Creating business advantages Business Process Outsourcing

Creating business advantages Page 2 OUTSOURCING SERVICES PROVIDER Specialized division within BDO Russia, member of BDO International network Regional network in Russia Professional risks are insured with “Rosno” Provider of business outsourcing solutions About 200 strong accounting, payroll, HR and legal specialists of different grades and qualifications Over 200 outsourcing clients, including multinational leaders THE WINNER OF THE FIRST NATIONAL AWARD THE ATLANTES OF BUSINESS IN FINANCIAL OUTSOURCING

Page 3 BDO INTERNATIONAL BDO International is the largest worldwide network of independent public accounting firms: Successful operations since th largest international accounting and consultancy organisation in the world Global fee income in 2008 about EUR3,65 billion Presence in 110 countries world wide Human capital – about specialists 1000 offices Over clients Creating business advantages

Page 4 OUTSOURCING SERVICES PROVIDED BY BDO IN RUSSIA We are specialized in outsourcing of: Statutory accounting Payroll processing Tax compliance HR documentation Including full spectrum of financial and administrative business support services: Setting up accounting system and developing functional model Management and IAS Accounting and Reporting Tax planning and financial management function Creating business advantages

Page 5 OUR SOLUTIONS Our strength for your benefits BDO bundles its services into packages customized for specific types of clients. Such packages help potential clients to identify most appropriate support for their businesses and to get best price for the professional services in non-core but critical areas. Creating business advantages

Page 6 OUR SOLUTIONS Business start up Creating business advantages

Page 7 SOLUTION FOR BUSINESS START UP One-stop-shopping at the leading provider of professional services Wide range of narrow specialists English speaking specialists in various areas Wide experience in adaptation of the corporate policies to the Russian specifics Creating business advantages

Page 8 Assistance in selection of the most appropriate operational scheme in view of the tax related implication Development and implementation of the statutory and fiscal accounting policies Day-to-day record keeping Tax reporting and compliance Representation of the Client with Russian Tax authorities Management accounting and corporate reporting on international accounting standards. Reconciliation with local records BUSINESS START UP Accounting and tax compliance Creating business advantages

Page 9 BUSINESS START UP General director function/ managing company Performing function of the nominal General Director at the Client’s start up stage for fiscal purposes Provision of legal address for Company for the start up stage Internal administration for and on behalf of Creating business advantages

Page 10 Assistance in development of necessary payroll related internal regulations Customization of the payroll processing system, automation of the incentive policies (if applicable) Day-to-day payroll processing and related tax filing Separate processing of the top managers’ payroll with special data security measures BUSINESS START UP Payroll processing Creating business advantages

Page 11 Assistance in development of necessary HR related internal regulations Generation and legalization of all necessary HR records Labor related consultations Separate processing of the top managers HR records with special data security measures BUSINESS START UP HR records administration Creating business advantages

Client name - Event - Presentation title Page 12 OUR SOLUTIONS Existing Russian branches and subsidaries of international companies

Page 13 SOLUTIONS FOR EXISTING RUSSIAN BRANCHES AND SUBSIDIARIES OF INTERNATIONAL COMPANIES Experience in implementation of the procedures for the outsourced business processes Local expertise with international frame of reference Wide range of narrow specialists English speaking specialists in various areas, English versions of the statutory forms Wide experience in adaptation of the corporate policies to the Russian specifics Creating business advantages

Page 14 EXISTING RUSSIAN BRANCHES AND SUBSIDARIES OF INTERNATIONAL COMPANIES Accounting and tax compliance Improvement of the existing documents flow using provider’s library of solutions Customization of the accounting system for Clients specifics. Assistance in selection of the most appropriate operation scheme in view of the tax implication Management accounting and corporate reporting on international accounting standards. Reconciliation with local records Day-to-day record keeping. Tax reporting and compliance Representation of the Client with Russian Tax authorities Creating business advantages

Page 15 EXISTING RUSSIAN BRANCHES AND SUBSIDARIES OF INTERNATIONAL COMPANIES Payroll processing Review of the payroll records in the closed periods for identification of the tax and legal risks. Recalculation of the prior periods and re-submission of the tax reports if necessary Customization of the payroll processing system, automation of the incentive policies (if applicable) Day-to-day payroll processing and related tax filing Separate processing of the top managers’ payroll with special data security measures Creating business advantages

Page 16 EXISTING RUSSIAN BRANCHES AND SUBSIDARIES OF INTERNATIONAL COMPANIES HR records administration Audit of the HR records and restoration of the incorrect or missing documents Assistance in development of necessary HR related internal regulations Generation and legalization of all necessary HR records on day-to-day or ad-hoc basis Labor related consultations Separate processing of the top managers HR records with special data security measures Creating business advantages

Client name - Event - Presentation title Page 17 OUR SOLUTIONS Large business

Page 18 SOLUTIONS FOR A LARGE BUSINESS Accountants in outsourcing company are very efficient due to high level of automation and optimal organization of the accounting functions All accounting functions are uninterrupted due to substitution of absent employees Day-to-day methodological support and internal audit guarantee high quality service and low error rate Professional indemnity Creating business advantages

