1. Staffing in Russia Discover perspective Alexey Mironov Director, Strategic Development

2. 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 1 600 customers  Operates through 42 branches in 4 countries (33 in Russia, 3 in Kazakhstan, 5 in Ukraine and 1 in Belarus)  Employs about 1 200 staff and processes 26 000+ search mandates annually  Products portfolio includes perm and contract staffing, BPO and HR consulting

3. 3 ANCOR Financials USD mln Placements Discover perspective

4. 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

5. 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

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7. 2010: 606 non-employable VS 1,000 employable people 2020: 795 VS 1,000 Permanent Birth Rate ScenarioUpperMiddleLower Discover perspective

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

9. Salaries  Differences in salaries among Moscow and regions - 20-50 %.  Forecasted salary increase for 2012 around 8-10 %. *according to the data of CASE company 9 Discover perspective

10. Relocation Map Discover perspective

11. 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%

12. Big employers 12 12 plants 10 000 employees 40 plants 25 000 employees 15 plants 18 000 employees 63 stores in 42 regions 18 000 employees 20 000 branches 270 000 employees 376 300 employees 1 000 000 employees 60 000 employees 275 000 employees Discover perspective

13. GP Breakdown = Industries coverage Discover perspective

14. 14 Evolution of staffing market Permanent recruitment, Moscow Regions Contract staffing Business Process Outsourcing 1990-1998 1993-1995 1998-1999 Since 2009 HR consulting, salary services, assessment Since 2000 Discover perspective

15. International players 15 CompanyIn Russia sinceBranches Kelly Services199323 Manpower19947 Adecco200213 Michael Page20061 Hays20091 Antal19941 Discover perspective

16. 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

17. 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

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

19. Thank you for your attention! Alexey Mironov Director, Strategic Development ANCOR Tel.: +7 (495) 926-41-00, 789-89-59 www.ancor.ru 19 Discover perspective