Annual Report and Financial Statements
for the year ended 31 December 2012
RAVEN RUSSIA LIMITED  Highlights 4
Chairman’s Statement 5
Chief Executive’s Report 6
Property Review 8
Financial Review 10
Directors 12
Directors’ Report 14
Corporate Governance 16
Risk Report 20
Directors’ Remuneration Report 25
Independent Auditor’s Report 30
Group Income Statement 31
Group Statement of Comprehensive Income 32
Group Balance Sheet 33
Group Statement of Changes in Equity 34
Group Cash Flow Statement 35
Notes to the Financial Statements 36
Advisers 73
Contents
3 Highlights
 4
Financial Highlights
• NOI up 49% from $91.7 million to $136.5 million
• Underlying operating profit up 63% from $68.9 million to $112.1 million
• Underlying earnings before tax increases from $8.1 million to $34.7 million
• IFRS operating profit before revaluation of properties up from $57.8 million to $84.4 million
• Operating cash flows increase from $81.6 million to $120.7 million
• Today’s annualised NOI (including PLAs and LOIs on current developments) $179.7 million 
• Year end gearing (post acquisitions) 44.1% (2011: 38.1%)
• Year end cash $191.7 million (2011: $181.8 million)
• Underlying basic EPS 5.30 cents (2011: 0.18 cents)
• Final distribution up 29% to 2.25p per share
• Total distribution up 25% to 3.75p per share (represents a yield of 5.7% at current price)
• Tender offer buy back of 1 in 33 ordinary shares at 75p
• Adjusted fully diluted NAV per share 125 cents (2011:119 cents)
Business Highlights
• Acquisition of Pushkino, a Grade A fully let Moscow warehouse comprising 214,000 sqm with annualised NOI of $25.8 million for
a consideration of $218.1 million, an initial yield of 11.8%
• Acquisition of Sholokhovo, a Grade A fully let Moscow warehouse comprising 45,000 sqm with annualised NOI of $6.1 million for
a consideration of $50.5 million, an initial yield of 12.1%
• Acquisition of 38 hectares of permitted land at Padikovo, Moscow for a consideration of $23 million where we can build 197,000
sqm of space over time
• Issue of 48.4 million new preference shares to institutional investors at a price of 134p (representing a yield of 9%) to assist with
the funding of these acquisitions
Klimovsk Phase 3 The Board of Raven Russia announces the Group’s results for
the year ended 31 December 2012.
The Group is making very good progress. Lettings have
continued in an undersupplied market, finance facility
maturities have been extended and important earnings
enhancing acquisitions made. It has been a busy and fulfilling
year.
Net rental and related income (“NOI”) for the year increased by
49% from $91.7 million to $136.5 million. Underlying operating
profit increased by 63% from $68.9 million to $112.1 million
and underlying earnings before taxation increased significantly
from $8.1 million to $34.7 million.
Operating cashflow increased 47.9% from $81.6 million to
$120.7 million.
Significant acquisitions added two fully let properties in
Moscow to the portfolio, with 259,000 square metres (“sqm”)
of space, increasing NOI in the period by $15.1 million. They
add $31.9 million to our annualised NOI. The acquisitions were
partly financed by an issue of 48.4 million preference shares at
134 pence. Even before taking account of acquisitions,
progress has been excellent.
After a revaluation surplus of $69.3 million (2011: $153 million),
IFRS operating profit was $148.8 million (2011: $200.3 million).
Underlying basic earnings per share increased from 0.18 cents
to 5.30 cents. Adjusted, fully diluted net asset value per share
increased from 119 cents to 125 cents.
Annualised NOI is $170.1 million today. With pre let
agreements (“PLAs”) and letters of intent (“LOIs”), including
those on additional phases of construction at our Noginsk and
Klimovsk projects, this increases to $179.7 million. Fully let,
annualised NOI will be $190.4 million.
We have maintained our balance sheet strength at the year
end. Following the acquisitions in the year, gearing has
increased to 44.1% (2011: 38.1%) as calculated in note 35 to
the financial statements. Our year end cash balance stood at
$191.7 million (2011: $181.8 million).
Our final distribution of 2.25 pence per share is a 29%
increase over the final distribution of 1.75 pence declared last
year and means a 25% increase in total distribution for the
year from 3 pence to 3.75 pence per share. This represents a
yield of 5.7% on the current share price.
As our shares continue to trade at a significant discount to
NAV we will be distributing in the form of a tender offer
buy-back of 1 in 33 ordinary shares at 75 pence. The tender
offer will be subject to the approval of shareholders and a
circular setting out full details will be posted shortly. It is
expected that the tender offer will be completed in May 2013.
I would like to take this opportunity to thank our shareholders,
employees and advisers for their support during a very busy year.
Richard Jewson 
Chairman
10 March 2013
Chairman’s Statement
5 The year to 31 December 2012 has been very active.
Alongside continuing lettings we have made some significant
acquisitions, continued our construction programme in
Moscow, prolonged near term debt maturities and raised
further preference share capital.
The same market dynamics we saw in 2011 continued through
2012 and into 2013. The key factors for us have been strong
tenant demand and limited new supply.
The portfolio is virtually fully let and rents have reached
$135 per sqm in Moscow. New leases are being signed for
5 to 10 year terms with high quality tenants.
Our completed investment portfolio comprises 1.3 million sqm
of completed Grade A warehousing. It currently produces NOI
of $170.1 million per annum from a group of high quality
tenants. PLAs and LOIs increase that to $175.5 million and it
will reach $179.5 million when fully let. At the year end, these
properties had a gross value of $1,502 million, equating to a
fully let yield of 11.9 % and a capital value of $1,155 per sqm.
We are well advanced on the construction of new phases of
48,000 sqm at Klimovsk and 36,000 sqm at Noginsk and
expect completion at the end of the second quarter 2013.
These already have signed PLAs and LOIs for $4.1 million and
will add $10.9 million in total when fully let, increasing the
potential annualised NOI from the portfolio to $190.4 million.
During the year, we acquired assets at Pushkino and
Sholokhovo in Moscow. Grade A warehouses, fully let to strong
tenants with current initial yields of 11.8% and 12.1%
respectively. After deducting the cost of bank interest and
preference dividends which financed the acquisitions, they
contribute $11 million to profits on an annualised basis. They
contributed $15.1 million to NOI in the second half of 2012.
Chief Executive’s Report
6
Pushkino 7
Chief Executive’s Report – continued
We also acquired 38 hectares of land at Padikova on the Nova
Riga highway to the north west of Moscow. Over time, we can
build 197,000 sqm there. 
In addition to the projects and land above, we have sufficient
permitted Moscow land to add at least another 150,000 sqm
to the portfolio in due course.
A potential annualised rent roll of $190.4 million will give a
strong income base for a growing distribution per share. This
remains our main financial objective. If we can demonstrate a
clear record of growing distributions going forward, that will go
a long way to demonstrating the real value of our assets.
A big question for us is how much to accelerate development
beyond our existing organic plan of 50,000 to 100,000 sqm
per annum. The direct property market would suggest
aggressive expansion but we don't want to jeopardize our now
solid investment income foundation and we want to grow
distributions per share. The main constraint is funding.
I will also take this opportunity to reiterate our policy on tender
offer buy backs, repeating what I said at the half year. We are
committed to tender offer buy-backs whilst this can be
achieved at discounts to NAV. In the medium to long-term this
will add value to shareholders. A shareholder tendering shares
will receive cash equivalent to the quantum of a dividend and,
assuming the tender offer is fully taken up, will retain the same
percentage shareholding. Even though the number of shares
held reduces, the percentage holding of the shareholder
remains the same and NAV per share will rise as shares are
cancelled at a discount to NAV.
The perception of Russia is that it is high risk and volatile. It is
our job to demonstrate it is not. We hope to do this by
producing steadily increasing distributions to shareholders.
Glyn Hirsch
Chief Executive Officer
10 March 2013 2012 was a year of development, acquisition and letting across
the portfolio. All of these activities contributing to either an
immediate increase in income or to the future potential income
of the portfolio, through asset management and development.
Tenant demand in 2012 was once again strong, in the
regions as well as Moscow and as a result we completed
124,000 sqm (1.3 million square feet) of new lettings,
generating an additional $16.4 million of annualised rental
income and allowing full operating cost recovery on the
space. With the maturity of our portfolio, we are now
becoming an active asset manager and in the year we
regeared or renewed leases on 192,000 sqm with an annual
rental uplift of $3.6 million.
In late 2011 we identified a potential structural under supply in
the Moscow warehouse market and we focussed on increasing
our exposure there. Taking advantage of strong tenant demand
and what we perceived as a pricing anomaly on a number of
assets offered for sale, we acquired two further Moscow
properties, Pushkino and Sholokhovo, comprising a total of
259,000 sqm, for $268.6 million. 
Our portfolio in Moscow now totals 883,000 sqm, representing
69% of our properties. This will increase to 967,000 sqm
during 2013 with the completion of the new phases at Noginsk
and Klimovsk.
The new acquisitions at Pushkino and Sholokhovo produce
$31.9 million of annualised NOI. We believe Pushkino is
particularly under rented with an average warehouse rent of
only $122 per sqm compared to market rents of around
$135 in Moscow.
The acquisition of the Padikovo land on the Nova Riga highway
to the north west of Moscow for $23 million will, subject to
receipt of the appropriate consents and development finance,
potentially add another 197,000 sqm to our Moscow holdings
over the next few years. We expect to be in a position to start
on site in the second quarter of 2013, once detailed planning
consent is received. It is our current intention to build, subject
to funding, two phases of around 100,000 sqm each for
delivery in 2014 and 2015.
Our investment properties were valued by Jones Lang LaSalle
(‘JLL’) at the period end, in accordance with the RICS
Valuation and Appraisal guidelines, and are carried at an
aggregate gross value of $1.5 billion. This resulted in an
increase of $72.9 million in portfolio value, reflecting our
progress in leasing and asset management. This year end
valuation reflects an average yield of 11.9% on a fully let
portfolio NOI of $179.7 million (not including phases under
construction).
8
Property Review
Noginsk Phase 2 Property Review – continued
9
Investment Portfolio
In Moscow, excluding the space under construction at Noginsk
and Klimovsk, we have eight completed projects totalling
883,000 sqm, producing an annualised income of
$120.3 million at the year end. These properties are virtually
fully let. During the year we let 55,000 sqm in Moscow
increasing our income by $8.5 million per annum. Rents have
remained around $130-$135 per sqm for Grade A warehousing
throughout the year. 
At Krekshino, we took the opportunity of a lease expiry to
regear all of NLC/Itella’s leases, extending the term until 2019
and increasing the rent by circa 25%, contributing to an uplift in
value of 6%.
At Noginsk, we are on site building 36,000 sqm for delivery in
the second quarter of 2013. We expect this project to deliver a
marginal yield on cost of 15.9%. We are currently in discussion
with a number of tenants. At Klimovsk, we aim to deliver
48,000 sqm by the second quarter of 2013. We have already
signed one PLA for 18,000 sqm and an LOI for 10,000 sqm,
and we have interest in the remaining space. This project will
produce a marginal yield on cost of 16.4% on current
estimates.
In St Petersburg, the market has improved and we leased
44,700 sqm to third parties during the year and our
operating subsidiary, Roslogistics, increased its space by a
further 15,000 sqm to meet new client demand. We now
have only 14,500 sqm of vacant space available, 6,000 sqm
of which is subject to LOIs and we expect the remainder to
let in the first half of 2013. Rents have improved and now
stand at $115-$120 per sqm. 
Our project in Rostov is now 100% let. We are seeking prelets
and development finance to allow us to start an additional
15,000 sqm of development on the Phase 2 land we own.
In Novosibirsk, we let 18,600 sqm during the year although net
absorption was only 2,400 sqm as a result of lease expiries
and reduction in Roslogistics space. During the last three years
we have let an average of 20,650 sqm per annum. With only
40,000 sqm vacant today and LOIs signed on 18,000 sqm of
that space, we anticipate being fully let in the next 12 months.
Land Bank
We have started work on 84,000 sqm of our land bank at
Klimovsk and Noginsk. Subject to detailed planning and
finance we will start on site at Padikovo, Nova Riga in the
second quarter of 2013, with the aim of delivering around
100,000 sqm by the middle of 2014. 
At Noginsk we still hold another 32 ha on which we can build
over 150,000 sqm in the future.
We have received a number of approaches from prospective
tenants to develop out elements of our regional land bank over
the year. Unfortunately, the attractions of developing in
Moscow, where tenant demand is more predictable and
valuations stronger, mean these potential projects elsewhere
would deliver less attractive returns. With this in mind, we have
reviewed the carrying value of our regional land bank. As it has
become unlikely that we will start any development in Belarus
or on those sites held on short term development leaseholds,
we have written down the carrying value of these properties by
$15.7 million.
The Market
Tenant demand is still driving the market and JLL estimate that
take up in 2012 was 1.3 million sqm in Moscow alone. The
vacancy rate for Grade A warehouse stood at 0.65% at the
year end. In St Petersburg the vacancy rate has fallen to 2.2%.
For 2013 JLL forecast new supply of Grade A warehouse
space in Moscow of circa 1 million sqm with potential demand
ahead of that at 1.2 million sqm. The key trend in the market is
the increase in build to suit for sale deals which accounted for
26% of total take up in 2012; in 2013 this is expected to rise to
33% by JLL. Internet retail demand accounted for 13% of take
up in 2012.
These statistics suggest we are operating in one of the only
places in Europe where retailers are posting double digit sales
growth and this is driving continued demand for warehousing
and distribution space. We are positive about the market and
the portfolio looks increasingly reversionary.
The combination of rental growth, further development and
opportunities for active portfolio management give us
confidence for the future. Financial Review
10
This set of financial results benefits from a full year of high
occupancy in the existing portfolio, the introduction of the
second phase at Klimovsk and six months of the acquisitions
at Pushkino and Sholokhovo.
Income
Net rental and related income increased from $91.7 million to
$136.5 million in the 12 months to 31 December 2012.
Our core investment portfolio generated $130.8 million of NOI
(2011: $80.9 million) from third party tenants, the completion of
the second phase at Klimovsk at the beginning of the year
adding $7.2 million and a further $15.1 million from acquisitions.
The cost of servicing vacant space reduced from $13.7 million
to $9.0 million.
Roslogistics continues to improve efficiency and profitability.
It now operates out of 86,000 sqm of our portfolio after
increasing its presence in St Petersburg and reducing in
Novosibirsk. The business contributed $13.4 million (2011:
$10.7 million) to NOI and $10.2 million to Group profit before
tax in the year (2011: $6 million). 
Raven Mount continues to be a mixed bag. The joint venture at
the Lakes is performing well but the residential stock that
remains in the UK is slow to move. Total gross sales in the year
were $23.4 million (2011: $13.9 million) on stock of
$21.0 million (2011: $14.0 million). However, as explained in our
half year results, we have also written down our UK residential
stock by $9.4 million to accelerate sales and cash generation.
We now have $13.8 million of completed UK residential stock
(2011: $30.6 million) remaining on balance sheet.
Overheads
Overheads supporting the core investment portfolio were
$15.3 million (2011: $12.8 million). Central overheads were
$8.5 million (2011: $6.1 million) and Raven Mount and
Roslogistics had overheads of $2.5 million (2011: $3.0 million)
and $3.2 million (2011: $3.0 million) respectively. The higher
overheads reflect an increase in cash bonuses paid in the year
and a small step up in costs to support the construction
programme.
With the introduction of the new, long term incentive scheme
for executives and senior management during the year
(note 32 to the financial statements) we are required to
estimate the total charge to the income statement over the
3 year period of the scheme. This has resulted in a charge to
the income statement of $12.2 million in the current year,
which is then immediately reversed through reserves. In the
coming two years any additional charge or credit will reflect
any change in actual awards made or change in estimated
charge. The charge for actual shares vesting in the year was
$4.4 million (2011: $6.1 million) which is again reversed
through reserves. The impact on NAV per share calculation is
limited to the release or potential release of shares from
treasury to satisfy any share allocation.
Earnings
Our key earnings measurement is “Underlying Earnings” as
defined in note 9 to the financial statements. This shows the
earnings derived from our operations before capital items,
including mark to market valuations and best shows the ability
of operations to produce covered dividends. Our underlying
earnings before tax increased significantly in the year, from
$8.1 million to $34.7 million giving basic underlying earnings
per share of 5.30 cents (2011: 0.18 cents).
Financing
The Group’s financing structure has adapted in the year to
incorporate the acquisitions made and the construction
programme being undertaken, introducing new preference
shares and funding facilities.
To fund the equity for the acquisitions of the asset owning
subsidiaries at Pushkino and Sholokhovo, we issued an
additional tranche of 48.4 million of preference shares in June
2012 at an issue price of 134p.
Sholokhovo 11
Financial Review – continued 
A new facility of $129 million, secured on the Pushkino Logistics
Park was drawn in June on a five year term at a margin cost to
the Group of 5.85% over a five year swap of 1.08%.
The Sholokhovo subsidiary was purchased with an existing fully
drawn debt facility of $21 million, a remaining term of nine
years and a margin of 6.45% over US LIBOR.
The Group’s construction programme is being funded by a
mixture of construction finance and refinancing of completed
projects.
An unsecured construction loan of $30 million was drawn from
Deutsche Investitions-Und Entwicklungsgesellschaft MBH
(DEG) Bank. The facility has an eight year term and a 7.9%
margin over US LIBOR.
US$44 million has been drawn from a $47.5 million facility
secured upon the second phase of the Klimovsk project. This
facility has a margin of 7% over US LIBOR and a 10 year term.
The remaining undrawn balance is available until 24 April 2013.
A further $38 million was drawn under the facility secured on
the Shushari project in St Petersburg.
Near term maturities of existing facilities have been or are in the
process of being extended.
In November, the Group agreed a two year extension to the
$41 million loan facility secured on the Constanta office
property at a cost to the Group of 6.0% over US LIBOR.
Since the year end, the Group has entered into a $100 million
facility agreement to refinance the existing $78 million loan
secured on the Krekshino logistics park. Completion of the
remaining conditions precedent is expected in the second
quarter of this year and the existing loan has been extended
until 30 June 2013 to allow completion.
Finally, the Group repaid in full the debt facilities secured on the
Southern project, the Group facility provided by Royal Bank of
Scotland International and the Barclays Bank facility secured
on the Group’s UK inventory. Repayments under these facilities
totalled $24.6 million.
Together with the hedging arrangements described below, this
leaves the Group with 194 million preference shares at an annual
cost of 12% and $776 million of senior debt at a total weighted
average cost of debt to the Group of 7.3% (2011: 7.1%).
At 31 December 2012 the Group had undrawn loan facilities
available of $3.5 million (2011: $38 million).
Hedging
The Group has entered into hedging arrangements in respect
of its interest rate exposure. $422 million (2011: $335 million) of
Group bank borrowings have been fixed with three years
remaining (2011: three years) at a weighted average swap rate
of 1.86% (2011: 2.38%) and $225 million (2011: $186 million)
capped at 1.93% (2011: 2.69%) for three years (2011:
four years).
The principal foreign exchange risk to the Group relates to the
funding of the preference share coupon in Sterling. This risk
has been capped for the three years to 18 December 2015 at
a USD/GBP exchange rate of 1.60.
We will be looking to extend our interest hedging for the most
recent financing facilities drawn and continue a three year rolling
hedge on our Sterling exposure on the preference share coupon.
Balance Sheet
The balance sheet reflects the impact of the acquisitions made
in the year, assets boosted by the inclusion of the new
properties and liabilities by the related debt facilities and
preference share issue. Debtors and creditors also reflect the
on-going litigation in Toros, the company which owns the
Pushkino project, the defence of which is being conducted by
the previous owner and for which we have been indemnified.
Details of this case and the indemnity were given in the
shareholder circular issued on 1 May 2012 and the claim is for
Roubles 827.4 million plus interest.
