EOS Russia estimated Daily NAV calculation and publication
Our Daily NAV is generally calculated daily and published the same business day at 09:00am CET and 3:00pm CET on the website of EOS Russia and through various other channels. Our Daily NAV is published in SEK, based on the exchange rate between SEK and USD as set forth on Bloomberg page “USDSEK Currency” at the time of the Daily NAV calculation.
Our Daily NAV consists of our assets less our liabilities, calculated as described below, and the Daily NAV per share is our Daily NAV divided by the number of outstanding shares.
Our holdings of financial instruments that are publicly traded/quoted are valued at current market price, which is defined as an amount equal to the sum of the best bid price and the best offer price divided by two and rounded up to be consistent with the relevant price format (the “mid-market price”).
All shares are valued based on the mid-market price as quoted on RTS at or around 09:00am CET and 3:00pm CET.
Where the relevant mid-market price appears not to render an accurate fair market value, we may assess another fair market valuation based on available market data. Unlisted assets are valued at their latest known transaction price. Where such information is lacking or appears not to render an accurate fair market value, we may assign such unlisted financial instruments a fair market value based on available market data.
For purposes of calculating our Daily NAV, we include among our liabilities an amount equal to any assessed, but not due, dividends to the holders of preference shares in our subsidiary EOS Cyprus, including (i) any assessed but not due quarterly dividend; (ii) the net present value of any assessed but not due annual 5% market capitalization appreciation dividend; and (iii) the net present value of any assessed but not due 5% final net asset value appreciation dividend. Future NAV and share-price developments are not assessed in the Daily NAV calculation. Appreciation calculations in (ii) and (iii) are based on observations of current NAV and share-price.
Calculation of our daily NAV compared to calculation of our IFRS NAV
For our financial reports, we calculate a net asset value in accordance with IFRS, which serves as a basis for calculating the dividends payable to the holders of the preference shares in EOS Cyprus. Our IFRS NAV is calculated as the book value of our assets minus the book value of our liabilities and provisions. The main differences between the calculation of our IFRS NAV and the calculation of our Daily NAV are set forth below.
Under IFRS, our holdings of financial instruments are valued in accordance with IAS 39: Financial Instruments: Recognition and Measurement. Financial instruments that are publicly traded/quoted on an active market are valued at fair value, which, under IAS 39 is not defined as the mid-market price, but corresponds to the highest bid price at the time of valuation.
We make provisions in our balance sheet in accordance with IFRS, which are included when calculating our IFRS NAV, but not when calculating our Daily NAV. This implies that assessed but not due dividends on the preference shares in EOS Cyprus may, or may not, be included in our liabilities when calculating our IFRS NAV, depending on whether provisions have been made in our balance sheet or not.
EOS Russia’s net cash position as reported in the daily NAV
EOS Russia’s net cash position is based on the quarterly IFRS consolidated balance sheet and estimated on a daily basis. It includes all assets except shares and participations as well as other receivables less all liabilities.