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2014-05-22

East Capital Explorer AB: East Capital Explorer AB - Interim Report 1 January - 31 March 2014

Events during the first quarter

* In February, the value of East Capital Explorer's holding in Russian
fashion retailer Melon Fashion Group (MFG) was depreciated by EUR 8.5m or
12 percent, corresponding to the decline of the rouble against the euro
since December 2013, when the most recent external valuation of MFG was
made. The holding is thereby valued at EUR 62.0m. The underlying growth and
profitability forecasts that the valuation is based on, are however
unchanged
* At the Extraordinary General Meeting on 24 March, it was decided to
introduce a new class of shares, preference shares, and to authorise the
Board to issue such preference shares in order to take advantage of
attractive investment opportunities with strong cash flow and good growth.
The EGM also decided on a number of changes required to adapt the company
to EU's new regulatory framework for alternative investment fund managers
(AIFMD)
* In March, East Capital Explorer received a final pay-out totaling EUR 14.0m
from East Capital Special Opportunities Fund, that was liquidated in
accordance with the fund's original four plus one year investment cycle.
The pay-out corresponds to an annualised return on the investment of 9.4
percent
* The market sentiment towards Russia, which represents close to half of East
Capital Explorer's geographic exposure, deteriorated considerably in March
when Russia decided to formally annex the Crimea. The effect on East
Capital Explorer's portfolio is most visible in its public fund holdings
with Russian focus, most notably through East Capital Russia Domestic
Growth Fund, representing 10 percent of the portfolio, which lost 29
percent in the quarter, and through the 12 percent depreciation of MFG,
which represents 22 percent of the portfolio, due to the decline of the
rouble (see above). The exposure towards Ukraine is insignificant with East
Capital Bering Ukraine Fund R, that lost 17 percent in the quarter, having
a portfolio weight of only 1 percent

Financial results for the first quarter

* Net asset value (NAV) per share on 31 March 2014 amounted to EUR 9.17 (9.30
EUR)1. The total NAV amounted to EUR 288m (EUR 292m) corresponding to a
decrease of 6.8 percent during the first quarter
* The net result for the first quarter was EUR -21.1m (EUR 6.1m), including
EUR -21.0m (EUR 6.0m) changes in value of investments. Earnings per share
amounted to EUR -0.67 (EUR 0.19)
* Cash, cash equivalents and other short term investments on 31 March
amounted to EUR 53.8m (EUR 24.2m)

1Comparable figures for the corresponding period 2013 are stated in
parentheses

140522 - Q1 Report 2014
http://hugin.info/143006/R/1787813/614010.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: East Capital Explorer AB via Globenewswire

HUG#1787813

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