RTS Board – the Doorway to Profitable Investments in Russia

January 2016

Moscow

Association of financial market participants «Nonprofit Partnership for the Development of Financial Market RTS»

WHY RTS BOARD SYSTEM?

02

RTS Board contains more than 800 issuers that are not represented on the Russian organized market See slide 04

UNIQUE INVESTMENT DIRECTIONS

RTS Board securities cover all spectrum of Russian economy and regions of the country See slides 05-06

WIDE COVERAGE AND DIVERSITY OF INVESTMENTS

Average dividend yield of TOP-10 RTS Board securities achieved 25% per annum in 2014 See slides 07-08

HIGH YIELD INVESTMENTS

RTS Board is the leading information system for electronic quotation and signing of securities purchase agreements (SPA) on securities that are not admitted to trading on the Russian organized market

See slide 03

LEADING OTC SYSTEM

RTS Board issuers have great financial ratios

GREAT FINANCIAL PERFORMANCE OF RTS BOARD ISSUERS

See slides 09-11

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

LEADING OTC SYSTEM

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

03

The operator of RTS Board is NP RTS group, which comprises a number of companies such as: • Saint Petersburg Exchange (operating first Russian Global Equities Market and trading platform with one of the broadest scope

of commodities traded in Russia) • RTS Tender (operating 2nd largest state procurement electronic trading platform in Russia) • Clearing Centre MFB, Best Efforts Bank and other businesses

RTS Board was created in 2001 - over 15 years on Russian Market

More than 100 000 SPAs were concluded through RTS Board system that made it possible to invest directly into the business development of Russian issuers

After being quoted in RTS Board system more than 150 issuers of securities were listed on Russian stock exchanges

RTS Board was the basis of RTS exchange market that later became an integral part of joint stock market organized by the Moscow Exchange

UNIQUE INVESTMENT DIRECTIONS

04

The number of stocks*

RTS Board quoted stocks

Russian exchange traded stocks

The number of issuers*

Russian exchange traded stocks

The total number of shares / issuers as of 26/01/2016 Total number

The number of active stocks/issuers

The number of active shares / issuers as of 26/01/2016 (according to the criterion of active bid/ask orders for more than 4 trade days per week)

271 312

692

1107

847

537

253 218

The best place to look for investment decisions regarding Russian small and mid cap companies

The widest range of ideas for direct and venture investments into Russia

The platform for investments in non-primary / non-resource Russia

RTS Board quoted stocks

Success stories**

Source of information: RTS Board

** Large companies which were listed on Russian organized market after

being quoted on RTS Board

*

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

WIDE COVERAGE AND DIVERSITY OF INVESTMENTS

RTS Board represents companies all over Russia, from the Baltic Sea to the Far East

RTS Board covers a broad range of issuers from any Russian economy’s industry sector, including sectors that are poorly represented in the organized market but highly promising, e.g. Engineering & Construction, Shipbuilding, Aerospace/Defense

05

0 50 100 150 200 250 300 350

Industrial

Consumer, Non-cyclical

Financial

Energy

Basic Materials

Utilities

Consumer, Cyclical

Communications

IT

Russian exchange traded stocks RTS Board quoted stocks

Source of information: RTS Board Source of information: RTS Board

0 50 100 150 200 250 300 350

Moscow, Central Federal District

Volga Federal District

Ural Federal District

Siberian Federal District

Northwestern (St. Petersburg) Federal District

Southern (Black sea) Federal District

Far Eastern Federal District

North Caucasian Federal District

Russian exchange traded stocks RTS Board quoted stocks

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

WIDE COVERAGE AND DIVERSITY OF INVESTMENTS

06

200 stocks

RTS Board active securities industry classification (Top – 10 industries)

Industrial Engineering

101 stocks

Industrial Metals & Mining

101 stocks

Construction & Materials

Financial Services

59 stocks

Food Producers

37 stocks

Forestry, paper Industrial Transportation

Oil & Gas Producers Electricity

17 stocks

37 stocks 36 stocks 32 stocks 21 stocks

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

Chemical industry

HIGH YIELD INVESTMENTS

07

RTS Board issuers demonstrate sustainable dividend payments over the past 3 years which are twice higher than on Russian organized market

RTS Board issuers dividend yield averaged at about 23% for the last 3 years (provided 3 years of sustainable payments)

Twice as more RTS Board issuers than on Russian organized market, paid dividends in 2014

Global OTC Market TOP-10 average dividends paid in 2015

Mezhregionteplosetenergoremont – 31,71% SMPP J.S.C. – 34,36%

2013

2014

2015

SHATURA Furniture Co – 51,92% SMPP J.S.C. – 134,78%

6 RTS Board issuers demonstrated over 30% dividend yield per year in the last 3 years :

Source of information: RTS Board, SKRIN, web-sites of Russian issuers Source of information: RTS Board as of 10/04/2015 according to announced dividends

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

Mihailovsky GOK – 40,11% SPETSGAZREMSTROY – 41,08%

0% 5% 10% 15% 20% 25% 30%

US OTC market

Russian OTC market

German OTC market

Taiwan OTC market

UK OTC market

Japan OTC market

HIGH YIELD INVESTMENTS

08

TOP-10 RTS Board quoted stocks’ dividends paid in 2015

TOP-10 Russian exchange traded stocks’ dividends paid in 2015

Source of information: RTS Board, SKRIN, web-sites of Russian issuers Source of information: RTS Board, SKRIN, web-sites of Russian issuers

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

0% 5% 10% 15% 20% 25% 30% 35% 40%

SMPP J.S.C.

