Information disclosure: further initiatives

1. Information disclosure: further initiatives

2. Key topics • Overview of ARFI’s networking advantages • Official recognition of IR profession in the Russian Federation • ARFI initiatives: regulations for IR departments • Duty responsibilities • Professional license (IR certificate) • Best practice • Corporate disclosure rules • Committee on the disclosure policy

3. Financial Communications and Investor Relations Association • Founded in 2000 • Comprises leading Russian stock exchanges, financial media, consultants, issuers to come in • No permanent staff • Corporate governance • General meeting • BoD, Executive director, Secretariat • Supervising Board, government officials and experts • Code of Ethics was approvedin 2001 • 7 Committees, IR Club, Working groups • Reorganized in 2008, ex-AFBID

4. committees • ARFI’s affiliates have the right to influence in the IR lanscape developments through participation in initiatives of the committees • Technical Audit (Standards), 2002 • Legislation, 2003 • Ticker Unification, 2007 • Ratings, 2007 • Membership, 2008 • IR Certification, 2008 • International Affairs, 2008

5. IR profession in Russia • The IR qualification requirements were collected and addressed to the Health and Social Development Ministry (a survey of ARFI, 2007) • April 29, 2008 became the official birthday of IR profession in Russia

6. «between Scylla and Charybdis» • IR market in the Russian Federationis «of great potential» and «remarkably growing». • IR profession is underway • IR services have appeared in Russia • «If top management comes to the conclusion that IR is important, then one can easily find an IR professional and adopt best practice».

7. The aim of IR specialists is to build long-term relationships and credibility with our shareholders and potential investors The basic component of Investor Relations is disclosing information about the company’s business, corporate actions, corporate governance, audit, and other material data IR director IR officer Head of IR department IR specialist best practice

8. compensations • RUR 1.6M annually ex. bonuses in average • Top managers annually ex. bonuses RUR2.5-3.5M, up to USD500K • IR specialistRUR1-2M * Source: ARFI, 2007-2008

9. Balanced Development ofIR strategy Annual reports, IR presentations, investment memorandums Information disclosure Investor targeting Road Show Demand’s higher than Supply IR pages on the web sites Investor perception survey Investment Marketing campaigns Financial analysis Public/Private placement services Ratings trends in IR services market

10. IR certification • ARFI standards were recommended to the educational centers in Russia by expertise of the Health and Social Development Ministry • The committee was created in July 2008 to initiate common market educational standards

11. Issue (or its agent) Registrars/ Depositories News agencies/Self-regulated organizations IR services Stock exchanges Проф.участники Investors Disclosure system in Russia

12. New paradigms Issuer • Подход «Single window approach» • News releases vs Press releases • «No news is NOT a good news» Corporate Information Center Intermediaries Investors

13. disclosure policy • Document recommended by the Corporate Governance Code of the FFMS of Russia • Not only public companies • “Must have” for the A-listed companies (1st level 154 issues of 106 issuers, 2nd level 41 issuesof 29 issuers as of June 2008 end)

14. disclosure committee • Its responsibility • Control over disclosure policy • Materiality of information • Not necessary • 3 to 5 members • At the BoD or Executive Board? • First dozen of pioneering issuers

15. contacts • Ms.Olga Rink • ARFI Executive director • www.arfi.ru • mailto: contacts@arfi.ru • Secretariat • Address: 2/1 Tverskaya-Yamskaya street, Moscow, 127006, Russia • Tel.: +7.495.250-89-13 • Faximile: +7.495.251-44-47