May 2013

Q1 2013 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

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•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 from 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: US$ 200,8 mn as at March, 2013

•Secured financing for on-going projects

• 31% 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 May 20, 2013 US$ 0.70 bn

Price per share as of May, 20 2013 US$ 0.68

NAV (Equity), as of March 31, 2013 US$ 1.66 bn

NAV per share, as of March 31, 2013 US$ 1.59

Portfolio Value* US$ 2.5 bn

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AFIMALL

46% Delivered

26%

Next for

development

27%

Land Bank

1%

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

Ownership:50%

Aquamarine Complex

Four Winds

H2O Office

Four Winds***

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

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*Outside of Moscow

Value (C&W): US$ 1.8 bn

GLA(excl. hotels),sqm: 204K sqm

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

US$ 223 mn

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

GLA,sqm: 252K

GSA, sqm: 574,3K

NOI stab: US$ 142,3 mn

Value (BV): US$ 23 mn

AFIMALL City Aquamarine II Berezkovskaya

Paveletskaya, 1

Tverskaya Ib, II

Ozerkovskaya III Aquamarine Hotel

Plaza SPA Zhel* Plaza SPA Kisl * H2O

Pochtovaya Tverskaya Otradnoe

Kosinskaya Paveletskaya II

SECTION 1

Project Update

Yielding Projects

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AFIMALL City Project Highlights

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PROJECT HIGHLIGHTS 100%

(as of March 2013) share

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

Total GLA shops only, sqm 96,8K

% of GLA shops only 81%

Stabilized NOI (C&W est.) US$151.2 mn

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

Loan balance as for March, 2013 US$ 615 mn

CURRENT STATUS:

Occupancy level has increased from 77% in December 2012 to 81% in March 2013 due to

additional lease of new area

Average rental rate is US$ 1,257 per sqm pa before discounts vs US$ 1,243 in December 2012,

and US$ 1,278 in Q1 2012

During the Q1 2013 the Mall has continued to see increases in footfall. The average daily footfall

in March has reached c. 42K visitors per day compared to 30K in March 2012 (40% growth)

Total revenue for the Q1 2013 reached US$ 23,2 mn vs. US$ 21,7 mn in Q1 2012

In line with revenue growth, the collection exceeded quarter-to-quarter

42K

-

10.0

20.0

30.0

40.0

50.0

Daily Average ('000 visitors)

Workdays average Weekends average Daily average

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)

AFIMALL

NOVOTEL

AFIMALL and Moscow-City Development

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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 increase more than double)

Yielding Properties

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* ADR, NOI – company data for hotels as for 31.12.2012

** Average rent presented as of 31.12.2012 except AFIMALL, where all data refers to March 2013

*** Cap Rate based on C&W valuation as for 31.12.2012

**** MV based on C&W valuation as for 31.12.2012 except hotels

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* Building AFIMALL BerezkovskayaPaveletskaya,

bld. 1H2O

Tvesrkaya Plaza

Ib

Tverskaya Plaza

II

Ozerkovskaya

III

Aquamarine

Hotel*

Plaza Spa*

Kislovodsk

Plaza SPA

ZheleznovodskTOTAL

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

Moscow Moscow Moscow Moscow Moscow Moscow Moscow Moscow

Moscow City CBD CBD CBD CBD

GBA, sqm 304,205 11,612 16,246 10,698 2,104 6,008 73,346 11,130 25,000 9,526 470K

GLA, sqm 107,208 10,250 14,085 8,990 1,909 6,008 55,423 159 keys 274 keys 134 keys 204K

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

Ocupancy rate, % 81% 98% 96% 94% 94% 90% - 58% 58% 51%

Average rent as of

31.12.2012, $/sq m1,257 600 362 377 677 493 750-500 ADR 187 ADR 367 ADR 171

Class 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 5.8 4.6 2.9 1.4 4.3 46.7 5.0 4.6 3.5 223

NOI Year 2013

(C&W est.), US mn 77.7 5.0 3.5 2.4 1.1 33.3 10.4 2.7 3.7 3.2 143

MV(AFID share),US$

mn**1,160 32 30 19 10 31 389 34 26 24 1,754

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

Location Kavkaz region Kavkaz region

SECTION 2

Project Update

Projects next for Development

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10

Pipeline Projects CF budget 2013

CURRENT STATUS:

• The Company has signed an agreement with the General Contractor

• The land plot is ready for construction, the construction of the 1st stage in Phase # 1 has been lunched

(54,5K sqm from 200,8K sqm of GBA)

• The Company plans to start sales in Q3 2013

• The project team is working on marketing campaign

CURRENT STATUS:

• The Company has finalized almost 80% of all design works

• Reinforced existing buildings; working documentation for electricity and heating are in place)

CURRENT STATUS:

