claim early repayment of the loans. Based on this, the total amount of the outstanding loan of Bellgate Construction Ltd (US$420 million) was also reclassified to current liabilities. The Bank and the Company are considering the possibility of reaching an agreement to release the AFI Development Group from both loans owed to the Bank of current balance of US$611.1 million. The Bank has communicated to the Company that it expects to conclude the negotiations not later than 31 May 2016

Gross/Net Asset Value PROJECT

Book Value Book Value Bank Loan 31.12.2015

AFI Mall Berezhkovskaya (100%) Paveletskaya I Plaza H20 Ozerkovskaya III Plaza Ib Plaza II Sadovaya -Samotechnaya TOTAL INVESTMENT PROPERTY: Plaza Ic Plaza II a Plaza IV (100%) Kossinskaya Bolyshaya Pochtovaya Paveletskaya II Ruza

31.03.2016 31.03.2016

31.03.2016

685 16 12 9 199 3 9 1 934

666 16 12 9 197 3 9 1 913

66 2 69

66 0 69

28 71 0 4

TOTAL INVESTMENT PROPERTY UNDER DEVELOPMENT:

239

237

Ozerkovskaya Phase II (26) Odinburg Aquamarine Hotel Plaza SPA Zheleznovodsk Pyatigorskaya (Park Plaza Kislovodsk) Plaza Spa Kislovodsk (JV) (50%) TOTAL PROPERTY PLANT AND EQUIPMENT: Odinburg Botanic Garden Paveletskaya II

2 0 2 13 9 3 12 37 148 19 56

2 33 35 14 10 4 12 40 119 20 59

TOTAL TRADING PROPERTY UNDER DEVELOPMENT:

223

199

1 435

1 424

(611)

813

TOTAL TRADING PROPERTY:

TOTAL PORTFOLIO:

(420)

Net Company Share

(191)

(611)

246 16 12 9 6 3 9 1 301

Loans To Assets Value = 43% (LTV ratio) Loans To Equity (LTE ratio)

= 79%

237 2 33 35 14 10 4 12 40 119 20 59

CASH AND CASH EQUIVALENTS DEFFERED TAX LIABILITY TOTAL OTHER ASSETS AND LIABILITIES

33 (19) (48)

TOTAL EQUITY:

778

Market Update SECTION 5

Macro Overview and RE Investment Market RUSSIAN MACROECONIMIC OVERVIEW • Russian economic growth: In 2015 the Russian economy contracted by 3.7%. Based on Q1 2016 data, Oxford Economics projects further 2.1% contraction in 2016 (baseline scenario). • Exchange rates: With the oil prices rebounding in Q1 2016, the spot RUR/USD rate fluctuated between 67.5 and 82.63. The rouble is currently trading in the range 65-68 roubles per dollar. The rate at 31.03.2016 was RUR67.6076. • The Central Bank of Russia (“CBR”) continues to keep the key lending rate unchanged at 11% in order to control inflation (the rate was not changed in the April meeting). • Inflation: The inflation continues its downward trend, after sharp decrease in 2015. The consumer prices inflation in March 2016 was at 7.3% (annualised). However it remains well above the CBR long-term target of 4%.

RUSSIAN REAL ESTATE INVESTMENT MARKET • In Q1 2016, about US$1.9 billion (CBRE) were invested by domestic and foreign investors in Russian commercial real estate • According to CBRE, 56% of the volume was invested in the office segment, which remains the most attractive, and 30% in hotels. 7% were invested in warehouses (the notable transactions were the disposal of the hotel portfolio of the Russian Railways and of two PNK warehouses) Forecasted Investment Volume in 2016 (USD billion)

JLL

CBRE

C&W

4.5

N/A

* JLL estimation excludes acquisitions by end-users and joint ventures

CBR key lending rate and inflation

Source: Oxford Economics Source: Rosstat, CBR, Oxford Economics, C&W, JLL, CBRE

Office and Retail Markets Overview OFFICE MARKET OVERVIEW

RETAIL MARKET OVERVIEW

• The take up in Q1 2016 demonstrated 17% growth compared to Q1 2015. 167.6 thousand sqm of quality office premises were taken up during the quarter, versus 143.3 thousand sqm in Q1 2015. The delivery of quality space amounted to 63.1 thousand sqm for the quarter, all of them in Class B (a drop of 30% vs Q1 2015).

