Information disclosure: further initiatives

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

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 approved in 2001 7 Committees, IR Club, Working groups Reorganized in 2008, ex-AFBID

Financial Communications and Investor Relations Association

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

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

«between Scylla and Charybdis»

IR market in the Russian Federation is «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».

best practice

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

compensations

RUR 1.6M annually ex. bonuses in averageTop managers annually ex. bonuses

RUR2.5-3.5M, up to USD500KIR specialist RUR1-2M

* Source: ARFI, 2007-2008

trends in IR services market

Balanced Development of IR

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

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

Проф.участники

Investors

Issue (or its agent)

Registrars/ Depositories

Stock exchanges

News agencies/Self-regulated

organizations

IR services

Disclosure system in Russia

Corporate Information Center

Intermediaries

Investors

Issuer

New paradigms

Подход «Single window approach»

News releases vs Press releases

«No news is NOT a good news»

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 issues of 29 issuers as of June 2008 end)

disclosure committee

Its responsibilityControl over disclosure policyMateriality of information

Not necessary 3 to 5 members At the BoD or Executive Board? First dozen of pioneering issuers

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.: +7.495.250-89-13Faximile: +7.495.251-44-47