“Time to live” New levels of Retail Customer convenience Petr SMIDA, CEO US Russia Business Council Annual Meeting October 3-4, 2005

Overview  Who we are, Our Vision  Self Service Channels: Making the bank accessible at any time from anywhere  Internet or mobile phone?  “Alfa-Mobile”: Putting the bank into the hands of customers  Demonstration: “Alfa-Mobile”

Alfa Bank at a Glance Largest privately owned bank in Russia Wide retail branch network over 100 offices across Russia & CIS Significant scale Total Assets US$ 7 bn Loans US$ 5 bn Shareholders’ Equity US$ 700m Strong Client Base 50,000 corporate clients incl. Russian blue chips and 1+ mn retail clients International Management Team 2004 NI US$ 152m 24% ROE 0.9% NPLs * The Leading Privately Owned Bank in Russia Strong Russia-wide Known brand

Our Mission: Customer’s “Time To Live” “Our mission is to improve the lives of our customers by actively listening to their needs, creating suitable financial solutions and, ultimately, saving their time. We believe that by increasing value to the customer, we will continue to increase the value of our company.” Our Vision We want to become the benchmark of modern banking in Russia To achieve above market customer satisfaction To apply global best practices in the development of products and distribution To provide ubiquitous service with high utilization of self service and electronic channels To strengthen our competitive advantage through continuous process improvements and focus on lower unit costs To establish a progressive, service-oriented company culture

Self Service Channels: Making the bank accessible to all Giving the customer choice  From bank point of view mobile phone/internet both represent ideal combination of value to the customer and productivity tool at the same time  Access to banking services should be convenient and by multiple choice for customer  Traditional Channels – Branch, ATM  Alternative Channels – Agents, partnerships, Cash-ins, call center  Alternative Virtual channels - internet, mobile

Internet or mobile phone? Penetration over a 9 month period shows:  Significantly faster growth in mobile phone penetration than internet penetration at a rate of  10 times in Moscow as well as Russia as a whole  20 times in Russia (without Moscow)  Gap between mobile phone penetration and internet is widening in Russia  3,9 times more people have mobile than internet now as compared to 2,7 times previously  Penetration of mobile phones in Moscow now exceeds 100% Mobile Internet Chart 1: Penetration of Mobile and Internet over 9 months, % RussiaMoscow Russia less Moscow

“Alfa-Mobile”:Putting the bank into the hands of customers  Focus on creating a customer experience – positive and memorable  Make it easy to use  Capture the user’s needs – relevance to target user’s  Technology is only an enabler – focus on value  Unique to the market – differentiation Strategy behind the creation of “Alfa-Mobile” What is “Alfa-Mobile”?  A java-based application which is installed into the memory of a customers mobile telephone  Allows a customer to pay for mobile services – for themselves as well as others  Allows a customer access to their account balances on-line real time  Sign-up involves a simple process without a visit to the branch (phone call from their home, office or wherever)

Demonstration: “Alfa-Mobile” Customer selects “Alfa-Mobile” within the menu of their mobile telephone after which the Logon screen appears. 1. Launching “Alfa-Mobile”

2. Main Menu After authorization, the customer is presented with the main menu Demonstration: “Alfa-Mobile”

3. Balance Real time balance information includes account number, amount and currency of all accounts customer has with the bank.

4. Payments - Mobile phone recharging Payments currently available for mobile phone recharging for BeeLine, Megafon and MTS. Customer can recharge other mobile phones, as well as their own. Demonstration: “Alfa-Mobile”

5. Other menu items – Bank information, Settings, About  Within “Bank information” customer will find the Alfa-Bank Express call center phone number for handy access  Within “Settings” customer can change their password, select between English and Russian Language as well as set the Connection type  The “About” menu provides information about the “Alfa-Mobile” application itself Demonstration: “Alfa-Mobile”

“Time to live”