March 2012

Year End 2012 Investor Presentation

FINANCIAL & BUSINESS RESULTS

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.

Disclaimer

2

•Full cycle real estate developer

•Focus on unique large scale commercial and residential projects

•Primary market: Moscow, Russia

BUSINESS

•12 years on the market

•Admitted to LSE in 2007

•Premium listing in 2010

•Free float – 35,12%

HISTORY

•Strong global brand

•Affiliate of Africa Israel Group (64,88% owner) , a major conglomerate with global focus on real estate, construction and infrastructure

BRAND

•Strong liquidity position: S$178mn as at Dec 31, 2012

•Secured financing for on-going projects

• 21% Debt to Total assets**

FINANCIAL STABILITY

•12 completed projects with total c. 600,000 sqm of space

•Impeccable credit history

•Market reputation for high quality and professional property management

TRACK RECORD

•Substantial income generating

portfolio. Major project

AFIMALL

•5 projects are next for development

•Pipeline and land bank

PORTFOLIO

** Bank loans only

AFI Development at Glance

Portfolio Value*

* Gross Asset Value of Portfolio based on C&W Valuation as for

31 Dec. 2012 and BV of Land Bank projects, Trading Properties

and Hotels

Market Cap, as of March 18, 2013 US$ 0.72 bn

Price per share as of March, 18 2013 US$ 0.68

NAV (Equity), as of Dec 31, 2012 US$ 1.63 bn

NAV per share, as of Dec 31, 2012 US$ 1.56

Portfolio Value* US$ 2.48 bn

AFIMALL

47% Delivered

25%

Next for

development

27%

Land Bank

1%

3

Current Portfolio

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

Key Projects in Moscow

Yielding Assets (retail, offices and hotels)

Development Projects m

Ownership:50%

Aquamarine Complex

Four Winds

H2O Office

AFIMALL City Berezkovskaya Aquamarine II

H2O Four Winds***

Aquamarine

Hotel Paveletskaya, 1 Aquamarine III

Tverskaya

Plazas

Kosinskaya

Otradnoe Pochtovaya

Paveletskaya,

Phase # II

Kalinina Hotels**

Plaza Spa **

Berejkovskaya

Paveletskaya, 1

Tverskaya Plazas

Otradnoe Kosinskaya

Pochtovaya, Phase I

Botanic Garden

Paveletskaya,

Phase # II

Other

AFIMALL City

Land Bank and Pipeline **Paveletskaya II, Otradnoe presented as a BV

Tverskaya Ib, II

4

*Ozerkovskaya – 100%

**Outside of Moscow

** *Sold in Q4 2012

Value (C&W): US$ 1.7 bn

GLA(excl. hotels),sqm: 200K sqm

NOI stab*. (AFID share, excl. hotels):

US$ 223 mn

Value** (C&W): US$ 666 mn

GLA(excl. hotels),sqm: 252K

GSA, sqm: 574,3K

NOI stab: US$ 142,3 mn

Value (BV): US$ 23 mn

SECTION 1

Company Update

Achievements 2012 (1/2) STATUS TARGET FOR 2012 COMMENT

FINANCIAL

The Company strengthened the development block

Risk management and internal control have been improved

ACQISITION AND DISPOSITION

FOUR WINDS

OZERKOVSKAYA III

PLAZA SPA KISLOVODSK

STRENGTHEN SMT

AFIMALL PARKING

MANAGEMENT

Increased the credit line limit with VTB bank on project AFIMALL ( + USD110 mn additional

cash for the Company) with lower interest rate (8,2% vs 9,6%)

Decreased the Company average interest rate from 9,4% to 8,1%

(saving c. US$7,6 mn)

Obtained the new loan facility in the amount of US$ 220 mn with VTB to refinance

construction costs on Ozerkovskaya III project with lower interest rate

( LIBOR+5,7% vs 13%)

Made the early debt repayment with Sberbank on Ozerkovskaya III project ( US$ 47 mn)

