Interim Report 1 January – 31 March 2012

Net asset value per share on 31 March 2012 amounted to EUR 9.52 (EUR 12.07)1 . The total net asset value amounted to EUR 321m (EUR 421m), corresponding to an increase of 9.4% (-2.1%) during the first quarter. Since 31 March 2011 the net asset value decreased 23.8% (+2.5%)
During the first quarter, the net result for the Group was EUR 42m (EUR 1m). For the shareholders of the Parent Company the net result was EUR 31m (EUR -2m) and earnings per share amounted to EUR 0.92 (EUR -0.05)
Cash, cash equivalents and other short term investments on 31 March 2012 amounted to EUR 37m (EUR 30m)
At the end of January East Capital Explorer decided to invest EUR 10m into the new East Capital Baltic Property Fund II. The fund was launched on 2 May and the fund's first investment is expected to take place later in May
During the quarter, East Capital Explorer repurchased an additional 60,415 of its own shares at an average price of SEK 54.21 per share. Since the repurchases began on 15 September 2011, the Company has repurchased 1,141,969 of its own shares, corresponding to 3.3 percent of the Company's outstanding number of shares, at an average price of SEK 51.69 per share. The repurchase program ended on 30 March 2012 and is thus completed
The closing price of the East Capital Explorer share was SEK 55.75 (corresponding to EUR 6.31)

Events after the end of the period

In April, the Annual General Meeting (AGM) of East Capital Explorer approved the Board's proposal to pay a dividend to the shareholders of SEK 0.80 per share. The AGM also approved the Board's proposal to cancel the previous repurchased shares. Furthermore the AGM issued a new repurchase authorization for the Board to decide on acquiring the Company's own shares until the next AGM 2013
As announced in a separate press release on 8 May, East Capital Explorer has decided to divest its holding in TEO LT. The divestment will result in an annualised pre-tax return of 17.4%. The transaction will be completed after the 9 May, i.e. the record date for the dividend
The total net asset value on 30 April 2012 amounted to EUR 313m (EUR 401m), corresponding to EUR 9.27 (EUR 11.51) per share, reflecting a decrease during the month of 2.6%
Cash, cash equivalents and other short term investments amounted to EUR 37m (EUR 59m) of which EUR 24m were available for future investments
The closing price of the East Capital Explorer share as of 30 April 2012 was SEK 52.25 (corresponding to EUR 5.87)

¹ Comparable figures for the corresponding period the previous year are stated in parentheses

Portfolio on 31 March 2012

East Capital Explorer's portfolio comprises investments in East Capital funds, Direct Investments and Short-term Investments. The investment portfolio is actively managed by East Capital and a majority of the investments are done through East Capital's special fund products. The largest geographical exposure is towards Russia with a weight of 44% and 74% of the portfolio is invested in the Company's targeted sectors; Financials, Power Utilities, Retail- and Consumer Goods and Real Estate.

Portfolio per 31 March 2012	Fair value 31 Mar 2012 mEUR1	NAV/Share, EUR	% of NAV	Fair Value 31 Dec 2011, mEUR	Value change Jan–Mar 2012, %2
Fund Investments
East Capital Power Utilities Fund	44.7	1.33	14	36.5	22.4
East Capital Bering Balkan Fund	41.3	1.22	13	38.1	8.3
East Capital Special Opportunities Fund	35.0	1.04	11	29.3	19.2
East Capital Bering Russia Fund	30.9	0.92	10	28.1	10.0
East Capital Special Opportunities Fund II	26.0	0.77	8	24.8	5.1
East Capital Bering Central Asia Fund	19.4	0.57	6	16.6	16.6
East Capital Bering New Europe Fund	13.2	0.39	4	12.1	9.2
East Capital (Lux) Eastern European Fund	8.9	0.26	3	7.4	18.9
East Capital Bering Ukraine Fund Class A	5.7	0.17	2	5.6	1.8
East Capital Bering Ukraine Fund Class R	5.4	0.16	2	5.5	-1.6
Total Fund Investments	230.5	6.84	72	204.1	12.9
Direct Investments
Melon Fashion Group	19.5	0.58	6	19.5	0.0
TEO LT	17.9	0.53	6	15.9	6.0
Komercijalna Banka Skopje	11.0	0.33	3	9.7	13.4
Trev-2 Group	4.0	0.12	1	4.0	0.0
East European Debt Finance	1.3	0.04	0	1.1	9.0
Populi	0.1	0.00	0	0.1	0.0
Total Direct Investments	53.9	1.60	17	50.4	4.7
Short-term Investments
Short-term investments	17.3	0.51	5	22.8
Cash and cash equivalents	20.0	0.59	6	16.6
Total Short-Term Investments	37.2	1.10	12	39.4
Total Portfolio	321.6	9.54	100	294.0
Other assets and liabilities net	-0.5	-0.02	0	-0.4
Net Asset Value (NAV)	321.1	9.52	100	293.6	9.4

1 EUR = 8.83 SEK on 31 March 2012. Source: Bloomberg

The value change calculation is adjusted for investments and distributions during the relevant period, i.e. it is the percentage change between the starting fair value plus any added investment during the period and the ending fair value plus any proceeds from divestments or dividends received during the period

Note that certain numerical information may not sum due to rounding

East Capital Explorer in Figures

East Capital Explorer provides a liquid exposure to unique investment opportunities across the Eastern European region through its listing on NASDAQ OMX Stockholm, Mid Cap. The closing price per share on 31 March 2012 was SEK 55.75 (corresponding to EUR 6.31). During the quarter, the share price increased by 4.8%.

Net Asset Value

The net asset value on 31 March 2012 amounted to EUR 321m, corresponding to EUR 9.52 per share. This corresponds to an increase of 9.4% compared to the net asset value on 31 December 2011 which was EUR 294m (EUR 8.69 per share) and a decrease of 23.8% compared to the net asset value on 31 March 2011.

On 31 March 2012, cash, cash equivalents and other short-term investments amounted to EUR 37m corresponding to EUR 1.10 per share. The closing price of the East Capital Explorer share was SEK 55.75 (corresponding to EUR 6.31).

Net asset value, share price and index development

(% change in EUR)	1 Jan – 31 Mar	1 Jan – 31 Mar
	2012	2011
Net asset value	9.4	-2.1
East Capital Explorer share	4.8	1.0
SAX Index1	11.4	-1.0
RTS Index2	15.1	7.9
RTS 2 Index3	20.5	-0.8
MSCI EM Europe4	15.9	5.2

SAX Index includes all equities listed on NASDAQ OMX Stockholm

RTS Index includes the 50 largest companies traded on the Russian Trading System

RTS 2 Index includes 78 companies on the RTS that have limited trading volumes 4

MSCI EM Europe Index includes Russian, Polish, Hungarian, Czech and Turkish equities

Portfolio per 31 March 2012 (%)

East Capital Power Utilities Fund East Capital Bering Balkan Fund East Capital Special Opportunities Fund East Capital Bering Russia Fund East Capital Special Opportunities Fund II

East Capital Bering Central Asia Fund

East Capital Bering New Europe Fund Komercijalna Banka Skopje

East Capital (Lux) Eastern European Fund East Capital Bering Ukraine Fund A East Capital Bering Ukraine Fund R

Melon Fashion Group

TEO LT

Trev-2 Group

Populi

East European Debt Finance

Investments % of NAV Theme 10.9% 13.9% 12.9% 9.6% 8.1% 6.1% 6.0% 5.6% 4.1% 3.4% 2.8% 1.8% 1.7% 1.2% 0.4% 0.0%

Fund investments Direct investments

Industry restructuring/event driven Small cap/value Special situations/activist Small cap/value Special situations/activist Retail/growth Small cap/value Telecom/value Small cap/value Financials/growth Eastern Europe Small cap/value Small cap/value Infrastructure/growth Financials/growth Retail/growth

Top 10 companies in East Capital Explorer's portfolio on a see-through basis1

On 31 March 2012
Company	% of NAV	Value in portfolio, EURm	Country		Sector East Capital Explorer's investment vehicle
TEO LT	7.0	22.5	Lithuania	Telecommunication Services	Direct investment East Capital Special Opportunities Fund, East Capital (Lux) Eastern European Fund
Melon Fashion Group	6.1	19.5	Russia	Consumer Discretionary Direct investment
Komercijalna Banka Skopje	4.1	13.2	Macedonia		Financials Direct Investment East Capital Bering Balkan Fund
Fondul Proprietatea	3.9	12.6	Romania		Financials East Capital Bering Balkan Fund East Capital Special Opportunities Fund East Capital (Lux) Eastern European Fund
Integra	2.4	7.8	Russia		Energy East Capital (Lux) Eastern European Fund East Capital Special Opportunities Fund East Capital Special Opportunities Fund II
Verofarm	1.9	6.1	Russia		Health Care East Capital Bering Russia Fund East Capital Special Opportunities Fund East Capital Special Opportunities Fund II
Bank of Georgia	1.8	5.8	Georgia		Financials East Capital Bering Central Asia Fund East Capital (Lux) Eastern European Fund
E.ON Russia	1.7	5.4	Russia		Utilities East Capital Power Utilities Fund
Zavarovalnica Triglav	1.6	5.1	Slovenia		Financials East Capital Bering Balkan Fund East Capital (Lux) Eastern European Fund East Capital Special Opportunities Fund II
B92	1.5	4.7	Serbia		Consumer Discretionary East Capital Bering Balkan Fund
Total top 10	32.0	102.7

¹ As if East Capital Explorer AB had owned its pro-rata share of all the underlying securities in the different funds it has invested in

Portfolio breakdown

Sector breakdown, % per 31 March 2012 Country breakdown, % per 31 March 2012 Asset class, % per 31 March 2012

4 Slovenia
3 Georgia

* = cash and short term investments, incl cash in underlying funds

CEO Comments on the First Quarter

The year has started on a positive note, and the Net Asset Value (NAV) of East Capital Explorer increased by 9.4% during the first quarter. The total NAV amounted to EUR 321m as of the 31 March and the NAV per share was EUR 9.52. A broad recovery in the markets started in January and continued in February. In March, we could see a slight correction in the market. Again, the increased market volatility was due to news from other parts of the world, and it had an impact also on our region.

"The Net Asset Value (NAV) of East Capital Explorer increased with 9.4% during the first quarter."

However, we still see many reasons why the Eastern European region in general and Russia in particular, should be able to perform well going forward. The political unrest in Russia has calmed down following the Presidential elections in March and the discount level compared to other emerging markets is higher than what is motivated looking at the fundamentals. However, the region's development will continue to be affected by the global market and the risk willingness among investors.

Portfolio development and activity

The portfolio holdings showed positive performance in general during the first quarter, with the strongest recovery in the East Capital Power Utilities Fund, which increased by 22.4% during the first three months of the year. Again we saw that the larger and more liquid markets and stocks moved first in a general strengthening of the markets, which means that many of the smaller holdings and markets included in the Company's portfolio are lagging during the general uptick in the region. However, we continue to believe that our strategy, which focuses mainly on small and medium-sized companies, offers strong performance potential in the long-term.

Besides additional purchases in the Lithuanian telecommunications company TEO LT, no new investments were made during the quarter. The decision to invest into East Capital Baltic Property Fund II was announced on 1 February, and the fund was launched on 2 May. The investment will increase the current exposure to Real Estate, one of the target sectors in the strategy of East Capital Explorer which has so far been underweighted. We believe that the timing is right to enter the Baltic real estate market, which was strongly hit following the financial crisis in 2008 and is now showing attractive yield levels.

"We believe that the timing is right to enter the Baltic real estate market."

