NAV and share price development
* Indicative NAV per share on 31 March 2014 amounted to EUR 9.15 (SEK 82),
corresponding to a total NAV of EUR 288m (SEK 2,563m) for East Capital
Explorer
* NAV per share (EUR) declined by 2.1% (1.4% in SEK) compared to 28 February
2014
* The value of cash, cash equivalents and other short term investments per
share amounted to EUR 1.09 (SEK 10), corresponding to an aggregate of EUR
34m (SEK 306m) on 31 March 2014
* The closing price per share on 31 March 2014 was SEK 50.50 (EUR 5.67),
corresponding to a decline of 8.6% compared to 28 February 2014
* The number of shares outstanding in East Capital Explorer on 31 March 2014
was 31,424,309. The Company did not hold any own shares
* EUR 1 = SEK 8.91 on 31 March 2014
Events during the month
* In accordance with East Capital Special Opportunities Fund's original four
plus one year duration term, East Capital Explorer received a final pay-out
totaling EUR 14.0m from the fund, corresponding to an annualized return on
the investment of 9.4%. The pay-out represents the remaining part of the
Fund's assets
* The market sentiment towards Russia, which represents close to half of East
Capital Explorer's geographic exposure, deteriorated considerably in March
when Russia decided to formally annex the Crimea. The portfolio's public
fund holdings with focus on Russia and Ukraine consequently dropped
significantly in value; East Capital Russia Domestic Growth Fund,
representing 10 percent of the portfolio, lost 14 percent, while East
Capital Bering Ukraine Fund R, with a portfolio weight of 1 percent, lost
16 percent
* At an Extraordinary General Meeting on March 24, it was decided to introduce
a new class of shares, preference shares, and to authorise the Board to
issue such preference shares in order to take advantage of attractive
investment opportunities with strong cash flow and good growth. New capital
is primarily intended to be invested in identified assets within two areas
that the company currently considers to be of particular interest: consumer
companies driven by a growing middle class, primarily in Russia and the
Baltic countries, and commercial real estate with good yield in the Baltics.
The EGM also decided on a number of changes required to adapt the company to
EU's new regulatory framework for alternative investment fund managers
(AIFMD)
* As announced in March, East Capital Explorer's AGM, to be held on 22 April,
will decide on, inter alia, to continue with the ongoing redemption program
whereby the company will redeem 1 out of 20 shares at February's NAV of SEK
83 per share. Assuming full acceptance level, a total of EUR 14.6m will be
distributed to shareholders through this year's program
Portfolio on 31 March 2014
NAV
% Value % Value per
change[1], change[1], share, NAV, %
March 2014 EUR EURm of NAV
-------------------------------------------------------------------------------
Direct Investments
Melon Fashion Group 0.0% -12.0% 1.97 62.0 22%
Starman 0.0% 0.0% 0.80 25.0 9%
Trev-2 Group 0.0% 0.0% 0.31 9.8 3%
Komercijalna Banka Skopje 0.6% -4.4% 0.20 6.3 2%
-------------------------------------------------------------------------------
0.0% -7.9% 3.28 103.2 36%
Fund Investments
East Capital Deep Value
Fund 0.3% 0.1% 1.47 46.2 16%
East Capital New Markets
Fund -2.1% -5.5% 1.33 41.7 14%
East Capital Russian
Domestic Growth Fund -13.5% -30.0% 0.94 29.6 10%
East Capital Baltic
Property Fund II -0.5% -0.5% 0.65 20.6 7%
East Capital Special
Opportunities Fund II 1.1% 9.0% 0.62 19.4 7%
East Capital Bering
Ukraine Fund R -16.4% -17.2% 0.07 2.1 1%
-------------------------------------------------------------------------------
-3.2% -8.0% 5.08 159.6 55%
Short-term Investments
Short-term investments[2] 0.00 0.1 0%
Cash and cash equivalents 1.09 34.3 12%
-------------------------------------------------------------------------------
1.09 34.4 12%
-------------------------------------------------------------------------------
Total Portfolio 9.46 297.2 103%
Other assets and
liabilities net -0.30 -9.5 -3%
-------------------------------------------------------------------------------
Net Asset Value (NAV) -2.1% -7.4% 9.15 287.7 100%
-------------------------------------------------------------------------------
1) The value change calculation is adjusted for investments and distributions
during the period, i.e. it is the percentage change between the starting value
plus any added investment during the period and the ending value plus any
proceeds from divestments or dividends received during the period
2) Due to the ongoing liquidation of East European Debt Finance, this holding
is no longer separately reported but included in short-term investments as the
remaining assets are limited and are expected to be divested in 2014
Financial reporting calendar
* Monthly Net Asset Value report on the fifth working day after the end of
each month
* Annual General Meeting 2014 on 22 April 2014
* Interim Report, 1 January - 31 March 2014 on 22 May 2014
* Interim Report, 1 January - 30 June 2014 on 21 August 2014
* Interim Report, 1 January - 30 September 2014 on 7 November 2014
Contact information
Catharina Hagberg, Acting CEO. East Capital Explorer, +46 8 505 885 52
Lena Krauss, Head of Investor Relations & Finance, +46 73 988 44 66
About East Capital Explorer
East Capital Explorer AB (publ) is a Swedish investment company, created with
the specific aim of bringing unique investment opportunities in Eastern Europe
to a broader investor base. The company makes direct investments into private
and public companies but investments are also made through East Capital's
private equity, real estate and alternative investment funds. East Capital
Explorer's main investment theme is domestic growth and the Company targets fast
growing sectors such as Retail and Consumer goods, Financials and Real Estate.
East Capital Explorer has appointed East Capital to manage its investment
activities. East Capital Explorer is listed on NASDAQ OMX Stockholm, Mid Cap.
Listing: NASDAQ OMX Stockholm. Mid Cap - Ticker: ECEX - ISIN: SE0002158568 -
Reuters: ECEX.ST - Bloomberg: ECEX SS Equity
This report has not been subject to review by the company's auditors and the
information is disclosed in accordance with the Securities Markets Act, the
Financial Instruments Trading Act and demands made in the exchange rules. It was
released for publication at 08:00 a.m. CET on 7 April 2014.
[HUG#1774890]
East Capital Explorer AB - Net Asset Value (NAV) SEK 82 per share on 31 March 2014
| Source: East Capital Explorer AB
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