Half Yearly Report

26 August 2014

Raven Russia Limited ("Raven Russia" or the "Company")

2014 Interim Results

Raven Russia today announces its results for the six months ended 30 June 2014

Highlights

· Underlying earnings after tax for the six months increase 37% to $38 million;

· IFRS earnings for the period of $45 million;

· Current annualised NOI of $192 million and portfolio 97% let;

· Cash balance of $188 million;

· Construction of 107,000sqm new space in Moscow completing by the end of the year;

· New space over 50% pre let, generating a further $12.5 million of NOI;

· Basic underlying earnings per share increase 6% to 5.24 cents;

· Adjusted diluted net asset value per share up 5% to $1.32;

· Proposed distribution up 25% to the equivalent of 2.5p per share by way of tender offer buy back of 1 in 30 shares at 75p.

Glyn Hirsch, Chief Executive, said, "We believe we are in a strong, defensive position with high letting levels, extended debt maturities at or below our target cost of finance and substantial, free cash balances. This also gives us a strong platform to exploit opportunities if, as we all hope, the current situation in Ukraine is resolved satisfactorily."

Enquiries

Raven Russia Limited Tel: + 44 (0) 1481 712955

Anton Bilton

Glyn Hirsch

Novella Communications Tel: +44 (0) 203 151 7008

Tim Robertson

Ben Heath

N+1 Singer Tel: +44 (0) 20 7496 3000

Corporate Finance - James Maxwell

Sales - Alan Geeves / James Waterlow

Barclays Bank Plc

Tom Boardman / Tom Macdonald Tel: +44 (0) 20 7623 2323

This announcement contains forward-looking statements that involve risk and uncertainties. The Group's actual results could differ materially from those estimated or anticipated in the forward-looking statements as a result of many factors. Information contained in this announcement relating to the Company should not be relied upon as a guide to future performance.

About Raven Russia

Raven Russia was founded in 2005 to invest in class A warehouse complexes in Russia and lease to Russian and International tenants. Its Ordinary Shares, Preference Shares and Warrants are listed on the Main Market of the London Stock Exchange with a market capitalisation of approximately £530 million. The Company operates out of offices in Guernsey, Moscow and Cyprus and has to date completed a portfolio of circa 1.4 million square metres of Grade "A" warehouses in Moscow, St Petersburg, Rostov-on-Don and Novosibirsk. For further information visit the Company's website: www.ravenrussia.com

Financial Summary

Letting Summary

Completed investment portfolio of 1.4 million sqm, currently 97% let. Letting summary in the 6 months to 30 June 2014:

*In addition to the above, pre let agreements and letters of intent on 64,878sqm have been signed on Moscow space and 2,688sqm in St Petersburg.

Chairman's Message

The six months ended 30 June 2014 have been good operationally but this strong performance has been overshadowed by the current crisis in Ukraine and its implications for Russia.

We have continued to improve our key financials and intend to distribute the equivalent of 2.5p per share (a 25% increase on last year) by way of a tender offer buy back of 1 in 30 shares at 75p per share.

Our portfolio is virtually fully let and there continues to be strong tenant interest on attractive terms in the space we have recently developed.

We are in the process of completing a number of re-financings which are progressing well. This will strengthen our capital base and provide a substantial cash balance.

There is little merit in speculating, in this statement, on the potential impact of current or future sanctions against Russia on our business. So far we have not been directly affected. We will continue working to improve our financial position whilst providing solid returns to our shareholders.

Richard Jewson

Chairman

25 August 2014

Chief Executive's Review

Results

The first half of the year has shown strong results. Underlying earnings before tax increased to $43 million (2013: $31 million) giving basic underlying earnings per share of 5.24 cents (2013: 4.96 cents). Net operating and related income increased to $98 million (2013: $87 million).

IFRS profit before tax for the six months was $58 million (2013: $68 million) after revaluation gains of $20 million (2013: $40 million). The value of our completed investment portfolio has remained stable in the period, the majority of the surplus arising on our construction pipeline.

Our completed portfolio comprises 1.4 million square metres ("sqm") of space and remains 97% let, generating annualised net operating income ("NOI") of $192 million. Fully let, NOI would rise to $197 million.

