are experiencing.” “The Russian Direct Investment Fund has already attracted strong interest from top global investors and its project pipeline is growing.”

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“Today the positive dynamic of the Russian economy, the accumulated safety factors and our reserves allow us to set new ambitious goals.”

“The Russian Direct Investment Fund is now up and running.

Practically all centers of global capital – the Middle East, China, Europe, the United States and Australia – are working with the Fund.”

Vladimir Putin, President of Russia

“Russia has developed and achieved some good results, especially in light of the difficulties that global markets are experiencing.”

“The Russian Direct Investment Fund has already attracted strong interest from top global investors and its project pipeline is growing.”

Dmitry Medvedev, Prime Minister of Russia

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GROWTH OF MODERN RUSSIA IN NUMBERS

WHY INVEST IN RUSSIA?

RUSSIA = GROWTH

Sources: World Bank, Cеntral Bank of Russia, IMF, Economist Intelligence Unit

Russia is the world’s 5th largest economy by GDP (PPP).

The Russian economy is expected to grow from $2 trillion in 2012 to over

$3.3 trillion in 2017.

Russia has one of the largest domestic markets in the world, ranking 9^th among 142 countries.

Middle class tripled in the last five years and disposable income grew 53% from

$4 850 per capita in 2008 to $7 430 per capita in 2012.

3^rd largest foreign reserves totaling $538 billion.

Russia has one of the lowest levels of public debt of any major economy, currently stated at less than 11% of GDP for 2012.

GDP per capita is the largest among BRIC countries ($17 709).

Russian GDP per capita increased compared to that of the USA from 1/20 in 2000 to 1/3 in 2012.

Low unemployment rate of 5.7%.

1999 2012

GDP per capita, PPP $ 6 787 17 709

Nominal GDP per capita, $ 1 331 14 247

Federal budget expenditures, $ bn 27 416

Central bank of Russia reserves, $ bn 12 538

Average nominal monthly wage, $ 62 738

Assets of Russian Banking System, $ bn 59 1 598

Capitalization of Russian stock market, $ bn 40 875

Public debt, % of GDP 88.7% 10.9%

Inflation 36.5% 6.6%

Sources: World Bank, Cеntral Bank of Russia, IMF, Economist Intelligence Unit

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GROWTH OF MODERN RUSSIA IN NUMBERS

Sources: World Bank, Cеntral Bank of Russia, IMF, Economist Intelligence Unit Sources: World Bank, Cеntral Bank of Russia, IMF, Economist Intelligence Unit, Moscow Exchange

GROWTH OF MODERN RUSSIA IN NUMBERS

Russia’s GDP per capita almost tripled since 1999 Total value of assets of Russian Banking System rose more than 25 times

Central Bank of Russia reserves increased almost 45 times Capitalization of the Russian Stock Market grew more than 20 times 1999 $ 6 787 1999

2012

2012 $ 17 709

$ 59 bn

$ 1 598 bn

1999 $ 12 bn 1999

2012

2012 $ 538 bn

$ 40 bn

$ 875 bn

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INVESTOR PERSPECTIVE ON RUSSIA

Source: Investment Climate in Russia 2012: Existing and Potential Investors Survey by Foreign Investment Advisory Counsel

Level of investors’ satisfaction

1%

17%

56% 26% 71%

2%

8%

19%

HIGH

MEDIUM

MIXED LOW

Moving in the right direction Hard to say Slowed down in the last year 47%

25%

28%

22%

6%

72%

Investors in Investors in

2007 2012

Investors in Investors in

2007 2012

Assessment of developments in Russian economic policy and legislative system

Source: Investment Climate in Russia 2012: Existing and Potential Investors Survey by Foreign Investment Advisory Counsel

82% of investors are convinced that the large domestic market, developing consumer finance sector, growing levels of savings and personal income present attractive investment opportunities.

84% of respondents noted that joining the WTO had a significant positive impact on the Russian investment climate.

Over 70% of investors who previously invested in Russia are happy about their decision.

72% of investors positively value the economic policy and legislative changes introduced by the Russian government to improve the investment climate.