Mezhregionteplosetenergoremont

Mihailovsky GOK

OAO "SPETSGAZREMSTROY" OAO "GAZPROM"

URALASBEST

VOMZ

PAO Elektropribor

Volzhsky Orgsintez

MURMANSK TRAWL FLEET

Orelstroy

AVG = 22,58%

0% 5% 10% 15% 20% 25%

M Video OJSC

Stavropolenergosbyt OAO

Surgutneftegas OAO

MMC Norilsk Nickel OJSC

Permenergosbyt JSC

Permenergosbyt JSC

VSMPO-AVISMA Corp

LSR Group OJSC

Saratovskiy Neftepererabatyvay

Moscow City Telephone PJSC

AVG = 15,71%

RTS BOARD SMALL CAP MODEL COMPANIES

09

Financial statement and Multiples as of

31/12/2014*

Brief description

Assets = 2 129 209 kRUB Revenue = 2 000 019 kRUB Operating profit = 419 051 kRUB Net profit = 307 906 kRUB ROA = 0,2527 ROE = 0,5527 P/E = 4,1858 BVPS = 2,8084

PJSC "Pobedit" Electropribor

PJSC "Volzhsky Abrasive Works"

Source of information: RTS Board

Assets = 2 342 537 kRUB Revenue = 3 262 750 kRUB Operating profit = 474 992 kRUB Net profit = 355 525 kRUB ROA = 0,2125 ROE = 0,2353 P/E = 4,0788 BVPS = 3,8449

Assets = 2 417 606 kRUB Revenue = 2 995 866 kRUB Operating profit = 688 730 kRUB Net profit = 476 439 kRUB ROA = 0,3345 ROE = 0,6731 P/E = 2,6349 BVPS = 12,4386

*1USD = 49,98 RUB as for 07/05/2015, source of information: Bank of Russia

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

Код: pbdt

PJSC "Pobedit" provides production of hard alloys and refractory materials

Ticker: vazz

Volzhsky Abrasive Works - a manufacturer of silicon carbide and abrasive tool on ceramic bond.

Ticker: tzep Elektropribor provides production of instrumentation for aircraft and special equipment.

RTS BOARD MID CAP MODEL COMPANIES

10

Financial statement and Multiples as of

31/12/2014*

Brief description

Assets = 10 062 447 kRUB Revenue = 16 719 039 kRUB Operating profit = 1 511 241 kRUB Net profit = 1 047 524 kRUB ROA = 0,1595 ROE = 0,3531 P/E = 3,7675 BVPS = 0,7875

Kolomensky zavod Vostochny Port Metafrax

Ticker: klmz

Kolomensky Zavod OAO produces main-line passenger diesel locomotives. The Company also develops and produces passenger electric locomotives and freight diesel locomotives.

Ticker: vopt Vostochny Port is located in the Russian Far East and provides mainly coal handling with usage of conveyer equipment. The Company also transports metals, timber, ore, chemical cargoes, cement, and other commodities.

Ticker: mefr OAO Metafrax manufactures products derived from methanol. The Company produces formalin technical, pentaerythritol technical, urotropine, urea formaldehyde resins, urea formaldehyde concentrate and technical pentaerythritol filtrate.

Assets = 24 585 675 kRUB Revenue = 13 439 071 kRUB Operating profit = 5 866 817 kRUB Net profit = 4 712 202 kRUB ROA = 0,267 ROE = 0,3504 P/E = 4,5819 BVPS = 0,0541

Assets = 12 297 987 kRUB Revenue = 5 998 258 kRUB Operating profit = 3 186 345 kRUB Net profit = 2 432 608 kRUB ROA = 0,3317 ROE = 0,5573 P/E = 2,0166 BVPS = 3,2121

Source of information: RTS Board

*1USD = 49,98 RUB as for 07/05/2015, source of information: Bank of Russia

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

RTS BOARD ABOVE MID CAP MODEL COMPANIES

11

Financial statement and Multiples as of

31/12/2014*

Brief description

Assets = 53 183 767 kRUB Revenue = 113 042 979 kRUB Operating profit = 26 078 059 kRUB Net profit = 20 498 320 kRUB ROA = 0,5266 ROE = 1,0849 P/E = 8,9549 BVPS = 6,9476

Udmyrtneft Kalinin machinery plant Rostvertol

Ticker: udmn

Udmurtneft is active in the extraction and refining of raw oil and natural gas, prospecting and mine-workings of oil and gas fields and the production of various industrial, consumer and agricultural products.

