GROUP OF COMPANIES REGION
Moscow October 2019 STABLE MULTI-PURPOSE GROUP
KEY FIGURES GROUP STRUCTURE Asset Management * II quarter of 2019
Total assets under management, bln rub/ bln €** WHPA Limited 695/ 9.7 Ultimate beneficiary Andrey ZHUYKOV SUDARIKOV S. (100%) Equity, mln rub/ mln € 3 813/ 53 Pension savings of non-state funds under management, bln rub/ bln € 490/ 7 Pension reserves of non-state funds under management, bln rub/ bln € 112/ 1.6 90% 10% Number of agreements with Non-state Pension Funds on trust management of 36 pension assets REGION Investment Company JSC Number of agreements with Non-state Pension Funds on trust management of 56 pension savings
Pension savings of Pension Fund of the Russian Federation under management, mln 100% 100% 99.99999% rub/ mln € 1 713/ 24 LLC National Mortgage LLC ARPI JSC RUSNARBANK Corporate assets under trust management, mln rub/ mln € 3 647/ 51 Factory
PPP projects Specialised operator of the Banking services Sales transactions (2018)*** Russian mortgage market Excluding repo transactions 99.99999% Total trading volume, bln rub/ bln €** 962/ 13 LLC REGION Financial services Trading volume for bonds . 100% UGORIA Insurance and federal loan bonds, bln rub/ bln € 484/ 7 Company Insurance services Equities trading volume, bln rub/ bln € 478/ 6.7
100% 100% 100% 100% 100% Client transactions, bln rub/ bln € 38 995/ 543 REGION REGION Brokerage Depository REGION LLC REGION LLC REGION Company LLC Company JSC Leasing JSC Finance Investment Investment banking (2014-2018 ) Securities Specialized Bondholder Number of issues 212 Services Depositary Leasing Services Representative Online brokerage Amount, bln rub/ bln € 613/ 9 16.7% 100% 100% Consolidated financial performance 2018 2017 2016 REGION REGION Asset REGION REGION Trust 99.985955% Development Management Investments Operating income, mln rub/ mln €**** 18 037/ 227 10 100/ 147 11 700/ 170 LLC LLC JSC AM JSC Net profit, mln rub/ mln € 6 285/ 79 2 200/ 32 4 200/ 61 A s s e t A s s e t M a n a g e m e n t M a n a g e m e n t
Net margin, % 35 22 36 *-Consolidated data for REGION Group, which, for the ranking purposes, includes REGION Asset Management, Asset management company Portfolio investments LLC, REGION Trust , REGION Development, REGION Investments AM JSC. Expert RA Assets, bln rub/ bln € 859/12 844/12 528/8 ** - In local currency at the exchange rate of the Central Bank of Russia as at the end of Q2 2019 *** - Based on Moscow Exchange ratings Shareholders' equity, mln rub/ mln € 22 193/279 16 000/233 14 300/208 **** - In local currency at the exchange rate of the Central Bank of Russia as at the end of Q4 2018 ***** - Based on Cbonds league tables for arrangers and underwriters of Russian bonds 1995
REGION Investment Company was established
REGION’s Board of Directors 2001 decided to develop asset
Transfer Transfer Agents andDepositories Registrars, PARTAD ААА ru UGORIA Insurance Company ru REGION Leasing credit) ruАA, stable,outlook rating reliability (long REGION Depository Company services) А REGION Development services) reliabilityandof quality А++ REGION Asset Management management business
(secure andhigh А, ВВ
(the highest level of of reliabilitylevelhighest (the - outlook stable (exceptionally high level of of level (exceptionallyhigh , outlook Regional association NAUFOR RА 2002 stands Professionalfor Association of assigned an AA rating to RATINGS REGION IC (extra-high
reliability) stable
- , quality asset qualitymanagement
financial reliabilityrating financial Pension Fund of the Russian 200 ,
credit rating Federation and REGION Asset Management signed an agreement on the management 3
,
of pension assets REGION REGION Trust
REGION Group of Asset 200
(
PARTAD Management Companies formed the first Close Share 4
Investment real estate Fund
- term ) )
REGION became one of the top 200 three biggest companies in Russia in terms of transactions in the bonds market 5
REGION Depository Company
became the first among 200 specialized depositaries to gain right of control over coverage 6
for mortgage securities issue
REGION became one of the
TOP-5 of investment companies 200 of the Russian financial market
