HMS Group FY 2013 IFRS Results Conference call presentation

1. HMS GroupFY 2013 IFRS Results Conference call presentation April 2014

2. Financial results Business & Outlook Appendix

3. Financial Highlights Financial highlights*, Rub mn Revenue performance 2007-2013* CAGR +13% EBITDA performance 2007-2013* CAGR +20% *The data are adjusted for SKMN disposal, unless otherwise stated ¹Hereinafter, read EBITDA as EBITDA adjusted, EBITDA margin as EBITDA adjusted margin ²Excluding the impairment of construction business and excess of fair value of net assets acquired over the cost of acquisition ³Formulas for calculation - see slide 16

4. Revenue & EBITDA Contribution by Segments Pumps Oil & gas equipment Revenue +3% EBITDA -11% Revenue -1% EBITDA -37% • Decline in the segment’s profitability was attributable to lower share of large-scale projects: in EBITDA their share decreased from 53% in 2012 to 36% in 2013 • Excluding large-scale projects, the segment’s revenue grew by 13% and EBITDA increased by 23% yoy • EBITDA decrease was caused by high base of 2012, when HMS executed Vankor project • Vankor project accounted for Rub 2.7bn in revenue in 2012 • In 2013, the segment served exclusively small and medium-sized orders for standard tanks, vessels and measuring equipment EPC Compressors Revenue +37% EBITDA +115% Revenue -45% EBITDA -160% • Data for 2012 includes the results of KKM for the full year 2012 • The segment delivered weak results in 2013: revenue declined almost twofold and EBITDA turned negative • The segment’s poor performance was attributable to the construction sub-segment, while project and design sub-segment showed growth both in revenue and EBITDA • The contracts signed by KKM since its joining HMS Group boosted the segment’s revenue and EBITDA, which grew by 37% and 115% yoy respectively. For more information - see slide 6 For more information - see slide 5

5. EPC Segment Overview EPC performance 2012 vs 2013 Project & Design sub-segment performance Revenue -45% EBITDA -160% Revenue 0% EBITDA +114% Comments TGS performance (continuing operations) • EPC business segment demonstrated weak results in 2013 with revenue decline almost twofold to Rub 2.8bn and EBITDA on a negative side (Rub -204mn) • EBITDA margin growth in Project and Design sub-segment to 12.1% for 2013 was not able to offset the decline in EBITDA margin in construction business. • The segment’s lackluster performance was attributable to the Construction sub-segment, which showed a Rub 472mn loss on EBITDA line • The construction sib-segment is represented only by the construction subsidiary TGS • The company has already disposed its construction subsidiary SKMN and intends to dispose or close-down the second one (TGS) • The size of TGS business has already reduced to limit risks related to the asset. • . Revenue -80% EBITDA -319% TGS and SKMN performance (discontinued operations) Revenue -56% EBITDA -245%

6. KKM: One Year With HMS Group KKM performance 2012 vs 2013 New strategy for KKM: focus on integrated solutions • Further integration of KKM with the Group and NIITK • Value of one gas pumping station (integrated solution) for the trunk gas pipeline is similar to current annual revenue of KKM (around Rub 3bn) • There are no “one-stop shop” providers of integrated solutions in Russia with experience similar to HMS (ESPO-1, ESPO-2) • KKM produced and delivered a compressor station for Usinskiy Gas Processing Plant (Lukoil) under a contract signed after M&A • The company targets a number of large projects in oil & gas • Additional cost saving programmes are launched Revenue +34% EBITDA +110% • Data for 2012 includes the results of KKM for the full year 2012 Main factors of revenue and profitability growth in compressors segment 1. Capability to secure large contracts for compressor-based integrated solutions Current status: • HMS has a strong track record with Russian majors • 3 compressor station contracts signed since the acquisition of KKM 2. Competences in project & design of a compressor-based integrated solution • Technical solutions, more profitable for a producer • Strong negotiation power towards suppliers Current status: • The compressor design center NIITK (Turbokompressor) acquired in April 2013 3. Competences in large flow control project management Current status: • ESPO, Vankor, Turkmenia, Lukoil All 3 factors, brought together, led to revenue and EBITDA growth already. However an integration process is not completed yet. According to the integration plan, a number of issues are to be addressed to reach sustainability and further growth

