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KMC Properties ASA

Investor Presentation • May 11, 2017

3645_rns_2017-05-11_de309d6b-6b4e-4090-b420-2885a1a5af39.pdf

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1st quarter 2017 FINANCIAL RESULTS PRESENTATION11 May 2017

DISCLAIMER

This document is being furnished for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase any security, future or other financial instrument or product. It is not intended to form the basis of an investment decision and has not been verified. Storm Capital Management Ltd. ("Storm") makes no recommendation or representation as to, and accepts no responsibility or liability for, the accuracy or completeness of the information contained herein or any other information, whether written or oral, made available and any liability therefore is expressly disclaimed. Such information is presented as of the date and, if applicable, time indicated and Storm does not accept any responsibility for updating any such information.

Any simulations, projections, valuations and statistical analyses contained herein have been provided to assist the recipient in the evaluation of the matters described herein; such simulations, projections, valuations and analyses may be based on subjective assessments and assumptions and may utilise one among alternative methodologies that produce differing results; accordingly, such simulations, projections, valuations and statistical analyses are not to be viewed as facts and should not be relied upon as an accurate representation of future events. No representation or warranty is given as to any of the simulations or analyses, or as to the achievement or reasonableness of any future projections or estimates, contained in this document.

This document has been prepared by Storm Capital Management Ltd. and should not be considered impartial research under FCA Rules. The views expressed may not be supported by independent analysis. The author of this document may be remunerated as a result of transactions generated by this information.

Storm Capital Management Ltd. is authorised and regulated in the United Kingdom by the Financial Conduct Authority. Its registered office is at Berger House, 36-38 Berkeley Square, London W1J 5AE, United Kingdom.

KEY TAKE AWAYS

NAV per share at NOK 6.42.

3. Gasfield valuation at 32.6 million USD

OPERATIONS / FINANCE

The anchor tenant Gazprom Tsentrremont gave notice to vacate the building in October 2016, and will vacate by 1 June 2017. Storm is actively in the market for re-letting the space becoming vacant from 1 June 2017.

Agreement reached with bank which includes:

  • extension of the maturity date of the bank loan from September 2018 to June 2019
  • no amortisation up to and including Q3 2018
  • waiving of covenants up to and including Q3 2018,
  • adjusted covenants for the period Q4 2018 to maturity, adapted to the changed market conditions in Russia.
  • This gives the company improved cash reserves and better opportunity through the cycle.

The agreement with the bank is subject to a capital injection of USD 3 million.

The Board has proposed a capital increase to the Annual General Meeting.

P&L – MAJOR ITEMS

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BALANCE SHEET – MAJOR ITEMS

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DEVELOPMENT OF ASSET VALUE 2009 – 2017

(1) Grifon sold. Value of Gasfield building as per valuation from independent valuer.

(2) Implied yield = NOI / asset value at closing date. 2015 yield is calculated on the 2015 NOI / Asset value at year end of the remaining asset (Gasfield)

STORM REAL ESTATE SHARE PRICE PERFORMANCE

-50%0%50%100%150%200%250%31 Dec 08 31 Mar 09 30 Jun 09 30 Sep 09 31 Dec 09 31 Mar 10 30 Jun 10 30 Sep 10 31 Dec 10 31 Mar 11 30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12 30 Jun 12 30 Sep 12 31 Dec 12 31 Mar 13 30 Jun 13 30 Sep 13 31 Dec 13 31 Mar 14 30 Jun 14 30 Sep 14 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep 15 31 Dec 15 31 Mar 16 30 Jun 16 30 Sep 16 31 Dec 16 OSEBX SRE ASA The Storm Real Estate share was listed on Oslo main exchange on 6 July 2010SRE: +60,6%(1) OSEBX: +210,4%(1)

Source: Oslo Stock Exchange, Bloomberg

(1) SRE and OSEBX adjusted for dividends. As per 4 May 2017.

OIL PRICE vs PROPERTY VALUES vs ROUBLE

Source: Global Rates.

RUSSIA – INDUSTRIAL PRODUCTION

Economic activity (as measured by industrial production) showing a positive trend

RUSSIA – INVESTMENT VOLUME BY SOURCE OF CAPITAL

Foreign capital returning

Source: Cushman & Wakefield

MOSCOW OFFICE MARKET – VACANCY RATE

MOSCOW OFFICE MARKET - AVERAGE RENTAL RATES IN RUB (1)

Source: Cushman & Wakefield

(1) Average rental rates is a weighted average rental rate of asking rents of deals closed within the period, RUB / m²/ annum/ triple net (net of op.ex and VAT)

MOSCOW OFFICE MARKET – NEW CONSTRUCTION AND ABSORPTION

New construction at low levels

EUROPEAN OFFICE CLOCK 2010 –2017

KEY TAKE AWAYS

3. Gasfield valuation at 32.6 million USD

APPENDIX

GASFIELD BUILDING

Gasfield Building

Class BGross Area c. 15,200 m² Occupancy Rate c. 98% Major Tenant Gazprom Tsentrremont

PERFORMANCE OF THE RUSSIAN MICEX INDEX

Source: Bloomberg .

(1) As per close 4 May 2017. The MICEX Index is denominated in rubles, the RTS Index is denominated in dollar.

RUSSIA – US\$/RUB AND NOK/RUB EXCHANGE RATE MOVEMENTS AND CBR KEY RATE

BRENT OIL PRICE AND OIL PRICE FUTURES

Brent Oil Price (US\$)

Source: Bloomberg, as per 5 May 2017

CONTACTCONTACT

Berger House 36-38 Berkeley Square London W1J 5AEUnited Kingdom

E-mail: [email protected] Tel: +44 (0)207 409 3378 Web: www.stormcapital.co.uk

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