- Volga Group

VOLGA GROUP:
COMPANY OVERVIEW
One of the leading investors
in Russia
Volga Group is one of the largest investment Groups in Russia
• Total consolidated Revenue of all portfolio companies US$116 billion1
• Total number of Employees in all portfolio companies approximately
90,000 people
Volga Group has investments in 18 core companies mainly in Russia
The Group contributes significantly to the Russian economy and its
development
Volga Group is investment strategy seeks to maximise shareholder
and stakeholder return
• Stakeholders include employees, customers, suppliers and the communities in which the Group’s
companies operate
Volga Group promotes good corporate citizenship, social
responsibility and environmental awareness
1. Consolidated at 100% equity stake for all portfolio companies. Volga does not own 100% equity stakes in all
portfolio companies.
Focus on Long-Term
Consistent Returns
Volga Group investment policy is
based on value-driven assets that
produce consistent, long-term
returns with a focus on Russia
Three strategic core areas are
Energy, Logistics and Infrastructure
The Group seeks to add value by its
disciplined approach and focus on:
• Best in Class Management Practices and
Corporate Governance
• Working with the Board and Management
to define the right Strategy
• Developing Synergies and Partnerships
to grow the Businesses
Volga Group consistently considers
opportunities that offer long-term,
attractive and stable returns that are
in line with its investment policy
Gennady Timchenko - Founder and Shareholder
Key events
Born in 1952 in Gumry (former Leninakan)
Master of Electromechanical Engineering degree, Leningrad Mechanical Institute (1976)
Began his career at the Izhorsky plant (Leningrad region)
During the 1980s and early 1990s, served in private and public sectors, including as senior engineer
at the Leningrad Department of the Ministry of Foreign Trade and as deputy CEO of state-owned
Kirishineftehimexport
Relocated to Finland as Deputy CEO of trading company Urals Finland Oy (1991)
In 1997, together with partners started the energy trading company Gunvor, now one of the world’s
largest integrated commodity trading houses
In 2003 founded Transoil LLC, now the leading private rail freight operator specialising in oil and
products transportation in Russia
During last decade, made a number of strategic investments, including significant stakes in
NOVATEK, SIBUR, Stroytransgaz
Established Volga Resources Group in 2007 to consolidate and manage his investments
Member of the Board of Directors of SIBUR, NOVATEK
More than 25 years of experience
in the Russian and global energy
sector
Professional investor and entrepreneur
Active philanthropist and sportsman
Assets Geography – Investing Across Russia
Sakhatrans
Germany
Foreign projects
International
Three Core Areas – Energy, Logistics
& Infrastructure
ENERGY & MINING
Novatek (23%), Petromir (50%),
IGSS (13%), Kolmar (60%*)
*consolidated stake with Gunvor
Group
INDUSTRIALS &
CONSTRUCTION
TRADING &
LOGISTICS
Sibur (37,3%),
Stroytransgaz (80%),
Rorvik Timber (79%*)
*consolidated stake
with Gunvor Group
Gunvor (44%), Transoil (80%),
Sakhatrans (89%),
A-Group (100%)
FINANCIAL SERVICES
CONSUMER GOODS
Sogaz (12,5%),
SOVAG (49%),
Bank Rossiya (8%)
Russian Sea Group (30%),
Aquanika (100%)
NOVATEK (23% stake)
Energy & Mining
• Russia’s largest independent and second largest
natural gas producer in Russia after Gazprom
• Exploration, production, processing and marke
ing of natural gas and liquid hydrocarbons
• 2012 gas production of 57.3 bcm, liquids produc
tion - 4.3 mmt
• As of year end 2012 total SEC proved reserves
of 12,394 mmboe, resulting in reserve to produc
tion ratio of 31 years
• Listed on the London Stock Exchange and
MICEX
www.novatek.ru
Kolmar MC (60% consolidated stake
with Gunvor Group)
• Coal company with 975mt of high-quality
coking coal reserves in Yakutia
NOVATEK
23%
IG Seismic Services (13% stake)
Kolmar
60%
• Land and transition-zone seismic company,
primarily servicing clients in Russia and the CIS
• Created in 2011 by combining seismic assets of
Geotech Holding, Integra and Schlumberger
• Listed on the London Stock Exchange
www.igseis.com
IGSS
13%
Petromir
50%
Petromir (50% stake)
• Petromir holds the license for the AngaroLenskoe gas field in Irkutsk region
Trading & Logistics
Gunvor Group (44% stake)
Gunvor
44%
Transoil
80%
Sakhatrans
89%
• One of the world’s largest independent commodity trading companies
• Integrated trading products and logistics services worldwide
• Main trading offices are in Geneva, Singapore, Nassau and Dubai, with a network of representative
offices around the globe
• Stakes in coal mining operations, refinery assets, pipelines and oil storages and terminals
www.gunvorgroup.com
Transoil (80% stake)
• Largest private companу specializing in the transportation of oil and oil products in Russia
with total fleet of 34,782 tank cars
• Focus on strategic routes for transporting oil and oil products, including exports to China,
Mongolia, Finland, the Baltic states, the CIS and Eastern Europe
• 56mt of oil and oil products transported in 2012
