Interim Report 1 January – 31 March 2013

Events during the first quarter

Net asset value (NAV) per share on 31 March 2013 amounted to EUR 9.30 (EUR 9.52)1 , corresponding to an increase of 2.2% (9.6%) during the first quarter. Since 31 March 2012, the NAV per share decreased by 2.3% (-23.8%)
During the first quarter, the net result for the Group was EUR 6m (EUR 28m), including EUR 7m (EUR 29m) changes in value on investments. Earnings per share amounted to EUR 0.19 (EUR 0.81) during the quarter
The application period for East Capital Explorer's offer to redeem shares ended on 14 January. 1,600,286 shares were tendered for redemption during the redemption program, corresponding to an acceptance level of approximately 97%. Consequently, a total of SEK 123.2m (corresponding to EUR 14.3m) was paid out on 30 January to the shareholders who participated in the redemption program
In the end of January, the 685,111 shares that were repurchased by the Company during the fall of 2012 through the share buyback program and the 1,600,286 shares that were tendered for redemption during the redemption program were cancelled in accordance with the decision at the EGM
During the quarter, two additional investments of EUR 10m and EUR 15m respectively were made into East Capital Russia Domestic Growth Fund
Due to changed IFRS control requirements, East Capital Explorer is no longer required to consolidate its fund investments in those cases in which the Company was previously regarded as having controlling influence. This implies that starting from 2013, all Fund holdings will instead be reported at fair value in the financial statement
As announced on 13 February, Mia Jurke, CEO of East Capital Explorer, will go on maternity leave for a year starting 13 May. The Board of Directors has appointed Catharina Hagberg as acting CEO during Mia Jurke's absence
Cash, cash equivalents and other short term investments on 31 March 2013 amounted to EUR 7m (EUR 37m)
The closing price of the East Capital Explorer share as of 31 March 2013 was SEK 52.00 (corresponding to EUR 6.21)

Events after the end of the quarter

In April, the AGM of East Capital Explorer decided to allocate this year's result in accordance with the Board of Directors' proposal, meaning that no dividend will be made to the shareholders and that the profits will be carried forward. The AGM also authorized the Board of Directors to decide on repurchase of own shares although the Board of Directors has no intention to repurchase own shares during the announced redemption program which it intends to run through 2015
East Capital Explorer received a distribution of EUR 9.4m from the East Capital Power Utilities Fund during April, which represents the main part of the remaining assets in the Fund
The Company also received a distribution of EUR 3.1m from East Capital Special Opportunities Fund
As announced on 3 May, East Capital Explorer has decided to acquire a majority stake in Starman, the leading cable TV, broadband internet and voice cable services provider in Estonia through a direct investment of approx. EUR 24m. The deal is subject to regulatory approval and is expected to be completed during the second quarter
The NAV per share on 30 April 2013 amounted to EUR 9.11m (EUR 9.30), corresponding to a decrease of 2% during the month
Cash, cash equivalents and other short term investments on 30 April 2013 amounted to EUR 19m (EUR 37m)
The closing price of the East Capital Explorer share as of 30 April 2013 was SEK 46.90 (corresponding to EUR 5.50)

Net asset value and share price development

		31 March 2013	31 March 2012
	EUR	SEK	EUR	SEK
NAV per share	9.30	78	9.52	84
Total NAV	292m	2.6bn	321m	2.8bn
NAV % change per share Q1	2.2	-0.4	9.6	9.1
Closing price per share	6.21	52.00	6.32	55.75
Total MarketCap	195m	1.6bn	213m	1.9bn
Share price % change Q1	8.9	6.1	4.8	3.7

¹Comparable figures for the corresponding period 2012 are stated in parentheses

Portfolio on 31 March 2013

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, on a see-through basis, is towards Russia with a weight of 48% and 78% of the portfolio is invested in the Company's targeted sectors: Retail and Consumer Goods, Financials and Real Estate.

Portfolio on 31 March 2013	Investment level1	Fair value 31 Mar 2013 mEUR2	NAV/share. EUR	% of NAV	Fair Value 31 Dec 2012 mEUR	Value change Jan–Mar 2013, %3
Fund Investments
East Capital Bering Balkan Fund	1	40.1	1.27	13.7	38.9	2.9
East Capital Russia Domestic Growth Fund	1	38.9	1.24	13.3	14.5	-1.5
East Capital Bering Russia Fund	1	28.4	0.90	9.7	27.8	2.0
East Capital Special Opportunities Fund	1	24.0	0.76	8.2	21.5	11.6
East Capital Bering Central Asia Fund	1	22.7	0.72	7.8	18.5	22.5
East Capital Baltic Property Fund II	3	17.9	0.57	6.1	17.4	2.5
East Capital Special Opportunities Fund II	1	17.5	0.56	6.0	19.3	-9.3
East Capital Bering New Europe Fund	1	13.1	0.42	4.5	13.1	-0.2
East Capital Power Utilities Fund4	1	11.5	0.37	3.9	11.4	1.0
East Capital Bering Ukraine Fund R	3	5.5	0.17	1.9	5.2	4.6
East Capital (Lux) Eastern European Fund	1	4.5	0.14	1.5	4.4	1.3
East Capital Bering Ukraine Fund A	1	3.7	0.12	1.28	3.9	-3.8
Total Fund Investments		227.7	7.25	77.9	196.0	3.0
Melon Fashion Group	3	44.2	1.41	15.1	44.2	0.0
Komercijalna Banka Skopje	1	8.8	0.28	3.0	8.7	1.3
Trev-2 Group	3	7.4	0.24	2.5	7.4	0.0
East European Debt Finance	3	0.8	0.03	0.3	1.3	1.9
Total Direct Investments		61.2	1.95	20.9	61.6	0.2
Short-term Investments
Cash and cash equivalents		6.7	0.21	2.3	46.4
Total Short-term Investments		6.7	0.21	2.3	46.4
Total Portfolio		295.5	9.41	101.1	304.0
Other assets and liabilities net		-3.2	-0.10	-1.1	-3.5
Net Asset Value (NAV)		292.4	9.30	100.0	300.5	2.25

1 The Group applies IFRS 7. This requires the Group to classify for disclosure purposes fair value measurements using a fair value hierarchy reflecting the significance of the inputs used in making the measurements. For more information please see pages 24-25

² 1 EUR = 8.37 SEK on 31 March 2013. Source: Bloomberg

3 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

Fund in liquidation

5 NAV per share development

Note that certain numerical information may not sum due to rounding

CEO Comment

2013 started positively as a continuation of the strong wind up of 2012, but lost pace in February and turned negative in March after renewed concerns, with the EU and Cyprus in focus. Russia, which we have expected to perform well during 2013, has, to date, failed to deliver on these expectations. Russia was allegedly one of the countries most impacted by the negative developments in Cyprus due to the reportedly large number of deposits held on the island, and was also impacted due to the year's economic growth estimates being revised slightly downwards. However, the total impact of the Cyprus situation on Russia should be limited. Also, the consensus view is that growth will start to pick up again in Russia in the near future. We have seen that the trend among investors to turn to equity, instead of debt, has continued, but this has not, to date, spread to emerging markets; consequently, this shift has not supported our markets to any meaningful extent yet.

Net Asset Value (NAV) per share ended at EUR 9.30, which was an increase of 2.2% compared with year-end, and was slightly better than our region in general. Our portfolio, consisting primarily of smaller companies, often tends to show a somewhat varying development trend compared with larger companies during volatile periods. Our overall performance is also affected by the unlisted holdings in our portfolio which tend to be more stable in value over time.

The East Capital Explorer share, which developed well at the beginning of 2013 and was up as much as 12% in SEK during January, fell back later in the quarter and ended the period at SEK 52, corresponding to an increase of 6%. This negative development has continued in April and the share is now trading below its value at the beginning of the year.

Portfolio development and activity

The portfolio development was very mixed. The East Capital Bering Central Asia Fund, which gained almost 23% during the quarter, was the best performing holding despite the fact that the general development in that region was not very strong. The East Capital Special Opportunities Fund also developed well with an increase of 12%, supported mainly by the two largest holdings in the Fund, Fondul Proprietatea and Sollers, which, together, represent over 50% of the Fund.

On the down side, we find the East Capital Special Opportunities Fund II, showing a negative performance of 9% during the first three months of the year. The larger part of this decline was attributable to the discovery of misappropriation of assets by the counterpart in the transaction related to the Fund's holding in the Polish mining company, Jastrzebska Spolka Weglowa ( JSW), which is described more closely in the "Investment Manager Comment". We are monitoring this situation very closely and even if this incident has a limited impact at East Capital Explorer level, we intend to ensure that the situation has been, and is, handled properly by our Investment Manager.

Our largest portfolio investment, Melon Fashion Group (MFG), performed slightly weaker than expected during the quarter, primarily due to the delayed spring, which has, in general, impacted the whole industry negatively. We believe that MFG's strategy to further concentrate its focus and efforts on the core brands, which historically have been the strongest performers, is correct and will be positive for the future development of the company.

During the first quarter, we further increased our exposure to Russian domestic growth by investing an additional EUR 25m into the East Capital Russia Domestic Growth Fund, which is in line with our current focus.

Outlook and events after the quarter

During April, the NAV per share decreased with 2%. The performance was mainly impacted by the weak development in the East Capital Russia Domestic Growth Fund and the East Capital Bering Russia Fund, which were in line with the overall development of the Russian market during the month. Also, Komercijalna Banka Skopje, the Macedonian bank, had a difficult month decreasing 7% as a result of the continuing challenging economic environment in the region.

The 2013 AGM was held on 24 April. The AGM approved the Nomination Committee's proposal to re-elect Paul Bergqvist, Lars O Grönstedt, Alexander Ikonnikov, Louise Hedberg and Karine Hirn to the Board of Directors. Lars Emilson declined re-election. Paul Bergqvist was also re-elected as Chairman of the Board. In line with previous communication, no dividend was proposed. This reflects our intention to refrain from paying any dividends as long as the redemption programs are in force, which the Board intend to propose through 2015, provided the discount to NAV exceeds 10% and conditional upon the shareholders' approval. During this period, the Board also does not intend to use its mandate for repurchase of shares.

During April, East Capital Explorer received two distributions, one from the East Capital Power Utilities Fund and one from the East Capital Special Opportunities Fund. The first one is a consequence of the Fund Manager's earlier communicated decision to close the Fund and the distribution comprised the majority of the remaining assets. The East Capital Special Opportunities Fund is in exit mode and, consequently, pays out all divestment proceeds. The Fund was expected to close in May, but has been extended one additional year since the Fund Manager believes that it thereby will be able to better time the sale of the remaining assets.

"The largest news after the end of the quarter was the acquisition of a majority stake in Starman, the leading cable TV operator in Estonia"

The largest news after the end of the quarter was the acquisition of a majority stake in Starman, the leading cable TV operator in Estonia that was announced in the beginning of May. We are investing EUR 24m and it will thereby be the second largest investment in our portfolio on a see through basis, amounting to approximately 8% of NAV as of 30 April. The investment is in line with our focus on Baltic private equity, which we believe is an area showing attractive investment opportunities. Starman is expected to benefit from the strong consumer demand in the Baltics and is a well-managed company which has shown good financial performance for a number of years. The transaction is expected to be finalized during the second quarter 2013 subject to approval from the Estonian competition authorities.

We are pleased to see that our investment into the Baltic property sector is developing well. Gedemino 9, the Vilnius shopping centre that was acquired by the East Capital Baltic Property Fund II in December, recently signed a lease agreement with H&M, adding a strong new anchor tenant, which was one of the focus areas for the development of the property.

