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August 2018

August 2018. ATERA at a glance. Main characteristics of ATERA. BSE ticker : 6A6 (former ATERA) Bloomberg ticker: 6A6:BU. Why invest in Bulgarian farmland? ( 1/2). High growth and low volatility. *MSCI EM Eastern Europe index covers large and mid cap companies from the region

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August 2018

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  1. August 2018

  2. ATERA at a glance

  3. Main characteristics of ATERA BSE ticker: 6A6 (former ATERA) Bloomberg ticker:6A6:BU

  4. Why invest in Bulgarian farmland? (1/2) • High growth and low volatility *MSCI EM Eastern Europe index covers large and mid cap companies from the region **SOFIX is the official BSE index, based on the market cap of the 15 most liquid companies Calculations: Advance Terrafund Performance of MSCI EM EE, Bulgarian farmland and SOFIX

  5. Why invest in Bulgarian farmland? (1/2) • BG farmland is seriously undervalued in comparison with the farmland in EU • Low correlation to traditional retail investments • Reliable cash-flow from rents Average prices in European countries in EUR/ha Source: Media publications 2018

  6. 179% land price growth for 10 years Bulgarian farmland market Source: Ministry of Agriculture and Food Supply, System for AgriMarket Information and National Statistical Institute

  7. What is a REIT? Real Estate Investment Trust (REIT) characteristics:

  8. Our organizational structure

  9. Our shareholder’s structure • Number of ordinary shares - 85 110 091 • Total number of shareholders - 1 908 • 22.5% foreign ownership of the market cap Source: Shareholders’ Book as ofJune 30, 2018

  10. Our business model

  11. Our land investments Source: Advance Terrafund as of December 31, 2017

  12. Our farmland by planning regions Total 22 238 ha of agricultural land Source: Advance Terrafund as of June 30, 2018

  13. The most fertile soils are 1, 2, 4 Danube River Danube Valley Legend • Chernozems (Black soils) • Grey forest soils • Planosols • Smolnitza & Cinnamonic forest soils • Cinnamonic forest soils • Brown forest soils • Mountain meadow soils Source: INSTITUTE OF SOIL SCIENCE “N. POUSHKAROV”

  14. Our farmland by regions in ha Source: Advance Terrafund as of June 30, 2018

  15. Our leased land Source: Advance Terrafund as of June 30, 2018 Page 15

  16. Our land banking • Land banking - sale of agricultural land, which is concentrated in one village, while still acquiring separated land plots in other villages • Total acquired farmland since foundation 48 000 ha versus 25 800 ha total sold • Total sales on leasing and deferred payment until now – 2 230 ha Land sales of ATERA Source: Advance Terrafund as of June 30, 2018

  17. Farmland market • Factors: • Lower production of wheat in the USA, the EU and in Russia in 2018 • Higher world prices for wheat, corn, rape seed and barley • Higher yield in Bulgaria in 2018 from rape seed with 30% and lower from wheat with 10% • Expected higher yields in Bulgaria from sunflower and from corn • The oil price has risen with over 50% and it would increase the demand for rape seed and corn for biofuel production • Forecast: • The world grain stores in 2019 – 2.7% lower • World grain and oil seed prices would rise with 3-4%, except for the sunflower • Increased demand for farmland purchases from investors and farmers • Rents increase Page 17

  18. CAP 2021 - 2027 European Commission proposals: • Total EU budget - 1.28 trillion € (1.03 € for 2014-2020) • Increased budget payment from 1% to 1.11% of the GDP of any of the 27 countries • CAP budget reduction with 4.1% up to 365 billion € - 286.2 billion € for direct payments and 78.8 billion € for the AFRD • Increased share of the national financing for the Rural Development (RD) with 10% • The direct payments per ha in BG would shrink with 0.79% (1.6 BGN/ha) • Ceiling for direct payments up to 60 000 € (now it is 150 000 €). For the payments between60 000 and 75 000 € the subsidy would be cut by 25%, in the range 75 000 - 90 000 € the decrease would be with 50%, and between 90 000 и 100 000 € - down with 75%. The real ceiling for direct payment for one farmer would be up to 81 250 €. • Whether farming companies subdivide to smaller companies in order to avoid the ceiling for direct payments, would be controlled by the EU-member’s governments • Big part of the RD Program measures would no longer be financed for free, instead would be replaced with low interest loans or guarantees • Till May 2019 the final EU budget for 2021-2027 should be passed Стр.18

  19. Land portfolio turnover Source: Advance Terrafund

  20. Our key financial indicators • Total raisedcapital since foundation EUR 65.7 mn or 0.77 EUR/share • Total distributed dividendssince foundation EUR 82.8mn or 0.97 EUR/share • Net income distribution for dividends ~100% • No debt financing Source: Advance Terrafund

  21. Dividend yield ATERA earns the second highest dividend yield of all most liquid companies at BSE for the period 2012-2016

  22. Performance of SOFIX and ATERA Since its foundation ATERA totally outperforms SOFIX* *SOFIX is the official BSE index, based on the market cap of the 15 most liquid companies Source: www.Infostock.bg

  23. Attachment ATERA’s balance sheet All amounts are in thousands BGN

  24. Attachment ATERA’s income statement Amounts are in thousands BGN unless indicated otherwise

  25. Attachment GDP growth in CEE countries Moderate GDP growth in Bulgaria compared to the other CEE countries

  26. Attachment Stock exchange markets in CEE Bulgarian market is among the worst performing as at Q2 2018 Source: Karoll Capital Management

  27. Contact Atanas Dimitrov Investor Relation Director Advance Terrafund REIT adimitrov@karoll.bg 1 Zlatovruh Str. 1164 Sofia BULGARIA Tel: +35924008332 www.advanceterrafund.bg This presentation provides only information about the activity and the structure of the Company and do not represent a recommendation or an offer for buying or selling the shares of Advance Terrafund REIT.

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