according to Publishing House 7
category Development Dynamic in(RAEX the RAEX Analytics)in2018 a diplomareceived Leasing REGION Leasinginthe Market Deal Best M&A inincategory award (RAEX RAEX Analytics)the Winner 2018 of open « top a named was Asset Management REGION (1 AutonomousNenets Area) Sub BO Neft’s Gazpromof (offering 2016 of Best Deal Market: Debt REGION pensionsavings mandatory for firmmanagement Best asset 2017 of Market Property inthe InvestorBest Institutional 2018 Best Broker of in categories InvestfundsAwardsthe Winner of The Best Best Best Best Awarded investors Winner Company Best Winner Kommersant Best Investment Strategy of 2016 ofStrategy Best Investment
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REGION Asset Management is 201
– the Winner of the NAUFOR’s 02 series(1 bonds) 02 : Stock Market Elite Award and 6
Investfunds Awards for its
company achievements during 2015
REGION BC arranged the first 201 offering of a foreign corporate
for issuer on the Russian debt 7
category
institutional
st market (KTZ Finance, issue 01)
place) 20
-
REGION Group purchased 18
100% shares of the UGORIA
Insurance Company
BOARD OF DIRECTORS
Sergey Menzhinskiy, Chairman of the Board of Directors Joined the Group in 2011. Work experience since 1995 Worked in various credit organizations including Promradtekhbank and Russian Agricultural Bank, held the position of the Chairman of the Board of the National Standard Bank. Graduated from the Mechanics and Mathematics Faculty of the Lomonosov Moscow State University and Russian Presidential Academy of National Economy and Public Administration. MBA from Moscow Sergey Sudarikov, Partner, Member of the Board of Directors International Higher Business School MIRBIS. Joined the Group in1995. Work experience since 1994. Before joining the REGION Group worked in the Elcom-bank. Graduated from the Mechanics and Mathematics Faculty of the Lomonosov Moscow State University and All-Russian Distance-Learning Institute of Finance and Andrey Zhuykov, Partner, Member of the Board of Directors Economics. Member of CBR's Expert Council for Long-term Investments, Member of the Board of Directors at the National Association of Securities Market Participants (NAUFOR), Chairman of Committee of the National Association of Pension funds (NAPF) on investment operations of the Non-state Pension Funds. Joined the Group in 1997. Work experience since 1997. Graduated from Zhukovsky Air Force Engineering Academy and All-Russian Distance-Learning Institute of Finance and Economics. Andrey Nadin, Member of the Board of Directors Joined the Group in 2013. Prior to that, worked at BDO Unicon Consulting and ANT-Inform. Also led a project to optimise the sales structure at TBinform (TNK-BP). Graduated from the Moscow State Institute of Electronics and Mathematics (Technical University) majoring in Mathematical Methods in Economics. Dzhannat Tukhtaeva, Member of the Board of Directors Joined the Group in 2012. Started her professional career in 2000. Prior to joining REGION Group, worked at FINAM, BCS. Graduated from the Novosibirsk State University with a major in Mathematical Methods in Economics. EXPERIENCED TEAM OF MANAGERS
Anna Zaytseva, Specialized depositary services Alexei Kuznetsov, Managing Director Ekaterina Zaytseva, Financial Asset Management Joined the Group in 2000. Work experience since Trade operations, DCM Securities market professional since 1997. 1997. Member of committee on fixed-income securities of Before joining the REGION Group worked in various Before joining the REGION Group worked in CJSC MICEX Stock Exchange. Joined the Group in investment companies and credit institutions, Depositary and Clearing Company. Graduated from 1997. Work experience since 1992. Graduated including Metallinvestbank. Graduated from Moscow Moscow Institute of Physical Engineers, specialized in from Faculty of Tool Engineering of Bauman University of Consumer Cooperation, Master of Applied Mathematics. MBA from «Integral» MBA Moscow State Technical University. Science in Finance and Credit, SKOLKOVO Business Higher School (Plekhanov Russian Academy of School (Executive MBA). Economics).
