Company presentation May 2015 Table of contents Section 1 Summary - PowerPoint PPT Presentation

Company presentation May 2015

Table of contents Section 1 Summary 3 Section 2 Market Overview 7 Section 3 Resilient Operations 1 1 Section 4 Capital Base Strengthened 22 Section 5 Financial Performance 25 Section 6 2015 Initiatives 34 Section 7 O1 Yielding Assets 36 2

Section 1: Summary

Idea 100% 100% Office Moscow ~50/50 ~90/10 Yielding/ Leverage Development 4

Asset Growth Changes in gross asset value (US$ MM) 114 4500 -293 82 416 4000 52 3500 1 001 -318 3000 2500 4200 4 200 2000 4 021 1500 2 987 1000 500 0 YE 20 13 YE 2012 Olimpia Park White Square Kutuzov&Greendale Legend CAPEX & iCUBE YE 2014 Revaluation disposal acquisition acquisition Acquisition valuation acquisition changes In the last two years assets went up about 35%; Negative revaluation due to deteriorating market conditions in 2H 2014 is 6,7%. 5

NOI and EBITDA NOI and EBITDA (US$ mln) 400 353 352 350 326 319 292 300 260 NOI 250 200 G&A 144 150 113 EBITDA 100 33 50 31 32 27 - 2012 2013 IFRS 2014 Est. 2015 EBITDA Margin grew from 80% to 90% during 2012-2014 years; EBITDA for 2014 year was $319 mln and expected to be $326 mln in 2015; Estimate for 2015 based on agreed and potential discounts to tenants (11% discount on average); G&A expenses expected to decrease due to increased cost efficiency and ruble devaluation. Notes: *NOI 2015 calculat ed on cash basis and doesn’t include Bolsh evik NOI 6

Section 2: Market Overview

Vacancy, delivery and take-up Vacancy Demand and Supply Vacancy by geographic submarket New delivery , take-up, vacancy rates by geographic submarket, FY2014 and Q12015 30% 800 000 25% 25% 20% 20% 600 000 15% 15% 400 000 10% 10% 200 000 5% 5% 0 0 0% Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 CBD CBD>TTK TTK>MKAD Beyond 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 MKAD Delivery CBD CBD>TTR Vacancy Take-up TTR>MKAD Beyond MKAD Vacancy in CBD area (core area for O1) is the lowest among submarkets. T ake-up in CBD area is higher than delivery, which limits potential vacancy growth. Source: CBRE Research, Q1 2015. 8

Rental rates Rental rates by the year-end Office Yield Comparsion 11% $1 350 $1 200 $1 000 $1 000 $1 050 9% $900 $900 $850 $750 $650 $600 $550 $550 7% $450 $450 $450 $400 $300 $300 $150 $250 5% $0 2010 2011 2012 2013 2014 2015F 3% Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Prime Class A min Prime Class A max Class A max Class A min Moscow Paris Frankfurt Warsaw Class B max Class B min Rental rates are under obvious pressure. Landlords began to fix the exchange rate corridor, usually at the level of 45-60 Roubles. In addition to fixing the exchange rate corridor, landlords were offering traditional incentives in order to attract or retain tenants: longer rent free periods (6 months to 1 year), execution or financing of fit-out, reduced indexation (up to 2- 3% p.a. versus 5.3% in 2013). Moscow office yield is two times higher than in Western Europe cities. Source: CBRE Research, Q1 2015. 9

Cap rates and bond yields Euro -Cbonds Sovereign Russia index, YTM, eff., Capitalization rates %, end of period 8,0% 14% 7,5% 13% 7,0% 12% 6,5% 6,0% 11% 5,5% 10% 5,0% 9% 4,5% 4,0% 8% Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 20th Apr I 2011 I 2012 I 2013 I 2014 I 2014 I&L Retail Office Russian sovereign bond yield reduced to mid.2014 levels. This indicates that Capitalization rates should also go back to mid 2014 levels in the next several months, if macroeconomic situation is stable. Source: CBRE Research, Q1 2015. 10

Section 3: Resilient Operations

Stability of Operations Over 98% of Portfolio Yielding Cash ( 2% of GAV is development) High-Quality Credit-Rated T enants Triple Net Lease Structure O1 Rental Rates are in Line with Market 12

Assets Portfolio Yielding Assets make up 98% of Portfolio Value 100% Moscow Office Current Portfolio Yielding Assets 14 11 9 4 13 1 3 2 White Square 1 Ducat Place III 2 Legend White Stone Silver City Vivaldi Plaza 6 3 4 5 5 The Kremlin 8 15 Stanislavsky 8 11 iCUBE 2 7 LeFORT 9 Krugozor 10 Avion 12 7 Lighthouse Factory 6 Dec. WAULT (years): 3.8 Value, June 2014 (US$ Bn.): 4.02 NRA* (thous. sq.m.): 510 Occupancy: 93% 2014 *NRA includes Bolshevik phase 1A GAV doesn’t include Bolshevik phase 1A Development Projects 12 Value*, Dec 2014: $110 mln O1 share: $70 mln 10 *GAV doesn’t include Bolshevik phase 1A, which 13 Bolshevik 1 Greendale 1 Kutuzov 15 14 is already yielding asset Completion: 2014/16 Completion: 2016/17 Completion: 2018/19 NRA: 73 000 NRA: 33 000 NRA: 22 000 Notes: 1. O1 owns 85% of Greendale Project, 100% of Kutuzov Project and 50% of Bolshevik Project. 13 2. iCUBE project was consolidated into O1 Properties in September 2014.

