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Presented by: VTB Bank, Custody

May 14, 2020 Issue No. 2020/18

Market News

Putin approves new package of measures to support people, economy On May 11, 2020 Russian President approved a new package of measures to support the people and the economy amid the coronavirus pandemic. He said that the period of non-working days in Russia finishes on May 12. The President stated that forced restrictions, imposed in March–May, hurt the economy. The coronavirus disease severely affected many industries and the welfare of the people with the number of the unemployed doubling to 1.4 mln people from the beginning of April that is why additional help is necessary now. Putin also said that in May he would host a special meeting devoted to unemployment. The president ordered creation of conditions for restoration of operations of the basic industries, including construction, industrial production, agriculture, communications, energy and mineral resources extraction, from May 12. Russian regions were to have made plans on lifting the restrictions, considering local situations. ’s experience is demonstrating the possibility of beginning operations of construction and industries facilities, but the decisions should be well-weighted, and the high-safety regime must be maintained for 65+ years old people. If Russian regions’ governors decide to suspend operations of companies, which have not been included in the list of hurt industries, they must provide support to them and discuss the measures with the federal government. The state of the financial system and reserved accumulated by the government allow for making decisions on new social payments. Around 1.5 mln companies including self-employed individuals, small and medium businesses and socially-oriented non- profit organizations will be able to write off their taxes and payroll payments.

Moscow Exchange trade volume rises 16% to RUB 85.5 tln in April 2020 On May 7, 2020 it was reported that the trade volume on the rose 15.9% on the year to RUB 85.5 tln in April. Trading on the stock market rose 31.1% to RUB 4.147 tln. Trading in shares and depositary receipts grew to RUB 2.103 tln. The average daily amount of trade more than doubled to RUB 95.6 bln. Trading in corporate, regional, and sovereign bonds grew 9.5% to RUB 2.044 tln. The average daily amount fell to RUB 92.9 bln from RUB 102.7 bln a year ago. The volume of trade on the currency market decreased 5.5% to RUB 29.1 tln. The average daily amount was RUB 1.324 tln, or USD 17.6 bln.

Company News

Globaltruck unit buys back no stake in parent company in April 2020 On May 8, 2020 it was reported that Globaltruck Logistic, a subsidiary of Russian cargo carrier Globaltruck, bought back no shares in the parent company in April. RUB 386 mln buyback program has been in force since November 11, 2019 and will last until May 31, 2021 or until the limit is reached in price or the amount of shares. Under the program, the company buys its shares at no more than RUB 132 per security. The unit bought back a 0.33% stake in the parent company in November 2019, a 0.34% stake in December 2019, a 0.13% stake in January 2020, a 0.47% stake in February, and a 0.24% stake in March.

Government nominates 9 people to VTB Bank supervisory board On May 8, 2020 it was stated that Russia’s Federal State Property Management Agency nominated nine people to the supervisory board of the country’s second biggest lender VTB Bank. The candidates include Economic Development Minister Maxim Reshetnikov and Deputy Finance Minister Alexei Moiseyev. VTB also said that its supervisory board elected Svyatoslav Ostrovsky, former vice president of top lender

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Sberbank, as a member of the bank’s management board. Ostrovsky will be in charge of the development of key directions of VTB’s retail business.

Rosneft pays USD 6.6 mln to buy back 1.5 mln securities during May 4–8, 2020 On May 12, 2020 it was announced that Russian oil major bought back 1.454 mln securities for USD 6.6 mln in the week from May 4 through May 8. The weighted average price stood at USD 4.51 per share. Since the launch of USD 2 bln buyback program on March 23, the company has bought back 32.237 mln securities paying USD 133.4 mln.

Owner of Polymetal sells 7 mln shares at GBP 16 per share On May 12, 2020 it was reported that an undisclosed shareholder of Russia’s precious metals producer Polymetal sold 7 mln shares at GBP 16 per share. According to the report dated May 11, a shareholder set 7 mln shares, or a 1.5% stake in Polymetal for sale. The lower price guidance was GBP 15.95 per share. Citi was the organizer.

Shareholders of Globaltrans approve buyback of up to 5% shares On May 12, 2020 shareholders of one of Russia’s largest railway operators, Globaltrans, approved a buyback of up to 5% in the company. In late April, the company said that it had no shares on its books then. Businessmen Nikita Mishin and Andrei Filatov own 11.5% in Globaltrans each through special ventures, Konstantin Nikolayev has 10.8%, the company’s Executive Director Alexander Yeliseyev has 5.1%, and Chairman of the Board of Directors and Director for Strategy Sergei Maltsev has 4%. The company’s free- float is 56.9%.

Transneft shares excluded from MSCI Russia index On May 13, 2020 it was stated that Russian oil pipeline monopoly ’s shares were excluded from the MSCI Russia index. The adjustment will come into force from May 29. The index currently comprises diamond miner ALROSA, gas giant , power company Inter RAO, oil company , grocery retailer and other large Russian companies.

Beluga Group buys back shares to cut capital to 15.8 mln shares On May 13, 2020 it was announced that the charter capital of Beluga Group, one of Russia’s leading producers of alcohol, decreased to 15.8 mln shares from 19.4 mln shares after a buyback. Stakes of all the shareholders multiplied by a coefficient of 1.23. Nikolai Belokopytov, Chairman of the board of directors, stated that Beluga reached the major goal of the buyback with more than half of its quasi-treasury shares, owned by the company’s subsidiaries, sent for cancellation. As a result, the shareholding structure became simpler and more transparent.