Cashflow
Operating cash flows track our portfolio letting success. These
have increased from $33 million in 2010, to $82 million in 2011
and to $121 million in the year to 31 December 2012. The
larger investing and financing cash flows relate to the
acquisitions in the year. Distributions to ordinary and preference
shareholders increased to $63 million (2011: $51 million).
Taxation
The majority of the tax charge for the year of $33.4 million (2011:
$40.6 million) relates to deferred tax movements. $20.9 million
(2011: $35.3 million) is the deferred tax liability on property
revaluations and depreciation and $12.3 million (2011: nil) is the
reduction in deferred tax assets due to unrealised foreign
exchange movements in our Russian subsidiaries. The actual tax
paid in the year totalled $3.5 million (2011: $2.7 million).
Net Asset Value and Distributions
Net assets increase to $689.0 million (2011: $668.8 million)
following a revaluation surplus of $46.1 million (2011: $129.6
million) after deferred tax and after an impairment of Russian
regional land bank and residential UK stock of $26 million. We
distributed the equivalent of 1.5p per share by way of a tender
offer buy back in the year and intend to distribute a further
2.25p in the same manner as a final distribution.
Mark Sinclair
Chief Financial Officer
10 March 2013 12
Richard Jewson (aged 68)
Non-Executive Chairman
Richard Jewson joined Jewson, the timber and building merchant, in 1965 becoming the Managing Director, then Chairman of its
holding group, Meyer International plc from which he retired in 1993. Since then he has served as non-executive director and chairman
of a number of public companies. He retired in 2004 from 10 years as Chairman of Savills plc and in 2005 from 14 years as a
non-executive Director and deputy Chairman of Anglian Water plc. He is currently Chairman of Archant Ltd, and a non-executive
director of Temple Bar Investment Trust plc, Grafton Group plc and other unquoted companies. 
He is Chairman of the Nominations Committee and a member of the Remuneration Committee.
Anton Bilton (aged 48)
Executive Deputy Chairman
Anton Bilton is an economics graduate from The City University in London. Anton was the founder of The Raven Group. He has also
been a founder and director of three other companies that have floated on AIM.
He is a member of the Nominations Committee.
Glyn Hirsch (aged 51)
Chief Executive Officer
Glyn Hirsch, a Guernsey resident, qualified as a Chartered Accountant with Peat, Marwick Mitchell & Co in 1985. Until 1995, he
worked in the corporate finance department of UBS (formerly Phillips & Drew) latterly as an Executive Director specialising in UK
smaller companies. From 1995 until 2001, he was Chief Executive of CLS Holdings plc, the listed property investment company, a
former Director of Citadel Holdings plc, the specialist French property investor and former Chairman of Property Fund Management plc,
the listed property fund management business. Glyn is also a non-executive director of Lion Trust Asset Management plc.
Mark Sinclair (aged 47)
Chief Financial Officer
Mark Sinclair, a Guernsey resident, is a chartered accountant, and spent 18 years at BDO Stoy Hayward, a leading professional
services firm in the UK. He was a partner in the London real estate group responsible for a portfolio of large property companies, both
listed and private. He joined Raven Mount in June 2006 as Finance Director of Raven Russia Property Management Ltd, the former
Property Adviser to the Company and joined the Board of Raven Russia in March 2009.
Colin Smith (aged 43)
Chief Operating Officer
Colin Smith, a Guernsey resident, qualified as a Chartered Accountant with Stoy Hayward. Prior to joining the Company, he was a
director in the audit and assurance division of the chartered accountant practice of BDO in Guernsey, having joined BDO in 1994.
Colin has also been a non-executive director of a number of offshore investment funds and companies.
Directors 13
Directors – continued 
Christopher Sherwell (aged 65)
Senior Independent Non-Executive Director
Christopher Sherwell is a Guernsey resident and a former managing director of Schroders in the Channel Islands. Before joining
Schroders, he was Far East Regional Strategist in London and Hong Kong for Smith New Court Securities and prior to that spent
15 years as a journalist much of them as a foreign correspondent for the Financial Times. He has considerable public company
experience and acts as a non executive director on a number of publicly listed investment companies including Baker Steel Resources
Trust Ltd and the Prospect Japan Fund Ltd.
He is Chairman of the Remuneration Committee and a member of the Audit and Nominations Committees.
Stephen Coe (aged 47)
Independent Non-Executive Director
Stephen Coe BSc, FCA, a resident of Guernsey, is self employed providing executive and non-executive services to public and
private clients. His current public directorships include European Real Estate Investment Trust Ltd, Kolar Gold Ltd and Trinity Capital
Ltd where he acts as a non-executive director and chairman of the audit committee and Black Sea Property Fund Ltd where he acts
as a non-executive director. Private clients include investment funds and a captive insurer. From 2003 to 2006, he was Managing
Director of Investec Trust (Guernsey) Ltd and Investec Administration Services Ltd, responsible for private client and institutional
structures. Between 1997 and 2003 he was a director of Bachmann Trust Company Ltd and previously he worked with Price
Waterhouse specialising in financial services.
He is Chairman of the Audit Committee and a member of the Remuneration Committee.
David Moore (aged 52)
Independent Non-Executive Director
David Moore is a resident of Guernsey. He is an advocate of the Royal Court of Guernsey and a consultant at Bedell Group in
Guernsey. He is a former partner of Guernsey law firm Mourant Ozannes where he had practiced since 1993 and before that spent
10 years practising in the City of London, predominantly with Ashurst Morris Crisp. He specialises in corporate and financial matters
and is a non-executive director of a number of investment and insurance management companies, investment and insurance
companies including Standard Life Investments Property Income Trust Ltd of which he is non-executive chairman.
He is a member of the Audit and Remuneration Committees. 14
The Directors present their report and the audited financial statements of the Group for the year ended
31 December 2012.
Principal activities
The Company is a Guernsey registered company and during the year carried on business as a property investment company.
Business review
A review of the business during the year is contained in the Chairman’s Statement, Chief Executive’s Report, Property Review and
Financial Review.
Results and dividends
The results for the year are set out in the attached financial statements.
The Company undertook a tender offer as an interim distribution for 1 in every 49 shares at 75p, equivalent to a dividend of 1.5p per
share (2011: Tender offer 1 share in every 46 at 58p). A final distribution of 2.25p by way of a tender offer of 1 share in every 33 at 75p
is being proposed at the Annual General Meeting (2011: Tender offer 1 share in every 40 at 70p).
Directors
The Directors, who served throughout the year, were as follows:
Richard Jewson (Non-executive Chairman)
Anton Bilton (Executive Deputy Chairman) 
Glyn Hirsch (Chief Executive Officer) 
Mark Sinclair (Chief Financial Officer) 
Colin Smith (Chief Operating Officer) 
Christopher Sherwell (Senior Independent Non-Executive Director) 
Stephen Coe (Independent Non-Executive Director)
David Moore (Independent Non-Executive Director)
Following the provisions of the UK Corporate Governance Code applicable to larger companies, all the Directors shall be subject to
annual re-appointment by Shareholders at the Annual General Meetings of the Company.
Details of the Directors’ remuneration and shareholdings are included within the Remuneration Report.
Substantial shareholdings
The Company has been notified of shareholders, other than directors, holding 3% or more of the ordinary shares as follows:
Number held Percentage Number held Percentage
Ordinary Shares of £0.01 31 December of share 28 February of share
Name of holder 2012 capital 2013 capital
Invesco Perpetual 170,896,092 29.00 170,896,092 29.00
Schroder Investment Management 81,023,340 13.75 82,088,474 13.93
Mackenzie Cundill Investment Management 53,452,292 9.07 53,452,292 9.07
JO Hambro Capital Management 37,769,883 6.41 41,894,883 7.11
Legal & General Investment Management 18,146,728 3.08 18,048,063 3.06
F&C Asset Management Limited 22,415,869 3.80 16,464,320 2.79
Auditors
Ernst & Young LLP have expressed their willingness to continue in office and a resolution to re-appoint them will be proposed at the
forthcoming Annual General Meeting.
Directors’ Report 15
Directors’ Report – continued
Going Concern
The financial position of the Group, its cash flows, liquidity position and borrowings are described in the Financial Review and the notes
to the accompanying financial statements. In addition, in note 35 there is a description of the Group’s objectives and policies for
managing its capital, its financial instruments and hedging activities and its exposure to credit and liquidity risk.
During the year the Group had and continues to hold substantial cash and short term deposits. These were supplemented by the
increasing and profitable rental income streams of the operating activities of the Group, along with the acquisitions of two fully let
income producing assets within the year. The Group extended the average time to maturity of its banking facilities to beyond four
years. It also issued new preference shares to the value of £64.9 million in the year. 
After making appropriate enquiries and examining sensitivities 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 operations for the foreseeable future.
Accordingly, the Group continues to adopt the going concern basis in preparation of these financial statements.
Directors’ responsibilities 
Guernsey company law requires the Directors to prepare financial statements for each financial year, which give a true and fair view of
the state of affairs of the Group at the end of the year and of the profit or loss of the Group for that period. In preparing those financial
statements, the Directors are required to:
• Select suitable accounting policies and then apply them consistently;
• Make judgements and estimates that are reasonable and prudent;
• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in
the financial statements; and
• Prepare the financial statements on the going concern basis unless it is inappropriate to assume that the Group will continue in
business.
The Directors confirm that they have complied with the above requirements in preparing the financial statements.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the Group and to enable them to ensure that the financial statements comply with the Companies (Guernsey) Law, 2008
and IFRS as adopted by the EU. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.
So far as each of the Directors is aware, there is no relevant audit information of which the Company’s auditor is unaware and each
has taken all the steps he ought to have taken as a Director to make himself aware of any relevant audit information and to establish
that the Company’s auditor is aware of that information.
Directors’ Responsibility Statement
The Board confirms to the best of its knowledge:
The financial statements, prepared in accordance with International Financial Reporting Standards as adopted by the EU, give a true
and fair view of the assets, liabilities, financial position and profit and loss of the Company and the undertakings included in the
consolidation taken as a whole; and
The management report, which is incorporated into the Directors’ Report, includes a fair review of the development and performance
of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face.
This responsibility statement was approved by the Board of Directors on 10 March 2013 and is signed on its behalf by:
Mark Sinclair Colin Smith
Chief Financial Officer Chief Operating Officer Corporate Governance
16
Chairman’s foreword
This year has seen the continued development of the Group
into a mature property investment business. As explained
earlier, the acquisition of two income producing assets
increased our portfolio’s leasable area by 25%, we progress
our construction programme, organically growing our portfolio
by 50-100,000 sqm each year (4-8% of the current portfolio by
size). Along with developments in UK Corporate Governance
this has meant a busy year for your Board and its committees.
We remain committed to the highest standards of governance
and this report sets out our approach.
Richard Jewson
10 March 2013
The Financial Services Authority’s listing rules require the
Company to explain how it has applied the Main Principles of
Section 1 of the UK Corporate Governance Code (the ‘Code’).
This report, together with the Directors’ and Remuneration
Reports, set out how the Company has done so. For the
financial year ended 31 December 2012, the Company has
been regarded as a ‘smaller company’ for the purposes of the
Code. In the opinion of the Board, the Company has complied
fully with the Main and Supporting Principles of the Code
throughout the financial year. Copies of the Code can be
obtained free of charge from the Financial Reporting Council’s
website (www.frc.org.uk). 
The Role of the Board
The Board is responsible for the governance processes within the
Group whilst monitoring the performance of the Executives to
whom it delegates management responsibility for the Group. The
Board has approved a formal schedule of matters reserved solely
for its consideration as outlined below and updates this schedule
as necessary. Matters reserved for the board include:
• Development of strategy;
• Capital structure and dividend policy;
• Financial reporting, including approval of results;
• Internal control and risk management;
• Corporate governance; and 
• Material transactions.
The Board has delegated a number of its responsibilities through
its Audit, Remuneration and Nominations Committees. Terms of
reference for each of these committees are reviewed periodically
by the Board, and are made available on the Company’s
website, www.ravenrussia.com. An outline of each of the
Committees’ functions and responsibilities is set out below.
Board composition
During the year, the board comprised eight Directors:
Non-Executive Chairman, Richard Jewson; four Executive
Directors; and three Non-Executive Directors. The Board
considers all of the Non-Executive Directors to be
independent for the purposes of the Code as further
explained below. The Board consider the Chairman to be
independent. The balance of skills and expertise of the
Board ensures that no individual or group of individuals
dominate the Board’s decision making, allowing for
independent challenge and rigour to the Board’s
deliberations. The roles of the individual Directors are
explained further below.
There is a defined division of the responsibilities between the
Chairman and Chief Executive. The Chairman is primarily
responsible for the effective working of the Board and the
Chief Executive for the operational management of the
business. This includes development of the Group strategy
and business model, the presentation of this to the Board
and ultimately its implementation across the Group. Terms of
reference delineating a clear division of responsibilities are in
place and are reviewed on a regular basis. 
Christopher Sherwell is the Senior Independent Director of
the Company.
David Moore is a consultant for the Bedell Group in
Guernsey and is a former partner of Mourant Ozannes,
Advocates and Notaries Public. The Group has used
Mourant Ozannes for legal engagements and Notary services
but to avoid any possible conflict of interest or challenge to
the independence of Mr Moore, the Group ceased using
Mourant Ozannes other than for notary services. The Group
did not incur any fees due to Mourant Ozannes for the year
ended 31 December 2012. The Board considers Mr Moore
to be independent for the purposes of the Code.
Biographies for each director are included elsewhere in this
Annual Report.
The full Board meets at least six times a year to consider
general matters affecting the Company and otherwise as
required. Committee meetings comprising any two or more
Directors meet on an ad hoc basis to consider transactional
and related matters concerning the Company’s business.
During 2012, there were 26 such committee meetings.
Meetings are generally held in Guernsey at the head office,
however at least once a year the Board will hold a meeting in
Russia to review the Group’s operations and meet local
management.  Corporate Governance – continued
17
Attendance at Board or Committee meetings during the year to 31 December 2012
(where ‘N/A’ is shown, the Director listed is not a member of the Committee)
Audit Nominations Remuneration
Board Committee Committee Committee
R Jewson 8/8 N/A 1/1 2/2
A Bilton 8/8 N/A 1/1 N/A
G Hirsch 8/8 N/A N/A N/A
M Sinclair 8/8 N/A N/A N/A
C Smith 8/8 N/A N/A N/A
S Coe 7/8 4/4 N/A 2/2
C Sherwell 8/8 4/4 1/1 2/2
D Moore
(1)
8/8 4/4 N/A 0/0
Number of meetings during the year 8 4 1 2
(1) David Moore joined the Remuneration Committee on 20 November 2012. The Remuneration Committee did not meet between 20 November 2012
and 31 December 2012.
Board performance evaluation
The Board undertakes annual performance evaluations of its
own and its Committees’ activities. These are led by the
Chairman and where dealing with his own performance, by the
Senior Independent Director.
The performance evaluations during 2012 were facilitated by
the Institute of Directors and took the form of a questionnaire
and production of a report. The findings of the report were
discussed in detail by the Board and it was concluded that the
performance of the Board, its Committees and individual
Directors were effective and the Board had the necessary
balance of skills and expertise required to direct the business.
The Board and Nominations Committee annually consider the
composition of the Board and its Committees with reference to
the Group’s needs and also the requirements of the Code. In
accordance with the Code, all Directors will be put forward for
re-election each year at the Annual General Meeting. Having
considered the balance of skills, expertise and performance of
the Board, its committees and individual Directors, the Board
recommends each of the Directors for re-appointment at the
Annual General Meeting.
Board Committees
The Board has established Audit, Remuneration and
Nominations Committees. These Committees undertake
specific activities through delegated authority from the Board.
Terms of reference for each Committee have been agreed and
are reviewed on a regular basis by the Board. The terms of
reference for each Committee can be obtained from the
Company’s website. 
Audit Committee
The Audit Committee comprises David Moore, Christopher
Sherwell and Stephen Coe, (Chairman), who is considered to
have recent and relevant financial experience. The Committee
meets at least twice a year. There are a number of regular
attendees at meetings of the Audit Committee, including other
members of the Board, senior management and the Group’s
external auditors. The Chairman of the Committee also meets
with external auditors without management present.
The Committee is responsible for ensuring that the financial
performance of the Group is properly reported and monitored.
The Committee reviews the annual and interim accounts, the
accounting policies of the Group and key areas of accounting
judgement, management information statements, financial
To enable the Board to discharge its duties, all Directors
receive appropriate and timely information, including briefing
papers distributed in advance of any board meeting and
regular management information. All the Directors are
entitled to have access to independent professional advice at
the Company’s expense where they deem it necessary to
discharge their responsibilities as Directors. On appointment,
a Director receives advice from the Company’s financial and
other professional advisers as to the affairs of the Company
and their responsibilities, an estimation of time commitments
necessary to undertake the role and a commitment to
receive other such training as may be appropriate. Corporate Governance – continued
18
announcements, internal control systems, risk management,
and the continuing appointment of the auditors. It also
monitors whistle blowing policy and procedures over fraud and
bribery.
Due to its size, structure and the nature of its activities, the
Group does not have an internal audit function. During the
year, the Audit Committee again considered the need for an
internal audit function, whether a bespoke function facilitated
by internal resources, or using an outsourced model with the
assistance of the Group’s advisors. The Committee concluded
that there was no need for a separate internal audit function at
this time but would continue to keep this matter under review.
During the year, the Committee has considered the
appointment, compensation, performance and independence
of the Group’s auditor, Ernst & Young LLP.
Ernst & Young LLP may also provide non-audit services to the
Group where they are determined to be best placed to provide
the particular service and there is a commercial advantage to
the Group in Ernst & Young LLP providing the service. The
non-audit services provided are typically assurance related
services, tax advisory or transaction advisory services. The
policy for the provision of non-audit services is reviewed and
confirmed by the Committee annually. As shown in note 6(b) to
the financial statements, total fees payable to Ernst & Young
LLP in the year to 31 December 2012 amounted to $2 million,
of which $866,000 was for non-audit services. This included
$705,000 for transactional advisory services in connection with
the acquisitions and preference share placing where it was
considered that the provision of these services by Ernst &
Young LLP provided the Group with a commercial advantage.
Ernst & Young LLP has provided the Committee with written
confirmation of their independence. The Committee has
recommended a resolution for their re-appointment to be
proposed to shareholders at the Annual General Meeting.
Nominations Committee
The Nominations Committee comprises Anton Bilton,
Christopher Sherwell and Richard Jewson, who is Chairman.
The Committee undertakes an annual review of any succession
planning and ensures that the membership and composition of
the Board and its Committees are constituted appropriately in
light of the requirements of the Group and those of the Code,
with the necessary balance of skills and expertise to undertake
their roles effectively. 
Should the Committee consider it necessary to either refresh or
enlarge the Board or its Committees, acting in accordance with
its terms of reference, a rigorous and thorough evaluation will
be undertaken by the Committee in assessing the requirements
of the Group so that the individual or individuals appointed will
add value to the on going activities of the business.
Remuneration Committee
The Remuneration Committee comprises Stephen Coe,
Richard Jewson, David Moore and Christopher Sherwell, who
is Chairman. The Remuneration Committee meet at least once
a year to review the performance of Executive Directors and to
recommend their remuneration and other benefit packages.
The fees of the Non-Executive Directors are determined by the
Executive Directors. Full details of the activities undertaken by
the Committee during the year are included within the
Remuneration Report. This Report will be subject to an
advisory vote at the Annual General Meeting.
Internal Control and Risk Management 
The Board has overall responsibility for the systems of internal
control and for reviewing their effectiveness throughout the
Group. This is an on going process, in accordance with the
guidance of the Turnbull Committee on internal controls, that
identifies, evaluates and manages the principal risks and
uncertainties that may affect the achievement of the Group’s
strategic objectives. Such a system is designed to manage or
reduce the effects of the possible risks to which the Group’s
activities are subject, rather than providing absolute assurance
against material misstatement or loss.
