supervisory board of alfa group

Alfa Group
Annual Report
2008
1
CONTENTS
3
Statement by the Chairman of the Supervisory Board of Alfa Group Consortium
6
Alfa Group’s Principal Companies
7
Alfa Group Financial Highlights
8
Supervisory Board of Alfa Group
12
Alfa Group’s Investment Philosophy
14
Alfa-Bank
18
Alfa Capital
20
AlfaStrakhovanie Group
22
TNK-BP
25
A1
27
Rosvodokanal Group
28
CTC Media, Inc.
30
Altimo
32
X5 Retail Group N.V.
34
Sponsorship and Charity
39
Awards and Recognition
45
Contact Information
48
Summarised Combined Financial Statements
and Independent Auditor’s Report
STATEMENT BY THE CHAIRMAN
OF THE SUPERVISORY BOARD
OF ALFA GROUP CONSORTIUM
“We are not bankers, nor are we oil or telecommunications or retail
experts. We are investors. We do not have a business which we have
been involved in all of our lives. We are people who are able to assess
and anticipate certain market trends, understand which businesses
will develop faster and which businesses will stagnate or decline and
based on these considerations, we make competent investments.
At the same time, we are not “silent” investors – we work hard
on the companies we have invested in and we attract professional
managers who we can trust. We know that someday we will leave
these businesses and make other investments when we consider
the price, time and place are right.”
Mikhail Fridman
Following an extended worldwide economic boom, fueled in large part by easy credit and
ever-increasing asset prices, a financial bubble – global in scope – burst in the latter part
of 2008. While the swift and coordinated policy response of the Russian government and
Russia’s sizeable reserves have helped to limit the impact of the worldwide financial crisis,
Russia has by no means escaped the carnage and the ensuing worldwide recession.
Prices for Russia’s main exports (energy and other commodities) have collapsed, capital
has flowed out of Russia as investors shunned all manner of perceived risk, and for a time,
money, if available at all, became prohibitively expensive. In the aftermath, a number of
companies and investment holdings have forfeited or are expected to lose assets through
forced sale and bankruptcy. The Russian equity markets (RTS Exchange) in 2008 posted a
72% loss – the worst performance of any major world index. To be sure, Russian markets
were quite efficient in pricing in a doomsday scenario.
Alfa Group also did not manage to side-step this worldwide battering with the value of
our publically traded companies and private holdings declining significantly, and in-line
with the markets in which we invest. Despite this turmoil Alfa Group managed to retain
all of its investments and every one of our companies honored fully all obligations to
their counterparties and partners. In the face of extraordinarily trying circumstances our
companies turned in relatively solid fundamental performance in 2008.
3
IFRS profit (attributable to Equity Holders of the Parent Companies (i.e.
majority shareholders)) for the year 2008 as reported in Alfa Group Combined Financial
Statements was US $2.19 bln, a 31% increase over the US $1.67 bln IFRS profit reported
in 2007. 2008 profit of US $2.19 bln includes a number of one-off and accounting
gains and losses recorded in 2008 included into this US $2.19 bln figure. The main
one-off items are as follows:
• Change in the basis of accounting for investment in MegaFon as a result of the Group
obtaining significant influence over MegaFon in mid-2008 resulting in a one-off, noncash, accounting gain;
• Disposal by Alfa Group of Golden Telecom to VimpelCom resulting in a one-off gain;
• Impairment of goodwill relating to Alfa Group's investment in X5 and impairment in the
Group’s investment in MegaFon, resulting in one-off, non-cash, accounting losses.
Net of all one-off items, 2008 profit would have been a more modest US $1.59 bln.