We are also constructing 107,000sqm of new space at our Noginsk and Nova Riga sites in Moscow, with completion expected by the year end. This space currently has pre let agreements ("PLAs") and letters of intent ("LOIs") on 60,000sqm, which will generate additional NOI of $12.5 million.

Fully diluted adjusted net asset value per share has increased to $1.32 (31 December 2013: $1.26) and cash balances at the half year were $188 million.

Financing

We have continued our strategy of refinancing the more expensive of our debt facilities even though we were comfortable with our maturity profile.

The nearest term maturity we have is the facility secured on the Konstanta office block due at the end of September. We have agreed that this will be rolled over for two and a half years on the existing terms.

The first stage of refinancing the facility secured on our Novosibirsk project was completed with Sberbank prior to the half year. $39 million was drawn on 30 June 2014 for the repayment of the existing facility. This repayment was completed on 2 July 2014 and the second tranche of the new facility of $34million drawn subsequently. This facility has a margin of 5.6% over US LIBOR for the Group and a term of 10 years. US LIBOR has been hedged with a 5 year cap at 200 bps.

We signed agreements on 8 July 2014 to refinance the facility secured on our Noginsk asset, backed by VTB Germany. The full facility is for $180 million, satisfied in two tranches, $140 million, which will be used in part to repay the existing facility of $99 million, and a further $40 million to be drawn on completion of the current pre let construction project in the first quarter of 2015. The new facility has a term of 6 years and a fixed cost to the Group of just below that of the existing facility. The first tranche to repay the existing facility was received on 21 August 2014.

A further $8m of the facility secured on our Klimovsk project was drawn in August, leaving $5m still to draw.

A new facility agreement with UniCredit has been signed in August, to be secured on our Lobnya site. This will be at a margin below the current cost to the Group and will release additional cash of $12 million after repaying the existing facility of $26 million. The facility has a five year term and we aim to draw in the coming month.

We also continue discussions on a refinancing of the new development at Nova Riga and hope to have something in place prior to the year end.

At 30 June 2014, the weighted average term of outstanding debt was 4.4 years, with a total cost to the Group of 7.1%, reducing from 7.4% at 30 June 2013 and 7.2% at the year end.

Current interest bearing loans and borrowings increase on the balance sheet at 30 June 2014 reflecting the repayment of the Novosibirsk facility straddling the half year and the short term maturity of the Konstanta loan at that time.

The finance charge for the period reduced following the conversion of half of our preference shares to equity just prior 31 December 2013.

Foreign Exchange

We continue to hedge foreign exchange cash flows with a mixture of cash holdings in our principal transaction currencies and a forward quarterly Sterling conversion, fixed at $1.6, for our preference coupon, which matures at the end of 2016. A ten per cent depreciation in both Sterling and Rouble to the Dollar has seen a slight increase in overheads and a foreign exchange loss in the income statement from the translation of our non Dollar assets at the balance sheet date.

Provisions

The legacy litigation claim on the Pushkino project continues. 1.45 billion Roubles ($43 million) was placed into court as part of the appeal process just prior to the half year. This is covered by retention monies released by the vendor and the corresponding asset has moved from "Other receivables" in Non-current assets to "Trade and other receivables" in Current assets on the balance sheet.

Cash flow

Our cash balances at 30 June 2014 were $188 million. Net cash from operating activities in the six months was $80 million, construction costs just over $50 million and distributions to shareholders, including preference coupon, $48 million. The amortisation of debt and bank interest payments in the period was covered by the draw of new debt.

Tender Offer

We propose distributing income by way of tender offer buy back again and intend to pay the equivalent of 2.5p per share by way of an offer of 1 in 30 ordinary shares at 75p, an increase of 25% on the comparative period.

Outlook

The uncertainty caused by the situation in Ukraine and the related sanctions has not had a marked impact on our day to day operations. That may change if there is further escalation or the sanctions remain in place for a prolonged period. What the effect on our business might be over the medium to long term is difficult to estimate. The Russian logistics market remains undersupplied and we do not envisage the pressure on current tenancies that one would expect in a more mature market. A lengthy period of Rouble weakness will weigh on US Dollar market rents but development of new space would reduce significantly, acting as a counterbalance. The number of international banks operating in our market would continue to contract and the cost of financing for local banks would rise, hence our drive to push out maturities on favourable terms now.