The repurchase program ended on 30 March. During the last quarter 60,415 shares were repurchased and the full program ended with 3.3% of the Company's shares being bought back since 15 September 2011.

AGM 2012

The AGM was held on the 25 April and the proposed dividend of SEK 0.80 was approved. The dividend is a way to return some of the dividend received in the Company's investments during 2011, in line with the Company's dividend policy. The record date for the dividend was 30 April. The AGM also approved the redemption of the previously repurchased shares as well as a new repurchase mandate to the board. The board has every year since 2009 used its mandate for repurchases when the share has traded on high discount levels.

The AGM further re-elected Paul Bergqvist, Lars Emilson, Karine Hirn and Alexander Ikonnikov as members of the Board. Anders Ek and Justas Pipinis had declined re-election and Lars O Grönstedt and Louise Hedberg were elected as new members. Lars O Grönstedt, with a long background in the financial markets and board member in a number of listed and unlisted companies, as well as Louise Hedberg, Head of Corporate Governance at East Capital, will add valuable experience to the board. The meeting also re-elected Paul Bergqvist as Chairman of the Board.

Events after the quarter

The NAV for April decreased by 2.6%. The macro statistics from China, the Eurozone and the US came in weaker than expected which, again, increased the volatility in the market and consequently affected investor risk appetite towards our region. As for the power utilities sector, uncertainties regarding the regulations in the sector, had a negative effect. The uncertainties should decrease once the new government has been formed.

East Capital Explorer also decided to divest its holding in TEO LT, which was announced in a press release on 8 May. The transaction will result in an annual pre-tax return of 17.4%, and we are very satisfied with the return on the investment.

Mia Jurke CEO

Investment Manager Comment

Market comment

Stock markets rose sharply at the beginning of the year after a long period of sell-offs. Investors' appetite for risk returned and they started to buy equities again after having been favouring cash and more defensive assets such as bonds and gold. The primary reasons behind the renewed optimism were the ECB's liquidity injections and better-than-expected macro numbers from the US, coupled with the Euro zone economy not developing worse than expected.

The gains were the largest in emerging markets, where both equities and currencies performed strongly. This should, however, not come as a surprise, as these assets were sold off sharply in 2011 on the back of the problems in the Euro zone. As is the general case, the more illiquid stocks did not see the same strong performance even though recovering as well. Smaller and more illiquid companies are likely to rebound later in the recovery phase since investors tend to first focus on larger and more liquid stocks. Though, this time also medium-sized companies tended to perform well.

"Smaller and more illiquid companies are likely to rebound later in the recovery phase."

The recovery within the emerging market universe was, however, somewhat unusual. Investors often focus on the large index markets in Asia and Latin America before turning their attention to Russia and Eastern Europe. But it is actually Russia that has been the darling of investors so far this year and it seems a rational strategy, as both the equity market and the currency have been among the strongest year to date.

Investors have thus dared to return to Russia even though the political uncertainty has been greater than normal. It is natural to assume that this is a result of the high and rising oil prices, but as investors have been taking money out of the Brazilian market, which also has a large concentration of energy companies, oil prices cannot be the sole reason. A more important reason behind the Russian wave is rather the simple fact that the fundamentals are attractive. The Russian market is approximately 40% cheaper than the Brazilian in p/e terms, and Russian energy companies have started to pay out more dividends. The Russian economy is not only growing faster, inflation is also lower and public finances are much healthier than in Brazil. The country has had the largest flows and the best performance of the BRICs so far. Russia is still the cheapest and enjoys a handful of specific triggers such as politics, WTO accession, privatisation, and financial market reform which speak in favour of Russia going forward.

"…Russia is still the cheapest and enjoys a handful of specific triggers such as politics, WTO accession, privatisation, and financial market reform which speak in favour of Russia going forward."

Equity markets across Europe sold off in March after the very strong start of the year. Renewed global growth concerns and profit taking are the two main explanations behind the correction. The Russian market corrected slightly in March after two very strong months. The market took direction from both domestic and external developments. The domestic news was primarily related to the political development. The presidential election was a foregone conclusion, but nevertheless important as some investors had waited for it to be out of the way. The market was, however, negatively impacted by talks about rising taxes for exporters in general and Gazprom in particular. The market

was also negatively affected by renewed global growth concerns. It was, however, not the Eurozone but rather China that was in focus. Anecdotal evidence suggests that it was traders who were selling while retail investors put more money into Russia. There were outflows from many emerging markets in March, but Russia continued to see inflows, suggesting that investors are using the correction as an entry point.

The Baltic markets' performance weakened during March. The markets in Central Europe also took a breather after the strong start of the year. It had been a while, but some of the frontier markets in Southeastern Europe outperformed in March. Slovenia and Croatia were the two best markets in Eastern Europe during the month. The neighbouring Turkish market is the strongest in Eastern Europe so far this year.

Portfolio comment

During the first quarter of 2012, we saw a recovery in East Capital Explorer's portfolio. The Net Asset Value increased by 9.4%.

Fund Investments

It was the fund investments that showed the strongest performance during the period. The East Capital Power Utilities Fund together with the East Capital Special Opportunities Fund had the strongest positive impact on the portfolio's net asset value. The Power Utilities sector saw a strong recovery during the beginning of the year after a difficult 2011. The strongest contribution to the fund's performance came from the largest holding, E.ON Russia, on expectations that the company will start to pay a dividend. If approved, the record date will be 14 May and E.ON Russia will be one of the first companies in the sector paying substantial dividends. The East Capital Power Utilities Fund's high exposure to the distribution sector was also beneficial, the sub-sector performed strongly in anticipation of progress in the privatisation theme after the Presidential elections.

"The East Capital Power Utilities Fund together with the East Capital Special Opportunities Fund had the strongest positive impact on the portfolio's net asset value."

In the East Capital Special Opportunities Fund, most of the performance during the quarter came from two holdings; Sollers and Fondul Proprietatea. The two companies were also the ones contributing the most to the performance of East Capital Explorer's NAV. Sollers, a Russian car producer, gained an amazing 73% on the back of speculation that the Government will force state owned companies to buy locally produced cars. Fondul Proprietatea, East Capital Explorer's fourth largest holding on a see through basis, also showed a strong start to the year, gaining 38%. The share overhang from last year has disappeared and at the same time some of the fund's holdings are expected to be privatised in the near future. The company also has an expected high dividend level, a new mandate for share buybacks, and at the company's AGM an incentive program for the manager was approved incentivising further cash distribution to shareholders.

We have also seen a general recovery in the other fund investments with exception of East Capital Bering Ukraine Fund class A and R. The East Capital Bering Ukraine Fund class A, which consists of mainly listed companies, felt the effect of the positive momentum of the stock markets in January. It abated, however, in the remaining two months since the most beaten-down quality names, such as MHP and Astarta, had recovered part of their previous losses in January while the Ukrainian market as a whole remained out of investors' favour as a

result of the looming devaluation risk. Ukraine therefore ended up as the third weakest market in our Investment Universe. The East Capital Bering Ukraine Fund class R, including only unlisted holdings, was the only fund showing a negative performance during the first quarter, mainly due to currency effects.

Direct Investments

When it comes to East Capital Explorer's direct investments, the two listed companies, Komercijalna Banka Skopje (KBS) and TEO LT, showed, not surprisingly, the strongest development given that the unlisted holdings are not as affected by sentiment changes in the short run. KBS continued to show good top line results, but heavy provisions continued to have a weakening effect on the bottom line. The share was up over 20% in local currency before the Annual General Meeting, likely due to expectations regarding the dividend size. The share adjusted after the dividend ex-date, to end the quarter just under 13%. The bank continues to be attractively valued to peers in the region.

TEO LT showed both positive results and a higher than expected dividend, information that was positively received by the market. The company's AGM approved the board proposal of a dividend yield of 9%, which means that 95% of the net earnings of 2011 will be forwarded to the company's shareholders. East Capital Explorer continued increasing its position in the company during the first quarter buying additional shares of a value of EUR 1.1m.

"TEO LT showed both positive results and a higher than expected dividend"

Melon Fashion Group, East Capital Explorer's largest direct investment, showed a strong growth in revenue according to the preliminary results for the first quarter in 2012. The increase amounted to 42% compared to the same period in 2011 and the core concepts; Zarina, Befree and Love Republic, contributed 79% of the revenue during the quarter. We believe that the impressive sales increase is mainly a result of the management's efforts to solve the logistics problems which had a negative effect on the company's result during 2011.

"Melon Fashion Group, East Capital Explorer's largest direct investment, showed a strong growth in revenue according to the preliminary results for the first quarter in 2012."

Melon Fashion Group has also decided to close down one of its concepts, Co&Beauty, due to lower than expected profitability. The decision is expected to be fully implemented in the beginning of June. The company is also in the process of closing down some stores performing less satisfactory, mainly master-franchised concepts, which decreased in number by 4 stores during the quarter. Also during the quarter, 6 new stores of the core brands were opened.

Outlook

The Company holds a relatively high amount of funds available for future investments which we believe is very positive in the light of the currently low valuations in the markets.

The previously announced investment of EUR 10m in East Capital Baltic Property Fund II will take place later in May. The Baltic property market is looking very attractive and this will increase the current low exposure to the real estate sector in the portfolio, which has been a targeted sector since East Capital Explorer was launched. The Company's portfolio has so far been underweighted in this sector due to the considerable difficulties the sector experienced at the time and after the 2008 financial crisis, but there has been stabilization in the real estate sector in the Baltics and we believe this is the right time to increase the exposure. The East Capital Baltic Property

Fund II is expected to finalise its first investment in May, which is a modern logistics property in Tallinn. The property is fully let with a strong tenant mix and the expected return is in the higher range of the fund's general expectations, which is 15-20% IRR (internal rate of return), coupled with a dividend yield of 4-6% annually.

"East Capital Explorer is well-positioned to take advantage of a market recovery in Eastern Europe."

We also have a number of other investment ideas that we believe will materialize during the year. East Capital Explorer is well-positioned to take advantage of a market recovery in Eastern Europe and we, as the Investment Manager, are working very actively with the investment portfolio to increase the value.

Peter Elam Håkansson Chairman, East Capital

Portfolio Investments

On 31 March 2012, East Capital Explorer had fund and direct investments totalling EUR 284m compared to EUR 394m on 31 March 2011. The majority of the portfolio consists of East Capital's special funds products which represent 72% of the portfolio. Excluding East Capital (Lux) Eastern European Fund, the funds East Capital Explorer invests in have a less restrictive investment mandate compared to UCITS-funds which means that these funds have a higher flexibility in choice of investments and allocations.

Investment Management team at East Capital

Peter Elam Håkansson, Founding Partner and Chairman, heads the Public Equity investment team. The Eastern European-team consists of senior advisors, Aivaras Abromavicius and Jacob Grapengiesser, as well as regional portfolio managers Adrian Pop and Eglé Fredriksson. The investment team is supported by a team of traders, analysts, macroeconomists, and a corporate governance function. Kestutis Sausnauskas, Founding Partner, heads the Private Equity investment team.

Senior Advisor

Peter Elam Håkansson Head of Public Equity

Portfolio Manager

Eglé Fredriksson Portfolio Manager

Kestutis Sasnauskas Head of Private Equity

Macedonia 5.7 Croatia 3.4 Montenegro 2.9 Bulgaria 1.6

Fund Investments

If you wish to receive more comprehensive quarterly updates from the Investment Manager regarding the East Capital Bering Funds and Special Opportunities Fund I and II in our portfolio, please send an email to: [email protected]. Please note that the quarterly update letters are not prepared or approved by East Capital Explorer or its Board of Directors. They are provided quarterly by the Investment Manager to investors in these funds.