Some of the highlights in 2008 and into 2009 included:
In February 2008, VimpelCom Group completed purchase of 100% of Golden Telecom,
Inc. with full integration expected by early 2009;
In May 2008, X5 Retail Group N.V. successfully raised US $1.03 bln in equity capital in
a fully-subscribed rights offering, with Alfa Group taking up its full pro-rata share of
the offering;
In June 2008, X5 Retail Group N.V. purchased 100% of Karusel, a large chain of
hypermarkets operating in Russia giving X5 Retail Group N.V. immediate and significant
presence in the fast-developing hypermarket segment of St. Petersburg and Moscow;
In October 2008, VimpelCom Group completed purchase of 49.9% of Euroset, Russia’s
largest mobile handset retail chain;
In October 2008, Altimo refinanced a US $2 bln loan with Vnesheconombank;
In November 2008, Alfa-Bank Russia purchased a controlling stake in Severnaya Kazna,
a distressed regional bank operating in the Urals region of Russia;
In January 2009, Alfa Group, together with Access-Renova signed an agreement with
BP plc resolving our disagreements with BP plc in respect of the governance,
management and strategy of TNK-BP;
In January 2009, Alfa-Bank Russia received a 10-year, unsecured RUR 10.2 bln loan from
Vnesheconombank;
In March 2009, VimpelCom Group received RUR 8 bln and US $250 mln loan from
Sberbank;
In May 2009, VimpelCom Group launched operations in Cambodia under “Beeline” brand
via its subsidiary Sotelco Ltd.;
4
In July 2009, VimpelCom Group launched operations in Vietnam under “Beeline” brand
via GTEL-Mobile Joint Stock Company;
In September 2009, VimpelCom Group signed an agreement for the acquisition of a
78% stake in Millicom Lao Co., Ltd., a mobile telecom operator in Laos;
In October 2009, Altimo and Telenor ASA announced an agreement to combine their
common assets in VimpelCom Group and Kyivstar GSM to create a leading emerging
markets mobile operator, VimpelCom Ltd., and to suspend, withdraw or settle all ongoing
legal proceedings between one another;
In October 2009, Alfa-Bank Russia received an 11-year, subordinated RUR 29.3 bln loan
from Vnesheconombank;
In October 2009, Altimo refinanced a US $1.5 bln loan with Vnesheconombank;
In November 2009, Altimo and TeliaSonera announced an agreement to combine their
common assets in Turkcell and MegaFon to create a leading emerging markets mobile operator,
and to resolve all ongoing legal disputes between one another and С̧ukurova Group.
While no one knows exactly how the worldwide financial crisis will unfold, and when
investor and consumer confidence will be restored, we are certain that opportunities will
emerge from the market dislocations that are now taking place – specifically in the areas
of market consolidation and attraction of talent. Furthermore, we are adamant that our
companies use the current slowdown in business to focus on improving operational and
financial efficiencies and risk-management. We believe strongly in the future of each
of our companies as they are without exception, well managed, fundamentally sound
businesses which are leaders in their respective fields. While the excesses of the past
continue to be purged from the system and while investors, consumers and the
markets at-large continue to search for a new equilibrium Alfa Group and its
companies will persevere and protect against a deep and protracted downturn and
will capitalize on the very best opportunities which will present themselves.
Mikhail Fridman
17 November 2009
5
ALFA GROUP’S PRINCIPAL
HOLDINGS
Alfa Group Consortium is one of Russia’s largest privately owned financial-industrial investment conglomerates, with interests in
oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, media,
water supply and waste disposal, as well as other industrial-trade and special-situation investments. Alfa Group typically
focuses on value-oriented, longer-term opportunities, primarily in Russia and the CIS, but also invests in other markets which
form part of Alfa Group’s strategic business objectives.
Alfa Capital
Includes Alfa Capital Management (“ACM”) and
Alfa Capital Partners (“ACP”). ACM manages
investment portfolios of publicly traded debt and
equity securities. ACP manages private equity
and real estate investments.
Alfa-Bank
One of Russia’s largest privately
owned banks with significant
presence in Ukraine, Kazakhstan,
Belarus and the Netherlands. Wide
range of financial services, including
commercial and investment banking,
trade finance, and asset management.
TNK-BP
A major Russian vertically integrated
oil and gas company.
А1
Proprietary and for-client investment
in Russia, the CIS and other developing
markets.
AlfaStrakhovanie Group
Leading issuer of non-obligatory
insurance in Russia.
CTC Media, Inc.
One of the largest commercial
television broadcasters in Russia
offering entertainment programming.
Rosvodokanal Group
Regional leader in water-supply and
waste disposal operating in Russia and
Ukraine.
VimpelCom
Leading wireless telecommunications service company in Russia with presence
in Kazakhstan, Ukraine, Tajikistan, Uzbekistan, Georgia, Armenia, Vietnam and
Cambodia. Listed on US NYSE.
MegaFon
3rd largest wireless telecommunications service company in Russia.
