12/04/23

BRBC Programme December 17, 2012

• Welcome by Mr. Johan Vanderplaetse, General Director Emerson Russia

• Economic highlights of the last months, Mr. Trouveroy, Ambassador

• Activities of the EBRD in Russia, Mrs. Anna Tokarz, Senior Banker and Mr. Bruno Balvanera, Head of Regional development

Belgium Embassy

© European Bank for Reconstruction and Development 2012 | www.ebrd.com

EBRD, your strong partner in Russia

Bruno Balvanera, Head of Regional DevelopmentAnna Tokarz, Senior Banker, Industry, Commerce & Agribusiness

December 2012

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International Financial Institution

Solid financial position

Development mandate

Largest investor in the region

Established in 1991 and owned by 63 countries and 2 inter-government institutions (EU and EIB)

Capital base of EUR 30bn with AAA/Aaa rating

To foster the transition of 30 countries* from Central and Eastern Europe to Central Asia towards open market-oriented economies

Since 1991 signed EUR 72bn of investments in its countries of operation

What is EBRD?

European Bank for Reconstruction and Development

*In addition to these 30 countries, the process of granting Egypt, Jordan, Morocco and Tunisia “potential recipient country” status is well underway.

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1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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Debt ABV Equity ABV Net Cumulative Business Volume

EBRD’s objectives achieved through financing mainly the private sector

€ billion

We have invested:

over €71.1 billion in more than 3,389 projects since 1991

€9.0 billion in 386 projects in 2010

€9.1 billion in 380 projects in 2011:

–72% in private sector

–Debt 82% & Equity 18%

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Key Strengths of EBRD

Institutional

Strong, internationally recognised financial partner with long-term perspective

Close working relationships with governments

Political leverage thanks to unique mandate and shareholders

Work closely with market sources of capital to fill “market gaps”

Preferred Creditor Status (exempts from payments moratoria)

AAA rating

Operational

Extensive knowledge of local economy, business environment and practices with local presence

Engaged minority partner for business

A business partner who shares risks, including political

Catalyst to access additional equity, debt and trade finance

Provides finance to both private and public sector clients

Highest standards for corporate governance and compliance

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EBRD Countries of Operations

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'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11

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~ 1/3 of EBRD business volume

€20.6 bn in > 700 successful transactions since 1991

€2.9 bn in 2011, 27% growth yoy

Russia is the largest Country of Operations

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Strategic Directions in Russia

Energy Efficiency across all sectors

Modernization & Diversification of Corporate Sector

Infrastructure improvement: transport, municipal, energy

Support of Small and Medium Enterprises

Local Capital Markets and Equity

Knowledge Economy and Innovation

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EBRD’s Key Priorities in Russia

Medium Size and Larger CompaniesMedium Size and

Larger Companies

Promote regional growth

Support modernisation and diversification of industries

Build investor confidence and foster transfer of technologies

Support FDI

Closing the Infrastructure Gap

Closing the Infrastructure Gap

Reduce transport bottlenecks and ensure flow of goods and people

Improve municipal infrastructure

Modernise power generation and remove electricity transmission bottlenecks

Capital Markets and Financial Intermediaries

Capital Markets and Financial Intermediaries

Develop domestic investor base, deepen domestic capital markets

Support banking sector, encourage diversification, capitalisation, risk taking capacity

Foster corporate standards and institutional improvements

Improve Energy Efficiency and Sustainable Use of EnergyImprove Energy Efficiency and Sustainable Use of Energy

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Projects Across Sectors in Russia

Corporate – 40%

*The Bank does not finance defence-related activities, the tobacco industry, selected alcoholic products, substances banned by international law and stand-alone gambling facilities**As of February 2012

14%

26%

20%

40%

Financial institutions – 26%

Energy – 14%Infrastructure – 20%

84%

private sector investments

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EBRD Financing Solutions

Debt

Size

Term

Approach

Currency

Applications

5-7 (up to 12) years

Finance up to 35% of the project (60% with syndication)