Reimbursed the VAT in the amount of US$ 48 mn

Completed the group finance restructuring, as a result US$ 5 mn saving on income tax

DEBT SERVICE COSTS

REFINANCING

Disposal of 643 parking lots to VTB was finalized - the resulting estimated total net cash flow for the Company is US$ 57.1 mn, net profit is c. US$20 mn

The transaction relating to the disposal of 50% share in its subsidiary, Westec Four Winds Limited was finalized. The consideration is US$103.4 mn for AFID share, c. US$ 50 mn as a net profit

The company acquired the share of its partner and settled all outstanding liabilities, for a total cash consideration of US$ 227.5 million in Ozerkovskaya III project

The company acquired the shares of operating company of Plaza SPA Kislovodsk, the result: increase in revenue in US$ 1,3 mn

Main Achievements during 2012 (1/2)

6

VAT

FINANCIAL RESTRUCTURING

Achievements 2012 (2/2) STATUS TARGET FOR 2012 COMMENT

BOLSHAYA BOCHTOVAYA

PAVELETSKAYA

FOOTFALL: Daily average footfall increased 36% and reached 40K in Dec 2012 vs 28K in

Dec 2011

COLLECTIONS: The Company recognized income of US$ 3.5 mn as decrease in bad debt

provision

AFIMALL PARKING was fully constructed and put into operation (c. 2,075 parking units)

AFIMALL recognised at the prestigious “International Property Awards Europe” for

excellence in development quality and highest level of customer experience

DELIVERY: the project has been delivered in Q2 2012; operational permit is on place;

negotiations with potential buyers and tenants are in progress

DELIVERY: the project has been delivered in Q2 2012 and put into operation; the hotel

experienced significant demand from customers and has already obtained positive feedback

from its guests. The occupancy was higher than budgeted: 50% on actual vs 30% budgeted

CONSTRUCTION

KOSINSKAYA

TVERSKAYA PLAZAS

REPAIR WORKS: Performing of capital repair works has been started. The project is

planned as a mix-use complex with concept for small DIY(do-it-yourself) shops and

offices

OFFICES CLASS “A”: The process of securing approvals is ongoing. The first

milestone achieved – the land lease certificate for PLAZA IC is in place (GBA – 51K

sqm and GLA – 32,5K sqm)

DEVELOPMENT RIGHTS: Both projects are under active development stage. The

GZK and GPZU were obtained with following parameters:

- Bolshaya Pochtovaya: GBA: 170,6K sqm, where 67,8K is residential and 39,2 sqm is commercial

- Paveletskaya: GBA: 151,4Ksqm,where 61,4K is residential and 15K sqm is commercial. The

Company is working on securing the land lease agreement to allow construction in accordance with the

new development documentation as well as on the planning and design of the project.

OPERATION

AFIMALL

Main Achievements during 2012 (2/2)

OZERKOVSKAYA III

PLAZA SPA

ZHELOEZNOVODSK

7

-70

-50

-30

-10

10

30

50

70

Pri

ce

Ch

an

ge

(%

)

AFI DEVELOPMENT-GDR REG S AFI DEVELOPMENT PLC - B SHS MIRLAND DEVELOPMENT CORP LSR GROUP OJSC-GDR REGS

PIK GROUP-GDR REG S ETALON GROUP-GDR REG S RGI INTERNATIONAL LTD

Company share performance in 2012

The diagram shows

Company share price

performance over 2012.

