1. Verona 28 October 2011 1 EBRD – a good partner in Russia Verona 28 October 2011 Eric Rasmussen Director Russia Industry, Commerce and Agribusiness

2. Verona 28 October 2011 2 Agenda - EBRD - Priorities and presence in Russia - Private Equity - Information and Communications Technologies (ICT) - Pharma - Annex

3. Verona 28 October 2011 3 EBRD: A network of 36 offices in 30 countries More than half our bankers based in the region

4. Verona 28 October 2011 4 Current paid in capital is €6bn including an increase of €1bn in May 2010 Current callable capital is €15bn In 2010, the Board of Governors approved a 50% increase in the Bank’s authorised share capital from €20bn to €30bn The €10bn increase* will provide additional investment capacity for the period 2011-2015 to enhance the Bank’s response to the global crisis *Callable capital to be increased by €9 billion upon receipt of subscriptions from members, with the provision to review its usage after 5 years (1)Includes European Community and European Investment Bank each at 3%; France, Germany, Italy, UK each at 8.6% (2)Russia at 4% EBRD Global Shareholder Structure 2010 Annual Meeting: 50% capital increase to €30bn Triple-A Shareholders Form 60% as at 1 September 2010

5. Verona 28 October 2011 5 EBRD: Cumulative commitments by sector

6. Verona 28 October 2011 6 International financial institution, promotes transition to market economies in 30 countries from central Europe to central Asia Owned by 61 countries and two inter-governmental institutions Capital base of €30 billion* *At the Annual Meeting in Zagreb in May 2010, the Board of Governors approved the Bank’s capital increase from €20bn to €30bn authorised capital Note: Unaudited as at 31 December 2010 Cumulative commitments of €62.0 billion 6 0 10 20 30 40 50 60 70 '00'01'02'03'04'05'06'07'08'09'10 EUR billion EBRD’s historical investments of EUR 60 billion. About 25% in Russia.

7. Verona 28 October 2011 7 Invested over €62n in more than 3,119 projects since 1991 Private sector > 79% of EBRD finance Debt 83%, Equity 17% of EBRD finance €9.0bn invested in 2010 EBRD in 2010 Source: EBRD data as at 31 December 2010 7

8. Verona 28 October 2011 8 EBRD’s priorities in Russia Mittelstand and Larger Enterprises Promote regional growth –via development of independent Russian regional companies Support modernization and diversification of Russian industry –through engagement of financial industrial groups committed to corporate governance Build investor confidence and foster transfer of know how and technologies –by pro-active support of foreign partners Closing the Infrastructure Gap Closing the Infrastructure Gap Reduce transport bottlenecks and ensure flow of goods via –support of increased private provision of transport services –financing the PPP program –engagement with reform- minded state-owned transport companies Improve levels of services to population and industrial clients through –rehabilitation of municipal infrastructure and development of new facilities Modernize power generation and remove electricity transmission bottlenecks –by financing investment programs of private and state companies Capital markets and Financial intermediaries Foster sound banking sector –strengthen bank's balance sheets and capital base Support corporate standards in banks –leveraging equity investments Encourage consolidation –support M&A Develop domestic investor base, deepen capital markets –by financing non-bank financial institutions Support development of RUB interest rate derivative and long term fixed interest rate bond markets –promote wide use of Mosprime –EBRD RUB bond programme

9. Verona 28 October 2011 9 EBRD products Direct EBRD financing Loans Non or limited recourse to sponsors Hard / local currency Medium / long term Floating / fixed rates New equity Privatizations Underwriting Quasi-equity ‘Portage’ Indirect EBRD financing Guarantees to Confirming Banks for trade finance instruments (i.e. L/Cs, payment guarantees etc.) of local issuing Bank covering the payment risk Short-term financing of local Issuing Banks providing exporters/importers with liquidity for pre-export and post import and local trade finance purposes Guarantees Specific risk guarantees Commodity-backed instruments Equity

10. Verona 28 October 2011 10 EBRD is more than equity and loans AAA rated and internationally recognised IFI with long-term view Willing to share risks, including political risks Experience gained in problem resolution Extensive knowledge of local business environment Good working relations with authorities Good corporate governance (incl. protection of minority interests) High quality due diligence and opportunity studies

