NEWS & OUTLOOK

RMG WEEKLY #777

The RTS was flat last week on mixed news from the US and Europe NEWS & OUTLOOK 1 where markets lost ground (S&P 500 -2%, FTSE 100 -1%). We note BUY RECOMMENDATION LIST 5 signs of weakness on the non-ferrous metals market, due to slowdown in the Chinese manufacturing sector, as the government takes action to SELL RECOMMENDATION LIST 7 prevent overheating. Sovereign problems remain an issue in Europe. MACROECONOMIC INDICATORS 8

MARKET STATISTICS 9

INTERNATIONAL MACRO INDICATORS AND FINANCIAL MARKETS by Ruslan Yunusov ▲▼ Mixed news There were mixed results from the US last week: home sales increased by 6% in April and from US and Europe the unemployment rate fell to 9.7%, but payrolls only rose to 431 000 compared with 536 000 expected. News from Europe was also mixed: Germany said that it will reduce its budget expenditures by up to €10b this year and financial stability in Hungary continued to worsen. Main macro news this week will be a FOMC meeting (Wednesday) and ECB meeting (Thursday). Other important news include retail sales in the US (Friday).

RUSSIAN ECONOMY by Ruslan Yunusov The CBR cut refinancing rate by 0.25pp to 7.75%, also said that further interest rate cuts are unlikely due to risk of inflation.

OIL & GAS by Constantin Yuminov ▲ Fine figures from Lukoil (RTS: LKOH, LSE: LKOD) published positive 1Q 2010 financial results under US Lukoil GAAP, which exceeded consensus forecast. Revenue fell by 1.6% q-o-q to $23 902m ($24 217m by consensus estimate), while EBITDA rose by 12.5% q-o-q to $3729m ($3466m by consensus). So Lukoil's EBITDA margin improved by 2pp to 15.6%. Net income was close to 4Q 2009 at $2053m ($1864m by consensus). Free cash flow increased from around $1b to $1.4b, which confirms that the company is implementing its strategy announced in December 2009 for improvement of FCF. ► Government The Russian government approved a gas tariff increase of 15% for 2011-2013. Under targets export parity current macroeconomic assumptions, the increase should achieve parity by 2014 between by 2014 the domestic regulated gas tariff and export netback, which is the export price obtained by Gazprom (RTS: GAZP) net of duty and transportation costs. This rate of domestic price growth now looks affordable for other industries and we use it in our model for Gazprom. However, achievement of gas parity depends to a large extent on macroeconomic assumptions, in particular as concerns the ruble exchange rate: if the ruble declines relative to the USD, the parity will not be achievable by 2014 (the Russian government is assuming that that the ruble will strengthen vs. USD up to 2014).

RMG Research, June 7, 2010 (7 495) 258 6262 [email protected]

NEWS & OUTLOOK

▲ Integra sells rig Integra (LSE: INTE) reached agreement with United Capital Partners on sale of URBO business (formerly Uralmash - Drilling Equipment), a heavy rig manufacturing business in Ekaterinburg, for $40m with some adjustments. The deal is a part of ongoing strategic repositioning of Integra with focus on oil-field services and formation evaluation. Production of heavy rigs by Integra fell significantly from 11 in 2009 to only 1 unit in 1Q 2010. EBITDA margin in Integra’s machinery segment fell from 18.1% in 2009 to 9.3% in 1Q 2010 and the order book for 2010 is much lower y-o-y. Also Uralmashzavod has taken legal action against Integra for illegal use of the Uralmash brand. Sale of URBO should eliminate these negative factors, and we view the sale price as fair. ▲ Slavneft selling Slavneft (RTS: SLAV), which is 50-50 owned by Gazprom Neft and TNK-BP, is selling its service business service business. The company has already reached agreement with several private bidders to sell four subsidiaries. We expect Slavneft to sell its biggest service company, Megionneftegaz (RTS: MFGS), in coming months. The buyers may not make a public offer to minorities, so we recommend shareholders to sell the shares on the market.