7. Contribution of Large-scale Projects to Revenue and EBITDA The Group’s performance in 2012-2013 Share of large-scale projects in revenue Revenue +3% EBITDA -14% Comments Share of large-scale projects in EBITDA • Average margin of large-scale projects is 20-30%, while average margin of regular business is about 13% • Lower share of large-scale projects in 2013 negatively affected the Group’s profitability – EBITDA margin decreased by 3% • Large-scale projects include the ESPO, Vankor, Taas-Yurakh, Zapolyarye-Purpe, Turkmenia and Stavrolen

8. Cost Analysis Cost of sales Comments • Cost of sales grew by 7% yoy, driven by full consolidation of KKM and Apollo in 2013 • Main components of cost of sales – supplies and raw materials combined with COGS – accounted for 41% of revenue, almost the same share as in the previous year Distribution & transportation expenses Distribution and transportation expenses were up 11% yoy and accounted for 4.3% of the revenue. The share of transportation costs grew from 1.3% to 1.7% of revenue being the major factor behind growth of distribution and transportation costs General & administrative expenses General and administrative costs grew by 5% yoy remaining flat yoy as a percentage of revenue The company kept its promise to hold labour costs at the current level - they comprised 8% of revenue Increase in tax and duties by 38% was attributable to payment of local tax under Turkmenia project Source: Company data

9. CAPEX & Working Capital Capital expenditures22013 vs 2012 Cash flow performance in 2012-2013, Rub mn Comments Working capital • Operating cash flow increased to Rub 4,728 mn compared to Rub 3,322 mn in 2012 • Free cash flow in 2013 turned positive due to absence of large M&A deals that caused substantial outflow of capital in 2012 • Working capital1 decreased by 23% yoy • Key factors behind working capital decrease: • optimisation of payables and receivables; • payments received under executed large contracts; • advance payments under new contracts • Working capital amounted to 16% of revenue versus 21% of revenue in 2012 • Organic capex2 increased to Rub 1.5bn from Rub 1.2bn last year • Capex-to-Depreciation-and-Amortization ratio decreased to 1.2x from 1.5x 21% of revenue 16% of revenue ¹Working capital formula – see slide 16 ²Capital expenditures=Organic CAPEX = Purchase of PPE + Purchase of intangible assets Source: Company data

10. Financial Position Comfortable repayment schedule Net debt to EBITDA ratio Available liquidity 4.5 Rub bn Cash 1,584 2,937 Source: Company data as of 1 January, 2014 Source: Company data Low currency and maturity risks Comments Short-term debt 9.2% Credits in Rub 84.0% • Net debt decreased by 8% yoy due to working capital optimisation • Net Debt to EBITDA ratio increased to 2.1xfrom 2.0x • Available liquidity of Rub 4.5 bn fully covers 2014E repayments • Average interest rate was 9.5% on 1 January 2014 for all loans, including FX-denominated • 2013 Interest coverage ratio¹ equals 2.8 • In March 2014, Standard and Poor’s Rating Services affirmed the Group’s “B” long-term credit rating and removed the rating from CreditWatch with negative implications, where they were placed in December 2013. Long-term debt 90.8% Euro 11.0% Others 5.0% S&P corporate credit rating: B Outlook: stable Upgrade on March 2014 Floating rate 0.2% Fixed rate 99.8% ¹EBIT / Interest expenses Source: Company data as of 1 January, 2014

11. Financial results Business & Outlook Appendix

12. Backlog & Order Intake Backlog for 12m in 2011-2013 Order intakefor 12m in 2011-2013 +18% +5% +62% The data are adjusted for SKMN disposal Source: Company data, Management accounts