The December 2011

value is assumed at 0

Up to 60%

Company share performance in 2012

8

0.86 0.82 0.81

0.67

0.42 0.38

0

0.2

0.4

0.6

0.8

1

LSR PIK Etalon RGI Mirland AFI Dev

14% 18% 33% 19% 58% 62%

% Discount to NAV

AFI shares –

fundamentally

undervalued stock

Projects Update

SECTION 2

AFIMALL City Update (1/3)

PROJECT HIGHLIGHTS 100%

(as of December 2012) share

Total GLA(shops, offices, storage), sqm 107.2K

Total GLA shops only, sqm 96,8K

% of GLA shops only 77%

Stabilized NOI (C&W est.) US$156.9 mn

MV (C&W est.) US$ 1.160 bn

Loan balance as for December, 2012 US$ 536 mn

30K

40K

- 5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 Daily Average Footfall ('000 visitors)

Workdays average Weekends average Daily average

AFIMALL City Project Highlights

ACHIEVEMENTS in 2012:

During the year 2012 the Mall has continued to see increases in footfall, growing at the rate of c. 5% per month. The average daily footfall in December has reached c. 40K visitors

The occupancy is stable, showing rate in 77% as it was on the end of the 2011 year

Stable development and gradual occupancy rate is also the main trigger in surrounding office and residential buildings

The company refinanced the project with a total multi-currency credit line of US$ 666 mn, reducing the average interest rate from 9.6% to around 8.2%

The underground parking space, purchased in December 2011 has been put into operation and now available for all costumers, serving shopping center with c. 2,075 parking spaces

The agreement with VTB on acquisition of 643 parking lots has been finalized. The resulting estimated total net cash flow for AFI Development is US$57.1 mn and net profit expected in 2013 is circa US$20 mn

10

AFIMALL and Moscow-City Development (2/3) MOSCOW CITY DEVELOPMENT

EXISTING OFFICE COMPLEX

0 – Tower 2000

4 – Imperia Tower

9 – Capital City

10 – Naberezhnaya Tower

13a – Federation Tower (Zapad)

19 – Northern Tower

PLANNED/UNDER CONSTRUCTION

2, 3 – Evolution Tower

8 – CityPoint

11 – Transport Terminal

12 – Eurasia Tower

13b – Federation Tower (Vostok)

14 – Mercury City Tower

15 – Moscow City Government Building

16a – OKO

16b – Parking

17, 18 – Russia Tower

20 – Exposition and Business Center

OTHERS

1 – Expocenter

6, 7 – Central Core (AFIMALL

City)

2013 – section between Delovoy Center and Park Pobedi

2015 – metro line from Tretiyakovskaya till Ramenki

AFIMALL

FUTURE DEVELOPMENT OF TRANSPORTATION STRUCTURE(SUBWAY)

By the end of 2012 circa 500K sqm of office building have been completed

According JLL report as of November 2012 in 2013 additional 308K of leasable area will be build up in CityPoint, Mercury City Tower, Federation Tower (Vostok), Eurasia Towers

Employees of office tenants of Moscow City represent significant percentage of the Mall’s footfall and therefore additions to completed and let office space in Moscow City shall bring additional customers to AFIMALL City (Employees will incease mora than double)

AFIMALL

NOVATEL

AFIMALL and Moscow-City Development

11

Yielding Properties

12

*ADR, NOI – company data for hotels

Cap Rate based on C&W valuation as for 31.12.2012

**Asset sold in December 2012

Building AFIMALL Four

Winds***

Four Winds

F&R***

Berezkovskaya Paveletskaya, bld.

1

H2O Tvesrkaya

Plaza Ib

Tverskaya

Plaza II

Ozerkovskaya

III

Aquamarine

Hotel*

Plaza Spa*

Kislovodsk

Plaza SPA

Zheleznovodsk*

TOTAL

Ownership 100% 50% 50% 74% 99.1% 100% 100% 100% 50% 100% 50% 100%

Moscow Moscow Moscow Moscow Moscow Moscow Moscow Moscow Moscow Moscow

Moscow City CBD CBD CBD CBD CBD CBD

GBA, sqm 304,205 28,241 5,970 11,612 16,246 10,698 2,104 6,008 73,346 11,130 25,000 9,526 504K

GLA, sqm 107,208 22,035 5,069 10,250 14,085 8,990 1,909 6,008 55,423 159 keys 274 keys 134 keys 200K