METALS & MINING by Ilya Makarov ▼ Antimonopoly According to Interfax, the Federal Antimonopoly Service started an action on May 27 Service acts against against Chelyabinsk Zinc Plant (LSE: CHZN), which it accuses of abuse of monopoly Chelyabinsk Zinc position in 2008-2010. The FAS says that the plant set different prices for domestic and export customers. The FAS is asserting that prices for domestic customers were higher on average than for international customers, but our assessment suggests that the Service has failed to take account of the supply and demand situation on domestic and export markets, effect of transportation costs, etc. We believe that the company will be able to present evidence to justify its pricing policy. We therefore view the FAS action as moderately negative, but do not regard it as a long-term factor. ▲ Japanese steel According to Bloomberg, the second largest steel producer in Japan, JFE Holdings, as makers accept well as two other Japanese steel companies have accepted a 12.5% price increase for 12.5% price increase coking coal under contract with BHP Billiton. The new price level of $225 per tonne will be for coking coal effective from July 1 and throughout 3Q. The news is definitely positive for Russian coking coal producers, since it proves continuing strong demand for coking coal on export markets.

FINANCIALS by Ruslan Yunusov ▲ VTB shows fine VTB (RTS:VTBR) published excellent results for 1Q 2010. The bottom line advanced to results for 1Q 2010 $513m from a loss of $596m in 1Q 2009, beating consensus forecast by 65%. Net income margin improved to 5.2% from 4.1% mostly thanks to reduction in cost of funding. All business segments showed positive margin trends: corporate and retail recovered from losses in 2009, and the investment division increased income before tax by 103% to $204m. On the negative side, quality of the loan book continued to worsen. Non-performing loans reached 10.2% at the end of 1Q from 9.8% at the end of 2009. Capital adequacy improved to 22.2%, but that was partly thanks to loan book reduction. Prior to 1Q publication the Bank presented a new ambitious strategy up to 2013, focused on sustainable profit growth. But the excellent 1Q figures reflect general market trends rather than any change of strategy.

RMG Research (7 495) 258 6262 [email protected] 2

NEWS & OUTLOOK

POWER UTILITIES by Vladimir Samorodov ▼ OGK-3 writes off RUSIA Petroleum (RTS: RPTL), project company for Kovyktinskoe gas condensate field assets development, has filled an application for bankruptcy. OGK-3 (RTS: OGKC), which owns 25% of RUSIA Petroleum, will not be able to significantly influence the initiated process. It is unclear now how much OGK-3 will get in case of bankruptcy of RP. We suppose that the company should receive at least fair net asset value of about R4.2b ($140m) and will thus realize the loss of about R10b ($320m) or $0.007 per share in its 2010 financials (book value of the asset is R14b). RUSIA Petroleum bankruptcy raises significant concerns about ability of OGK-3 to allocate capital wisely as well as acting in interests of all shareholders, including minorities. In order to reflect our concerns we have revised our target price downward to $0.061 as well as downgraded our recommendation to HOLD (see also our desknote issued today). ► The government The Russian government announced plans to decrease tariffs growth rate for electricity smoothes down distribution and transmission companies in 2011 (and probably the next 2-3 years too) tariff growth for under RAB regulating. In particular for the Federal Grid Company (RTS: FEES) the growth electricity networks rate in 2011 may be reduced to 15% from initial 31%. However we don’t see significant risks for the company as such tariff smoothing will result in just redistribution of cash flows for an extended period and will immaterially affect fair value. So we keep our positive view on FGC and MRSKs.

TELECOMS & MEDIA by Alexei Minaev ▲ Onexim obtains Onexim Group closed the deal on purchase of a controlling stake in ZAO RBC TV control in RBC Moscow (closed JSC). The latter has replaced RBC Information System (RTS: RBCI) as the holding company for RBC group. Onexim got 51.1% stake in the new company and the remaining 48.9% will be swapped for 100% shares of RBC Information System. According to management of Onexim and RBC, the share swap may take up to 2-3 months, and will include transfer of RBC TV Moscow into an open JSC, and a share split. As result of the deal RBC has fully restructured its debt, which totaled some $240m as of end 2008. The deal was approved by 97% of creditors, and final value of current debt will be announced later. By management estimates and our own indicative valuation the fair value of RBC stocks may exceed $2, compared with current $1.2-1.3. Thus in particular, some terms of debt restructuring are linked with share price of $2 or above. So we retain our positive view on the stock.