Altimo
One of the largest private investors into
wireless and fixed-line telecommunications
companies in Russia, the CIS and other
promising emerging markets.
Kyivstar
Leading wireless telecommunications service company in Ukraine.
Turkcell*
Leading wireless telecommunicatios service company in Turkey. Listed on Turkish
IMKB and US NYSE.
Perekrestok
Leading chain of supermarkets in Moscow and other population centers in Russia
and the CIS.
X5 Retail Group N.V.
Largest food retailer in terms of sales in
Russia. Listed on London Stock Exchange.
Pyaterochka
Leading food retailer in Russia with a dominant position in the high-growth
discounter segment.
Karusel
The fifth largest hypermarket operator in Russia by revenue.
* Investment in Turkcell is managed by Altimo and is owned by Alfa Finance Holdings S.A.
6
ALFA GROUP FINANCIAL
HIGHLIGHTS
millions of USD
Total Assets
Cash and Cash Equivalents
Investments in Joint Ventures, Associated
Companies and Investments Available for
Sale and Repurchase Receivables related
to Investments Available for Sale
Long-term Funding
(1)
Shareholders’ Equity (2)
Profit (2)
Dividends Paid
(2)
2008
2007
2006
2005
2004
51,950
49,668
32,195
20,257
14,279
4,465
3,116
1,989
974
1,218
13,957
17,132
10,217
6,904
3,839
5,318
5,425
3,308
1,441
428
11,640
14,463
9,392
6,864
5,291
2,190
1,669
1,664
1,417
839
–
19
120
150
—
Source: Annual audited IFRS financial statements of Alfa Group Consortium.
(1)
(2)
Includes non-current: borrowings, customer accounts and due to banks.
Amount attributable to majority shareholders (excludes non-controlling interest).
Return on Shareholders’ Equity
Dividend Payout Ratio
2008
2007
2006
2005
2004
16.8%
14.0%
20.5%
23.3%
16.9%
—
0.01
0.07
0.11
—
Debt to Equity Ratio (1) (2)
0.34
0.29
0.34
0.21
0.08
Debt to Total Assets Ratio (1)
0.10
0.11
0.10
0.07
0.03
Source: Derived from annual audited IFRS financial statements of Alfa Group Consortium.
(1)
(2)
Debt for purposes of this calculation is equivalent to Long-term Funding.
Equity for purposes of this calculation is Total Shareholders’ Equity (includes non-controlling interest).
Note: Audited, combined 2009 results expected to be available in October 2010.
7
SUPERVISORY BOARD
OF ALFA GROUP
The Supervisory Board of Alfa Group is the main consultative body of Alfa Group.
Mikhail Fridman
Chairman of the Supervisory Board of Alfa Group Consortium
Mr. Fridman is an original founder of Alfa Group Consortium, one of Russia’s largest privately owned financialindustrial conglomerates. Mr. Fridman also serves as Chairman of the Board of Directors of TNK¬BP and is
a member of the Board of Directors of VimpelCom and the Supervisory Board of X5 Retail Group N.V. Mr.
Fridman is a member of the Board of Russian Union of Industrialists and Entrepreneurs and the
International Advisory Board of the Council on Foreign Relations (USA). He graduated from the Moscow
Institute of Steel and Alloys in 1986. Mr. Fridman was born in Lvov, Ukraine in 1964.
German Khan
Executive Director of TNK-BP
Mr. Khan is an original founder of Alfa Group Consortium. Mr. Khan is Executive Director and a member of
the Management Board of TNK-BP Management. Mr. Khan is also a member of the Board of Directors
of Slavneft and Alfa Finance Holdings S.A. (oil and financial assets). Mr. Khan graduated from the Moscow
Institute of Steel and Alloys. He was born in Kyiv, Ukraine in 1961. He is married and has three children.
Alexey Kousmichoff
Chairman of the Advisory Committee of A1
Mr. Kousmichoff is an original founder of Alfa Group Consortium, Chairman of А1, a member of the Advisory
Committee of Altimo, and a member of the Board of Directors of Alfa Finance Holdings S.A. (oil and financial
assets). Mr. Kousmichoff is a graduate of the Moscow Institute of Steel and Alloys. Mr. Kousmichoff was born
in Kirov, Russia in 1962.