Mia Jurke CEO

Portfolio on 31 March 2013 (%)

Melon Fashion Group East Capital Bering Balkan Fund East Capital Russia Domestic Growth Fund East Capital Bering Russia Fund East Capital Special Opportunities Fund East Capital Bering Central Asia Fund East Capital Special Opportunities Fund II East Capital Baltic Property Fund II East Capital Bering New Europe Fund East Capital Power Utilities Fund Komercijalna Banka Skopje Trev-2 Group East Capital Bering Ukraine Fund R East Capital (Lux) Eastern European Fund East Capital Bering Ukraine Fund A East European Debt Finance

Top 10 Holdings in East Capital Explorer's portfolio on a see-through basis (sum of direct and indirect holdings)1

On 31 March 2013
		Value in portfolio,
Company	% of NAV	EURm	Country	Sector	East Capital Explorer's investment vehicle
Melon Fashion Group	15.1	44.2	Russia	Consumer Discretionary	Direct Investment
Fondul Proprietatea	5.3	15.4	Romania	Financials	East Capital Bering Balkan Fund East Capital Special Opportunities Fund East Capital (Lux) Eastern European Fund
Komercijalna Banka Skopje	3.6	10.6	Macedonia	Financials	Direct Investment East Capital Bering Balkan Fund
Tänassilma Logistics	3.2	9.4	Estonia	Real Estate	East Capital Baltic Property Fund II
Sberbank	3.0	8.7	Russia	Financials	East Capital Russia Domestic Growth Fund East Capital (Lux) Eastern European Fund
Gedimino 9	2.9	8.4	Lithuania	Real Estate	East Capital Baltic Property Fund II
Trev-2 Group	2.6	7.5	Estonia	Industrials	Direct Investment East Capital Bering Russia Fund East Capital Bering Ukraine Fund R
Sollers	2.6	7.5	Russia	Consumer Discretionary	East Capital Special Opportunities Fund East Capital Russia Domestic Growth Fund East Capital (Lux) Eastern European Fund
Zavarovalnica Triglav	2.5	7.2	Slovenia	Financials	East Capital Bering Balkan Fund East Capital (Lux) Eastern European Fund East Capital Special Opportunities Fund II
Verofarm	2.2	6.3	Russia	Health Care	East Capital Bering Russia Fund East Capital Special Opportunities Fund East Capital Special Opportunities Fund II
Total Top 10	42.8	125.3

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, % per 31 March 2013

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

○ 60 Listed ○ 29 Unlisted ○ 11 Cash and short term inv.*

Investment Manager Comment

East Capital Explorer vs indices since IPO

Market comment

*TR = Total Return

Investors' appetite for risk returned at the beginning of the year and most equity markets in Eastern Europe got a very good start as investors started to buy equities again after having been favoring more defensive assets such as bonds and gold. After a very strong performance in January, most of our markets in Eastern Europe later fell back on increased international and domestic uncertainty. Overall, the market performance was mixed during the first quarter.

Russia, the largest geographical exposure for East Capital Explorer, ended the quarter basically flat. We expected a recovery in the country as Russia usually is one of the main beneficiaries when the world economy is stimulated and the risk appetite is coming back. Our expectations were met in January, when Russia was the strongest among the larger markets in Eastern Europe, but the performance turned into negative territory in February and March which was explained by weak growth during the first quarter, inflation rising more than expected and increased global uncertainty. In particular, Cyprus' financial problems put pressure on the global markets in March and had particular relevance for Russia.

The smaller markets in Southeastern Europe, the second largest geographical region for East Capital Explorer, continued their strong performance at the start of the year. Balkan markets were among the world's best performing stock markets in January. Bulgaria and Romania managed to hold on to their double-digit returns, while the equity market in Slovenia was hit by political uncertainty and worries for a bailout.

The Baltic economies continued to deliver positive surprises, especially on domestic demand, and were once again among the best performing markets in our region. Kazakhstan and Ukraine ended the quarter in positive territory while the Central European markets underperformed due to a combination of deteriorating macro outlooks and the latest round of problems in the Euro zone.

Portfolio comment

The Net Asset Value (NAV) per share increased by 2.2% during the first quarter which was slightly stronger than the development in the region overall. Strong developments in a number of the Company's key holdings in Central Asia particularly contributed.

Fund Investments

During the quarter, the majority of East Capital Explorer's fund invest-

Net asset value, share price and index development

(% change in EUR)	1 Jan – 31 Mar	1 Jan – 31 Mar
	2013	2012
Net asset value per share	2.2	9.4
East Capital Explorer share	8.9	4.8
SAX Index2	13.9	11.4
RTS Index3	-1.4	15.1
RTS 2 Index4	-4.7	20.5
MSCI EM Europe5	0.2	15.9

SAX Index includes all equities listed on NASDAQ OMX Stockholm

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

4 RTS 2 Index includes 78 companies on the RTS that have limited trading volumes 5 MSCI EM Europe Index includes Russian, Polish, Hungarian, Czech and Turkish equities

ments outperformed their respective markets. The largest positive contribution to portfolio development came from the East Capital Bering Central Asia Fund. Three of the top five positive contributors to East Capital Explorer's overall performance came from holdings in this Fund which gained 23%. The largest positive contribution came from Bank of Georgia, the stock went up 44%, outperforming all its regional peers, on the back of regained trust in the stock. Another Georgian holding, the local wine producer Teliani Valley, rallied 212% as Russia lifted the ban on Georgian wines. Historically, Russia has been the main market for Georgian wines and this long-anticipated event creates significant growth potential for the sector. We remain hopeful that Teliani Valley will be able to capitalize on these new opportunities. The third star in the Fund's portfolio was Kcel, the leading mobile operator in Kazakhstan. The stock has increased steadily since the company's IPO at the end of last year and remains one of our favorite stocks because of its unrivaled profitability, not only in the CIS but across EMEA.

The largest negative contribution to East Capital Explorer's portfolio came from the East Capital Special Opportunities Fund II, which lost 9%. Almost the entire drop derives from Jastrzebska Spolka Weglowa ( JSW), which was written down to zero as misappropriation of assets by the counterparty in this transaction was discovered. The counterparty, which was engaged to buy shares on the Fund's behalf with future delivery, had not carried out its part of the contract. Intensive work has been put into solving the situation and the first priority has been to recover the assets. A recovery agreement is in place and so far 10% of the initial investment has been recovered and we are closely monitoring the situation. The Fund also sold its shares in Rusforest, the Swedish listed forestry company operating in Eastern Siberia and the Arkhangelsk region. At the time of the acquisition, the company had a new management team in place that we believed would be able to turnaround the company's poor development. This has not been the case and our close dialog with Rusforest has not given any concrete results. When we came to the conclusion that the new strategic owners in Rusforest would not be able to turn the company around we decided to sell our shares. The investment has unfortunately been very negative for the Fund and even though we managed to sell our shares at four times the current share price, most of the invested capital has been lost.

Fondul Proprietatea (FP), the largest holding in both the East Capital Bering Balkan Fund and East Capital Special Opportunities Fund, gained 16 % as the technical law suits that have blocked dividend payments were resolved, which increased investors' interest in the stock. In addition, a share buyback of 8% was recently announced by this Romanian company, constituting East Capital Explorer's second largest holding on a see-through basis. The East Capital Special Opportunities Fund's increase of 12% is almost entirely explained by FP and the Fund's second main investment, the Russian automobile producer Sollers has continued its strong performance into 2013 as it announced a dividend yield of 8% and Sollers remains attractively valued at P/E ratio of 4.

The main events during the first quarter was East Capital Explorer's additional investments of EUR 10m and EUR 15m respectively into the East Capital Russia Domestic Growth Fund in line with the Company's strategy to increase its exposure to domestic growth. The Fund currently represents the second largest fund investment in East Capital Explorer's portfolio, with a total of EUR 40m invested since its launch in August 2012. The first quarter-performance was positive, but below our expectations because of a slowdown in domestic growth and increased global uncertainty that put pressure on the Russian market.

"The opening of H&M is one of the most important and awaited events among all the planned changes and it is an important first step in the development of G9"

The investment into the Baltic real estate sector, also one of the focus areas since 2012, developed in line with expectations. The East Capital Baltic Property Fund II, which represents 6% of the Company's portfolio, showed an increase of 2.5% during the quarter. This is a result of a positive cash flow from Tänassilma Logistics, the logistics park outside Tallinn that remains fully occupied. The redevelopment of Gedimino 9 (G9), the shopping centre in Vilnius that was acquired in December 2012, continued. Our real estate team is involved in negotiations with potential new anchor tenants and the well-known and prestigious Swedish multinational retail-clothing company, Hennes & Mauritz (H&M), has now signed a lease agreement to open a store in G9. The opening of H&M is one of the most important and awaited events among all the planned changes and it is an important first step in the development of G9. In March an experienced shopping centre manager was recruited, who will have an important role in realizing the property's strong turnaround potential.

Direct Investments

Cold weather hit fashion retailers across Europe during the first quarter and Melon Fashion Group (MFG), East Capital Explorer's largest investment and by far the largest holding on a see-through basis, also experienced weaker-than-expected sales, but still showed double digit growth levels. Sales from continuing operations reached RUB 1,739m (EUR 43m), an increase of 18% compared to the same period the previous year. Sales growth was also disadvantaged by a number of delayed new shopping centre openings in Russia. MFG's target to open 100 new stores during this year nevertheless remains. We believe that the company's streamlining of its operations and a more comprehensive approach to growth will help MFG to maintain and further improve its profitability.

Our direct investment in Trev-2 Group, the Baltic infrastructure construction and maintenance company, developed strongly in the first quarter. The company's revenue increased with 69% compared to the same period last year and the management team, which has been completely replaced since we took active control, continues to focus on profitability.

Komercijalna Banka Skopje (KBS), the Macedonian Bank, continued to see deterioration in its loan portfolio caused by poor economic conditions. The Macedonian economy remains vulnerable to headwinds from the Eurozone area which continue to create a challenging environment for the banks.

Outlook

The outlook for the global economy is uncertain. The IMF revised down the global growth by 0.2 percentage points which was an important source of the recent volatility, despite the limited adjustments, as the global economic recovery was fragile to start with. However, too many conclusions should not be drawn from the first quarter and we continue to expect markets to return to normal.

The most recent numbers from Russia point to a small acceleration in consumption; both retail sales and industrial production accelerated in March, and suggest that growth bottomed out in the first quarter and will start to pick up. There is also a widespread belief that inflation will ease in the near future. We continue to strongly believe in the domestic story in Russia, and the market still trades at historically low earnings multiples. Current P/E ratio of 4 on average implies that the upside potential in the market is high.

Last week, East Capital Explorer announced its investment in Starman, the Estonian cable TV, broadband internet and voice cable services provider. Starman is a well-managed company and corresponds to our preferences; consumer-driven, non-cyclical, with a strong cash-flow. Starman is well-positioned to take advantage of the growing digital TV and broadband markets, and will benefit from the households' growing disposable income. We believe that it is also very positive that the founders of the company, who have developed the company, have used this opportunity to increase their shareholding. The investment confirms our strong belief in the recovery in the Baltic states and is in line with East Capital Explorer's focus on private equity in this region. As a consequence of the investment, the amount of direct investments in the portfolio will increase to approximately 30% (based on NAV as of 30 April).

"Starman is well-positioned to take advantage of the growing digital TV and broadband markets, and will benefit from the households' growing disposable income"

East Capital Explorer's aim to increase the exposure to real estate and private equity in the Baltics remain. The real estate team has a strong pipeline of new investments for the East Capital Baltic Property Fund II and in terms of private equity, we are looking for further investment opportunities. Recently, we have seen an increased M&A activity in the region as well as successful IPOs, which signals that investors are ready to pay fair prices for assets with good earnings and growth potential. A diminishing valuation gap between sellers and buyers is welcomed as it creates both entry and exit opportunities for us.

Peter Elam Håkansson Chairman, East Capital

Portfolio Investments

On 31 March 2013, East Capital Explorer had fund and direct investments totalling EUR 289m compared to EUR 284m on 31 March 2012. The majority of the portfolio consists of East Capital's special funds products which represent 78% of the portfolio. These funds have in general less restrictive mandates compared with UCITS-funds, which implies higher flexibility in terms of stock selection and allocation. By investing in funds, we achieve a good risk diversification and obtain a cost-effective exposure. We also undertake direct investments into private and public companies.

Investment Management team at East Capital

Peter Elam Håkansson, Founding Partner and Chairman, heads the Public Equity investment team. Kestutis Sasnauskas, Founding Partner, heads the Private Equity investment team and Biljana Pehrsson heads the Real Estate investment team. The Eastern European Public Equity team consists of senior advisors Aivaras Abromavicius, based in Kyiv, Jacob Grapengiesser and Tim Umberger, based in Moscow, as well as regional portfolio managers Eglé Fredriksson and Emre Akcakmak. The investment team is supported by a team of traders, analysts, macroeconomists, and a corporate governance function.

Peter Elam Håkansson Head of Public Equity

Jacob Grapengiesser Senior Advisor

Kestutis Sasnauskas Head of Private Equity

Tim Umberger Senior Advisor

Biljana Pehrsson Head of Real Estate

Eglé Fredriksson Portfolio Manager

Aivaras Abromavicius Senior Advisor

Emre Akcakmak Portfolio Manager

Fund Investments

If you wish to receive more comprehensive quarterly updates from the Investment Manager regarding the East Capital Bering Funds, East Capital Special Opportunities Fund, East Capital Special Opportunities Fund II and East Capital Baltic Property Fund II in our portfolio, please send an email to: [email protected]. Please note that the quarterly reports 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 Baltic Property Fund II

The aim of the Fund is to invest in commercial properties in the Baltic region, primarily in shopping centres and retail properties, as well as logistics and office properties. The goal is to acquire properties in prime locations with stable income and enhancement potential.