Consideration of risks and risk management form an integral
part of the Board deliberations and are key to its decision
making processes. There are risks which your Board have no
control over. These are mainly overriding external risks such as
the wider economic environment, however the impact of such
risks and effect that they have on the Group are considered
and mitigated to the extent possible. The strategic decisions of
the Group are adjusted to address these issues ensuring that
threats are reduced and opportunities are exploited. 
Key features of the risk management process in place during
the year and up to the date of the annual report and financial
statements include:
• A comprehensive system of reporting and business
planning;
• A defined schedule of matters reserved for the Board;
• An organisational structure chart with clearly defined levels
of authority and division of responsibilities;
• Formal documented policies and procedures throughout
the Group; Heading – continued
19
Heading Corporate Governance – continued
• The close involvement of the Executive Directors and
senior management in all aspects of the day-to-day
operations, including regular meetings to review all
operational aspects of the business and risk management
systems;
• The Board’s review of Group strategy and progress
against objectives throughout the year;
• A formal whistle blowing policy;
• A comprehensive and robust system of financial reporting
which includes regular management information, such as
budgets, re-forecasts, cash flows, treasury reporting and
management accounts; and
• A regular assessment of risks within the business at all
operational levels.
The Audit Committee has reviewed the effectiveness of the
systems of internal control and has reported its findings to the
Board throughout the year and up to the date of the annual
report and financial statements. The Risk Committee (as further
defined below) report regularly to the Audit Committee on its
deliberations and findings. The risks and uncertainties to which
the Group is subject are reviewed and considered by the Audit
Committee and the Board at regular intervals, particularly with
reference to the strategic objectives of the business.
The Audit Committee has established a Risk Committee to
carry out the review and assessment of risks associated with
the business. This Committee comprises Executive Directors
and senior management involved in each operating jurisdiction
and department of the Group. This engenders a culture of risk
assessment within the Group and reinforces the strategic
objectives communicated by the Board. During the year ended
2012, the Risk Committees met four times. 
Corporate responsibility
Corporate responsibility covers many different aspects of
business but our primary focus is on the environmental impact
of our activities and properties and the social impact in the
jurisdictions in which the Group operates. It is the responsibility
of the Company’s Board of directors to manage the
environmental, economic and social impact of the Group’s
business strategy.
The Board recognises that the way its investment properties
are designed, built, managed and occupied can significantly
influence their impact on the environment and the community
in which they are located and it seeks to manage these issues.
Your Board notes that from 2013 the London Stock Exchange
will require Main Market listed businesses to report on levels of
greenhouse gas emissions and the Group will work with its
advisers to collate the necessary data to report in its 2013
Annual Report and Accounts.
Your Board also recognises the social impact of its operations
in each of its key jurisdictions, Russia, Guernsey and Cyprus.
In Russia, this is particularly evident in the employment
opportunities that are created in the communities where the
Group’s properties are located but in each jurisdiction staff are
encouraged to participate in community activities and the
Board has established a fund to support local causes or
charities, which meet the corporate values of the Group.
Investor relations
The Chief Executive, Executive Deputy Chairman and Chief
Financial Officer are the Company’s points of contact for
investors, fund managers, analysts, the press and other
interested parties. The Company’s investor relations
programme includes formal presentations of the annual and
interim results, as well and regular analyst briefings and
meetings.
The Board receives updates on the Company’s investor
relations activities including any reports prepared by the
Company’s brokers, external analyst papers, and details of any
shareholder meetings.
The Board believes that sustainable financial performance and
delivering on the objectives of the Company are key measures
in building trust with the Company’s shareholders. To promote
a clear understanding of the Company, its objectives and
financial results, the Board ensures that information relating to
the Company is disclosed in a timely manner and in a format
suitable to the shareholders of the Company. The Company’s
website has been developed to facilitate communication with
all shareholders. Communication through these means allow
our investors to receive information in a timely and cost
effective manner.
The notice of AGM accompanies this report and a separate
proxy card is provided for shareholders.
Signed for and on behalf of the Board
Colin Smith
Director
10 March 2013 20
Risk Report
The Board places significant importance on identifying and managing the risks facing the business. These encompass the risks, real
and perceived, of operating in a foreign market such as Russia, to the more obvious cyclical, property specific risks, presented by the
development and investment in a large property portfolio.
In the last eight years we have addressed the fundamental risks of entry into any new market, identifying experienced and trustworthy
local joint venture partners in the early stages and gradually building up our own domestic presence. We are now the largest player in
our niche and have all of the in house skills required to manage both local regulatory and generic property risks. Our in house expertise
includes legal, finance and accounting, leasing, asset management and construction departments. We believe that we have the
structure and culture in place to identify and effectively manage the risks that our market and sector presents.
Our primary focus is on obtaining attractive returns for our shareholders and as such, we have a commensurate focus on financial
risks. Set out below is an overview of how we manage our key financial risks.
Financial Risks
Our strategy from the outset has been simple: to build an investment portfolio in the Russian warehouse sector which allows us to
generate a dollar denominated, ungeared yield on cost of 12%. We believed that this would translate into very attractive dividend yields
for our shareholders.
Gearing
Gearing has enabled us to accelerate our growth but we have managed the increased risk to the Group by raising asset secured
facilities, ring-fenced in special purpose vehicle structures. We have not taken any significant bank debt exposure onto the holding
company balance sheet to date. This allows us to monitor both our debt service obligations at an asset level but maintain low gearing
ratios at a consolidated level. Our Group gearing levels, not including preference shares, have been managed between 35% and 46%.
This held us in good stead during a busy speculative construction period in 2008 and 2009 and through the recent financial crises.
The changing banking landscape and the diminishing number of players in the market, combined with our maturing portfolio, may
mean that we do look to alternative financing structures in the future. We have demonstrated this already with the issue of preference
shares and we may, in time, change our financing risk profile to a more central financing structure, using the portfolio as a whole, to
reduce our effective cost of debt.
Key Performance Indicators
With the impact of gearing and our preference shares on results, we place emphasis on our “Underlying Earnings” (as defined in note 9
to the financial statements) and operating cash flows after financing costs. These measures give the most relevant and comparable
information on the operating performance of our portfolio and our ability to pay dividends from those operations.
We also monitor our loan to value covenants and the impact of valuations on our diluted net asset value per share. However, given that
valuation yields in our market remain significantly above other comparable European markets (close to replacement cost) and result in
high cash cover on debt service, we do not currently see this as a key metric on our performance.
Property Acquisition and Development
The market in which we operate has been and continues to be undersupplied. This means that we have had to construct the majority
of our portfolio speculatively, 2008 and 2009 being the periods of greatest construction activity. The global downturn, resulted in this
new space taking time to let with the cost of vacant space being carried by the Group. We have now reached letting levels that reduce
this cost to de minimis levels.  21
Risk Report – continued
New development in today’s market has the potential to deliver high income yields, especially on additional phases of existing assets.
We have commenced a speculative construction programme limited to a maximum of 100,000 sqm in any year. This allows us to
manage the construction and letting risk on new space in the context of our existing portfolio of 1.3 million sqm.
The market has also presented acquisition opportunities in the last year, of completed, fully let properties. We have completed two
acquisitions in the year at prices that allow us to maintain our yield on cost target but also give the opportunity to enhance this through
asset management.
Acquisitions present their own risks in our market as we have not been involved in the historic construction and management of the
sites. Whilst this adds to the potential for enhanced asset management returns it also introduces the risk of legacy contracts that may
need to be managed out. This is all part of the integration risk of introducing new assets to the portfolio.
In the context of the narrative above, we have set out in the following table the principal risks and uncertainties that face our business,
our view on how those risks have changed during the year and a description of how we mitigate or manage those risks.
Financial Risk
Bank Lending
The number of banks
lending in our market
diminishes because of
exposure to the
Eurozone.
Debt facility maturities now have a weighted average of 4.6 years with only
one near term maturity at 31 December 2012. A new facility agreement has
been signed following the year end, refinancing this near term maturity;
Larger Russian domestic lenders are now offering debt on similar terms to
the International banks who have exited the market;
Alternative sources of funding such as preference shares are available; and
Facilities have a mix of amortising profiles and approximately $50 million of
principal is repaid each year. This means that our gearing levels are low
(44.1% at 31 December 2012) and debt service coverage ratios are more
than adequately met.
Reduced access to
funding and potential
increase in funding cost.
Reduces ability to
refinance maturing
facilities. 
Interest rates
Cost of debt increases. The majority of our variable cost of debt is hedged with the use of swaps and
caps on US LIBOR for 5 year terms;
The weighted average remaining term of existing hedge instruments is over
3 years.
Group profitability and
debt service cover
reduces.
Risk Impact Mitigation 22
Risk Report – continued 
Rental income, whilst received in Roubles, is pegged to the US Dollar
exchange rate, the exchange risk being passed to tenants;
We retain sufficient Rouble funds from rent collection to meet Rouble
expenditure requirements;
Construction costs are payable in Roubles, if we have insufficient Rouble
resources to cover future construction payments we will enter into Non
Deliverable Forward instruments to retain certainty on our US Dollar returns;
Our largest Sterling exposure is the payment of preference share coupon and
ordinary share dividends; 
We have capped the exposure of our preference share coupon to December
2015 and retain Sterling cash where possible to cover known ordinary share
dividend commitments; and
Our balance sheet is open to unrealised losses on foreign exchange if the
US Dollar weakens against Sterling and/or the Rouble.
A reduction in our US
Dollar denominated
earnings.
Composition of
portfolio
Portfolio made up of
predominately one asset
class with concentration
in Moscow.
Assets are  located in different local markets and Moscow remains the main
hub for supply throughout Russia;
Moscow has a larger population than any other European City save Istanbul
and can support niche players because of its size;
There remains a structural under supply of Grade A warehouses in Moscow
and Russia as a whole;
Our focussed approach provides detailed understanding of our sector;
We monitor concentration within the portfolio, our largest asset represents
15% of the total portfolio; and
The average investment property lot size is $113 million on a portfolio valued
at $1.5 billion.
Potentially reduces
liquidity of the portfolio;
and
Could cause volatility in
income and valuation
movements.
Customers
Slow down in Russian
growth and consumer
spending.
We have a diversified tenant base (our largest tenant, X5 Group, represents
11.5% of rental income);
Almost 50% of our income comes from tenants who make less than a 2%
contribution to rent roll;
High quality property portfolio, of which 67% is located around Moscow;
Experienced internal leasing team; and
Strong relationships with existing customers.
Reduced consumer
demand will impact on
demand for new
lettings, renewal of
existing leases and
restrict rental growth.
Property Investment
Foreign Exchange
Adverse movements in
Rouble or Sterling
against US Dollar.
Risk Impact Mitigation
Risk Impact Mitigation 23
Risk Report – continued
Acquisitions
Immature investment
market where legacy
issues are common with
Russian corporate
acquisitions.
We have an internal management team with both international and Russian
experience allowing issues to be identified prior to acquisition;
External advisers undertake full detailed due diligence; and
Organic growth through speculative development managed at levels below
10% of existing portfolio in any one year.
Lack of available
acquisitions requires
reliance on speculative
development for growth.
Where acquisitions are
possible legacy issues
may erode earnings
enhancement.
Speculative Nature
Occupiers are reluctant
to enter into
commitments to take
new space prior to
asset construction
commencement.
We monitor market cycle and likely tenant demand before committing to new
developments; 
Our developments are built in phases to allow suspension of construction if
markets move adversely; and
Current development plans limit construction to between 50,000 and
100,000 sqm in any 12 month period, less than 10% of the current portfolio.
Requires speculative
development which will
reduce income through
vacant possession cost
and valuation impact.
Returns
Development projects
fail to deliver the
expected returns
through cost and time
overruns.
Full project appraisals prepared with appropriate monetary and timing
contingencies;
Foreign exchange exposure hedged where necessary; and
Experienced in house construction team project manage all projects.
Target yield not met and
profitability reduced.
Property Development
Legal Framework
The legal framework in
Russia is in the early
stages of its
development.
Experienced in house legal team review new legislation for any impact on the
business; and
External legal advisers used when necessary.
Large volume of new
legislation from various
state bodies is open to
interpretation, puts
strain on the judicial
system and can be
open to abuse.
Russian Taxation
Russian tax code is also
developing and new
rulings regularly
introduced.
The key tax treaty for the Group is with Cyprus and this was renegotiated in
the last 12 months with no significant impact on the business;
Russia is a relatively low tax jurisdiction with 20% Corporation tax;
The Group structures itself in anticipation of Russia’s move towards a more
Western taxation structure encompassing concepts such as thin
capitalisation and transfer pricing.
Tax treaties may be
renegotiated and new
legislation may increase
the Group’s tax
expense.
Russian Domestic Risk
Risk Impact Mitigation
Risk Impact Mitigation
Risk Impact Mitigation 24
Risk Report – continued
Key Personnel
Failing to retain key
personnel.
The Remuneration Committee and the Executive’s review remuneration
packages against comparable market information;
Employees have regular appraisals and documented development plans and
targets; and
Incentive schemes are based on measurable annual targets and weighted
towards share based rewards.
Inability to implement
strategy.
Business systems
Business and IT system
disruption.
Disaster recovery plans in place and all data stored remotely;
IT specialists now employed in house; and
Full upgrade of systems carried out in 2012.
Disruption impacts on
day to day operations.
Other Operational Risks
Risk Impact Mitigation
The majority of these risks have remained the same over the year. The most significant change has arisen following the acquisitions
made in the year and the integration of those assets into the portfolio, including dealing with legacy contract issues. 25
Directors’ Remuneration Report
Remuneration policy
The Group’s remuneration policy aims to attract, retain and
incentivise high calibre executives and senior staff and to align
their interests with those of shareholders and other
stakeholders in the business. The Remuneration Committee
(the ‘Committee’) seeks to ensure that total remuneration is at
competitive levels compared to the Company’s peers in the
property sector, whilst taking into account the strategic and
geographical complexity of the business. No Director,
Executive or Non-Executive is involved in deciding his own
remuneration.
Remuneration Committee
The Committee comprises four independent Non-Executive
Directors, Stephen Coe, David Moore, Richard Jewson and
Christopher Sherwell (Chairman). The Committee has
responsibility for determining policy and the framework for
the remuneration and employment arrangements of the
Executive Directors and senior management of the
Company, consistent with the principles above. 
Executive Directors
Remuneration packages for Executive Directors comprise
annual salaries, benefits such as life and health insurance,
pension contributions, performance-related bonuses in cash
and shares and share options.
Executive Directors may serve as Non-Executive Directors for
companies outside of the Group and retain such fees that may
be paid to them. Glyn Hirsch is a Non-Executive Director of
Liontrust Asset Management Plc for which he receives a fee of
£28,000 per annum.
Basic salary and benefits
The Committee reviews basic salaries and the level and nature
of benefits provided to the Executive Directors and senior
management annually. Basic salary is the only element of the
Executive Directors’ remuneration which attracts pension
contributions.
As set out in the 2011 Remuneration Report, Executive
Directors received salary increases in 2012 limited to the
increase in UK RPI. This will also be the case in 2013, except
for Colin Smith, who has been awarded a £50,000 per annum
increase in salary to bring him in line with the basic salary of
the other Board members. This is also a reflection of the
contribution that Colin makes to the business.
Benefits principally comprise life insurance, health insurance
and private healthcare subscriptions. The cost of these benefits
for Executive Directors is included in the table below. A
contribution of 10% of basic salary is made to each Executive
Director for his personal pension arrangements or direct to his
personal pension plan.
Cash Bonuses
As anticipated in the 2011 Remuneration Report, as corporate
targets for the three years to 31 December 2011 were met,
the Committee intended to allocate an additional cash bonus
not exceeding £1.2 million across the Executive Board and
senior management team, with the proviso that no individual
receive a cash bonus of more than 100% of basic salary. The
bonuses were paid in April 2012 and are shown in the table
below. No further cash bonuses will be available to the
Executive Board for performance in the three years to
31 December 2014.
Directors’ remuneration details in respect of the year ended 31 December 2012
Salaries/ Cash Total Total Pension Pension
Fees Bonuses* Benefits 2012 2011 2012 2011
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive
A Bilton 509 225 19 753 501 48 46
G Hirsch 509 250 19 778 508 48 46
M Sinclair 318 170 10 498 415 32 31
C Smith 239 170 10 419 338 24 23
1,575 815 58 2,448 1,762 152 146
Non-executive
R Jewson 100 – – – 90 – –
C Sherwell 42 – – – 42 – –
S Coe 42 – – – 42 – –
D Moore 42 – – – 42 – –
226 – – – 216 – –
*Bonus payments relate to performance in 2011. 26
Directors’ Remuneration Report – continued
The contractual arrangements of the Executive Directors for 2013 are:
Contractual
Appointment Unexpired Notice termination
Salary Date term period payment
Director
A Bilton £522,750 27 November 2008 Rolling contract 12 months Payment of 12 months
G Hirsch £522,750 27 November 2008 Rolling contract 12 months salary and benefits 
M Sinclair £326,600 23 March 2009 Rolling contract 12 months on termination
C Smith £289,000 14 November 2008 Rolling contract 12 months
Share Schemes
Share incentive schemes are in a transition, with older
schemes set up in 2008 and 2009 reaching their term and a
new Combined Bonus and Long Term Incentive Scheme
introduced in last year’s Remuneration Report coming into
operation in 2012.
Current Scheme
Combined Bonus and Long Term Incentive
Scheme 2012 to 2014
As the historic schemes have vested or commenced vesting,
the Committee developed a new scheme for the years 2012 to
2014, with reference to the recent guidelines issued by the ABI
and after discussion with the Company’s largest shareholders.
Details of this scheme were included in the 2011 Remuneration
Report which was approved at the AGM on 30 May 2012.
This is a simple, long term scheme which meets the criteria of:
• Shareholder alignment;
• Deferral of benefits;
• Clawback provisions;
• Cost efficiency and shareholder value enhancement;
• Stretching corporate targets; and
• Reasonable reward levels for target achievement.
This new joint scheme is based on performance criteria which
reflect cash generation, the Company’s progressive dividend
policy and total shareholder return targets determined by the
Board. No cash bonuses will be paid to the Executive Board
and all awards will be made in ordinary shares or the
Company’s other instruments.
Over the next three years, on an equal basis, a total of
22.5 million ordinary shares (or any of the Company’s other
capital instruments to the same value) will be made available
for the scheme. The EBT holds 14,303,279 ordinary shares
and 3,731,343 preference shares to cover the scheme’s
commitment. These will be used for performance remuneration
of executives and senior management combined, currently a
team of 16.
In addition it is proposed that:
• Awards for any Executive Director cannot exceed 300% of
salary in any year based on the share price at the date of
grant of an award; and
• No Executive Director can receive more than 1.5m ordinary
shares (or the equivalent in any of the Company’s other
capital instruments) in any one year under this scheme.
The targets associated with awards are:
2012
50% on operating cash income of $18m;
75% on operating cash income of $27m; and
100% on operating cash income of $36m.
2013
50% on operating cash income of $27m;
75% on operating cash income of $36m; and
100% on operating cash income of $45m.
2014
50% on operating cash income of $36m;
75% on operating cash income of $45m; and
100% on operating cash income of $54m.
• Operating cash income is defined as ‘Net cash generated
from operating activities plus interest received less
borrowing costs paid less dividends paid on preference
shares’, all as presented in the audited group cash flow
statement, where borrowing costs paid are adjusted for
any element that is capitalised as part of construction
programmes. Awards will be made on a straight line basis.
• The Remuneration Committee will also take into account
total shareholder return targets. If the above cash income
targets are not met but total shareholder return targets are
achieved, then awards can be made at the discretion of 27
Directors’ Remuneration Report – continued
the Committee. The proposed shareholder return target is
7.5% per annum. Shareholder return is defined as either
the annual increase in share price or fully diluted NAV per
share, whichever is higher, adjusted for distributions to
ordinary shareholders.
• All targets will be adjusted appropriately to account for the
effect of any change in share capital; and
• All executives must retain any shares awarded under the
scheme, except for disposals required for income tax
purposes, until the date the annual financial statements for
31 December 2015 are issued. This means a retention
period until April 2016.