Parking lots (total), # 2,075 138 78 150 126 81 - - 551 15 - 15

Ocupancy rate, % 77% 100% 100% 94% 93% 99% 98% 72% - 70% 63% 54%

Average rent as of

31.12.2012, $/sq m1,243 1,428 556 600 362 377 677 493 750-500 ADR 187 ADR 367 ADR 171

Class Retail Office A Street Retail Office B Office B Office B Street retail &

Office

Street retail &

Office

Office A &

Street Retail Hotel Hotel Hotel

NOI stab (C&W

est.), US mn156.9 15.9 2.0 5.8 4.6 2.9 1.4 4.3 46.7 5.0 4.6 3.5 236

NOI Year 2013 (C&W

est.), US mn 77.7 5.0 3.5 2.4 1.1 3.3 10.4 2.7 3.7 3.2 113

MV/BV (AFID

share),US$ mn1,160 160 18 32 30 19 10 31 195 34 26 24 1,738

CAP Rate** 10% 9% 9% 12% 13% 14% 12% 12% 10% n/a n/a n/a

Location Kavkaz region Kavkaz region

12

Projects next for Development

Development Update 2012 DEVELOPMENT ASSETS

FOUR

WINDS

OZERKOVSKAYA

III

PLAZA

SPA

The City is progressing with renewing and re-approving the Company’s development rights and leasehold

interests in land plots at the Plaza Ic (part of Plaza I), Plaza IIa and Plaza IV projects

In Q2 2012 the Company reclassified Tverskaya Plaza Ib and Tverskaya Plaza II from “investment properties

under development” to “investment properties”. This was also reflected in the change of valuation approach,

implemented by the independent appraiser (Jones Lang LaSalle) by valuing the assets as yielding properties,

rather than as development projects

The registration of 10 years land lease in November 2012 for Plaza 1c represents significant milestone in

the development process

Construction start in Q4 2013 for Plaza IC

The Company had to re-visit development concept of the project to build a property of higher quality

The Company is started capital repair works in the property

The project involves a construction of multistory residential micro district consisting of two phases:

Phase I – construction of 22-section residential building, named Korona (Crown), construction of infrastructure (Kindergarten, School) with total sellable area of 149,432 sqm (2,620 apartments);

Phase II – construction of 8 residential buildings, construction of infrastructure (Kindergarten, school, outdoor multi-level parking) with total sellable area of 319,775 sqm (6,247 apartments)

The design of the “Otradnoe” micro district is approved by the government of Moscow

The Company has approved a general contractor for the project

Based on the planned construction density the Company obtained “GZK” and the land plot master-plan “GPZU” in respect to the property

The development of total gross building area of 170,3K sq.m, where 67,8K sq.m of residential area, 39,2K sq.m of commercial area and 62,2K sq.m. of underground area

The Company is working on design and planning of project

TVERSKAYA

PLAZAS

KOSINSKAYA

OTRADNOE

The Company obtained “GZK” and the land plot master-plan (“GPZU”) with new parameters for the future development. GBA of the project is 151,3K sq.m, where 61,4K sq.m of residential area, circa 15K sq.m of commercial area and 57,3K sq.m of underground space*

The Company is currently working on obtaining land lease agreement for construction in accordance with the development plan

Book Value of the project is US$ 12 mn; MV - US$ 117 mn

OTRADNOE

(ODINTCOVO)

POCHTOVAYA

PAVELETSKAYA

PARAMETERS:

Type: Office

GBA, sqm: 169,7K

GLA, sqm: 101,4K

• Ic: 32,5K

• Iia: 7,6K

• IV: 61,4K

Total MV(C&W): US$ 306,6 mn

As of 31.12.2012

PARAMETERS:

Type: Mix

GBA, sqm: 111,7K

GLA, sqm: 90,3K

MV(C&W): US$ 102,7 mn As of 31.12.2012

PARAMETERS:

Type: Residential

GBA, sqm: 170,4K

GSA/GLA, sqm: 57K/34K

MV(C&W): US$ 141,3 mn As of 31.12.2012

PARAMETERS:

