Staffing in Russia Discover perspective Alexey Mironov Director, Strategic Development

2 The World Leaders In Recruitment Conference, London 4 th of July, 2012 ANCOR: Background and Figures /  Founded in 1990, privately owned, HQed in Moscow  Acknowledged staffing marker leader in Russia&CIS, holds an estimated 13,5% market share  Clientele covers 10+ industries and exceeds customers  Operates through 42 branches in 4 countries (33 in Russia, 3 in Kazakhstan, 5 in Ukraine and 1 in Belarus)  Employs about staff and processes search mandates annually  Products portfolio includes perm and contract staffing, BPO and HR consulting

3 ANCOR Financials USD mln Placements Discover perspective

4 The World Leaders In Recruitment Conference, London 4 th of July, 2012 Russia, big and different 4 Far East Siberia Urals North-West Volga district Central district South Discover perspective

Russia, environment  1/8 of the Earth., 17 mln sq. km  GDP 2011 estimate - $2.383 trillion  GDP Per capita: $16,700 (53th in the world).  Forecasted GDP growth – 3,5%-3,9 % ($98 per barrel).  Inflation around 6 %.  Population: 143 mln., labor force – only half of that  Unemployment plays around 6,5 %.  Member of G8, G20, WTO. 5 The World Leaders In Recruitment Conference, London 4 th of July, 2012 Discover perspective

6

2010: 606 non-employable VS 1,000 employable people 2020: 795 VS 1,000 Permanent Birth Rate ScenarioUpperMiddleLower Discover perspective

State-owned business / government 8 SwedenFr.Holl. Czech Rep. Slovak.Can.Austr.USAGerm.SpainMexicoAustriaTurk.CoreaJapan RF State-owned enterprisesGovernment institutions Discover perspective

Salaries  Differences in salaries among Moscow and regions %.  Forecasted salary increase for 2012 around 8-10 %. *according to the data of CASE company 9 Discover perspective

Relocation Map Discover perspective

11 FMCG Oil & GasHigh TechAutomotive Banking General industry Retail Constructio n Huge investment across major industries Cumulative value of investments to Russian economy – $343,4 bln, 16 th place in the world Most companies are growing at 8-25% and most in the IT industry are seeing sales rise at 30-40%

Big employers plants employees 40 plants employees 15 plants employees 63 stores in 42 regions employees branches employees employees employees employees employees Discover perspective

GP Breakdown = Industries coverage Discover perspective

14 Evolution of staffing market Permanent recruitment, Moscow Regions Contract staffing Business Process Outsourcing Since 2009 HR consulting, salary services, assessment Since 2000 Discover perspective

International players 15 CompanyIn Russia sinceBranches Kelly Services Manpower19947 Adecco Michael Page20061 Hays20091 Antal19941 Discover perspective

Staffing market  1000 staffing businesses estimated (3/4 are really small)  Total market value in 2011 – $1,4 billion (in 2010 – about $ 1,1 billion)  Majority of the market is controlled by 4 players (ANCOR, Kelly services, Adecco, Manpower)  No accreditation and licensing for agencies  No law for contract staffing  Only 3 major M&A deals: — 2008 Adecco Group acquired AVANTA Personnel, — 2008 FiveTen Group acquired Antal Russia, — 2011 Kelly services acquired AVANTA Personnel Novosibirsk  2 associations: APSC (1996), ACHAZ (2011, member of CIETT) 16 Discover perspective

Important takeaways, Russia Emerging economy Vast territory Tough demography Huge investment inflow, great demand for staff Adequate inflation and unemployment Salaries VS productivity is a challenge Staffing market is evolving and demonstrates 25% annual growth Competition is incomparable to Americas, APAC and Europe Public sector looks attractive Potential for suppliers to staffing industry is big 17

4 Success factors for a staffing business in Russia Industries coverage and expertise Geographic coverage Products portfolio flexibility speed Russian content 18 Discover perspective

Thank you for your attention! Alexey Mironov Director, Strategic Development ANCOR Tel.: +7 (495) , Discover perspective