WORKING TOGETHER SOCIAL REPORT 2008 Throughout its history, Alfa-Bank has taken seriously its role in sponsoring socially significant events. Therefore today, as we witness major changes in both the country’s economy and its social sphere, we understand how important it is for financial institutions to participate in Russia’s social life. Rushan Khvesyuk Chairman of the Executive Board, Member of the Board of Directors Message froM alfa-Bank ManageMent Alfa-Bank is pleased to present its Social Report 2008. From nearly the time of its foundation, Alfa-Bank has paid special attention to arranging and sponsoring socially significant events, including charitable programs and large-scale and sometimes unique projects in art and culture. Alfa has never forgotten the importance of social initiatives to all the regions where it operates. By making a continuous effort to create a better social environment and build a prosperous society, we are laying the foundation for the long-term success of Alfa-Bank. This report contains brief summaries of most of the charitable and social events Alfa-Bank was involved with in 2008. Alfa-Bank presented masterpieces of world culture to the Russian public and arranged for renowned Russian artists to appear in major cities around the globe. Our most noteworthy projects are those that focus on supporting vulnerable groups, including children, students, the disabled and veterans. For example, since 2004 Alfa-Bank and its employees have been donating money to help seriously ill children as part of a joint program with the Life Line Charity. And together with the World Wildlife Fund (WWF), the Bank supports initiatives to protect the environment. Our collaboration with the world of art began several years ago. Many landmark events in Russia’s cultural life were sponsored by Alfa-Bank. Two of these were especially noteworthy: a contemporary art exhibition arranged by well-known art dealer Larry Gagosian to commemorate the launch of an A-Club in Barvikha where, for the first time in Russia, works were on display by Andy Warhol, Jeff Koons, Damien Hurst, Richard Prince, and Takashi Murakami; and a preview of contemporary American art masterpieces organized jointly with Sotheby’s Auction House. Contemporary art is a phenomenon of the last two decades, and as such it is interesting from both an aesthetic and practical point of view. That is why, for the second year in a row, our partners from Forbes magazine have selected those contemporary Russian artists who are most promising from an investment standpoint. The results of the selection were presented in 2007 and 2008 at the Forbes’ Choice exhibition in Novosibirsk, Yekaterinburg and Samara. Throughout its history, Alfa-Bank has taken seriously its role in sponsoring socially significant events. Therefore today, as we witness major changes in both the country’s economy and its social sphere, we understand how important it is for financial institutions to participate in Russia’s social life. We will continue to sponsor the same projects, programs and initiatives that Alfa has been supporting for many years, reaffirming our commitment to social responsibility. 1 life line – extending a Helping Hand Alfa-Bank launched the Life Line charity program on June 1, 2004 as an initiative of leading Russian companies and individuals who were concerned about the high mortality rates in Russia. It became a national charitable foundation in 2007. The fund was founded to help children with serious illnesses that can be treated with state-of-the-art medical care. Life Line pays for the medical treatment of Russian children who are 15 years or younger suffering from life-threatening heart, brain and liver diseases. Every effort is made to ensure that the children receive the best treatment available. Life Line is a nation-wide charity, with all the funds raised by the program going to provide treatment for children in Moscow, St. Petersburg, Perm, Krasnodar, Tyumen, Samara, Novosibirsk, Tomsk, Voronezh, Nizhniy Novgorod, Krasnoyarsk, Kaliningrad, Kazan, Murmansk, Khabarovsk, Syktyvkar, Volgograd, Ekaterinburg, Rostov and other cities. In four short years, the Life Line Charity has saved the lives of more than 2,500 children across Russia. To date, the amount raised and spent on treating sick children totals $13 mln. The program provides funding for prescribed medical services and medicines necessary for the care of every Life Line patient. The proper use of the charity’s funds and the transparency of the program are guaranteed at all times. In addition to private and corporate contributions, the Life Line program also raises funds to save the lives of sick children through the Give as You Earn program, an initiative designed for employees to contribute part of their wages. Any company can participate in the Life Line employee scheme and give their staff the opportunity to provide financial aid to children. Alfa-Bank was the first corporate participant in the Life Line program. Since August 2004, the Bank’s employees have managed to raise more than R6 mln and fund treatment for 81 children. 