11. Verona 28 October 2011 11 Dialogue and Policy Functioning of Public Institutions Private Sector know-how, capital & behaviour Sustainable Economy Dependence on Natural Resources Diversified Industry Structure Efficient Local Markets Competitive Growth % innovation absorbed by industrial companies Costs and barriers to grow innovation EBRD is a trusted partner in the dialogue on innovation

12. Verona 28 October 2011 12 Russia’s Modernisation Agenda Modernization of Russia in the 21st century will be based on the values and institutions of democracy State corporations should be reorganized and privatized State-run corporations and large companies shall be audited The government's share in commercial companies, including strategic businesses, should be reviewed R&D and technological development (Skolkovo and Rusnano) Develop new generation nuclear reactors and fuel by 2014 A Russian communication satellites put into operation by 2015 Corruption will decline as transparency increases

13. Verona 28 October 2011 13 All bankers agree that the Russian industry offer strong business opportunities...notably Industrials, Non-Cyclical Consumer Goods & Services and Utilities show high growth. 1.5 Forecasted Revenue Growth in Russian Industries relative to Brazil, India, China and EU and EU (CAGR 2009 – 2012) 1.0 0.0 0.5 2.52.01.51.00.0 Utilities Telecom Technology Non-Cyclical Cons. Goods & ServicesNon-Cyclical Cons. Goods & ServicesNon-Cyclical Cons. Goods & ServicesNon-Cyclical Cons. Goods & Services Industrials Healthcare Banks Energy Cyclical Cons. Goods & ServicesCyclical Cons. Goods & ServicesCyclical Cons. Goods & ServicesCyclical Cons. Goods & Services Basic Materials Overvaluation Undervaluation Healthcare - although closer to overvaluation – has also strong revenue growth compared to healthcare in Brazil, India, China and EU Value of Russian Industries relative to Brazil, India, China and EU (12 months P/E of top 500 companies in each economy) Data: Reuters (Dec 2010)

14. Verona 28 October 2011 14 However investor perception of slow reforms in Russia depresses the value of Russian assets compared to Brazil, India, China, EU… P/E (12 months trailing of the 500 largest companies in each economy) 20150 Forecast Long-Term EPS Growth EU China India 25 Russia Brazil Russian companies have lower P/E multiples in spite of projected strong growth Data: Reuters (Oct 2010) and BCG analysis

15. Verona 28 October 2011 15 Finance Skilled labor Corruption Permits Access … albeit new reforms focus on barriers to do business.

16. Verona 28 October 2011 16 Business Potential Investment Risks (Summary from Expert Magazine) HigherRussia RiskLowerVery High Average Lower Higher Much lower Very low Very high Saint Petersburg Kaliningrad Moscow city, Moscow region Tatarstan, Bashkortostan, N. Novgorod, Samara, Perm Krasnodar, Rostov Leningrad, Vologda, Belgorod, Yaroslavl, Lipetsk, Kaluga Saratov Volgograd Pskov, Novgorod, Orenburg, Chuvashia Stavropol Tomsk Orel Mordovia Khakassia Sverdlovsk, Chelyabinsk Voronez, Tula, Tver, Khanty-Mansiysk-Yugra, Yamalo- Nenetsky AO, Krasnoyarsk, Kemerovo, Novosibirsk, Irkutsk, Maritime, Khabarovsk Sakha-Yakutia Archangelsk, Komi (Syktyvkar), Murmansk, Karelia, Vladimir, Bryansk, Ryazan, Kursk, Kirov, Penza, Ulyanovsk, Tyumen, Astrakhan Altai T. Omsk, Amur Nenetsky (Naryan Mar), Tambov, Ivanovo, Smolensk, Kostroma, Adygeya, Buryatia, Sakhalin Mariy El Tyva, Altai Republic. Udmurtia Trans-Baikal Kurgan Kabardino-Balkarya, N.Ossetya-Alania, Karachayevo-Cherkessya, Kalmykia, Kamchatka Jewish, Chukotsky Chechen, Ingushetia Dagestan Investor perception reflect that Russia is a fabric of different regional investment climates…

17. Verona 28 October 2011 17 Business Potential Investment Risk Higher Russia Risk Lower Very High Average Lower Higher Much lower % of GDP % of FDI % of Population % of GDP % of FDI % of Population % of GDP % of FDI % of Population % of GDP % of FDI % of Population % of GDP % of FDI % of Population Sum 26% 34% 10% 13% 17% 10% 40% 34% 43% 20% 15% 33% 1% 0% 2% 27% 13% 28% 46% 52% 58% 27% 35% 12% 100% 39% 51% 20% 40% 34% 43% 20% 15% 33% 2% 0% 4% 2% 0% 4% Deeply Depressed Lower Potential High Potential 2 cities Average potential …which necessitates a differentiated approach to regional development (“European vs Asian modernization models”).