Rubles and major foreign currencies

► Greenfield or Brownfield► Modernisation and energy efficiency► Acquisition and consolidation► Privatisation

Exact terms depend on specific needs and market conditions

Typically from 3-7 years

Equity

EUR 10-250m

Trade finance

1.5-2 (up to 3) years

► Issues to international banks ► Takes the risk of transactions of local banks

Mainly through Trade Facilitation Programme

Options ► Senior, subordinated or convertible► Floating or fixed rates

► Portage equity finance► Risk equity

► Import/export operations► Pure guarantees, cash advance trade finance

Usually up to 20% share, minority stake

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Support goals of business and shareholders

Flexible financing (tenors and currencies)

Long-term reliable partner

First step to access international markets

“Stamp of Approval”

EBRD Value Added

Solid local expertise

Local offices in each region

Problem resolution experience

Preferred creditor status

Market intelligence

Knowledge of local business community

For Russian Companies For Foreign Companies

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Working with Foreign Investors in Russia

France15%

USA14%

Germany13%

Italy12%

Japan7%

Finland5%

Sweden5%

Austria5%

Other18%

Turkey6%

Companies from which countries invest most?

27%

of all EBRD volume of investments in Russia are made with a foreign sponsor

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FDI Support Across Industries

65%of EBRD volume of investment with FDI are going to the industries sector

Other13%

Forestry & Paper

6%

Municipal Infrastructure

3%

Transport & Aerospace

9%

Natural Resources &

Energy9%

Construction & Building Materials

9%

Real Estate & Retail10%

Agriculture & Food Production

11%

Auto & Special Equipment

13%

Financial Institutions

(without funds)17%

What industries get most investments?

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We support FDIs in the regions

▼Krasnoyarsk▼Vladivostok

▼ Yekaterinburg▼

▼St. Petersburg

Rostov ▼

▼

Strong FDI presence ▼ Regional offices Some FDI projects

Top Regions where EBRD supported FDI outside Moscow and St. Petersburg Regions:

▲ Kaluga

▲ Nizhniy Novgorod

▲ Rostov

▲ Novgorod

▲ Vologda

▲ Tatarstan

Samara

Moscow

27%

of all EBRD volume of investments in Russia are made with a foreign sponsor

65%of EBRD volume of investment with FDI are going to the industrial sector

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Belgium and EBRD joint cooperation

Total value of projects with Belgium-EBRD involvement: €25.1 billion

Value of joint Belgium-EBRD investment: €6.2 billion as of December 2011

– EBRD investment: €3.7.billion

– Belgian investment: €2.5 billion

Major beneficiary regions: Russia, Hungary, and Slovenia

Dominant investment sectors

– Industry, Commerce and Agribusiness: €2.4 billion

– Infrastructure: €1.9 billion

– Financial Institutions: €1.0 billion

– Energy: €0.8 billionAs of December 2011

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Belgian companies and consultants

Procurement

From 2007 to 2011, Belgian entities won 2 contracts valued at €0.7 million from a total of 669 public sector signed contracts for a total value of €7.1 billion.

Consultancy services

In 2011 Belgian consultants were awarded 28 consultancy contracts with a total value of €594,297.

As of December 2011

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Belgium and Technical Cooperation

Contribution of over €1.9 million in Technical Cooperation (TC) funds supporting projects in manufacturing (mainly through TAM programme) and transport in countries such as Azerbaijan, Kazakhstan and Ukraine.