2 Alfa-Bank has supported the Life Line Charity, which provides financial assistance to critically ill children, for the past four years. The Bank acts as the corporate sponsor of the program and also provides opportunities for its employees to make individual donations. The Bank regularly holds events to raise extra funds for children in need of help as part of its support to the charity. In December 2008, Alfa-Bank gave the money that was budgeted for promotional gifts CHarity to the Life Line Charity. This will help the charity to purchase expensive cardiological instead of gifts equipment for several children who will undergo surgery in 2009. In 2008, Life Line and Alfa-Bank launched a major joint project, enabling the Bank’s extending customers to provide financial assistance to the charity for sick children. Since September a Helping Hand 2008, customers have been able to contribute to the charity using the Alfa-Click Internet Bank and bank transfers, with all money transfers free of bank charges. Updates on how the money is being spent are regularly posted on the Bank’s website. We are very grateful to our customers for their enthusiasm in supporting our initiative to provide financial assistance to the Life Line Charity - between September and December 2008 they donated about R2 mln. This was enough to provide state-of-the-art medical care for 22 children suffering from heart defects from all over Russia. The New Year Charity Night held in Novosibirsk on 21 December 2008 was organized CHarity auCtion by Alfa-Bank, Russian Business Club and the “Honored Citizen of the Fatherland” Club. The key event of the evening was a charity auction of paintings by Novosibirsk artists donated by the Stary Gorod gallery and some pieces by children from the Zazerkalye art studio. R3.5 mln was raised in total at the charity auction, which was attended by Alfa-Bank’s A-Club members. This was enough to fund the best possible medical care for 12 children. In November 2007 the Bank launched a new corporate project, a monthly charity lottery The golden Heart called “The Golden Heart of Alfa-Bank.” Everyone who makes donations using the Life Line of alfa-Bank program can participate in the lottery. Prizes include tickets to events organized jointly by Alfa-Bank and the Life Line Charity. 3 CHarity if we don’t help, who will? – Volunteer Initiatives at Alfa-Bank CHildren’s day — Moscow staff working in the Mortgage Lending block of the Bank and the Detskie Domiki teaMBuilding event Charity arranged an amazing event for children at the Korobcheevsky orphanage near for alfa Bank’s Mortgage lending Kolomna. The block’s partners also participated in this visit. The guests brought gifts for the children, such as sports equipment, educational and entertaining games, and also three TVs and DVD players. Alfa-Bank’s Mortgage Lending block funded the construction of a playground at the orphanage. We hope that these facilities will be a long-lasting source of happiness for the kids. spring day One initiative by Bank employees led to a visit to the Ivanovo Child Care Centre on March 5, 2008. Over a period of two weeks we collected money, gifts and other items for the children. As a result of efforts made by colleagues in our Moscow offices the children received clothes, diapers, sterilizers and, of course, toys. All of the collected cash was handed over to the volunteers collecting funds to purchase new furniture for the senior group of the Child Care Centre. CHristMas MiraCle The main goal of the Christmas Miracle event was to provide material assistance volunteering event to parentless children at various remedial and educational institutions across Russia in the run up to the New Year and Christmas. Christmas Miracle spread far and wide across the whole country. Alfa-Bank employees visited children at 22 orphanages, childcare centers and boarding schools. All these children received thousands of toys, books, CDs, stationary and New Year gifts. Orphanages were refurbished and given new appliances out of the money collected by Bank employees. This was not the first year that many departments within the Bank and their employees have personally helped out various children’s institutions. This is why the announcement of the launch of the Christmas Miracle event in Alfa-Navigator (our corporate intranet magazine) was met with great enthusiasm. 4 We are proud of our team at Alfa-Bank. Our employees are great, warm and generous people, many of whom support orphanages and childcare centers on a permanent basis. The Bank’s management endeavors to provide all kind of administrative and financial support to volunteer initiatives coming from the Bank’s employees from all corners of the country.