13. Summary 1. Focus on R&D and flow control machine-building • The Group’s machine-building segments (industrial pumps, compressors and oil & gas equipment) as well as the key project and design subsidiary GTNG delivered results in line with the management’s expectations • Construction sub-segment (operating results and impairment of assets) was the key disappointment in 2013 • . 2. Strategic disposal of construction business • The company has already disposed the construction subsidiary SKMN • The company plans either to sell or close down TGS business. The company has already strongly downsized TGS’s business to reduce risks related to this asset • . 3. Dividend payments • The company’s Board of Directors on 24 April 2014 has recommended the payment a final dividend of 3.41 RUB per ordinary share, amounting to a total dividend of Rub 400 mn • The reduced level of dividend payments reflects recently emerged uncertainties with CAPEX programmes of oil & gas companies and new risks arisen from the political crises in the Ukraine, where the Group has one of its core asset located (NEM)

14. Contacts Investor Relations Phone +7 (495) 730-66-01 ir@hms.ru http://grouphms.com/shareholders_and_investors/ Twitter HMSGroup and HMSGroup_Rus Vera Timoshenko, Head of Investor Relations timoshenko@hms.ru Company address: 7 Chayanova Str. Moscow 125047 Russia HMS Hydraulic Machines & Systems Group Plc is listed on the London Stock Exchange (Main market, IOB): IdentifierNumber Number of shares outstanding ISIN US40425X2099 117,163,427 Ticker HMSG Bloomberg HMSG LI Reuters HMSGq.L

15. Financial results Business & Outlook Appendix

16. Calculations and Formulas Notes to the presentation and formulas used for some figures’ calculations • All figures in millions of Russian Rubles, unless otherwise stated • Management of the Group assesses the performance of operating segments based on a measure of adjusted EBITDA, which is derived from the consolidated financial statements prepared in accordance with IFRS • EBITDAis defined as operating profit/loss adjusted for other operating income/expenses, depreciation and amortization, impairment of assets, provision for obsolete inventory, provision for impairment of accounts receivable, unused vacation allowance, defined benefits scheme expense, warranty provision, provision for legal claims, provision for VAT and other taxes receivable, other provisions, excess of fair value of net assets acquired over the cost of acquisition. This measurement basis excludes the effects of non-recurring income and expenses on the results of the operating segments • EBITis calculated as Gross margin minus Distribution & transportation expenses minus General & administrative expenses minus Other operating expenses • Total debt is calculated as Long-term borrowings plus Short-term borrowings • Net debt is calculated as Total debt minus Cash & cash equivalents at the end of the period • Working capital is calculated as Inventories plus Trade and other receivables, excluding Short-term loans issued, Bank deposits and Promissorynotesreceivable, plus Currentincometaxreceivable minus Tradeand other payables minus Short-term provisions for liabilities and charges minus Current income tax payable minus Other taxes payable. In 2011, Working capital was adjusted for working capital of acquired DGHM (Rub 309 mn) • ROE is calculated as Total equity period average divided by Profit for the year • ROCE is calculated as EBIT LTM divided by Average Capital Employed (Total debt + Total equity) • Backlog is calculated as the preceding backlog plus new or additional customer orders booked during the reporting period, less amounts of contract value booked as revenue under ‘‘Russian GAAP’’ on an unconsolidated basis under the relevant contracts, plus or minus adjustments made in the judgment of the Group’s management. The Group may also make certain adjustments to bookings to reflect amendment, expiry or termination of contracts, cancellation of orders, changes in price terms under contracts or orders, or other factors affecting the amount of potential revenue which the Group believes may be recognized under such contracts. The Group’s backlog estimates are not an indication of potential revenues. Actual revenues and other measures of financial performance under IFRS may differ materially from any estimate of backlog, and changes in backlog between periods may have limited or no correlation to changes in revenue or any other measure of financial performance under IFRS

17. Statement of Financial Position

18. Statement of Comprehensive Income

19. Cash Flows Statement

20. Composition of profit for the period Impact of one-offs on the Group’s profit Impact of construction on the Group’s profit

21. Disclaimer The information contained herein has been prepared using information available to HMS Group (“HMS” or “Group” or “Company”) at the time of preparation of the presentation. External or other factors may have impacted on the business of HMS Group and the content of this presentation, since its preparation. In addition all relevant information about HMS Group may not be included in this presentation. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information. Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty and HMS Group cautions that actual results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Report for a description of the major risk factors. This presentation should not be relied upon as a recommendation or forecast by HMS Group, which does not undertake an obligation to release any revision to these statements. This presentation does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in HMS Group, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.