8
Petr Aven
President of Alfa-Bank Russia
Mr. Aven is President of Alfa-Bank Russia, where he is responsible for the Bank’s overall strategy and relations
with business and government leaders in Russia and abroad. Prior to joining Alfa-Bank Russia in 1994, Mr. Aven
was Minister of Foreign Economic Relations for the Russian Federation (1991-1992), serving as Russia’s
representative to the Group of Seven, and conducting a number of high-level trade and economic missions
to Western capitals. An economist by training, Mr. Aven spent several years at the International Institute for
Applied Systems Analysis in Laxenburg, Austria (1989-1991). Currently, he is Chairman of the Board of Directors
at AlfaStrakhovanie Group, Co-Chairman of the Board of Directors of CTC Media, and a trustee of the Board
of the Russian Economic School, the center for Economic Policy Research (CEPR) in Great Britain, and
of Eisenhower Fellowships. Mr. Aven is a member of the Board of the Competitiveness and Entrepreneurship
Council of the Russian Federation government, and a trustee of the Board of the National Association
for National Financial Reporting Standards. He is a professor at State University Higher School of
Economics. Since April 2006, he has been a member of the Board of the Russian Union of Industrialists
and Entrepreneurs. In 2007, Mr. Aven became Chairman of the Russia-Latvian Business Council. He graduated
from Moscow State University in 1977 and holds a PhD in Econometrics. Mr. Aven was born in Moscow, Russia
in 1955.
Andrei Kosogov
Chairman of the Board of Directors of Alfa Asset Management and Chairman
of the Advisory Committee of Altimo
Since November 2005 Mr. Kosogov is Chairman of the Board of Directors of Alfa Asset Management and Chairman
of the Advisory Committee of Altimo and since 2003 he is a member of the Board of Directors of AlfaStrakhovanie
Group. Mr. Kosogov is also a member of the Board of Directors of Alfa Finance Holdings S.A. (oil and financial
assets) and from November 2005 through June 2009 he acted as Chairman of the Supervisory Board of AlfaBank Ukraine. Until May 2005 Mr. Kosogov was First Deputy Chairman of the Board of Directors of Alfa-Bank
Russia and Director of its Investment banking division. Mr. Kosogov graduated from the Moscow Power Energy
Institute in 1987. He was born in Sillamaё, Estonia in 1961.
Andrei Zemnitsky
President of A1
Mr. Zemnitsky serves as President of A1 where he is responsible for overall strategic business development.
From 1998 to 2000 he was an advisor to the World Bank (IBRD), dealing with international trade in financial and
telecommunication services. From 2000 to 2002 he was a Vice-President of the Investment Banking Directorate
at the Russian Investors Company, participating in a vast number of M&A and consulting projects. In 2003
Mr. Zemnitsky served as Deputy Director of the Business Development Department at VimpelCom where he
was responsible for the development and implementation of VimpelCom’s acquisition strategy in Russia and
across the CIS. From 2003 to 2005 Mr. Zemnitsky was a Project Manager at Alfa Group Corporate Center, where
he held responsibility for the strategic and investment planning processes of the Group companies and provided
expert counsel to Alfa Group companies regarding merger and acquisition activities. From 2005 until July 2009
he served as Vice-President and Senior Vice-President in the Business Development Department at Altimo.
Mr. Zemnitsky holds a Masters Degree in Economic Theory and also is a candidate of economic science at the
State University – Higher School of Economics in Moscow. He was awarded a CFA designation in 2004 and is one
of the founders of CFA Association (Russia). He was born in Novosibirsk, Russia in 1976.
9
Alexander Fain
General Director of A1
Mr. Fain graduated with honours from the Moscow Institute of Chemical Engineering, Engineering Department in
1958. From 1958 until 1988 he was involved in a number of innovative engineering projects. Mr. Fain is the author
of more than 70 scientific articles, manuals, books, monographs, and patents. He also holds the honorary title
of active member of International Academy of Sustainable Development and holds a candidate’s degree and is a
professor in the field of applied mathematics. Mr. Fain is often cited by the leading Russian business periodicals
as one of the most influential businessmen in Russia. He was born in Moscow, Russia in 1936.
Lev Khasis
Chief Executive Officer and Chairman of the Management Board of X5 Retail Group N.V.