CONSUMER & RETAIL by Ekaterina Andreyanova ▲ Synergy to sell Synergy (RTS: SYNG) plans an IPO by its subsidiary, Penta-Agro, which owns all 50% of non-alcohol company businesses, which are not related to alcoholic beverages. Synergy expects to business raise up to $100m for a 50% stake, and the placement may occur before the end of 2010. We view the price target as too optimistic (it implies 2009 EV/S at 2.3x and EV/EBITDA at 12.2x, while Synergy multiples are 1.0x and 6.3x, respectively) and think that a figure of $50m is more realistic. Synergy may have to make a private placement of Penta-Agro, because its business is mixed (land, poultry plants, dairy and meat processing facilities), making it hard to evaluate as a whole. The business also needs significant capex in the mid-term. The sale will be positive for Synergy, since disposal of non-core assets will improve focus on the alcoholic segment. In 2009 Penta-Agro assets brought only 17% of total company revenue.

RMG Research (7 495) 258 6262 [email protected] 3

NEWS & OUTLOOK

CHEMICALS by Constantin Yuminov We met with Mineral Group, the management company of Silvinit (RTS: SILV; SILVP), #5 potash producer in the world. Managers are pleased with price and volume trends, and expect to publish FY 2009 figures in two weeks time, followed by 1H 2010 figures. The Uralkali owner may sell his 25% stake in Silvinit, removing a hostile minority and (possibly) increasing share liquidity (see more details in our desknote issued today). ▲ Change of The Federal Antimonopoly Service imposed R103.6m ($3m) of penalties on Uralkali (RTS: Uralkali owner may URKA) for unfair pricing policy on the domestic market. FAS previously made a similar favor potash decision in respect of Silvinit and Mineral Trading and fined them a total of R160m ($5m). producers These figures are not dangerously high for the potash producers, but the fines suggest that the government is continuing to discriminate against potash producers in favor of complex fertilizer producers. However, if the Uralkai owner Dmitriy Rybolovlev sells his controlling stake to a government-friendly oligarch, the situation may change in favor of potash producers.

PHARMACEUTICALS by Ekaterina Andreyanova ► 36.6 overprices Pharmacy Chain 36.6 (RTS: APTK) will open subscription for its new share issue on June shares for SPO 15. The issue amounts to 10% of current share capital and the new shares will be placed by open subscription at R93 (~$3.01), representing 8% premium to current market price. We had expected the issue to be priced well below market level (last year’s SPO was at R27.3 per share). The price premium suggests that the controlling shareholder will exercise its preemptive right, while other shareholders will not take part. In that case the second largest shareholder, SIA International, which obtained a blocking stake in 36.6 for debts, will face dilution of its stake. SIA said earlier that it has no plans to increase its stake in 36.6. The placement could be intended by 36.6 owners as a means of preventing hostile action by SIA in the future.

TRANSPORTATION by Ekaterina Andreyanova, Constantin Yuminov ▲ Strong 1Q from Aeroflot (RTS: AFLT) published positive financial results under IFRS for FY 2009, Aeroflot exceeding our expectations for EBITDA. EBITDA margin increased by 3pp to 14% vs. our estimate of 12%, which suggests that new management has taken steps to raise efficiency and cut costs. The company also lowered effective cost of its ruble bonds to only 3.89% by entering a justified swap agreement. The deal also hedges Aeroflot's currency risks. Sovcomflot plans to fully acquire Novoship (RTS: NOMPP) within two years by making offers to minorities. Sovcomflot currently owns nearly 86% of Novoship’s share capital. We view the news as neutral for shares of Novoship since Sovcomflot already said it will buy out pref holders (commons have already been delisted from the market) and recommended them to present shares to avoid compulsory purchase when Sovcomflot has acquired 95% of prefs.