82%

72% 84%

70%

28% 16%

30% 18%

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INTERNATIONAL

INVESTORS ABOUT RDIF

ABOUT RDIF

The Russian Direct Investment Fund (RDIF) is a $10 billion fund established by the Russian government to make equity investments primarily in the Russian economy.

RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia.

Since inception the fund has invested more than $3.5 billion into leading Russian companies, of which $850 million were invested by RDIF and $2.8 billion came from international co-investors.

RDIF also attracted $9 billion of foreign capital into the Russian economy through long-term strategic partnerships.

“The idea of RDIF is unique. Many private equity funds are established every day but there is only one fund in the world where a country says: “I am sending $10 billion and welcome anyone who would like to partner with me on good terms” – this is the only fund we have seen on these terms.”

Bader M. Al-Sa’ad, Managing Director, Kuwait Investment Authority

“Given the track record and caliber of the RDIF team we are confident that our collaboration will deliver long-term financial returns and development opportunities.”

Khaldoon Al Mubarak, Chief Executive Officer, Mubadala

“RDIF is a great opportunity to wake up people who were not engaged in the market and were cautious about it.”

Stephen Schwarzman, Founder, Chairman and Chief Executive Officer, Blackstone Group

“Creation of RDIF is a very interesting step and a great model together with a team that was created - TPG will definitely work with them.”

David Bonderman, Managing Partner, TPG

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OTHER RDIF’S INITIATIVES

RDIF acted as the anchor investor in the IPO of the Moscow Exchange and it proactively sourced leading international co-investors from the US and China. In addition, prior to the IPO RDIF brought a number of co-investors to the Exchange including the China Investment Corporation (CIC), BlackRock, the European Bank of Reconstruction and Development (EBRD), and Cartesian Capital.

RDIF acted as the anchor investor in the IPO of the MD Medical Group (MDMG) bringing BlackRock, Russia Partners and other qualified institutions as co-investors. MDMG is the No 1 private network of prenatal clinics and hospitals in Russia.

Consortium of RDIF, Baring Vostok Capital Partners and UFG together with media entrepreneur Paul Heth acquired a controlling stake in Karo Film, one of Russia’s leading and fast developing cinema chains.

Consortium of RDIF, Macquarie Renaissance Infrastructure Fund (MRIF), AGC Equity Partners and Xenon Capital Partners acquired a blocking stake in Enel OGK-5, one of the leading power generating companies in Russia. This was the largest private equity deal in the energy sector. Investment by AGC in this deal was the largest ever investment in Russia from a Middle Eastern investor.

OVERVIEW OF RECENT TRANSACTIONS

2013 marked the year of Russia’s G20/B20 presidency. RDIF led B20

“Investments and infrastructure” taskforce. At the G20 Summit in St- Petersburg in September the recommendations of the group were presented to Russian President Vladimir Putin and other leaders of G20 countries.

Each year as part of the St. Petersburg International Economic Forum RDIF organizes a panel discussion dedicated to investment opportunities in Russia, as well as a traditional meeting between Russian President Vladimir Putin and the leaders of global investment community.

RDIF’s CEO has been appointed to represent Russia at the BRICS Business Council launched to foster multilateral investment among BRICS countries.

RDIF’s CEO also represents Russia at the APEC Business Advisory Council (ABAC). Set up to drive global growth and stability of APEC economies.

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RDIF has attracted a number of leading foreign investors from North America, Middle East, Western and Northern Europe and Southeast Asia into a consortium to invest in the IPO of ALROSA, a Russian diamond company. ALROSA is the world’s largest diamond producer by output in carats.

RDIF and General Electric (GE) signed an agreement to jointly invest $100 million in construction of distributed power co- generation systems (up to 25 MW) to meet the growing energy demand for the developing industrial infrastructure of the Russian regions.

RDIF and Deutsche Bank, one of the leading international banks, made a joint investment in one of Russia’s largest telecommunications company, Rostelecom. The investment will be used to further develop and strengthen the company’s market position.

A consortium comprised of RDIF, One Equity Partners and Titan International Inc., leading international strategic player, agreed to jointly invest in Voltyre-Prom, the largest producer of agricultural and industrial tyres in Russia & CIS.

RDIF invested in Russian Forest Products, Russia’s second largest timber industry company – the first investment of the Russia-China Investment Fund, the joint fund of RDIF and China Investment Corporation (CIC).