The main focus is properties with well-established tenants and sustainable rental terms in and around Tallinn and also Vilnius. Value is added through improvements in tenant mix, refurbishment, extension or redevelopment.

At the end of the period East Capital Explorer's share of the Fund was 90%.

Fund performance			Since
	Q1 2013	12m 2012	May 12
East Capital Baltic Property Fund II	2%	6%	9%

Portfolio highlights during the quarter

• Tänassilma Logistics, the logistics property outside Tallinn, continued to generate strong cash flow and to contribute to the Fund's net asset value on the back of full occupancy

• The redevelopment of the Fund's second investment, Gedimino 9 (G9), which is a shopping centre in the heart of Vilnius, continued as planned. Since the acquisition in December 2012, an experienced shopping centre manager has been recruited and negotiations with potential new anchor tenants and existing tenants are ongoing

• In May, the well-known and prestigious Swedish multinational retailclothing company, Hennes & Mauritz (H&M), signed a lease agreement to open a store in G9 which is an important first step in the development of the shopping centre

• The Fund showed an increase of 2.5 % during the first quarter and the Fund has a strong pipeline of new investments

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 67%.

Fund performance			Since
		Q1 2013 12m 2012	Dec 07
East Capital Bering Balkan Fund, EUR	3%	2%	-55%

Portfolio highlights during the quarter

• The largest positive contributor to the Fund's performance was Fondul Proprietatea (FP), the Romanian restitution fund which gained 16%. A favourable court ruling in the beginning of March opened the door for FP to resume its previously blocked dividend and also announce an extensive share buyback program, equivalent to roughly 8% of the outstanding shares

• B92, the non-listed Serbian media company and also the second largest holding in the Fund, is taking important steps to further increase its audience and market share, as one of their main competitors is struggling

• The two least favorable holdings were the Slovenian banks, Abanka and Nova Kreditna Banka Maribor (NKBM) which lost 76%, respective 42%, when the Cyprus crisis spilled over to Slovenia, the latter having now been pointed out to be the next country in line for a bailout. Abanka and NKBM contributed negatively with 0.5% and 1.1% respectively to the Fund's performance

Portfolio breakdown, % per 31 March 2013

Sector weighting % of the fund

Asset allocation by country % of the fund

Shopping centre G9 in Vilnius

Portfolio breakdown, % per 31 March 2013

Sector weighting % of the fund

Financials	51.1
Consumer Discretionary	18.1
Consumer Staples	10.4
Telecommunication Services	8.3
Industrials	2.8
Energy	0.9
Materials	0.5
Utilities	0.3
Other assets and liabilities	7.6

Asset allocation by country % of the fund

 Romania	27.9
 Serbia	26.1
 Slovenia	13.4
 Bosnia	9.3
 Turkey	5.6
 Macedonia	4.9
 Montenegro	3.7
 Croatia	1.6
 Other assets	7.6
and liabilities

Largest holdings in the Fund on 31 March 2013

	Weight,	Perf,	Contr,
Company	%	%	%*	Country	Sector
Fondul Proprietatea	14.4	15.7	1.9	Romania	Financials
B92	13.0	-0.2	-0.1	Serbia	Cons. Discr.
Zavarovalnica Triglav	6.4	2.8	0.2	Slovenia	Financials
Komercijalna Banka Skopje	4.5	1.1	0.0	Macedonia	Financials
Sif 4 (Muntenia)	3.8	14.8	0.5	Romania	Financials
Pinar Et Ve Un	3.7	7.2	0.2	Turkey	Cons. Staples
Telekom Srpske	3.6	19.6	0.6		Bosnia Telecom.Services
Montenegro Telekom	3.4	7.1			0.2 Montenegro Telecom.Services
Pif Big	3.1	3.7	0.1	Bosnia	Financials
Sava Reinsurance Company	2.8	-0.7	-0.0	Slovenia	Financials
All figures in EUR

* Contribution to the portfolio performance

10 largest holdings (% of fund)	Unlisted holdings (% of fund)	Total number of holdings
59	16	60

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 57%.

Fund performance			Since
	Q1 2013	12m 2012	Jan 08
East Capital Bering Central Asia Fund, EUR	22%	12%	-48%
KASE Index, EUR	2%	-15%	-67%

Portfolio highlights during the quarter

• The largest positive contribution of 10% came from Bank of Georgia. The stock added 44%, outperforming all its regional peers. The market seems to have regained the trust in the Bank, supported by continuing investor education in the UK and the US by management, following last year's premium listing on the London Stock Exchange

• Another star performer from Georgia was the local wine producer, Teliani Valley, surging 212%. The trigger behind the price tripling was the opening of the Russian market for Georgian wine now that the ban on wine imports to Russia from Georgia has been lifted

• The third best performer in terms of contributor was Kcel, the leading Kazakh mobile operator, accounting for over 50% of the Kazakh telecommunication market's revenues. Since its IPO at the end of last year, the stock has steadily increased in value, gaining 27% in the first quarter. Featuring the highest margins, not only among its CIS peers but also in EMEA, and considering the dividend policy in place stipulating a minimum payout ratio of 70% of net income, which translates into a dividend yield of 10-14%, this stock remains very attractive

• Even though ENRC, one of the largest Kazakh mining companies, ended the quarter with a negative performance of 16%, the Fund's previous strategy of accumulating at lows paid off as the fund manager sold half of the position following a 40% stock appreciation in February

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 93%.

Fund performance	Q1 2013	12m 2012	Since May 08
East Capital Bering New Europe Fund, EUR	0%	9%	-17%

Portfolio highlights during the quarter

• The Baltic companies, Olympic Entertainment Group and Tallinna Vesi, reported better than expected results for the fourth quarter of 2012 and are expected to pay dividends yielding 5.2% and 10% respectively. Their stocks continued to outperform with gains at 14% and 12% respectively

• Another Baltic holding, InterRao Lietuva, the electricity trader, is also expected to yield a very attractive dividend of 7-10% this year and to provide dividends of up to 15% in following years. The stock was up 8%

• The weakest performer was the Hungarian holding, PannEnergy, which dropped 38% due to one of the large institutional investors selling off their shareholding. In March, the stock started to recover. Nevertheless the Fund sold part of the holding in view of the lagging execution of the geothermal projects where the company will not be able to reach the expected results

• Another weak performance was posted by the Polish coal mining company, Bogdanka, where the share dropped 14% on the back of falling coal prices. We remain positive towards Bogdanka, as it will be one of few companies in Poland growing its earnings this year

Portfolio breakdown, % per 31 March 2013

Sector weighting

% of the fund

Financials	32.4
Telecom. Services	18.3
Energy	12.2
Materials	8.9
Consumer Staples	8.4
Consumer Discretionary	3.0
Utilities	0.8
Other assets and liabilities	16.1

Asset allocation by country

Kazakhstan 40.2 Georgia 32.8 Turkmenistan 5.3 Ukraine 5.0 Armenia 0.6 Other assets 16.1

Largest holdings in the Fund on 31 March 2013

Weight, % 22.2	Perf, %	Contr, %*	Country	Sector

	44.4	10.0	Georgia	Financials
18.3	26.9	4.3		Kazakhstan Telecom.Serv.
6.7	211.6	5.6		Georgia Cons. Staples
5.3	12.7			Energy
5.3	8.4	0.5	Kazakhstan	Energy
5.0	-4.0	-0.3	Ukraine	Financials
4.4	-16.0	0.3	Kazakhstan	Materials
3.9	12.4	0.5	Kazakhstan	Materials
3.0	6.8	0.2	Kazakhstan	Cons. Discr.
2.6	-9.9	-0.4	Kazakhstan	Financials
				0.6 Turkmenistan

All figures in EUR

* Contribution to the portfolio performance

10 largest holdings (% of fund)	Unlisted holdings (% of fund)	Total number of holdings
77	8	22

Portfolio breakdown, % per 31 March 2013

Sector weighting
% of the fund
Utilities	20.2
Consumer Discretionary	17.2
Financials	9.9
Industrials	7.7
Materials	5.3
Information Technology	5.3
Telecommunication Services	4.6
Energy	3.2
Health Care	3.0
Other assets and liabilities	23.6

Asset allocation by country % of the fund

Largest holdings in the Fund on 31 March 2013

Company	Weight, %	Perf, %	Contr, %*	Country	Sector
Tallinna Vesi	7.0	12.1	0.7	Estonia	Utilities
InterRao Lietuva	5.8	7.6		0.4 Lithuania	Utilities
Olympic Entertainment Group	5.1	13.6	0.6	Estonia	Cons. Discr.
Mennica Polska	4.9	-7.6	-0.4	Poland	Materials
Netia	4.6	-3.6	-0.2	Poland	Telecom. Serv.
Bank Ochrony Srodowiska	4.1	4.2	0.1	Poland	Financials
Asseco Poland	3.6	-9.0	-0.4	Poland	IT
Cinema City International	3.3	5.1	0.1	Poland	Cons. Discr.
Bogdanka	3.2	-14.4	-0.6	Poland	Energy
Egis	3.0	-1.8	-0.1	Hungary	Health Care
All figures in EUR * Contribution to the portfolio performance
10 largest holdings (% of fund)	Unlisted holdings (% of fund)				Total number of holdings

44 1 28

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 46%.

Fund performance			Since
	Q1 2013	12m 2013	Dec 07
East Capital Bering Russia Fund, EUR	2%	-1%	-60%
RTS-2 Index, EUR	-5%	1%	-31%

Portfolio highlights during the quarter

• Protek had the strongest contribution to the Fund after the stock rallied 35%. The company reported operating results for the fourth quarter of 2012 announcing sales growth of 18.6%, which was above market growth. The management will recommend a dividend of RUB 1bn for 2012, which translates to a 4.5% yield and an all-time high dividend payout in excess of 40% of net income

• Highland Gold Mining announced the acquisition of Kekura, a gold deposit in Russia's Far East which adds significant resources to the company and will until 2017 double Highland Gold's production. Still, this acquisition, in combination with a 4.8% drop in the price of the precious metal, resulted in a decline in the share price of 15%, with a negative contribution of 0.4% to the Fund's performance

• The upcoming privatization of Novorossiysk Port has resulted in a rally in the share price during the quarter, up 24%. The two major shareholders in the company, Transneft and Summa Group, are both aiming to consolidate the 20% stake that will be up for sale, and this has created some tension in the company. At the end of the quarter, the CEO of Novorossiysk Port was forced to step down. Still, this is one of the undervalued stocks in the sector, trading at P/E 5.5 for 2013

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 A, comprising mainly of listed holdings, and East Capital Bering Ukraine Fund R, that comprises assets in unlisted companies.

At the end of the period East Capital Explorer's share of the Fund was 37%.

Fund performance			Since
	Q1 2013	12m 2012	Jan 08
East Capital Bering Ukraine Fund A, EUR	-4%	-31%	-74%
PFTS Index, EUR	2%	-40%	-80%

Portfolio highlights during the quarter

• The largest holding in the Fund, the poultry producer Myronivsky Hliboproduct (MHP), delivered by far the most welcomed news of the quarter. The company announced a dividend policy and will pay out a dividend of 6.4% which was higher than expected. MHP also reported strong 2012 results and completed a successful Eurobond issue. The stock gained 15% and was the best contributor to the Fund's performance

• The iron ore producer, Ferrexpo, was the worst contributor as the stock tumbled a whopping 32%. This huge drop was caused by worsening expectations for iron ore as the market was awaiting a lower Chinese steel output in 2H13 and there are fears of an excess surplus of iron ore starting in 2014

• The Tsentr Energo stock suffered a loss of 13% as a fire caused by an explosion damaged the company's largest power plant. The full scale of the damage to the power plant is, however, still unknown

• The second largest holding in the Fund, Bank Aval, surged 15% on the back of renewed interest in this beaten-down local stock

Portfolio breakdown, % per 31 March 2013

Sector weighting

% of the fund

Asset allocation by country % of the fund

Industrials	14.5
Financials	12.4
Health Care	12.3
Consumer Discretionary	12.1
Materials	9.0
Energy	8.2
Utilities	1.4
Consumer Staples	1.0
Telecommunication Services	0.7
Other assets and liabilities	28.4

Largest holdings in the Fund on 31 March 2013
Company	Weight, %	Perf, %	Contr, %*	Country	Sector
FESCO	6.2	-8.8	-0.6	Russia	Industrials
Verofarm	6.2	-5.4	-0.4	Russia	Health Care
Protek	5.6	35.1	1.0	Russia	Health Care
Kantik	4.9	9.9	0.4	Ukraine	Financials
GAZ	4.8	3.0	0.1	Russia	Cons. Discr.
Bashneft	4.0	9.2	0.3	Russia	Energy
Neftekamsky Avto	3.9	1.6	0.0	Russia	Industrials
Nova Liniya	3.8	2.9	0.1	Ukraine	Cons. Discr.
Novorossiysk Port	2.9	23.5	0.6	Russia	Industrials
Bank Tsentrkredit	2.9	1.3	0.0	Kazakhstan	Financials