RMG Research (7 495) 258 6262 [email protected] 4

BUY RECOMMENDATION LIST

Fair Market bid- Up / Ticker Reason to BUY price, $ ask range, $ down, %

Blue Chips gradual gas consumption revival; diversified asset portfolio; Gazprom com GAZP 9.00 3.70-5.30 100% strong government support; steady rise of domestic prices developed downstream; low debt; strong corporate Lukoil com LKOH 81.0 50.0-51.8 59% governance Norilsk Nickel com GMKN 221 156-158 41% strong price environment on main company's metals leveraging on its broad distribution network; client Sberbank com SBER 3.10 2.20-2.27 39% diversification; state support; stable Interest margins Oil & Gas strong M&A opportunities; Gazprom support; focus on Gazprom Neft com SIBN 7.70 5.77-5.78 33% downstream; potential free-float growth most liquid among gas service companies; undervalued by VNIPIgazdobycha com VNIP 2 439 800-1 020 168% multiples Metals & Mining Chelyabinsk Zinc Plant com CHZN 7.20 1.50-3.89 167% demand recovery; own resource base; no debt Magnitogorsk Steel GDR MMK 18.1 10.3-10.3 76% low debt load; good product mix; controls Belon highest profitability in the sector; low debt load; expectation Raspadskaya com RASP 8.70 0.700-4.65 225% of price increase on coking coal expected improvement in operating profitability of North Severstal GDR SVST 19.4 10.5-10.5 85% American assets in 2010; divestiture of Lucchini; possible IPO of gold assets strong financial performance YTD, diverse resource bace, Uchalinsky GOK com UGOK 24.5 9.80-12.8 117% low leverage and attractive relative valuation Financials SME specialization; large branch network and high capital Vozrozhdenie com VZRZ 45.0 32.0-33.0 38% adequacy Power Utilities Moscow united electricity MSRS 0.094 0.044-0.048 104% undervalued to peers on EV/RAB multiple distribution company com MRSK South com MRKY 0.011 0.0056-0.0065 82% undervalued to peers on EV/RAB multiple MRSK Urals com MRKU 0.017 0.0080-0.010 89% undervalued to peers on EV/RAB multiple Telecoms & Media Center Telecom com ESMO 1.05 0.700-0.800 40% RTO commons to gain most from merger to Rostelecom Far-East Telecom com ESPK 4.34 2.70-3.00 52% RTO commons to gain most from merger to Rostelecom North-West Telecom com SPTL 0.993 0.650-0.700 47% RTO commons to gain most from merger to Rostelecom Siberia Telecom com ENCO 0.088 0.058-0.060 49% RTO commons to gain most from merger to Rostelecom South Telecom com KUBN 0.210 0.134-0.150 48% RTO commons to gain most from merger to Rostelecom Ural Svyazinform com URSI 0.047 0.032-0.032 48% RTO commons to gain most from merger to Rostelecom Volga Telecom com NNSI 4.57 2.95-3.15 50% RTO commons to gain most from merger to Rostelecom Consumer & Retail clear expansion strategy; undervalued by EV/S; expect Dixy com DIXY 13.7 8.95-9.35 50% margins improvement; has arranged refinancing of its debt strong operationals; zero debt; gradual recovery of M.video com MVID 7.07 4.60-4.95 48% consumer electronics retail; high potential to increase growth rates and profitability Chemicals exposure to the value-added DAP market; change from Apatit com APAT 550 320-350 64% cost to profit center; corporate actions of Phosagro ahead of its IPO new favorable pricing arrangements with Gazprom; strong Kazanorgsintez com KZOS 0.300 0.170-0.180 71% domestic demand for polyethylene; government support; debt restructuring price restoration in Russia and abroad; reduction of tolling Metafrax com MEFR 1.50 0.660-0.750 113% is on the track; continuing business diversification gradual recovery of construction market; rising domestic Soda Sterlitamak com SODD 36.1 16.0-23.0 85% prices; repeatedly strong margins; high expected dividends Pharmaceuticals strong financials; low debt; ownership risks are Veropharm com VRPH 48.4 26.0-35.0 59% exaggerated