Rustem Mukhamedov, Leasing Petr Kostikov, acting Head of REPO Tatiana Fedyashina, COO Joined the Group in 2013. Started his professional Joined the Group in 2002. Graduated from Joined the Group in 2002. Started her professional career in 1999. Zhukovsky Air Force Engineering Academy in 1996, career in 2000. Graduated from the Saratov Socio- Held positions at various leasing companies, including and Interdisciplinary Institute for Advanced Studies Economic Institute majoring in Finance and Credit. Renaissance-Leasing, Gaztechleasing. Graduated at Plekhanov Russian Economic Academy with a from the Moscow Power Engineering Institute and degree in Finance and Banking. Before 2002, he did Financial University under the Government of the military service. Russian Federation
Alexey Okhlopkov, CEO of UGORIA Insurance Company Valeria Repkova, Head of Public-Private Started his professional career in 1994. Holds a Dmitry Tonkogubov, Head of Retail Brokerage Partnership Services degree from the Financial University under the Graduated from the Novosibirsk State University Government of the Russian Federation and a Joined the Group in 2016. Graduated from the with a major in Law, and the Moscow School of Moscow State University, Department of Mechanics certificate in financial markets from the London Social and Economic Sciences. Started her School of Economics and Political Science. Also has and Mathematics, in 2000. Received an MBA degree professional career in 2001. from the Russian Presidential Academy of National an MBA from London Business School (London) and Prior to joining REGION Group, worked at various Columbia Business School (New York). He is a Economy and Public Administration under the investment and consulting companies, including in President of the Russian Federation in 2011. qualified financial market professional (certificates the areas of supporting and managing public-private series 5.0 and 8.0). Worked at Moscovia bank, Prior to joining REGION Group, held the COO position partnership projects (since 2008). at IFC Metropol (over 14 years in the company). Gazprombank, Severstal, and headed Khanty- Mansiysk Non-State Pension Fund.
Olga Konysheva, Real Estate Asset Management Joined the Group in 2006. Started her professional career in 2000. Graduated from Kutafin Moscow State Law University with a degree in Law. MBA in Real Estate Management from the Russian Presidential Academy of National Economy and Public Administration under the President of the Russian Federation (received in 2009).
LINES OF BUSINESS
Asset Management for private investors
Real Estate Asset Management
Specialized Depositary Asset Management for institutional and corporate clients
Investment banking REGION REGION Asset Bondholder Representative Depository Management Company Group
REGION REGION Finance Investment Company Banking services for individuals and legal entities
Insurance services UGORIA Insurance RUSNARBANK Company Trade operations
REGION Сapital market services REGION Brokerage Leasing Company Universal leasing company Brokerage services
National REGION REPO Mortgage Investment Factory ARPI Analytics Specialised operator of the Russian mortgage market
Online brokerage
Public-Private Partnership projects ASSET MANAGEMENT FOR INSTITUTIONAL AND CORPORATE CLIENTS
OUR SERVICES: Ekaterina Zaytseva Financial Asset Management . Trust management of pension assets and pension savings . Trust management of insurance assets . Trust management of assets for corporate clients . Trust management of assets for state funds REGION Group of Asset Management Companies is one of the acknowledged leaders . Management of securities investment portfolios with guaranteed in the Russian market of asset management. The Group focuses on asset management return for institutional clients. It includes: MARKET POSITIONS, II quarter of 2019
REGION Asset Management – asset management for non-state pension funds Value, REGION Trust – individual trust asset management Position Rating mln rub/ mln REGION Investments - provides trust management services for private customers and €*** management of mutual investment funds Pension savings of non-state funds under 2 489 543/ 6 818 management Winner of NAUFOR’s Stock Market Elite 2018 Award in category «Best managing company for institutional investors » 3 Total assets under management 695 200/ 9 682
REGION Asset Management was named a top-three award winner Pension reserves of non-state funds under of Investor Awards 2017 in category «Best Investment Strategy of 3 111 877/ 1 558 2016» (PFR pension savings management and REGION Bond management Fund’s bond open-end fund management) Pension savings of Pension Fund of Russian 7 1 713/ 24 Winner of the Finance Elite of Russia Award in category «Grand Federation under management Prix: Asset Management company of the year» (2015-2017), in category «Best Pension Savings Management» (2018) Source: Expert RA Rating Agency
Based on the results of the past three years, the pension savings OUR CLIENTS portfolio managed by REGION Asset Management came in first, according to a ranking published by the Pension Fund of Russia as at the end of Q2 2019*
Best asset management firm for mandatory pension savings by Investfunds Awards 2015
REGION Asset Management, REGION Trust
А++ (exceptionally high level of *- according to Pension Fund of Russia reliability and quality of services) **- Assets of REGION Group, which, for the ranking purposes, includes REGION Asset Management, Asset management company Portfolio investments LLC, REGION Trust, REGION Development, REGION Investments AM JSC ***-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q2 2019 ASSET MANAGEMENT FOR PRIVATE INVESTORS
REGION Asset Management Group offers a wide range of financial products, bringing all opportunities of the stock market for clients to invest in.