• Network of representatives and branches covers 11 regions of Russia
www.transoil-spb.ru
Sakhatrans (89% stake)
• Greenfield construction of a bulk coal export terminal in Muchke Bay (Russia’s Far East)
• Construction is planned for 2013-2016
• Initial planned capacity of 10mt per annum with expansion to 24mt per annum by 2018
Avia Group (74% stake)
• Own and operate infrastructure for Business
Aviation at Sheremetyevo International Airport,
Moscow
• Services include aircraft maintenance, handling,
de-icing and aircraft storage services for air
ambulances, private, and corporate aviation,
organizational support services for flight opera
tions and passenger services
www.avia-group.su
Trading & Logistics –
A-Group
Avia Group Nord (70% stake)
• Avia Group Nord provides full scope of managing
services for business-aviation flights in Pulkovo
International Airport, Saint Petersburg
www.ag-nord.ru
Airfix Aviation (99% stake)
Airfix
aviation
99%
Avia Group
74%
Avia Group
Nord
70%
• Largest full-service Scandinavian private jet
operator
• Provides complete range of aircraft management
down to single charter flight sale
• In-house Flight Operations Control manages all
operational and technical matters
• Own flight planning department and mainte
nance services
www.airfixaviation.fi
SIBUR Holding (37.3% stake)
• Largest integrated gas processing and petrochemicals company in Russia and CIS and Central and Eastern
Europe
• Purchases associated petroleum gas and liquid hydrocarbon feedstock from major Russian oil and gas compa
nies and processes them into energy products and various petrochemical products
• Sells to around 1,500 customers in the energy, automotive, construction, retail and other industries in 60 coun
tries
• Owns and operates 27 production sites across Russia and employs approximately 31,800 people
www.sibur.com
Stroytransgaz (80% stake)
• Major player in the Russian construction industry
• Projects in the oil, gas, electric power and other industrial and civil industries
• Operates in nine regions of Russia and fourteen countries around the world
• Holds minority stakes in Arks and Most through affiliates
www.stroytransgaz.com
Rörvik Timber (79% consolidated stake with Gunvor Group)
• Processing and selling timber products to customers in the industrial, commercial and the DIY markets
in Sweden, Europe, Middle East and North Africa
• Based in Huskvarna, Sweden and operates 7 sawmills in southern Sweden with total production capac
ity of approximately 950,000 cbm per annum
• Listed on the Stockholm Stock Exchange
www.rtimber.se
SIBUR
37,3%
Stroytransgas
80%
Rörvik Timber
79%
SK MOST
ARKS
25%
25%
Industrials &
Construction
Financial Services
SOGAZ Insurance Group (12.5% stake)
SOGAZ
12,5%
• One of the largest universal Insurance Companies in Russia
• More than 600 branches across Russia
www.sogaz.ru
Sovag AG (49% stake)
SOVAG
49%
• German non-life insurance company offering motor, fire risk and property insurance as well
as cargo, marine, aviation and transportation insurance for corporate and retail clients in
Western Europe and the CIS
• Founded in 1927, Sovag is headquartered in Hamburg and has offices in Cologne, Berlin,
Vienna and London
www.sovag.de
Bank Rossiya (8% stake)
Bank
Rossiya
8%
• Universal financial and credit institution offering full range of banking services to corporate and
individual clients
www.web.abr.ru
Consumer Goods
Russian Sea Group (30% stake)
• Leading Russian consumer food company specializing in the wholesale and distribution of chilled and frozen
fish and seafood products
• Vertically integrated organisation comprising two key business divisions: Chilled & Frozen (Russian Fish Com
pany) and Fish Farming (Russian Sea Aquaculture)
• Founded in 1997 and listed on MICEX
www.russianseagroup.ru
Aquanika (100% stake)
• Aims to become a leading Russian high quality mineral water and soft drinks producer
• Production plant is located in Nizhny Novgorod region
• Equipped with the latest Krones AG facilities and has six bottling lines with overall production capacity of 585m
litres per annum
www.aquanika.com
Russian Sea
30%
AQUANIKA
100%
VOLGA GROUP:
Organization Structure
Volga Advisors – Exclusive Advisor
to Volga Group
Volga Advisors is the exclusive advisor to Volga Group
• Offices in Moscow and Geneva
• 17 professionals with expertise across different disciplines
• Flat organisation – no bureaucracy
• Team and result oriented corporate culture
Key principles include:
• Focus on audit and financial control
• No operational involvement in portfolio companies
• Good Corporate Governance
• Establish effective Board and Board Committees that include experts in various fields
• Work with the Board and Management to define the right strategy for the portfolio companies
• Ensure good Management and Management Structure
• Invest in Management Training and Development
Volga Advisors – Organizational Chart
Shareholder
& Family Board
Volga Group
Board of Directors
Volga Advisors
Chief Executive
Officer
Assets /
M&A
Financial
Control
Finance /
Treasury
Human
Resources
Legal
Public
Relations
Volga Advisors
125284, Moscow, Begovaya st. 3/1
+7 495 777 3898