Mercer Pulse Survey Observations in Russia – Recent Developments

1. Mercer Pulse Survey Observations in Russia – Recent Developments Human Capital Solutions Moscow

2. About Mercer • Mercer is a leading global provider of consulting, outsourcingand investment services, with more than 25,000clients worldwide. • Mercer’s global network of 18,000 employees, based inmore than 40 countries, ensuresintegrated, worldwidesolutions. • Mercer is experienced inassisting both major and growing, mid-size companies. • The company is a wholly owned subsidiary of Marsh &McLennan Companies, Inc., which lists its stock (tickersymbol: MMC) on the New York, Chicago and London stockexchanges.

3. About HCS Human Capital Solutions • Human Capital strategy & organization design • Corporate Structures Designs • Split of accountabilities • Functional descriptions • Human Capital strategy development • Information Product Solutions • Total Remuneration Survey • Industry-specific surveys • MERG (Top Executives) • Job Pricing • Pulse Survey • Performance Management • Competency Model Design • Performance Systems Design • Assessment tools • KPI’s design • M&A Assistance • Pre-deal HR due diligence • Integration plan design • Corporate Culture Assessment • Change Management • Communication Strategy design • HR initiatives Implementation support • Design of communication materials • Rewards Services • Pay Policy design • Bonus Systems Design • LTI • Executive Remuneration • Job Evaluation

4. Surveys picture • Total Remuneration Survey • CEECBF (Central and Eastern European Compensation and Benefits Forum) • Anti-crisis measures and policies TRS Pulse Survey Industry Specific Surveys MERG • Mercer Executive Remuneration Guide • Oil & Gas • Financial (incl. Banking, Investment, Insurance) • Information Technology

5. Pulse Survey

6. Key features Mercer’s Pulse Surveyis primarily focused on measures and policies either planned or already implemented by organizations in a period of global financial turmoil. It covers the following aspects: Organizational structure and headcount • Headcount increase/decrease • Severance pay amount • Organizational structure review • Overall personnel cost reduction Base salary Short Term Incentives Long Term Incentives Any fluctuations or changes in: • Base salary • Variable bonus • LTI policies Benefits area • What benefits were partially cut • What benefits were canceled • Implementation of what previously planned benefits was postponed or canceled due to economic crisis

7. Participants More than 50 participants of the survey from large local and international companies were categorized as follows: Industry Type: Parent/Subsidiary: Local/International:

8. Main results • Changes in Headcount policies • 8% of the participants are going to reduce vacancies only; 2% are planning to reduce employees only; 43% will reduce both. The average reduction is 8%. • 60% of the companies plan to impose hiring freeze either for support or for all functions. The median duration of the hiring freeze is 12 months. • 26% of the companies plan to increase headcount during 2009 1st half. • Comparison with November data • Number of companies reducing the HC has grown slightly, from 50% up to 53%. However the percent of companies planning to reduce not just vacancies but also employees increased form 48% to 86%. • Hiring freeze duration has doubled over 2 months, from 6 months to 1 year. • The number of participants planning to optimize organizational structure has increased by 14 percentage points, from 33% to 47%.

9. Main results • Changes in compensation and benefits policies. • 38% of the companies are not planning to change salaries. The rest are planning to increase salaries by 10% in average. • 81% of the survey participants are not planning to reduce payment of annual bonus. 19% of the participants will reduce it by 44% in average. • 51% of the companies are planning to cut benefits partially. Among the partially cut benefits the most popular are training & education, corporate events, mobile phones and business trips. • Comparison with November data. • % of companies planning to increase salaries remained the same - 62%. • In the previous survey companies were going to decrease annual bonus by 25%, now this decrease is planned to be 44%. • General approach to benefits reduction has not changed. At the same time, the list of cut benefits considerably extended.

10. Appendix

11. TRS Total Remuneration Survey

12. Key features Mercer’s Total Remuneration Surveyis made up of five components and allow you to choose whether to subscribe to total remuneration data (COMP 1-5) or cash compensation alone (COMP 1-3), providing maximum flexibility.

13. Positions and functions surveyed TRS 2008 Participants: Legal Entities………………….. …………… 264 Group Companies…………… …………….131 Incumbents Represented……………… 90 675 • Administration • Engineering • Finance • General Management • Human Resources • Information Technology • Logistics & Purchasing • Marketing • Manufacturing • Research & Development • Sales Mercer’s Total Remuneration Survey coversmore than 400 benchmark positions from senior management to staff levelsacross all major functions:

14. Sample reports

15. MERG Executive Remuneration

16. Austria Baltics (x3) Czech Republic Denmark Finland France Germany Hungary Ireland Italy Middle East MERG surveyOverview MERG - countries • Netherlands • Norway • Poland • Portugal • Russia • Spain • Sweden • Switzerland • Turkey • UK

17. MERG surveyTarget Audience Boardroom – executive remuneration committees CEOs/CFOs/Head HR Senior executives Executive remuneration specialists Used ► to decide on pay levels and to design remuneration plans – bonus/LTI/Benefits/mix.

18. MERG surveySample Reports

19. MERGKey MERG contact details MERG Project Manager (Europe): Velma Roberts (+353 1 6039732) MERG Project Manager (Russia) Alexey Zhurbenko (+7 903 523 4598) MERG Coordination Leader (Russia) Valeria Stolyarova (+7 962 945 1019) MERG consultant contacts in each Country: Available on www.imercer.com/MERG MERG processing contacts in each Country: Available on the intranethttp://home.mercer.com/globalhumancapital/Segment_Pages/er/survey_solic_europe.asp

20. Other relevant Mercer surveys

21. Surveys by industry Mercer industry-specific surveys provide information on salary and benefits for management, executive and support functions in companies engaged in a specific industry. • Oil & gas • Financial (incl. Banking, Investment, Insurance) • Information Technology Industries covered: Surveys calendar: TRS/CEECBF MERG Oil&Gas March April May June July August September October November IT Financial

22. Contacts • Sergey Gadetsky, General Manager sergey.gadetsky@hcsrussia.ru +7 903 523 4607 • Alexey Zhurbenko, M&A, Organization design alexey.zhurbenko@hcsrussia.ru +7 903 523 4598 • Gleb Khimichev, Rewards gleb.khimichev@hcsrussia.ru +7 962 945 11 19 • Maxim Belukhin, Performance Management maxim.belukhin@hcsrussia.ru +7 903 151 09 55 • Valeria Stolyarova, Information Product Solutions valeria.stolyarova@hcsrussia.ru +7 962 945 1019

23. www.mercer.ie