• Individual trust management • Mutual investment funds (mutual funds) An attractive tool for private investors with available capital starting The opportunity to invest a small amount of money from RUB 10 mln. We provide convenient access to a wide range of (starting from RUB 10,000/ € 141*) while using the financial investment products and employ a personalized approach. services of a professional manager. By acquiring shares of various mutual funds, investors can diversify • Individual investment accounts (IIA) investments and thus mitigate possible risks. A form of investment account opened by brokers and trust managers Selected mutual funds on offer** and intended for securities transactions. Additional opportunity for
investors who have been using their IIA for at least three years to REGION Investments manages: qualify for a tax refund. • REGION Equity Fund, open-end fund of quoted financial Opening an individual investment account (IIA) is available, among other instruments things, online on REGION Asset Management's website at iis.region- • REGION Bond Fund, open-end fund of quoted financial am.ru instruments • America, open-end fund of quoted financial instruments No 4 by number of opened individual investment accounts**** • ZOLOTOY ETALON, open-end fund of quoted financial instruments REGION Bond Fund open-end fund of quoted financial • REGION Eurobonds, open-end fund of quoted financial instruments managed by REGION Investments came in instruments first in the Investfunds ranking of the highest yield open- • Balanced, open-end fund of quoted financial instruments end bond funds covering the period from 30 September 2016 to 30 September 2019 REGION Asset Management manages:
• DAKO, open-end fund of quoted financial instruments REGION Bond Fund open-end fund of quoted financial REGION Asset Management was named a top- instruments managed by REGION Investments is among three award winner of Investor Awards 2017 the Top 3 highest yield open-end bond funds according to in category «Best Investment Strategy of the Investfunds ranking covering the period from 28 2016» (PFR pension savings management and September 2018 to 30 September 2019 REGION Bond Fund’s bond open-end fund management***) * In local currency at the exchange rate of the Central Bank of Russia as at the end of Q3 2019 ** Data as at 30 September 2019 *** On 22 September 2017, REGION Bond Fund open-end bond fund was renamed as REGION Bond Fund open-end fund of quoted financial instruments. **** Moscow Exchange, 1st October 2019
REAL ESTATE ASSET MANAGEMENT
Winner of the Investfunds Awards in category: Best Institutional Investor in the Property Market of 2017
REGION Development А (secure and high-quality asset management services) Olga Konysheva Real Estate Asset Management From 2004 to 2018, REGION Asset Management Group’s closed-end mutual fund managed: • over 200,000 sq m of residential housing (registered title and sales at the construction stage) REGION Development focuses on running real estate investment • around 100,000 sq m of commercial real estate (registered title) projects via closed-end mutual funds • over 16,000 ha of agricultural land (registered title)
REAL ESTATE ASSET MANAGEMENT SERVICES: Geography of investment projects (2004–2018) Khanty-Mansi Autonomous Area – Yugra Omsk Region • Management of real estate through closed-end mutual 174,000 sq m of residential housing funds 16,800 sq m of commercial real estate Yamal-Nenets 900 sq m 8 cities and towns (Surgut, Khanty-Mansiysk, Nizhnevartovsk, Autonomous Area of commercial real estate Nefteyugansk, Uray, Yugorsk, Langepas, Pyt-Yakh) • Real estate (property) management 1,700 sq m Yaroslavna shopping center of commercial real estate • Asset and transaction structuring. Consulting services. Siberia shopping center State registration services Moscow 600 sq m of residential housing • Review of investment opportunities in the residential and 100,000 sq m of commercial real estate commercial real estate market Mercedes-Benz Plaza business center
Assets under management by REGION Asset Moscow Region Management Group as at the end of Q2 2019 2,000 sq m of residential housing exceeded RUB 85 bln/ € 1.2 bln*
Source: Expert RA Rating Agency Voronezh Region 9,000 sq m of residential housing OUR CLIENTS:
Stavropol Territory 6,000 sq m of residential housing
Irkutsk Region Saratov Region Tyumen Region 600 sq m of residential housing Penza Region 1,300 sq m Novosibirsk Region 5,600 sq m of commercial real estate 16,000 ha of agricultural land of commercial real estate 9,200 sq m Edelweiss mini-hotel of residential housing Olimpiada store
*-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q2 2019 CAPITAL MARKET SERVICES
Winner of Cbonds Awards 2018 in categories : Alexei Kuznetsov Best Investment Bank for Non-Financial Institutions (2nd Head of DCM place)
Best Investment Bank for Second and Third Tier Borrowers (3rd place)
REGION Group is a leading arranger of sub-federal, municipal, corporate and bank Best Investment Bank for Financial Institutions (3rd place) bonds in Russia that offers a full scope of capital raising services through the issuance of various bond types: classic, exchange-traded, commercial, and Best Primary Corporate Bond Deal (arranger on Rosneft's subordinated bonds and also using the securitization and public-private partnership 002P-05 issue) schemes. No 1 by the volume of arranged offerings for publicly traded bonds (excluding self- Winner of the Investor Awards 2017 in two categories : placements) among Russia’s bond issue arrangers * No 4 by the total value of arranged bond offerings among Russia’s bond issue arrangers* Debt Market: Best Deal of 2016 (offering of Gazprom Neft’s BO–07 and BO–02 series bonds) (1st place) No 3 by the total value of arranged bond offerings among Russia's bond issue underwriters** Sub-Federal and Municipal Bonds: Best Deal of 2016 (offering of the 35002 series bonds for the Yamalo-Nenets Three-fold increase in the total IPO value compared with 2017** Autonomous Area) (1st place)
Analysis of clients’ needs and potential opportunities Winner of the Finance Elite of Russia Award 2014-2018 in category: Company of the year in the bond market
Selection of the optimal form of borrowing
In June 2017, REGION BC arranged the issue of KTZ Finance's series 01 bonds setting a CIS precedent of dual listing on two stock Transaction structuring exchanges – the MOEX and KASE.