• No new shopping centres were opened in Moscow in Q1 2016, while the JLL estimation for the whole 2016 is 460,000 sqm of GLA.

• The vacancy rates in class A and B are high: In Class A the vacancy in was recorded at 23.1% (vs 24.3% in Q1 2015) and in Class B at 15.4% (vs 12.2% in Q1 2015). Vacancy in the Moscow-City submarket is estimated at 16.4% (JLL). • In Q1 2016 the rents remained relatively stable. Asking rents for Class A non-prime central premises were at US$600750 psqmpa. Asking rents for off-centre Class A office buildings were US$400-600 and for Class B $200-400. Rouble denominated rents prevail in Class B space and in non-prime Class A. Key indicators Base Rent, US$ psqmpa

Units

• Eight new brands entered the market in Q1 2016, mainly in the fashion, footwear & accessories category. • The vacancy rate as of the end of 2015 was at 8.0% (JLL). • The fixed exchange rates are commonly provided to tenants, while most new leases are roubledenominated. Turnover rent with a low minimum rent is the most common lease structure.

C&W Prime rental rate indicator, US$ psqmpa

Key indicators

Units

Prime rent, US$ psqma

1,5003,220

Base rent Class A (Prime), US$ psqmpa

600-800

Base rent Class A, US$ psqmpa

400-600

(prime shopping centre gallery)

Base rent Class B, US$ psqmpa

200-400

Base rent, US$ psqma

1,230

Vacancy rate,%

8.0%

Overall vacancy,%

17%

Vacancy rate, Class A, %

23%

Source: CBRE Marketview Moscow Office Q1 2016, C&W MarketBeat Q1 2016, JLL Moscow Office Market Q1 2016

Source: JLL Moscow Shopping Centre Market Q1 2016, CBRE Moscow Retail MarketView Q1 2016 22

Residential Market Overview RESIDENTIAL MARKET MOSCOW AND MOSCOW REGION

MOSCOW:

• According to the Moscow Statistics Agency, the volume of commissioned residential construction in Moscow for the first two months of 2016 amounted to 501.6 million sqm, which is 35% higher than in for the same period in 2014 (the official statistics does not include “apartments”, which legally are not considered residential). • At the end of Q1 2016 the supply at the Moscow primary residential market (excluding “apartments”) was about 2.3 million sqm (about 33,500 residential units), an increase of 32% compared to the end of Q3 2015.

Average weighted asking price in primary residential market of “old” Moscow, by districts, end of Q1 2016 (USD/RUR ‘000 psqm)

NORTHERN USD

3,250 219.7

RUR ‘000

MOSCOW REGION (< 30 km from MKAD):

USD

2,770

USD RUR ‘000

RUR ‘000

187.1

WESTERN USD RUR ‘000

2,370 160.3

EASTERN

CENTRAL USD

5,190

RUR ‘000

350.6

3,320 224.4

2,830 191.0

SOUTH-EASTERN USD

2,090

RUR ‘000

141.1

SOUTH-WESTERN USD RUR ‘000

• At the end of Q1 2016, the primary market supply (newly built residential units) in the Moscow region amounted to about 10,139 residential units (a decrease of 2.5% vs Q4 2015). • As of March 2016 the weighted average price per sqm in Moscow region was RUR80,300 (US$1,216, USD/RUB = 66)

RUR ‘000

NORTH-WESTERN

• Supply of “apartments” at the end of Q1 2016 was estimated at 624.5 thousand sqm, a 17% decrease vs end of Q4 2015. The apartments constituted about 21% of the “old Moscow” newly constructed supply. • By the end of March 2016 the weighted average asking price in the newly built business class residential market in Moscow amounted to RUR252,990 psqm (US$3,840, USD/RUB = 66). Compared with the end of December 2015, prices decreased in average by 2.1% in roubles. In the comfort class the weighted average asking price was RUR156,730 psqm (US$2,380, USD/RUB = 66)

NORTH-EASTERN USD

2,850 192.4

SOUTHERN USD RUR ‘000

2,410 162.9

Source: Blackwood Q1 2016 Moscow Residential Market Overview

Source: Blackwood Q1 2016 Moscow Residential Market Overview, Peresvet Q1 2016 Moscow Region Primary Residential Market Overview

2 3