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BUY RECOMMENDATION LIST

Fair Market bid- Up / Ticker Reason to BUY price, $ ask range, $ down, %

Engineering largest nuclear fuel producer in Russia; strong cash flow; Elektrostal Engineering Plant com MASZ 418 275-320 41% net cash; low multiples; development of nuclear generation both in Russia and abroad a rare producer of equipment for uranium enrichment; low Kovrov Mechanical Plant com KVMZ 88.0 47.0-60.0 64% multiples; diversified product portfolio highest profitability among helicopter companies, lowest Ulan-Ude Aviation Plant com UUAZ 2.28 1.11-1.22 96% debt, presence of military jet planes in its production portfolio Transport strong financials; fast fleet renovation; growing market Aeroflot com AFLT 2.60 1.60-2.20 37% share; possible gains from obtaining Rosavia assets well-balanced cargo mix; organic growth accompanied with Globaltrans GDR GLTR 19.0 12.8-12.8 48% value-proved acquisitions; strong balance sheet and low debt offering scope for further M&A growth Novorossiysk Commercial Seaport well-balanced product portfolio; growth of high-margin NCSP 17.9 12.1-12.1 48% GDR containerization; gains from handling for Sochi-2014 large share of growing helicopter transportation; market UTair com TMAT 0.600 0.300-0.400 71% expansion; low multiples strong operationals due to orientation on oil transportation; PRISCO com PRIM 0.380 0.185-0.215 90% growth potential from participation in Sakhalin projects; modern fleet

Note: no

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SELL RECOMMENDATION LIST

Fair Market bid- Up / Ticker Reason to SELL price, $ ask range, $ down, %

Oil & Gas opaque; low liquidity; new ownership may reduce good Spetsgazremstroy com SGRS 47.2 10.0-85.0 -1% dependence on Gazprom's payments; overvalued compared with peers Pharmaceuticals high debt; weak retail segment; SPO price was $0.9; Pharmacy Chain 36.6 com APTK 2.13 2.60-2.95 -23% another SPO is expected Construction & Development Mostootryad-19 com MSOT 1 430 1 600-2 000 -21% overvalued by multiples