The KTZ Finance offering also provided an opportunity to use a new Coordination of transactions on-exchange book building service now available in Russia.
Bond marketing and sales All projects involve a team of highly qualified professionals in arranging capital market transactions, sales, bond trading and Support of secondary market trading analytical coverage. With an extensive experience in capital market transaction execution and support, our experts have a track record Organization of order execution services both with REGION Group and other major financial holding companies and state institutions.
Consulting support for bond issues *- Based on Cbonds in the nine months of 2019 **- Based on Cbonds as at the end of 2018
CAPITAL MARKET SERVICES: sub-federal and municipal sector
Nizhny Novgorod Region 2018, 2017, 2016, 2015, Yamalo-Nenetsky AO Volgograd Leningrad Region 2013 2016 2015, 2014 2014 1 RUB 54 000 000 000 8 RUB 20 000 000 000 10 RUB 2 000 000 000 11 RUB 7 900 000 000 784 mln €*** 320 mln €* 32 mln € 125 mln € Issue 35013, 34012, 31011, Issue 35002 Issue 34008, 34007 Issue 35001 34010, 34009 Republic of Sakha Tomsk, 2016 Orenburg Region, 2014 (Yakutia) RUB 1 000 000 000 RUB 6 000 000 000 2019, 2018, 2017, 2016, 2015, 16 mln € 95 mln € 2 2014, 2013 9 12 Issue 34006 Issue 35002 RUB 39 500 000 000 496 mln € Issue 35012,35010, 35009, 35008, 35007, 35006, 35005 Belgorod Region 2019, 2017, 2016, 2015 11 3 RUB 14 750 000 000 185 mln € 15 Issue 34012, 35011, 34010, 4 34009 14 6 2 5 Komi republic, 2017 3 1 8 RUB 10 000 000 000 17 4 145 mln € Issue 35014 13 10 12 9 Magadad Region, 2017 RUB 1 000 000 000 7 5 15 mln € Issue 35001 16
Kursk Region, 2017 RUB 1 300 000 000 Volzhsky, 2014 Tver Region, 2013 6 19 mln € 13 RUB 1 000 000 000 15 RUB 3 000 000 000 Issue 35001 16 mln € 48 mln € Issue 34001 Issue 34009 Novosibirsk
2017, 2016, 2015 Republic of Khakassia Udmurtian Republic Kostroma Region, 2013 RUB 10 000 000 000 2013 2013 RUB 4 000 000 000 7 145 mln € 14 16 RUB 3 000 000 000 17 RUB 2 000 000 000 63 mln € Issue 35009, 35008, 35007 48 mln € 32 mln € Issue 34007 Issue 35003 Issue 35001 * - In local currency at the exchange rate of the Central Bank of Russia as at the end of Q4 2016 **-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q4 2017 *** - In local currency at the exchange rate of the Central Bank of Russia as at the end of Q4 2018
CAPITAL MARKET SERVICES: сorporate and banking sector
200+ offerings worth over RUB 700 bln from 1 January 2014 to 30 June 2019
KTZ Finance
*-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q2 2019 TRADE OPERATIONS
OUR SERVICES Awarded of Cbonds Awards 2017 in categories : For professional participants:
• Buying/selling federal loan bonds (OFZ), corporate bonds, equities • Participation in IPOs The best dealer company in the bond market (1st • Cash flow structuring place) • Financing, REPO transactions • Analytical research The best trading in the bond market (3rd place) • Market making For industrial companies: • Bond portfolios as an alternative to bank deposits • Use of bonds to generate cash flows Leading market operators, September 2019 • Investments in Russian and foreign equities • Financing against securities collateral Value, • Placement of available cash on the MICEX at the REPO Position Ranking mln rub/ rate mln €* • Analytical research Bonds trading turnover in basic trading mode, in negotiated deals mode and 2 47 659/ 674 in negotiated deals mode & address For retail investors: orders with CCP
• Investments in Russian and foreign equities Source: Moscow Exchange website • Bond portfolios as an alternative to bank deposits • Federal loan bonds (OFZ) *-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q3 2019 • Analytical research BROKERAGE SERVICES
REGION Broker Company provides an entire range of services to its clients for executing transactions in the Russian and international financial markets.