In 1989 Dr. Khasis graduated from the Kuybyshev Aviation Institute, faculty of aircraft construction and in 1995
from the Financial Academy of the Government of the Russian Federation, Faculty of banking. In 2001 he
graduated from the University of the Ministry of the Interior, Faculty of law. Dr. Khasis holds a PhD in technical
sciences, law and economics. From 2001 until 2003 Dr. Khasis served as Chairman of the Board of Directors
of Trade House TsUM. From 2003 until 2004 Dr. Khasis was Chairman of the Board of Directors of Trade
House GUM. Dr. Khasis also held the position of Chief Executive Officer of JSC Samara Trading House and
Chairman of the Board of Directors of Perekrestok Group of Companies. After the merger of Perekrestok and
Pyaterochka in 2006, he was appointed CEO of X5 Retail Group N.V., Alfa Group’s retail holding company, which
includes Pyaterochka, Perekrestok and Karusel. Since February 2008 Dr. Khasis also serves as the Chairman of
the ACORT (Association of Companies of Retail Trade), and also is a founding member of investment company
Fosbourne. Dr. Khasis was born in Kuybyshev (now Samara), Russia in 1966.
Alexei Reznikovich
Chief Executive Officer of Altimo
In 2002 Mr. Reznikovich joined the Supervisory Board of Alfa Group, where he was responsible for strategic asset
management. In June 2005 he was appointed Chief Executive Officer of Alfa Telecom (later re-named Altimo). In
June 2008 he was elected Chairman of the Board of Directors of VimpelCom. From 1993 to 2000 Mr. Reznikovich
worked in consulting company McKinsey & Co. In 2001 he became the founder and General Director of the internet
cafe network Cafemax (Russia). Mr. Reznikovich is a graduate of the Moscow State University, Economics Faculty
and received his MBA from both Georgetown University (USA) and INSEAD (France) in 1993. Mr. Reznikovich was
born in Moscow, Russia in 1968.
Petr Zolotarev
CEO of Rosvodokanal Group
Mr. Zolotarev is CEO of Rosvodokanal Group. Previously Mr. Zolotarev served as Chairman of the Board of
Directors of JSC “GAZ”, and also served as a member of the Board of Directors of JSC “Aviacor– Aviation Works”
and JSC “Military-Industrial Company”. He also was General Director of JSC “Russian Machines”, was the
interim President of Oxidental Petroleum CIS, and was the President of YUKOS PM. From 2007 to 2009 Mr.
Zolotarev was General Director and Chairman of the Board of Directors of the Russian-Dutch tire holding AmtelVredestein. He graduated from the Ordzhonikidze Moscow State Aviation Institute. Mr. Zolotarev received his
MBA in Finance at the Plekhanov Russian Academy of Economics. He attended advanced training courses at
the Centre of Advanced Training with the All-Union Academy of Foreign Trade and at the International Institute
for Management Development (Switzerland). Mr. Zolotarev was born in Moscow, Russia in 1965. He is married
and has two sons.
10
Nigel Robinson
Director of Corporate Development, Finance and Control – Alfa Group
Mr. Robinson joined Alfa Group in January 2000. His responsibilities include co-ordinating the financial control
and reporting of all Alfa Group companies and corporate governance for the Group as a whole. Prior to joining Alfa
Group, Mr. Robinson was Senior Manager in the Audit and Business Advisory Group at PricewaterhouseCoopers
and spent 6 years with PwC in Moscow and St. Petersburg. Mr. Robinson is a British qualified Chartered
Accountant and a member of the Institute of Chartered Accountants in England and Wales. He was born in
Corringham, England in 1967.
Vladimir Ashurkov
Director of Group Portfolio Management and Control – Alfa Group
Mr. Ashurkov joined Alfa Group in 2006. His responsibilities include analysis and coordination of investment and
strategic plans of Alfa Group companies. Prior to joining Alfa Group, Mr. Ashurkov worked as Vice-President
of Strategic Development at Industrial Investors Group. In 2003–2004, he established and became the General
Director of the Russian office of one of the leading European transport and logistics consultancies, TransCare.