All figures in EUR

* Contribution to the portfolio performance

10 largest holdings (% of fund)	Unlisted holdings (% of fund)	Total number of holdings
45	13	73

Portfolio breakdown, % per 31 March 2013

Sector weighting % of the fund

Consumer Staples	30.1
Financials	20.7
Materials	15.4
Utilities	11.5
Telecom. Services	5.7
Consumer Discretionary	3.7
Industrials	1.4
Energy	0.7
Health Care	0.3
Other assets and liabilities	10.7

Asset allocation by country % of the fund

Largest holdings in the Fund on 31 March 2013

	Weight,	Perf,	Contr,
Company	%	%		%* Country	Sector
Myronivsky Hliboproduct	22.7	15.3	2.8	Ukraine	Consumer Staples
Bank Aval	12.6	14.9	1.3	Ukraine	Financials
Tsentr Energo	10.9	-12.7		-1.6 Ukraine	Utilities
Ferrexpo	6.0	-32.2		-2.9 Ukraine	Materials
Ukrtelecom	5.7	-15.3		-1.0 Ukraine	Telecom. Services
Koryukivska Fabryka Tekhnichnyh Paperiv	3.9	1.7	0.1	Ukraine	Materials
Ukrsotsbank	3.4	-7.3		-0.3 Ukraine	Financials
Advantest	3.1	1.0	0.0	Ukraine	Financials
Sun Interbrew Ltd	2.5	99.3	1.2	Ukraine	Consumer Staples
Poltava	2.5	5.1	0.1	Ukraine	Materials
All figures in EUR

* Contribution to the portfolio performance
10 largest holdings (% of fund)	Unlisted holdings (% of fund)	Total number of holdings
73	0	27

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 A, comprising listed holdings, and East Capital Bering Ukraine Fund R, that comprises assets in unlisted companies.

At the end of the period East Capital Explorer's share of the Fund was 11%.

Fund performance			Since
	Q1 2013	12m 2012	Jan 08
East Capital Bering Ukraine Fund R, EUR	5%	-5%	-70%
PFTS Index, EUR	2%	-40%	-80%

Portfolio highlights during the quarter

• The real estate holdings, Kantik and Henryland, performed in line with the approved budgets except for the turnover of rental income, which decreased slightly during the first quarter due to the overall recession in the retail sector and in the country

• Nova Liniya's negative trend continued. Revenues declined by 11% yearon-year as a result of heavy snowfalls paralyzing the construction activity for weeks, but was also a result of weak demand in combination with strengthening competition

• Chumak's revenues for the first quarter amounted to USD 13.8m, which was 2% lower than during the same period last year. Market growth is flat or slightly negative in the majority of the company's main categories, but Chumak is actively launching new products and new categories in order to continue to grow

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 and daily NAV 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 3%.

Fund performance			Since
	Q1 2013	12m 2012	Dec 07
East Capital (Lux) Eastern European Fund, EUR	1%	19%	-28%
MSCI Emerging Europe Index, EUR	0%	18%	-33%

Portfolio breakdown, % per 31 March 2013

Asset allocation by country % of the fund

Financials	55.6
Consumer Discretionary	17.2	 Ukraine
Consumer Staples	15.0	 Estonia
Industrials	1.9	 Other assets
Other assets and liabilities	10.3	and liabilities

Largest holdings in the Fund on 31 March 2013

	Weight,	Perf,	Contr,
Company	%	%	%*	Country	Sector
Kantik	32.4	9.9	2.9	Ukraine	Financials
Henryland	22.2	4.4	-1.1	Ukraine	Financials
Nova Liniya	17.2	2.9	0.4	Ukraine	Consumer Discretionary
Chumak	15.0	2.8	0.4	Ukraine	Consumer Staples
Trev-2 Grupp	1.9	0.0	-0.0	Estonia	Industrials
Rtc Irpin	0.9	2.9	0.0	Ukraine	Financials

All figures in EUR

Sector weighting % of the fund

* Contribution to the portfolio performance

10 largest holdings	Unlisted holdings
(% of fund)	(% of fund)	Total number of holdings
90	100	9

• Trev-2 Group's performance was in line with budget and significantly better than during the same period in 2012. For further information about Trev-2 Group, please see page 15

Portfolio breakdown, % per 31 March 2013

Sector weighting		Asset allocation by country
% of the fund		% of the fund	 Russia
Financials	34.5		 Turkey
Energy	22.0		 Poland
Industrials	9.1		 Romania
Consumer Discretionary	7.3		 Estonia
			 Czech Rep.
Materials	5.9		 Hungary
Telecom. Services	5.6		 Eastern
Consumer Staples	5.1		Europe
Utilities	4.6		 Kazakhstan
Information Technology	1.4		 Other
Health Care	0.9		countries
Other assets and liabilities	3.6		 Other assets and liabilities

Largest holdings in the Fund on 31 March 2013

	Weight,	Perf,	Contr,
Company	%	%	%*	Country	Sector
Sberbank	9.0	8.8	0.8	Russia	Financials
Lukoil	5.3	0.8	0.0	Russia	Energy
Surgut NG	3.7	8.5	0.3	Russia	Energy
Sistema	3.0	-3.4	-0.1	Russia	Telecom. Services
M.Video	2.3	1.0	0.0	Russia	Consumer Discr.
Gazprom	2.3	-6.6	-0.2	Russia	Energy
Transneft	2.1	-2.4	-0.1	Russia	Energy
Sabanci Holding	2.1	10.9	0.1	Turkey	Financials
Halkbank	2.1	11.0	0.1	Turkey	Financials
PZU	1.9	-8.9	-0.2	Poland	Financials
All figures in EUR * Contribution to the portfolio performance
10 largest holdings		Unlisted holdings
(% of fund)		(% of fund)			Total number of holdings
34			0		123

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 2013	12m 2012	Dec 07
East Capital Power Utilities Fund, EUR	1%	-6%	-18%
RTS Electric Utilities Index	-12%	-13%	-69%

Portfolio highlights during the quarter

• At the end of 2012, the fund manager took the decision to close the Fund due to increased risks in the sector. The main part of the remaining assets in the Fund was sold during the first quarter and a cash distribution to the Fund's investors as a result of these exits was completed in April

• The remaining portion of the Fund is expected to be liquidated in the second quarter, with subsequent cash distributions to the Fund's investors

Portfolio breakdown, % per 31 March 2013

Sector weighting

% of the fund

Asset allocation by country % of the fund

Utilities	15.9
Industrials	0.1
Other assets and liabilities	84.1

Largest holdings in the Fund on 31 March 2013
Company	Weight, %	Perf, %	Contr, %*	Country	Sector
TGK-4	5.3	14.3	0.6	Russia	Utilities
OGK-5	3.5	-12.6	-0.5	Russia	Utilities
Caucasus Energy & Infrastructure	3.1	-16.6	-0.6	Georgia	Utilities
Hydro Ogk	1.8	-38.8	-1.2	Russia	Utilities
Mrsk Tsentra	1.2	-7.7	0.3	Russia	Utilities
RAO EES	1.0	23.5	0.7	Russia	Utilities
Nevsky Zavod Elektroschit	0.1	119.8	0.0		Russia Industrials
All figures in EUR * Contribution to the portfolio performance
10 largest holdings (% of fund)	Unlisted holdings (% of fund)			Total number of holdings

16 12 8

East Capital Russia Domestic Growth Fund

The aim of the Fund is to exploit the potential of the strong domestic growth in the Russian economy. The target is to create a concentrated portfolio of between 10 and 20 listed companies which generate at least half of there revenue in Russia and have a market capitalization of above USD 500m. The Fund operates across all sectors and invests in securities that are believed to be undervalued and have a significant performance potential.

At the end of the period East Capital Explorer's share of the Fund was 95%.

Fund performance			Since
	Q1 2013	12m 2012	Aug 12
East Capital Russia Domestic Growth Fund, EUR	0%	-3%	-4%

Portfolio highlights during the quarter

• The main positive contribution came from the Russian leading airline company, Aeroflot Russian Airlines. The stock gained 18%, adding 0.6% to the Fund's performance. The company reported a strong passenger turnover growth of 19% year-on-year in the first quarter, despite the Russian economic slowdown

• Sollers, the Russian auto producer, continued to perform very well in spite of an impressive rally in the stock of 143% in 2012. The stock was up 12% during the first quarter. Sollers reported strong financial results for 2012, beating consensus expectations at bottom-line by as much as 40 % due to a stronger contribution from the joint venture with Ford and also as a result of one-off items

• The Fund exited its position in Nomos Bank, generating a total return of 7% on the transaction. The Fund had built a USD 2m position in the Bank in October 2012, aiming to realize arbitrage opportunities on the basis of the buyout offer, and these opportunities were successfully utilized

• Bank Saint Petersburg continued to be under pressure due to the upcoming conversion of preference shares into common shares, potential capital increase to support the bank's growth strategy, as well as overall low appetite towards small-cap banks. After a difficult year, the management expects to return to double digit profitability supported by growth in the high margin retail portfolio and normalized level of provisioning and the fund manager remains positive about the potential for recovery

Portfolio breakdown, % per 31 March 2013

Sector weighting % of the fund

Financials	29.4
Telecom. Services	15.0
Utilities	12.4
Industrials	11.7
Consumer Discretionary	11.2
Consumer Staples	4.6
Information Technology	4.4
Other assets and liabilities	11.3

Asset allocation by country % of the fund

	Weight,	Perf,	Contr,
Company	%	%		%* Country	Sector
Sberbank	18.9	6.2	1.0	Russia	Financials
Aeroflot Russian Airlines	11.7	18.3	0.6	Russia	Industrials
Sistema	9.8	1.6	0.2	Russia	Telecom. Services
OGK-5	7.2	-12.8	-1.1	Russia	Utilities
M.Video	6.6	2.8	0.3	Russia	Cons. Discretionary
Vimpelcom	5.3	12.3	0.7	Russia	Telecom. Services
E.ON RUSSIA	5.2	1.4	0.2	Russia	Utilities
Dixy	4.6	3.5	0.3	Russia	Consumer Staples
Sollers	4.5	12.4	0.7	Russia	Cons. Discretionary
Yandex	4.4	9.9	0.2	Russia	IT

* Contribution to the portfolio performance

10 largest holdings	Unlisted holdings
(% of fund)	(% of fund)	Total number of holdings
78	0	13

• The fund manager decided to exit its position in X5 Retail Group due to a delayed turnaround in the business and continuous management reshuffle. The Fund's investment into X5 Retail Group has generated a total return of 3% on the transaction

East Capital Special Opportunities Fund

The aim of the Fund has been to achieve capital appreciation from invest¬ments in undervalued assets in special situations where market corrections, liquidity, or company or owner-specific issues have created distressedlike valuations. The Fund has invested in the whole of Eastern European region and has a duration of four years, with a possibility to extend the term by one plus one year if required for an orderly divestment of the investment port¬folio.

The fund has up to now returned more than 50 % of the contributed capital to its shareholders. The fund manager's assessment is that the term needs to be extended by one year to allow flexibility and time to divest the remaining holdings in the portfolio. The aim is to sell off the portfolio within 3-6 months and distribute the proceeds to shareholders.

At the end of the period East Capital Explorer's share of the Fund was 83%.

Fund performance			Since
		Q1 2013 12m 2012	May 09
East Capital Special Opportunities Fund, EUR	12%	11%	26%

Portfolio highlights during the quarter

• IG Seismic Service (IGSS), which was spun off from Integra in December, gained as much as 41% after the management held an impressive presentation for the investment community stipulating ambitious targets, for example, increasing the market capitalization several times over through improved margins. The demand for advanced seismic services is expected to increase due to the increased complexity of drilling operations

• Fondul Proprietatea (FP) had another strong quarter, gained 16% and was the strongest contributor to the Fund's performance. For further information about FP, please see the portfolio comment for East Capital Bering Balkan Fund

• Among the worst performing stocks were Vino Zupa, Belon, Transignalstroy and Armada, all of which dropped in the range 8%-13%. There was no specific corporate news behind these drops. The negative performance were largely in line with the overall market

East Capital Special Opportunities Fund II

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.

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

Fund performance			Since
	Q1 2013	12m 2012	Oct 10
East Capital Special Opportunities Fund II, EUR	-9%	-22%	-50%

Portfolio highlights during the quarter

• Following the banking crisis in Cyprus, Slovenia was rumored to be next for a bailout and, therefore, banks were badly hit. Nova Kreditna Banka Maribor (NKBM) lost 42% and contributed negatively to the Fund by 1.8 %.