No. 1 among the leading operators of the Moscow Exchange
by the volume of client transactions in 3Q 2019 • Equities • Bonds No. 2 in the ranking of the leading operators on the Moscow Stock market Exchange’s USD/RUB market in September 2019 • Eurobonds • REPO
Winner of the Investfunds Awards in category Best Broker of 2018
Russian and foreign securities
Derivatives • Futures Single broker account for all asset types market • Options
Individual investment accounts (IIA)
Trading advice
• Currency pairs FX market • Swaps Trading terminal Quick • Forwards Withdrawal of cash on margin against liquid securities INVESTMENT BANKING. FINANCIAL CONSULTING AND CORPORATE FINANCE
REGION Group has considerable experience in negotiating and closing M&A deals, fund-raising for investment transactions, financial engineering, M&A transactions support corporate and financial consulting. Our specialists can carry out a comprehensive study of client’s opportunities and supply capacities in the market, as well as develop and implement an optimal solution for the client. LBO / MBO – consulting and closing transactions
Sale of non-core assets
FUNCTIONS OF REGION GROUP WHILE PROVIDING SERVICES Sourcing bank funding
● Support of M&A, LBO / MBO transactions means consulting, legal ADVANTAGES FOR THE CLIENTS OF REGION GROUP support, provision of financing ● Sale of non-core assets means identification of none-core lines of business, preparation for sale (financial statements, business function, ● The team with extensive experience in banking operations and operating function), search for interested purchasers, conclusion of financial consulting transactions. ● Wide range of partners – banks and institutional investors ● Sourcing bank funding means assistance in resolution of challenging
issues related to bank loan funding, selection of the optimal form of the ● Available and reliable investment operations mechanisms within banking products, consulting, performing negotiations with the banks, the assets structure restrictions supporting a borrower during the servicing of the extended loans.
● Adaptation and provision of own infrastructure for completion and support of credit transactions ONLINE BROKERAGE
Dmitry Tonkogubov Head of Online Brokerage
REGION Investments provides remote retail brokerage services. The Company has developed Evolution, a high-tech trading platform, to provide a wide range of Russian investors with a straightforward and user-friendly solution for security investments with no need to visit the broker’s office.
Client services . Online opening of accounts and electronic document management . Client’s personal account . Mobile apps for iPhone and Android . Simple adding funds to an account, with bank cards as one of the options . Individual investment account (IIA) . Robo adviser . REPO investments . 24/7 trading . SMS alerts and trading signals . Security and two-factor authentication . Help desk and information and analysis support REPO
Petr Kostikov Acting Head of REPO
REGION BC provides financing and loans against securities, direct and reverse REPO transactions, including REPO with the central counterparty and with GCC.
REGION BC is a member of the ICMA (International Capital Market Association), the Moscow Exchange Securities Lending and REPO Committee, and the Russian REPO Council of the National Securities Market Association
REGION BC receives Moscow Exchange award in the Long-term REPO Leader category (2019)
In December 2018, REGION BC and Sberbank closed the world’s first tripartite blockchain-based REPO deal using the National Settlement Depository’s infrastructure
Leading Repo Market Operators (Average daily open interest) September 2019
Trading volume, bln Position Corporate name rub/ bln €*
1 Sberbank 939/ 13
2 Group REGION 847/ 12 3 Bank GPB (JSC) 408/ 6
Source: Moscow Exchange
*-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q3 2019 ANALYTICS
Valery Vaisberg made it to the top three in the Best Macroeconomics Valery Vaisberg Alexander Ermak Research category (Cbonds Awards Head of Research Chief Debt Market Analyst 2017) Cbonds Review (2017) named Alexander Ermak the most widely cited analyst Alexander Ermak was recognized one of the Best Fixed Income Analysts (Cbonds Awards 2016) Research department of REGION Group has many years of experience and expertise and helps to make the investment process more comfortable. The team of experts is committed In-house analytical reports to assisting its clients in better understanding the debt market to make investments more profitable. • Immediate comments on developments in the Russian financial market
Analysts of REGION Group are regular speakers at conferences • Analysis of upcoming IPOs with recommendations of Cbonds Agency, Banks of Russia – 21st Century forum, etc. for investors
Our experts provide comments to Russia's leading business media, publish opinion articles in Forbes and Cbonds Review, • Monitoring of budgets of Russia’s regions and often appear on the RBC TV channel.