The Leading Player in Moscow Office Market O1’s Investment Portfolio Moscow Office Market breakdown, 600 mln sq.m. and % 500 510 467 2,45 400 16% 349 2,55 300 321 17% 10,1 67% 200 100 - 2011 2012 2013 2014 Class A and Class B + Class B Prime A NRA, '000 sq.m As of YE 2014 O1 has 510 thousands sq. meters of completed and yielding Class A and B Office Space. Estimated O1 share in Moscow class A and B+ office market is 10%. Source: Cushman&Wakefield report. 14

High Quality Cash-Generating Asset Portfolio of O1 Assets Classes by GAV Assets Location by GAV Asset Classes by GA V 9% 18% 44% 6% 47% 76% Class A+ CBD Class A GR-TTR Class B TTR-MKAD Almost half of the total yielding portfolio is trophy assets (Class A+) and three quarters of assets are located in Central Business District of Moscow. 15

Yielding Portfolio Well Diversified Low Asset Concentration Underpins Stable Cashflow As of 31 Dec. 2014 As of 31 Dec 2013 Stanislavsky iCUBE 6% 3% White Stone Vivaldi Plaza 11% Vivaldi Plaza Ducat Place III 10% 7% 10% iCUBE Stanislavsky 8% Avion 2% Krugozor 9% 6% Krugozor 6% Lighthouse 7% White Stone 10% Legend 6% 10% 2% Avion LeFORT Ducat Place III 6% Lighthouse 9% 11% Silver City 6% 11% White Square LeFORT Bld 1 13% White Square 13% 8% Bld 1 White Square White Square Silver City Bld 2 Bld 2 T otal value: T otal value: $4.17 Bn $4.02 Bn Notes: 16 1. Valuation based on Cushman & Wakefield valuation report as of 31 Dec. 2013 and 31 Dec. 2014. 2. White Square Project legally consists of two separate buildings, each of them is located on its own land plot. Valuation divided between the buildings proportionally based on NRA.

Secure Cash Flows Due to High Quality Tenants Mostly Multinational T enants or Russian RTS/LSE Listed 17

Tenant structure Tenant type ownership Top Tenants contribution to NOI Tenant type by industry Russian Natural publicity listed resourses Government 4% 8% 16% 18% 25% Russian Russian Industrial 34% private private Consulting/ 46% T op 10 14% Legal services Rest 8% Consumer/ 70% Retail Finance 16% 11% 15% Multinational Multinational TMT 7% 9% T op 1 1-20 T op 21-30 Large multinational companies contribute more than 70% of total NOI. Therefore O1 cashflows are generally backed b y “in vestment gr ade” tenants / credit quality . The tenant base is well diversified across industries. Relatively low tenant concentration. PwC, Eurasian Economic Community and Deloitte are the only tenants accounting for more than 3% of total NOI. 18

Lease expiration profile WAULT- 3,8 years Expiration profile by NRA Expiration profile by NOI 25,00% 100 000 91 632 25,00% 90 000 22,82% 87 803 90 000 82 664 20,75% 80 000 20,00% 80 000 21,22% 20,00% 71 084 76 866 70 000 20,34% 17,18% 17,14% 19,15% 70 000 69 893 60 000 16,46% 15,00% 60 000 15,00% 57 859 57 738 50 000 50 000 33 858 40 000 10,00% 40 000 10,00% 7,35% 29 972 30 000 5,65% 30 000 7,84% 20 000 24 749 2,69% 3,40% 6,94% 5,00% 5,00% 20 000 11 239 10 096 2,02% 10 450 19 016 0,99% 10 000 10 000 2 938 11 436 6 809 9 061 3 337 2,60% 2,42% 2,34% 0,00% - 0,00% - 0,68% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, % Total expirtaion profile NRA, sq.m Total expirtaion profile NRA, % 19

Average Rental Rates and Vacancy Occupancy and rental rates Rental rates Project Total NRA Occupied space O1 occupancy Market occupancy 1Q'2015 Legend 914 40 296 31 167 77% Ducat Place III 933 33 497 30 324 91% White Square 1 025 76 407 76 319 100% Prime A 980 150 199 137 810 92% 90% Krugozor 562 50 954 47 511 93% Stanislavsky factory 639 34 563 34 009 98% White Stone 649 39 692 38 710 98% Lighthouse 770 27 492 26 989 98% iCube 650 19 200 12 000 63% Vivaldi Plaza 751 48 150 47 988 100% Silver City 760 41 917 37 561 90% Bolshevik Phase 1A 650 17 300 10 885 63% Class A 680 279 267 255 653 92% 75% Avion 547 18 442 13 048 71% LeFORT 412 55 901 48 287 85% Class B 441 74 344 61 335 83% 87% Total yielding portfolio 738 503 810 454 798 90% Vacancy in O1 assets mainly represented by recently acquired assets: Icube and Legend. Rental rates in O1 assets are within market range, not overpriced. 20