Type: Residential

GBA(Phase I), sqm: 200,8K

GSA(Phase I total), sqm: 149,4K

PARAMETERS:

Type: Residential

GBA, sqm: 151,4K

GSA/GLA, sqm: 48K/26K

MV(C&W): US$ 117,4 mn

As of 31.12.2012

Kalinina Spa Hotel Development Update 2012

*Do not include reconstructed

buildings

14

TVERSKAYA

Extensive land bank

Land bank – projects the Company is currently put on hold

Land bank strategy

Activate projects upon securing required financing and evaluation of demand level from prospective tenants/buyer

Full flexibility regarding future development in various cycles of the economy – the major competitive advantage for the

Company

Pipeline and Land Bank

Project Type Land (ha) GBA upon completion (sqm) BV as of 31.12.2012, US$ ‘000

Park Plaza Kislovodsk Hotel resort 5.3 40,000 8,000

Versailles, Kislovodsk Hotel resort 0.6 12,350 9,000

Ruza Mixed use 387 n/a 4,000

St. Petersburg Mixed use 3.07 n/a 2,000

TOTAL 23,000

Note: MV upon completion and GBA upon completion are “forward looking statements” based on JLL valuation assumptions 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

Pipeline and Land Bank

15

2012 Financial Results

SECTION 3

Q1 2012 Q2 2012 Q3 2012 2011

(1) Construction consulting/management services 1.5 0.3 0.4 0.3 2.5 1.0

(2) Rental income 35.3 36.8 37.4 36.5 146.0 117.0

(3) Sale of residential 3.5 4.1 4.8 1.8 14.1 15.9

(4) TOTAL REVENUE 40.3 41.1 42.6 38.6 162.6 133.9

(5) Other income (0.2) 2.2 0.5 0.8 3.3 0.7

(6) Operating expenses (16.3) (19.0) (18.3) (20.9) (74.4) (72.1)

(7) Administrative expenses (3.4) (9.9) (3.0) (4.1) (20.4) (30.3)

(8) Cost of sales of residential (1.9) (3.2) (3.7) (0.5) (9.2) (10.4)

(9) Other expenses (0.2) (0.1) (1.2) (1.1) (2.6) (2.3)

(10) TOTAL EXPENSES (22.0) (30.0) (25.6) (25.8) (103.4) (114.4)

(11) GROSS PROFIT 18.3 11.2 17.0 12.8 59.3 19.5

(12) Profit on disposal of subsidiaries 2.7 2.7

(13) Impairment of prepayment for investments - - - - - (1.2)

(14) Valuation gains on investment property 1.1 (173.5) (73.2) (0.4) (246.1) 268.0

(15) Negative goodwill - - - - - -

(16) Impairment loss for trading property and hotels - (65.4) - - (65.4) 1.0

(17) RESULTS FROM OPERATING ACTIVITIES 22.1 (227.7) (56.2) 12.3 (249.6) 287.3

(18) Finance income 2.1 1.9 2.1 5.4 9.3 8.2

(19) Finance expense (15.9) (17.7) (13.4) (14.3) (60.5) (43.3)

(20) FX Gain/( Loss) 7.8 (11.1) 17.1 2.1 17.3 (5.6)

(21) Impairment of financial asset - - - - - -

(22) Net finance income/(costs) (6.1) (26.8) 5.7 (6.8) (34.0) (40.6)

(23) PROFIT BEFORE INCOME TAX 16.0 (254.6) (50.5) 5.5 (283.5) 246.6

(24) Current income tax (0.3) (1.2) (1.5) (1.6) (4.6) (13.6)

(25) Deferred income tax (7.8) 7.2 16.1 (2.9) 12.6 (61.5)

