2. Disclaimer
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.
2
3. Macroeconomic update
Real GDP growth 3.7% in Q2 2011, TY 2011 150 110%
estimation – 4% 140 104.0%
105%
Sovereign debt to GDP ratio is the lowest 130
100%
120
among its peers
110 95%
Oil price (Brent) is volatile but still over
100
U$100 per barrel 90%
90
Unemployment is 6.4% in May. Labor market 85%
80
is steadily improving
70 80%
Inflation is estimated at 7.5-8.5% for TY 2003 2004 2005 2006 2007 2008 2009 2010
2011 Real GDP (Year 2003 = 100) - left axis
Ruble exchange rate is fluctuating around 30 YoY growth, % - right axis
RUB for 1 US$
200% Sovereign Debt (% of GDP) 114%
150% 112%
100%
110% 108.8%
50%
108%
0%
Portugal
Spain
Italy
Ireland
US
UK
Greece
Germany
Russia
106%
2003 2004 2005 2006 2007 2008 2009 2010
Russian CPI, %
Source: EIU, Federal statistics service, JLL 3
4. Market update
Retail Retail supply and vacancy Retail rental rates, US$ psqm pa
Key indicators Units 4 6%
Million sqm
4,800
4,500
5%
4,000 4,000 4,000
Prime rates* 4,000 psqm pa 3
4% 3,500
3,700
3,000
Base rents 1,350 psqm pa 2 3%
2,000
2% 1,500 1,700
1,300 1,200 1,350 1,350 1,350
Prime yield 9.0% – 9.5% 1
1%
Vacancy <1% (prime) 0 0%
2005 2006 2007 2008 2009 2010 H1
7% (Moscow aver.) 2011
2005 2006 2007 2008 2009 2010 Q1
2011
Q2
2011
total area vacancy Prime rents Base rents
source: JLL, C&W source: JLL, C&W
*Prime rates: 100 sqm shops on 1st floors in quality
shopping centers
Office Class A office supply and vacancy Class A rental rates, US$ psqm pa
3 2,000
Key indicators Units
25%
Million sqm
20% 1,500
CBD prime US$1,100 - 2 1,150
rates US$1,200 psqm pa 15% 1,000 1,400
850
800 800
10%
US$700 - US$800 1 1,000
Class A 750 750
psqm pa 5% 600 620 650
0 0%
Yields 9% 2005 2006 2007 2008 2009 2010 H1 2005 2006 2007 2008 2009 2010 H1 2011
2011
total supply vacancy Class A
Vacancy prime 2% - 4% vacancy Class A CBD source: JLL, C&W
Average Class A
Class A CBD Prime source: JLL, C&W
Source: JLL, C&W 4
5. AFI Development at glance
• Full cycle real estate developer Market Cap - Sep 09, 2011 US$ 0.65 bn
NAV - Jun 30, 2011 US$ 1.8 bn
• Focus on unique large scale
Average share price - Sep 09, 2011 US$ 0.63
commercial and residential projects
NAV per share - Jun 30, 2011 US$ 1.74
• Primary market: Moscow, Russia Total equity – Jun 30, 2011 US$ 1.83 bn
Cash & Cash equiv. – Jun 30, 2011 US$ 96 mn
• Portfolio market value – US$ 2.4 bn
Project level bank loans – Jun 30, 2011 US$ 489 mn
(JLL valuation as of June 30, 2011)
Land bank AFIMall City
27% 35%
Moscow
94%
Pipeline Kislovodsk
14% 3%
Projects Completed Other
under and unsold 3%
development projects
10% 14%
Portfolio market value by project type Portfolio MV by geography
5
6. Key projects
1 AFIMALL City 8 Ozerkovskaya III
CITY OF MOSCOW
Shopping mall Mixed-use
2 Four Winds 9
13 Kosinskaya
“A”-class office
“B”-class office
3 Aquamarine hotel 10 Paveletskaya II
4* hotel Residential
12
14
2
4 Ozerkovskaya II 1
11 Otradnoye
Residentaial 5
8
Residentail
4 3
6
7 10 9
5 Berezhkovskaya 11 12 Pochtovaya
“B”-class office Mixed-use
6 H2O
13
“B”-class office Serebryakova
Residential
7 Paveletskaya I
“B”-class office 14 Tverskaya Zastava
Mixed-use
Existing projects
Projects under development 6
Pipeline projects
8. AFIMALL City
Key advantages
• Central location
• Largest mall in the city center
• High quality construction and fit-out
Highlights
GLA/# of shops 107K /c.400
Occupancy 81%
2013 NOI (100%) US$120-130 mn (JLL)
Revenue 2011 US$60 mn
JLL appraisal value* US$1,093 mn 25
thousand visitors per day
*(100% project as at Jun 30, 2011)
20
Additional matters
15
• The 25% city share acquisition in Sep 2011
• The Company aims to have the finance in 10
place by the end of Sep 2011
5
• The Company continues its negotiations
with the City in respect of the parking 0