From 1997 to 1999, Mr. Ashurkov worked at Renaissance Capital in the Investment Banking Department. From
1999 to 2001, he served as Chief Financial Officer of St. Petersburg Seaport. From 2001 to 2003, Mr. Ashurkov
served as a President of National Container Company. In 1996 Mr. Ashurkov received his MBA at Wharton
Business School of the University of Pennsylvania. He also graduated from the Moscow Institute of Physics and
Technology, Faculty of Physical and Quantum Electronics. He was born in Moscow, Russia in 1972.
11
ALFA GROUP’S INVESTMENT
PHILOSOPHY
We rely on our investment philosophy to generate superior returns for our shareholders
over the long term, to promote sound corporate governance and business practices, and
to benefit our partners, counterparties, employees, the Russian consumer and society at
large.
• We are opportunistic investors.
Simply stated, we are value-oriented investors. In evaluating any investment opportunity,
our investment philosophy is driven by the opportunity to purchase assets that, due to
perceived risk, low liquidity, disinterest or a lack of understanding on the part of market
participants, are undervalued.
• We believe the most attractive opportunities are in world emerging markets.
Much of our past success has been the result of our comprehensive knowledge and
understanding of emerging markets, in particular, the Russian and CIS markets. We
believe there are still substantial opportunities in the world’s emerging markets and that
we are well placed to take full advantage of them.
• We typically take a longer-term view, in order to realize the full potential of our
investments.
We do everything necessary to develop our investments, thus making them more
attractive to a potential buyer. While we do not particularly welcome the inflexibility
of being wed to an investment for the longer term, we lower our risks by seeking
undervalued investments that provide ample down side protection and, when possible,
interim cash flows.
• We view co-operation with foreign investors and the attraction of foreign capital
as important to the development of our companies.
Foreign investors provide not only capital investment, but also the expertise which is
needed to successfully develop and realize the full value of our investments. We know
from experience that the failure to attract longer-term foreign investment will result in
under-developed assets and missed business opportunities. Also, with regard to exit
strategy, sale to foreign investors provides us with a logical and attractive means of exiting
our investments.
12
•
First and foremost we are investors, not business managers.
Companies of Consortium are independent entities and are given fairly wide latitude
to conduct their affairs. We do, however, actively advise and take decisions on
important strategic matters that have an impact on the shareholder value of our
companies. We also continually evaluate management and measure the financial
performance of our investments.
• We are guided by the philosophy of investing in only those companies that are
leaders in their respective fields of business.
We require those in which we invest to be one of the top three in their business field or
with a clear potential to become one of the top three within a reasonable period. Where we
see that our investments are not meeting this criterion, we take active measures to divest
and free up our financial and management resources for more effective investments.
13
ALFA-BANK
Alfa-Bank Russia
Founded in 1990, Alfa-Bank Russia has developed rapidly to become one of Russia’s
largest privately owned banks in terms of equity, assets, branches, and retail deposits
and is overall, Russia’s sixth largest bank in terms of assets and fourth in terms of loan
portfolio. As a universal bank, Alfa-Bank Russia is present in all key sectors of the financial
industry with the following core business lines: corporate banking (including SME), retail
banking (including branch banking, consumer finance, auto and mortgage lending) and
investment banking. Alfa-Bank Russia’s clear business strategy, its analysis of market
and operational risks, combined with the ability to execute set goals and objectives, has
further strengthened its position as a leading Russian bank.
Alfa-Bank Russia’s has a mix of Western and Russian management which successfully
combines international standards of business and corporate management with deep
knowledge and expertise in the Russian market. Its franchise is supported by an extensive
distribution platform with multiple delivery channels, including in-person service through
branches and offices, and ATMs spread across Russia and the CIS, as well as remote
access through internet and phone banking.
Alfa-Bank Russia’s corporate and retail client base has grown considerably during the last
several years – by 31 December 2008 Alfa-Bank Russia served approximately 56,000
corporate and 3.5 mln retail customers, while the branch network has been extended
to 364 offices across Russia and abroad, including subsidiaries in the Netherlands and
Kazakhstan. In addition to banking, Alfa-Bank Russia has FSA, CySEC and FINRAregulated brokerage subsidiaries, and presence in Cyprus, London and New York.
Alfa-Bank Russia’s creditworthiness is one of the highest among Russian private
banks. Currently, Alfa-Bank Russia’s ratings are Moody’s – Ba1 with stable outlook, and
Standard & Poor’s – BB- with stable outlook. In March 2007, Alfa-Bank Russia became
the first bank in Russia to be assigned a BBB which is a bank survivability assessment by
the international rating agency Standard & Poor’s.