• Macroeconomic projections and research SPECIALIZED DEPOSITARY
REGION Depositary Company ruАA, stable outlook, reliability rating (long-term credit strength)
Anna Zaitseva REGION Depositary Company ААА (the highest level of reliability (Professional Head of Specialized Depositary Services Association of Registrars, Transfer Agents and Depositaries (PARTAD)) Specialized depositary services for insurance companies and SROs
Maintaining a register of mortgage pool REGION Depositary Company provides a full range of specialized depositary services. Deals with all types of financial instruments including bills, deposit certificates, Keeping record and control over assets of unit investment bonds, shares, units, mortgage bonds and other mortgage documents. trust Has an extensive professional experience as a custodian for various types of mortgage and lease financing. Audit of pledge/mortgage/leasing dossiers Maintains a register of mortgage pool for Russian mortgage securities. Depositary Company is well known by IFC and EBRD, and has been acting as a custodian in Keeping record and storage of mortgage/leasing/factoring cross-border transactions for mortgage securitization since 2003. dossiers
REGION Depository Company ranks 5th among specialised depositories by Control of dossier conformity to credit agreement the cost of property under control** requirements
Monitoring the pool composition and structure 100+ 620+ 250+ clients RUB bln thousand KEY CLIENTS
More than 100 clients More than RUB 620 bln/ € Over 250 thousand over the Company’s 7.8 bln* of audited history under management pledges 150+ 16 transactions years of experience
Over 150 successful transactions 16 years of experience in mortgage dossiers ** as at 31 December 2018 (PARTAD) *-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q4 2018 BONDHOLDER REPRESENTATIVE
Controlling the issuer's fulfilment of bond-related obligations A Bondholder Representative (BR) represents the interests and protects the rights of bondholders Identifying issues that may result in violation of bondholders’ rights and legal interests
Taking measures aimed at protecting bondholders’ rights and legal REGION Group created REGION Finance, a specialised bondholder interests representative (BR) company, which benefits from all of the Group’s expertise and offers a full scope of BR and advisory and execution services. Providing information to bondholders
REGION Finance: Appealing to the commercial court (cases of bankruptcy of the issuer or the security provider for the issue, as well as any other • unique restructuring experience (Russia’s first bail-in – PERESVET proceedings) Bank); Executing security holders' powers • advisor during the sale of restructured bonds to third parties; • extensive expertise in securitisation (monitoring various credit pools, including lease liabilities and mortgages). Implementing resolutions of the general meeting of bondholders
League table of bondholders' representatives as at the end of Q2 2019 Executing other duties under regulations, including Federal Law No. 210-FZ dated 23 July 2013 domestic corporate bond issues
Position BR Number of deals transactions The BR company provides its services with regard to 45 bond issues for a total of around RUB 170 bn*
ИК Фридом Финанс, БО-01; МСБ- KEY CLIENTS Лизинг (Адмирал-Лизинг), 002P-02; МигКредит, БО-01МС; 1-2 REGION Finance 7 ОбъединениеАгроЭлита, БО-П03; Ред Софт, 001P-02; ТД Мясничий, БО-П03; ТЕХНО Лизинг, 001P-01.
Source: Cbonds The ranking includes domestic corporate bonds issued by Russian entities offered for the first time between 1 January 2019 and 30 June 2019, and whose bondholder representative has been specified in the Prospectus or Bondholder Representative Notice
*- as at the end of Q2 2019 LEASING
Winner of the RAEX (RAEX Analytics) 2018 award in the following nominations:
Rustem Mukhamedov Best M&A Deal in the Leasing Market Head of Leasing Alexander Kozhevnikov, First Deputy CEO at REGION Leasing, received the award «For Contribution to the Development of the Russian Leasing Market»
A RAEX (RAEX Analytics) diploma in the Dynamic Development in 2018 category REGION Leasing is a diversified leasing company, which assists in modernization of tangible assets and provision of equipment to Leasing of motor vehicles and special equipment manufacturers in key capital-intensive industries.