East Capital Bering Balkan Fund

The aim of the fund is to achieve long term capital appreciation from investments in Balkan equities, both listed and unlisted. The fund may also invest in companies that have significant trade with, or active investments in, the Balkans countries.

At the end of the period East Capital Explorer's share of the fund was 65%.

Fund performance			Since
	Q1 2012	2011	Dec 07
East Capital Bering Balkan Fund, EUR	8%	-18%	-54%

Portfolio highlights during the quarter

• The Romanian restitution fund, Fondul Proprietatea, gained 38%, in part due to increased interest by foreign institutional investors who currently hold close to 47% of the company's shares. Fondul Proprietatea still trades at a 52% discount to NAV and has proposed a dividend from last year's profit implying a 6.8% yield

• Midsized Serbian bank, Agrobanka, was down 54% after it revealed it made a significant loss in 2011 due to large write downs in its loan portfolio. As the loss was larger than anticipated and did not match previous audited statements, we, together with other minority investors, took action and are discussing potential solutions with Serbian authorities

• Certain Balkan holdings started to perform, with Zavarovalnica Triglav, the largest insurer in Slovenia, up 39%, and Ad Plastik, a Croatian auto component producer, up 28%

Portfolio breakdown, % per 31 March 2012 Sector weighting Sector % of the portfolio Financials 57.9 Consumer Discretionary 18.8 Consumer Staples 10.6 Telecom. Services 5.5 Asset allocation by country % of the portfolio Romania 32.5 Serbia 22.3 Slovenia 13.6 Turkey 9.5 Bosnia 8.5

Largest holdings in the Fund on 31 March 2012

Energy 3.7 Industrials 2.4 Materials 0.8 Utilities 0.3

	Weight,	Perf,	Contr,
Company	%	%	%*	Country	Sector
Fondul Proprietatea	12.3	37.5	3.5	Romania	Financials
B92	11.4	0.0	0.0	Romania	Cons Discr.
Pinar Et Ve Un	7.2	16.2	1.1	Turkey	Cons. Staples
Nova Kreditna Banka Maribor (NKBM)	5.2	10.1		0.6 Macedonia	Financials
Komercijalna Banka Skopje	5.1	13.4	0.6	Slovenia	Financials
Zavarovalnica Triglav	4.2	38.9	1.3	Slovenia	Financials
Ad Plastik	3.2	27.6	0.7	Bosnia	Cons. Discr.
Telekom Srpske	2.8	10.4	0.3		Bosnia Telecom. Services
Sif 5 (Oltenia)	2.8	30.6	0.7	Romania	Financials
Conpet Sa Ploiesti	2.7	0.8	0.0	Serbia	Energy
All figures in EUR

* Contribution to the portfolio performance

10 largest holdings	Unlisted holdings
(% of fund)	(% of fund)	Total number of holdings
57	14	72

East Capital Bering Central Asia Fund

The aim of the fund is to achieve long term capital appreciation from investments in Central Asian equities, both listed and unlisted. The fund may also invest in companies that have significant trade with, or active investments in, the Central Asian countries.

At the end of the period East Capital Explorer's share of the fund was 51%.

Fund performance			Since
	Q1 2012	2011	Jan 08
East Capital Bering Central Asia Fund, EUR	17%	-34%	-56%
KASE Index, EUR	11%	-34%	-57%

Portfolio highlights during the quarter

• Performance was marked by a general improvement in sentiment and some of the optimism spilling over into Kazakh equities. Support also came from some positive company news

• Our expectations that Bank of Georgia should perform following the completion of the premium listing in London were fulfilled, and its shares posted a solid gain of 15%

• Kazmunaygaz (KMG) and Dragon Oil posting impressive gains of 32% and 37% respectively. The strong oil price aided the performance and a further trigger for KMG was the news that its board recommend a hike in dividends implying a yield of 8%

• Halyk Bank shares lifted after the rally in the Russian financials, while lending growth remained subdued. The bank's liquidity position and profitability are clearly improving and this year the bank targets a 15% ROE with further upside potential coming from the possible buyback of the remaining state interest in its capital

• Steppe Cement declined 23% as a result of selling pressure as one institutional shareholder reduced its exposure to the region. The backdrop for cement markets is improving, with cement prices steadily rising, while a pick-up in sales volumes is not yet there due to the slow recovery of the real estate market

East Capital Bering New Europe Fund

The aim of the fund is to achieve long term capital appreciation from investments in Central European and Baltic equities, both listed and unlisted. The fund may also invest in companies that have significant trade with, or active investments in, the Central European or the Baltic countries.

At the end of the period East Capital Explorer's share of the fund was 88%.

Fund performance			Since
	Q1 2012	2011	May 08
East Capital Bering New Europe Fund, EUR	9%	-37%	-16%

Portfolio highlights during the quarter

• Polish holdings were the strongest driver behind the performance. The strongest Polish holding was Mennica Polska, up 33% with sales growth of 132% and profits tripling

• Polish BPH bank regained lost ground with a 43% rally. We have significantly reduced this holding as we believe this bank's low margins and risky business constitute a value trap

• Ablon Group, Hungarian real estate developer, was by far the weakest performer down 33%. We held a series of conversations with the management, creditors and investors to understand its liquidity problems and have decided that we will try to be more active in this company going forward

• Hungarian alternative energy provider, E-star, has also continued to slide, down 28% and we continued to sell shares in this company. The crucial issue for E-star going forward is whether it will be able to secure new financing to ensure future growth

Portfolio breakdown, % per 31 March 2012

Sector weighting

% of the portfolio
	40.5
 Kazakhstan	33.8

	5.4 0.9
 Uzbekistan	0.2
	0.1

	 Georgia  Turkmenistan 19.0  Ukraine  Armenia  Russia

Asset allocation by country

Largest holdings in the Fund on 31 March 2012

	Weight,	Perf,	Contr,
Company	%	%	%*	Country	Sector
Bank of Georgia	28.9	15.3	6.0	Georgia	Financials
Dragon Oil	18.5	37.0		5.1 Turkmenistan	Energy
Kazmunaygaz	12.8	32.0	3.5	Kazakhstan	Energy
Chagala Group	6.6	31.1	1.8	Kazakhstan	Financials
Caucasus Agro Development	5.8	-1.8	-0.1	Georgia	Cons. Staples
Henryland	5.3	-0.2	0.0	Ukraine	Financials
Halyk Bank	4.7	29.9	1.1	Kazakhstan	Financials
Bank Tsentrkredit	3.6	4.2	0.2	Kazakhstan	Financials
Teliani Valley	2.4	-1.7	0.0	Georgia	Cons. Staples
Steppe Cement	2.2	-22.5	-0.7	Kazakhstan	Materials
All figures in EUR
* Contribution to the portfolio performance

10 largest holdings	Unlisted holdings
(% of fund)	(% of fund)	Total number of holdings
91	12	22

Portfolio breakdown, % per 31 March 2012

Sector	% of the
	portfolio
Financials	18.1
Industrials	14.8
Materials	14.3
Consumer Discretionary	12.8
Information Technology	11.6
Utilities	9.3
Consumer Staples	7.4
Telecom. Services	6.9
Energy	4.6
Health Care	0.3

Asset allocation by country % of the portfolio

 Poland	61.2
 Hungary	16.2
 Slovakia	7.0
 Baltics	6.8
 Estonia	6.2
 Czech rep.	2.6

Largest holdings in the Fund on 31 March 2012

Company	Weight, %	Perf, %	Contr,	%* Country	Sector
Mennica Polska	7.6	32.8	1.9	Poland	Materials
Morpol	6.8	9.7	0.7	Poland	Consumer Staples
Netia	6.6	29.1	1.6	Poland	Telecom. Services
Elko	6.6	-2.9	-0.2	Baltics	Information Technology
Ablon Group	6.4	-33.3		-3.5 Hungary	Financials
Pannenergy	5.6	10.5		0.6 Hungary	Materials
Bogdanka	4.5	31.7	1.1	Poland	Energy
Tallinna Vesi	4.2	2.7	0.1	Estonia	Utilities
Kruk Group	3.9	22.3	0.7	Poland	Financials
Asseco Slovakia	3.9	39.5	1.1	Slovakia	Information Technology

All figures in EUR * Contribution to the portfolio performance

10 largest holdings (% of fund)	Unlisted holdings (% of fund)	Total number of holdings
56	8	57

% of the portfolio

Asset allocation by country

East Capital Bering Russia Fund

The aim of the fund is to achieve long term capital appreciation from investments in Russian equities, both listed and unlisted. The fund may also invest in companies that have significant trade with, or active investments in, Russia.

At the end of the period East Capital Explorer's share of the fund was 44%.

Fund performance			Since
	Q1 2012	2011	Dec 07
East Capital Bering Russia Fund, EUR	10%	-34%	-56%
RTS-2 Index, EUR	21%	-30%	-14%

Portfolio highlights during the quarter

• Fesco, the Russian transportation group, was the strongest contributor to the fund performance, up 48% though trading at 60% of its 3 year-high level. A strong sentiment in Russian cyclical stocks and positive news from Fesco explained the strong performance

• The share of the ailing Rosinter, the leading casual dining chain operator in Russia, finally performed, gaining 60%, but is still more than 70% below its 2010–2011 high. Rosinter has every month lost traffic at a 5% per year pace for the past 12 months, which will cause serious damage to its full year 2012 top line results if traffic does not recover by year end

• Kuzbassrazrezugol, Russia's second-largest coal producer, was the secondbest contributor in the fund, up by 67%. The fund sold its entire position at a substantial premium to the market price. The risk of a squeeze out has increased significantly after our stake has been sold

East Capital Bering Ukraine Fund A

The aim of the fund is to achieve long term capital appreciation from investments in Ukrainian equities. The fund may also invest in companies that have significant trade with, or active investments in, Ukraine.

Since 1 January 2010, the East Capital Bering Ukraine Fund is split into two classes: East Capital Bering Ukraine Fund Class A, comprising mainly of listed holdings, and East Capital Bering Ukraine Fund Class R, that comprises the illiquid private equity assets.

At the end of the period East Capital Explorer's share of the fund was 34%.