(26) PROFIT FROM CONTINUING OPERATION 7.9 (248.5) (35.9) 1.0 (275.5) 171.5

# ITEM ('000) Q4 2012 2012

Income Statement

17

Revenues - up 21% year-on-year to

US$163 mn driven by higher rental

income. AFIMALL City contribution

at US$81.4 mn

Gross profit - up by three times

( 203%) year-on-year to US$59 mn

on stronger revenues

Decrease in bad debt provisions due to the

strong collection in 2012

17

Loans and Cash Position as of Dec 31, 2012

*

*

**

***

Gross balance of the loan portfolio (as of December 31, 2012) – US$ 555,7 mn;

Total cash balance (as of December 31, 2012) – US$ 178 mn

AFIMALL

Liquidation Value of the property should be higher than sum of the outstanding principal and six months interest

Q4 Revenue: not less than US$ 19,8 mn (including VAT)

As of December, 2012 the Company is in line with the covenants

Balance as of Dec-

31, 2012Maturity

(US$ mn) (dd.mm.yy)

RCB $309 - 3-month LIBOR +

6,7%USD 01.04.2018

RCB $226 $131 9.5% RUB 01.04.2018

Total AFIMALL $535.8

Ozerkovskaya III (100%) VTB $0 $220 3-m Libor+5,7% USD 26.01.2015

Plaza SPA Zheleznovodsk Sberbank $20 - 6.75% RUB 20.12.2014

Total/Blind interest rate 555.7 8.1%

Total

Interest payments $64.6

Repayments $1.1

Currency

AFIMALL (Refinance)

Project Lending bankAvailable

(US$ mn)Nominal Interest rate

$0.0

$2.4

$1.1

Debt service expected up to 31.12.2013

VTB Sberbank

$62.1

18

19

Balance Sheet

31.12.2012 31.12.2011

US$ mn US$ mn US$ mn %

(1) Investment property 1486.4 1403.7 82.7 6%

(2) Investment property under development 568.2 983.7 (415.5) (42%)

(3) Property, plant and equipment 102.9 92.0 10.9 12%

(4) Long-term loans receivable 0.8 0.0 0.7

(5) VAT recoverable 0.6 5.4 (4.8)

(6) Goodwill 0.2 0.2 (0.0) 0%

(8) Inventory of real estate 0.0 66.2 (66.2)

(9) Non-current assets 2159.0 2551.2 (392.2) -15%

(11) Trading properties 2.1 11.1 (8.9) (81%)

(12) Trading properties under construction 141.8 129.6 12.2 9%

(13) Inventory 1.1 0.7 0.5 71%

(14) Short-term loans receivable 0.1 0.8 (0.7) (88%)

(15) Trade and other receivables 81.4 107.2 (25.7) (24%)

(16) Cash and cash equivalents 178.2 84.8 93.4 110%

(17) Current assets 404.7 334.1 70.7 21%

(18) Assets held for sale 185.9 185.9

(19) TOTAL ASSETS 2749.6 2885.3 (135.6) -5%

(20) Equity

(21) Share capital 1.0 1.0 0.0 0%

(22) Share premium 1763.4 1763.4 0.0 -

(23) Translation reserve (144.6) (178.5) 33.9 (19%)

(24) Retained earnings 9.7 277.5 (267.8) (97%)

(25) Equity attributable to owner of the Company 1629.5 1863.5 (234.0) (13%)

(26) Minority interest (3.0) 3.9 (6.9) -177%

(27) TOTAL EQUITY 1626.5 1867.4 (240.8) -13%

(28) Trade and other payables 38.3 71.6 (33.3) (46%)

(29) Long-term loans and borrowings 554.6 528.1 26.4 5%

(30) Deferred tax liabilities 104.6 142.1 (37.5) (26%)

(31) Deferred income 20.2 22.6 (2.5) (11%)

(32) Non-current liabilities 717.6 764.5 (46.8) -6%

(33) Short-term loans and borrowings 17.3 99.0 (81.6) (82%)

(34) Trade and other payables 273.5 154.1 119.4 78%

(35) Income tax payable 0.2 (0.2)

(36) Current liabilities 290.9 253.3 37.6 15%

(37) Liabilities held for sale 114.5 114.5

(38) TOTAL LIABILITIES 1123.0 1017.7 105.3 10%

(39) TOTAL EQUITY AND LIABILITIES 2749.6 2885.1 (135.5) (5%)