March April May June July August
• Favorable finance terms have been
reached in respect of the existing loan Average daily footfall
8
9. Four Winds office
Key advantages
• Prime location in CBD
• AAA long-term tenants
• Well-known brand in Moscow
Highlights
Ownership 50%
GBA/GLA 28K /22K
Occupancy 100%
NOI US$29 mn
Rental rate US$1,350 psqm pa
JLL appraisal value* US$271 mn
*(100% project as at Jun 30, 2011)
9
10. Aquamarine Hotel
Key advantages
• Central location
• Part of the residential / office
complex with a total area of 160K
sqm
• Professional development concept
Highlights
GBA/# of keys 11K /159 keys
Occupancy (H1 2011) 60%
2011 NOP US$2.1 mn (JLL)
Stabilized NOP US$4 mn (JLL)
ADR US$195
JLL appraisal value* US$47 mn
*(100% project as at Jun 30, 2011)
10
11. Plaza Spa
Key advantages
• Recognized recreational area
• Solid reputation for the top quality
service in Kislovodsk town
• Established client base
Highlights
Ownership 50%
GBA/# of keys 25K /275 keys
Occupancy (H1 2011) 73%
2011 NOP (100%) US$8.1mn (JLL)
JLL appraisal value* US$62mn
*(100% project as at Dec 31, 2010)
11
13. Ozerkovskaya III
Key advantages
• Prime location in CBD
• 3rd phase of the residential / office
complex with a total area of 160K sqm
• High quality construction and fit-out
Highlights
Ownership 50%
GBA/GLA 79K /46K
Completion Q4 2011
Stabilized future NOI US$38 million (JLL)
Average rate US$800 (JLL)
Management targets
• Development completion in Q4 2011
• The Company is exploring several
disposal possibilities of completed office
buildings, in whole or in part
13
14. Kalinina Spa
Key advantages
• Recognized recreational area
• Second Spa project in the region after
Plaza Spa success
• Attractive price-quality
Highlights
GBA/# of keys 13K /175 keys
Operation start Q1 2012
Stabilized future NOI US$3 million (JLL)
Management targets
• Start operation in Q1 2012
• Occupancy stabilization by 2012 end
14
16. Tverskaya Zastava
Key advantages
• Prime business location
• Close proximity to public transport
• Moscow top rental rates /prices in the
neighborhood
Highlights (based on JLL)
GBA Over 300K
Delivery 2016-2017
Current status
• The Company is still in negotiations
with the Moscow authorities on the
matter of Tverskaya Zastava
16
17. Otradnoye (Odintsovo)
Key advantages
• Green zone in 7 km from Moscow
• Prestigious direction & top prices in
Moscow Region
• All amenities for comfort living in place
Highlights
GBA/# of apartments 665K /c.7.5K
Revenue US$1,370 mn*
Development costs US$860 mn*
Management targets
• Renewal of construction permit and
construction start and/or cooperation
with co-investor (clarity in 2012)
* The information is based on valuation report conducted by JLL as at Jun 30, 2011
for the purpose of the Company financial statements for the 6 months 2011
17
18. Paveletskaya Phase II
Key advantages
• Central location – 5 km from the
Kremlin
• Embankment of the Moscow River
• Undersupply of quality residential space
in Moscow
Highlights
GBA 106K
Revenue US$390 mn*
Development costs US$174 mn*
Management targets
• Design and approval works proceeding
to secure construction permit (clarity in
2012)
* The information is based on valuation report conducted by JLL as at Jun 30, 2011
for the purpose of the Company financial statements for the 6 months 2011
18
19. Pochtovaya
Key advantages
• Central administrative district of Moscow
• Embankment of the Yauza River
• Undersupply of quality residential space
in Moscow
Highlights
GBA 424K
Revenue US$1,497 mn*
Development costs US$616 mn*
Management targets
• Design and approval works proceeding to
secure construction permit (clarity in
2012)
* The information is based on valuation report conducted by JLL as at Jun 30, 2011
for the purpose of the Company financial statements for the 6 months 2011
19