18. Verona 28 October 2011 18 St. Petersburg RO Moscow RO Ekaterinburg RO Vladivostok RO Rostov RO Samara RO 7 Offices in Russia with 120 staff on the ground EBRD has direct presence in 54 Russian regions. A “real” presence is maintained in 25 regions with 4 or more larger projects. Krasnoyarsk RO A Good Mitigation Against Regional Risks? …EBRD

19. Verona 28 October 2011 19 EBRD in Private Equity EBRD’s portfolio of funds: over 15 years of investing in the asset class  132 funds  84 fund managers  EUR 2.8 billion in commitments (USD 3.6 billion) to funds with capital of EUR 14.2 billion (USD 18.5 billion)  1,129 underlying investments, up to 70% exited. Largest PE Fund program dedicated to the region* * Russia, CIS and CSE Source: EBRD tracked portfolio as at June 2010, excluding real estate funds 19

20. Verona 28 October 2011 20 EBRD in Private Equity: Investments by Fund Size: Russia/CIS Note: Percentage is the share of EBRD commitment of the total fund capital Source: EBRD tracked portfolio as at June 2010 20 EUR Million 0-20m20-50m50-150m150-300m`300-500m0.5-1bn 0 500 1,000 1,500 2,000 4 18 10 6 3 1 44% 68% 35% 18% 14% 7% Fund Size EBRD Signed Number of funds

21. Verona 28 October 2011 21 EBRD in Private Equity: EBRD Commitments Over Time Source: EBRD tracked portfolio as at June 2010 21

22. Verona 28 October 2011 22 EBRD in ICT Selected Transactions in Technology Funds Poland 2009 Loan and equity € 22 million (own account) CEE Regional 1999 Technology Fund - Equity € 12 million (own account) € 44 million (total) Russia 2009 Technology Fund - Equity $ 30 million (own account) Bulgaria 2006 Mezzanine € 3 million (own account) € 10 million (total) Croatia 2010 Equity € 4 million (own account) Slovenia 2001 Equity € 3 million (own account) € 9 million (total) CEE Regional 2007 Technology Fund - Equity € 10 million (own account) € 40 million (total)

23. Verona 28 October 2011 23 EBRD in ICT Selected Transactions in Telecoms Albania 2003 Loan syndication € 35 million (own account) € 85 million (total) Bulgaria 2004 Privatisation - Equity, Debt and Mezz € 90.5 million (own account) € 374 million (total) Russia 2004, 2006 and 2009 Loan syndication € 115 million (own account) € 420 million (total) Kazakhstan 2005 and 2007 Loan syndication for KaR-Tel $ 65 million (own account) $ 130 million (total) Kazakhstan 2003 Loan syndication $ 60 million (own account) $ 110 million (total) Albania 2008 Privatisation - Loan syndication € 30 million (own account) € 100 million (total) Poland 1998 Equity (IPO) $ 76 million Poland 2011 Equity € 200 million Russia 2006, 2008, 2010 Loan and equity $ 40 million Russia 2011 Rouble Bond Issue RUR 2 billion (own account) RUR 13 billion (total)

24. Verona 28 October 2011 24 EBRD in ICT Selected Transactions in Media Czech Republic 2002 Acquisition debt $ 10 million (own account) $ 35 million (total) Poland 2003 Acquisition debt € 22.5 million (own account) € 52.5 million (total) Romania 2007 Loan and equity $ 8 million (own account) $ 15.5 million (total) Russian Federation 2003 to 2005 Loan syndication $ 90 million (own account) $ 130 million (total) Romania 2003 Debt Co-financing $ 7 million (own account) $ 11 million (total) Regional CEE 2006 Loan syndication $ 50 million (own account) $ 100 million (total) Ukraine 2007 Equity € 22.2 million (own account) € 200 million (total) Kazakhstan 2009 Loan to RTS Decaux $ 5 million (own account)