14
As one of the top recognized brands in the Russian banking industry, in 2008 AlfaBank Russia proved once again its leading position by winning numerous awards
– among which included Best Domestic Bank 2008 by Global Finance, best bank in
the ”Customer Impressions of Retail Banking in Russia” based on a survey conducted by
PricewaterhouseCoopers and Senteo GmbH and national ”Super Brand of the Year” by
Superbrands International.
In December 2008 Alfa-Bank Russia strengthened its presence in the Urals, one of
the most industrially developed regions of Russia, by acquiring a controlling stake in
the leading bank Severnaya Kazna. Severnaya Kazna’s customers, both corporate and
retail, will have access to all products offered by Alfa-Bank Russia, most of which are
unique not only in the region, but in the Russian banking market as a whole.
Key Highlights – Alfa-Bank Russia*
2008
Total Assets, billion US $
2007
2006
27.0
22.7
15.2
230.1
253.5
190.3
2.2
1.9
1.3
Loan Portfolio, billion US $
19.2
15.0
9.5
Customer Accounts, billion US $
12.6
12.2
7.9
Number of Branches
364
303
229
15,056
12,560
11,252
Net Profit, million US $
Total Equity, billion US $
Number of Personnel
Source: Alfa-Bank Russia audited IFRS financial statements or company data.
* Includes results of Alfa-Bank Kazakhstan and ATB.
15
Alfa-Bank Ukraine
Alfa-Bank Ukraine, is a privately owned bank ranking among the top-ten largest banks
in Ukraine, was registered in Ukraine in January 2001. Alfa-Bank Ukraine operates in all
key sectors of the banking sphere.
The Bank enjoys recognition as a financial institution with a solid reputation, one
that offers reliable, convenient and innovative banking services to its customers. This
combination of international business standards and deep knowledge of the Ukrainian
market gives Alfa-Bank Ukraine a unique advantage.
The Bank’s key positions in the Ukrainian banking sector were recognized by numerous
ratings and surveys. As the result of the successful development and implementation of
new retail deposit products and services, the Bank won “The Best Deposits Program”
based on a survey conducted by the International Research Agency “InMind”. Following the
results of 2008, a national rating agency “Expert-Rating” assigned the Bank the highest
possible A+ financial strength rating. The Bank has been assigned rating by international
rating agency Standard & Poor’s.
Alfa-Bank Ukraine standalone IFRS financial statements are audited by PricewaterhouseCoopers.
Key Highlights – Alfa-Bank Ukraine
2008
Total Assets, billion US $
2007
2006
3.8
2.6
1.2
Net Profit, million US $
35.6
11.8
1.6
Total Equity, billion US $
0.4
0.3
0.1
Loan Portfolio, billion US $
3.1
2.3
1.0
Customer Accounts, billion US $
1.4
0.8
0.5
77
39
10
Number of Branches
• Standard offices
Source: Alfa-Bank Ukraine audited standalone IFRS financial statements or company data.
16
Amsterdam Trade Bank N.V. (“ATB”)
Amsterdam Trade Bank N.V. (“ATB”) was incorporated in October 1994 in Amsterdam,
the Netherlands, and holds a full banking license from the Dutch Central Bank. In March
2001, Alfa-Bank Russia acquired a 100% interest in ATB. ATB provides a wide range of
banking services, to a range of corporate clients with a particular focus on trade finance
involving Russia, other CIS countries and the European Union. ATB also facilitates foreign
direct investment in Russia and the CIS.
Alfa-Bank Belarus
In June 2008, a controlling stake in Mezhtorgbank, one of the leading banks in
Belarus, was acquired.
Alfa-Bank Kazakhstan
Alfa-Bank Kazakhstan was established in December 1994 and has become one of the most
reliable and progressive banks in Kazakhstan. It is a full-service bank which guarantees
high quality and timely services to corporate and individual clients. Alfa-Bank Kazakhstan
prioritises fast and high quality financial flows between Russia and Kazakhstan. The Bank,
the head office of which is located in Almaty, has a branch in Astana as well as three
representative offices in Karaganda, Ust-Kamenogorsk and Ekibastuz.
