MICEX CONFERENCE

MICEX CONFERENCE Russia Reboot – trends in Investor Relations and the war for Capital Alex Menage Head of Business Development, Corporate Services, Rapidly Developing Economies

AGENDA • IR Best Practices – the sell and buy side view • How to measure IR Performance? • Capital Markets trends and Fund Flows • Russia on the rise and the use of IR in the War for Capital • Investor Relations Solutions Overview

WHAT IS INVESTOR RELATIONS? Buy-Side • Effective communication of investment story • Understanding strategy • Increase in ownership • Shareholder mix: geographic, type of investor • Concentration of investors • Sell-Side • Sell-side overage • Effective communication of story • Clarity of guidance • Dispersion of consensus • Participation at conferences • Effective analyst day • Other stakeholders • Provide market view to management and employees • Key metrics on sustainability and governance 3 Good investor relations is about building trust, improving knowledge, driving transparency

BEST PRACTICES IN INVESTOR RELATIONS 4 • In the annual Pan-European Extel Survey, top European companies for IR in 2007-2011 outperformed their peers on average by 24% • What are the Europe All Stars doing better? • More aware of key trends - sustainability, divisional directors access and using social media • Put more executive time into meeting prospective and former investors • Take the market pulse regularly by getting feedback on IR program • Don’t spend more money; but spend more wisely on investor days and less on AGMs • Receive bonuses at a higher proportion of salary

WHAT DO THE BUY- & SELL-SIDE VALUE? “The most important thing for investor relations is being available, answering the phone.” Buy-side Analyst Most Valued IR Attributes “When I shoot a quick email to an IR team, I like when they get back to me right away with an answer. I don’t like when you have to set up a time to call three days in advance.” Security Analyst, Sell-Side Firm

ATTRACTING SELL SIDE COVERAGE • Make it as easy as possible for analysts • Historical financials in spreadsheets • Provide consistent KPI’s • Provide additional information about the company • Divisional descriptions • Management videos • Investor factbook • Start a dialogue with analysts • Provide additional sector “colour” • Boutique houses 6

TECHNOLOGY IN INVESTOR RELATIONS • Social media growing rapidly • Twitter most commonly used • Mobile tools for investor relations 7 Technology to enhance communication IR websites and webcasts of earnings calls are the minimum

HOW IROS MEASURE THEIR PERFORMANCE “The share price is important, it’s only one of the KPIs…It’s effective communication with investors, reliability of guidance, transparency, effective disclosure in terms of having a good analyst or investor presentation and managing the earnings release.” European Large Cap Financial IRO 9

HOW IROS MEASURE THEIR PERFORMANCE Mega Cap “One of the key things is whether or not we are communicating our messages well. Are the messages resonating with the sell-side and buy-side? Are they buying more stock or selling? We also conduct perception studies.” Consumer Goods IRO, US Large Cap “We measure our performance with benchmarks and rankings from the EXTEL Survey including number of meetings with existing investors, prospects, those who are underweight our shares and also we create target parameters with shareholder ID. Technology IRO, Germany Mid Cap “We get a variety of feedback from investors we meet with on one-on-ones & during non-deal road shows throughout the year. Then, we use that info to set goals for the following year, for anything that could be improved globally, in terms of IR at company level.” Industrial Goods IRO, Europe Small Cap “Certainly part of it has to do with intelligence, meaning that my relationships both with Thomson Reuters and with the individual trading desks, being able to get answers in a very quick and efficient way to investors” Biotech IRO, U.S. 10

MACRO DRIVEN MARKETS / HIGH CORRELATION 12 • Currently markets driven by broad, powerful factors • Correlation between stocks has risen rapidly over the past decade • Individual company share prices are increasingly driven by the market as a whole • In second half of 2011 there were six days when 490 members of S&P500 moved in the same direction (this has only ever happened 11 times) • Stock-specific factors less important during periods of heightened investor fear

RECENT FUND FLOWS 13 • In 2011, $67 billion was withdrawn from actively managed mutual funds, while ETF’s enjoyed $50 billion inflows • Markets have not favoured stock picking approach – only 30% of US equity funds beat their benchmark in 2011 (after fees), 34% of UK funds

1Q12 LIPPER FUND FLOWS 14 • For the third consecutive quarter, there was inflows into actively managed emerging markets focused equity funds (+$21bn) and outflows from actively managed US focused funds (-$79bn). • As in 2011, there continues to be steady inflows into Income and Dividend orientated mutual funds, with Vanguard's Dividend Growth and M & G’s Global Dividend funds achieving net quarterly inflows of $1.8bn and $1.3bn respectively.

