Cash Management Services in November 2012

Since 2007, Danske Bank has been : RUB represented in Russia by Danske Bank Russia St. Petersburg region CET +2 (legal name: ZAO Danske Bank), a subsidiary Time zone: physically located in St. Petersburg and Outside St. Petersburg – 11 Moscow, providing services everywhere in time zones in the range from Russia. CET +1 (Kaliningrad) to CET + 12 (Kamchatka) Danske Bank Russia offers a targeted range of products and services to corporate customers, : Central Bank of Russia based on our deep insight into the local business environment in Russia. The services SWIFT BIC DABARU2P include cash management, treasury and financing.

Danske Bank Group provides seamless and

efficient Cash Management services from

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Ireland in the West to Russia in the East;

- - - - covering all countries and mainly based on one central IT platform to deliver integrated services for corporate customers.

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Page 1 of 5 - Russia Danske Bank, Holmens Kanal 2-12, 1092 København K Phone +45 33 44 00 00

General information on cash management in Russia

Clearing and local market conditions

Company status Clearings systems Payment instruments In Russia, companies are either resident or The clearing system of the Central Bank of Credit transfers (by payment order) are non-resident. A company is considered Russia (CBR) is the main system used by banks the most popular means of commercial resident if it is established under Russian law. for their RUB settlements. It is also possible to payments, execute payments directly between two banks. Both debit and credit cards are used for A non-resident company is a foreign legal The CBR system is Russia’s decentralised corporate T&E purchases and consumer entity, which has an account opened in a gross settlement system composed of over 70 purchases, Russian bank or representative offices set up regional clearing subsystems all with regionally Customs Cards, inside Russia. operating settlement centres. Direct Debits, Cheques are rarely used and there is no Account opening is a bit more complicated for Among other types of settlement systems are: inter-bank cheque clearing system, a non-resident company, as all documents various credit institutions’ proprietary Cash is still common. should be translated, notarized and should systems, interbank payment systems and have an apostil. certain non-bank credit institutions’ clearing Local and foreign currency payments systems. In general all payment instructions need to be Foreign exchange regulations accurate – there are specific requirements and All restrictions on cross-border RUB In 2007 the Central Bank of Russia launched a Russian banks do not usually correct mistakes.

transactions have been relieved and RUB is a real-time gross settlement system, called

freely convertible currency. However, all BESP, to streamline the clearing of high value Local payments cross-border transactions require proper payments in Russia. The BESP main target is Can only be executed in RUB and in

documentation with a number of requirements to better facilitate liquidity management and accordance with the formats set-forth by the

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- - - - applicable to e.g. payment order instructions offer more efficient payments mechanism. Central Bank of Russia. (VO codes, etc.). Opening hours

Banks are usually open from 9 am to 6 pm

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local time.

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Page 2 of 5 - Russia Danske Bank, Holmens Kanal 2-12, 1092 København K Phone +45 33 44 00 00

Foreign payments Cross-border payments related to export, A non-resident company has to be registered import or financing transactions between with local tax authorities to open a bank resident and non-resident legal entities, go account in Russia. through specific currency control procedures at the resident bank. Payments exceeding USD Companies are required to prepay part of the 5,000 require a transaction passport issued annual corporate profit tax during the prior to processing of outgoing or release of assessment period, based on advanced incoming cross-border payments. payments that are made within 28 days of the current month and are calculated according to All cross-border payments in RUB require a VO the 1/3 of the tax paid for the previous quarter. Code as defined by the Central Bank of Russia Otherwise they pay monthly, based on the and used to describe the payment purpose. actual profit. In this case, advance payments are made within 28 days of the following Taxation month. Any underpaid tax is charged a penalty Residents and permanent established and overpaid tax is compensated. branches of foreign established companies are subject to tax on their income from Russia and VAT is levied on the supply of goods and

outside Russia, the tax rate is 20%. services at a general rate of 18% Rates of 0%

Non-resident companies have limited liability and 10% (2011) are also applied for certain for tax on Russian income only and a tax rate of types of operations.

20% is applied for major types of income and

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- - - - 15% for dividend payments. For details, please consult a local tax advisor or auditor.

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Page 3 of 5 - Russia Danske Bank, Holmens Kanal 2-12, 1092 København K Phone +45 33 44 00 00

Cash Management Products and services of Danske Bank Russia

Danske Bank will assist you in setting up in banking system or in paper form at the Additional services provided Russia. To make your entry smooth, take your premises of the bank. Bank Guarantees and letters of credit first step in co-operation with our wholly owned Customs guarantees Russian subsidiary Danske Bank Russia. All payments are executed daily with value Customs cards of both local payment same day within the St. Petersburg region. systems Accounts Payments to other regions are sent with value Treasury products (e.g. currency Resident accounts in all main same day but may take another day to hit the conversions) including RUB. recipient account with a third bank. Cash services Pay-roll solution Non-resident accounts in all main currencies Foreign payments including RUB with certain extra documents Foreign payments are executed in RUB or Electronic banking needed from the client. other currencies through the SWIFT system. Bank Client and Web Bank are Danske Bank Payment orders can be presented to the bank Russia’s electronic banking systems in All documents delivered by Danske Bank either in electronic form using the Bank’s Russian and English languages offered to Russia for account opening are also in English. electronic banking system or in paper form at clients inside Russia. It can be linked to several All documents submitted by the company have the premises of the bank. Danske Bank Russia ERP systems used in Russia. The system to be translated to Russian. acts as a currency control agent when provides access to viewing accounts, setting

processing both incoming and outgoing up payments and delivery of documents for

Deposits payments. currency control. Term deposits available with competitive Term deposits can also be set up from Bank

interest rates in all maturities and in all main Liquidity management Client/Web Bank.

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- - - - currencies including RUB. Within Danske Bank Group including Danske Bank Russia, your company can make group For further information on Bank Client and Payments payments with value the same day and free of Web Bank systems please see

Domestic payments charge. Other liquidity management solutions www.danskebank.ru.

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Domestic payments are executed through the (e.g. cash-pooling) are available locally subject CVR Central Bank (CBR) system. Payment orders to Russian regulations. can be presented to the bank either in electronic form using the Bank’s electronic

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Page 4 of 5 - Russia Danske Bank, Holmens Kanal 2-12, 1092 København K Phone +45 33 44 00 00

Reporting to the parent company The parent company can receive account statements (MT940 or MT942) via Business Online, the Danske Bank’s online banking system. Using Business Online, the parent company can also transfer funds from the account of the subsidiary (MT101) in Russia.

Reporting to other banks Reporting via MT940 statements is available upon request.

Further information If you require more information about Cash Management in Russia, please visit our website www.danskebank.ru or

www.danskebank.com/corporate.

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Page 5 of 5 - Russia Danske Bank, Holmens Kanal 2-12, 1092 København K Phone +45 33 44 00 00