1. Major Events International Business Networking Group MAJOR EVENTS IN RUSSIA: CHALLENGES AND OPPORTUNITIES Copyright © 2011 Major Events International Ltd All rights reserved. 1

2. Programme Introduction to the Russian Market David Cant, Managing Director, Albion (Overseas) Ltd, UK Opportunities Around Upcoming Major Sporting Events: 2013 Kazan Universiade, 2014 Sochi Olympics and 2018 FIFA World Cup Natalya Tueva, Key Account Executive - Russia, MEI, UK/Russia Market Experience Case Study: Sochi 2014: Overview, PwC's role, Opportunities for International Companies Evgeny Otnelchenko, Advisory Consulting Partner, PwC's Sochi 2014 Program Leader, PricewaterhouseCoopers Russia B.V., Russia Business Culture in Russia: Working with Local Partners and Management Teams Yevgeny Merkel, Partner, Excelion Partners International, Russia Discussion Session Copyright © 2011 Major Events International Ltd All rights reserved. 2

3. About MEI MEI Core Model Bid and Host City - Mobilisation and Subject Matter Expert Support Suppliers: –Access to a highly experienced MEI Staff for advice and research –Market Intelligence on opportunities, competitors and opportunities –Client Access covering the numerous and widely dispersed market stakeholders –Representation to provide an in-country presence for rapid deployment when needed –Profile at conferences and events which companies cannot cover; and through the MEI Global Web Portal and MEI Journal Copyright © 2011 Major Events International Ltd All rights reserved

4. Copyright © 2011 Major Events International Ltd All rights reserved. 4

5. Major Events International ASE STUDY: BRAZIL Copyright © 2011 Major Events International Ltd All rights reserved 5 Opportunities Around Upcoming Major Sporting Events Natalya Tueva Key Account Executive, Russia ntueva@majoreventsint.com

6. Why Russia? One of the BRIC countries Emerging market with growing middle class: 107% growth in 6 years since 2000 The country with one of the lowest foreign debts among major economies Politically stable with sustainable economic growth of 4.5% (2010). Home of next major events. Copyright © 2011 Major Events International Ltd All rights reserved 6

7. Why Russia? 10th largest economy in the world by nominal GDP and the 6th largest by purchasing power parity (PPP) Copyright © 2011 Major Events International Ltd All rights reserved 7

8. Russian Current infrastructure The total length of common-used railway tracks exceeds 85,500 km (second only to the U.S.) Over 44,000 km of tracks are electrified – the largest number in the world 85,500 km of rail network track (second largest in the world) 1216 airports 62 sea ports and 131 river ports: capacity for over 526 million tonnes/year 44.9 million telephone lines Stable banking system according to the Fitch rating agency The government plans to invest $1 trillion in development of infrastructure by 2020 Copyright © 2011 Major Events International Ltd All rights reserved 8

9. Major Events in Russia 2012 IAAF World Race Walking Cup in Saransk (12-13 May) 2013 World Student Games in Kazan (13-23 July) 2013 IAAF World Championships in Athletics in Moscow (10 - 18 August) 2014 Sochi Olympic Winter Games (7 February – 23 February) 2014 Sochi Paralympic Winter Games (7 March – 16 March) 2018 FIFA World Cup (8 June – 8 July) 2014-2020 Russian Grand Prix in Sochi Other Bids: 2014 World Junior Athletics Championship in Kazan 2015/2017 World Aquatics in Kazan Copyright © 2011 Major Events International Ltd All rights reserved 9

10. 2013 World Student Games in Kazan Budget: 515 million USD Additional investment in security: 47.6 million USD 64 venues, including 36 specially built Universiade Village: residential area for14.5 thousand people Copyright © 2011 Major Events International Ltd All rights reserved 10

11. 2013 World Student Games in Kazan: Opportunities Copyright © 2011 Major Events International Ltd All rights reserved 11 Source: http://kazan2013.ru Live videos from the venues are available on-line: http://camera.tatar.ru /

12. 2013 World Student Games in Kazan: Opportunities Copyright © 2011 Major Events International Ltd All rights reserved 12 Source: http://kazan2013.ru 9 new road junctions:

13. 2013 World Student Games in Kazan: Opportunities Copyright © 2011 Major Events International Ltd All rights reserved 13 Source: http://kazan2013.ru 11 roads are reconstructed (35.6 km) Road from Tankovaya Street to Pushkina Street is constructed ( ):

14. 2013 World Student Games in Kazan: Opportunities Transport Infrastructure Sector: Kazan AeroExpress Kazan Underground (Metro) Copyright © 2011 Major Events International Ltd All rights reserved 14

15. 2013 World Student Games in Kazan: Opportunities Copyright © 2011 Major Events International Ltd All rights reserved. 15 Source: http://kazantransport.by.ru/

16. 2013 World Student Games in Kazan: Opportunities Copyright © 2011 Major Events International Ltd All rights reserved 16 Sponsorship Categories: General Partner Official Partner Official Supplier

17. 2014 Winter Olympics in Sochi Budget: 10.85 billion USD 35 % of the budget: –Tourist infrastructure $2.6 billion; –Olympic venues $500 million; –Transport infrastructure $270 million; –Power supply infrastructure $100 million Investments in telecommunications – $580 million 24 thermal and hydro-power stations Copyright © 2011 Major Events International Ltd All rights reserved 17

18. 2014 Winter Olympics in Sochi: Opportunities Copyright © 2011 Major Events International Ltd All rights reserved 18 Source: http://sochi2014.com

19. 2014 Winter Olympics in Sochi: Opportunities Coastal Cluster: Copyright © 2011 Major Events International Ltd All rights reserved. 19 Source: http://sochi2014.com

20. 2014 Winter Olympics in Sochi: Opportunities Mountain Cluster: Copyright © 2011 Major Events International Ltd All rights reserved. 20 Source: http://sochi2014.com

21. 2014 Winter Olympics in Sochi: Opportunities Transport Infrastructure Construction: The Sochi Light Metro (starts 2013) Tuapse to Adler railroad, 102 km (by 2014) High-Speed Moscow-Adler Link Sochi International Airport (by 2012) Roads, 186 miles Tunnels, 6 (by 2013) Copyright © 2011 Major Events International Ltd All rights reserved 21

22. 2014 Winter Olympics in Sochi: Opportunities Tourist Infrastructure Construction: 2 Olympic media-villages 30 hotels 9 sanatoriums Total room capacity: 5-star rooms – 1,737 4-star rooms – 5,136 3-star rooms – 13,167 Source: http://www.sc-os.ru Copyright © 2011 Major Events International Ltd All rights reserved 22

23. 2014 Winter Olympics in Sochi: Opportunities Copyright © 2011 Major Events International Ltd All rights reserved 23 Partnership Opportunities: Telecom Equipment Beer Confectionery Packaged dairy products Language technologies and services Gas Road/tunnel/pipeline construction

24. 2018 FIFA World Cup Budget: $10 billion –$ 4 billion – reconstruction and construction of stadiums; –$ 0.3 billion – training centres; –$ 0.4 billion – accommodation facilities for sportsmen 16 venues in 13 host cities: 13 new and 3 renovated 20 cities will be given the right to host festivals of supporters Copyright © 2011 Major Events International Ltd All rights reserved 24

25. 2018 FIFA World Cup: Opportunities Copyright © 2011 Major Events International Ltd All rights reserved 25 Source: http://sport.rbc.ru US$ 210 m US$ 415 m US$ 240 m US$ 260 m US$ 290 m US$ 280 m US$ 250 m US$ 240 m US$ 200 m US$ 180 m US$ 210 m US$ 180 m US$ 220 m US$ 225 m US$ 160 m

26. 2018 FIFA World Cup: Opportunities Transport Infrastructure Construction: Fast tram line in four Moscow districts (started May 2011) 425 million Railway system (the concept will be announced in June 2011) Yekaterinburg Underground (Metro) (started May 2011) Other host cities Copyright © 2011 Major Events International Ltd All rights reserved 26

27. 2018 FIFA World Cup: Opportunities Copyright © 2011 Major Events International Ltd All rights reserved 27 Source: fifa.com

28. Major Events International Business Networking Group Thank you Copyright © 2011 Major Events International Ltd All rights reserved. 28