1Q12 LIPPER FUND FLOWS 15 • On a sector basis, consumer cyclical stocks saw new inflow in 1Q12 as well as slight upticks for financial stocks, many of which rebounded in Q1. • Utilities focused funds saw largest redemptions, adding to continued redemptions over the past year.

TOP TEN EMERGING MARKETS FUNDSBY EUM 16 • Looking at the largest emerging markets funds by assets under management, quantitative Value investor Dimensional Fund Advisors, LP added significant money to its emerging market funds, as well as London-based T. Rowe Price.

TOP TEN EMERGING MARKETS FUNDS BY FUND FLOW 17 • London-based Aberdeen Asset Management captured significant inflow in 1Q12, taking the top managed actively managed spot as well as 8th rank overall. • New York City based Vontobel Asset Management, Inc. ranks third this quarter with it’s Virtus Emerging Markets Opportunities Fund.

THE FUTURE LOOKS BRIGHT FOR RUSSIA 19 • It is all about Perception • Privatization plan • Moscow TOP 10 Financial Center by 2020 • Sporting events • New and improved regulations – New CSD law affecting shareholdings disclosure: • Talk to your advisers • Understand the Corporate Governance and Capital Markets impact • Be aware and prepared for the implementation and developments

THE WAR FOR CAPITAL 20 • IR is all about building trust, knowledge and transparency • Align IR targets & activities with business objectives • Stay in tune with latest investor concerns • Be responsive to analyst and investor requests • Use technology effectively to broaden reach • Effective IR will create value over the long term

SCOPE OF THOMSON REUTERS INVESTOR RELATIONS OFFERING Thomson ONE Investor Relations Advisory Services Communication Services Ownership and Contacts Shareholder Identification Hugin InPublic Regulatory release publishing Research Investor Targeting Solutions Webcasting Thomson ONE Mobile Stock Insight Report IR Websites Marketboard Pro for iPad Extel Survey Results Interactive Documents 22

THANK YOU - Q&A

CONTENTS Overview of Thomson ONE Investor Relations Overview of Advisory Services Overview of IR Communications Solutions 24

ANTICIPATE INVESTOR BEHAVIOUR, IDENTIFY RISKS AND OPPORTUNITIES 25 Detailed public ownership data Private ownership data from your Shareholder Analysis Firms and funds records Over 145,000 contacts Bulls, bears, rotators and activists Thomson Reuters iSignal Thomson Reuters Smart Targets

MEASURE THE IMPACT OF YOUR INVESTOR MANAGEMENT PROGRAM 26 Monitor changes in investor holdings View your webcast activity Monitor your IR website traffic

STAY CONNECTED ON THE ROAD WITH THOMSON ONE MOBILE FOR IR Use your Blackberry to access contact information, ownership positions and events in your Thomson ONE IR Contact Management System 27

KEEP YOUR FINGERS ON THE PULSE WITH MARKETBOARD IPAD APP News Real-time research Portfolios and watchlists Market data Events Firms, Funds and Contacts Investor profiles 28

CONTENTS Introducing Thomson Reuters Investor Relations Solutions Overview of Thomson ONE Investor Relations Overview of Advisory Services Overview of IR Communications Solutions 29

THOMSON REUTERSADVISORY SERVICES Actionable insight to support your strategic investor management program Shareholder Analysis • Understand who is buying and selling your company’s financial securities; and why Investor Targeting Solutions • Identify prospective investors and prioritize your outreach efforts Stock Insight Report • Understand what is happening in capital markets and the impact on your shares Extel Survey Results • Benchmark your IR performance against peers and understand best practice 30