RDIF led the consortium of investors including the European Bank for Reconstruction and Development (EBRD) and CapMan, one of the leading Nordic alternative asset managers. The consortium invested $100 million in growth of MAYKOR, the leading player in the Russian IT servicing and outsourcing market.

OVERVIEW OF RECENT

TRANSACTIONS OVERVIEW OF RECENT

TRANSACTIONS

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RDIF PARTNERSHIPS

RDIF and Abu-Dhabi’s Department of Finance announced the creation of the partnership for investing in Russian infrastructure projects and developing cross-border investment cooperation between Russia and UAE. Abu-Dhabi’s Department of Finance will contribute up to $5 billion.

RDIF led creation of a Pre-IPO Consortium together with BlackRock, Franklin Templeton and Goldman Sachs. The consortium will invest in promising Russian companies planning to hold an IPO on the Moscow Exchange in the near to medium term.

RDIF, Vnesheconombank (VEB) and the Japan Bank for International Cooperation (JBIC) have signed a joint memorandum creating the Russian-Japanese Investment Platform.

RDIF and JBIC will each invest $500 million.

VEB will potentially provide financing to fund projects and design new financial products to support the platform. This platform will drive economic cooperation, trade and investment between Russia and Japan, as well as facilitate the exchange of technologies and expertise.

RDIF and the Korea Investment Corporation (KIC) have signed a memorandum to form the Russian-Korean Investment Platform.

The investment platform will focus on cross- border investments, which fulfill Russian- Korean strategic interests.

RDIF PARTNERSHIPS

Together with China Investment Corporation (CIC) RDIF created a $2 billion Russia-China Investment Fund, 70% of which will be invested in Russia. An additional $1-2 billion is expected to be raised from Chinese and international investors.

RDIF launched an automatic co-investment mechanism, with the first $500 million from Kuwait Investment Authority. This vehicle allows international investors to automatically participate in every RDIF transaction on a pro- rata basis.

RDIF and Mubadala Development Company (Mubadala), the Abu Dhabi-based investment and development company, agreed to launch a $2 billion co-investment fund to pursue opportunities in Russia. The fund will predominantly focus on long-term investment projects across a range of industry sectors.

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SUPERVISORY BOARD

Supervisory Board

Alexei V. Ulyukaev Minister of Economic Development of the Russian Federation Elvira S. Nabiullina Chairperson of the Bank of Russia

Andrey R. Belousov Aide to the President of the Russian Federation

Kirill A. Dmitriev Chief Executive Ofﬁcer Russian Direct Investment Fund

Chief of Staff to the President of the Russian Federation

Anton G. Siluanov Minister of Finance of the Russian Federation

Vladimir A. Dmitriev Chairman

Vnesheconombank

Laurent Vigier Director of European and International Affairs of the Caisse des Dépôts Group Sergei B. Ivanov

Dominique Strauss-Kahn Managing Director

Parnasse SARL Josh Lerner

Jacob H. Schiff Professor of Investment Banking Harvard Business School

INTERNATIONAL ADVISORY BOARD International Advisory Board

Gao President,

China Investment Corporation (CIC)

Bader Mohammad Al-Sa'ad

Managing Director Kuwait Investment Authority Ahmad Mohamed Al-Sayed CEO

Qatar Investment Authority

Khaldoon Khalifa Al-Mubarak CEO & Managing Director Mubadala

Tadashi Maeda Managing Executive Ofﬁcer Japan Bank for International Cooperation

Stephen Schwarzman Chairman CEO

Blackstone Group Xiqing

Leon Black Chairman,

Chief Executive Ofﬁcer Apollo Global Management David Bonderman Managing Partner TPG

Dr. Joseph Schull Head of European Operations Warburg Pincus

Kurt Bjorklund Co-managing Partner Permira

Chong-Suk Choi President & CEO, Chairman of the Board of Directors

Korea Investment Corporation

Dr. Martin Halusa CEO

Apax Partners

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Presnenskaya Nab., 8/1 Moscow, Russia, 123317 Tel.: (+7 495) 644-34-14 Fax: (+7 495) 644-34-13 [email protected]

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