1. AFI DEVELOPMENT PLC INVESTORS PRESENTATION AFI DEVELOPMENT PLC INVESTORS PRESENTATION AFI DEVELOPMENT PLC INVESTORS PRESENTATION January 2011

3. Overview

4. Strategy and key competencies

5. Holding structure update

6. Market update

7. Operational update

8. Financial update

11. Active on the market since 2001, operating as AFI Development since 2006 and admitted to the London Stock Exchange (LSE) in 2007

12. Strong reputation, track record of value creation and an established position on Moscow’s unsaturated real estate market with high entry barriers

13. Affiliate company of Africa Israel Group – a major Israeli conglomerate with global focus on real estate, construction and infrastructure

14. Successful track record of 8 completed projects with total of 193,000 sqm of commercial and residential space

15. Project pipeline: 5 ongoing projects to be completed within the next 1-3 years, 3 projects in active preparatory stage and 19 additional land plots in the portfolio for future development (land bank)

16. Strong liquidity position with over US$ 110 mln in cash (September 30, 2010) and secured credit facilities to complete ongoing projects

18. Development of new projects only with confirmed demand levels

19. Retaining only the highest quality / best located properties with certain residential, non-prime commercial projects and selected land bank sold off

20. Suspension of new acquisitions and staged development of acquired land bank: presently 5 major high-quality projects under development

22. Strong market reputation

23. Access to debt funding through impeccable credit history

26. Moscow real estate SWOT

28. Numerous bankruptcies and change of ownership of development companies

29. Almost no transactions on the market and highly limited distressed sales

30. Banks are holding on to pledged assets transferred to their ownership due to insolvencies

32. Low number of quality assets and projects under construction on the market (excess supply of mid and low quality properties)

33. Virtually no investor interest in acquisition of new land plots / development sites leading to a dramatic drop in prices compared to pre-crisis levels

34. Financing remains limited and costs of financing remain high (12-20% in ruble terms)

35. Decline in competition levels with many projects in construction phases suspended and no new projects being started

37. limited credit history and access to cheap debt financing

38. own production capacities that make operation less flexible to demand levels

40. high operational expertise and successful track record

41. diversified portfolio of projects in high-quality class category and A class income generating properties for which demand remains high

42. absence of own production capacities that can promptly react to changing market conditions

43. secured debt financing and established credit history with banks

45. Class A office yields: 9.5% – 10.5%

46. Class A CBD vacancy: 3% - 5%

47. Investment volume CBD prime: minimum Source: AFID, JLL, C&W

49. Yields: 10% – 11%

50. Vacancy: 2% - 4%Source: AFID, JLL, C&W

52. Construction of Ozerkovskaya III is on schedule to be completed Q3 2011. Negotiations with large tenant for Ozerkovskaya III at advanced stage

53. Construction of Paveletskayaproject is completed and opening is planned for January 2011

54. Kalinina project re-geared, planned delivery end 2011

55. Development to be started on another 3 projects (Brestskaya, Kunzevo, Pochtovaya)

56. High focus by management on corporate governance and business transparency

58. Total space of portfolio – 3 mlnsqm

59. Current MV of active projects – US$ 1.6 bln

60. Total space of active projects – over 1 mlnsqm

61. Active pipeline by current MV:

62. Retail – 41%

63. Office – 34%

64. Residential – 20%

65. Hotel – 5% *Numbers based on valuation done by JLL, AFID share of projects shown, disposed projects not included , active projects include projects “next for development”

66. Completed Projects (1) Four Winds residential Aquamarine I,II office Aquamarine II residential Four Winds office

67. Completed Projects (2) Aquamarine II hotel Plaza SPA hotel in Kislovodsk H2O office Berezhkovskaya office

70. 72% pre-let at an average rate of US$ 1,200 per sqm per year for the first year, another 10% are under negotiation

71. Construction loan refinanced resulting in extension of maturity by 2 years to Aug 2013 and a decrease in interest rates from 16% to 13.25% in ruble terms *Valuation done by JLL , Dec 31, 2009

72. Moscow City

74. The Mall is part of AFID’s complex redevelopment of TverskayaZastava Square (over 500,000 of total commercial and residential space, part of AFID’s present land bank)

75. Easy access from subway, rail terminal and specifically built underground pedestrian passes

77. The City of Moscow agreed to and started financing a part of the engineering infrastructure Valuation done by JLL, Dec 31, 2009

79. Located in Zamoskvorechye, Moscow’s prestigious business and residential area within the Garden Ring

81. Leasing negotiations are on-going

82. New credit facility for US$ 74 mln at 13.25% was signed with Sberbank. The loan is sufficient to cover all construction costsValuation done by JLL, Dec 31, 2009

85. Construction was completed at the end of Q4 2010, commissioning is expected by the end of January 2011

86. Negotiations with potential tenants are in progress

87. Possibility to let the building to a single anchor tenantValuation done by JLL, Dec 31, 2009

89. The project envisions a renovation of an existing building to a 3-star hotel with sanatorium facilities

90. The hotel is planned to be operated by AFI Hotels

92. Subsidized loan from municipality at 6.25% in RUR secured for the full development budgetValuation done by JLL, Dec 31, 2009

93. Next for development Brestskaya Kunzevo BolshayaPochtovaya All financials are AFID’s preliminary estimates

94. Map of active projects in Moscow Tverskaya Mall Mall of Russia Brestskaya Kuntsevo Pochtovaya Paveletskaya Ozerkovskaya

96. Total future area – c. 3mlnsqm (commercial/residential % 60/40)

98. Kuntzevo

99. BolshayaPochtovaya*valuation done by JLL, Dec 31, 2010, includes only project ownership of AFID

100. FINANCIAL UPDATE

102. Sufficient debt financing secured to complete current pipeline In $USD

104. Current liabilities continue gradual reduction as the Company decreases its short-term loans and borrowings

105. In Q3 2010 long term liabilities increased by US$26 mlnfollowing drawdowns made to complete Mall of Russia and Aquamarine III projects

107. Revenues for nine months to 30 September 2010 including net proceeds from the sale of trading properties increased by 15% year-on-year to US$53.9 million driven by higher rental income and residential sales.

108. Loss before tax driven by reevaluation for the period was US$49.8 million compared to profit of US$285 million for nine months to 30 September 2009.

110. Following active development of several projects cash outflow from investment activities reached US$ 101 mlnfor 9m 2010 compared to cash outflow of US$ 45 mlnin 9m 2009

111. Cash flow from financing activities was negative for the period and constituted US$ 33 mln outflow

113. Geographical focus on Moscow as it provides the strongest real estate fundamentals; concentration on high quality centrally located commercial and residential properties

114. Currently 5 projects under construction and several others at concept design stage with plan to start construction within 18 months

115. Significant focus on liquidity

116. Provided levels of available financing, liquidity and market demand are sufficient continue capitalization of extensive land bank

117. Work-in-progress to dispose several non-strategic assets

118. Effective measures of cost control and operational efficiency in place