• The Company has received the final approval documentation – GPZU

(GZK and land lease agreement are in place)

• Design works are in process. Project design stage – stage P

• The company works on choosing a General Contractor

• Start of construction - Q4 2013

CURRENT STATUS:

• Design works are in process

• Securing approval documentation

CURRENT STATUS:

• Design works are in process

• Securing approval documentation

CURRENT STATUS: Plaza I and Plaza IIa:

• Securing approval documentation

PARAMETERS:

Type:

Residential

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

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

# of Apartments(Phase I): 2,620

PARAMETERS:

Type:

Mix

GBA, sqm: 111,7K

GLA, sqm: 90,3K

MV(C&W),mn: S$ 102,7

PARAMETERS:

Type:

Office

GBA, sqm: 51,2K

GLA, sqm: 32,5K

MV(C&W): US$ 106,6 mn

PARAMETERS Plaza IIa:

Type: Retail GBA,sqm : 10,5K GLA, sqm: 7,6K MV(C&W),mn: 32

PARAMETERS:

Type: Residential

GBA, sqm: 170,4K

GSA, sqm: 107,0K

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

PARAMETERS: Type: Residential GBA, sqm: 151,4K GSA, sqm: 76,4K MV(C&W), mn: US$ 117,4

Odintsovo

Kosinskaya

Tverskaya Plaza IC

Plaza IV and Plaza IIa

Bolshaya Pochtovaya

Paveletskaya

Plaza IV:

Type: Office GBA,sqm : 108K GLA, sqm: 61,4K MV(C&W),mn: 159,6

Extensive land bank

Land bank – projects of 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

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SECTION 3

Financial Update

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Q1 2013 Q1 2012

Actual Actual

(1) Construction consulting/management services 0.0 1.5

(2) Rental income 33.1 29.3

(3) Sale of residential 0.2 1.6

(4) TOTAL REVENUE 33.4 32.3

(5) Other income 3.2 0.1

(6) Operating expenses (21.4) (14.8)

(7) Administrative expenses (4.0) (3.0)

(8) Cost of sales of residential (0.2) (1.4)

(9) Other expenses (1.8) (0.2)

(10) TOTAL EXPENSES (24.2) (19.4)

(11) Share of profit of equity-accounted investees (0.6) (8.4)

(12) GROSS PROFIT 8.6 4.5

(13) Valuation gains on investment property 16.5 6.9

(14) RESULTS FROM OPERATING ACTIVITIES 25.1 11.4

(15) Profit on sale/disposal of properties/investment 32.1 2.0

(16) Finance income 15.7 4.4

(17) Finance expense (16.8) (15.5)

(18) FX Gain/( Loss) (9.2) 15.2

(19) Translation reserve reclassification due to disposal of subsidiary (30.3) 0.4

(20) Net finance income/(costs) (40.5) 4.5

(21) PROFIT BEFORE INCOME TAX 16.7 17.9

(22) Current income tax (1.1) (10.0)

(23) Deffered income tax

(24) PROFIT FROM CONTINUING OPERATION 15.6 7.9

# ITEM ('000)

Income Statement

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(2) Rental income up 13% Y-o-Y to 33.1 mn

was mainly driven by AFIMALL contribution

at US$ 23.2 mn

(15) W4W

(19) Translation reserve transferred from BS to

PL due to W4W sale

(24) Net profit almost doubled compared

to Q1 2012 to 15.6 mn

31.03.2013 31.12.2012

US$ mn US$ mn US$ mn %

(1) Investment property 1,680.8 1,292.3 388.5 30%

(2) Investment property under development 568.3 567.7 0.5 0%

(3) Investment in Joint Ventures 6.0 82.4

(4) Property, plant and equipment 74.0 76.6 (2.5) -3%

(5) Long-term loans receivable 21.7 113.5 (91.8)

(6) VAT recoverable 0.6 0.5 0.1

(7) Goodwill 0.0 0.2 (0.2)

(8) Non-current assets 2,351.5 2,133.1 218.3 10%

(9) Trading properties 39.8 3.6 36.2 1006%

(10) Trading properties under construction 114.4 141.8 (27.4) (19%)

(11) Inventory 0.7 0.6 0.1 9%

(12) Short-term loans receivable 0.1 0.1 (0.0) (1%)

(13) Trade and other receivables 71.0 78.3 (7.3) (9%)

(14) Current tax assets 3.0 0.1 2.9

(15) Cash and cash equivalents 200.8 174.8 26.0 15%

(16) Current assets 429.8 399.3 30.5 8%

(17) Assets held for sale 71.3 (71.3)

(18) TOTAL ASSETS 2,781.3 2,603.8 177.5 7%

(19) Equity

(20) Share capital 1.0 1.0 (0.0) (0%)