# NARRATIVE Changing

Strong cash position with US$178 million in cash and cash equivalents as

at 31 December 2012, compared to US$85 million as at 31 December

2011

• Increase in cash balance attributed to the disposal of Westec Four

Winds Ltd. and parking areas at AFIMALL City to JSC VTB Bank

Low level of debt to equity ratio ( 35%)

Investment property is significant part of total asset portfolio (60%)

• (2) The difference in IPUD is a result of Ozerkovskaya III project transfer from

IPUD to IP and revaluation made in Q2 2012

• (5) The amount of VAT, which was received back during the period

• (8) Botanic Garden write-off in Q2 2012

• (11) Sale of apartments and parking lots

• (15) The amount 107,2 included 21,9 mn USD VAT reimbursement during 2012

year

• (18) W4W

• (33) The amount of US$ 273 mn includes US$ 61 mn of advance payment for the

parking disposal to VTB bank and US$ 100 mn of advance payment for Four Winds

project

• (36) W4W

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PROJECT Book Value Bank loan

31.12.2012 31.12.2012

AFI Mall 1,160 (536) 624

Four Winds building (50%) 160 (81) 79

Berezkovskaya (100%)* 43 43

Paveletskaya I (1) 30 30

Four Winds fitness & retail (50%) 18 18

Plaza H20 19 19

OZE Phase III (Аквамарин, №22-24, офисы) - 50% 194 194

Plaza Ib 10 10

Plaza II 31 31

TOTAL INVESTMENT PROPERTY: 1,664 (617) 1,047

Ozerkovskaya III (50%) 0 0

Plaza Ic 107 107

Plaza II a 32 32

Plaza IV (100%)** 168 168

Kosinskaya 103 103

Bolyshaya Pochtovaya 141 141

Paveletskaya II 12 12

Ruza 4 4

St. Petrsburg 2 2

TOTAL INVESTMENT PROPERTY UNDER DEVELOPMENT: 569 0 569

Four Winds II 1 1

Ozerkovskaya Phase II (26) 1 1

TOTAL TRADING PROPERTY: 2 0 2

Aquamarine/Ozerkovskaya 26 34 34

Plaza Spa Kislovodsk (Tirel) (50%) 26 26

Kalinina 24 (20) 4

Pyatigorskaya (Park Plaza Kislovodsk) 8 8

Versailles (Kislovodsk) 9 9

TOTAL PROPERTY PLANT AND EQUIPMENT: 102 (20) 82

Odintsovo-Otradnoeye 112 112

AFIMALL parking sold to VTB 30 30

TOTAL TRADING PROPERTY UNDER DEVELOPMENT: 142 0 142

TOTAL PORTFOLIO: 2,479 (637) 1,842

Portfolio NAV

Portfolio NAV as of December,31 2012 Portfolio NAV as of December,31 2012

• Total projects portfolio - US$2.5

bn as at 31 December 2012

• Debt/BV of Portfolio – 25%

• Yielding Assets (Investment

Property and Trading Property)

represents 71% in total BV of

Portfolio

• As per last valuation report the value of

Paveletskaya 2 is 117M

Notes:

(1) AFID share in Berezkovskaya is 74%, the asset presented at 100% due to its full consolidation

(2) AFID share in Plaza IV is 100%, the asset presented at 100% due to its full consolidation

Gross Asset Value, based partially on the valuation of our projects portfolio independently verified by

Cushman & Wakefield and partially on book cost,

Contact Information

Registered office AFI DEVELOPMENT PLC 25 Olympion St., Omiros & Araouzos Tower, 3035 , Limassol, Cyprus. Tel: +357 25 340 058 Principal office of operating subsidiary AFI RUS 16 A Berezhkovskaya Embankment, building 5, Moscow, 121059, Russian Federation. Tel: +7 495 796 99 88 http://investors.afi-development.ru

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