Participants are also set personal targets for the performance
period, beyond their contribution to the achievement of the
Company’s cash generation targets. The Committee will review
achievement of these and may as a result flex individual
awards. The Committee will also take account of shareholder
experience and poor total shareholder return performance, if
unforeseen events cause these to be out of line with the cash
generation formula described above.
The intended maximum allocation of awards of ordinary shares
over the period proposed by the Committee for the Executive
Board is as follows with a grant price of 59.5p, being the
market value of shares on the date the Committee approved
this scheme:
Number of Ordinary Shares
2012 2013 2014
A Bilton 1,341,000 1,341,000 1,341,000
G Hirsch 1,341,000 1,341,000 1,341,000
M Sinclair 1,141,000 1,141,000 1,141,000
C Smith 756,000 756,000 756,000
The Committee believes the terms of this scheme meet
existing guidelines as:
• it is a simple, transparent and flexible structure that
awards executives and senior management for achieving
the underlying progressive dividend strategy and in so
doing, aligns with shareholder interests;
• it is a cost effective scheme which preserves cash in the
business for shareholder benefit;
• it gives a significant level of variable remuneration based
on the achievement of strategic goals;
• targets set are stretching and the holding period of shares
ensures a ‘deferral’ of rewards if ongoing targets are not
met and also gives a focus on long term goals;
• claw back arrangements are effectively in place as the
capital value of shares awarded to executives is likely to
drop if targets are not met and sustained; and
• the executives already have and intend to increase
through this scheme, their holdings in the capital
instruments of the company to levels above many of those
in their UK peer group. The quantum of executives’
holdings also ensures that they will be focussed on the
improvement of shareholder returns.
Since incorporation in 2005, 30 million existing shares have
been allocated to the Company’s incentive schemes without
the issue of new shares. With the additional 22.5million
proposed in this scheme, a total of 52.5million ordinary shares
would be made available by 2014 which equates to 8.3% of
existing issued ordinary shares and warrants. This is within the
10% rolling dilution ABI guideline over any 10 year period.
Through buy back programmes all of the instruments required
for this scheme are currently held by the EBT, combining
14.3 million ordinary shares and 3.7 million preference shares.
This gives an actual dilution of 2.4% on the NAV per share at
31 December 2012. 
Performance in 2012
Performance in 2012 exceeded expectations, driven by:
• the acquisitions of Pushkino and Sholokhovo;
• the letting success with new space in Klimovsk and above
target achievement in St Petersburg; and
• the continuing financing programme, with a successful
preference share issue in the period. 
Together this has resulted in a significant increase in operating
cash income, as defined above, of 119% from $17.7 million in
2011 to $38.8 million in the year and a year end cash balance
of $191.7 million (2011: $181.8 million). This meets the upper
2012 target of $36 million and allows us to make a distribution
of 2.25p, an increase of 29% on the previous year.
Total Shareholder Return, calculated in accordance with the
scheme rules was 26.1% for the period, compared to the
target of 7.5%.
The Executives and senior management team have operated
well, closing out difficult acquisitions and integrating them into
the existing portfolio, managing the letting and ongoing asset
management programme and sourcing and securing the
required financing.
Having reviewed the results in the context of corporate and
personal targets set, the Committee have agreed the following
proposal for the allocation of awards under the Combined
Bonus and Long Term Incentive Plan to be made to the
Trustees of the EBT for performance in 2012. The proposal is
in line with the allocation envisaged under the scheme. 28
Directors’ Remuneration Report – continued
Number of Ordinary Shares or equivalent 2012
A Bilton 1,341,000
G Hirsch 1,341,000
M Sinclair 1,141,000
C Smith 756,000
Historic Schemes
The older schemes incorporated a Bonus Plan, Executive
Retention Scheme and a Long Term Incentive Plan. Except for
the Long term Incentive Plan, which has partially vested, the
other schemes duly vested in 2012 and are now closed.
Details of these schemes are given below.
Bonus Plan
In 2009, the Committee designed a bonus plan for 2009, 2010
and 2011 which reduced the cash burden to the Group and
aligned Executive Directors and senior management with
shareholder interests. 
The table below shows the share bonuses issued in the year
with regard to 2011 performance as anticipated in the 2011
Remuneration Report. Under the bonus scheme, the
Committee had the discretion to award up to 4.4 million of
shares to the Executive Board and senior management for
performance over the bonus period. The 2011 Remuneration
Report set out the targets met to trigger this award and how
they had been achieved. Any awards based on those targets
assumed that the executives and senior management remained
in employment at the time of issue of the 31 December 2011
results and were made following the issue of those audited
financial statements. The Committee met in April 2012 and
made the following awards to the Executive Board.
Bonus Shares 2011 awards
A Bilton 775,000
G Hirsch 775,000
M Sinclair 775,000
C Smith 160,000
Executive Share Option Schemes (ESOS)
The Group operated two ESOS in which the Executive
Directors participate. These schemes were approved by
shareholders on 28 August 2008 and 24 March 2009 and
replaced schemes that had been put in place for the former
Property Advisor prior to its acquisition by the Company in
November 2008. Options available under the schemes were
granted by the Company’s Employee Benefit Trust (‘EBT’)
which holds the underlying shares. The EBT’s Trustees are
independent of the Company but consider the
recommendations of the Committee as to the granting of
awards under the schemes. 
(a) Executive Retention Scheme (ERS)
This scheme was introduced for certain Executive Directors
and senior managers at the time of the acquisition of the
Property Advisor. The EBT held 5 million ordinary shares for
this scheme. The options it granted over these shares were
exercisable from the date of publication of the audited financial
statements of Raven Russia Limited for the year ended
31 December 2010. The options did not have an exercise
price, dividends rolled up during the life of the option and the
sole vesting condition was that the scheme member remained
in the employment of the Group until the first exercise date.
Anton Bilton and Glyn Hirsch did not participate in this
scheme.
The Director’s interests in this scheme are set out below:
At At
1 January Exercised 31 December
2012 in year 2012
A Bilton – – –
G Hirsch – – –
M Sinclair 1,000,000 1,000,000 –
C Smith 125,000 125,000 –
(b) Long Term Incentive Plan (LTIP)
All employees of the Group were eligible to receive invitations
to participate in this plan and the EBT held 10 million ordinary
shares reserved for the purpose. The options it granted over
these shares vest in three equal tranches, subject to
performance criteria, on 24 March 2012, 24 March 2013 and
24 March 2014. 
Performance criteria for each tranche are based on meeting a
target of total shareholder return of 7.5% over UK RPI in each
of the following three year periods, with a starting share price
of 25p:
• 24 March 2009 to 24 March 2012;
• 24 March 2010 to 24 March 2013; and
• 24 March 2011 to 24 March 2014.
Dividends roll up during the vesting period and options granted
under this scheme have an exercise price of 25p.
The first tranche of this scheme vested in full in 2012. 29
Directors’ Remuneration Report – continued
At At
1 January Vested Exercised 31 December
2012 in year in year 2012
A Bilton 810,811 270,270 – 810,811
G Hirsch 1,000,000 333,333 – 1,000,000
M Sinclair 1,000,000 333,333 – 1,000,000
C Smith 500,000 166,667 – 500,000
Non-Executive Directors
The remuneration of Non-Executive Directors is determined by the Committee in consultation with the wider Board, including in
particular the Executive Deputy Chairman and the Chief Executive. The Committee believes the pay of the Non-Executive Directors
reflects their commitment of time and the responsibilities of their roles. No Non-Executive Director is entitled to any form of
performance-related remuneration, including share options.
The contractual arrangements for 2013 of the Non-Executives Directors are set out below. 
Contractual
Fees Appointment Unexpired Notice termination
£’000 date term period payment
Non-Executive Director
R Jewson 100 29 June 2007 Rolling contract 3 months No provision for 
S Coe 42 4 July 2005 Rolling contract 3 months payment on 
D Moore 42 4 July 2005 Rolling contract 3 months termination
C Sherwell 42 1 April 2008 Rolling contract 3 months
Interests of Executive and Non-Executive Directors in Ordinary Shares, Preference Shares and
Warrants 
The beneficial interests of the Directors in office at 31 December 2012 in the Ordinary shares, Preference shares and Warrants of the
Company, both at the beginning and the end of the year, are set out below:
Director Number of Number of Number of
ordinary shares preference shares warrants
31 December 2012 31 December 2012 31 December 2012
R Jewson 139,333 133,880 –
A Bilton
(1)
19,455,267 27,551,397 12,914,991
G Hirsch
(1)
3,507,209 3,562,578 2,292,817
M Sinclair 2,417,348 158,612 –
C Smith 509,094 90,772 7,385
C Sherwell 33,647 134,282 –
S Coe 109,422 57,818 –
D Moore 142,336 57,052 –
26,313,656 31,746,391 15,215,193
Director Number of Number of Number of
ordinary shares preference shares warrants
31 December 2011 31 December 2011 31 December 2011
R Jewson 138,810 130,949 –
A Bilton
(1)
17,991,199 27,435,700 15,082,944
G Hirsch
(1)
2,827,946 3,562,578 2,292,817
M Sinclair 1,375,934 158,612 7,332
C Smith 231,242 90,772 7,385
C Sherwell 29,000 100,712 –
S Coe 82,727 55,791 31,997
D Moore 142,336 57,052 –
22,819,194 31,592,166 17,422,475
(1) Includes ordinary and preference shares and warrants held by discretionary trusts. 
The Directors’ interests in this scheme are set out below: 30
To the Members of Raven Russia Limited
We have audited the financial statements of Raven Russia
Limited for the year ended 31 December 2012 which comprise
the Group Income Statement, the Group Statement of
Comprehensive Income, the Group Balance Sheet, the Group
Cash Flow Statement, the Group Statement of Changes in
Equity and the related notes 1 to 38. The financial reporting
framework that has been applied in their preparation is
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
This report is made solely to the Company’s members, as a
body, in accordance with Section 262 of the Companies
(Guernsey) Law, 2008. Our audit work has been undertaken so
that we might state to the Company’s members those matters
we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
Company and the Company’s members as a body, for our
audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and
auditor
As explained more fully in the Directors’ Responsibilities
Statement set out on page 15, the directors are responsible for
the preparation of the financial statements and for being
satisfied that they give a true and fair view. Our responsibility is
to audit and express an opinion on the financial statements in
accordance with applicable law and International Standards on
Auditing (UK and Ireland). Those standards require us to
comply with the Auditing Practices Board’s Ethical Standards
for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free
from material misstatement, whether caused by fraud or error.
This includes an assessment of: whether the accounting
policies are appropriate to the Group’s circumstances and have
been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by
the directors; and the overall presentation of the financial
statements. In addition, we read all the financial and non-
financial information in the Raven Russia Limited annual report
and financial statements to identify material inconsistencies
with the audited financial statements. If we become aware of
any apparent material misstatements or inconsistencies we
consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
• Give a true and fair view of the state of the group’s affairs
as at 31 December 2012 and of its profit for the year then
ended;
• Have been properly prepared in accordance with IFRS as
adopted by the European Union; and
• Have been prepared in accordance with the requirements
of the Companies (Guernsey) Law, 2008.
Matters on which we are required to report
by exception
We have nothing to report in respect of the following:
Where, under the Companies (Guernsey) Law, 2008, we are
required to report to you if, in our opinion:
• Proper accounting records have not been kept; or
• The financial statements are not in agreement with the
accounting records; or
• We have not received all the information and explanations
we require for our audit.
Where, under the Listing Rules, we are required to review the
part of the Corporate Governance Statement relating to the
Company’s compliance with the nine provisions of the UK
Corporate Governance Code specified for our review.
Nick Gomer
for and on behalf of Ernst & Young LLP
London
10 March 2013
Note:
1. The maintenance and integrity of the Raven Russia web
site is the responsibility of the directors; the work carried
out by the auditors does not involve consideration of
these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to
the financial statements since they were initially presented
on the web site.
2. Legislation in Guernsey governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions. 
Independent Auditor’s Report 31
Group Income Statement
For the year ended 31 December 2012
2012 2011
Underlying Capital Underlying Capital
earnings and other Total earnings and other Total
Notes US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Gross revenue 4/5 234,207 – 234,207 162,770 – 162,770
Property operating expenditure
cost of sales (88,354) (9,371) (97,725) (68,662) (2,454) (71,116)
Net rental and related income 145,853 (9,371) 136,482 94,108 (2,454) 91,654
Administrative expenses 4/6 (31,272) (1,706) (32,978) (24,601) (2,639) (27,240)
Share-based payments and other 
long term incentives 32 – (16,609) (16,609) – (6,099) (6,099)
Foreign currency losses (2,467) – (2,467) (562) – (562)
Operating expenditure (33,739) (18,315) (52,054) (25,163) (8,738) (33,901)
Operating profit/(loss) before 
profits and losses on 
investment property 112,114 (27,686) 84,428 68,945 (11,192) 57,753
Loss on disposal of investment 
property under construction – – – – (1,158) (1,158)
Unrealised profit on revaluation 
of investment property 11 – 68,055 68,055 – 133,062 133,062
Unrealised (loss)/profit on 
revaluation of investment property 
under construction 12 – (3,696) (3,696) – 10,611 10,611
Operating profit 112,114 36,673 148,787 68,945 131,323 200,268
Finance income 7 6,666 – 6,666 2,197 – 2,197
Finance expense 7 (84,067) (8,546) (92,613) (63,086) (10,463) (73,549)
Profit before tax 34,713 28,127 62,840 8,056 120,860 128,916
Tax 8 (4,446) (28,980) (33,426) (7,109) (33,444) (40,553)
Profit/(loss) for the year 30,267 (853) 29,414 947 87,416 88,363
Earnings per share: 9
Basic (cents) 5.15 16.73
Diluted (cents) 4.92 15.11
Underlying earnings 9
per share:
Basic (cents) 5.30 0.18
Diluted (cents) 5.06 0.16
The total column of this statement represents the Group’s Income Statement, prepared in accordance with IFRS as adopted by the
EU. The “underlying earnings” and “capital and other” columns are both supplied as supplementary information permitted by IFRS as
adopted by the EU. Further details of the allocation of items between the supplementary columns are given in note 9.
All items in the above statement derive from continuing operations.
All income is attributable to the equity holders of the parent company. There are no non-controlling interests.
The accompanying notes are an integral part of this statement. 32
Group Statement of Comprehensive Income
For the year ended 31 December 2012
2012 2011
US$’000 US$’000
Profit for the year 29,414 88,363
Foreign currency translation (3,050) (12,851)
Tax relating to foreign currency translation – 2,454
Other comprehensive income, net of tax (3,050) (10,397)
Total comprehensive income for the year, net of tax 26,364 77,966
All income is attributable to the equity holders of the parent company. There are no non-controlling interests.
The accompanying notes are an integral part of this statement. 33
Group Balance Sheet
As at 31 December 2012
2012 2011
Notes US$’000 US$’000
Non-current assets
Investment property 11 1,495,673 1,145,090
Investment property under construction 12 149,450 101,458
Plant and equipment 8,768 6,711
Goodwill 13 13,615 13,475
Other receivables 16 18,732 13,084
Derivative financial instruments 19 4,278 1,216
Deferred tax assets 26 52,709 57,994
1,743,225 1,339,028
Current assets
Inventory 17 30,173 51,155
Trade and other receivables 18 87,016 43,661
Derivative financial instruments 19 960 –
Cash and short term deposits 20 191,697 181,826
309,846 276,642
Total assets 2,053,071 1,615,670
Current liabilities
Trade and other payables 21 92,949 70,577
Derivative financial instruments 19 606 –
Interest bearing loans and borrowings 22 121,936 95,607
215,491 166,184
Non-current liabilities
Interest bearing loans and borrowings 22 645,121 465,638
Preference shares 23 325,875 218,206
Provisions 24 36,217 –
Other payables 25 40,288 18,352
Derivative financial instruments 19 9,103 8,968
Deferred tax liabilities 26 92,014 69,562
1,148,618 780,726
Total liabilities 1,364,109 946,910
Net assets 688,962 668,760
Equity
Share capital 27 11,131 11,208
Share premium 71,475 83,454
Warrants 28 1,367 1,985
Own shares held 29 (24,145) (16,222)
Special reserve 852,802 852,802
Capital reserve 102,808 52,239
Translation reserve (123,697) (120,647)
Retained earnings (202,779) (196,059)
Total equity 30/31 688,962 668,760
Net asset value per share (dollars): 31
Basic 1.22 1.18
Diluted 1.14 1.11
Adjusted net asset value per share (dollars): 31
Basic 1.34 1.26
Diluted 1.25 1.19
The financial statements were approved by the Board of Directors on 10 March 2013 and signed on its behalf by:
Mark Sinclair Colin Smith
The accompanying notes are an integral part of this statement. 34
Group Statement of Changes in Equity
For the year ended 31 December 2012
Own
Share Share Shares Special Capital Translation Retained
Capital Premium Warrants Held Reserve Reserve Reserve Earnings Total
Notes US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
For the year ended 31 December 2011
At 1 January 2011 10,196 55,119 6,033 (12,241) 852,802 (71,152) (110,250) (150,143) 580,364
Profit for the year – – – – – – – 88,363 88,363
Other comprehensive income – – – – – – (10,397) – (10,397)
Total comprehensive income for the year – – – – – – (10,397) 88,363 77,966
Warrants exercised 27/28 1,012 28,335 (4,048) – – – – – 25,299
Own shares disposed 29 – – – 1,739 – – – 2,400 4,139
Own shares acquired 29 – – – (8,752) – – – – (8,752)
Own shares allocated 29 – – – 3,032 – – – (3,032) –
Ordinary dividends paid 10 – – – – – – – (16,355) (16,355)
Share-based payments 32 – – – – – – – 6,099 6,099
Transfer in respect of capital profits – – – – – 123,391 – (123,391) –
At 31 December 2011 11,208 83,454 1,985 (16,222) 852,802 52,239 (120,647) (196,059) 668,760
For the year ended 31 December 2012
Profit for the year – – – – – – – 29,414 29,414
Other comprehensive income – – – – – – (3,050) – (3,050)
Total comprehensive income for the year – – – – – (3,050) 29,414 26,364
Warrants exercised 27/28 155 4,327 (618) – – – – – 3,864
Own shares disposed 29 – – – 3,533 – – – 4,416 7,949
Own shares acquired 29 – – – (14,060) – – – – (14,060)
Own shares allocated 29 – – – 2,418 – – – (2,418) –
Ordinary shares cancelled under the tender offer 27/29 (232) (16,306) – 186 – – – – (16,352)
Share-based payments 32 – – – – – – – 12,437 12,437
Transfer in respect of capital profits – – – – – 50,569 – (50,569) –
At 31 December 2012 11,131 71,475 1,367 (24,145) 852,802 102,808 (123,697) (202,779) 688,962
The accompanying notes are an integral part of this statement. Group Cash Flow Statement
For the year ended 31 December 2012
2012 2011
Notes US$’000 US$’000
Cash flows from operating activities
Profit before tax 62,840 128,916
Adjustments for:
Depreciation 6 1,706 1,754
Inventory write down 9,371 2,454
Finance income 7 (6,666) (2,197)
Finance expense 7 92,613 73,549
Loss on disposal of investment property under construction – 1,158
Profit on revaluation of investment property 11 (68,055) (133,062)
Loss/(profit) on revaluation of investment property under construction 12 3,696 (10,611)
Foreign exchange losses 2,467 562
Share-based payments and other long term incentives 32 16,609 6,099
114,581 68,622
Increase in operating receivables (5,875) (2,953)
Decrease in other operating current assets 14,639 2,652
Increase in operating payables 837 15,921
124,182 84,242
Tax paid (3,455) (2,655)
Net cash generated from operating activities 120,727 81,587
Cash flows from investing activities
Payments for investment property under construction (34,032) (76,928)
Refunds of VAT on construction 6,728 2,434
Proceeds from disposal of investment property – 8,702
Cash acquired with subsidiary undertakings 38 13,930 –
Cash disposed with subsidiary undertakings – (414)
Acquisition of subsidiary undertakings 38 (271,245) –
Proceeds from sale of plant and equipment 42 475
Purchase of plant and equipment (2,997) (3,055)
Loans advanced (353) (5,056)
Loans repaid 2,470 4,215
Settlement of maturing forward currency financial instruments – (299)
Interest received 2,278 2,055
Net cash used in investing activities (283,179) (67,871)
Cash flows from financing activities
Proceeds from long term borrowings 239,814 226,085
Repayment of long term borrowings (55,612) (84,624)
Repayment of other borrowings (91) (9,600)
Bank borrowing costs paid (53,169) (39,965)
Exercise of warrants 27/28 3,864 25,299
Own shares acquired 27/29 (30,740) (8,752)
Own shares disposed 29 7,949 4,139
Issue of preference shares 23 94,815 –
Dividends paid on preference shares (31,570) (25,973)
Settlement of maturing forward currency financial instruments 140 –
Premium paid for forward currency financial instruments (5,241) –
Ordinary dividends paid 10 – (16,355)
Net cash generated from financing activities 170,159 70,254
Net increase in cash and cash equivalents 7,707 83,970
Opening cash and cash equivalents 181,826 107,641
Effect of foreign exchange rate changes 2,164 (9,785)
Closing cash and cash equivalents 20 191,697 181,826
The accompanying notes are an integral part of this statement.