Note: no

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MACROECONOMIC INDICATORS

Stocks Value -1W, % -1M, % -3M, % -1Y, % Russian Economy Value Date -1Y National Money & Banking RTS 1 360.7 -0.5% -8.2% -9.8% 22.7% RTS total MCap, $b 729 07.06.10 582 Fair RTS (RMG estimate) 1 950 M0, $b 142.9 Apr 10 102.9 MICEX 1 333.5 1.9% -3.3% -5.7% 19.0% M2, $b 561.8 Apr 10 372.4 Europe CBR refinancing rate, % 7.75 04.06.1011.50 FTSE 100 5 126.0 -1.2% -4.0% -8.5% 16.8% One-day MIACR, % 2.58 04.06.10 7.22 Xetra DAX 100 5 938.9 -0.1% -0.3% 1.0% 17.3% Cash of banks at the CBR, $b 16.4 26.02.10 14.0 CAC 40 3 455.6 -1.7% -5.0% -11.6% 4.3% CBR reserves, $b 455.0 28.05.10 401.1 Asia Pacific & Australia GDP & Investments ASX 100 3 646.1 -0.2% -4.9% -6.7% 13.3% GDP chng (YoY), % -7.9% FY2009 5.6% Hang Seng 19 780.1 0.1% -2.7% -4.8% 6.9% Fixed investments, $b 17.8 Apr 10 14.4 Nikkei 225 9 901.2 1.4% -7.4% -4.5% 2.4% Foreign investments, $b 13.1 Mar 10 12.0 SENSEX 17 117.7 1.5% 0.2% 0.7% 14.1% - FDI, $b 2.6 Mar 10 3.2 Middle East Foreign Trade (monthly) ISE National 100 54 612.9 -1.1% -3.2% 2.5% 59.4% Exports, $b 33.7 Mar 10 20.9 Americas Imports, $b 18.7 Mar 10 14.5 DJ Industrial 9 932.0 -2.0% -8.6% -6.0% 13.5% Trade balance, $b 15.0 Mar 10 6.4 S&P 500 1 064.9 -2.3% -8.7% -6.5% 13.0% Budget & Debt NASDAQ 2 219.2 -1.7% -7.6% -4.6% 20.0% Stabilization Fund, $b 125.1 May 10 190.8 BOVESPA 61 675.8 -0.4% -5.0% -10.4% 15.4% CBR foreign debt, $b 473.7 1Q 10 446.4 MERVAL 2 181.2 0.6% -4.6% -5.1% 31.8% FM foreign debt, $b 37.6 4Q 09 40.5 MSCI Indices Budget revenues, $b 89.5 Apr 10 67.0 Russia 728.1 -0.6% -7.7% -12.0% 10.4% Budget expenditures, $b 104.7 Apr 10 78.2 EM Europe 414.7 -2.5% -8.7% -11.9% 15.0% Budget balance, $b -15.2 Apr 10 -11.2 EM Asia 377.2 0.7% -5.7% -3.2% 16.8% Inflation EM Latin America 3 649.0 -0.8% -5.5% -10.6% 18.4% CPI (YTD), % 4.0% May 10 6.8% EM World 913.5 -0.4% -5.8% -6.3% 16.9% - food (MoM) 0.7% May 10 0.7% World 1 060.3 -1.9% -8.4% -9.4% 7.5% - non-food (MoM) 0.4% May 10 0.7% Commodities Value -1W, % -1M, % -3M, % -1Y, % - services (MoM) 0.4% May 10 0.3% Brent (ICE futures), $/b 72.1 -2.6% -12.7% -9.8% 4.9% PPI (YTD), % 6.0% Apr 10 7.0% Urals (MDT spot), $/b 70.8 -0.7% -10.0% -8.9% 4.9% - mining (MoM) 6.2% Apr 10 15.3% Gold (LME spot), $/oz 1 219.9 0.5% 3.8% 7.5% 24.4% - manufacturing (MoM) 2.4% Apr 10 0.2% Silver (LME spot), $/oz 17.4 -5.1% -0.2% 0.5% 9.8% - utilities (MoM) -0.4% Apr 10 -0.3% Platinum (LME spot), $/oz 1 516.5 -1.9% -8.0% -3.9% 17.1% Russia Credit Ratings Palladium (LME spot), $/oz 426.9 -6.9% -15.4% -10.7% 67.4% Standard & Poors BBB 08.12.08 Aluminum (LME spot), $/mt 1 849.3 -8.1% -11.5% -15.9% 20.7% Fitch BBB 04.02.09 Copper (LME spot), $/mt 6 249.0 -9.6% -9.7% -16.8% 24.8% Moody’s Baa1 16.07.08 Lead (LME spot), $/mt 1 582.5 -13.2% -17.1% -28.3% -3.8% US Economy Value Date -1Y Nickel (LME spot), $/mt 17 881.0 -16.0% -18.2% -19.9% 22.3% M2, $b 8 573.8 24.05.10 8 432.7 Tin (LME spot), $/mt 15 943.0 -10.6% -8.9% -8.0% 7.2% GDP chng (YoY), % 3.0% 1Q 10 -6.4% Zinc (LME spot), $/mt 1 610.0 -15.5% -23.0% -30.7% 3.8% Debt / GDP, % 89.4% 03.06.10 80.2% Steel HR Europe (spot), $/mt 657.5 -8.0% -8.0% 14.3% 80.1% IPI (MoM), % 0.8% Apr 10 -0.5 Steel CR Europe (spot), $/mt 760.0 -7.0% -7.0% 11.8% 47.6% Trade balance, $b -40.4 Mar 10 -28.8 Currencies Value -1W, % -1M, % -3M, % -1Y, % Budget balance, $b -82.7 Apr 10 -20.9 USD/RUB (spot) 31.48 2.7% 4.7% 5.8% 2.1% Current Account balance, $b -115.6 4Q 09 -154.9 EUR/RUB (spot) 37.90 0.2% -1.9% -6.6% -13.3% CPI (MoM), % -0.1% Apr 10 0.1% EUR/USD (spot) 1.20 -2.5% -6.6% -12.2% -15.6% PPI (MoM), % -0.1% Apr 10 0.6% GBP/USD (spot) 1.45 0.0% -4.3% -4.1% -10.6% Michigan Index of Confidence 81.0 May 10 67.7 USD/JPY (spot) 91.90 0.9% -2.0% 1.8% -4.8% Leading Composite Indicator 109.3 Apr 10 99.2 Bonds Value -1W -1M -3M -1Y ISM Manufacturing 59.7 May 10 43.2 US Treasuries 10 YTM, % 3.20 3.29 3.54 3.72 3.71 Major Foreign Bank Rates Value Date -1Y US Treasuries 30 YTM, % 4.13 4.21 4.38 4.69 4.58 USA, % 0.25% 04.06.10 0.25% Russia 10 YTM, % 5.62 5.59 5.55 n/a n/a United Kingdom, % 0.50% 04.06.10 0.50% Russia 30 YTM, % 5.55 5.52 5.37 5.10 7.55 European Community, % 1.00% 04.06.10 1.00% EMBI+ 508.6 0.1% 0.1% 0.6% 16.1% Japan, % 0.10% 07.06.10 0.10% Source: Bloomberg, RMG estimates