Page 19 LARGE BUSINESS Accounting and tax compliance Outsourcing of the selected accounting functions with high level of routine work (expense reports, billing, cost accounting, VAT accounting) Customization of the accounting system for the shared usage by Client’s employees and outsourcing company Development and regular support of the data exchange between Client’s ERP system and fiscal accounting system (if applicable) Review of the Client’s accounting process for identification of the risks and optimization Tax planning Creating business advantages

Page 20 LARGE BUSINESS Payroll processing Processing of the large number of employees in unified database, including branches, subsidiaries with regional peculiarities Generation of various analytical reports across branches and regions Customization of the payroll processing system on uniform basis, automation of the incentive policies Day-to-day payroll processing and related tax filing Separate processing of the top managers’ payroll with special data security measures Payroll system can be remotely accessed by Client’s specialists with relevant access rights for the data entry and reports generation Creating business advantages

Page 21 LARGE BUSINESS HR records administration Audit of the HR records and restoration of the incorrect or missing documents Assistance in development of necessary HR related internal regulations Generation and legalization of all necessary HR records on day-to-day or ad-hoc basis Labor related consultations HR system can be remotely accessed by Client’s specialists with relevant access rights for the data entry, reports generation and HR records keeping Creating business advantages

Page 22 QUALITY ASSURANCE PROGRAM Existing Quality policy, that defines main principle of quality control, including self-control, control performed by managers, internal audits done by Internal quality control department Methodology and Quality control Department, one of its main functions is to perform Internal Quality checks We have a Department that is responsible for business processes standardization. There is a map of all business processes implemented within the company, all new procedures are developed and maintained according to the plan Technological procedures of payroll processing contain main points of processing control We have special algorithms for additional control of the most sensitive areas of payroll processing Internal Communications Policy that defines actions within BDO and with Clients in case of recognition of discrepancies Services Agreement manages responsibilities of the parties including fine sanctions for certain discrepancies Creating business advantages

Page 23 CONFIDENTIALITY AND PRIVACY PRACTICES Effective Information Security Policy Confidentiality Information Policy that each employee signs at the stage of employment and within the working process. Disciplinary action are taken according to Labor code Employees are assigned to the Client by Executive order. Each employee has access only to the Client s one is assigned to Electronic control of access to office facilities, all visitors are accompanied by BDO employees while in the office All access rights are defined according to manager’s application that need to be authorized, all access rights are defined based on the task the person performs. In case person leaves the company one’s account is immediately disabled Internal and external audit of our IT security system twice a year BDO uses only transfer of personal information through VPN, personal information archived with password for access or physical point-to-point connection Creating business advantages

Page 24 OUR CLIENTS Outsourcing project Creating business advantages Sony Ericsson General Motors Аптечная сеть 36,6 Eli Lilly Amgen Pioneer 20th Century Fox OBI СИБУР – Русские шины Google AMDOCS Fujitsu Siemens Computers YUM!Restaurants AT&T Nomura Mondi APC by Schneider Electric Издательский Дом HACHETTE FILIPACCHI SHKULEV MGE UPS Nord Stream AG Symantec YKK

Page 25 OUR CLIENTS ABOUT US Creating business advantages

Page 26 “…In spite of the fact that the outsourcing services’ market in Russia has just started to establish, BDO has already become one of the leaders in this sphere. During all years of our cooperation with this company BDO has proved to be the right choice for us” OOO AMDOCS SOLUTIONS LTD. Creating business advantages

Page 27 “…We have partnered with BDO for almost two years, including bookkeeping, HR administration and payroll. Throughout the whole period of cooperation BDO has proved itself as a reliable and honest partner…” ARIEL INTERNATIONAL CORPORATION Creating business advantages

Page 28 “…As a result we got a very convenient and efficient tool for work optimization of the HR Division and of the branch as a whole” CLIFFORD CHANCE CIS (UK) Creating business advantages

Page 29 “…The Business strategy of BDO is a combination of high professionalism, responsible approach to solving of tasks and the ability of all team members to promptly adopt innovative solutions needed for our company” STMIСROELECTRONIСS SA Creating business advantages

Page 30 “…A truly accomplished and professional provider of consulting, accounting and legal services on the territory of Russia” CLS REMY COINTREAU Creating business advantages

Page 31 REGIONAL COVERAGE Creating business advantages Moscow Tula Vologda Rostov-on-Don St. Petersburg Murmansk Krasnodar Saratov Ufa Perm Chelyabinsk Yekaterinburg Tumen Novosibirsk Irkutsk Khabarovsk

Page 32 CONTACT INFORMATION Outsourcing division of BDO Bldg. 3, 9 Malaya Semenovskaya Str., Moscow, Tel.: +7 (495) /3 Fax: +7 (495) Creating business advantages