EPH First Quarter 2015 Trading Update - Seite 2

Assets

      · Investment Properties

As of 31 March 2015 Investment Properties amount to $ 749.77 million. All properties are valued twice a year, in the end of June and December; therefore the current figures are based on the appraiser's reports as of 31 December 2014.

      · Loans and Receivables

EPH's Loans and Receivables increased due to both additional lending to Arbat projects and accrual of additional interest on existing project loans. To the extent that a borrower is partially owned by EPH, loans are eliminated in consolidation. This means that 60% of project financing for the Arbat Projects is classified as investment in the projects, and 40% as lending.

Loans and Receivables increased from $75.42 million as of 31 December 2014 to $77.43 million as of 31 March 2015.

      · Cash and Cash Equivalents

The Company's cash position decreased from $26.46 million as of 31 December 2014 to $21.09 million as of 31 March 2015. A net reduction of $5.37 million in the Company's cash position in the first three months of 2015 has been primarily caused by the bonds interest payment and the use of cash to fund Arbat construction.

      · Assets Under Development (at cost)

Assets Under Development have increased from $66.90 million at 31 December 2014 to $69.17 million at 31 March 2015. The $2.28 million net increase is the result of increased construction spending and slight strengthening of the RUB against the US$. Assets Under Development are carried at cost which is nominated in RUB. Thus, the strengthening of RUB against USD in 1Q 2015 leads to an increase in Assets Under Development presented in US$.

Liabilities

      · Borrowings (LT & ST)

EPH's debt consists of:

• 9 year bonds listed on Swiss Stock Exchange issued in August and September 2014;
• loan from Jilford Ltd. signed in September 2013 for the purpose of financing Arbat construction;
• third party loans to EPH Real Estate, to Connecta KG and to Capital Estate Group.

The nominal value of the listed bonds at reporting date did not change since the end of 2014 and is $270 million.