• IG Seismic Service (IGSS) gained 41%. For further information about IGSS, please see portfolio comment for East Capital Special Opportunities Fund

• The Fund made a major divestment from the Hungarian real estate developer, Ablon Group, during the quarter. By the end of 2012, the fund manager decided to sell the holding as the company continued to have problems with its cash flow and bank payments when the development projects were stalled. The annual pre-tax return on this investment has been negative, -24% since the initial investment in 2011. However, the holding contributed positively during the quarter with 0.6% to the Fund's performance

• The largest negative contributor to the Fund's performance was Jastrzebska Spolka Weglowa (JSW) which was written down to zero. Also Rusforest continued to perform weakly and the fund manager decided to sell the holding since the turnaround of the company is highly questionable and liquidity issues remain. For further information about JSW and Rusforest, please see the Investment Manager comment on page 6

• Linas Agro reported a fantastic half year result for 2012/2013. Earnings per share were up 3.5 times on the back of a record harvest and strong grain trading margins

Portfolio breakdown, % per 31 March 2013

Sector weighting % of the fund

Financials	34.6
Consumer Discretionary	19.5
Materials	11.8
Energy	10.3
Health Care	7.8
Consumer Staples	2.7
Industrials	0.6
Information Technology	0.4
Other assets and liabilities	12.4

Asset allocation by country

% of the fund

Largest holdings in the Fund on 31 March 2013 Weight, Perf, Contr,

Company	%	%	%*	Country	Sector
Fondul Proprietatea	34.6	15.7	5.0	Romania	Financials
Sollers	19.5	12.6	2.3		Russia Cons. Discretionary
Sibirskiy Cement	9.8	-3.4	-0.4	Russia	Materials
Verofarm	7.8	-5.5	-0.5	Russia	Health Care
IG Seismic Service	4.4	40.8	1.4	Russia	Energy
Mashstroy	3.0	-2.0	-0.1	Russia	Energy
Integra	2.9	5.7	0.2	Russia	Energy
Vino Zupa	1.8	-13.0	-0.3	Serbia	Consumer Staples
Stirol	1.4	-5.7	-0.1	Ukraine	Materials
Sintal	0.9	6.0	0.1	Ukraine	Consumer Staples

All figures in EUR

|--|

10 largest holdings (% of fund)	Unlisted holdings (% of fund)	Total number of holdings
86	0	15

• Sollers continued to perform well, up 13%. For further information about Sollers, please see the portfolio comment for East Capital Russia Domestic Growth Fund

Portfolio breakdown, % per 31 March 2013

Largest holdings in the Fund on 31 March 2013

	Weight,	Perf,	Contr,
Company	%	%		%* Country	Sector
Zavarovalnica Triglav	22.1	2.8	0.3	Slovenia	Financials
Bambi	14.1	-10.8	-1.6		Serbia Cons. Staples
Verofarm	11.0	-5.5	-0.7	Russia	Health Care
Nfd 1 Delniski Investicijski Sklad Dd	7.6	-1.4		-0.1 Slovenia	Financials
AIK Banka	7.0	2.6	0.2	Serbia	Financials
IG Seismic Service	5.5	40.8	1.4	Russia	Energy
RAO EES	4.9	-5.8	-0.3	Russia	Utilities
Sibirskiy Cement	4.3	-3.4	-0.2	Russia	Materials
Integra	3.7	5.7	0.2	Russia	Energy
Linas Agro Group	3.3	22.7			0.5 Lithuania Cons. Staples
All figures in EUR
* Contribution to the portfolio performance

10 largest holdings	Unlisted holdings
(% of fund)	(% of fund)	Total number of holdings
83	8	17

• In the Russian utilities sector, TGK-4 outperformed with a surge of 14% as Gazpromneft is in the process of acquiring the company. The deal is expected to close by the end of July

Direct Investments

Melon Fashion Group (15.1% of NAV) – One of the fastest growing Russian fashion retail companies

• For the full year 2012, the total sales from the continuing operations of Melon Fashion Group (MFG) reached RUB 8,580m (EUR 215m), corresponding to an increase of 32% compared 2011. Gross margin reached 58.8%, while Ebitda amounted to RUB 947m (EUR 24m) implying an Ebitda margin of 11% to be compared with an Ebitda loss of RUB 48m (EUR -1.2m) in 2011

• The Company's focus on improved profitability and logistics during 2012 has given tangible results with its three core brands contributing 82% of total revenues and generating all of the Ebitda

• During the first quarter of 2013, sales from the continuing operations of MFG reached RUB 1,739m (EUR 43m), an increase of 18% compared with the same period in the previous year

• Sales were negatively affected due to the cold weather that hit fashion retailers in Russia and across Europe during the first quarter. Like-for-like sales growth amounted to 14%, 1% and -3% for MFG's core concepts, Love Republic, Zarina and befree, respectively

• In March, MFG successfully completed the divestment of the two master franchise concepts, Springfield and Women' Secret to the franchisor, Cortefiel Group, in a cash transaction. From 1 March, the two master franchise concepts are no longer consolidated in MFG's financial reporting. A total of 69 stores in Russia were transferred to the buyer and the remaining stores ceased operations. The rationale behind divestment is the company's strategy to focus on its core brands. The core brands, befree, Zarina and Love Republic, have been the main drivers of the company's strong performance and, in addition, the decline in the number of concepts compared with a year ago, also allows the management team to even further concentrate its efforts on the development of the Group's core operations. We believe that a more comprehensive approach to growth helps the company to maintain and further improve its profitability and to create further value

• A dividend of RUB 8,721 per share has been proposed by the company's board to the 2013 AGM that will take place on 22 May. The total dividend will amount to approximately EUR 7m

• Focus areas going forward are to increase sales within existing stores and to further improve the logistics. MFG also plans to open around 100 new stores during 2013 of which 35 have already been open yearto-date

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

Komercijalna Banka Skopje (3.0% of NAV) - The largest bank in Macedonia by assets and capital

• Komercijalna Banka Skopje (KBS) reported a first quarter loss of MKD 374.4m (EUR 6.1m) as the bank continued to see deterioration in its loan portfolio caused by poor economic conditions which are affecting corporate borrowers in a number of sectors. Provisions against credit loss increased by 15% compared to last year's first quarter figure, and although pre-provision profits were roughly flat at MKD 480m (EUR 7.8m) they were insufficient to cover this increase in provisioning. The bank's Net Interest Margin was slightly lower at 3.3% (down from 3.4%), but net fee and commission income was up by 5% compared to the first quarter of 2012. Liquidity and capital adequacy remain good

• The Bank's AGM was held at the end of March and the dividend was approved. The dividend was 100 MKD per share which means that East Capital Explorer received EUR 337t

• After completing the sale of the Macedonia Tabak building along with the current KBS headquarters building at the end of 2012, the Bank is fitting out their new premises, located right off the main square in Skopje's town center. The occupancy is expected to take place in June

• The Macedonian economy remains vulnerable to headwinds from the Eurozone area which continue to create a challenging environment for the banks

• The Macedonian Central Bank has revised their GDP growth forecast for 2013 to 2.2%, down from 2.6%. This would still represent an improvement over 2012, when GDP growth was virtually flat

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

Trev-2 Group (2.5% of NAV) - One of the largest infrastructure construction and maintenance companies in Estonia with presence in Latvia

• In the first quarter, Trev-2 Group performed according to budget and better than the same period last year. The turnover was EUR 12.4m (EUR 7.3m year-on-year) and the result, Ebidta, was EUR 0.3m (EUR -1.3m). The net profit was EUR -1.2m (EUR -2.3m).The first quarter of the year is traditionally a low season due to cold weather and the profitability is for the same reason usually poor. We consequently find it encouraging that the management has been able to keep costs under control and the overall loss had a relative low impact on net profit during the first quarter

• The audit for 2012 has been completed and Trev-2 Group's performance in 2012 was substantially better than in 2011. The revenues were EUR 87.6m (EUR 68.2m in 2011), Ebitda, EUR 5.2m (EUR -0,1m) and the net profit EUR 1m (EUR -8.3m)

• The company's leverage was significantly reduced during 2012 and amounts to approximately EUR 9m. The net of interest bearing debt is approximately EUR 5m (equivalent to 1 times Ebitda). The company's goal is to further reduce the financial leverage by selling non-core assets

• The project pipeline for 2013 is strong. However, the competition for public tenders is fierce and it will be challenging for the company to meet its margin expectations and we expect that revenue and profitability growth to some extent will slow down during the year

• The strategy process has now been completed. The company's focus in the coming years will be on improving profitability and efficiency. The group will exit the general construction segment and focus on infrastructure construction and maintenance

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

East European Debt Finance (0.3% of NAV) - A joint-venture focusing on purchasing non-performing loan portfolios

• The East European Debt Finance (EEDF) did not purchase any new portfolios during the quarter. The company is currently not bidding particularly aggressively on new portfolios as it has decided to focus its resources on improving its current debt collection

• In January, East Capital Explorer received its first partial repayment of the shareholder loan to EEDF, amounting to roughly EUR 0.5m

• It has been agreed that the company will repay the shareholder loan on a quarterly basis and based on the amount of accumulated debt collections

• With the largest Rosbank portfolio, it has been agreed with the servicing collection agent that they will analyze the collection data and select the cases for a Discount Payment Offer program to be launched in June. The aim is to increase the collection proceeds by way of forgiving part of the outstanding debt in exchange of immediate payment

• For the same portfolio, the company is also considering starting legal collection and closer cooperation with the bailiffs in cases with already existing writ where collection efforts are extremely inefficient

Short-term investments

On 31 March 2013, East Capital Explorer had no short term investments other than cash and cash equivalents.

Cash and cash equivalents

The EUR 6.7m (EUR 20.0m) 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 2013 amounted to EUR 0.0m (EUR 0.1m).

Results

The Group consists of the Parent Company East Capital Explorer AB (publ) and the subsidiaries East Capital Explorer Investments AB, Humarito Ltd and East Capital Explorer Investments (Cyprus) Ltd.

Due to changed IFRS control requirements, starting 2013, East Capital Explorer is no longer required to consolidate its fund investments in those cases in which the Company was previously regarded as having controlling influence. This implies that all fund holdings will, instead, be reported at fair value in the financial statement. The application of IFRS 10 for annual periods begins on or after 1 January 2014, but earlier application is permitted. East Capital Explorer decided to implement it starting from 1 January 2013. All comparable figures for the corresponding period of the previous year have been restated.

East Capital Explorer Investments AB manages the Company's investment activities in accordance with the Investment Policy and manages the Company's investment portfolio.

The Company's functional currency and presentation currency is euro.

Group

Total comprehensive income for the reporting period 1 January – 31 March 2013 amounted to EUR 6.1m (EUR 27.9m).

Net profit for the period amounted to EUR 6.1m (EUR 27.9m), corresponding to earnings per share of EUR 0.19 (EUR 0.81).

For the reporting period, the main items of the net profit in the investment portfolio include value changes of EUR 6.7m (EUR 28.8m).

Financial income amounted to EUR 0.0m (EUR 0.0m). Financial expenses amounted to EUR 0.0m (EUR 0.2m).

Other items included EUR 0.9m (EUR 0.7m) in operating expenses (described further below) and EUR 0.2m (EUR 0.0m) in income taxes.

Of the total operating expenses of EUR 0.9m (EUR 0.7m) during the first quarter, EUR 0.4m (EUR 0.4m) related to ordinary operating expenses within the Parent Company. The remaining EUR 0.5m (EUR 0.3m) related to operating expenses, mainly fees for direct investments.

To calculate all fees related to East Capital Explorer AB, fees generated in funds should be added. The total fees accrued to the Investment Manager generated by the fund investments and direct investments held by East Capital Explorer AB amounted to EUR 1.6m (EUR 1.4m) 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 on our website.

Parent Company

The Parent Company's net profit for the period amounted to EUR 5.0m (EUR 28.0m). This mainly referred to a reversal of write downs of shares in Group companies. Operating expenses amounted to EUR -0.4m (EUR -0.4m). No investment activities were carried out in the Parent Company.

Business Environment and Market

The global economic uncertainties relating to imbalances and

continued concerns of recessions and indebtedness of certain states are expected to continue to impact the economic situation at the micro and macro levels in our region in 2013. Many global markets are scrambling to maintain or achieve economic growth, leading to continued irregular recovery. These 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 continue to 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 2013 was EUR -1.0m (EUR -1.0m).

The Group's cash, cash equivalents and other short-term investments at the end of the period amounted to EUR 6.7m (EUR 37.2m). Interest income from these amounted to EUR 0.0m (EUR 0.1m) during the reporting period.

