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November 2017

November 2017. 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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November 2017

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  1. November 2017

  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 2016

  6. 224% 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 - 1 833 • 23% foreign ownership of the market cap Source: Shareholders’ Book as ofSeptember 30, 2017

  10. Our business model

  11. Our land investments Source: Advance Terrafund as of December 31, 2016

  12. Our farmland by planning regions Total 21 563 ha of agricultural land Source: Advance Terrafund as of September 30, 2017

  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 September 30, 2017

  15. Our leased land Source: Advance Terrafund as of October 31, 2017 Page 15

  16. Our land banking • Land banking - sale of agricultural land, which is concentrated or consolidated in one village, while still acquiring separated land plots in other villages • Total acquired farmland since foundation 47 500 ha versus 25 700 ha total sold • Total sales on leasing and deferred payment until now – 2 141 ha Land sales of ATERA Source: Advance Terrafund

  17. Farmland market • Factors: • World grain storage – 268 ml. t. – new record, 4% above 2016 • Russia with historic yield of wheat – 82 ml. t. • Turkey for the first time is a net exporter of wheat • World wheat and corn prices – at low levels • All-time record production of wheat in Bulgaria in 2017 – 5.8 ml. t., average yield is10% higher than in 2016 • Lower production of barley with 14% and of rape seed with 7% • Higher production of sunflower with 9% and of corn with 8% • Higher wheat price in Bulgaria with 12% at harvest time • Lower price of the sunflower with 15% and of the corn with 4% • Forecast: • World grain and oil seed prices will remain at low levels • Weaker interest for farmland purchases from investors • Slight rent price decrease Page 17

  18. CAPafter 2020 • Budget reduction for agriculture in the EU due to Brexit, immigration, security • Implementation of measures for management of the risk and the financial instruments • Bulgaria’s position about the CAP after 2020 • Only improvement of the current structure and the measures, but not reconsidering the basic policy • Bigger flexibility – to respond to the various countries’ expectations • Finalizing the process of the direct payments’ equalizing among the EU members • Restraint of the redistributive payment • EU members to have the opportunity to choose “the green instruments” according to the regional peculiarities and restraints • Simplification of the control over the implementation of the measures in Pillarǀandǁ Стр.18

  19. Land portfolio turnover Source: Advance Terrafund

  20. Our key financial indicators • Total raisedcapital since foundation EUR 65.7 mn • Total distributed dividendssince foundation EUR 78.2mn • Net income distribution for dividends ~100% • No debt financing Source: Advance Terrafund

  21. Dividend yield ATERA earns the highest dividend yield of all most liquid companies at BSE for the period 2011-2015

  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 Modest GDP growth forecast in Bulgaria compared to the other CEE countries

  26. Attachment Stock exchange markets in CEE Bulgarian market slows its growth from 2016 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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