East Capital Explorer AB - Interim Report 1 January - 30 June 2014

Key events during the second quarter
·  In June, a pay-out was received of EUR 17.7m from the ongoing liquidation of East Capital Special Opportunities Fund II, which corresponds to 89 percent of the investment's value and gives an average annual return of -14.1 percent. The remaining part is expected to be paid out during the autumn of 2014

·  In June, 1,481,049 shares were tendered for redemption under the redemption program, corresponding to an acceptance level of 94 percent. A total of EUR 13.6m (SEK 123m) was thereby transferred to the company's shareholders. All redeemed shares have been cancelled

·  In May, the acquisition of Vilnius Business Harbour and neighboring land plot was completed for a total purchase price of EUR 61.6m, of which East Capital Explorer's equity commitment, paid in cash, was EUR 22.3m. The current yield level of the A class office building is 7 percent

·  In April, a number of changes were made to the fee structure agreement with East Capital Explorer's investment manager East Capital, resulting in a positive earnings effect of EUR 9.0m from reversed performance fee provisions

Financial results for the second quarter
·  The Group's net result for the second quarter was EUR 23.7m (-12.1m), including EUR 23.8m (-12.0m) related to changes in value of investments. Earnings per share amounted to EUR 0.77 (-0.39) for the quarter

·  Net asset value (NAV) per share on 30 June 2014 amounted to EUR 9.95 (8.92)^[1]. The total NAV, after payment of EUR 13.6m to shareholders under the redemption program, amounted to EUR 298m (280m), an increase of 6.3 percent compared to the corresponding period 2013 and 3.3 percent compared to the previous quarter

·  Cash, cash equivalents and other short term investments on 30 June amounted to EUR 16.4m (7.1m)

Financial results for the first half year
·  The Group's net result for the first half year was EUR 2.6m (-6.0m) and earnings per share amounted to EUR 0.08 (-0.19)

·  Net asset (NAV) per share increased by 1.0 percent, from EUR 9.85 to EUR 9.95 during the first half of 2014. Total NAV decreased by 3.7 percent, after payment of EUR 13.6m to shareholders under the redemption program

·  The closing price of the East Capital Explorer share as of 30 June 2014 was SEK 57.75 (EUR 6.31), a decrease of 7.2 percent from year-end 2013

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[1] Comparable figures in brackets refer to the corresponding period 2013

140821 - Q2 2014 Report

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Source: East Capital Explorer AB via Globenewswire

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