Fund performance			Since
	Q1 2012	2011	Jan 08
East Capital Bering Ukraine Fund A, EUR	2%	-28%	-61%
PFTS Index, EUR	-4%	-45%	-69%

Portfolio highlights during the quarter

• Three companies stood out in terms of performance: sugar producer Astarta, poultry producer MHP and Ukrsotsbank. The renewed risk-on mood lifted the stocks of these three high-quality companies with strong corporate governance. We increased our holding in MHP from 1.3% to 12.7% of the fund and allocated a 3.1% weight to Astarta. The trades played out well, as Astarta soared 37% and MHP strengthened 28% during the quarter

• Ukrsotsbank rose 13%, boosted by the announcement that the bank is planning to raise USD 150m to repay part of its relatively pricy subordinated debt to parent bank UniCredit. According to Ukrainian law, the bank is obliged to buy out the investors that vote against the placement at the subscription price, which is 25% higher than the closing price prior to the announcement

• The first quarter was relatively active in terms of the number of trades. On top of the already-mentioned deals, we also sold out our entire holding in Creativ Group, which delivered the single largest contribution to the fund. Part of the proceeds from the trade were allocated towards Bank Aval, Ukrtelecom and Stirol

Portfolio breakdown, % per 31 March 2012

Sector weighting

Sector	% of the
	portfolio
Industrials	29.9
Materials	18.6
Financials	13.5
Energy	12.7
Consumer Discretionary	12.3
Health Care	7.1
Information Technology	2.7
Consumer Staples	1.4
Utilities	1.0
Telecom. Services	0.8

Largest holdings in the Fund on 31 March 2012
Company	Weight, %	Perf, %	Contr, %*	Country	Sector
Fesco	12.8	48.3	4.1	Russia	Industrials
Ufimsky Npz	6.6	8.7	0.4	Russia	Energy
Korshunovsky	6.5	16.3	1.0	Russia	Materials
Verofarm	5.3	8.7	0.5	Russia	Health Care
Nova Liniya	4.8	-2.9	-0.1	Ukraine	Cons. Discr.
Neftekamsky Avto	3.6	15.5	0.4	Russia	Industrials
Rosinter	3.5	60.2	1.3	Russia	Cons. Discr.
Kantik	3.2	1.3	0.0	Ukraine	Financials
Bank Tsentrkredit	3.1	4.0	0.2	Kazakhstan	Financials
Sinarsky Trubny	2.8	19.7	0.4	Russia	Industrials

All figures in EUR

* Contribution to the portfolio performance

10 largest holdings (% of fund)	Unlisted holdings (% of fund)	Total number of holdings
52	13	87

Portfolio breakdown, % per 31 March 2012

Sector weighting

Sector	% of the
	portfolio
Consumer Staples	44.4
Financials	14.3
Utilities	12.2
Telecom. Services	12.0
Materials	9.7
Consumer Discretionary	3.9
Health Care	2.4
Industrials	0.7
Energy	0.4

Asset allocation by country % of the portfolio

Largest holdings in the Fund on 31 March 2012

	Weight,	Perf,	Contr,
Company	%	%		%* Country	Sector
MHP	12.7	27.8	1.1	Ukraine	Cons. Staples
Retail Group	12.3	6.1	0.7	Ukraine	Cons. Staples
Ukrtelecom		10.0 -12.3		-1.1 Ukraine	Telecom. Services
Tsentr Energo	9.4	-9.9		-1.1 Ukraine	Utilities
Chumak	4.4	-1.8		-0.1 Ukraine	Cons. Staples
Anthousa	4.0	-2.9		-0.1 Ukraine	Cons. Staples
Ukrsotsbank	3.7	12.7	0.4	Ukraine	Financials
Bank Aval		3.4 -12.6		-0.4 Ukraine	Financials
Astarta	3.1	37.3	0.8	Ukraine	Cons. Staples
Luaz	2.9	-0.6		-0.0 Ukraine	Cons. Discr.

All figures in EUR

* Contribution to the portfolio performance

10 largest holdings (% of fund)	Unlisted holdings (% of fund)	Total number of holdings
66	6	33

East Capital Bering Ukraine Fund R

Since 1 January 2010, the East Capital Bering Ukraine fund is split into two classes: East Capital Bering Ukraine Fund Class A, comprising listed holdings, and East Capital Bering Ukraine Fund Class R, that comprises the illiquid private equity assets.

At the end of the period East Capital Explorer's share of the fund was 12%.

Fund performance			Since
	Q1 2012	2011	Jan 08
East Capital Bering Ukraine Fund R, EUR	-2%	-13%	-70%
PFTS Index, EUR	-4%	-45%	-69%

Portfolio highlights during the quarter

• Our two holdings in the real estate sector, Kantik and Henryland Group, together constitute 52% of the fund's assets which is due to historical strong performance from these companies. Kantik returned 1% while Henryland's performance was almost unchanged.

• The Do-It-Yourself-chain, Nova Liniya's revenue amounted to USD 60m, which is 15% lower than the first quarter 2011. Like-for-like sales dropped by 8.5%, impacted by the extremely cold and snowy weather in Ukraine during January and February and increased competition by Epicentr. Gross margins, however, continue to develop positively and for January and February 2012, the combined gross margin was 26%, compared to 22% for the same period in 2011

• Chumak, a leading Ukrainian producer of high-quality food products, recorded a strong quarter with a revenue increase of 14% compared to the first quarter of 2011 and improved gross margins

East Capital (Lux) Eastern European Fund

The aim of the fund is to invest in shares of companies in the whole Eastern Europe. The fund seeks investments in a broad spectrum of countries, sectors and companies.

The fund is a daily traded UCITS-fund. More information can be found at the East Capital website www.eastcapital.com.

At the end of the period East Capital Explorer's share of the fund was 9%.

Fund performance			Since
	Q1 2012	2011	Dec 07
East Capital (Lux) Eastern European Fund, EUR	19%	-29%	-29%
MSCI Emerging Europe Index, EUR	16%	-23%	-34%

Portfolio breakdown, % per 31 March 2012

Sector weighting

Sector	% of the
	portfolio
Financials	54.4
Consumer Discretionary	30.9
Consumer Staples	8.5
Information Technology	4.1
Industrials	2.0

Largest holdings in the Fund on 31 March 2012

	Weight,	Perf,	Contr,
Company	%	%	%*	Country	Sector
Nova Liniya	29.7	-2.9	-0.7	Ukraine	Cons. Discretionary
Kantik	29.4	1.3	0.3	Ukraine	Financials
Henryland	22.9	-0.2	-0.0	Ukraine	Financials
Chumak	8.2	-2.4	-0.2	Ukraine	Cons.Staples
Elko	4.0	-2.9	-0.1	Baltics	Information Technology
Trev-2 Group	1.9	0.0	0.0	Estonia	Industrials
Rtc Irpin	0.9	-1.2	-0.0	Ukraine	Financials
Sablink	0.0	-2.1	-0.0	Ukraine	Financials

All figures in EUR

* Contribution to the portfolio performance

10 largest holdings	Unlisted holdings
(% of fund)	(% of fund)	Total number of holdings
97	100	8

Portfolio breakdown, % per 31 March 2012

Sector weighting Sector % of the portfolio % of the portfolio

Asset allocation by country

Sector	% of the
	portfolio
Energy	31.8
Financials Utilities	28.7 8.5
Industrials	7.3
Consumer Discretionary	6.4
Telecom. Services	6.2
Materials	3.4
Consumer Staples	3.0
Health Care	0.6
Information Technology	0.3

Largest holdings in the Fund on 31 March 2012

	Weight,	Perf,	Contr,
Company	%	%	%*	Country	Sector
Lukoil	6.4	11.5	0.4	Russia	Energy
Surgutneftegaz	6.3	35.1	1.6	Russia	Energy
Sberbank	6.0	32.5	1.3	Russia	Financials
Gazprom	5.1	11.8	0.6	Russia	Energy
M.Video	3.0	46.0	1.0	Russia	Cons. Discr.
Mrsk Holding	2.9	51.5	0.4	Russia	Utilities
Fondul Proprietatea	2.2	37.5	0.7	Romania	Financials
Erste Bank	2.1	30.0	0.3	Eastern Europe	Financials
Transneft	2.1	23.4	0.4	Russia	Energy
Bashneft	2.1	25.1	0.5	Russia	Energy
All figures in EUR
* Contribution to the portfolio performance

10 largest holdings	Unlisted holdings
(% of fund)	(% of fund)	Total number of holdings
38	0	148

East Capital Power Utilities Fund

The aim of the fund is to target the many investment opportunities arising from the ongoing power sector reform in Russia. The fund invests in both listed and unlisted companies across sub-sectors of the industry including electricity generation, distribution and services.

At the end of the period East Capital Explorer's share of the fund was 73%.

Fund performance			Since
	Q1 2012	2011	Dec 07
East Capital Power Utilities Fund, EUR	22%	-48%	-1%
RTS Electric Utilities Index	20%	-39%	-51%

Portfolio highlights during the quarter

• Power utilities stocks in general recovered strongly during the quarter, after weak performance in 2011, and the East Capital Power Utilities Fund also performed well. Performance-wise, power distribution stocks performed stronger than the rest of the sector in anticipation of progress in the privatisation theme after the Presidential elections

• Widely-discussed news during the last quarter was the Ministry of Economy's proposal to oblige state companies to pay 25% of consolidated net income as dividends. The proposal however is subject to certain exceptions, signed by the prime minister, and given the large investment programs for all power utilities companies, a 25% payout ratio appears challenging in the near term

• The fund's biggest holding, E.ON Russia (ex-OGK-4), continued to do extremely well, up 43% as it reported strong 2011 results with a positive free cash flow of USD 337m and a cash pile of USD 840m accumulated on its balance sheet, which could potentially be used for dividends. The record date for potential dividends is 14 May 2012, and if approved, E.ON Russia will be one of the first Russian power utilities companies paying visible dividends with an expected 5-6% dividend yield

East Capital Special Opportunities Fund

The aim of the fund is to invest in companies with a solid business model and outlook, which for market or owner specific reasons could be acquired at low valuation levels. The fund has targeted investments in the whole Eastern European region, with both a clear trigger for revaluation and an exit opportunity within four years from the launch of the fund. The strategy implies, when appropriate, a more active role in the company.

The investment focus is listed equity securities, but other financial instruments can also be utilized. Distributions to investors can be made throughout the lifetime of the fund. All proceeds on divestments after three years from inception of the fund will be distributed to the investors.

At the end of the period East Capital Explorer's share of the fund was 82%.

Fund performance	Q1 2012	2011	Since May 09
East Capital Special Opportunities Fund, EUR	19%	-36%	21%

Portfolio highlights during the quarter

• The Romanian restitution fund, Fondul Proprietatea, gained 38%, in part due to increased interest by foreign institutional investors who now hold close to 47% of the company's shares. Fondul Proprietatea still trades at a 52% discount to NAV and has proposed a dividend from last year's profit implying a 6.8% yield

• Sollers' shares, a Russian car producer, gained 73% on the back of speculations that the Government will force state owned companies to buy locally produced cars. Also due to the new strategy and guidance on 2011–2015 business plans provided by the management. Sollers recently executed a large joint venture with Ford aiming to build 300k passenger cars and light commercial vehicles per annum in Russia, and is also in talks with Toyota and Mazda regarding establishing further joint ventures

• Mashstroy, a Russian manufacturer of nuclear fuel, strongly recovered during the quarter, and the stock was up 33% after a steep decline in 2011 following the Fukushima accident and decision by Germany to shut down all of its energy reactors by 2022. However, the company was able to partially substitute those orders and better results are expected to already be seen in the financials for 2012

Portfolio breakdown, % per 31 March 2012
------------------------------------------

Sector weighting Sector % of the portfolio Utilities 93.6 Industrials 0.8 Energy 1.2 Asset allocation by country

Largest holdings in the Fund on 31 March 2012

%	%	%*	Country	Sector
12.6	43.2	4.1	Russia	Utilities
9.6	38.2	2.9	Russia	Utilities
9.3	41.4	3.0	Russia	Utilities
8.1	34.8	2.3	Russia	Utilities
7.1	52.1	2.6	Russia	Utilities
6.4	6.5	0.4	Russia	Utilities
5.4	18.8	0.9	Russia	Utilities
5.2	6.4	0.3	Russia	Utilities
4.9	58.3	1.9	Russia	Utilities
4.8	22.7	1.0	Russia	Utilities


	Weight, * Contribution to the portfolio performance	Perf,	Contr,

10 largest holdings (% of fund)	Unlisted holdings (% of fund)	Total number of holdings
73	1	34

• Another top performer was OGK-5, which is controlled by Enel, with the stock enjoying a 35% run since the beginning of the year. The main catalyst behind the strong performance was news that InterRAO has sold its 26% stake in the company to a consortium of long-term investors

Portfolio breakdown, % per 31 March 2012

Sector weighting		Asset allocation by country
Sector	% of the portfolio	 Russia	52.0
Financials	25.7	 Romania	24.9
Materials	19.4	 Lithuania	15.4
Energy	16.3	 Ukraine	5.6
Telecom. Services	15.4	 Serbia	1.6
Consumer Discretionary	10.5	 Croatia	0.5
Health Care	6.9
Consumer Staples	4.7
Industrials	0.7
Information Technology	0.4

Largest holdings in the Fund on 31 March 2012

	Weight,	Perf,	Contr,
Company	%	%	%*	Country	Sector
Fondul Proprietatea	24.9	37.5	7.4	Romania	Financials
TEO LT	15.4	6.5	1.0	Lithuania	Telecom. Services
Integra	12.9	14.6	1.8	Russia	Energy
Sollers	9.3	72.5	8.8	Russia	Cons. Discr.
Korshunovsky	8.5	16.3	1.3	Russia	Materials
Sibirskiy Cement	7.9	17.7	1.3	Russia	Materials
Verofarm	6.9	8.5	0.6	Russia	Health Care
Mashstroy	3.4	33.4	0.9	Russia	Energy
Sintal	3.3	8.0	0.3	Ukraine	Cons. Staples
Stirol	1.7	-25.9	-0.9	Ukraine	Materials

All figures in EUR * Contribution to the portfolio performance

10 largest holdings (% of fund)	Unlisted holdings (% of fund)	Total number of holdings
94	0	17

East Capital Special Opportunities Fund II

The target is to achieve a 30% Internal Rate of Return from a concentrated portfolio of our top picks selected on return potential. Proceeds will be distributed as investments are realized but no later than within four years from inception.