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MARKET STATISTICS

SECTOR INDEXES VS. RTSI (1Y) WINNERS (WOW) LOSERS (WOW)

RTSI Oil & Gas Chemicals

1630 1530 Ufaneftekhim com 14.2% Gazprom com -12.6% 1430 1330 Uralkali com 13.8% Acron com -7.1% 1230 Lukoil com 6.0% Bashneft pref -3.8% 1130 1030 Gazprom Neft com 1.3% Rosneft com -2.8% 930 830 Surgutneftegaz com 0.8% Bashneft com -1.7% - - Transneft pref -0.3% 04.06.2009 04.07.2009 04.08.2009 04.09.2009 04.10.2009 04.11.2009 04.12.2009 04.01.2010 04.02.2010 04.03.2010 04.04.2010 04.05.2010 04.06.2010

RTSI Power Utilities

1940 1740 Kubanenergo com 10.8% Samaraenergo pref -15.8% 1540 Irkutskenergo com 3.7% INTER RAO UES com -8.9% 1340 TGK-5 com 3.6% OGK-3 com -8.2%

1140 Lenenergo com 2.4% FGC UES com -6.4% 940 740 MOESK com 2.2% OGK-1 com -5.0% OGK-2 com 2.1% RusHydro com -2.8% 04.06.2009 04.07.2009 04.08.2009 04.09.2009 04.10.2009 04.11.2009 04.12.2009 04.01.2010 04.02.2010 04.03.2010 04.04.2010 04.05.2010 04.06.2010

RTSI Telecoms

1630 1530 RBC com 8.3% South Telecom pref -2.0% 1430 1330 Volga Telecom pref 6.0% - - 1230 NW Telecom com 5.9% - - 1130 1030 Siberia Telecom pref 5.2% - - 930 830 Volga Telecom com 3.4% - - Siberia Telecom com 3.1% - - 04.06.2009 04.07.2009 04.08.2009 04.09.2009 04.10.2009 04.11.2009 04.12.2009 04.01.2010 04.02.2010 04.03.2010 04.04.2010 04.05.2010 04.06.2010

RTSI Metals & Mining Engineering 2430 2230 Polymetal com 15.4% VSMPO-Avisma com -6.8% 2030 1830 Ashinsky Metal com 10.1% Belon com -6.4% 1630 Buryatzoloto com 6.9% GMK Norilsk Nickel com -2.8% 1430 1230 Polyus Gold com 6.3% Mechel com -2.3% 1030 830 Sollers com 4.1% NEFAZ com -0.3% Korshunov. GOK com 1.4% - - 04.06.2009 04.07.2009 04.08.2009 04.09.2009 04.10.2009 04.11.2009 04.12.2009 04.01.2010 04.02.2010 04.03.2010 04.04.2010 04.05.2010 04.06.2010

RTSI Consumer & Retail Banks 2500 2300 2100 Dixy com 7.5% Red October pref -5.8% 1900 Vozrozhdenie bank com 6.6% 36.6 com -4.0% 1700 1500 Synergy com 5.0% Bank St-Petersburg com -2.2% 1300 1100 M-Video com 4.9% Sberbank com -2.2% 900 700 Magnit com 3.5% - - Pharmstandard com 2.1% - - 04.06.2009 04.07.2009 04.08.2009 04.09.2009 04.10.2009 04.11.2009 04.12.2009 04.01.2010 04.02.2010 04.03.2010 04.04.2010 04.05.2010 04.06.2010 Note: winners and losers refer only to the RTS-Classic market

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