35 Notes to the Financial Statements
36
For the year ended 31 December 2012
1. General information
Raven Russia Limited (the “Company”) and its subsidiaries (together the “Group”) is a property investment group specialising in
commercial real estate in Russia.
The Company is incorporated and domiciled in Guernsey under the provisions of the Companies (Guernsey) Law, 2008. The
Company’s registered office is 1 Le Truchot, St Peter Port, Guernsey GY1 6EH.
The audited financial statements of the Group for the year ended 31 December 2012 comprise the Company and its
subsidiaries and were authorised by the Board for issue on 10 March 2013.
2. Accounting policies
Basis of preparation
The Company has taken advantage of the exemption conferred by the Companies (Guernsey) Law, 2008, section 244, not to
prepare company financial statements as group financial statements have been prepared for both current and prior periods.
The group financial statements are presented in US Dollars and all values are rounded to the nearest thousand dollars
(US$000) except where otherwise indicated.
The principal accounting policies adopted in the preparation of the group financial statements are set out below. The policies
have been consistently applied to all years presented, unless otherwise indicated.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the accounting policies. The areas involving a high
degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are
disclosed in note 3.
Statement of compliance 
The financial statements of the Group have been prepared in accordance with International Financial Reporting Standards
adopted for use in the European Union (“IFRS”) and the Companies (Guernsey) Law, 2008.
Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial year, except that the Group has adopted
the following new and amended IFRS and IFRIC interpretations as of 1 January 2012:
New and amended standards: 
IAS 12 Income Taxes – Recovery of Underlying Assets
IFRS 7 Financial Instruments: Disclosures – Enhanced Derecognition Disclosure Requirements
The principal effects of these changes on the financial statements of the Group, if any, are as follows:
IAS 12 Income Taxes – Recovery of Underlying Assets
The amendment clarified the calculation of deferred tax on investment property measured at fair value and introduced a
rebuttable presumption that such deferred tax should be determined on the basis that the carrying amount will be recovered
through sale of the property. This clarification will not have any impact on the results of the Group as the tax rates associated
with investment property in Russia do not differ if the property is recovered through sale or use.
IFRS 7 Financial Instruments: Disclosures – Enhanced Derecognition Disclosure Requirements
The amendment requires additional disclosures about financial assets that have been transferred but not derecognised. The
Group does not have any assets with these characteristics, so there has not been any effect in the presentation of its financial
statements. Notes to the Financial Statements – continued
37
Certain new standards, interpretations and amendments or revisions to existing standards, which may be relevant to the Group,
have been published that are mandatory for later accounting periods and which have not been adopted early. These are:
IAS 1 Financial Statement Presentation – Presentation of Items of Other Comprehensive Income effective 1 July 2012
IFRS 9 Financial Instruments: Classification and Measurement effective 1 January 2015
IFRS 10 Consolidated Financial Statements effective 1 January 2014
IFRS 11 Joint Arrangements effective 1 January 2014
IFRS 12 Disclosure of Interests in Other Entities effective 1 January 2014
IFRS 13 Fair Value Measurement effective 1 January 2013
With the exception of the following matters, the Group has determined that the impact of these changes on its financial
statements will not be material. The adoption of IFRS 11 will require the Group’s joint ventures to be equity accounted.
Presently these arrangements are proportionately consolidated. The Group is currently assessing the impact of IFRS 10 on its
financial statements and the effect of this, if any, has yet to be determined.
The standards, amendments or revisions are effective for annual periods beginning on or after the dates noted above.
Basis of consolidation 
The consolidated financial statements incorporate the financial statements of the Company, its subsidiaries and the special
purpose vehicles (“SPVs”) controlled by the Company, made up to 31 December each year. Control is achieved where the
Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefit from its
activities. The Group has acquired investment properties through the purchase of SPVs. In the opinion of the Directors, these
transactions did not meet the definition of a business combination as set out in IFRS 3 “Business Combinations”. Accordingly
the transactions have not been accounted for as an acquisition of a business and instead the financial statements reflect the
substance of the transactions, which is considered to be the purchase of investment property and investment property under
construction. The results of subsidiaries acquired or disposed of during the year are included in the Income Statement from
the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made
to the financial statements of entities acquired to bring the accounting policies into line with those used by the Group. All
intra-group transactions, balances, income and expenditure are eliminated on consolidation.
Goodwill 
Goodwill represents the excess of the cost of a business combination over the interest in the fair value of identifiable assets,
liabilities and contingent liabilities acquired. Cost comprises the fair values of assets given, liabilities assumed and equity
instruments issued. For business combinations after 1 January 2010, transaction costs associated with an acquisition are
expensed as incurred.
Goodwill is capitalised with any impairment in carrying value being charged to the Income Statement. Impairment tests on
goodwill are undertaken annually at the financial year end. Impairment charges are included in the administrative expenses line
item in the Income Statement. An impairment loss recognised for goodwill is not reversed.
Where the interest in the fair value of identifiable assets, liabilities and contingent liabilities acquired exceeds the cost of the
combination, the resulting negative goodwill is recognised immediately in the Income Statement.
Joint ventures 
A joint venture is a contractual arrangement whereby two or more parties undertake economic activity that is subject to joint
control. The Group undertakes its joint ventures through jointly controlled entities. The Group financial statements include the
Group’s proportionate share of these entities’ assets, liabilities, income and expenditure on a line by line basis from the date on
which joint control commences to the date on which joint control ceases. Any premium paid for an interest in a jointly
controlled entity above the fair value of the Group’s share of identifiable assets, liabilities and contingent liabilities is accounted
for in accordance with the goodwill accounting policy. Notes to the Financial Statements – continued
38
Revenue recognition 
(a) Property investment 
Rental income from operating leases is recognised in income on a straight-line basis over the lease term. Rental increases
calculated with reference to an underlying index and the resulting rental income (“contingent rents”) are recognised in income
as they are determined.
Incentives for lessees to enter into lease agreements are spread evenly over the lease term, even if the payments are not made
on such a basis. The lease term is the non-cancellable period of the lease, together with any further term for which the tenant
has the option to continue the lease, where, at the inception of the lease, the directors are reasonably certain that the tenant
will exercise that option.
Premiums received to terminate leases are recognised in the Income Statement as they arise.
(b) Roslogistics 
Logistics revenue, excluding value added tax, is recognised as services are provided.
(c) Raven Mount 
The sales of completed properties and land are recognised on legal completion.
Taxation 
The Company is a limited company registered in Guernsey, Channel Islands, and is exempt from taxation. The Group is liable
to Russian, UK and Cypriot tax arising on the results of its Russian, UK and Cypriot operations.
The tax expense represents the sum of the tax currently payable and deferred tax.
(a) Current tax 
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit (or loss) as reported in the
Income Statement because it excludes items of income and expenditure that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that
have been enacted or substantively enacted by the balance sheet date.
(b) Deferred tax 
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is
accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against
which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities
in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Unrecognised
deferred tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable
that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset
realised, based on tax rates that have been enacted or substantively enacted at the reporting date. Deferred tax is charged or
credited in the Income Statement, except when it relates to items charged or credited directly to equity, in which case the
deferred tax is also dealt with in equity.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. Notes to the Financial Statements – continued
39
(c) Value added tax 
Revenue, expenditure, assets and liabilities are recognised net of the amount of value added tax except: 
Where the value added tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
which case the value added tax is recognised as part of the cost of acquisition of the asset or as part of the expenditure
item as applicable; and 
Receivables and payables that are stated with the amount of value added tax included.
The net amount of value added tax recoverable from, or payable to, the taxation authority is included as part of receivables or
payables, as appropriate, in the balance sheet.
Investment property and investment property under construction 
Investment property comprises completed property and property under construction held to earn rentals or for capital
appreciation or both. Investment property comprises both freehold and leasehold land and buildings.
Investment property is measured initially at its cost, including related transaction costs. After initial recognition, investment
property is carried at fair value. The Directors assess the fair value of investment property based on independent valuations
carried out by their appointed property valuers or on independent valuations prepared for banking purposes. The Group has
appointed Jones Lang LaSalle as property valuers to prepare valuations on a semi-annual basis. Valuations are undertaken in
accordance with appropriate sections of the current Practice Statements contained in the Royal Institution of Chartered
Surveyors Appraisal and Valuation Standards, 7th Edition (the “Red Book”). This is an internationally accepted basis of
valuation. Gains or losses arising from changes in the fair value of investment property are included in the Income Statement in
the period in which they arise. For the purposes of these financial statements, in order to avoid double counting, the assessed
fair value is reduced by the present value of any tenant incentives and contracted rent uplifts that are spread over the lease
term and increased by the carrying amount of any liability under a head lease that has been recognised in the balance sheet.
Borrowing costs that are directly attributable to the construction of investment property are included in the cost of the property
from the date of commencement of construction until construction is completed.
Leasing (as lessors) 
Leases where the Group does not transfer substantially all the risks and benefits incidental to ownership of the asset are
classified as operating leases. All of the Group’s properties are leased under operating leases and are included in investment
property in the balance sheet.
Inventory 
Inventory is stated at the lower of cost and net realisable value. Such inventory includes land, work in progress and completed
units that are available for sale.
Financial assets 
The Group classifies its financial assets into one of the categories discussed below, depending upon the purpose for which the
asset was acquired. The Group has not classified any of its financial assets as held to maturity.
(a) Fair value through profit or loss 
This category comprises only in-the-money derivatives (see financial liabilities policy for out-of-the-money derivatives), which
are carried at fair value with changes in the fair value recognised in the income statement in finance income or finance
expense.
(b) Loans and receivables 
These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. In the
case of the Group, loans and receivables comprise trade and other receivables, loans and cash and short term deposits. Notes to the Financial Statements – continued
40
Loans and receivables are initially recognised at fair value, plus transaction costs that are directly attributable to their
acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for
impairment. 
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference
between the asset’s carrying amount and the present value of estimated future cash flows. The amount of the impairment loss
is recognised in administrative expenses. If in a subsequent period the amount of the impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment is recognised, the previously recognised
impairment loss is reversed. Any such reversal of an impairment loss is recognised in the income statement.
Cash and short term deposits include cash in hand, deposits held at call with banks and other short term highly liquid
investments with original maturities of three months or less.
Financial liabilities and equity instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its
liabilities. Equity comprises ordinary shares and listed warrants.
The Group classifies its financial liabilities into one of the categories listed below.
(a) Fair value through profit or loss 
This category comprises only out-of-the-money derivatives, which are carried at fair value with changes in the fair value
recognised in the income statement in finance income or finance expense.
(b) Other financial liabilities 
Other financial liabilities include interest bearing loans, trade payables (including rent deposits and retentions under
construction contracts), preference shares and other short-term monetary liabilities.Trade payables and other short-term
monetary liabilities are initially recorded at fair value and subsequently carried at amortised cost using the effective interest rate
method.
Interest bearing loans and preference shares are initially recorded at fair value net of direct issue costs and subsequently
carried at amortised cost using the effective interest rate method. Finance charges, including premiums payable on settlement
or redemption and direct issue costs, are charged to the income statement using the effective interest rate method.
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense
relating to a provision is presented in the income statement net of any reimbursement.
Own shares held 
Own equity instruments which are acquired are recognised at cost and deducted from equity. No gain or loss is recognised in
the income statement on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Any difference
between the carrying amount and the consideration is recognised in retained earnings.
Share-based payments and other long term incentives
The Group rewards its key management and other senior employees by a variety of means many of which are settled by
ordinary or preference shares of the Company, these include the Executive Share Option Schemes, the Bonus Plan and the
Combined Bonus and Long Term Incentive Scheme 2012 to 2014. Notes to the Financial Statements – continued
41
Awards linked to or settled by ordinary shares
These are accounted for as equity-settled transactions in accordance with IFRS 2 Share-based Payment. The cost of
equity-settled transactions is measured by reference to the fair value at the date at which they are granted. Fair value is
determined by an external valuer, using an appropriate pricing model. In valuing equity-settled transactions, no account is
taken of any service and performance conditions (vesting conditions), other than performance conditions linked to the price of
the shares of the Company (market conditions). Any other conditions, which are required to be met in order for an employee to
become fully entitled to an award are considered to be non-vesting conditions. Like market conditions, non-vesting conditions
are taken into account in determining the fair value at grant date.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which
the performance and service conditions are fulfilled. The cumulative expense which is recognised at each reporting date until
the vesting date, reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of
equity instruments that will ultimately vest. The income statement expense or credit for a period represents the movement in
cumulative expense recognised at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions where vesting is
conditional upon a market or non-vesting condition, which are treated as vesting irrespective of whether or not the market or
non-vesting condition is satisfied, provided that all other performance and service conditions are satisfied.
Where an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense not yet
recognised for the award is recognised immediately. This includes any award where non-vesting conditions within the control of
either the entity or the employee are not met.
Awards linked to or settled by preference shares
These awards are accounted for under IAS 19 Employee Benefits whereby the Group estimates the cost of awards using the
projected unit credit method, which involves estimating the future value of the preference shares at the vesting date and the
probability of the awards vesting. The resulting expense is charged to the income statement over the performance period and
the liability is remeasured at each balance sheet date.
Foreign currency translation 
(a) Functional and presentation currency 
Items included in the financial statements of each Group entity are measured in the currency of the primary economic
environment in which the entity operates (the “functional currency”). For the Company, the directors consider this to be
Sterling. The presentation currency of the Group is United States Dollars, which the directors consider to be the key currency
for the Group’s operations as a whole.
(b) Transactions and balances 
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income
statement. Non-monetary assets and liabilities are translated using exchange rates at the date of the initial transaction or when
their fair values are reassessed.
(c) On consolidation 
The results and financial position of all the Group entities that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
(i) assets and liabilities for each balance sheet are translated at the closing rate at the date of the balance sheet;
(ii) income and expenditure for each income statement are translated at the average exchange rate prevailing in the period;
and
(iii) all resulting exchange differences are recognised in other comprehensive income. Notes to the Financial Statements – continued
42
On consolidation, the exchange differences arising from the translation of the net investment in foreign entities are recognised
in other comprehensive income. When a foreign entity is sold, such exchange differences are recognised in the Income
Statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity
are treated as assets and liabilities of the foreign entity and translated at the closing rate.
Dividends 
Dividends to the Company’s ordinary shareholders are recognised when they become legally payable. In the case of interim
dividends, this is when declared by the directors. In the case of final dividends, this is when they are approved by the
shareholders at an AGM.
3. Critical accounting estimates and judgements
The Group makes certain estimates and judgements regarding the future. Estimates and judgements are continually evaluated
and are based on historical experience as adjusted for current market conditions and other factors. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and judgements that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined
below.
Judgements other than estimates 
In the process of applying the Group’s accounting policies the following are considered to have the most significant effect on
the amounts recognised in the consolidated financial statements:
(a) Acquisitions
Properties can be acquired through the corporate acquisition of a subsidiary company. At the time of acquisition, the Group
considers whether the acquisition represents the acquisition of a business. The Group accounts for the acquisition as a
business combination where an integrated set of activities is acquired in addition to the property. More specifically,
consideration is made of the extent to which significant processes are acquired and the extent of ancillary services provided by
the subsidiary.
When the acquisition of a subsidiary does not represent a business, it is accounted for as an acquisition of a group of assets
and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based on their relative fair values, and
no goodwill or deferred tax is recognised.
(b) Recognition of deferred tax assets
The recognition of deferred tax assets is based upon whether it is probable that sufficient and suitable taxable profits will be
available in the future, against which the reversal of temporary differences can be deducted. Recognition, therefore, involves
judgement regarding the future financial performance of the particular legal entity or tax group in which the deferred tax asset
has been recognised.
(c) Acquisitions of investment property
The consideration payable in respect of each acquisition is dependent upon certain future events. In calculating the cost of
each acquisition the Group has assessed the most probable outcome as at the balance sheet date. These amounts are
reconsidered annually at each year end. The assessments include consideration of the future rental levels and costs of
construction of a property as well as the terms of the legal agreements governing each acquisition. 
Based on these factors management will consider whether a liability or a contingent liability should be recognised or disclosed
at the balance sheet date.
Estimates 
(a) Valuation of investment property and investment property under construction 
The best evidence of fair value is current prices in an active market for similar lease and other contracts. In the absence of
such information, the Group determines the amount within a range of reasonable, fair value estimates. In making its judgement
the Group considers information from a variety of sources and engages external, professional advisers to carry out third party Notes to the Financial Statements – continued
43
valuations of its properties. These are completed in accordance with appropriate sections of the current Practice Statements
contained in the Royal Institution of Chartered Surveyors Appraisal and Valuation Standards, 7th Edition (the “Red Book”). This
is an internationally accepted basis of valuation. 
In completing these valuations the valuers use their market knowledge and professional judgement and consider the following:
(i) current prices in an active market for properties of a different nature, condition or location (or subject to different lease or
other contracts), adjusted to reflect those differences;
(ii) recent prices of similar properties in less active markets, with adjustments to reflect any changes in economic conditions
since the date of the transactions occurred at those prices; and
(iii) discounted cash flow projections based on reliable estimates of future cash flows, derived from the terms of any existing
lease or other contracts and (where possible) from external evidence such as current market rents for similar properties in
the same location and condition, and using discount rates that reflect current market assessments of the uncertainty in
the amount and timing of cash flows. 
All of the above require the valuers to make estimates and assumptions. In our market, where transactional activity is minimal,
the valuers are required to use a greater degree of estimation or judgement than in a market where comparable transactions
are more readily available.
(b) Income tax 
As part of the process of preparing its financial statements, the Group is required to estimate the provision for income tax in
each of the jurisdictions in which it operates. This process involves an estimation of the actual current tax exposure, together
with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These
differences result in deferred tax assets and liabilities, which are included in the balance sheet.
Russian tax legislation is subject to varying interpretations and changes, which may occur frequently. The interpretation of
legislation that the Group applies to its transactions and activities may be challenged by the relevant regional and federal
authorities. Additionally there may be inconsistent interpretation of tax regulations by various authorities, creating uncertainties
in the taxation environment in Russia. Fiscal periods remain open to review by the authorities for the three calendar years
preceding the years of review and in some circumstances may cover a longer period. Additionally, there have been instances
where tax regulations have taken effect retrospectively.
Significant judgement is required in determining the provision for income tax and the recognition of deferred tax assets and
liabilities.
(c) Provisions
The provision relating to the ongoing litigation in CJSC Toros (see note 24) requires the estimation of the likely outcome of the
legal proceedings. In making the estimate, management has taken account of advice received from its legal advisors.