At the end of the period East Capital Explorer's share of the fund was 56%.

Fund performance			Since
	Q1 2012	2011	Oct 10
East Capital Special Opportunities Fund II	5%	-33%	-26%

Portfolio highlights during the quarter

• Slovenian holdings have finally started to perform, including Zavarovalnica Triglav, the largest insurer in Slovenia with operations throughout the Balkans, which gained 39%. Zavarovalnica Triglav has a strong capital and liquidity position; hence we will propose that the company increases its dividend payment at the upcoming AGM

• Bambi Banat, a Serbian cookie producer, remained largely unchanged with a nearly 2% decline. Despite slightly lower than expected sales growth (2%), which reflects the slow recovery of the Serbian economy, the company managed to improve profitability with net profit soaring 62% which should enable the company to pay a good dividend in 2012

• Verofarm, top-5 Russian pharmaceutical producer, was up 9%. Recently the stock has started to catch up with its closest peer, Pharmstandard, however it currently trades a an implied 47% discount to Pharmstandard based on estimated 2012 at enterprise value to EBITDA levels

• Energy System of Far East, an electricity holding company with generating assets located in the Russian Far East, was up 23%, in line with electricity sector performance over the same period

Portfolio breakdown, % per 31 March 2012

Sector weighting

		% of the portfolio
Sector	% of the
	portfolio
Financials	32.6
Energy	16.1
Consumer Staples	15.7
Materials	13.3
Utilities	10.7
Health Care	9.7
Industrials	1.9

Asset allocation by country

Largest holdings in the Fund on 31 March 2012

	Weight,	Perf,	Contr,
Company	%	%	%*	Country	Sector
Integra	16.1	14.6	1.9	Russia	Energy
Zavarovalnica Triglav	13.6	38.9	3.5	Slovenia	Financials
Bambi	10.2	-1.6	-0.2		Serbia Cons. Staples
Verofarm	9.7	8.5	0.7	Russia	Health Care
Jastrzebksa Spolka Weglova	6.8	7.5	0.4	Poland	Materials
Energy System of Far East	6.5	23.3	1.1	Russia	Utilities
Nfd 1 Delniski Investicijski Sklad Dd	5.8	3.0	0.2	Slovenia	Financials
Aik Bank	5.5	4.4	0.2	Serbia	Financials
TGK-4	4.2	11.4	0.4	Russia	Utilities
Nova Kreditna Banka Maribor	4.2	10.5	0.4	Slovenia	Financials

All figures in EUR

* Contribution to the portfolio performance
10 largest holdings	Unlisted holdings
(% of fund)	(% of fund)	Total number of holdings
97	10	16

• The largest negative contribution came from Rusforest, which announced a secondary public offering with a very high level of dilution effect to raise much needed capital at a time of tightened debt funding. The news sent the stock down by 46%, however we participated in the capital increase at the lower level

Direct Investments

Melon Fashion Group

According to preliminary results, Melon Fashion Group's (MFG) revenue during first quarter 2012 reached RUB 1,854m (EUR 46.8m) which is a 42% increase compared to same period in 2011 (43% in EUR terms). Core concepts of the company (Zarina, Befree and Love Republic) combined contributed 79% of the revenue generated during the quarter. The Ukrainian operation accounted for 6% of the total group revenue, which is the same as a year ago.

The strong revenue growth is to a great extent attributable to increased sales density as core concepts all posted very impressive comparable store sales growth. Zarina comparable store sales increased by 45%, Befree by 31% and Love Republic by 33% compared to first quarter of last year. Comparable store sales in master-franchised concepts (Springfield and Woman'secret) were less impressive, but were also in the double-digit range. We believe that increased sales density is a result of a better timed collection offering and considerably improved logistics, an operational issue which has been in management's focus throughout the second half of last year.

Despite ongoing efforts to close-down poorly performing stores the company managed to increase the number of core brand stores by 6 during quarter, a 2% growth compared to beginning of the year. The number of master-franchised concepts stores decreased by 4 over the same period of time. In the end of 2011 the Board of directors of MFG made a decision to terminate operations of the Co&Beauty concept due to lower than expected profitability of this part of the business.

The outcome of the launched mandatory bid, which was a consequence of the transaction in 2011, is expected to be known in the end of May.

Learn more about Melon Fashion Group on: www.melonfashion.ru

TEO LT

The TEO share performed well during the quarter, with the share price up 6.7% as the company reported positive results and proposed a better than expected dividend. TEO announced very good results for the fourth quarter of 2011 with sales growth breaking through into the positive territory of 1.5% year-on-year. Sales growth has also continued during the first quarter 2012, up 2.5% year-on-year. The main drivers of this positive trend shift have been Internet services revenue returning to growth levels as well as continued strong growth in the TV and IT services segments. Although EBITDA for the first quarter 2012 came in weaker than expected due to a 14% increase in labor costs, it was not too surprising as the company had frozen wage levels increases for a long time. Overall net profit was exactly in line with expectations and a small 1.6% year-on-year decline in earnings was a result of higher taxes.

The TEO board proposed a better than expected dividend for the fiscal year 2011, paying out 95% of the net earnings resulting in a gross dividend yield of 9%. The dividend was approved by the company's shareholders at the AGM in April.

Again the strong results left the investment case of the company unchanged. TEO is still one of the cheapest telecoms in the region trading at 14% discount to the median enterprise value to EBITDA level and offering a higher dividend yield. Going forward we expect the TEO share price to remain supported by the continued strong results with growth momentum in the TV and IT segments, with anticipated robust margins and high dividend yield.

Learn more about TEO LT on: www.teo.lt

Komercijalna Banka Skopje

Komercijalna Banka Skopje (KBS) reported its first quarter results at the end of April. The results continued to show strong top line growth, however, heavy provisions continue to impact the bottom line, leaving KBS with a net loss for the quarter. Net interest income for the quarter was up 11% compared to first quarter of 2011, and fee and commission income rose as well by 6% year-on-year. Operating expenses for the first quarter were lower than the same period 2011, showing that good cost controls are still in place. However, provisions were up by over 100% due to simultaneous deterioration in a number of corporate loans caused by weaker market conditions in Europe and Macedonia. The additional provisions led to a net loss and the balance sheet growth was very modest, in line with guidance previously given by management. KBS' management indicated that the deterioration might not mean eventual impairment loss, and the clients' performance may improve, in which case provisions would be released in future periods. Liquidity remains good, as does capital adequacy.

After starting the year at MKD 2,641, KBS' share price surged to MKD 3,214 per share in the run-up to the Annual General Meeting, presumably on the back of the dividend announcement, before dropping again to MKD 2,980 by the end of the first quarter. At the AGM on 28 March 2012, the bank's shareholders approved a dividend of 200 MKD per ordinary share, or 20% of nominal value (par value).

Learn more about Komercijalna Banka Skopje on: www.kb.com.mk

Trev-2 Group

Trev-2 Group experienced working capital constraints during the first quarter of 2012. However, the business remained stable during the period and the new management team has taken over without any disruptions with co-operation partners or banks. After the end of the quarter, East Capital Explorer together with other shareholders provided the company with bridge loans to relieve working capital constraints and enable the company to prolong existing guarantees and obtain additional guarantees. These are both prerequisites for the company seeking to achieve its annual revenue target.

Learn more about Trev-2 Group on: www.trev2.ee

East European Debt Finance

The board of the East European Debt Finance (EEDF) met in early February and reviewed the preliminary results for 2011. The board also reviewed the performance and adjusted business plans for all the five portfolios. The active portfolio's IRR are GE Money 40%, CEB-1 36%, Tinkoff-1 20%, CEB-2 15% and Tinkoff-2 15%. The EEDF board also decided to try to sell Tinkoff-2, as it is clearly underperforming with no sign of improvement. The large Rosbank portfolio purchased jointly with EBRD was performing according to the business plan until the end of February, however the performance in March was below plan. Corrective measures have been agreed with the servicing company. Given the significant volatility with pricing and collection performance, the EEDF board also decided not to prolong its credit facility agreement and to be very conservative when bidding for new portfolios. In general, the EEDF board does not see any good prospects and does not intend to acquire new portfolios during the next 6-9 months.

Populi

Populi is continuing to re-structure its operations to cut losses. During the first quarter 2012, the company shut down 3 of its loss-making supermarkets. For the quarter, total revenue was 7% lower than in 2011, and losses were higher. The company has posted continuous net losses every month the last year, and is suffering from very poor liquidity. Discussions are on-going between the lender, the current shareholders and potential new investors on possibilities to rescue the company, and we expect that an agreement about a new structure of the company will be agreed during Q2. The outlook is highly uncertain, and East Capital Explorer maintains the value of Populi in its book at a very distressed valuation of totally EUR 0.1M.

Learn more about Populi on: www.populi.ge

Short-term investments

East Capital Explorer has investments in a portfolio of USD and EUR denominated liquid bonds as a short-term cash management tool to create more attractive returns on cash while remaining liquid for future investments. On 31 March 2012, the fair value of the bond portfolio amounted to EUR 12.2m (26.8m).

The net result from bond portfolio for the reporting period 2012 was EUR 0.0m. This included EUR 0.2m in interest income, EUR 0.6m in profit from exchange rates and fair value change in the bond portfolio of EUR -0.8m and EUR 0.0m in management fees.

Among short-term investments, East Capital Explorer also holds a loan, maturing in December 2012 at the latest, to Melon Fashion Group amounting to EUR 5.0m. On 31 March its fair value amounted to EUR 5.1m including accrued interest.

Cash and cash equivalents

The EUR 20.0m (EUR 2.9m) that had not yet been invested or drawndown, were placed in cash and cash equivalents. Interest income from cash and cash equivalents during the first quarter of 2012 amounted to EUR 0.1m (EUR 0.0m).

Results

The Group consists of the Parent Company East Capital Explorer AB, the subsidiary East Capital Explorer Investments AB and Humarito Limited as well as the consolidated funds listed below.