The major cash outflows in the investing activities refer to investment in East Capital Russia Domestic Growth Fund amounting to EUR 25m during the reporting period.

East Capital Explorer had no financial debt on 31 March 2013.

Commitments and draw-downs

East Capital Explorer has committed to invest in total EUR 20m into East Capital Baltic Property Fund II. EUR 17m was drawn down by the Fund during last year and EUR 3m is left to invest.

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 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 transactions have occurred during the first quarter of 2013 other than fee payments according to agreements. East Capital Explorer AB has a related party relationship with its subsidiaries, with other

companies in the East Capital Group, 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, 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 2013 the Group generated fees to a total of tEUR 1,603 (tEUR 1,367).

The Company has a service agreement with East Capital Private Equity AB, a service company within East Capital, pursuant to which the Company buys certain administrative and other services. The Company has a subrent premises agreement with East Capital International AB. During the first quarter 2013, the Group purchased services for EUR 0.1m, all of it through the Parent Company.

East Capital Explorer AB's management, Board members and their close relatives, and related companies control 20 % of voting rights in the Company.

The CEO of East Capital Explorer AB is a Board member of East Capital Explorer Investments AB.

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 the Investment Manager.

For further information about the organizational and investment structure of the Company, please see the corporate governance report for 2012 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 buyback mandate and redemption program

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. 685,111 shares were repurchased during the period of 8 August - 5 October 2012 through the share buyback program.

In accordance with the extraordinary general meeting's resolution, East Capital Explorer offered to redeem 5% of the Company's outstanding shares at a price SEK 77 (corresponding to EUR 8.95) for each redeemed share. The redemption amount corresponded to the Company's net asset value per share on 31 October 2012.

1,600,286 shares were tendered for redemption during the redemption program, corresponding to an acceptance level of approximately 97 percent. Consequently, a total of SEK 123,222,022 was paid out to the shareholders participating in the redemption program in January 2013.

In the end of January 2013 East Capital Explorer cancelled the shares repurchased through the share buyback program. The Company does not hold any own shares following the cancellation.

Following completion of the redemption and cancellation, and a bonus issue effected in connection therewith without issuing new shares, East Capital Explorer's share capital amounted to approximately EUR 3.6m by 31,424,309 shares.

The total number of shares in East Capital Explorer as of 31 March 2013 amounted to 31,424,309. The average number of shares outstanding for the reporting period was 31,424,309.

The Board has committed to also propose a redemption program to the Annual General Meeting (AGM) in 2014 and 2015 if the discount to NAV exceeds 10%.

The redemption program is voluntary and requires shareholders to actively participate.

Dividend

The redemption program is intended to replace the Company's dividend policy and therefore no dividend is expected to be paid out for 2013.

Events occurring after the end of the quarter

East Capital Explorer received EUR 9.4m from the East Capital Power Utilities Fund in April 2013. This distribution, which represents the main part of the remaining assets in the Fund, is a result of the earlier announced decision made by the Fund Manager to close the Fund due to the increased level of risk in the sector. East Capital Special Opportunities Fund completed redemption in April 2013, as a result of which East Capital Explorer received EUR 3.1m.

As announced on 3 May, East Capital Explorer has decided to acquire a majority stake in Starman, the leading cable TV, broadband internet and voice cable services provider in Estonia through a direct investment of approx. EUR 24m. The deal is subject to regulatory approval and is expected to be completed during the second quarter.

NAV on 30 April 2013

NAV per share on 30 April 2013 amounted to EUR 9.11 (corresponding to SEK 78). The share price on 30 April 2013 was SEK 46.90 (corresponding to EUR 5.50). Cash, cash equivalents and other short-term investments on 30 April 2013 amounted to EUR 19m (SEK 160m).

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.

New and changed accounting policies in 2013

Changes in accounting policies due to new or amended IFRS. The following accounting policies are applied by the Group as of January 1, 2013:

• Amendment to IFRS 7 Financial Instruments – Disclosures: The change refers to new requirements for disclosures regarding netting of financial assets and liabilities. Netting disclosures are not applicable for the East Capital Explorer Group and had no effect on the proffit/loss and financial position.

• IFRS 10 Consolidated Financial Statements outlines the requirements for the preparation and presentation of consolidated financial statements, requiring entities to consolidate entities it controls. Control requirements have changed compared to "IAS 27 Consolidated and Separate Financial Statements" and "SIC-12 Consolidation—Special Purpose Entities" which form the basis for the year-end report 2012. IFRS 10 requires exposure to variable returns and the ability to affect those returns through power over an investee for the investee to be considered a controlled entity. The application of IFRS 10 for annual periods begins on or after 1 January 2014, but earlier application is permitted. It has been decided that all the funds and similar entities in East Capital Explorer are exempted from consolidation and that those holdings are held at fair value under IFRS 10 starting on 1 January 2013. Consequently, the funds that were consolidated in the year-end report no longer qualify as subsidiaries, and therefore were deconsolidated and instead held at fair value in this interim report for the reporting period 1 January-31 March 2013. All the comparable figures for the corresponding period the previous year have been restated. Effect of changes in the accounting principles can be seen in the Statement of Changes in Equity for the Group on page 23 and in the note "Restatement of Financial Statement in respect of the application of IFRS 10" on pages 28-30.

East Capital Explorer continues to consolidate its subsidiaries East Capital Explorer Investments AB, Humarito Ltd and East Capital Explorer Investments (Cyprus) Ltd.

• IFRS 13 Fair Value Measurement: This is a new standard for measuring fair value, including changed disclosure requirements. The new standard does not have any material monetary effect on the Group or Parent Company. Disclosures in accordance with the new requirements are presented on pages 24 – 25.

A number of new standards, amendments to standards and interpretations are effective after the publication of these financial statements, and have not been applied in preparing these consolidated accounts. These are not judged to have any material effect on the consolidated accounts.

Stockholm, 8 May 2013

Mia Jurke Chief Executive Officer

Contact information

Mia Jurke, CEO, +46 8 505 885 32 Catharina Hagberg, Acting CEO from 13 May 2013, +46 8 505 88 552 Mathias Pedersen, CFO, +46 8 505 977 48 Charlotte Åsberg, Investor Relations Manager, +46 8 505 885 94

East Capital Explorer AB

Kungsgatan 33, Box 2714 SE-103 88 Stockholm, Sweden Tel: +46 8 505 977 00 www.eastcapitalexplorer.com

Financial calendar

Monthly net asset value report on the fifth working day after the end of each month
Interim Report, 1 January 30 June 2013 on 14 August 2013
Interim Report, 1 January 30 September 2013 on 11 November 2013

Subscribe to monthly NAV updates, financial reports and press releases directly to your e-mail on: www.eastcapitalexplorer.com or by sending an email to [email protected].

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 2013.

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 2013, 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 2013 KPMG AB

Carl Lindgren Authorized Public Accountant

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

Statement of profit or loss and other Comprehensive Income

EUR thousands		Restated1

	2013 Jan-Mar	2012 Jan-Mar
Changes in value	6,736	28,796
Total operating income	6,736	28,796
Staff expenses	-214	-180
Other operating expenses	-654	-531
Operating profit/loss	5,868	28,085
Financial income	26	46
Financial expense	-33	-191
Profit/loss before tax	5,861	27,940
Income tax	246	-33
NET PROFIT/LOSS FOR THE PERIOD	6,107	27,907

Other comprehensive income:
Exchange differences on translating foreign operations	-	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	6,107	27,907
Net profit/loss for the year distribution:
Shareholders of the Parent Company	6,107	27,921
Non-controlling interest	-	-14
	6,107	27,907
Total comprehensive income distribution:
Shareholders of the Parent Company	6,107	27,921
Non-controlling interest	-	-14
	6,107	27,907
Earnings per share, EUR
- shareholders of the Parent Company No accumulated dilution effects during the period	0.19	0.81

1 Starting on 1 January 2013, the application of IFRS 10 begins. Comparable figures (Statement of profit or loss and other Comprehensive Income, Statement of Financial Position, Statement of Cash Flow and Segment Reporting) have been restated as if the framework had also applied in 2012. Further information can be read on page 18 "Accounting principles" and Note "Restatement of Financial Statements in respect of the application of IFRS 10".

Statement of Financial Position

EUR thousands		Restated	Restated

	2013	2012	2012
	31 Mar	31 Dec	31 Mar
Assets
Shares and participations in investing activities	288,871	257,599	284,350
Deferred tax assets	649	403	-
Total non-current assets	289,520	258,002	284,350
Other short-term receivables	33	32	34
Tax receivables	895	740	309
Accrued income and prepaid expenses	21	80	146
Short-term investments	-	-	17,279
Cash and cash equivalents	6,677	46,497	19,963
Total current assets	7,626	47,349	37,730
Total assets	297,146	305,350	322,081
Equity
Share capital	3,640	3,631	3,628
Other contributed capital	348,180	362,458	369,552
Translation reserve	-	77	-
Retained earnings	-59,469	-65,653	-52,078
Equity attributable to shareholders of the Parent Company	292,351	300,513	321,103
Non-controlling interest	8	8	-106
Total Equity	292,358	300,521	320,997
Liabilities
Deferred tax liabilities	-	-	9
Total long-term liabilities	-	-	9
Other liabilities	294	188	489
Accrued expenses and deferred income	4,494	4,641	586
Total current liabilities	4,788	4,829	1,075
Total equity and liabilities	297,146	305,350	322,081

PLEDGED ASSETS AND CONTINGENT LIABILITIES

Pledged assets - - - Contingent liabilities - - -

Statement of Changes in Equity

EUR thousands	Share	Other contributed	Translation	Retained earnings incl. profit /loss	Total equity shareholders in	Non-controlling
2013	capital	capital	Reserves	for the year	Parent Company	interest	Total equity
Opening equity 1 January 2013	3,631	362,458	77	-65,653	300,513	8	300,521
Net profit for the period	-	-	-	6,107	6,107	-	6,107
Other comprehensive income	-	-	-77	77	-	-	-
Total comprehensive income	3,631	362,458	-	-59,469	306,620	-	306,627
Bonus issue/cancellation of share	9	-9	-	-	-	-	-
Redemption program	-	-14,269	-	-	-14,269	-	-14,269
Per 31 March 2013	3,640	348,180	-	-59,469	292,351	8	292,358

EUR thousands

2012	Share capital	Other contributed capital	Translation Reserves	Retained earnings incl. profit /loss for the year	Total equity shareholders in Parent Company	Non-controlling interest	Total equity
Per 31 December 2011	3,628	369,923	4,183	-84,182	293,551	45,627	339,178
Effect of changes in accounting principles			-4,183	4,183	-	-45,719	-45,719
Opening equity 1 January 2012	3,628	369,923	-	-79,999	293,551	-92	293,459
Net profit/loss for the period	-	-	-	27,921	27,921	-14	27,907
Total comprehensive income	3,628	369,923	-	-52,078	321,472	-106	321,367
Share buy-back	-	-370	-	-	-370	-	-370
Per 31 March 2012	3,628	369,552	-	-52,078	321,103	-106	320,997

Statement of Cash Flow

EUR thousands		Restated
	1 Jan – 31 Mar 2013	1 Jan – 31 Mar 2012
Operating activities
Operating profit/loss	5,868	28,085
Changes in value	-6,736	-28,796
Interest received	51	47
Other financial income	-17	-
Tax paid	-154	-159
Cash flow from current operations before changes in working capital	-987	-823
Cash flow from changes in working capital
Increase (-)/decrease (+) in other current receivables	-1	-459
Increase (+)/decrease (-) in other current payables	-42	329
Cash flow from operating activities	-1,030	-953
Investing activities
Investment in shares and participations	-25,000	-1,074
Sale of short-term investments	-	5,580
Sale of shares and participations	522	-
Cash flow from investing activities	-24,478	4,506
Financing activities
Redemption program	-14,269	-370
Cash flow from financing activities	-14,269	-370
Cash flow for the period	-39,777	3,182
Cash and cash equivalents at beginning of the period1	46,497	16,639
Exchange rate differences in cash and cash equivalents	-43	142
Cash and cash equivalents at end of the period	6,677	19,963

1 Cash equivalents comprise deposits and cash

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 2013	Fund Investments	Direct Investments	Short-term Investments	Unallocated	Total consolidated
Changes in value	6,627	109	-	-	6,736
Staff expenses	-	-	-	-214	-214
Other operating expenses	-	-377	-	-277	-654
Operating profit/loss	6,627	-268	-	-491	5,868
Financial income	-	16	10	-	26
Financial expense	-	-33	-	-	-33
Profit/loss before tax	6,627	-285	10	-491	5,861
Assets	227,672	61,198	6,679	1,598	297,146

EUR thousands Restated 1 Jan – 31 Mar 20121	Fund Investments2	Direct Investments	Short-term Investments	Unallocated	Total consolidated
Changes in value	26,352	2,318	126	-	28,796
Staff expenses	-	-	-	-180	-180
Other operating expenses	-53	-269	-	-210	-531
Operating profit/loss	26,299	2,049	126	-389	28,085
Financial income	42	-	-	4	46
Financial expense	-158	-	-33	-	-191
Profit/loss before tax	26,183	2,049	93	-385	27,940
Assets	230,618	53,894	37,268	300	322,081

1 Comparable figures in the segment reporting for the corresponding period 2012 have been restated due to the changes in IFRS control requirements

2 Reporting figures in regards to Fund Investments segment were affected due to the application of IFRS 10. Please see note "Restatement of Financial Statements in respect of the application of IFRS 10"

Financial instruments

As of the first quarter 2013, IFRS requires the information below to be disclosed in the interim reports. The numbers are based on the same accounting- and valuation policies as used in the preparation of the company's most recent annual report.