25. Verona 28 October 2011 25 EBRD has invested over EUR 300 millions in the pharmaceutical sector for manufacturing, distribution and retail pharmacies. Russia 2010 Equity € 15 million Russia 2004 to 2011 Loan + Equity +Loan € 58 million Ukraine 2010 Equity $ 11.5 million Armenia 2005 to 2010 Equity and Loan EUR 1.9 million Hemopharm Serbia 2002 to 2004 Loans EUR 40 million EBRD in Pharma Selected Transactions Ukraine 2006 Loan € 32 million

26. Verona 28 October 2011 26 Petrovax: Background Petrovax is a Russian pharmaceutical company focused on development and commercialization of vaccines and drugs in the field of immunology. The firm had in 2003 one key product (polyoxidonium) an immune stimulant and an adjuvant for the flu vaccine. Petrovax turnover in 2003 was EUR 5 millions. Strengths Intellectual property based on polyoxidonium molecule Highly knowledgeable and ambitious scientific team Key niche products Weaknesses Limited financial resources for R&D Limited production facilities and capabilities Low brand awareness

27. Verona 28 October 2011 27 Year: 2004 “Vaccine Project”: Construction of a state-of-the-art manufacturing facility for production of flu vaccine in syringes. And the development of a new flu vaccine in a partnership with a leading pharma player. Partner: Abbott EBRD Finance: EUR 25 million loan Petrovax: Vaccine Project

28. Verona 28 October 2011 28 Year: 2008 “R&D Project”: Construction of a 2nd production line. Clinical trials, registration and commercialization of 2 new products; improvement in the organizational structure and corporate governance. EBRD Finance: EUR 15 million equity Petrovax: R&D Project

29. Verona 28 October 2011 29 Year: 2011 “Innovative Pipeline”: Development and commercialization of 3 new innovative medicines. Potential Co-Investor: Rusnano EBRD Finance: EUR 18 million debt Petrovax: Next Innovation

30. Verona 28 October 2011 30 Industry Position today: A leading Russian pharmaceutical player with GMP facilities and a strong portfolio of branded products and products at various stages of development. Petrovax has several IP and production collaborations with the world’s leading pharma companies. Partnerships with global companies: Sales: More than 10x increase in sales and profitability over the last 5 years and growing. Corporate Governance and Jobs: New jobs for a new generation of researchers. Implementation of IFRS, modern MIS and corporate governance practices. Petrovax Case Story: Status Today

31. Verona 28 October 2011 31 Collapse of Soviet Union Russia crisis Putin promises to double GDP within a decade GDP per capita in USD has only just returned to levels of 1991 Comments on Russia’s outlook: Medium term outlook has improved and Russia has still lots of potential with medium term growth at 4-5%

32. Verona 28 October 2011 32 The root of a tree that grew up in wind is strong EBRD is the largest financial investor in Russia oAAA rated IFI and a long-term view oactive in 48 Russian regions oseven regional offices in Russia o120 professionals on the ground with a passion to support your investment Thank you! Eric Rasmussen Director, Industry, Commerce & Agribusiness Russia Business Group Tel: +7 495 787 1111 (ext 164) Email: rasmusse@ebrd.com

33. Verona 28 October 2011 33 Annex. How to obtain EBRD financing Financing requirements How to obtain finance? Ensure appropriate returns by carefully assessing the risks:  Management strength and strategy, brands  Clear business plan and project costs  Transparency of operations / IFRS  Disclosed identity of final shareholders and corporate structure  Identified and limited tax liability risk  Recourse to subsidiaries generating profits and holding assets Ensure appropriate returns by carefully assessing the risks:  Management strength and strategy, brands  Clear business plan and project costs  Transparency of operations / IFRS  Disclosed identity of final shareholders and corporate structure  Identified and limited tax liability risk  Recourse to subsidiaries generating profits and holding assets  Provide EBRD with an overview of proposed investment  Commitment to cooperation  clarify role of EBRD  mandate to initiate transaction  mutual understanding of corporate integrity issues  Project / business plan, market analysis, strategy, ownership structure, financial analysis, risk assessment  Exit strategy  Provide EBRD with an overview of proposed investment  Commitment to cooperation  clarify role of EBRD  mandate to initiate transaction  mutual understanding of corporate integrity issues  Project / business plan, market analysis, strategy, ownership structure, financial analysis, risk assessment  Exit strategy www.ebrd.com