Sistema JSFC Oil and Energy BU Capital Markets Day

October 20, 2009

Alexander KORSIK Senior Vice-President, Head of Oil and Energy Business Unit Disclaimer

Certain statements in this presentation may contain assumptions or forecasts in respect to forthcoming events within JSFC . The words “expect”, “estimate”, “intend”, “will”, “could” and similar expressions identify forward-looking statements. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the above-mentioned date or to reflect the occurrence of unanticipated events. Many factors could cause the actual Sistema’s results to differ materially from those contained in our projections or forward-looking statements, including, among others, deteriorating economic and credit conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.

2 1.1. Rationale for BashTEK Acquisition

 Diversification of JSFC Sistema portfolio

 Vision of JSFC Sistema: Oil industry has a significant Creation and potential for value growth growth of  Good price = real opportunity to increase value shareholders  Cash-flow generation value  Good timing: strong downstream assets have a significant competitive advantage within Russian taxation framework

3 1.2. BashTEK Ownership Structure

JSFC Sistema Minority shareholders

Four Bashkir- refineries nefteproduct

Production: 12 Mtn pa Capacity: 25 Mtn pa Number of stations: 322 Reserves: 320 Mtn (Russian classification)

4 1.3. Position of BashTEK in the Key Industry Sectors

Reserves (2P) of major vertically integrated oil Production forecast of major vertically integrated oil companies companies in 2009 Mboe Mboe 1 000 40 000 875 32 556 34 911 900 831 35 000 800 30 000 700 583 25 000 600 20 000 18 000 500 15 000 400 300 237 10 000 8 281 192 5 952 200 2 322 * 83 5 000 100 0 0 ЛукойлLukoil РоснефтьRosneft TNKТНК-BPВР GazpromГазпром ТатнефтьTatneft BashTEKБашнефть LukoilЛукойл РоснефтьRosneft TNKТНК--ВРBP ГазпромGazprom ТатнефтьTatneft БашнефтьBashTEK Neft Neft * Reserves С1 + ½С2 нефть нефть Oil refining of major vertically integrated oil Retail sales of petroleum products through own petroleum companies in 2009 (forecast) stations networks in 2009 (forecast) Mtn Mtn 50 7,0 Share of oil products, 43,3 44,9 6,22 45 Refining sold through own 6,0 5,61 40 depth retail network as % 35 31,4 5,0 4,66 of total light products 28,3 volume produced 30 4,0 3,67 25 21,6 20 3,0 15 2,0 10 0,88 4,9 1,0 5 0,22 0 0,0 ЛукойлLukoil РоснефтьRosneft TNKТНК-ВРBP GazpromГазпром РусснефтьRussneft BashTEKБашнефть LukoilЛукойл RosneftРоснефть TNKТНК--BPВР GazpromГазпром РусснефтьRussneft БашнефтьBashTEK нефтьNeft нефтьNeft 62,30% 66,90% 65,00% 75,20% 62,00% 85,40% 25,7% 14,4% 38,8% 25,7% 9,8% 6,5% 5 1.4. What BashTEK is? «+» «–»

• Production not sufficient to load • 12 Mtn production refineries UPSTREAM • Forecast: untapped potential • Production declining for many years of some oilfields • High watercut • Depleted reserves

• Refineries are considered to be among the best in Russia • Some modernisation programs aimed REFINING • Major modernisation programs aimed at Euro-3, 4-5 are still outstanding at Euro-3, 4-5 are accomplished

• Small part of oil products is sold RETAIL • More than 300 retail stations through own network

MARKETING • Being developed – capturing value • Did not exist BUSINESS- • Huge potential to be captured • Not strong enough PROCESSES through business processes

6 1.5. BashTEK Strategy

 Strategy is being developed

 Strategy consists of:

• Short-term measures to increase value (picking “low-hanging fruit”) • Long-term strategy options identification and valuation

 Major challenges:

• Shall we balance Upstream and Downstream? • Is Upstream organic growth sufficient?

• Are Upstream assets available in the market?

• What to do if these assets are not available?

• How to ensure direct access to customers?

7 1.6. Short-term Priorities

• General • Marketing – Best people – Creation of modern marketing division – Proper business-planning & monitoring – Transition from tolling scheme to – Proper investment planning & monitoring BashTEK own refining • Upstream • Business-development – New field development plans – Upstream acquisitions – New technologies – New greenfields – through tenders – Outsourcing of services • Strategy – Acquisitions – Valuating opportunities • Downstream – Finalising strategy – Optimal utilisation of refineries – Review of remaining modernization programs – Implementation of approved modernization programs

8 1.7. Targets

To create the vertically integrated oil company with efficiency of the best Russian oil companies

To capture the huge potential of BashTEK oil assets

9 1.8.

 The assets were part of the deal  Very good assets: • Installed capacity – electricity – 4 624.2 MVt – heat energy – 15 690.92 Gcal/h • About 3% of electricity production in Russia • Good condition of assets • No investment obligations to the Government (almost every other company has these obligations) • Good base for M&A activities  Strategy: • Short-term – picking “low-hanging fruit” • Long-term – looking for a way to radically increase value through M&A process

10 THANK YOU ! YOUR QUESTIONS, PLEASE

Alexander KORSIK Senior Vice-President, Head of Oil and Energy Business Unit

Investor Relations Department Tel. +7 (495) 692 2288 www.sistema.com [email protected] October 20, 2009

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