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Investing in Bulgarian Farmland: ATERA Insights

Discover why investing in Bulgarian farmland offers high growth potential and low volatility. ATERA, formerly ATERA, presents key characteristics, land portfolio details, REIT insights, and financial indicators.

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Investing in Bulgarian Farmland: ATERA Insights

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  1. August 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 - 1 831 • 22% foreign ownership of the market cap Source: Shareholders’ Book as ofJune 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 21 802 ha of agricultural land • Average land portfolio price 2459 €/ha Source: Advance Terrafund as of June 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 June 30, 2017

  15. Our leased land Source: Advance Terrafund as of June 30, 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 47 400 ha versus 25 700 ha total sold • In 2017 are sold 920 ha and on deferred payment contracts – 466 ha Land sales of ATERA Source: Advance Terrafund

  17. Farmland market • Factors: • World grain storage – it is expected to exceed the record from 2016 • World wheat and corn prices – down with 1-2% • Wheat production in Bulgaria in 2017 – it is expected a new record ~ 5.8 million tones • Wheat price in Bulgaria in 2017 – 12% higher than in 2016 • Forecast: • World grain and oil seed prices will remain at low levels; higher corn price is expected • Slight farmland sale price decrease • Slight rent price decrease Page 17

  18. Land portfolio turnover Source: Advance Terrafund

  19. 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

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

  21. 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

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

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

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

  25. Attachment Stock exchange markets in CEE Bulgarian market continues its growth from 2016 Source: Karoll Capital Management

  26. 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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