Eastnine Q3 20179 November

Agenda

• Our portfolio and quarterly performance

• Update on our holdings

• Focus going forward

• Key financials and NAV development

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Today’s presenters

Kestutis SasnauskasCEO, Eastnine

Lena KraussCFO, Eastnine

Welcome to today’s presentation

New financial targets and dividend policy

New dividend policy

• Dividend shall correspond to at least 50% of profit from property management. During the build-up phase until 2020, the annual dividend shall be at least 2.0% of the net asset value at the preceding year-end.

New financial targets

• 13-15% return on equity, over 5-year period

• <65% loan-to-value ratio

• >2.0x interest service coverage ratio

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Eastnine vs. MSCI Emerging Markets Europe

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January - September indexed, SEK

Portfolio development Q3 2017

NAV per share increased by 2.2%

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Portfolio 30 September 2017, value change July – September, %

EUR

232.3m

NAV/Share EUR

9.79

Vertas

1.5%

3 Burės

2.2%

3 Burės development

-1.0%

East Capial Baltic Propery Fund II

7.1%

East Capial Baltic Propery Fund III

1.2%Melon Fashion Group

-0.6%

East Capital Deep Value Fund

2.5%

East Capital Global Frontier

Markets Fund 2.4%

Komercijalna Banka Skopje

7.9%

Cash and cash equivalents

Real Estate Direct

Real Estate Direct

• Fair value increased by 1.4% July – September, and 4.1% year-to-date

• Combined average annual return is 10.9%

• Fair value increase mainly due to positive cash flows in 3 Burės, while 3 Burės development had a marginal value decrease

• Average rent increased to 13.8 EUR/ sqm/ m from 13.5 in Q2, an increase of approximately 2%

• Combined vacancy remains low at 1.9% from 2.4% in Q2

EURM Q3 2017 Q3 2016Q1-Q3

2017Q1-Q3

2016FY 2016

Value change, % 1.4 3.5 4.1 8.0 9.1

NAV 67.2 30.1 67.2 30.1 30.4

% of Eastnine’s NAV 28.9 13.2 28.9 13.2 12.3

Investments 2.0 - 34.1 0.3 0.3

Divestments - - - - -

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Vertas

3 Burės

3 Burės development

Key performance data

EURm Q3 2017 Q2 2017 Q1 2017

Net operating income 1.3 1.0 0.8

Surplus ratio, % 80 78 72

Leasable floor space, k sq.m 50.6 50.6 41.2

Income-producing properties 37.8 37.8 28.4

Development properties 12.8 12.8 12.8

Floor space vacancy level, % 1.9 2.4 3.9

Rental value, offices 6.3 6.1 4.3

Property value 99.6 98.1 68.3

Income-producing properties 89.4 89.4 60.9

Development properties 10.2 8.7 7.4

Yield requirement, % 5.8 6.1 6.1

Interest coverage ratio, multiple 6.1 4.7 3.1

Loan-to-value ratio, % 32.7 34.1 49.6

Long-term equity (EPRA) 69.2 66.1 36.1

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Key performance data

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Property value Largest tenants Lease term structure

Rental value, EURmSQM

Telia 9,100

Citco 3,000

Visma 2,400

European Social Fund 2,100

Swedbank 1,400

Cobalt 1,400

Under development

Swedbank 8,900

Visma 3,600

3 Bures

Vertas

3 Bures development

0,0

0,5

1,0

1,5

2,0

2,5

2017 2018 2019 2020 2021 2022 2023 2024-

Developments

Income-producing properties

3 Burės

• Vacancy decreased to 1.7% from 3.3%

• Average rent increased by 2.7%

3 Burės development

• Construction continued as scheduled for the third tower

• Slight fair value decrease mainly due to a negative swap revaluation

Vertas

• Vacancy of 2.7%

• Short-term fully equity financed

Our Properties

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Real Estate Funds

Real Estate Funds

• The segment’s fair value increased by 5.0% July – September, and 9.0% ytd

• Combined average annual return is 10.2%

• BPF II sold its holding in GO9 at an average IRR in excess of 15% since 2012. Eastnine will receive its share of profits, in excess EUR 9m, in Q4.

• BPF III closed the transaction of VGP Nehatu in September and operational take-over of the property is ongoing.