(21) Share premium 1763.4 1763.4 0.0 0%

(22) Translation reserve (124.8) (144.6) 19.9 (14%)

(23) Retained earnings 26.2 9.7 16.5 171%

(24) Equity attributable to owner of the Company 1,665.9 1,629.5 36.3 2%

(25) Minority interest (2.8) (3.0) 0.1

(26) TOTAL EQUITY 1,663.0 1,626.5 36.5 2%

(27) Trade and other payables 0.0 38.3 (38.3) (100%)

(28) Long-term loans and borrowings 846.6 554.6 292.0 53%

(29) Deferred tax liabilities 103.2 81.9 21.3 26%

(30) Deferred income 21.0 20.2 0.8 4%

(31) Non-current liabilities 970.8 695.0 275.8 40%

(32) Short-term loans and borrowings 9.6 17.3 (7.7) (45%)

(33) Trade and other payables 137.9 267.1 (129.3) (48%)

(34) Income tax payable 0.0 0.0 0.0

(35) Current liabilities 147.5 284.5 (137.0) -48%

(36) TOTAL LIABILITIES 1,118.2 979.5 138.8 14%

(37) TOTAL EQUITY AND LIABILITIES 2,781.3 2,606.0 175.3 7%

# NARRATIVE Changing

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Statement of Financial Position

(1)Acquisition 50% of partners share in Ozerkovskaya projects

(09) (10) Completion of the parking construction

(17) W4W deal was completed in Q1 2013

(33) Amount paid in December relates to prepayment for W4W

transaction

Total equity at 1 January 2013 1,626.5

Profit for the period 15.6

Foreign currency translation differences for foreign operations -10.6

Translation difference reclassified to income statement on disposal of joint venture 30.3

Share option expense 1.2

Total other comprehensive income 1,663.0

The change in Equity Statement Q1 2012 US$ ’000

Loans and Cash Position as of March 31, 2013

**

***

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 March, 2013 the Company is in line with the covenants

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Balance as of

Mar-31, 2013Maturity

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

RCB $306 - 3-month LIBOR

+ 6,7%USD 01.04.2018

RCB $309 $43 9.5% RUB 01.04.2018

Total AFIMALL $615

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

Plaza SPA Zheleznovodsk Sberbank $19 $0 13.50% RUB 20.12.2014

Average Interest Rate 7.8%

Total Sberbank

Interest payments $50.3 $1.9

Repayments $1.1 $1.1$0.0

$9.9

$0.0

Debt service expected up to 31.12.2013

RCB VTB

$38.5

Currency

AFIMALL (Refinance)

Project Lending bankAvailable

(US$ mn)

Nominal Interest

rate

Gross balance of the loan portfolio (as of March 31, 2013) – US$ 854 mn

Total cash balance (as of March-31, 2013) – US$ 200,8 mn

Portfolio NAV as of March,31 2013

LTV = 34%

LTE = 51%

AFI Mall 1,160 (615) 545

Berezkovskaya (100%)* 43 43

Paveletskaya I (1) 30 30

Plaza H20 19 19

OZE Phase III 389 (220) 169

Plaza Ib 10 10

Plaza II 31 31

TOTAL INVESTMENT PROPERTY: 1,681 (835) 846

Plaza Ic 107 107

Plaza II a 32 32

Plaza IV (100%) 168 168

Kosinskaya 103 103

Bolyshaya Pochtovaya 141 141

Paveletskaya II 12 117

Ruza 4 4

St. Petrsburg 2 2

TOTAL INVESTMENT PROPERTY UNDER DEVELOPMENT: 568 0 673

Four Winds II 1 1

Ozerkovskaya Phase II (26) 10 10

TOTAL TRADING PROPERTY: 11 0 11

Aquamarine/Ozerkovskaya 26 33 33

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

Plaza Spa Zheleznovodsk 24 (19) 5

Pyatigorskaya (Park Plaza Kislovodsk) 8 8

Versailles (Kislovodsk) 8 8

TOTAL PROPERTY PLANT AND EQUIPMENT: 99 (19) 80

Odintsovo-Otradnoeye 114 114

AFIMALL parking sold to VTB 29 29

TOTAL TRADING PROPERTY UNDER DEVELOPMENT: 143 0 143

TOTAL PORTFOLIO: 2,501 (854) 1,753

CASH AND CASH EQUIVALENT 201

DEFFERED TAX LIABILITY (103)

TOTAL OTHER ASSETS AND LIABILITIES (188)

TOTAL EQUITY: 1,663

*

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Contact Information

Registered office AFI DEVELOPMENT PLC Spryou Araouzou 165, Lordos Waterfront Building 5th Floor, Flat/Office 505, 3035 Limassol, Cyprus Tel. +357 25 310975 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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