MTS buys back 0.039% of parents’ shares from for RUB 240 mln On May 14, 2020 it was stated that Bastion, a subsidiary of major Russian mobile operator MTS, purchased 0.039% of shares of the parent company from Sistema Finance, a Luxembourg-based subsidiary of MTS’ majority shareholder Sistema, for RUB 240.059 mln. Bastion bought 778,144 ordinary shares under the repurchase plan announced on March 31. Under the Russian law, MTS is required to disclose any shares acquired by the company or any of its subsidiaries. MTS will fully disclose the aggregate number of shares acquired during the period, what this represents in MTS’s share capital, as well as price paid, during its next quarterly disclosure.

Sovcomflot boosts charter capital by RUB 655.6 mln On May 14, 2020 Russian state shipping company Sovcomflot has increased its charter capital by RUB 655.6 mln from RUB 1.9 bln. “To (raise) the charter capital of Sovcomflot by placing additional common shares in the amount of 655,565,735 units,” the statement read.

Dividends/coupons ALROSA board recommends RUB 2.63 per share in 2019 final dividends On May 7, 2020 the supervisory board of Russian diamond giant ALROSA recommended paying RUB 2.63 per share in final dividends for 2019. Taking into account earlier announced dividends for the first half of 2019 in the amount of RUB 28.28 bln (RUB 3.84 per share), the supervisory board recommends paying RUB 19.37 bln, or RUB 2.63 per share, for the second half of the year. Thus dividends for the entire 2019 will amount to RUB 6.47 per share, or 100% of free cash flow. The date of the shareholder meeting will be determined later.

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X5 Retail says to pay RUB 30 bln in final 2019 dividends On May 12, 2020 shareholders of Russian retailer approved payment of RUB 30 bln, or RUB 110.47 per a global depositary receipt (GDR), in final dividends for 2019. On May 7, Alfa-Group, the core shareholder of X5 Retail Group, said in a letter that the company’s shareholders asked executives of the retailer to postpone the payment of dividends for 2019 to Alfa-Group in order to guarantee the highest possible financial stability and stability of work of X5 Retail Group. A spokesperson for the retailer said that the company would decide on the date of the dividend payout to Alfa-Group later. X5 Retail Group paid RUB 25 bln in dividends for 2018. CTF Holdings S.A., a part of Alfa-Group’s consortium, owns 40.62% in the retailer, while the free-float is 40.62%.

TCS Group board recommends USD 0.14 per share in dividends for January–March, 2020 On May 13, 2020 the board of directors of TCS Group, which includes , recommended paying USD 0.14 per share or global depositary receipt (GDR), or a total of around USD 28 mln, in dividends for January–March. The record date for the dividends is recommended to be set at May 28. The company paid USD 0.17 per share or GDR in dividends for January–March 2019.

PhosAgro says may pay RUB 10 bln in dividends for January–March 2020 On May 13, 2020 the board of directors of Russian fertilizer producer PhosAgro recommended paying RUB 78 per common share and RUB 26 per global depositary receipt – a total of RUB 10.101 bln – in dividends for January–March. PhosAgro paid RUB 18 per share and RUB 6 per global depositary receipt – a total of RUB 2.33 bln – in final dividends for 2019. Former Senator Andrei Guryev and members of his family hold 48.67% in PhosAgro, Vladimir Litvinenko owns 20.98%, and free-float is 30.35%.

Irkutskenergo board recommends paying no dividends for 2019 On May 14, 2020 the board of directors of Russian power producer Irkutskenergo recommended paying no dividends for 2019 and leaving RUB 12.528 bln net profit undistributed. The company did not pay dividends for 2017 and 2018 as well. Irkutskenergo is part of En+ Group.

Please be advised that the information presented in this newsletter is based on the following sources: National Settlement Depository (NSD); Clearstream Banking; Euroclear Bank; PRIME-TASS information agency; “Kommersant”, "Rossiyskaya Gazeta”, “Izvestiya, "Vedomosti”, “The Moscow Times“ newspapers, and others.

For more information kindly contact: Anna Enfiandzhiants Evgenia Makarova Julia Dombrovskaya T +7 (495) 783 13 91 T +7 (495) 783 13 64 T +7 (495) 783 13 15 F +7 (495) 783 13 89 F +7 (495) 783 13 89 F +7 (495) 783 13 20 E [email protected] E [email protected] E [email protected] This document has been prepared exclusively for internal use of VTB Bank (PJSC) customers. The information should not be further distributed or duplicated in whole or in part by any means without the prior written consent of VTB Bank (PJSC). The information contained herein has been prepared on the basis of information which is either publicly available or obtained from a source which VTB Bank (PJSC) believes to be reliable at the time of publication. Information provided herein may be a summary or translation. The content of the material contained herein is subject to change without notice, and such changes could affect its validity. VTB Bank (PJSC) is not obligated to update the material in light of future events. Furthermore, VTB Bank (PJSC) does not warrant, expressly or implicitly, its veracity, accuracy or completeness. VTB Bank (PJSC) and its affiliates accept no liability whatsoever for any use of this communication or any action taken based on or arising from the material contained herein. Additional information may be available upon request. The material in this communication is for information purposes only. Therefore, this communication should not be interpreted as investment, tax or legal advice by VTB Bank (PJSC) or any of its officers, directors, employees or agents and customers should consult with appropriate professional advisers for these specific matters. Nothing expressed or implied herein is intended to create any obligation of VTB Bank (PJSC) and/or impose any liability on VTB Bank (PJSC) and/or create legal relations between VTB Bank (PJSC) and VTB Bank (PJSC) customers.

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