Consolidated funds	Share of Equity
East Capital Bering New Europe Fund	88%
East Capital Special Opportunities Fund	82%
East Capital Power Utilities Fund	73%
East Capital Bering Balkan Fund	65%
East Capital Bering Central Asia Fund	51%

These funds are regarded as subsidiaries and consolidated with the East Capital Explorer Group. The investments in the consolidated funds are reported as investments in the portfolio report on page 3 but are consolidated in the financial statements.

During the first quarter of 2012 investors redeemed shares in the East Capital Bering Central Asia Fund. As a result East Capital Explorer, from an accounting perspective, has a controlling influence over the fund and therefore needs to treat it as a subsidiary. Consequently, the fund was reclassified from shares and participations in investing activities to a subsidiary.

Group

Total comprehensive income for the reporting period 1 January – 31 March 2012 amounted to EUR 37.1m (EUR -9.0m), which included exchange rate differences on translation of foreign operations of EUR -4.6m (EUR -10.2m).

Net profit for the period amounted to EUR 41.7m (EUR 1.2m). Of this a net profit of EUR 30.9m (loss of EUR 1.8m) was attributable to the shareholders of the Parent Company corresponding to earnings per share of EUR 0.92 (EUR -0.05).

For the reporting period, the main items of the net profit in the investment portfolio include value changes of EUR 43.8m (EUR 7.2m) and EUR 0.3m (0.0m) in dividends.

Financial income amounted to EUR 0.1m (EUR 0.3m) which mainly relates to interest income.

Financial expenses amounted to EUR -0.3m (EUR -1.4m) which mainly relates to exchange rate losses on cash held in currencies other than EUR. The bond portfolio net result of EUR 0.0m (EUR 0.3) included EUR 0.2m (EUR 0.4m) in interest income, exchange rate gains of EUR 0.6m (EUR 1.4m), fair value change in the bond portfolio of EUR -0.8m (EUR -1.4m) and EUR 0.0m (EUR -0.1) in management fees.

Other items included EUR -2.1m (EUR -4.2m) in operating expenses (described further below) and EUR -0.1m (EUR -0.7m) in income taxes.

Of the total operating expenses of EUR -2.1m (EUR -4.2m) during the first quarter, EUR -0.4m (EUR -0.5m) relates to ordinary operating expenses within the Parent Company. The remaining EUR -1.7m (EUR -3.7m) relates to operating expenses, mainly fees in consolidated funds and subsidiaries.

To calculate the fees related only to the shareholders in East Capital Explorer AB, the non-controlling interest in the consolidated fund should be excluded and fees generated in non-consolidated funds should be added back. When calculated according to the procedure above, the total fees accrued to the Investment Manager generated by the fund investments and direct investments held by East Capital Explorer amounted to EUR 1.4m (EUR 3.4m) including VAT. It all

relates to management fees as no performance related fees were generated during the period. For more details about fees, please see the latest Annual Report available at our website.

Parent Company

The Parent Company's net profit for the period amounted to EUR 28.0m (loss EUR -0.5m) of which EUR 27.9m referred to a reversal of write down of shares in Group companies. Such shares are held at the lower of fair value and acquisition value. Operating expenses amounted to EUR -0.4m (EUR -0.5m).

Tax

East Capital Explorer's consolidated tax of EUR -0.1m (EUR -0.7m) for the reporting period comprises the net effect of actual income tax within the Parent Company of EUR 0.0m (EUR 0.0m), actual tax related to subsidiaries of EUR 0.0m (EUR -0.4m) and deferred tax related to subsidiaries of EUR -0.1m (EUR -0.3m).

Dividend

The Board of Directors has, as published earlier, adopted a dividend policy for the Company, whereby East Capital Explorer aims to pay dividends to its shareholders consistent with the long-term prospect of the Company. The size of the dividend is related to the size of the Company's received dividends and realized return on short-term investments during the preceding year and other relevant factors.

On 25 April 2012 the Annual General Meeting decided to pay out SEK 0.80 (SEK 0.80) per share to shareholders for the fiscal year 2011. The dividend was paid out on 4 May 2012 corresponding to an aggregate of EUR 3.1m (EUR 3.1m).

Business Environment and Market

The global economy has continued its slow and irregular recovery, yet there remain uncertainties relating to imbalances in the Eurozone periphery and increasing concerns in the US as well as China. The global uncertainties can have an adverse effect on the markets in our region due to general risk aversion, and may lead to continued volatility in the financial markets. The assets held by the Group, both listed and unlisted, can thereby be associated with increased risks which also may impact the possibilities for divestments as well as opportunities for new investments.

For the coming months we anticipate economic growth at levels below long-term potential, yet the average growth in our region is expected to be higher than in the developed markets. While the current markets can experience an increased volatility from time to time, the market changes can also provide significant opportunities for positive profitability growth and development in sound portfolio companies.

Financial position

Cash flow from operating activities during the first quarter was EUR -3.9m (EUR -12.3m).

The Group's cash, cash equivalents and other short-term investments at the end of the period amounted to EUR 52.5m (EUR 90.1m). The Group's cash, cash equivalents and other short-term investments differ from the portfolio on page 3 since cash and cash equivalents in the consolidated funds attributable to non-controlling interest are included in the Group, and since cash held in consolidated funds attributable to the shareholder of the Parent company are reported as part of fund investments in the portfolio overview. Excluding the consolidated funds, cash and cash equivalents amounted to EUR 20.0m (EUR 2.9m) and interest income from these amounted to EUR 0.1m (EUR 0.0m) during the reporting period.

The reclassification from share and participation to subsidiary of the holdings in East Capital Bering Central Asia Fund has affected the cash flow analysis in the investment activities by EUR 2.2m, referring to cash included in the closing balance as of 31 December 2011.

The major cash inflows in the investing activities refer to sales of shares held in the bond portfolio.

East Capital Explorer had no financial debt on 31 Mars 2012.

Commitments and draw-downs

East Capital Explorer has committed to invest EUR 10m into the new East Capital Baltic Property Fund II in the first closing of the fund.

As earlier reported, Humarito Limited, a subsidiary of East Capital Explorer AB, has made a mandatory offer to buy the remaining shares in MFG from its non-affiliates. Based on the shareholder structure of MFG and intentions stated by other shareholders of the company, the proportion of shares tendered in the mandatory offer is expected to be limited. In accordance with Russian law East Capital Explorer, through its subsidiary Humarito Limited, obtained a bank guarantee in the amount of EUR 11.9m in connection with the offer. An equivalent amount of cash is held as collateral for the guarantee and thereby classified as pledged assets.

Other information

Risks and uncertainty factors

The dominant risk in East Capital Explorer's and the Group's operations is commercial risk in the form of exposure to certain sectors, geographic regions or individual holdings and financial risk in the form of market risk, equity price risk, foreign exchange risk and interest rate risk. A more detailed description of East Capital Explorer's and the Group's material risks and uncertainties is provided in the Company's Annual Report. An assessment for the coming months is provided in the Results section above.

Our consolidated funds, fund investments and direct investments are also exposed to commercial risks, financial risks, and market risks. In addition, through the business activities of their holdings, i.e. their offerings of products and services, within the respective sector, the funds and direct investments are also exposed to legal/regulatory risks and political risks, for example political decisions on healthcare budgets and industry regulations.

Related party transactions

No changes or transactions have occurred during the first quarter 2012 other than fee payments according to agreements. East Capital Explorer AB has a related party relationship with its subsidiaries, with other companies in East Capital, as well as with management and employees. The single largest counterparty is the East Capital group.

The Company and East Capital Explorer Investments AB have a licensing agreement with East Capital Explorer Licensing AB, pursuant to which East Capital Explorer Licensing AB has granted a non-exclusive, royalty-free license to use the trade name and trademark "East Capital Explorer."

East Capital PCV Management AB (the "Investment Manager"), a subsidiary of East Capital Holding AB, that implements investments according to the investment policy and provides investment management services pursuant to the Investment Management Agreement. The Company has an Investment Management Agreement with the

Investment Manager and East Capital Explorer Investments AB. During the first quarter 2012 the Group paid fees to a total of tEUR 1,367.

The Company has a service agreement with East Capital International AB, a service company in East Capital, pursuant to which the Company buys certain administrative and other services and sublets premises. During the first quarter 2012, the Group purchased services for EUR 0.1m, all of it through the Parent Company.

The CEO is a Board member of East Capital Explorer Investments AB. The Company's management, Board members and their close relatives, and related companies control 13% of voting rights in the Company."

Organizational and investment structure

East Capital Explorer is a public limited liability company that indirectly and directly invests in Russia and other countries within the Commonwealth of Independent States (CIS), the Balkans, the Baltic States, Central Asia and Central Eastern Europe. Our indirect investments are made through a selection of East Capital's funds.

The investment activities of the Company are governed by an investment policy within an Investment Management Agreement between the Company and East Capital PCV Management AB (the Investment Manager), a company within the East Capital Group.

In addition to the related party transactions referenced above, East Capital Explorer has made direct investments into companies where East Capital Group also invests through one of its controlled companies or products, which during the period included investments in TEO LT.

For further information about the organization and investment structure of the Company, please see the corporate governance report for 2011 that has been included in the Annual Report and on our web site www.eastcapitalexplorer.com in the section, 'About East Capital Explorer/Corporate Governance'.

Share buy-back mandate

On 12 April 2011, the Annual General Meeting 2011 issued a new repurchase authorization for the Board to decide on acquiring the Company's own shares until the Annual General Meeting 2012.

On 15 September 2011, East Capital Explorer announced that the Company's Board had decided to utilize the repurchase authorization to create more value for the shareholders. The utilization of the authorization was prolonged on 12 October and allowed the Company to repurchase own shares from 15 September 2011 up to and including 30 March 2012. During 1 January to 30 March 2012 were 60,415 shares repurchased. Average price per share paid was SEK 54.21. From 15 September 2011 until 30 March 2012, East Capital Explorer repurchased 1,141,969 own shares, corresponding to 3.3% of the shares in the Company. Average price per share paid was SEK 51.69.

The total number of outstanding shares in East Capital Explorer, including the ones held by the Company, amount to 34,851,675. Excluding the shares held by the Company on 31 March, the number of shares outstanding was 33,709,706. Adjusted for buy-backs the average number of shares outstanding for the three month period January to March was 33,721,439.

Events occuring after the end of the quarter

On 25 April 2012, the Annual General Meeting 2012 issued a new repurchase authorization for the Board to decide on acquiring the Company's own shares until the Annual General Meeting 2013. The new authorization has not been utilized. The AGM also approved the Board's proposal to reduce the share capital by way of redemption of repurchased shares and to increase the share capital by way of a bonus issue.

A short-term loan was given to Trev-2 Group in April amounting to EUR 2.2m, which is included in Short-term investments.

As previously announced, a mandatory offer to buy out the remaining shares from non-affiliates in Melon Fashion Group is ongoing. The size of the additional investment will depend on the number of non-affiliated shareholders who elect to accept the offer. The acceptance period for the offer ended yesterday, on 7 May. However, the final outcome will only be known in late May after the sellers have transferred their shares. As mentioned in the year-end report the mandatory offer is taking place at the same price level as the transaction with Swedfund that triggered the bid, whereas the acquired shares will be held at fair value.

As announced on 8 May, East Capital Explorer decided to divest its holding in TEO LT. The divestment price is LTL 2.20 (EUR 0.64), and the transaction will be completed after the 9 May, i.e. the record date for the dividend. Therefore LTL 0.20 (EUR 0.06) per share will also be received in dividend.