Ticker: mzik Kalinin Machinery Plant Yekaterinburg OAO develops and manufactures medium and heavy duty trucks. The Company's products include electric forklift trucks, diesel forklift trucks, electric trolleys, cleaning machines and military equipment.

Ticker: rtvl JSC Rostvertol, or Rostov Helicopter Production Complex, produces the helicopters MI-24, Mi-26T, Mi-28N and Mi-34, and their modifications. The Company operates in southern Russia.

Assets = 107 416 767 kRUB Revenue = 36 938 285 kRUB Operating profit = 8 579 859 kRUB Net profit = 3 044 057 kRUB ROA = 0,0914 ROE = 0,6518 P/E = 3,5794 BVPS = 0,0062

Assets = 55 225 774 kRUB Revenue = 27 823 222 kRUB Operating profit = 6 204 766 kRUB Net profit = 4 819 894 kRUB ROA = 0,1434 ROE = 2,9187 P/E = 1,0767 BVPS = 3,3979

Source of information: RTS Board

*1USD = 49,98 RUB as for 07/05/2015, source of information: Bank of Russia

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

WHY WILL RTS BOARD AWAKE YOUR INTEREST WHEN INVESTING IN RUSSIA TODAY?

12

In December 2014 RTS Board moved to an entirely new IT platform for OTC market, that provides straight-through processing for indicative quotation of financial instruments, electronic confirmation (including electronic signing of SPAs) and OTC transactions reporting to trade repositories and stock exchanges

About 100 participants have access to RTS Board and are ready to on-board today (for more information about participants please see our website rtsboard.com)

Currently RTS Board team is working on cooperation with the biggest international market data vendors. Join hundreds of clients who already do receive RTS Board market data

Further development of RTS Board includes implementation of financial instruments such as local bonds, Eurobonds of Russian companies, loans and derivatives on different underlying assets classes

Code: 0#BRD.RTS Price: $50/month

Market data viewing terminal Price: ~50$/month*

* 2’400 RUB/month

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

Now available historical data, broadcasting of data stream scheduled

for the second half of 2016

WHY ARE INVESTMENTS INTO RUSSIA ATTRACTIVE RIGHT NOW?

13

Import substitution strategy in all major areas of Russian economy (industry, agriculture, IT, pharmaceuticals, etc.)

The largest since the beginning of 1990s program of state defense orders financing (RTS Board is the only market that includes securities of defense sector issuers)

Underestimated market value of Russian companies due to general decrease of Russian stock market

Upcoming listing of securities of Russian companies which are not traded publicly as result of NP RTS team active work with issuers and cooperation with industry associations

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

APPENDIX

PAID RTS BOARD DIVIDENDS

15

TOP-20 dividends paid regularly

RTS Board – the Doorway to Profitable Investments in Russia

January 2016, Moscow

Company Code 2013 2014 2015 AVG

OAO "SPETSGAZREMSTROY" OAO "GAZPROM" SGRSP 7,88% 41,08% 20,24% 23,07%

KEMZ kemzp 4,85% 3,83% 10,68% 6,46%

ROSTVERTOL PLC rtvl 15,76% 14,80% 10,52% 13,69%

Gornozavodskcement gzce 6,87% 12,00% 10,27% 9,71%

Metafrax mefr 13,84% 14,41% 9,74% 12,66%

PJSC "Volzhsky Abrasive Works" vazzp 6,14% 13,75% 8,93% 9,61%

Komigaz kgaz 3,25% 13,26% 8,36% 8,29%

Udmyrtneft udmn 9,08% 12,66% 8,09% 9,94%

Active Marine Fishery Base nbam 15,39% 11,70% 8,05% 11,71%

OJSC "Mostostroy-11" msts 10,07% 20,36% 6,01% 12,15%

Chelindbank chlb 5,32% 7,51% 5,03% 5,96%

OJSC "APZ" apsz 10,75% 7,27% 4,61% 7,55%

OJSC Gazprom gazoraspredelenie Voronezh vogz 1,37% 2,67% 4,57% 2,87%

VOLGA SHIPPING vflt 16,59% 18,58% 4,40% 13,19%

Saratovneftegas snfgp 14,66% 16,69% 4,01% 11,79%

OJSC "Gazprom gazoraspredelenie Nizhny Novgorod" nnog 5,29% 6,58% 3,82% 5,23%

ILYUSHIN Aviation Complex akil 0,89% 0,95% 1,21% 1,02%

Lengazspecstroy legs 7,33% 0,81% 0,92% 3,02%

Metrostroy metpp 1,14% 1,14% 0,89% 1,05%

OJSC Gazprom gazoraspredelenie Bryansk brog 1,15% 0,37% 0,86% 0,80%

THANK YOU FOR YOUR ATTENTION!

Contacts: Address: Moscow, Dolgorukovskaya, 38 bld.1 Tel: +7 (495) 705-90-31 E-mail: otcmarket@rts.ru www.nprts.ru www.rtsboard.com