East Capital Explorer : AB - Interim Report 1 January - 30 September 2014

Key events during the third quarter

• The fair value of the direct investment in the Russian fashion retailer Melon Fashion Group (MFG), has been impaired by 8.7 percent to EUR 56.6m, based on an external valuation. The principal reason is the gradual weakening of the Russian rouble throughout this year, impacting both the operating results of MFG and the book value of the holding through translation effects (RUB/EUR rate per 30 September)
• Following an extended period of outperforming expectations, the fair value of Starman was, based on an internal valuation, appreciated by 36 percent to EUR 34.0m
• As for other real estate investments, the fair value of Vilnius Business Harbour is adjusted for operating income on a quarterly basis. This led to a value appreciation of 2.7 percent to EUR 22.9m 
• On 8 July, additionally EUR 2.3m was drawn down by East Capital Baltic Property Fund II. The company has invested a total of EUR 20.0m in the fund, which at 30 September was valued at EUR 23.9m
• At the Extraordinary General Meeting in August, Liselotte Hjorth was elected as a new Board Member. Liselotte has broad experience from banking, finance and real estate as well as from the Russian and Baltic markets, mainly through a number of positions within the SEB Group

Financial results for the third quarter

• The Group's net result for the third quarter 2014 was EUR -0.3 (3.9m)¹ including EUR 0.0m (4.0m) changes in value of investments, of which EUR 9.0m relates to Starman and EUR -5.4m to MFG. Earnings per share amounted to EUR -0.01 (0.12) for the quarter
• Net asset value (NAV) per share on 30 September 2014 amounted to EUR 9.94 (9.04). The total NAV amounted to EUR 297m (284m), a decrease of 0.1 percent compared to the previous quarter
• Cash, cash equivalents and other short term investments on 30 September amounted to EUR 12.5m (14.1m)
• The closing price of the East Capital Explorer share as of 30 September 2014 was SEK 46.60, equivalent to EUR 5.12, a decrease of 19.3 percent from 30 June 2014

¹Comparable figures in brackets refer to the corresponding period 2013

Contact information
Mia Jurke, CEO, +46 8 505 885 32
Lena Krauss, CFO and Head of Investor Relations, +46 8 505 885 94

Financial reporting calendar
· Year-end Report 1 January - 31 December 2014 on 12 February 2015

The information in this interim report is the information which East Capital Explorer AB is required to disclose under Sweden's Securities Market Act. It was released for publication at 08:00 a.m. CET on 7 November 2014.