NAV on 30 April 2012

NAV per share on 30 April 2012 amounted to EUR 9.27 (corresponding to SEK 83). The share price on 30 April 2012 was SEK 52.25 (corresponding to EUR 5.87). Cash, cash equivalents and other short-term investments on 30 April 2012 amounted to EUR 37m. Of those, EUR 24m (SEK 221m) were available for future investments.

Accounting principles

The consolidated interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions in The Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with The Swedish Annual Accounts Act Chapter 9, interim report. The accounting principles that have been applied for the Group and Parent Company are in agreement with the accounting principles and the methods of computation used in last year's annual report.

New or revised IFRS principles effective as of 1 January 2012 have not had any material effect on the financial position or results of the Group or Parent Company.

Stockholm, 8 May 2012

Mia Jurke Chief Executive Officer

Contact information

Mia Jurke, CEO, +46 8 505 885 32 Mathias Pedersen, CFO, +46 8 505 977 48 Charlotte Åsberg, IR Manager, +46 8 505 885 94

Financial calendar

Monthly net asset value report on the fifth working day after the end of each month
Interim Report, 1 January 30 June 2012 on 7 August 2012
Interim Report, 1 January 30 September 2012 on 9 November 2012

Subscribe to monthly NAV updates, financial reports and press releases directly to your e-mail on: www.eastcapitalexplorer.com

The information in this interim report is that which East Capital Explorer AB is required to disclose under Sweden's Securities Market Act. It was released for publication at 07:00 a.m. CET on 8 May 2012.

To the Board of East Capital Explorer AB (publ) Corporate identity number 556693-7404

Introduction

We have reviewed the interim report for East Capital Explorer AB (publ) as of 31 March 2012, and the three-month reporting period ending on that date. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and The Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Focus and Scope of the Review

We conducted our review in accordance with the Standard on Review Engagements (SÖG) 2410, "Review of Interim Financial Information Performed by the Independent Auditors of the Entity". A review consists of making inquiries, primarily to persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices in Sweden. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed on the basis of a review does not give the same level of assurance as a conclusion expressed on the basis of an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, 8 May 2012 KPMG AB

Carl Lindgren Authorized Public Accountant

This review report is a translation of the original review report in Swedish.

Statement of Comprehensive Income

EUR thousands	2012	2011
	Jan–Mar	Jan–Mar
Changes in value	43,810	7,156
Received dividends	326	33
Total operating income	44,137	7,189
Staff expenses	-180	-171
Other operating expenses	-1,944	-4,029
Operating profit/loss	42,013	2,989
Financial income	100	319
Financial expense	-335	-1,398
Profit/loss before tax	41,777	1,910
Income tax	-61	-697
NET PROFIT/LOSS FOR THE PERIOD	41,716	1,213
Other comprehensive income:
Exchange differences on translating foreign operations	-4,622	-10,242
TOTAL COMPREHENSIVE INCOME FOR THE perio D	37,094	-9,029
Net profit/loss for the period distribution:
Shareholders of the Parent Company	30,948	-1,843
Non-controlling interest	10,769	3,056
	41,716	1,213
Total comprehensive income distribution:
Shareholders of the Parent Company	27,922	-9,239
Non-controlling interest	9,172	210
	37,094	-9,029
Earnings per share, EUR - shareholders of the Parent Company	0.92	-0.05

No accumulated dilution effects during the period

Statement of Financial Position

EUR thousands	2012	2011	2011
	31 Mar	31 Dec	31 Mar
Assets
Shares and participations in investing activities	343,326	293,585	432,798
Deferred tax assets	-	70	-
Total non-current assets	343,326	293,656	432,798
Other short-term receivables	2,844	100	3,142
Tax receivables	309	103	-
Accrued income and prepaid expenses	1,031	125	273
Short-term Investments	17,279	22,793	26,793
Cash and cash equivalents	35,234	32,147	63,352
Total current assets	56,697	55,266	93,561
Total assets	400,023	348,923	526,359
Equity and liabilities
Equity
Share capital	3,628	3,628	3 628
Other contributed capital	369,552	369,923	379 149
Translation reserve	1,157	4,183	-4,063
Retained earnings	-84,182	43,743	43,742
Profit/loss for the period	30,948	-127,925	-1,843
Equity attributable to shareholders of the Parent Company	321,103	293,551	420,613
Non-controlling interest	67,906	45,627	92,189
Total Equity	389,009	339,178	512,802
Deferred tax liabilities	-	-	1,483
Total long-term liabilities	-	-	1,483
Current liabilities
Deferred tax liabilities	9	-	61
Other liabilities	4,478	3,609	1,781
Accrued expenses and deferred income	6,527	6,136	10,232
Total current liabilities	11,014	9,745	12,074
Total equity and liabilities	400,023	348,923	526,359

PLEDGED ASSETS AND CONTINGENT LIABILITIES

Pledged assets - - - Contingent liabilities - - -

Statement of Changes in Equity

EUR thousands 2012	Share capital	Other contri buted capital	Translation Reserves	Retained earnings incl. profit /loss for the period	Total equity share holders in Parent Company	Non-control ling interest	Total equity
Opening equity 1 Jan 2012	3,628	369,923	4,183	-84,182	293,551	45,627	339,178
Net profit for the period	-	-	-	30,948	30,948	10,769	41,716
Other comprehensive income	-	-	-3,026	-	-3,026	-1,597	-4,622
Total comprehensive income	-	-	-3,026	30,948	27,922	9,172	37,094
Reclassification from subsidiary to investment		-	-	-	-	16,443	16,443
Dividend and redemption to/from non-controlling interest	-	-	-	-	-	-3,336	-3,336
Share buy-back	-	-370	-	-	-370		-370
Per 31 March 2012	3,628	369,552	1,157	-53,234	321,103	67,906	389,009

EUR thousands
2011	Share capital	Other contrib uted capital	Translation Reserves	Retained earnings incl. profit /loss for the period	Total equity share holders in Parent Company	Non-control ling interest	Total equity
Opening equity 1 Jan 2011	3,628	379,149	3,333	43,743	429,853	95,581	525,434
Net profit/loss for the period	-	-	-	-1,843	-1,843	3,056	1,213
Other comprehensive income	-	-	-7,396	-	-7,396	-2,847	-10,242
Total comprehensive income	-	-	-7,396	-1,843	-9,239	210	-9,029
Reclassification from subsidiary to investment	-	-	-	-	-	-1,812	-1,812
Dividend and redemption to/from non-controlling interest	-	-	-	-	-	-1,790	-1,790
Per 31 March 2011	3,628	379,149	-4,063	41,899	420,613	92,189	512,802

Statement of Cash Flow

EUR thousands	1 Jan – 31 Mar 2012	1 Jan – 31 Mar 2011

Operating activities
Operating profit/loss	42,013	2,989
Changes in value	-43,810	-7,156
Interest received	47	302
Interest paid	0	-181
Other financial income	93	0
Tax paid Cash flow from current operations before changes in working capital	-187 -1,845	-581 -4,628

Cash flow from changes in working capital
Increase (-)/decrease (+) in other current receivables	-2,772	-69
Increase (+)/decrease (-) in other current payables	763	-7,564
Cash flow from operating activities	-3,853	-12,261
Investing activities
Investment in shares and participations	-16,141	-38,931
Sale of short-term investments	5,580	-
Sale of shares and participations	20,768	71,198
Cash flow from investing activities	10,207	32,267
Financing activities
Dividend to and redemption from non-controlling interest	-5,025	-1,790
Share buy-back	-370	-
Cash flow from financing activities	-5,395	-1,790
Cash flow for the period	959	18,215
Cash and cash equivalents at beginning of the year1	32,147	62,874
Reclassification from subsidiary to investment2	2,219	-17,246
Exchange rate differences in cash and cash equivalents	-91	-491
Cash and cash equivalents at end of the period	35,234	63,352

1 Cash equivalents comprise deposits and cash.

Holdings in East Capital Bering Central Asia Fund have been reclassified from investment to subsidiary during 2012. Please refer to Financial Position section above for more information. During 2011, the holdings in East Capital Special Opportunities Fund II was reclassified from subsidiary to investment

Segment Reporting

East Capital Explorer classifies the Company's segments based on the nature of its investments. Segment results and assets include items directly attributable to the segment as well as those that can be allocated on a reasonable basis.

EUR thousands 1 Jan – 31 Mar 2012	Fund Investments	Direct Investments	Short-term Investments	Unallocated	Total consolidated
Changes in value	41,366	2,318	126	-	43,810
Received dividends	326	-	-	-	326
Staff expenses	-	-	-	-180	-180
Other operating expenses	-1,466	-269	-	-210	-1,944
Operating profit/loss	40,226	2,049	126	-389	42,013
Financial income	96	-	-	4	100
Financial expense	-302	-	-33	-	-335
Profit/loss before tax	40,019	2,049	93	-387	41,777
Assets	308,561	53,894	37,268	300	400,023

EUR thousands 1 Jan – 31 Mar 2011	Fund Investments	Direct Investments	Short-term Investments	Unallocated	Total consolidated
Changes in value	8,135	-979	-	-	7,156
Dividends	33	-	-	-	33
Staff expenses	-	-	-	-171	-171
Other operating expenses	-3,510	-212	-	-307	-4,029
Operating profit/loss	4,658	-1,191	-	-478	2,989
Financial income	13	-	306	-	319
Financial expense	-1,396	-	-	-2	-1,398
Profit/loss before tax	3,275	-1,191	306	-480	1,910
Assets	383,744	52,429	90,145	40	526,359

Consolidated Key Figures

Key figures	3m	12m	9m	6m	3m	12m	9m	6m
	2012	2011	2011	2011	2011	2010	2010	2010
Net asset value, EURm	321	294	317	382	421	430	398	383
Change in NAV during the quarter, %	9.4%	-7.3%	-17.0%	-9.2%	-2.2%	8.0%	3.8%	-6.5%
Equity ratio, %	97.2%	97.3%	98.3%	98.0%	97.4%	96.1%	97.2%	97.8%
Market capitalisation, SEKm	1,879	1,815	1,846	2,562	2,980	2,954	2,501	2,492
Market capitalisation, EURm	213	209	201	279	333	329	273	261
Outstanding number of shares, m	33.7	33.8	34.7	34.9	34.9	34.9	34.9	34.9
Weighted average number of shares, m	33.7	34.6	34.8	34.9	34.9	35.0	35.0	35.1
Number of employees	4	4	4	4	4	4	4	3

Key figures per share	3m	12m	9m	6m	3m	12m	9m	6m
	2012	2011	2011	2011	2011	2010	2010	2010

Earnings per share, EUR	0.92	-3.69	-3.07	-1.00	-0.05	2.55	1.70	1.08
NAV, SEK	84	77	84	101	108	111	105	105
NAV, EUR	9.52	8.69	9.14	10.97	12.07	12.33	11.42	11.01
Share price, SEK	55.75	53.75	53.00	73.50	85.50	84.75	71.75	71.50
Share price, EUR	6.32	6.03	5.76	8.01	9.55	9.43	7.84	7.50
SEK/EUR	8.83	8.92	9.20	9.18	8.95	8.99	9.15	9.53

Income Statement – Parent Company

EUR thousands	2012 Jan–Mar	2011 Jan-Mar
Staff expenses	-180	-171
Other operating expenses	-210	-307
Operating profit/loss	-389	-478
Financial income1	28,391	0
Financial expense	-	-2
Profit/loss before tax	28,001	-480
Income tax	-30	0
NET PROFIT/LOSS FOR THE period	27,972	-480

1 Financial income in Parent Company includes, among other, a reversal of write down of shares in Group companies of EUR 27.9m

Statement of Comprehensive Income – Parent Company

EUR thousands	2012 Jan-Mar	2011 Jan-Mar
NET PROFIT/LOSS FOR THE PERIOD	27,972	-480
Other comprehensive income	-	-
TOTAL COMPREHENSIVE INCOME FOR THE period	27,972	-480

Balance Sheet – Parent Company

EUR thousands	31 Mar 2012	31 Dec 2011	31 Mar 2011

Participations in group companies	288,044	262,156	380,076
Deferred tax	373	402	-
Total non-current assets	288,417	262,558	380,076
Receivables from group companies	-	-	2,566
Loan from group companies	29,315	29,315	-
Accrued income and prepaid expenses	222	236	40
Cash and cash equivalents	3,617	1,916	160
Total current assets	33,155	31,466	2,766
Total assets	321,572	294,024	382,842
Share capital	3,628	3,628	3,628
Share premium reserve	369,552	369,923	379,149
Profit/loss brought forward	-80,096	146	147
Net profit/loss for the period	27,972	-80,242	-480
Total equity	321,056	293,455	382,444
Tax liabilities	-	-	-
Other liabilities	125	167	64
Accrued expenses and prepaid income	391	402	334
Total current liabilities	516	569	398
Total equity and liabilities	321,572	294,024	382,842

PLEDGED ASSETS AND CONTINGENT LIABILITIES

Pledged assets - - -

Contingent liabilities - - -

This is East Capital Explorer

Our Business Concept and Objective

East Capital Explorer (ECEX) is a Swedish company listed on NASDAQ OMX Stockholm Stock Exchange, created with the specific aim of bringing unique investment opportunities in Eastern Europe to a broader investor base.