4. Segmental information 
The Group has three operating segments, which are managed and report independently to the Board of the Group. These
comprise:
Property investment – acquire, develop and lease commercial property in Russia 
Roslogistics – provision of warehousing, transport, customs brokerage and related services in Russia 
Raven Mount – sale of residential property in the UK 
Financial information relating to Property Investment is provided to the Board on a property by property basis. The information
provided is gross rentals, operating costs, net operating income, revaluation gains and losses and where relevant the profit or
loss on disposal of an investment property. The individual properties have similar economic characteristics and are aggregated
into a single reporting segment. Notes to the Financial Statements – continued
44
Information about Raven Mount provided to the Board comprises the gross sale proceeds, inventory cost of sales and gross
profit, including the share of profits or losses of its joint venture.
Roslogistics is an independently managed business and the Board is presented with turnover, cost of sales and operating
profits or losses after deduction of administrative expenses.
Administrative expenses and foreign currency gains or losses are reported to the Board by segment. Finance income and
finance expense are not reported to the Board on a segment basis. Sales between segments are eliminated prior to provision
of financial information to the Board.
For the balance sheet, segmental information is provided in relation to investment property, inventory, cash balances and
borrowings. Whilst segment liabilities includes loans and borrowings, segment loss does not include the related finance costs.
If such finance costs were included in segment profit or loss, the profit from Property Investment would have decreased by
US$58,446k (2011: US$41,279k) and the loss from Raven Mount increased by US$20k (2011: US$408k). Aggregate segment
profit would have decreased by US$58,466k (2011: US$41,687k). Notes to the Financial Statements – continued
45
(a) Segmental information for the year ended and as at 31 December 2012 
Year ended 31 December 2012
Property Raven Segment Central
Investment Roslogistics Mount T otal Overhead T otal
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Gross revenue 187,754 23,059 23,394 234,207 – 234,207
Operating costs/cost of sales (56,961) (9,651) (21,742) (88,354) – (88,354)
Inventory write down – – (9,371) (9,371) – (9,371)
Net operating income 130,793 13,408 (7,719) 136,482 – 136,482
Administrative expenses
Running general & administration 
expenses (15,327)(3,202)(2,474)(21,003)(8,476)(29,479)
Other acquisition/abortive project costs –––– (1,793) (1,793)
Listing costs ––––––
Depreciation (1,203)(496)(7)(1,706)–(1,706)
Share-based payments and other 
long term incentives (3,769) – – (3,769) (12,840) (16,609)
Foreign currency (losses)/profits (2,935) 468 – (2,467) – (2,467)
107,559 10,178 (10,200) 107,537 (23,109) 84,428
Loss on disposal of investment 
property under construction ––––––
Unrealised profit on revaluation of 
investment property 68,055 – – 68,055 – 68,055
Unrealised loss on revaluation of 
investment property under 
construction (3,696)––(3,696)–(3,696)
Segment profit/(loss) 171,918 10,178 (10,200) 171,896 (23,109) 148,787
Finance income 6,666
Finance expense (92,613)
Profit before tax 62,840
As at 31 December 2012
Property Raven
Investment Roslogistics Mount Total
US$’000 US$’000 US$’000 US$’000
Assets 
Investment property 1,495,673 – – 1,495,673
Investment property under construction 149,450 – – 149,450
Inventory ––30,17330,173
Cash and short term deposits 175,551 2,272 13,874 191,697
Segment assets 1,820,674 2,272 44,047 1,866,993
Other non-current assets 98,102
Other current assets 87,976
Total assets 2,053,071
Segment liabilities 
Interest bearing loans and borrowings 767,057 – – 767,057
Capital expenditure 
Payments for acquisition of subsidiary undertakings 
and investment property under construction 305,277 – – 305,277 Notes to the Financial Statements – continued
46
(b) Segmental information for the year ended and as at 31 December 2011 
Year ended 31 December 2011
Property Raven Segment Central
Investment Roslogistics Mount T otal Overhead T otal
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Gross revenue 124,229 24,599 13,942 162,770 – 162,770
Operating costs/cost of sales (43,280) (13,870) (11,512) (68,662) – (68,662)
Inventory write down – – (2,454) (2,454) – (2,454)
Net operating income 80,949 10,729 (24) 91,654 – 91,654
Administrative expenses
Running general & administration 
expenses (12,848)(2,982)(2,986)(18,816)(6,122)(24,938)
Other acquisition/abortive project costs ––––––
Listing costs –––– (548) (548)
Depreciation (650)(1,086)(18)(1,754)–(1,754)
Share-based payments and other 
long term incentives (1,502) – – (1,502) (4,597) (6,099)
Foreign currency losses (35) (527) – (562) – (562)
65,914 6,134 (3,028) 69,020 (11,267) 57,753
Loss on disposal of investment 
property under construction (1,158) – – (1,158) – (1,158)
Unrealised profit on revaluation of 
investment property 133,062 – – 133,062 – 133,062
Unrealised profit on revaluation of 
investment property under 
construction 10,611––10,611–10,611
Segment profit/(loss) 208,429 6,134 (3,028) 211,535 (11,267) 200,268
Finance income 2,197
Finance expense (73,549)
Profit before tax 128,916
As at 31 December 2011
Property Raven
Investment Roslogistics Mount Total
US$’000 US$’000 US$’000 US$’000
Assets 
Investment property 1,145,090 – – 1,145,090
Investment property under construction 101,458 – – 101,458
Inventory ––51,15551,155
Cash and short term deposits 173,874 1,306 6,646 181,826
Segment assets 1,420,422 1,306 57,801 1,479,529
Other non-current assets 92,480
Other current assets 43,661
Total assets 1,615,670
Segment liabilities 
Interest bearing loans and borrowings 559,259 – 1,986 561,245
Capital expenditure 
Payments for investment property under construction 76,928 – – 76,928
In 2012 and 2011 there were no single customers accounting for more than 10% of Group revenues.  Notes to the Financial Statements – continued
47
5. Gross Revenue
2012 2011
US$’000 US$’000
Rental and related income 187,754 124,229
Proceeds from the sale of inventory property 23,394 13,942
Logistics 23,059 24,599
234,207 162,770
The Group’s leases typically include annual rental increases (“contingent rents”) based on a consumer price index in Europe or
the USA, which are recognised in income as they arise. Contingent rents included in rental income for the year amounted to
US$1,242k (2011: US$845k).
Details of the Group’s contracted future minimum lease receivables are detailed in note 37.
6. Administrative expenses
(a) Total administrative expenses 
2012 2011
US$’000 US$’000
Employment costs 14,481 12,475
Directors’ remuneration 4,500 3,415
Office running costs and insurance 4,853 3,577
Travel costs 1,700 1,562
External administrator fees 265 82
Auditors’ remuneration 1,302 972
Abortive project costs 793 –
Legal and professional 2,775 2,115
Depreciation 1,706 1,754
Loss on disposal of plant and equipment – 337
Listing costs – 548
Registrar costs and other administrative expenses 335 131
Share of operating expenditure of joint ventures 268 272
32,978 27,240
(b) Fees for audit and other services provided by the Group’s auditor 
2012 2011
US$’000 US$’000
Audit services 1,070 800
Audit related assurance services 71 56
Audit and audit related assurance services 1,141 856
Other fees:
Taxation services 141 116
Other services 20 –
161 116
Total fees 1,302 972
In addition the Group incurred a further US$705k (2011: US$34k) of corporate finance fees in respect of acquisitions and the
placing of new preference shares, which are included in the cost of the acquisition or carrying value of the preference shares.  Notes to the Financial Statements – continued
48
7. Finance income and expense
2012 2011
US$’000 US$’000
Finance income
Income from cash and short term deposits 2,388 1,409
Interest income on loans receivable 109 788
Total interest income on financial assets not at fair value through profit or loss 2,497 2,197
Change in fair value of open forward currency derivative financial instruments 1,800 –
Change in fair value of open interest rate derivative financial instruments 2,229 –
Profit on maturing forward currency derivative financial instruments 140 –
Finance income 6,666 2,197
Finance expense
Interest expense on loans and borrowings measured at amortised cost 51,135 38,898
Interest expense on preference shares 33,533 29,261
Total interest expense on financial liabilities not at fair value through profit or loss 84,668 68,159
Loss on maturing forward currency derivative financial instruments – 401
Change in fair value of open forward currency derivative financial instruments 614 2,200
Change in fair value of open interest rate derivative financial instruments 7,331 2,784
Loss on closure of interest rate derivative financial instruments – 5
Finance expense 92,613 73,549
Included in interest expense on loans and borrowings is US$3.7 million (2011: US$3.9 million) relating to the amortisation of
costs incurred in originating the loans. Included in interest expense on preference shares is US$1.1 million (2011:
US$1.1 million) relating to the accretion of premiums payable on redemption of preference shares and the amortisation of
costs incurred in issuing preference shares.
8. Tax
2012 2011
US$’000 US$’000
The tax expense for the year comprises: 
Current taxation 3,913 3,760
Deferred taxation:
Deferred tax expense relating to the origination and reversal of temporary 
differences (note 26) 16,548 36,744
Charge on unrealised foreign exchange movements in loans 12,270 –
Adjustments recognised in the period for current tax of prior periods 695 49
Tax charge 33,426 40,553
The charge for the year can be reconciled to the profit per the income statement as follows:
2012 2011
US$’000 US$’000
Profit before tax 62,840 128,916
Tax at the Russian corporate tax rate of 20% 12,568 25,783
Tax effect of income not subject to tax and non-deductible expenses 26,979 15,738
Tax on dividends and other inter company gains 480 807
Tax effect of financing arrangements (2,011) (14,181)
Movement on unprovided deferred tax on tax losses (540) 12,357
Effect of acquisitions in the year (4,745) –
Adjustments recognised in the period for current tax of prior periods 695 49
33,426 40,553 Notes to the Financial Statements – continued
49
9. Earnings measures
In addition to reporting IFRS earnings the Group adopts the European Public Real Estate Association (“EPRA”) earnings
measure, as set out in their Best Practice Policy Recommendations document issued in August 2011 and also reports its own
underlying earnings measure.
EPRA earnings 
The EPRA earnings measure excludes investment property revaluations and gains or losses on disposal of investment
property, intangible asset movements, gains and losses on derivative financial instruments and related taxation.
Underlying earnings 
Underlying earnings consists of the EPRA earnings measure, with additional group adjustments. The Directors consider
underlying earnings to be a key performance measure, as this is the measure used by Management to assess the return on
holding investment assets for the long term. Adjustments include share-based payments and other long term incentives, the
accretion of premiums payable on redemption of preference shares, material non-recurring items, depreciation and
amortisation of loan origination costs.
The calculation of basic and diluted earnings per share is based on the following data: 
2012 2011
Earnings US$’000 US$’000
Earnings for the purposes of basic and diluted earnings per share being the 
net profit for the year prepared under IFRS 29,414 88,363
Adjustments to arrive at EPRA earnings: 
Loss on disposal of investment property under construction – 1,158
Unrealised profit on revaluation of investment property (68,055) (133,062)
Unrealised loss/(profit) on revaluation of investment property under construction 3,696 (10,611)
(Profit)/loss on maturing foreign currency derivative financial instruments (note 7) (140) 401
Change in fair value of open forward currency derivative financial instruments (note 7) (1,186) 2,200
Loss on closure of interest rate derivative financial instruments (note 7) – 5
Change in fair value of open interest rate derivative financial instruments (note 7) 5,102 2,784
Movement on deferred tax thereon 18,981 33,444
Adjusted EPRA earnings (12,188) (15,318)
Inventory write down (note 17) 9,371 2,454
Loss on disposal of plant and equipment (note 6a) – 337
Share-based payments and other long term incentives 16,609 6,099
Premium on redemption of preference shares and amortisation of issue costs (note 7) 1,109 1,094
Listing costs (note 6a) – 548
Depreciation (note 6a) 1,706 1,754
Amortisation of loan origination costs (note 7) 3,661 3,979
Tax charge on unrealised foreign exchange movements in loans 9,999 –
Underlying earnings 30,267 947 Notes to the Financial Statements – continued
50
2012 2011
Number of shares No ’000 No ’000
Weighted average number of ordinary shares for the purposes of basic EPS 
(excluding own shares held) 570,834 528,185
Effect of dilutive potential ordinary shares: 
Listed warrants (note 28) 19,532 48,269
ERS (note 32) 1,755 3,102
LTIP (note 32) 5,384 5,361
Weighted average number of ordinary shares for the purposes of diluted 
EPS (excluding own shares held) 597,505 584,917
2012 2011
Cents Cents 
EPS basic 5.15 16.73
Effect of dilutive potential ordinary shares: 
Listed warrants (0.18) (1.40)
ERS (0.01) (0.08)
LTIP (0.04) (0.14)
Diluted EPS (cents) 4.92 15.11
EPRA EPS basic (cents) (2.14) (2.90)
Effect of dilutive potential ordinary shares: 
Listed warrants ––
ERS ––
LTIP ––
EPRA EPS diluted (cents) (2.14) (2.90)
Underlying EPS basic (cents) 5.30 0.18
Effect of dilutive potential ordinary shares: 
Listed warrants (0.18) (0.02)
ERS (0.01) –
LTIP (0.05) –
Underlying EPS diluted (cents) 5.06 0.16
10. Ordinary dividends
2012 2011
US$’000 US$’000
Declared and paid during the year on ordinary shares: 
Final dividend for 2011 nil pence (2010: 1 pence) – 8,511
Interim dividend for 2012 nil pence (2011: 1.25 pence) – 7,844
– 16,355
The Company did not declare a final dividend for the year ended 31 December 2011 or an interim dividend for 2012 and
instead implemented two tender offer buy backs of ordinary shares.
In the place of a final dividend for 2011 the Company implemented a tender offer buy back of ordinary shares on the basis of
1 in every 40 shares held at a tender price of 70 pence per share, the equivalent of a final dividend of 1.75 pence per share.
Instead of an interim dividend for 2012 the Company implemented a tender offer buy back of ordinary shares on the basis of
1 in every 49 shares at a tender price of 75 pence per share, the equivalent of a dividend of 1.5 pence per share. Notes to the Financial Statements – continued
51
11. Investment property
2012 2011
US$’000 US$’000
Market value at 1 January 1,154,490 942,950
Property acquisitions (note 38) 268,623 –
Transfer from investment property under construction (note 12) – 50,412
Property improvements and movement in completion provisions 6,260 27,016
Disposals – (8,350)
Unrealised profit on revaluation 72,947 142,462
Market value at 31 December 1,502,320 1,154,490
Tenant incentives and contracted rent uplift balances (14,292) (9,400)
Head lease obligations (note 25) 7,645 –
Carrying value at 31 December 1,495,673 1,145,090
Revaluation movement in the year
Gross revaluation 72,947 142,462
Effect of tenant incentives and contracted rent uplift balances (4,892) (9,400)
Revaluation reported in the Income Statement 68,055 133,062
It is the Group’s policy to carry investment property at fair value in accordance with IAS 40 “Investment Property”. The fair
value of the Group’s investment property at 31 December 2012 has been arrived at on the basis of market valuations carried
out by Jones Lang LaSalle (“JLL”), external valuers to the Group. JLL have consented to the use of their name in these
financial statements.
The valuations used by the Directors in these financial statements have been carried out in accordance with The Royal
Institution of Chartered Surveyors Valuation Standards, 7th Edition (the “Red Book”). The definition of market value is “the
estimated amount for which an asset should exchange on the date of valuation between a willing buyer and willing seller in an
arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without
compulsion”.
The following assumptions were used in determining the valuations, which were specific to the Group: 
No allowances have been made for any expenses of realisation or for taxation which might arise in the event of a disposal
of a property; 
The market values reported are gross of purchasers’ costs, which would be incurred on the sale of assets as this is the
recognised valuation approach in Russia; and 
No account is taken of the future effect of any index based rent uplifts.
At 31 December 2012 the Group has pledged investment property with a value of US$1,445 million (2011: US$1,049 million)
to secure banking facilities granted to the Group (note 22). Notes to the Financial Statements – continued
52
12. Investment property under construction
2012 2011
US$’000 US$’000
Market value at 1 January 101,458 106,741
Property acquisitions (note 38) 23,020 –
Costs incurred 22,705 43,008
Disposals – (3,300)
Effect of foreign exchange rate changes 3,633 (5,190)
Transfer to investment property (note 11) – (50,412)
Unrealised (loss)/profit on revaluation (3,696) 10,611
Market value at 31 December 147,120 101,458
Head lease obligations (note 25) 2,330 –
Carrying value at 31 December 149,450 101,458
Market value at 31 December comprises: 
Additional phases of completed investment property 85,600 54,000
Land bank 61,520 47,458
At 31 December 147,120 101,458
Revaluation movement in the year
Unrealised profit on revaluation of assets carried at external valuations 12,031 10,611
Unrealised loss on revaluation of assets carried at directors’ valuation (15,727) –
(3,696) 10,611
Borrowing costs capitalised in the year amounted to US$0.5 million (2011: US$ nil).
Assets under construction and additional phases of completed investment property are valued by JLL. Assets under
construction are valued using the residual value method and additional phases of completed investment property on a
comparable sales basis, based on recent real estate transactions with similar characteristics and location to those assets.
There were no assets under construction at 31 December 2011 or 31 December 2012.
The Directors have valued the land bank based on JLL valuations or the amounts they consider they can achieve on a sale of
permitted land and land with access and infrastructure. The Directors also considered updated acquisition appraisals, the key
assumptions being developer’s required returns, market rents and yields on completed properties. On this basis the Directors
consider the fair value of the land bank not valued by JLL to be US$35.6 million, which equates to an average price of
US$14.5 per square metre (2011: US$16.3).
At 31 December 2012 the Group has pledged investment property under construction with a value of US$14.2 million (2011:
US$11.3 million) to secure banking facilities granted to the Group (note 22).
13. Goodwill
Roslogistics Raven Mount T otal
US$’000 US$’000 US$’000
Balance at 1 January 2011 5,383 8,115 13,498
Effect of foreign exchange rate changes – (23) (23)
Balance at 31 December 2011 5,383 8,092 13,475
Effect of foreign exchange rate changes – 140 140
Balance at 31 December 2012 5,383 8,232 13,615
Goodwill acquired through the Raven Mount and Roslogistics business combinations has been allocated for impairment
purposes to their operating segments. These represent the lowest level within the Group at which goodwill is monitored for
internal management purposes. The recoverable amount of goodwill has been determined based on value in use calculations
using cash flow projections and project appraisals approved for internal management reporting and discounted at rates
appropriate to each of the segments. Notes to the Financial Statements – continued
53
14. Investment in subsidiary undertakings
The principal subsidiary undertakings of Raven Russia Limited, all of which have been included in these consolidated financial
statements, are as follows: 
Proportion of 
ownership interest
Name Country of incorporation 2012 2011
CJSC Kulon Development Russia 100% 100% 
Fenix LLC Russia 100% 100% 
Petroestate LLC Russia 100% 100% 
EG Logistics LLC Russia 100% 100% 
CJSC Kulon Istra Russia 100% 100% 
Soyuz-Invest LLC Russia 100% 100% 
Omega LLC Russia 100% 100% 
Terramarket LLC Russia 100% 100% 
Piramida LLC Russia 100% 100% 
CJSC Noginsk Vostok Russia 100% 100% 
Resource Economia LLC Russia 100% 100% 
Kulon Spb LLC Russia 100% 100% 
Logopark Don LLC Russia 100% 100% 
Logopark Ob LLC Russia 100% 100% 
Delta LLC Russia 100% 100% 
CJSC Toros Russia 100% –
Dorfin Limited Cyprus 100% –
League LLC Russia 100% –
Roslogistics Holdings (Russia) Limited Cyprus 100% 100% 
Avalon Logistics Company LLC Russia 100% 100% 
Raven Mount Group Limited England 100% 100% 
Raven Russia Property Advisers Limited England 100% 100% 
Raven Russia (Service Company) Limited Guernsey 100% 100% 
The Group’s investment property and investment property under construction are held by its subsidiary undertakings. 