Contributors are the governments of Belgium, Flanders and Wallonia

Contributor to EBRD’s Multilateral Carbon Credit Fund (over €22 million as of December 2011)

As of December 2011

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Belgium: Trade Facilitation Programme

Since the start of the programme in 1999, EBRD has financed more than 11,629 transactions in the total amount of more than €7.2 billion

Regarding Belgium in particular:

– financed 221 export and import transactions of Belgian companies in the total amount of €52.2 million

– 9 Belgian Confirming Banks (as at December 2011)

As of December 2011

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Belgium and SME Finance Facility

EBRD has committed €20 million to Belgian-owned financial institutions, of which the EU has provided EUR 1.7 million

Belgian financial institutions have taken part through the Polish subsidiary of Fortis

As of January 2012, 1,150 sub-projects have been disbursed for a total volume of €45.2 million

As of December 2011

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EBRD and Belgium

Case Study Examples

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RusVinyl

JV Sponsors: Solvin (Solvay, Belgium/BASF, Germany) and Sibur, a major Russian petrochemicals producer

EBRD financing: EUR 1.3 billion green field plant in the Nizhny Novgorod region: 330 ktpa PVC and 235 ktpa caustic soda capacity

–Equity participation of EUR 52m

–Loan to RusVinyl: EUR 750m, wihich included EUR 150m from EBRD

Multi-party financing (EBRD, Sberbank, and with ECA support: BNP Paribas, HSBC, ING)

EBRD Value-added - Bringing together:–Russian and International companies

–industrial and financial partners

–government and private sector

Signed in 2010

Project Finance International & EuromoneyPetrochemical Deal of the Year, 2011

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Petrovax Pharm Equityto Improve Production Facility in Moscow Region

Company: NPO Petrovax Pharm, a niche Russian pharmaceutical company focused research, development and commercialization of branded products primarily in the field of immunology

EBRD Finance: the Bank acquired a 25% equity interest in Petrovax for EUR 15 M through a subscription to newly issued equity units

Use of Proceeds: construction of an additional production line at the company's facility in Pokrov (Moscow region); research, development and commercialisation of new products; enhancement of the company’s organisation structure and corporate governance standards

Security: Tag/Drag Along Rights; Accelerated Put Option

EBRD added Value: introduction of new products & technology targeted at saving lives & reducing the economic costs associated with diseases; setting standards in corporate governance practices; increased competitionSigned in 2008

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Cora Regional

The EBRD provided financing in 2003 to the leading Belgian retail group Louis Delhaize for the expansion of their Cora hypermarket brand in Hungary and Romania

€30 million in senior debt

Signed in 2003

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Bor Glass Factory (Russia)

EBRD Equity: US$ 15 million (signed on 1 December 1997)

EBRD Loan: US$ 25 million (signed on 4 February 2003)

Acquisition of a 75 per cent controlling interest in the Company by a Asahi/Glaverbel-led consortium, which is to be followed by the completion of a short-term capital investment program in order to improve productivity

Asahi - Bor Glass

Signed in 1997 and 2003

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Belgian Sponsor in Central Europe: KBC Bancassurance Holding

KBC Group and EBRD supported together the privatisation of four banks in four countries:

– Poland: Kredytbank (EBRD exited to KBC)

– Hungary: K&H Bank (EBRD exited to KBC)

– Czech Republic: CSOB (EBRD holds 7.5 per cent, KBC 66 per cent)

– Slovenia: NLB (EBRD holds 5 per cent, KBC holds 34 per cent)

KBC plays a role in the management of NLB, while EBRD, with one seat on the Supervisory Board of NLB, plays a role in the improvement of corporate governance practices

In 2002, KBC bought 34 per cent of Nova Ljubljanska banka for €433 million, while EBRD bought 5 per cent of NLB for €64 million

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How to contact us?

Lindsay Forbes, Director, Industry, Commerce and AgribusinessForbesL@ebrd.com

Bruno Balvanera, Head of Regional DevelopmentBalvaneB@ebrd.com

George Orlov, Director, Financial InstitutionsOrlovG@ebrd.com

Alexander Orlov, Director, Government RelationsOrlovA@ebrd.com

Anna Tokarz,Senior Banker, ICATokarza@ebrd.com

6 Gasheka Street Ducat Place III Second floorMoscow, Russia 125047

Tel: +7 (495) 787 1111 Fax: +7 (495) 787 1122Moscow@ebrd.com

Natasha Khanjenkova, Managing Director for Russia KhanjenN@ebrd.com

12/04/23

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