Supporting internal learning and change through stakeholder engagement June 2008

21/04/23 05:59Investor Presentation

Supporting internal learning and change

through stakeholder engagement

June 2008


GNG at a Glance

Leading domestic fuel retail company in Ukraine and market leading brand

Concern Galnaftogaz owns:

– 261 own stations, including 223 OKKO stations as of May, 30 2008;

– 204 shops that operate on fuel filling stations as of end of April 2008.

According to business plan of the Company, Concern will have 351 filling stations with shops with TOBI brand in the end of 2009.

2 Internal learning and change presentation

GNG’s Growing Network of Filling Stations

in Ukraine as of the beginning of 2008


Internal learning and change presentation3

Concern Galnaftogaz

To get over to our clients, partners, shareholders and society in general our mission, in pursuance of which Galnaftogaz is established and actively operates.

Slogan: Face to the world

The company’s management puts the following meaning in this slogan:

we absorb all the best from different world’s sectors, turn that into advantages for clients and offer it in our products;

we stand with our ‘face turned to the customer’, we are open to the customers and to their needs, we strive to satisfy their needs in the best possible way and offer them services of the highest quality;

we offer complex and innovative solutions to the clients, which make them more successful;

we are open to cooperation, forward-looking in the staff relationship. We build relations with partners and shareholders on the transparency principle.

Vision:

The company is a leader in the effectiveness and quality of the products, offered on the market. OKKOTM is a strong nation-wide brand.



Concern Galnaftogaz ratings

Dun & Bradstreet: 5А2 rating (August 2006)

Concorde Capital: Ukrainian corporate governance - 1st place (February 2007)

Cbonds: Ukrainian issuer with the best information disclosure (April 2007)

Participant of United Nations Global Compact (May 2007)

Management of the company are recognized as leaders in their profession: Yuriy Kuchabsky, leading top manager of oil and gas industry (2nd place in 2007 according to Gvardiya rating of top managers); Nazar Kupybida, the best financial director of Ukraine (1st place in 2007 according to Companion magazine rating) and other.

Credit Rating: uaA+ credit rating (2007)

all-Ukrainian rating program Gvardiya: A+ rating of corporate social responsibility (March 2008)



Project 1. Corporate governance

Project 1. Implementation of corporate governance principles on the basis of cooperation with IFC

The company started to participate in IFC program of implementation of best international practices of corporate governance on December, 23 2003.

Concern Galnaftogaz approved Corporate Governance Code on April 2004.




Stakeholders of corporate governance project

Securities and Stock Market State

Commission

Management and shareholders of the

company

IFC Consulting companies

Customers

Investors

Business in Ukraine

Government

Initiators Beneficiaries




Results of the project

Implementation of corporate structure and Corporate Governance Code.

Well-ordered management structure with better task sharing.

Clearer and more transparent business structure and more efficient cooperation with investors.

The company started to grow with higher rates due to clear and transparent structure.

Company case animated other Ukrainian companies to arrange its corporate governance, but we see that this process requires further promotion in Ukraine.

International business and investors got the message that Ukrainian business develops according to generally accepted principles.

Experience of cooperation with IFC gave ground for future cooperation development with IFC and EBRD.

As a result of preparation to cooperation with IFC, Concern Galnaftogaz: conducted ecological audit of companies activities; developed and approved Strategic Development Plan for 2004-2008, then Strategic Development Plan for 2006-2010; CATRO International Management Consulting conducted personnel audit in order to verify capability of management to accomplish Strategic Development Plan.


Internal corporate university


Project 2. Internal learning and education

Project 2. Internal learning and education through shareholder engagement

From personnel training to high quality business education in Lviv region and Ukraine.

External consulting

Stage 1 Stage 2 Stage 3




Stage 1. Using external consulting companies and consultants

Starting from 2002 – Concern Galnaftogaz hired external trainers from KMBS, Pucelik consulting group, Lviv consulting group, Ernst & Young, CATRO International Management Consulting and other companies for training of employees of the company.

Using external consulting companies and internal trainers, Concern Galnaftogaz conducted the following trainings of its personnel in 2007:

• ‘Basic skills for active sales for managers’ (76 participants) by internal trainers;• ‘Investment valuation of company’ (20 participants) with Universal investment group and

‘Quantitative analysis for effective decision making’ (30 participants) with KMBS;• ‘Effective sales skills of services of laboratories of oil products quality control’ (12

participants) by internal trainers;• ‘Organization of effective and quality BTL events’ (12 participants) with KMBS;• ‘HR Manager role. HR management system.’ and ‘Personnel hiring techniques’ (34

participants) by internal trainers;• ‘Technical control of construction and installation works’; ‘Project management basics’;

‘Mastery of planning and project management skills in company’ (77 participants) by internal trainers.




Stage 2. Using external consulting companies and consultants

In the beginning of 2006 Concern Galnaftogaz opened internal corporate university for education of its employees, including workers of fuel filling stations and laboratories.

(internal corporate university)


company

Employees

Business educators Partners

Employees


company

Society





Stage 3. Opening of Lviv Business School of UCU

February 2008 – Ukrainian companies, Ukrainian Catholic University and a group of business educators merged its efforts to open Lviv Business School of UCU.

Softserve

Trottola

Business educators

Ukrainian Catholic

UniversityGovernment and society

Ukrainian business

Clients

Business educators





Lviv Business School of Ukrainian Catholic University

Mission: Lviv Business School of UCU is an open community of leaders whose goal is to foster the

development of socially responsible businesses and effective and advanced management systems through the combined expertise of its faculty’s experience, skills, competencies and values.

Vision: The long-term vision of the Lviv Business School is to nurture an open and effective

business development environment through business leadership training and education according to international standards and professional criteria and values in the context of socially and responsible business practice.

Values:• respect for diversity• commitment to results and the mans and ways these results are achieved• encouraging personality development• continuous improvement and culture of quality• respect for culture



Stakeholder engagement

Supporting internal learning and change through stakeholder engagement

Stakeholders engagement assures implementation of company strategy and supports its efficient and innovative development, including supporting internal learning and change.


72 Turgeneva str., Lviv, Ukraine, 79015Tel.: +3 8 (032) 298-96-01, 298-96-03, 298-96-07

Fax: +3 8 (032) 298-96-02, 298-96-08www.galnaftogas.com.ua

www.okko.com.ua

Thank you for the attention!

Documents

Supporting internal learning and change through stakeholder engagement June 2008