Group 31 March 2013 EUR thousands	Total carrying amount	Fair Value
Shares and participation in investing activities	288,871	288,871
Other receivables	32	32
Short-term investments	1	1
Cash and cash equivalents	6,677	6,677
Total	295,582	295,582
Other financial liabilities	294	294
Accrued expenses	4,292	4,292
Total	4,587	4,587

Calculation of fair value

The following summarises the main methods and assumptions applied in determining the fair value of the Group's financial instruments.

Financial instruments not measured at fair value through profit or loss For accounts receivable and accounts payable, the carrying amount is deemed to reflect fair value since the remaining maturity is generally short.

Fair value estimation

The Group applies IFRS 7. This requires the Group to classify for disclosure purposes fair value measurements using a fair value hierarchy reflecting the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

Level I: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level II: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
Level III: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the financial asset.

The determination of that which constitutes 'observable' requires significant judgement by the Group. The Group considers observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. Classification of equity funds that are consolidated are done in each level according to the underlying equities. The remaining equity funds are classified in the level where underlying equities to a predominant proportion have been classified.

The following table analyses within the fair value hierarchy the Group's financial assets measured at fair value as at 31 March 2013.

Fair value hierarchy for financial assets (EUR thousands)1

31 March 2013
Shares and participations in investment activities designated at fair value through profit or loss at inception:	Level 1	Level 2	Level 3	Total balance
- Fund Investments	204,343	-	23,330	227,672
- Direct Investments	8,806	-	52,393	61,199
- Short-term Investments	-	-	1	1
Total assets measured at fair value	213,149	-	75,724	288,873

1 Classification per level of fair value hierarchy is presented in the Portfolio report on the page 3.

Investments whose values are based on quoted market prices in active markets, and are therefore classified within level 1, include publically listed companies in Equity fund investments and direct investments.

Financial investments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs, are classified within level 2. As level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Investments classified within level 3 have significant unobservable inputs, as they trade infrequently. Level 3 instruments include mainly private equity investments. As observable prices are not available for these holdings, the Group has used valuation techniques to derive the fair value. Level 3 instruments also include investments in other East Capital Equity funds, to the extent they primarily hold unlisted investments.

The following table presents the movement in level 3 investments for the period ended 31 March 2013 by class of financial instrument:

31 March 2013
	Fund Investments	Direct Investments	Short term Investments	Total
Opening balance 2013	22,659	52,890	1	75,550
Sales/reduction	-	(522)	-	(522)
- Result from financial assets at fair value through profit or loss included
in balance sheet	671	25	-	696
Closing balance 2013	23,330	52,393	1	75,724

Movement from or to level 3 during the year depends on change in trade pattern for the share. During Q1 2013 there has not been any movements from or to level 3.

Sensitivity analysis for market risks (EUR thousands)

31 March 2013
Risk factors	Change	Effect on net profit/loss for the period
Equity price	+/- 10%	28,887
Value of level 3 holdings	+/- 10%	7,572

Consolidated Key Figures

Key figures1	3m	12m	9m	6m	3m	12m	9m	6m
	2013	2012	2012	2012	2012	2011	2011	2011
Net asset value, EURm	292	301	301	290	321	294	317	382
Change in NAV during the quarter, %	-2.7	-0.1	3.7	-9.7	9.4	-7.3	-17.0	-9.2
Equity ratio, %	98.4	97.5	97.9	96.1	97.2	97.3	98.3	98.0
Market capitalisation, SEKm	1,634	1,618	1,691	1,601	1,879	1,815	1,846	2,562
Market capitalisation, EURm	195	188	200	183	213	209	201	279
Outstanding number of shares, m	31.4	33.0	33.2	33.7	33.7	33.8	34.7	34.9
Weighted average number of shares, m	31.4	33.5	33.6	33.7	33.7	34.6	34.8	34.9
Number of employees	5	5	4	4	4	4	4	4

Key figures per share	3m	12m	9m	6m	3m	12m	9m	6m
	2013	2012	2012	2012	2012	2011	2011	2011
Earnings per share, EUR	0.19	0.49	0.41	-0.04	0.92	-3.59	-3.07	-1.00
NAV, SEK	78	78	77	75	84	77	84	101
NAV, EUR	9.30	9.10	9.07	8.60	9.52	8.69	9.14	10.97
Share price, SEK	52.00	49.00	51.00	47.50	55.75	53.75	53.00	73.50
Share price, EUR	6.21	5.70	6.04	5.42	6.32	6.03	5.76	8.01

SEK/EUR 8.37 8.59 8.44 8.77 8.83 8.92 9.20 9.18

1 Consolidated key figures are not affected by the change in the accounting principles

Income Statement – Parent Company

EUR thousands	2013 Jan-Mar	2012 Jan-Mar
Staff expenses	-214	-180
Other operating expenses	-205	-210
Operating profit/loss	-419	-389
Financial income1	5,497	28,391
Profit/loss before tax	5,078	28,001
Income tax	-32	-30
NET PROFIT/LOSS FOR THE PERIOD	5,046	27,972

1 Financial income in Parent Company includes, among other, a reversal of write down of shares in Group Companies of EUR 4.9m

Statement of Comprehensive Income – Parent Company

EUR thousands	2013 Jan-Mar	2012 Jan-Mar
NET PROFIT/LOSS FOR THE period	5,046	27,972
TOTAL COMPREHENSIVE INCOME FOR THE period	5,046	27,972

Balance Sheet – Parent Company

EUR thousands
	31 Mar 2013	31 Dec 2012	31 Mar 2012
Participations in group companies	261,805	271,272	288,044
Deferred tax	308	340	373
Total non-current assets	262,113	271,612	288,417
Other short-term receivables	31	30	-
Loan to group companies	29,315	29,315	29,315
Accrued income and prepaid expenses	21	23	222
Cash and cash equivalents	1,247	1,131	3,617
Total current assets	30,614	30,499	33,155
Total assets	292,727	302,111	321,572
Shareholders' equity
Restricted equity
Share capital	3,640	3,631	3,628
Total restricted equity	3,640	3,631	3,628
Non-restricted equity
Share premium reserve	348,183	362,461	369,552
Retained earnings	-64,510	-80,096	-80,096
Net profit/loss for the period	5,046	15,586	27,972
Total non-restricted equity	288,719	297,951	317,428
Total shareholders' equity	292,358	301,582	321,056

Liabilities
Other liabilities	167	198	125
Accrued expenses and prepaid income	201	332	391
Total current liabilities	369	530	516
Total liabilities	369	530	516
Total equity and liabilities	292,727	302,111	321,572

PLEDGED ASSETS AND CONTINGENT LIABILITIES

Pledged assets - - Contingent liabilities - -

Restatement of Financial Statements in respect of the application of IFRS 10 The initial effect is recognized against retained earnings per January 1, 2012

Statement of Profit or Loss and Other Comprehensive Income

EUR thousands	Mar 2012 Jan	IFRS 10 Adj.	Resta ted 2012 Jan-Mar	Apr-Jun 2012	IFRS 10 Adj.	Resta ted 2012 Apr-Jun	2012 Jan Jun	Adj. IFRS 10	Resta ted 2012 Jan-Jun	2012 Jul-Sep	IFRS 10 Adj.	Resta ted 2012 Jul-Sep	2012 Jan Sep	IFRS 10 Adj.	ted Resta 2012 Jan-Sep	2012 Oct Dec	Adj. IFRS 10	Resta ted 2012 Oct-Dec	2012 Jan Dec	Adj. IFRS 10	Resta ted 2012 Jan-Dec
Received dividends Changes in value	43,810 326	-15,014 -326	28,796 0	-48,119 7,115	20,826 -4,742	-27,293 2,373	-4,309 7,441	5,812 -5,068	1,503 2,373	20,284 1,522	-6,138 -1,522	14,147 0	15,976 8,963	-326 -6,591	15,650 2,373	421 5,390	-2,688 -421	2,702 0	21,366 9,385	-3,014 -7,012	18,352 2,373
Total operating income	44,137 -15,342		28,796 -41,004		16,084 -24,920		3,133	744	3,876	21,807	-7,660	14,147	24,939	-6,916	18,023	5,811	-3,109	2,702	30,750	-10,026	20,725
Staff expenses	-180	1	-180	-242	0	-242	-422	1	-422	-191	0	-191	-613	0	-613	-221	0	-221	-833	0	-833
Other operating expenses	-1,944	1,412	-531	-3,629	1,617	-2,012	-5,572	3,029	-2,544	-1,859	1,231	-628	-7,431	4,260	-3,171	-4,466	1,142	-3,324	-11,897	5,402	-6,495
Operating profit/loss	42,013 -13,929		28,085	-44,875	17,701	-27,174	-2,862	3,773	911	19,757	-6,429	13,328	16,895	-2,656	14,239	1,125	-1,967	-843	18,020	-4,623	13,396
Financial income	100	-54	46	847	-423	424	947	-477	470	473	-183	290	1,420	-661	760	325	-16	310	1,746	-676	1,070
Financial expense	-335	144	-191	190	-586	-396	-145	-442	-587	-213	62	-152	-359	-380	-739	278	125	403	-81	-255	-336
Profit/loss before tax	41,777 -13,838		27,940	-43,837	16,692	-27,146	-2,060	2,854	794	20,016	-6,551	13,465	17,957	-3,697	14,260	1,728	-1,858	-130	19,685	-5,555	14,130
Income tax	-61	28	-33	-1,119	267	-852	-1,180	295	-884	331	128	459	-849	424	-426	714	28	743	-135	452	317
NET PROFIT/LOSS FOR THE PERIOD	41,716	-13,810	27,907 -44,956		16,958	-27,998	-3,240	3,150	-90	20,347	-6,423	13,924	17,107	-3,273	13,834	2,442	-1,830	612	19,550	-5,103	14,447
Other comprehensive income:
Exchange differences on translating foreign operations	-4,622	4,622	0	5,933	-5,933	0	1,306	-1,306	0	-2,447	2,524	77	-1,142	1,219	77	-1,857	1,857	1	-3,000	3,077	77
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	37,094	-9,187	27,907	-39,024	11,025	-27,998	-1,934	1,844	-90	17,900	-3,899	14,002	15,966	-2,054	13,911	585	28	613	16,550	-2,026	14,524
Net profit/loss for the year distribution:
Shareholders of the Parent Company	30,948	-3,026	27,922	-32,379	4,336	-28,043	-1,431	1,312	-121	15,175	-1,322	13,853	13,744	-10	13,733	3,134	-2,522	612	16,878	-2,532	14,346
Non-controlling interest	10,769	-10,782	-14	-12,577	12,621	44	-1,808	1,839	29	5,172	-5,101	71	3,364	-3,263	101	-691	691	0	2,673	-2,572	101
	41,716	-13,810	27,907 -44,956		16,958	-27,998	-3,240	3,150	-90	20,347	-6,423	13,924	17,107	-3,273	13,834	2,443	-1,830	612	19,550	-5,104	14,447
Total comprehensive income distribution:
Shareholders of the Parent Company	27,922	0	27,922	-28,043	0	-28,043	-121	0	-121	13,932	0	13,932	13,811	0	13,811	613	0	613	14,424	0	14,424
Non-controlling interest	9,172	-9,187	-14	-10,981	11,026	44	-1,813	1,843	29	3,968	-3,897	71	2,155	-2,054	101	-28	28	0	2,127	-2,026	101
	37,094	-9,187	27,907	-39,024	11,026	-27,998	-1,934	1,844	-90	17,900	-3,897	14,002	15,966	-2,054	13,911	585	28	613	16,550	-2,026	14,524