We believe we are in a strong, defensive position with high letting levels, extended debt maturities at or below our target cost of finance and high, free cash balances. This also gives us a strong platform to exploit opportunities if, as we all hope, the situation in Ukraine is resolved satisfactorily.

Glyn Hirsch

Chief Executive

25 August 2014

Corporate Governance

Principal risks and uncertainties

Internal controls and an effective risk management regime are integral to the Group's continued operation. The assessment of risks faced by the Group is set out in the Risk Report on pages 29 to 34 of the Group's 2013 Annual Report. The prolongation of the situation in Ukraine and the escalation of international sanctions against Russia is the obvious change in risk since the Group's 2013 Annual Report was released. This could have an increasing negative effect on our risk profile, impacting bank financing, the strength of the Rouble, tenant demand and asset valuations. The sanctions are not retrospective and have no impact on the legality of existing contracts or financing arrangements that the Group has entered into prior to sanctions being introduced.

A summary of the principal risks and uncertainties within the context of heightened sanctions is as follows:

Financial Risks

Bank Financing and Costs

A reduction in the number of banks lending in the market, an increased cost of finance for local banks, a reduction in gearing and an inability to borrow in US Dollars from certain banks because of the effect of sanctions.

Foreign Exchange

A continued weakening of the Rouble against the US Dollar leading to pressure on market rents and a reduction on our US denominated earnings and the carrying value of assets. If required to seek funding in alternative currencies to US Dollars an increase in foreign exchange risk would result.

Property Investment and Development

Composition of Portfolio

The portfolio comprises one type of asset with a concentration in the Moscow Region.

Tenant Demand

A slow down in Russian consumer spending is exacerbated by international sanctions with the resultant impact on market rents, lease renewals and asset valuations.

Development Returns

Cost and time overruns, lower rental levels and delays in leasing on development projects can mean target yields are missed and profitability reduced.

Acquisitions

The investment market in Russia continues to mature and legacy issues are common with Russian corporate acquisitions.

Russian Domestic Risk

Legal and Taxation Frameworks

The Russian legal and taxation frameworks are still developing with large volumes of new legislation being open to interpretation and abuse.

Going concern

The financial position of the Group, its cash flows, liquidity and borrowings are described in the Chief Executive's Review and the accompanying financial statements and related notes. During the period the Group had, and continues to hold, substantial cash and short term deposits and has increasing and profitable rental streams. As a consequence, the Directors believe the Group is well placed to manage its business risks.

After making enquiries and examining major areas that could give rise to significant financial exposure, the Board has a reasonable expectation that the Company and the Group have adequate resources to continue its operations for the foreseeable future. Accordingly, the Group continues to adopt the going concern basis in the preparation of the accompanying interim financial statements.

Directors' Responsibility Statement

The Board confirms to the best of its knowledge:

The condensed financial statements have been prepared in accordance with IAS 34 as adopted by the European Union, and that the half year report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.

The names and functions of the Directors of Raven Russia Limited are disclosed in the 2013 Annual Report of the Group.

This responsibility statement was approved by the Board of Directors on the 25 August 2014 and is signed on its behalf by

Mark Sinclair Colin Smith

Chief Financial Officer Chief Operating Officer

INDEPENDENT REVIEW REPORT TO RAVEN RUSSIA LIMITED

We have been engaged by the Company to review the condensed set of financial statements in the Interim Results financial report for the six months ended 30 June 2014 which comprises the Condensed Unaudited Group Income Statement, the Condensed Unaudited Group Statement of Comprehensive Income, the Condensed Unaudited Group Statement of Changes in Equity, the Condensed Unaudited Group Balance Sheet, the Condensed Unaudited Group Cash Flow Statement and the related notes 1 to 15. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The Interim Results financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Results financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Interim Results financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom.

A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the Interim Results financial report for the six months ended 30 June 2014 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Ernst & Young LLP

London

25 August 2014