15. Investment in joint ventures
The principal jointly controlled entity of the Group is as follows: 
Proportion of 
ownership interest
Name Country of incorporation 2012 2011
Coln Park LLP England 50% 50% Notes to the Financial Statements – continued
54
The Group’s interest in each jointly controlled entity has been accounted for by proportionate consolidation. The aggregate
amounts recognised in the balance sheet and income statement were:
2012 2011
US$’000 US$’000
Non-current assets 17 30
Current assets 17,869 17,918
Current liabilities (611) (1,120)
Net assets 17,275 16,828
Income 8,896 8,094
Expenditure (8,449) (6,274)
447 1,820
16. Other receivables 
2012 2011
US$’000 US$’000
Loans receivable 1,591 4
VAT recoverable 7,177 5,217
Security deposit 4,862 2,345
Prepayments and other receivables 5,102 5,518
18,732 13,084
VAT recoverable arises through the payment of value added tax on construction of investment property, which will be
recovered through the offset of VAT paid on future revenue receipts or repayment direct from the taxation authority. VAT
recoverable has been split between current and non-current assets based on the Group’s assessment of when recovery will
occur.
17. Inventory
Land held
for Housing
development stock Total
US$’000 US$’000 US$’000
Balance at 1 January 2011 3,484 52,857 56,341
Costs incurred in the year 111 8,135 8,246
Cost of sales – (10,561) (10,561)
Inventory write down (2,116) (338) (2,454)
Effect of foreign exchange rate changes (26) (391) (417)
Balance at 31 December 2011 1,453 49,702 51,155
Costs incurred in the year 95 6,481 6,576
Cost of sales – (20,537) (20,537)
Inventory write down – (9,371) (9,371)
Effect of foreign exchange rate changes 67 2,283 2,350
Balance at 31 December 2012 1,615 28,558 30,173 Notes to the Financial Statements – continued
55
18. Trade and other receivables
2012 2011
US$’000 US$’000
Trade receivables 30,703 21,848
Prepayments 6,434 4,670
VAT recoverable 6,869 10,205
Tax recoverable 660 1,177
Loans receivable 64 2,483
Accrued income 26 40
Other receivables 42,260 3,238
87,016 43,661
Other receivables include the cash backed indemnity in respect of the provision more fully explained in note 24. 
19. Derivative financial instruments
2012 2011
US$’000 US$’000
Interest rate derivative financial instruments
Non-current assets 627 1,216
Non-current liabilities (9,103) (6,768)
Current liabilities (206) –
Forward currency derivative financial instruments 
Non-current assets 3,651 –
Current assets 960 –
Foreign currency embedded derivatives
Non-current liabilities – (2,200)
Current liabilities (400) –
The Group has entered into a series of interest rate derivative financial instruments to manage the interest rate and resulting
cash flow exposure from the Group’s banking facilities. The instruments have a notional value of US$647 million (2011:
US$517 million) and a weighted average fixed or capped rate of 1.9% (2011: 2.5%).
The Group had also entered into a series of forward currency derivative financial instruments to hedge Sterling interest
payments due to preference shareholders. The instruments have a notional amount of US$105.6 million, a weighted average
capped rate of $1.6 to £1 and quarterly maturities with the final instruments maturing on 18 December 2015.
Several of the Group’s leases incorporate collars and caps on US Dollar and Russian Rouble exchange rates. These have been
assessed as embedded derivatives and fair values calculated resulting in the liability disclosed above.
20. Cash and short term deposits
2012 2011
US$’000 US$’000
Cash at bank and on call 118,950 99,557
Short term deposits 72,747 82,269
191,697 181,826
Cash at bank and on call attracts variable interest rates, whilst short term deposits attract fixed rates but mature and re-price
over a short period of time. The weighted average interest rate at the balance sheet date is 1.42% (2011: 1.13%). Notes to the Financial Statements – continued
56
21. Trade and other payables
2012 2011
US$’000 US$’000
Investment property acquisition obligations 914 54
Trade and other payables 12,285 8,394
Construction payables 29,446 26,869
Advanced rentals 29,111 19,498
Tax payable 14,173 9,095
Head leases (note 25) 47 –
Other payables 6,973 6,667
92,949 70,577
22. Interest bearing loans and borrowings
2012 2011
US$’000 US$’000
Bank loans 
Loans due for settlement within 12 months 121,936 95,607
Loans due for settlement after 12 months 645,121 465,638
767,057 561,245
The Group’s borrowings have the following maturity profile:
On demand or within one year 121,936 95,607
In the second year 75,426 100,226
In the third to fifth years 438,648 252,609
After five years 131,047 112,803
767,057 561,245
The amounts above include unamortised loan origination costs of US$13.1 million (2011: US$11.7 million) and interest
accruals of US$4.1 million (2011: US$2.3 million). 
The principal terms of the Group’s interest bearing loans and borrowings on a weighted average basis are summarised below: 
As at 31 December 2012
Interest Maturity 
Rate % (years) US$’000
Secured on: 
Investment property and investment property under construction 7.3% 4.6 737,057
Unsecured 7.9%7.730,000
767,057
As at 31 December 2011 
Interest Maturity 
Rate % (years) US$’000
Secured on: 
Investment property and investment property under construction 7.15% 4.6 548,282
Inventory 2.50%0.41,979
Cash 2.85% 0.1 10,984
561,245 
The interest rates shown above are the weighted average all-in rates as at the balance sheet dates. Notes to the Financial Statements – continued
57
During the year there were the following changes to the Group’s financing arrangements:
The Group entered into a new facility of US$129 million to acquire, and is secured upon, Pushkino Logistics Park (see
note 38). The facility was fully drawn in the year, is for a 5 year term and has an effective cost to the Group of 5.85% over
US LIBOR.
US$44 million was drawn from a US$47.5 million facility from ZAO Raffieisen Bank secured upon the second phase of the
Klimovsk project. This facility has a margin of 7% over US LIBOR and a 10 year term. The remaining undrawn balance is
available until 24 April 2013.
The Group has completed and fully drawn an unsecured construction loan of US$30 million from DEG Bank. The facility has
an 8 year term and a 7.9% margin over US LIBOR.
The Group also acquired Sholokhovo (see note 38), a logistics park in Moscow, which was purchased with a fully drawn
stapled debt facility of US$ 21 million from ZAO Raffieisen Bank. This facility has a remaining term of 9 years and a margin of
6.45% over US LIBOR.
The Group has also successfully extended the HSH Nordbank facility secured on the Konstanta project for a further two years
at a margin of 6% over US LIBOR.
Finally, the Group has drawn a further US$38 million under the facility for the Shushari project and repaid in full the debt
facilities secured on the Southern project, the cash backed facility provided by Royal Bank of Scotland International and the
Barclays Bank facility secured on the Group’s UK inventory. Repayments under these facilities totalled US$24.6 million.
At 31 December 2012 the Group had undrawn loan facilities available of US$3.5 million (2011: US$38 million).
The Group has entered into hedging arrangements in respect of its interest rate exposure (note 19). US$422 million (2011:
US$335 million) of Group bank borrowings have been fixed with three years remaining (2011: three years) at a weighted
average swap rate of 1.86% (2011: 2.38%) and US$225 million (2011: US$186 million) capped at 1.93% (2011: 2.69%) for
three years (2011: four years). This gave a weighted average cost of debt to the Group of 7.3% (2011: 7.1%) at the year end.
23. Preference shares
2012 2011
US$’000 US$’000
Authorised share capital:
400,000,000 (2011: 400,000,000) preference shares of 1p each 5,981 5,981
2012 2011
Number Number
Issued share capital:
At 1 January 145,036,942 144,357,156
Issued in the year 48,414,250 –
Purchased (3,762,343) (2,000,000)
Disposal – 2,000,000
Scrip dividends 720,639 679,786
At 31 December 190,409,488 145,036,942
Shares in issue 194,171,831 145,036,942
Held by the Company’s Employee Benefit Trusts (3,762,343) –
At 31 December 190,409,488 145,036,942
The Company has issued preference shares, which entitle the holders to a cumulative dividend of 12% based on a par value
per share of £1. Notes to the Financial Statements – continued
58
On 26 June 2012 the Company issued and admitted to the Official List of the London Stock Exchange 48,414,250 new
preference shares under the terms of a placing and open offer. The new preference shares were issued at a price of
134 pence per share and rank pari passu with the other preference shares in issue. The trustees of one of the Company’s
Employee Benefit Trusts sold £5 million (US$8 million) of ordinary shares (see note 29) so that the Employee Benefit Trust could
acquire £5 million of new preference shares as part of the placing. The trustees will use these preference shares to satisfy in
part awards made under the Group’s 2012 Combined Bonus and Long Term Incentive Scheme, details of which are set out in
the Company’s Directors’ Remuneration Report and note 32.
In 2011 the trustees of one of the Company’s Employee Benefit Trusts sold ordinary shares and acquired preference shares
from an independent shareholder of Raven Russia. The trustees subsequently sold the preference shares. Following this the
Company moved the preference shares from AIM to the Official List of the London Stock Exchange.
24. Provisions
Provisions and trade and other receivables (note 18) reflect the ongoing litigation in CJSC Toros, the subsidiary company that
owns the Pushkino project, the defence of which is being conducted by the previous owner and for which the Group is
indemnified. Details of this case and the indemnity were given in the shareholder circular issued on 1 May 2012 and the claim
is for Roubles 827.4 million plus interest.
25. Other payables
2012 2011
US$’000 US$’000
Investment property acquisition obligations 2,929 2,929
Rent deposits 25,346 14,833
Head leases 9,928 –
Other payables 2,085 590
40,288 18,352
During the year the Group acquired leasehold properties that it classifies as investment property and investment property
under construction. Minimum lease payments due over the remaining term of the leases totalled US$30.6 million and have
a present value at 31 December 2012 of US$9.975 million.
26. Deferred tax
(a) Deferred tax assets
Tax losses Other Total
US$’000 US$’000 US$’000
Balance at 1 January 2011 61,020 199 61,219
Effect of foreign exchange rate changes (3,247) – (3,247)
On disposal of SPV (359) – (359)
Charge to income (1,394) (99) (1,493)
Credit to equity 1,874 – 1,874
Balance at 31 December 2011 57,894 100 57,994
Effect of foreign exchange rate changes 3,291 – 3,291
On disposal of SPV 1 – 1
Charge to income (8,477) (100) (8,577)
Balance at 31 December 2012 52,709 – 52,709
The Group has tax losses in Russia of US$232 million (2011: US$237 million) and tax losses in the UK of US$123 million
(2011: US$110 million) for which deferred tax assets have not been recognised. The losses in Russia expire in 10 years (2011:
10 years) whilst the UK losses do not have an expiry date.
Amounts credited to equity arise on the translation of loans, which comprise part of the net investment of the Group in foreign
entities. Notes to the Financial Statements – continued
59
(b) Deferred tax liabilities
Revaluation
Accelerated of
tax investment
allowances property Total
US$’000 US$’000 US$’000
Balance at 1 January 2011 16,158 20,556 36,714
Effect of foreign exchange rate changes (1,620) – (1,620)
On disposal of SPV (783) – (783)
Charge to income 11,881 23,370 35,251
Balance at 31 December 2011 25,636 43,926 69,562
Effect of foreign exchange rate changes 1,516 – 1,516
Charge to income 7,146 13,790 20,936
Balance at 31 December 2012 34,298 57,716 92,014
27. Share capital
2012 2011
US$’000 US$’000
Authorised ordinary share capital:
1,500,000,000 (2011: 1,500,000,000) ordinary shares of 1p each 27,469 27,469
Issued share capital:
At 1 January 11,208 10,196
Issued in the year for cash on warrant exercises (note 28) 155 1,012
Cancelled under tender offers (note 10) (232) –
At 31 December 11,131 11,208
2012 2011
Number Number
Issued share capital:
At 1 January 594,093,554 530,273,204
Issued in the year for cash on warrant exercises (note 28) 9,690,567 63,820,350
Cancelled under tender offers (note 10) (14,435,072) –
At 31 December 589,349,049 594,093,554
Of the authorised ordinary share capital at 31 December 2012, 28,140,153 (2011: 37,830,720) are reserved for warrants.
Details of own shares held are given in note 29.
28. Warrants
2012 2011
Number Number
At 1 January 37,830,720 101,651,070
Exercised in the year (note 27) (9,690,567) (63,820,350)
At 31 December 28,140,153 37,830,720
2012 2011
US$’000 US$’000 
At 1 January 1,985 6,033
Exercised in the year (note 27) (618) (4,048)
At 31 December 1,367 1,985
The Company has issued warrants, which entitle each holder to subscribe for ordinary shares in the Company at an exercise
price of 25 pence per share. The warrants expire on 25 March 2019.
In the period since 31 December 2012 199 warrants have been exercised. Notes to the Financial Statements – continued
60
29. Own shares held
2012 2011
Number Number
At 1 January 26,921,176 28,400,054
Acquired under a tender offer 12,858,824 4,406,122
Other acquisitions 82,535 5,185,054
Disposal (8,196,721) (4,035,054)
Cancelled (431,410) –
Allocation to satisfy bonus awards (note 32c) (4,185,000) (4,585,000)
Allocation to satisfy ERS options exercised (note 32a) (1,225,000) (2,450,000)
Allocation to satisfy LTIP options exercised (note 32a) (266,667) –
At 31 December 25,557,737 26,921,176
2012 2011
US$’000 US$’000
At 1 January (16,222) (12,241)
Acquired under a tender offer (13,928) (4,019)
Other acquisitions (132) (4,733)
Disposal 3,533 1,739
Cancelled 186 –
Allocation to satisfy bonus awards (note 32c) 1,804 1,976
Allocation to satisfy ERS options exercised (note 32a) 528 1,056
Allocation to satisfy LTIP options exercised (note 32a) 86 –
At 31 December (24,145) (16,222)
Allocations are transfers by the Company’s Employee Benefit Trusts to settle bonus awards made in the year and to satisfy
ERS and LTIP options exercised in the year following the vesting of the options. Details of outstanding ERS and LTIP options,
which are vested but unexercised, are given in note 32a.
The disposal in the year relates to the share transactions undertaken by one of the Company’s Employee Benefit Trusts more
fully explained in note 23. The disposal and other acquisition in 2011 also related to share transactions undertaken by one of
the Company’s Employee Benefit Trusts and the circumstances surrounding the disposal are more fully explained in note 23.
30. Equity
The following describes the nature and purpose of each component within equity:
Component Description and purpose
Share capital The amount subscribed for ordinary share capital at nominal value. 
Share premium The amount subscribed for ordinary share capital in excess of the nominal value. 
Warrants The consideration attributed to the subscription of warrants less associated costs of issuance. 
Own shares held The cost to the Company of acquiring the own shares held by the Company and its subsidiary
undertakings or Employee Benefit Trusts. 
Special reserve During 2005 and 2006 the Company applied to the Royal Court of Guernsey to reduce its share
capital by cancellation of its share premium at that time and creation of a special reserve, which is an
additional distributable reserve to be used for all purposes permitted under Guernsey Company law,
including buy back of shares and the payment of dividends. Notes to the Financial Statements – continued
61
Capital reserve The amount of any capital profits and losses, including gains and losses on the disposal of investment
properties (after taxation), increases and decreases in the fair value of investment properties held at
each period end, foreign exchange profits and losses on capital items, profits and losses on forward
currency financial instruments relating to capital items and deferred taxation on the increase in fair
value of investment properties. 
Translation reserve The amount of any gains or losses arising on the retranslation of net assets of overseas operations.
Retained earnings The amount of any profit or loss for the year after payment of dividend, together with the amount of
any equity-settled share-based payments, and the transfer of capital items described above.
31. Net asset value per share
2012 2011
US$’000 US$’000
Net asset value 688,962 668,760
Goodwill (13,615) (13,475)
Deferred tax on revaluation gains (note 26b) 57,716 43,926
Unrealised foreign exchange losses on preference shares 17,863 7,895
Fair value of interest rate derivative financial instruments (note 19) 8,682 5,552
Fair value of foreign exchange derivative financial instruments (note 19) (4,211) 2,200
Adjusted net asset value 755,397 714,858
Assuming exercise of all dilutive potential ordinary shares
– Listed warrants (note 28) 11,435 14,698
– ERS (note 32) ––
– LTIP (note 32) 3,568 3,515
Adjusted fully diluted net asset value 770,400 733,071
Number of ordinary shares (note 27) 589,349,049 594,093,554
Less own shares held (note 29) (25,557,737) (26,921,176)
563,791,312 567,172,378
Assuming exercise of all dilutive potential ordinary shares
– Listed warrants (note 28) 28,140,153 37,830,720
– ERS (note 32) 1,325,000 2,550,000
– LTIP (note 32) 8,779,279 9,045,946
– CBLTIS (note 32) 14,303,279 –
Number of ordinary shares assuming exercise of all potential ordinary shares 616,339,023 616,599,044
2012 2011
US$ US$
Net asset value per share 1.22 1.18
Fully diluted net asset value per share 1.14 1.11
Adjusted net asset value per share 1.34 1.26
Adjusted fully diluted net asset value per share 1.25 1.19
As the preference shares are considered to be capital for capital risk management (see note 35d) unrealised foreign exchange
movements on these have been adjusted when calculating adjusted NAV per share. Notes to the Financial Statements – continued
62
32. Share-based payments and other long term incentives
The Group utilises a number of different Share Schemes to reward and incentivise the Group’s executives and senior staff. The
Share Schemes operated in the year are as follows:
Executive Share Option Schemes (“ESOS”)
The Group operates two ESOS, the Employee Retention Scheme (“ERS”) and the Long Term Incentive Plan (“LTIP”). Both
schemes involved the grant of options over the Company’s ordinary shares by the Company’s Employee Benefit Trusts. The
ERS vested in full on the publication of the audited financial statements of the Company for the year ended 31 December
2010 and the ERS options do not have an exercise price. The LTIP options vest in three equal tranches, subject to
performance criteria, on 24 March 2012, 2013 and 2014. The LTIP options have an exercise price of 25p per option and the
first tranche vested in full on 24 March 2012. The performance criteria for each tranche are based on meeting a target of total
shareholder return of 7.5% over UK RPI. Both the ERS and LTIP schemes are closed and further awards cannot be made
under either scheme. Awards made under the ERS and LTIP have been accounted for in accordance with the Group’s
accounting policy for Share-based payments.
Combined Bonus and Long Term Incentive Scheme 2012 to 2014 (“CBLTIS”)
During the year the Group implemented the CBLTIS and contingent awards were made in respect of 14.3 million ordinary shares
and 3.7 million preference shares and which cover the calendar years 2012 to 2014. The awards are subject to performance
criteria explained in the Remuneration Report. Awards in respect of ordinary shares are accounted for in accordance with the
Group’s accounting policy for Share-based payments. Awards to be settled by preference shares do not meet the criteria under
IFRS for a Share-based payment and are instead accounted for in accordance with IAS 19 – Employee Benefits.
The Company also made an award of 4.2 million (2011: 4.6 million) ordinary shares to satisfy bonuses to the Executive
Directors and senior management.
(a) Movements in Executive Share Option Schemes 
2012 2012 2011 2011
Weighted Weighted
average average
No of exercise No of exercise
options price options price
Outstanding at the beginning of the period 11,595,946 20p 14,245,946 16p
Lapsed during the year
– LTIP – – (200,000) 25p
Exercised during the year
– ERS (1,225,000) 0p (2,450,000) 0p
– LTIP (266,667) 25p – 25p
Outstanding at the end of the period 10,104,279 20p 11,595,946 20p
Represented by:
– ERS 1,325,000 2,550,000
– LTIP 8,779,279 9,045,946
10,104,279 11,595,946
Exercisable at the end of the period 4,073,648 17p 2,550,000 0p
The weighted average remaining contractual life of options was 5 years (2011: 6 years). Notes to the Financial Statements – continued
63
(b) Movements in Combined Bonus and Long Term Incentive Scheme Awards 
2012 2011
No of award No of award
shares shares
Awards of Ordinary shares: 
– Outstanding at the beginning of the period – –
– Granted during the year 14,303,279 –
– Lapsed during the year ––
– Vested during the year ––
Outstanding at the end of the period 14,303,279 –
The fair value at grant date of the ordinary share awards was determined to be the closing market price of 59.5p. 