EURM Q3 2017 Q3 2016Q1-Q3

2017Q1-Q3

2016FY 2016

Value change, % 5.0 1.6 9.0 6.0 7.6

NAV 46.1 36.1 46.1 36.1 36.7

% of Eastnine’s NAV 19.9 15.8 19.9 15.8 14.8

Investments 6.0 - 6.0 - 4.8

Divestments - - - - -

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East Capital Baltic Propery Fund II

East Capital Baltic Propery Fund III

Other

Other

• Total segment fair value increased by 1.5% July – September, and decreased by 2.8% year-to-date

• Combined average annual return is 0.6%

• Public equity holdings gained value while Melon Fashion Group decreased marginally due to currency translation

• East Capital Deep Value fund will change its name to East Capital Eastern Europe Small Cap due to new strategy effective 1 December 2017

EURM Q3 2017 Q3 2016Q1-Q3

2017Q1-Q3

2016FY 2016

Value change, % 1.5 -0.1 -2.8 4.7 17.4

NAV 83.5 167.0 83.5 167.0 99.6

% of Eastnine’s NAV 36.0 73.4 36.0 73.4 40.2

Investments - - - - -

Divestments 1.9 19.7 11.8 26.8 117.4

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Melon Fashion Group

East Capital Deep Value Fund

East Capital Global

Frontier Markets Fund

Komercijalna Banka Skopje

Melon Fashion Group

Fair value decrease by 0.6% during the quarter

• Translation effect of the weaker rouble against the euro

• Underlying rouble base valuation was kept unchanged

Total sales increased by 14.3%

• Lifted by high like-for-like and pick-up in franchise and online sales

Operating profitability continues to improve

• Q3 EBITDA of RUB 505m, compared to RUB 148m in Q3 2016

• EBITDA margin at 13.2% up from 4.4% previous year

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Key financials

RUBm Q3 2017 Q3 2016 FY 2016

Sales 3,842 3,362 12,474

Gross profit 2,007 1,531 5,932

EBITDA 505 148 647

Net profit 303 38 131

Sales growth, % 14.3 6.5 -0.7

Gross margin, % 52.3 45.5 47.5

EBITDA margin, % 13.2 4.4 4.9

Number of stores,end-quarter 537 577 558

Like-for-like sales growth, % 8.9 3.7 -2.2

Other portfolio holdings

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East Capital Deep Value Fund East Capital Global Frontier Markets Fund

Komercijalna Banka Skopje

• Q3 Performance +2.5%

• Several countries showing strong GDP growth

• Political uncertainties are decreasing

• Liquidity is increasing

• New strategy effective 1 December 2017

• Q3 Performance +2.4%

• Markets of interest:

• Argentina had a strong quarter, where Grupo Supervielle gained 29.5%

• Nigeria showed a positive GDP growth for the third quarter, for the first time in over a year

• Pakistan market lost 14%, Prime minister disqualified by Supreme Court and increased fear of Rupee depreciation

• Q3 Performance +7.9%

• Macedonia continues to show strong recovery, GDP 3% in 2017E

• Net profit MKD 106m, mainly due to an increase of the provisioning of the corporate loans, which was above expectations

Focus going forward

The transformation is in full speed

• An active pipeline

• A-class office properties in all three Baltic capitals

• Participation in selective development projects

• Exploring exit options for non-core holdings

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Key financials and NAV development

Share buyback program

• Buybacks up to NAV/share. Previous limit of 20% discount to NAV removed

• Q3 2017: 577,013 shares repurchased for a total of EUR 4.1m

• 1 Oct – 7 Nov: 343,214 shares for total of EUR 2.8m

• Year-to-date (until 7 Nov): 2.2m shares for total of EUR 16.6m

• Holding of own shares now 5.8%

• Share buybacks continue, current mandate until 31 December 2017

• Accumulated buybacks since program launched in May 2016: 4.8m shares at EUR 33.6m

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0%

2%

4%

6%

8%

10%

12%

2009 2010 2011 2012 2013 2014 2015 2016 2017

ytd

Shareholder distribution, % of market cap

Buybacks Dividends Redemptions

Key figures – Q3 2017

30 SEP 2017 30 JUN 2017 31 DEC 2016 30 SEP 2016

NAV per share EUR 9.79 9.59 9.67 8.73

NAV per share SEK 94.5 92.2 92.6 84.1

Closing price per share SEK 75.00 70.50 66.75 57.50

Total NAV EURm 232.3 232.9 247.6 227.6

Market cap EURm 193 182 196 168

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Q3 2017 Q3 2016 9M 2017 9M 2016 FY 2016

Net result EURm 3.5 -2.0 0.8 -9.5 13.3

Earnings per share, EUR EUR 0.15 -0.08 0.03 -0.35 0.49

NAV per share development, % % 2.2 -0.1 1.3 -3.0 7.4

Investments EURm 8.0 0.0 40.1 5.0 5.0

Divestments EURm 1.9 19.7 11.8 26.8 117.4

Change in NAV per share

Q3 2017, EUR

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9,790,04

0,09 0,06 0,04 0,04 0,01

9,59Dividends received (MFG): EUR 1.0m

Total group operating expenses in Q3 2017: EUR 0.97m

Eastnine AB

www.eastnine.com

Nasdaq Stockholm Mid CapTicker: EAST

Q4 Report published 16 February 2018