The Company offers the opportunity to raise long-term structured funding Leasing of the rolling stock from first-class Russian and international financial institutions.
Leasing of aircrafts «ruВВ-» (credit rating ), outlook stable
Leasing of sea and river vessels
MAJOR LESSEES Leasing of equipment
Leaseback
Indicator* Value
MAJOR LENDERS Portfolio, bln rub/ mln €** 38.6/546
* - based on RAEX Analytics research for 1H 2019
**-In local currency at the exchange rate of the Central Bank of Russia as at the end of Q3 2019 PUBLIC-PRIVATE PARTNERSHIP PROJECTS
Valeria Repkova Sourcing non-public funding for development and reconstruction of Head of Public-Private Partnership infrastructure (share capital and “senior debt”)
Project structuring and preparation for implementation One of REGION Group's priorities is the development of the public-private (preparation of financial, engineering and legal groundwork for the project’s implementation) partnership (PPP) and facilitation of infrastructure investments. To implement PPP projects REGION Group established Agency for Project Initiative Development (ARPI) – a subsidiary company that works as part of the Group to arrange and support investment projects based on PPP and Project implementation project financing mechanisms. (turnkey construction, commissioning and operation) APID is a team of experts benefiting from extensive experience in PPP, with a portfolio of landmark PPP projects in various economic sectors with participation of the Russian Federation and its regions.
KEY INVESTMENT AREAS
•Roads and road facilities Transport infrastructure •Overpasses COMMON FEATURES OF ALL PPP MODELS: •Public transport
• Opportunity to create infrastructure “today” by attracting private •Diagnostic and treatment facilities Healthcare investment, levelling or deferring budget costs for the medium or long •High-tech facilities term • Sharing the infrastructure project implementation risks with a private partner, more effective budget spending, execution of state functions and •Water supply and sewage providing public services to individuals Utilities infrastructure •Heat supply • Private partner’s execution of their commitments within the project’s life •Waste management cycle, including turnkey construction and operation during the agreement term
IT infrastructure •Smart city BANKING SERVICES
Established in 2002, JSC «RUSNARBANK» joined REGION Group in November 2016. The bank offers its clients a comprehensive range of financial services that rely on modern banking technologies. Its products are customized to fit the needs of various client categories, both private and corporate.
The bank pursues a tailored approach and long-term partnerships with its clients.
Key areas of business: Seven offices in Moscow and the Belgorod Region Servicing medium and large businesses
Main tools for fostering client partnerships: Small business lending based on the standards of the
EBRD programs
• Rapidly growing bank with a focus on medium-sized Private banking enterprises and individuals • Substantial capital and liquidity cushion Development of retail business through conventional product offerings • Team of experts with experience in management positions at large banks Expedited issuance of bank guarantees in compliance with • Tailored approach and competitive tariffs Federal Laws No. 44-FZ and No. 223-FZ • Implementation of cutting-edge banking technologies
RAEX (Expert RA) assigned the ruBBB- credit rating to JSC «RUSNARBANK» with a stable outlook
Rating-Agentur Expert RA GmbH (Germany) assigned the B+ credit rating to JSC «RUSNARBANK» with a stable outlook INSURANCE
Alexey Okhlopkov CEO of UGORIA Insurance MHI and CMTPL Company
Personal accident and health insurance
Personal property insurance UGORIA Insurance Company is a universal insurer offering a wide range of products. Its is licenced for 23 types of insurance and Corporate property insurance reinsurance activities and applies over 60 various rules. UGORIA Insurance Company has a subsidiary – UGORIA-Life State Liability insurance Insurance Company. Its client base comprises more than 40,000 corporates and over 1.8 million retail customers. Special machinery insurance The company’s regional network consists of 136 branches and 180 agencies and points of sale operating in 57 Russian regions.
2018 performance
No. 13 in terms of CMTPL premiums with a RUB Insurance premium RUB Net income in accordance 2.3% market share portfolio with the Industry-Specific TOP 13 No. 11 in MHI premiums with a 1.9% market 10.3BN 1.4 BN Accounting Standards share, according to the Bank of Russia
Ratings and awards
ruA (financial reliability rating), a stable outlook The Bank of Russia included the Company in the list of Russia’s systematically important insurance companies
The Company won the nationwide Consumer Rights and According to a survey by RBC, an information agency, Service Quality 2016 award in the Insurance Company UGORIA Insurance Company became the market leader by category. claim settlement ratio in 2015. CONTACTS
Zubovsky Boulevard 11a, Moscow, 119021, Russia Tel.: (495) 777-29-64
www.REGION.ru