2012 2011
No of award No of award
shares shares
Awards of Preference shares: 
– Outstanding at the beginning of the period – –
– Granted during the year 3,731,343 –
– Lapsed during the year ––
– Vested during the year ––
Outstanding at the end of the period 3,731,343 –
(c) Income Statement charge for the year 
2012 2011
US$’000 US$’000
Expense attributable to ERS and LTIP awards in prior periods 525 1,358
Bonus awards in the year 3,879 4,741
Combined Bonus and Long Term Incentive Scheme awards 2012 to 2014 12,205 –
16,609 6,099
To be satisfied by allocation of: 
Ordinary shares (IFRS 2 expense) 12,437 6,099
Preference shares (IAS 19 expense) 4,172 –
16,609 6,099
33. Capital commitments
The Group has committed to fund the construction of certain additional investment property. At 31 December 2012,
US$28.2 million of funding was required (2011: US$4.4 million), excluding VAT. Notes to the Financial Statements – continued
64
34. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and
are not disclosed in this note. Further disclosures concerning transactions with the Company’s directors are made in the
Remuneration Report and note 6.
Raven Russia Employee Benefit Trust No. 1 (the “EBT”)
As set out in note 23, on 26 June 2012 the Company issued and admitted to the Official List of the London Stock Exchange
48,414,250 new preference shares under the terms of a placing and open offer. The new preference shares were issued at a
price of 134 pence per share and rank pari passu with the other preference shares in issue. The trustees of the EBT acquired
£5 million of new preference shares as part of the placing. The acquisition of these preference shares by the EBT on a
non-preemptive basis constitutes a smaller related party transaction under the UKLA’s Listing Rules.
Transactions, arrangements and agreements involving key management personnel
There are no loan balances with directors. In 2011 the Group advanced a loan of £1.2 million to one of the Group’s key
management personnel. The loan, which bore interest at a commercial rate and was secured by a first legal charge over a
UK property, was repaid during the year.
Mourant Ozannes 
David Moore was a partner of Mourant Ozannes, Advocates and Notaries Public. Mourant Ozannes provided independent
legal advice to the Group. Total legal fees paid to Mourant Ozannes during the year amounted to £nil (2011: £18,877).
Remuneration of Directors and other key management personnel 
2012 2011
US$’000 US$’000
Short term employee benefits 5,826 4,430
Post employment benefits 294 278
Share-based payments and other long term incentive 15,736 5,839
21,856 10,547
35. Financial instruments – risk management
The Group’s activities expose it to a variety of financial risks in relation to the financial instruments it uses: market risk (including
currency risk, price risk and cash flow interest rate risk), credit risk and liquidity risk. The financial risks relate to the following
financial instruments: trade receivables, cash and short term deposits, trade and other payables, borrowings, preference
shares and derivative financial instruments.
Risk management parameters are established by the Board on a project by project basis and overseen by management in
conjunction with professional advisers. Reports are provided to the Board formally on a weekly basis and also when authorised
changes are required.
(a) Market risk
Currency risk 
The Group operates internationally and is exposed to foreign exchange risk arising from a variety of currency exposures,
primarily with respect to US Dollars, Sterling and Russian Rouble. Foreign exchange risk arises from future commercial
transactions (including construction contracts and lease receivables), recognised monetary assets and liabilities and net
investments in foreign entities.
The majority of the Group’s transactions are denominated in US Dollars, which is also the reporting currency for the Group.
The functional currency of the Company is Sterling, however the functional currencies of the Company’s subsidiaries varies.
The analysis that follows considers the impact of Russian Rouble and Sterling on the Group. Notes to the Financial Statements – continued
65
Russian Rouble 
Whilst the Group has some Rouble denominated overhead and maintains modest levels of Rouble cash balances to fund the
working capital requirements of the investment property portfolio in Russia, it is during a period of substantial construction
activity that the Group can become exposed to significant Rouble currency risk. This is because construction contracts have
tended to be denominated in Roubles. The Group is not currently in a period of substantial construction but when this has
been the case the Group has taken out non deliverable forwards to hedge against the US Dollar/Rouble cash flow exposure. 
The other principal area where the Rouble can affect the Group is the accounting adjustments that are required when
consolidating the results of some of the property owning subsidiaries that have a Rouble functional currency. Exchange gains
or losses arising as a result of these consolidation accounting adjustments are included in the translation reserve. 
Sterling 
The Group’s exposure to Sterling is primarily driven by the Sterling denominated preference shares and the related quarterly
preference dividends, but also head office costs and ordinary dividends. Whilst there are no Sterling foreign exchange gains
and losses arising in the parent company itself, in preparing the group financial statements these Sterling amounts are
translated to the Group’s US Dollar presentation currency and the resulting exchange gains and losses are included in the
translation reserve.
The table below summarises the currency in which the Group’s financial instruments are denominated:
Russian
US Dollar Sterling Rouble Other Total
As at 31 December 2012 US$’000 US$’000 US$’000 US$’000 US$’000
Non-current assets
Loans receivable – 1,587 4 – 1,591
Derivative financial instruments 627 3,651 – – 4,278
Current assets
Trade receivables 24,036 2,249 4,418 – 30,703
Loans receivable – – 64 – 64
Derivative financial instruments – 960 – – 960
Other current receivables 41,315 343 620 8 42,286
Cash and short term deposits 78,774 51,578 60,776 569 191,697
144,752 60,368 65,882 577 271,579
Non-current liabilities
Interest bearing loans and borrowings 645,121 – – – 645,121
Preference shares – 325,875 – – 325,875
Derivative financial instruments 9,103 – – – 9,103
Rent deposits 22,672 – – 312 22,984
Investment property acquisition obligations 2,929 – – – 2,929
Retentions under construction contracts – – – – –
Other payables – 1,845 241 – 2,086
Current liabilities
Interest bearing loans and borrowings 121,936 – – – 121,936
Derivative financial instruments 206 – 400 – 606
Other payables 22 6,131 30,314 – 36,467
801,989 333,851 30,955 312 1,167,107 Notes to the Financial Statements – continued
66
Russian
US Dollar Sterling Rouble Other Total
As at 31 December 2011 US$’000 US$’000 US$’000 US$’000 US$’000
Non-current assets
Loans receivable – – 4 – 4
Derivative financial instruments 1,216 – – – 1,216
Current assets
Trade receivables 16,836 1,284 3,728 – 21,848
Loans receivable – 2,411 72 – 2,483
Derivative financial instruments – – – – –
Other current receivables 989 2,101 183 4 3,277
Cash and short term deposits 119,053 30,519 31,732 522 181,826
138,094 36,315 35,719 526 210,654
Non-current liabilities
Interest bearing loans and borrowings 465,638 – – – 465,638
Preference shares – 218,206 – – 218,206
Derivative financial instruments 8,968 – – – 8,968
Rent deposits 12,162 – 2,228 443 14,833
Investment property acquisition obligations 2,929 – – – 2,929
Retentions under construction contracts – – – – –
Other payables – – 590 – 590
Current liabilities
Interest bearing loans and borrowings 82,637 12,970 – – 95,607
Derivative financial instruments – – – – –
Other payables – 5,939 27,575 22 33,536
572,334 237,115 30,393 465 840,307
The sensitivity analyses below are based on a change in an assumption while holding all other assumptions constant. In
practice this is unlikely to occur and changes in some of the assumptions may be correlated, for example a change in interest
rate and a change in foreign currency exchange rates. The Group principally manages foreign currency risk on a project by
project basis. The sensitivity analysis prepared by management of foreign currency risk illustrates how changes in the fair value
or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. 
The table below shows the impact on consolidation if the US Dollar weakened or strengthened by 10% against the Russian
Rouble or Sterling, with all other variables in each case remaining constant, then:
2012 2011
Post tax profit or loss would change by: US$’000 US$’000
Russian Rouble 869 296
Sterling 3,230 3,513
2012 2011
Net asset value would change by: US$’000 US$’000
Russian Rouble 641 196
Sterling 24,184 20,481
The majority of Sterling sensitivity relates to the retranslation of the value of irredeemable preference shares.  Notes to the Financial Statements – continued
67
Accounting standards also require disclosure of monetary assets and liabilities that are denominated in currencies different
from the functional currency of the specific subsidiary or entity in the Group. These are set out in the tables below.
Russian
US Dollar Sterling Rouble Other
As at 31 December 2012 US$’000 US$’000 US$’000 US$’000
Current assets
Trade receivables 2,608 – – –
Cash and short term deposits 62,407 – – 21
65,015 – – 21
Non-current liabilities 
Interest bearing loans and borrowings 30,000 – – –
30,000 – – –
As at 31 December 2011
Current assets
Trade receivables 2,623 – – –
Cash and short term deposits 70,585 – – 115
73,208 – – 115
The Group’s interest rate risk arises from long-term borrowings (note 22), which include preference shares issued (note 23).
Borrowings issued at variable rates expose the Group to cash flow interest rate risk, whilst borrowings issued at a fixed rate
expose the Group to fair value risk. The Group’s cash flow and fair value risk is reviewed monthly by the Board. The cash flow
and fair value risk is approved monthly by the Board.
The Group analyses its interest rate exposure on a dynamic basis. It takes on exposure to the effects of fluctuations in the
prevailing levels of market interest rates on its financial position and cash flows. Interest costs may increase as a result of such
changes. They may reduce or create losses in the event that unexpected movements arise. Various scenarios are simulated
taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these scenarios
the Group calculates the impact on profit and loss of a defined interest rate shift. The simulation is run on an on-going basis to
verify that the maximum potential impact is within the parameters expected by management. Formal reporting to the Board on
cash flows is made on a monthly basis.
To date the Group has sought to fix its exposure to interest rate risk on borrowings through the use of a variety of interest rate
derivatives and the issue of preference shares at a fixed coupon. This gives certainty over future cash flow but exposure to fair
value movements, which amounted to an accumulated unrealised loss of US$8.7 million at 31 December 2012 (2011: loss of
US$5.5 million).
Sensitivity analysis on the Group’s interest rate borrowings, net of interest bearing deposits, indicate that a 1% increase in
LIBOR rates would decrease the profit for the year and net assets by US$600,000 (2011: US$400,000). If LIBOR rates were to
drop to zero then there would be a decrease in the profit for the year and in net assets of US$1.9 million (2011: US$0.9 million)
as the loss on income from cash would be greater than gains on interest expense because of the low LIBOR rates prevailing at
this time and the interest rate hedges in place. Notes to the Financial Statements – continued
68
(b) Credit risk
The Group’s principal financial assets are cash and short term deposits, trade and other receivables and derivative financial
instruments.
Credit risk associated with the Group’s trade and other receivables is considered low due to the Group having policies in place
to ensure that rental contracts are made with tenants meeting appropriate balance sheet covenants, supplemented by rental
deposits or bank guarantees from international banks. The amounts presented in the Balance Sheet are net of allowances for
doubtful receivables. An allowance for impairment is made where there is objective evidence that the Group will not be able to
collect all amounts due according to the terms of the receivables concerned. Details of the movements in provision for
impairment of trade receivables is provided in the table below.
2012 2011
US$’000 US$’000
At 1 January 377 377
Charge for the year 1,593 –
Utilised in the year ––
Unused amounts reversed ––
At 31 December 1,970 377
At 31 December 2012 there were no significant amounts of trade receivables that were past due for collection (2011: US$ nil).
The Group has VAT recoverable of US$14 million (2011: US$15.4 million). The timing of recovery of these balances is subject
to future revenue receipts and application to the Russian Courts. The Group forecasts the recovery of these balances based
upon the timing of future revenue receipts and its experience of successful application to the Russian Courts. No balances are
considered past due or impaired at 31 December 2012 (2011: US$ nil) based upon this assessment of the timing of future
cash receipts. The Group believes its only exposure is in relation to the timing of recovery. 
The credit risk of the Group’s cash and short term deposits and derivative financial instruments is limited to the Group’s policy
of monitoring counterparty exposures.
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of
committed credit facilities and the ability to close out market positions. The Board and its advisers seek to have appropriate
credit facilities in place on a project by project basis, either from available cash resources or from bank facilities.
Management monitor the Group’s liquidity position on a daily basis. Formal liquidity reports are issued from all jurisdictions on a
weekly basis and are reviewed monthly by the Board, along with cash flow forecasts. A summary table with maturity of
financial liabilities is presented below.
All amounts shown are gross undiscounted cash flows. 
Financial liabilities
Years Years
Total Current Year 2 3 to 5 5 to 10
US$’000 US$’000 US$’000 US$’000 US$’000
As at 31 December 2012
Interest bearing loans and borrowings 1,025,989 175,642 125,328 548,107 176,913
Preference shares 371,410 37,141 37,141 111,423 185,705
Derivative financial instruments 9,709 606 – 9,103 –
Trade and other payables 64,465 37,152 6,243 16,080 4,990
1,471,573 250,541 168,712 684,713 367,608 Notes to the Financial Statements – continued
69
Years Years
Total Current Year 2 3 to 5 5 to 10
US$’000 US$’000 US$’000 US$’000 US$’000
As at 31 December 2011
Interest bearing loans and borrowings 721,504 134,597 131,638 327,726 127,543
Preference shares 269,213 26,921 26,921 80,764 134,607
Derivative financial instruments 8,968 – – 6,768 2,200
Trade and other payables 51,888 51,888 – – –
1,051,573 216,666 158,554 415,258 264,350
Details of the interest rates applicable to the Group’s long term borrowings and preference shares are given in notes 22 and
23. The Group is subject to interest costs in perpetuity in respect of preference shares, which have no contractual maturity
date. The table above does not show cash flows beyond 10 years.
The Group monitors its risk to a shortage of funds by forecasting cash flow requirements for future years. The Group’s
objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and other
short term borrowing facilities, bank loans and equity fund raisings.
Fair values 
Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments in the
financial statements.
2012 2012 2011 2011
Carrying Fair Carrying Fair
Value Value Value Value
US$’000 US$’000 US$’000 US$’000
Non-current assets
Loans receivable 1,591 1,501 4 4
Derivative financial instruments 4,278 4,278 1,216 1,216
Current assets
Trade receivables 30,702 30,702 21,848 21,848
Loans receivable 64 64 2,483 2,483
Other current receivables 42,286 42,286 3,277 3,277
Derivative financial instruments 960 960 – –
Cash and short term deposits 191,697 191,697 181,826 181,826
Non-current liabilities
Interest bearing loans and borrowings 645,121 496,333 465,638 356,157
Preference shares 325,875 452,965 218,206 291,444
Derivative financial instruments 9,103 9,103 8,968 8,968
Rent deposits 25,346 19,386 14,833 14,833
Investment property acquisition obligations 2,929 2,929 2,929 2,929
Other payables 2,085 2,085 590 590
Current liabilities
Interest bearing loans and borrowings 121,936 121,936 95,607 95,607
Derivative financial instruments 606 606 – –
Other payables 36,467 36,467 33,536 33,536
The fair values of loans receivable and borrowings have been calculated by discounting the expected future cash flows at
prevailing interest rates. The fair value of short term deposits, other assets, trade and other receivables, trade and other
payables is assumed to approximate to their book values. The fair value of preference shares is assumed to be their last
quoted price. The fair value of derivatives is determined by a model with market based inputs. Notes to the Financial Statements – continued
70
Fair value hierarchy 
The following table shows an analysis of the fair values of financial instruments recognised in the balance sheet by level of the
fair value hierarchy*:
Total Fair
Level 1 Level 2 Level 3 Value
US$’000 US$’000 US$’000 US$’000
As at 31 December 2012
Assets measured at fair value
Derivative financial instruments – 5,238 – 5,238
Liabilities measured at fair value
Derivative financial instruments – 9,709 – 9,709
As at 31 December 2011
Assets measured at fair value
Derivative financial instruments – 1,216 – 1,216
Liabilities measured at fair value
Derivative financial instruments – 8,968 – 8,968
* Explanation of the fair value hierarchy:
Level 1 – Quoted prices in active markets for identical assets or liabilities that can be accessed at the balance sheet
date.
Level 2 – Use of a model with inputs that are directly or indirectly observable market data. 
Level 3 – Use of a model with inputs that are not based on observable market data. 
(d) Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern to provide
returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of
capital.
For capital risk management, the Directors consider both the ordinary and preference shares to be permanent capital of the
Company, with similar rights as to cancellation.
To maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, under take
tender offers, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with others in its
industry, the Group monitors capital on the basis of its gearing ratio. This ratio is calculated as net debt divided by total capital.
Net debt is calculated as total liabilities but excluding provisions, head lease obligations and preference shares, which for
capital risk management is considered to be capital rather than debt, less cash and short term deposits. Total capital is
calculated as equity, as shown in the balance sheet, plus preference shares and net debt. Where the Group has a net cash
position, the gearing ratio will be zero. Notes to the Financial Statements – continued
71
2012 2011
US$’000 US$’000
Non-current liabilities 776,598 562,520
Current liabilities 215,444 166,184
Total borrowings 992,042 728,704
Less: cash and short term deposits 191,697 181,826
Net debt 800,345 546,878
Equity 688,962 668,760
Preference shares 325,875 218,206
Total capital 1,815,182 1,433,844
Gearing ratio 44.09% 38.14%
36. Subsequent events
Details of post year end warrant exercises are set out in note 28. 
37. Operating lease arrangements 
The Group earns rental income by leasing its investment properties to tenants under non-cancellable operating leases. 
At the balance sheet date the Group had contracted with tenants for the following future minimum lease payments:
2012 2011
US$’000 US$’000
Within one year 153,873 97,564
In the second year 156,256 98,846
In the third to fifth year (inclusive) 347,955 250,998
After five years 177,993 132,420
836,077 579,828 72
Notes to the Financial Statements – continued
38. Acquisitions in the year
The Group made three acquisitions in the year, Pushkino Logistics Park, Sholokhovo and land at Padikovo. In each case the
Group purchased each of the properties by acquiring all of the issued share capital of the corporate vehicles that owned the
properties. In accordance with its accounting policy the Group considered each acquisition in turn, assessing whether an
integrated set of activities had been acquired in addition to the property. In each case it was concluded a business had not
been purchased but rather the acquisition of a group of assets and related liabilities.
Analyses of the considerations payable for the properties and incidental assets and liabilities are provided below:
Pushkino Sholokhovo Padikovo Total 
US$’000 US$’000 US$’000 US$’000
Non-current assets 
Investment property (note 11) 218,126 50,497 – 268,623
Investment property under construction (note 12) – – 23,020 23,020
Other receivables 629 134 – 763
Current assets 
Trade and other receivables 3,777 399 – 4,176
Cash and cash equivalents 10,496 3,429 5 13,930
Current liabilities 
Trade and other payables (16,657) (1,933) (3) (18,593)
Interest bearing loans and borrowings (54) (2,533) (90) (2,677)
Non-current liabilities 
Trade and other payables (1,971) (865) – (2,836)
Interest bearing loans and borrowings – (18,150) – (18,150)
214,346 30,978 22,932 268,256
Discharged by: 
Cash consideration paid 215,123 30,228 21,920 267,271
Cash consideration payable – – 914 914
Consideration recoverable (3,903) – – (3,903)
Acquisition costs 3,126 750 98 3,974
214,346 30,978 22,932 268,256
The consideration payable for Pushkino is provisional subject to the finalisation of a completion balance sheet and was partially
funded by a US$129 million debt facility (see note 22), with the remainder funded out of the net proceeds of the placing and
open offer of new preference shares (see note 23). The considerations payable for Sholokhovo and Padikovo were funded out
of the Group’s existing cash resources and are final. 73
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GY1 6EH 
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W1S 1AX
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London Bridge
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EC4R 9HA
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Carey House
Les Banques
St Peter Port
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GY1 4BZ
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Benn Garnham
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Jones Lang LaSalle
Kosmodamianskaya NAB
52 Korp 3
Moscow
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Bulwer Avenue
St Sampson
Guernsey
GY2 4LH
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Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Independent Auditors:
Ernst & Young LLP
1 More London Place
London
SE1 2AF 74
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