SHAREHOLDER ANALYSIS:IDENTIFY YOUR MOST IMPORTANT INSTITUTIONAL INVESTORS Accurately identify your investors at both the firm and fund level: Understand your shareholder composition Understand who is buying and selling your stock and why Prioritise management time with investors Identify new sources of capital Identify unusual trading activities Plan for AGM, roadshows or Capital Markets Days Measure the impact of your IR efforts 31

SHAREHOLDER ANALYSIS:THOMSON REUTERS DELIVERS UNIQUE VALUE TO THE ID PROCESS CONTEXT INTEGRATION QUALITY Broad market perspective • Benchmark your shareholder profile against the largest set of private global ownership data • Leverage unique sector insight • Proprietary tools – quantitative targeting and risk models, mutual fund flows, stock trading by platform • Qualitative insights – understanding the ‘why’ not just the ‘what’ Integrated suite of tools • Desktop – view real-time shareholder positions in Thomson ONE Investor Relations • Mobile – access your shareholder information anywhere • Contact Management System – measure the impact of your outreach with integrated reporting • Investor profiles – include your private ownership trends Reliable information Established network of contacts Dedicated and experienced analysts Specialised teams – sector and regional focus Quality controls – systematic cross-checking Global systems Transparency – source disclosed for each position 32

INVESTOR TARGETING SOLUTIONS:ATTRACT AND RETAIN LONG-TERM QUALITY INVESTORS Available as either an Investor Targeting Project or an annual Targeting Program, use our investor targeting solutions to: Understand investment drivers Prioritise buying opportunities and anticipate selling risk Effectively allocate management time with investors Determine which regions and financial centres you should be visiting Tailor your message for each targeted investor Supplement broker recommendations with unbiased and qualitative insight Measure the impact of your outreach efforts Maximise the return on all investor-focused events you attend 33

INVESTOR TARGETING SOLUTIONS:THOMSON REUTERS DELIVERS UNIQUE VALUE TO THE TARGETING PROCESS INSIGHT KNOWLEDGE INFORMATION In-depth knowledge of your industry Insight into buy-side decision making • As the leading information provider to the buy and sell-side, we have a unique understanding of what investors are looking for • Our analysts are in constant contact with the investment community to monitor the factors driving trading decisions • With 1,500 advisory clients across all major industries and regions, we can provide you with the insight you need to stay ahead of emerging sector and peer trends • We have a global team of experienced targeting specialists • Our analysts access the same information that drives institutional investment decisions including: • Smart Targets • Public and aggregated private ownership data • Benchmark data from Extel • Thomson Reuters fundamentals • StarMine quantitative models • First Call research and estimates Proprietary tools and analytics 34

CONTENTS Introducing Thomson Reuters Investor Relations Solutions Overview of Thomson ONE Investor Relations Overview of Advisory Services Overview of IR Communications Solutions 35

INPUBLIC REGULATORY RELEASE DISTRIBUTION:TAKE CONTROL OF YOUR DISCLOSURE 36 Reach your target audiences cost effectively with full control over your release creation and distribution Easy to use interface - create and format your press releases, manage your internal approval process and distribute your release when you’re ready – 24 X 7

WEBCASTING FOR INVESTOR RELATIONS:DISCLOSE. ENGAGE. MEASURE. 37 Disclose to more than 50,000 institutional and millions of retail investors through our proprietary distribution network Engage a global audience with synchronised slides and interactive features Webcast in multiple languages Measure the impact of your communications with detailed post-event reports

INVESTOR RELATIONS WEBSITES:CREATE A POWERFUL IR WEB PRESENCE FOR YOUR COMPANY 38 Apply best practices we have gathered directly from the buy-side to turn your IR website into the go-to-resource for investors Analyze traffic to your site and know which information is being downloaded from a single dashboard in Thomson ONE Investor Relations. Reduce the time and money your IR team spends developing and maintaining your website Remove your reliance on scarce internal IT resources Attract investors from multiple regions by posting information in local languages

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