East Capital Explorer AB Interim Report 1 January – 31 March 2013

Statement of Financial Position

EUR thousands	2011 31 Dec	Adj. IFRS 10	Restated 2011 31 Dec	2012 31 Mar	Adj. IFRS 10	Restated 2012 31 Mar	30 Jun 2012	IFRS 10 Adj.	Restated 2012 30 Jun	2012 30 Sep	IFRS 10 Adj.	Restated 2012 30 Sep	2012 31 Dec	IFRS 10 Adj.	Restated 2012 31 Dec
Assets
Shares and participations in investing activities	293,585	-39,028	254,557	343,326	-58,975	284,350	279,328	-43,946	235,382	303,016	-38,180	264,835	287,925	-30,327	257,599
Deferred tax assets	70	0	70	0	0	0	0	0	0	0	0	0	403	0	403
Total non-current assets	293,656	-39,028	254,627	343,326	-58,975	284,350	279,328	-43,946	235,382	303,016	-38,180	264,835	288,328	-30,327	258,002
Other short-term receivables	100	-100	0	2,844	-2,811	34	5,105	-5,072	33	4,985	-4,985	0	3,073	-3,041	32
Tax receivables	103	0	103	309	0	309	0	0	0	483	0	483	740	0	740
Accrued income and prepaid expenses	125	-15	110	1,031	-885	146	1,240	-1,141	100	420	-245	175	50	30	80
Short-term investments	22,793	0	22,793	17,279	0	17,279	13,921	0	13,921	8,466	0	8,466	1	-1	0
Cash and cash equivalents	32,147	-15,508	16,639	35,234	-15,271	19,963	55,027	-9,248	45,778	44,183	-14,780	29,402	61,210	-14,713	46,497
Total current assets	55,266	-15,623	39,644	56,697	-18,966	37,730	75,293	-15,461	59,832	58,538	-20,010	38,527	65,074	-17,725	47,349
Total assets	348,923	-54,652	294,271	400,023	-77,942	322,081	354,621	-59,408	295,214	361,554	-58,191	303,363	353,402	-48,052	305,350
Equity
Share capital	3,628	0	3,628	3,628	0	3,628	3,631	0	3,631	3,631	0	3,631	3,631	0	3,631
Other contributed capital	369,923	0	369,922	369,552	0	369,552	366,517	0	366,517	363,241	0	363,241	362,458	0	362,458
Translation reserve	4,183	-4,183	0	1,157	-1,157	0	5,493	-5,495	-2	4,250	-4,173	77	1,729	-1,652	77
Retained earnings	43,743	3,674	47,417	-84,182	4,183	-79,999	-84,182	4,183	-79,999	-84,182	4,183	-79,999	-84,182	4,183	-79,999
Profit/loss for the period	-127,925	509	-127,416	30,948	-3,027	27,921	-1,431	1,312	-120	13,744	-10	13,733	16,878	-2,532	14,346
Equity attributable to shareholders of the Parent Company	293,551	0	293,551	321,103	0	321,103	290,027	0	290,026	300,683	0	300,683	300,513	0	300,513
Non-controlling interest	45,627	-45,719	-92	67,906	-68,011	-106	50,661	-50,723	-63	53,099	-53,091	8	44,120	-44,113	8
Total Equity	339,178	-45,719	293,459	389,009	-68,012	320,997	340,688	-50,724	289,964	353,783	-53,091	300,691	344,634	-44,112	300,521
Liabilities
Deferred tax liabilities	0	0	0	9	0	9	13	0	13	14	0	14	0	0	0
Total long-term liabilities	0	0	0	9	0	9	13	0	13	14	0	14	0	0	0
Tax liabilities	0	0	0	0	0	0	162	-60	102	0	0	0	0	0	0
Other liabilities	3,609	-3,409	200	4,478	-3,989	489	5,283	-2,551	2,732	3,153	-2,449	703	2,137	-1,949	188
Accrued expenses and deferred income	6,136	-5,524	612	6,527	-5,942	586	8,476	-6,073	2,403	4,606	-2,650	1,955	6,632	-1,990	4,641
Total current liabilities	9,745	-8,933	811	11,005	-9,930	1,075	13,921	-8,683	5,238	7,758	-5,100	2,659	8,768	-3,939	4,829
Total equity and liabilities	348,923	-54,652	294,271	400,023	-77,942	322,081	354,621	-59,408	295,214	361,554	-58,191	303,363	353,402	-48,052	305,350

East Capital Explorer AB Interim Report 1 January – 31 March 2013

Statement of Cash Flow

EUR thousands	2012 Jan-Mar	Adj. IFRS 10	Restatated 2012 Jan-Mar	2012 Jan-Jun	IFRS 10 Adj.	Restatated Jan-Jun 2012	2012 Jan-Sep	IFRS 10 Adj.	Restatated 2012 Jan-Sep	2012 Jan-Dec	IFRS 10 Adj.	Restatated 2012 Jan-Dec
Operating activities
Operating profit/loss	42,013	-13,928	28,085	-2,862	3,773	911	16,895	-2,656	14,239	18,020	-4,624	13,396
Changes in value	-43,810	15,014	-28,796	4,309	-5,812	-1,503	-15,976	326	-15,650	-21,366	3,014	-18,352
Interest received	47	0	47	454	92	546	305	-67	238	614	-95	519
Other financial income	93	-93	0	98	-374	-276	550	-419	131	143	-36	107
Tax paid	-187	28	-159	-833	237	-596	-1,145	423	-722	-1,092	451	-640
Cash Flow from current operations before changes in working capital	-1,845	1,021	-823	1,166	-2,085	-919	629	-2,393	-1,764	-3,681	-1,289	-4,970
Cash flow from changes in working capital
Increase (-)/decrease (+) in other current receivables	-2,772	2,313	-459	-4,886	4,729	-157	-4,082	4,114	33	-1,141	1,143	3
Increase (+)/decrease (-) in other current payables	763	-434	329	-874	4,737	3,863	-4,733	6,033	1,301	-1,783	5,799	4,017
Cash flow from operating activities	-3,853	2,901	-953	-4,595	7,383	2,788	-8,186	7,756	-430	-6,604	5,653	-951
Investing activities
Investment in shares and participations	-16,141	15,067	-1,074	-21,996	6,808	-15,188	-45,557	13,404	-32,153	-65,840	25,299	-40,541
Repaid shareholders contributions						7,317			7,317			21,536
Sale of short-term investments	5,580	0	5,580	9,523	0	9,523	17,111	0	17,111	23,164	0	23,164
Sale of shares and participations	20,768	-20,768		49,352	-21,161	28,191	66,223	-38,439	27,784	105,458	-71,002	34,456
Cash flow from investing activities	10,207	-5,701	4,506	36,880	-14,354	29,843	37,777	-25,035	20,059	62,782	-45,702	38,616
Financing activities
Dividend to and redemption from non-controlling interest	-5,025	5,025	0	-8,372	8,372	0	-12,732	12,732	0	-21,306	21,306	0
Paid dividend to shareholders	0	0	0	-3,033	0	-3,033	-3,033	0	-3,033	-3,033	0	-3,033
Redemption program	-370	0	-370	-370	0	-370	-3,646	0	-3,646	-4,429	0	-4,429
Cash flow from financing activities	-5,395	5,025	-370	-11,775	8,372	-3,403	-19,411	12,732	-6,679	-28,768	21,306	-7,462
Cash flow for the period	959	2,224	3,182	20,511	1,400	29,228	10,180	-4,547	12,950	27,410	-18,743	30,203
Cash and cash equivalents at beginning of the period1	32,147	-15,508	16,639	32,147	-15,508	16,639	32,147	-15,508	16,639	32,147	-15,508	16,639
Reclassification from subsidiary to investment2	2,219	-2,219	0	2,219	-2,219	0	2,219	-2,219	0	2,219	-2,219	0
Exchange rate differences in cash and cash equivalents	-91	233	142	150	-239	-89	-363	176	-187	-566	221	-345
period the of end at ivalents equ cash and ash C	35,234	-15,270	19,963	55,027	-16,565	45,778	44,183	-22,097	29,402	61,210	-36,249	46,497

1 Cash equivalents comprise deposits and cash 2 The holding in East Capital Bering Central Asia Fund has been reclassified from investment to subsidiary during 2012. During 2011, the holding in East Capital Special Opportunities Fund II was reclassified from subsidiary to investment

Definitions

Average number of shares

Weighted average number of outstanding shares during the period.

Earnings per share

Net profit attributable to the holders of the Parent Company divided by the average number of shares.

Ebitda

Earnings before interest, tax, depreciation and amortization.

Equity ratio

Total equity as a percentage of total assets.

IRR

Internal Rate of Return, i.e. the discount rate at which the net present value of costs (negative cash flows) of an investment equals the net present value of the benefits (positive cash flows) of the same investment.

Net Asset Value (NAV)

The value of a given company's net assets, i.e. total assets less net liabilities. An indicative NAV is calculated on a monthly basis and is published five working days after the end of the month.

Net asset value per share

Net asset value per share divided by the number of outstanding shares on the balance sheet date.

Outstanding number of shares

Registered number of shares less any share held by the company.

Registered number of shares

The number of shares in the company including shares held by the company.

Return on equity

Profit/loss for the year as a percentage of average shareholders' Equity.

Total comprehensive income

Change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with the owners in their capacity as owners.

Volatility

A measure of the variability in the price of an asset. Volatility is usually measured as a standard deviation in the return of an asset during a certain given period of time.

Kungsgatan 33, Box 7214 SE-103 88 Stockholm, Sweden Tel: +46 8 505 97 700 Coroporate identity no: 556693-7404 www.eastcapitalexplorer.com

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Eastnine — Interim / Quarterly Report 2013

3037_rns_2013-05-08_4e6268bd-e90b-4a4d-9001-9101e734c795.pdf

Interim Report 1 January – 31 March 2013

Interim Report 1 January – 31 March 2013

Events during the first quarter

Events after the end of the quarter

Net asset value and share price development

Portfolio on 31 March 2013

CEO Comment

Portfolio development and activity

Outlook and events after the quarter

"The largest news after the end of the quarter was the acquisition of a majority stake in Starman, the leading cable TV operator in Estonia"

Portfolio on 31 March 2013 (%)

Top 10 Holdings in East Capital Explorer's portfolio on a see-through basis (sum of direct and indirect holdings)1

Portfolio breakdown, % per 31 March 2013

Investment Manager Comment

East Capital Explorer vs indices since IPO

Market comment

Portfolio comment

Fund Investments

Net asset value, share price and index development

"The opening of H&M is one of the most important and awaited events among all the planned changes and it is an important first step in the development of G9"

Direct Investments

Outlook

"Starman is well-positioned to take advantage of the growing digital TV and broadband markets, and will benefit from the households' growing disposable income"

Portfolio Investments

Investment Management team at East Capital

Fund Investments

East Capital Baltic Property Fund II

Portfolio highlights during the quarter

East Capital Bering Balkan Fund

Portfolio highlights during the quarter

Portfolio breakdown, % per 31 March 2013

Portfolio breakdown, % per 31 March 2013

Asset allocation by country % of the fund

Largest holdings in the Fund on 31 March 2013

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 2013

Largest holdings in the Fund on 31 March 2013

Portfolio breakdown, % per 31 March 2013

Asset allocation by country % of the fund

Largest holdings in the Fund on 31 March 2013

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 2013

Portfolio breakdown, % per 31 March 2013

Sector weighting % of the fund

Largest holdings in the Fund on 31 March 2013

East Capital Bering Ukraine Fund R

Portfolio highlights during the quarter

East Capital (Lux) Eastern European Fund

Portfolio breakdown, % per 31 March 2013

Largest holdings in the Fund on 31 March 2013

Portfolio breakdown, % per 31 March 2013

Largest holdings in the Fund on 31 March 2013

East Capital Power Utilities Fund

Portfolio highlights during the quarter

Portfolio breakdown, % per 31 March 2013

East Capital Russia Domestic Growth Fund

Portfolio highlights during the quarter

Portfolio breakdown, % per 31 March 2013

East Capital Special Opportunities Fund

Portfolio highlights during the quarter

East Capital Special Opportunities Fund II

Portfolio highlights during the quarter

Portfolio breakdown, % per 31 March 2013

Largest holdings in the Fund on 31 March 2013 Weight, Perf, Contr,

Portfolio breakdown, % per 31 March 2013

Largest holdings in the Fund on 31 March 2013

Direct Investments

Melon Fashion Group (15.1% of NAV) – One of the fastest growing Russian fashion retail companies

Komercijalna Banka Skopje (3.0% of NAV) - The largest bank in Macedonia by assets and capital

Trev-2 Group (2.5% of NAV) - One of the largest infrastructure construction and maintenance companies in Estonia with presence in Latvia

Short-term investments

Eastnine Interim / Quarterly Report 2013