Our business concept is to offer our shareholders a liquid investment exposure to a unique portfolio of less liquid or unlisted companies in otherwise hard-to-reach parts of Eastern European markets. The Company primarily invests in East Capital's special fund products, normally only available to larger investors as they require high minimum investments. These funds have a less restrictive investment mandate compared to UCITS-funds which means higher flexibility in the choice of investments and allocations. East Capital Explorer also makes direct investments into private and public companies.

Through our unique connection to East Capital, as Investment Manager for the Company's investments, we benefit from their local presence, extensive network and long experience in the region. It is East Capital's investment expertise that creates the primary value for our shareholders. The objective of this business concept is to achieve long-term capital appreciation. As investments in emerging markets often entail significant risks, they should be made with a long term perspective.

Our Strategy

LJUBLJANA BELGRADE BUCHAREST ZAGREB CZECH REP. SLOVAKIA SLOV. ROMANIA CROATIA Our strategy is to capture the growth by investing in sectors and companies having the most to gain from the long-term development trends of the countries in our investment universe* which include, but are not limited to, EU convergence and catch-up process. Strong domestic demand is a key driver for growth in Eastern Europe and this is one of our key investment themes. In addition to the retail and consumer goods sector, East Capital Explorer targets other fast growing sectors such as Financials, Real Estate and Power Utilities, providing interesting opportunities. The Company is primarily focusing on smalland medium-sized companies with high growth potential.

The investment portfolio is actively managed to optimize the long term value for our shareholders. All investments are considered very carefully from a risk and return perspective and the company is managing risk through a diversified portfolio. Long term capital allows investments over the full performance cycle.

* East Capital Explorer invests in Russia and the CIS countries, the Balkans, the Baltic States, Central Asia and Central Europe

Why the Financial sector?

BLACK SEA

ANKARA

TURKEY

CHISINAU (KISHINEV)

UKRAINE

Istanbul Izmir

MOSCOW

Yaroslavl' St Petersburg

^Tigri^s ^E^u ^p ^hrate^s

Lake Lake Onega

MINSK

Danub^e

BULGARIA

MOLDOVA

BELARUS

SOFIA PODGORICA SKOPJE

MACEDONIA

VILNIUS

KIEV WARSAW

TALLINN

ESTONIA LATVIA LITHUANIA

CASPIAN SEA

BAKU TBILISI YEREVAN

Volga

Arkhangel'sk

Nizhniy Novgorod

Saratov Volgograd Astrakhan'

Rostov-na-Donu Voronezh

GEORGIA

5642 Elbrus

ARMENIA AZERB.

Ryazan' Penza

Tula

Kam^a

Perm' Kazan' Samara Orenburg

Ufa

BALTIC SEA

POLAND

PRAGUE BRATISLAVA BUDAPEST

SARAJEVO TIRANA

BOSNIA& H.

ALBANIA MONTENEGRO

HUNGARY

SERBIA

Banking is a play on overall economic growth
Lower penetration of banking services than developed markets (i.e. deposits/GDP, loans/GDP)
Consolidation may lead to merger and acquisition activity

KARA SEA

Irtysh

KYRGYZSTAN TAJIKISTAN

Siberian

Plain

Lake Zaysan

7439 Pik Pobedy

Lake

Almaty (Alma-Ata)

ASTANA

BISHKEK

^O^b

Novosibirsk Barnaul

⁴⁵⁰⁶ Belukha

Yenisey

Ishi^m

Yekaterinburg

Aral Balkhash

KAZAKHSTAN

TASHKENT DUSHANBE ASHGABAT

Sea

TURKMENISTAN

UZBEKISTAN

r a l M o u n t a i n s

1895

Irtysh

Chelyabinsk Omsk

O^b

Komsomolets Island October Revolution Island

Pioner I.

^o^w ^e ^r ^Tungusk^a

T aymyr P eninsula

Platea ^u ^W est

R U SSIAN FEDER A T ION

Irkutsk

MONGOLIA

Centr al Siberian

^N ^o ^r ^t ^h ^S ⁱ ^b ^e ^r ⁱ ^a ⁿ ^L ^o ^w ^l ^a ⁿ ^d

ARCTIC CIRCLE ARCTIC CIRCLE

Yenisey

Krasnoyarsk Tomsk

N e w

^Z ^e ^m ^l ^y ^a

Why the Retail and Consumer Goods sector?

Strong consumer demand driven by a growing middle class
Strong purchasing power due to low expenses, increasing wages and flat taxes
Increasing access to consumer credits

East Capital Explorer offers access to

• An economically dynamic region: including 30 countries and almost 450 million inhabitants. EU convergence and strong domestic demand are key drivers for growth. Eastern Europe is expected to grow more than three times faster than Western Europe over the next five years, with a third of the debt levels

• Attractive sectors: East Capital Explorer concentrates on those sectors assessed to provide the best long-term growth prospects

• A well-diversified portfolio: East Capital Explorer primarily provides exposure to small and medium-sized companies, which are not easily accessible in Eastern Europe. This is primarily done through East Capital's special fund products. At the end of 2011, our portfolio included exposure to approximately 400 companies

• An experienced Investment Manager: The investment activities of East Capital Explorer are managed by East Capital, which has almost a 15-year track-record, and is one of the largest investors in the region with local presence and an extensive network in these countries

Why the Power Utilities sector?

Great Sandy Desert • Deregulation as a consequence of huge investment needs
AUSTRALIA • Changes in pricing expected
Lake Eyre Lake Gairdner Great Victoria Desert • Positive benefits from strong economic growth and demand remain

Range

Why the Real Estate sector?

Low correlation with equity markets
Inflation protected through CPI indexation in rental contracts
Benefit from economic growth, political stability and improved opportunities for financing

Kungsgatan 30, Box 7214 SE-103 88 Stockholm, Sweden Tel: +46 8 505 97 700 Coroporate identity no: 556693-7404 www.eastcapitalexplorer.com

AI assistant

Eastnine — Interim / Quarterly Report 2012

3037_10-q_2012-05-08_871e726b-c351-4752-ae50-2df989a82c9f.pdf

Interim Report 1 January – 31 March 2012

Interim Report 1 January – 31 March 2012

Events after the end of the period

Portfolio on 31 March 2012

East Capital Explorer in Figures

Net Asset Value

Net asset value, share price and index development

Portfolio per 31 March 2012 (%)

Investments % of NAV Theme 10.9% 13.9% 12.9% 9.6% 8.1% 6.1% 6.0% 5.6% 4.1% 3.4% 2.8% 1.8% 1.7% 1.2% 0.4% 0.0%

Top 10 companies in East Capital Explorer's portfolio on a see-through basis1

Portfolio breakdown

Sector breakdown, % per 31 March 2012 Country breakdown, % per 31 March 2012 Asset class, % per 31 March 2012

CEO Comments on the First Quarter

"The Net Asset Value (NAV) of East Capital Explorer increased with 9.4% during the first quarter."

Portfolio development and activity

"We believe that the timing is right to enter the Baltic real estate market."

AGM 2012

Events after the quarter

Investment Manager Comment

Market comment

"Smaller and more illiquid companies are likely to rebound later in the recovery phase."

"…Russia is still the cheapest and enjoys a handful of specific triggers such as politics, WTO accession, privatisation, and financial market reform which speak in favour of Russia going forward."

Portfolio comment

Fund Investments

"The East Capital Power Utilities Fund together with the East Capital Special Opportunities Fund had the strongest positive impact on the portfolio's net asset value."

Direct Investments

"TEO LT showed both positive results and a higher than expected dividend"

"Melon Fashion Group, East Capital Explorer's largest direct investment, showed a strong growth in revenue according to the preliminary results for the first quarter in 2012."

Outlook

"East Capital Explorer is well-positioned to take advantage of a market recovery in Eastern Europe."

Portfolio Investments

Investment Management team at East Capital

Fund Investments

East Capital Bering Balkan Fund

Portfolio highlights during the quarter

Portfolio breakdown, % per 31 March 2012 Sector weighting Sector % of the portfolio Financials 57.9 Consumer Discretionary 18.8 Consumer Staples 10.6 Telecom. Services 5.5 Asset allocation by country % of the portfolio Romania 32.5 Serbia 22.3 Slovenia 13.6 Turkey 9.5 Bosnia 8.5

Largest holdings in the Fund on 31 March 2012

East Capital Bering Central Asia Fund

Portfolio highlights during the quarter

East Capital Bering New Europe Fund

Portfolio highlights during the quarter

Portfolio breakdown, % per 31 March 2012

Largest holdings in the Fund on 31 March 2012

Portfolio breakdown, % per 31 March 2012

Largest holdings in the Fund on 31 March 2012

East Capital Bering Russia Fund

Portfolio highlights during the quarter

East Capital Bering Ukraine Fund A

Portfolio highlights during the quarter

Portfolio breakdown, % per 31 March 2012

Portfolio breakdown, % per 31 March 2012

Sector weighting

Largest holdings in the Fund on 31 March 2012

East Capital Bering Ukraine Fund R

Portfolio highlights during the quarter

East Capital (Lux) Eastern European Fund

Portfolio breakdown, % per 31 March 2012

Largest holdings in the Fund on 31 March 2012

* Contribution to the portfolio performance

Portfolio breakdown, % per 31 March 2012

Largest holdings in the Fund on 31 March 2012

East Capital Power Utilities Fund

Portfolio highlights during the quarter

East Capital Special Opportunities Fund

Portfolio highlights during the quarter

Largest holdings in the Fund on 31 March 2012

Portfolio breakdown, % per 31 March 2012

Largest holdings in the Fund on 31 March 2012

All figures in EUR * Contribution to the portfolio performance

East Capital Special Opportunities Fund II

Portfolio highlights during the quarter

Portfolio breakdown, % per 31 March 2012

Largest holdings in the Fund on 31 March 2012

Direct Investments

Melon Fashion Group

TEO LT

Komercijalna Banka Skopje

Eastnine Interim / Quarterly Report 2012