Presence of Alfa-Bank and its Affiliates
USA
GREAT BRITAN
BELORUSSIA
NETHERLANDS
UKRAINA
KAZAKHSTAN
CYPRUS
Alfa Capital Markets – London;
Alfa Capital Holdings (Cyprus) Ltd. – Nicosia;
Alfa Capital Markets Inc. – New York;
Amsterdam Trade Bank N.V. – Amsterdam
For more detailed information please refer to Alfa-Bank web-site: www.alfabank.com
17
ALFA CAPITAL
Alfa Capital Management
Established in 1996, Alfa Capital Management (“ACM”) is one of the largest professional
companies operating on the Russian asset management market. ACM’s main lines of
business include asset management of mutual investment funds, non-state pension
funds, insurance company and corporate funds, fund-of-fund funds, and individual trust
asset management of major private investors.
Alfa Capital Management at a Glance
Well-established and reputable partner grounded on a diversified and growing portfolio
of profitable businesses (mutual funds, pension funds, trust management, offshore
funds);
•
• Proven,
multinational team with deep experience in both emerging and OECD
(Organization for Economic Cooperation and Development) capital markets;
• ACM product range encompasses 22 mutual investment funds (including equity, debt,
index, sector-specific, specialized funds, and a hedge fund);
• ACM manages the funds of 21 non-state pension funds and the funds of 23 insurance
companies;
• Assets under management: US $1.4 bln (at 30 November 2009);
• ACM was awarded AAA rating (maximum reliability rating) from National Rating
Agency and A++ (exceptionally high/highest level of reliability and service quality) from
the Russian Rating Agency Expert RA.
ACM’s Assets Under Management on 31 December 2008
1%
3%
40%
Mutual investment funds
State funds
4%
Institutional clients
5%
Pension assets (without PFR
(Pension Fund of Russia))
Corporate clients
8%
Individual trust accounts
International funds
9%
30%
For more detailed information please refer to Alfa Capital Management web-site: www.alfacapital.ru
18
Non-state pension funds own assets
Alfa Capital Partners
Alfa Capital Partners (“ACP”), a private equity and real estate investment advisory
company, established in 2003, advises funds that invest in leading companies and real
estate properties in Russia, Ukraine and the CIS. International institutional and private
investors from North America, Europe, Asia and Middle East, multilateral institutions
(EBRD, IFC) as well as Alfa Group Consortium, have committed US $655 mln in the capital
to three funds under ACP’s management.
Each of the Funds has a distinct investment strategy with a dedicated management team
of results-driven experts. Our years of experience, combined with our equity capital,
enable companies to grow and generate increased profitability.
Private Equity Fund
In February 2007, ACP closed Alfa Private Equity Partners, L.P. (the “Private Equity Fund”)
with commitments of US $200 mln. The Private Equity Fund’s investment strategy is to
provide equity capital to companies which are deemed to be emerging leaders in the new
economy in Russia, Ukraine and the CIS. The Private Equity Fund made its first investment
in February 2006, acquiring a stake in Russia’s leading chain of upscale fitness clubs,
World Class. In 2007, the Private Equity Fund made three investments: entering Russia’s
fast-growing auto market through the Independence Group, launching a mortgage
business, IpoTek Bank, and acquiring a popular mid-market Russian cuisine restaurant
chain Elki-Palki.
Infrastructure Fund
Alfa Capital Partners entered and was instrumental in relaunching the US $180 mln Great
Circle Fund in April 2005. Alfa Group Consortium is an investor, and ACP is the regional
manager of the Great Circle Fund. With sponsorship from the US Government’s Overseas
Private Investment Corporation, the Great Circle Fund’s mandate is to invest in maritime
transportation, transportation infrastructure and logistics in Russia, Ukraine, Central
Asia, Central and Eastern Europe, the Baltic States and Turkey.
Real Estate Fund
The Marbleton Property Fund, L.P. (the “Marbleton Fund”) was set up as a joint venture
between ACP and JER Partners, a leading international real estate private equity firm
based in Virginia, USA. In June 2007, the Marbleton Fund closed with equity commitments
of US $275 mln from institutional investors in the United States, Canada and Europe.
The Marbleton Fund pursues investments in real estate opportunities in Russia,
Ukraine and the other CIS countries. In 2007, the Marbleton Fund made investments in
partnership with developers and on a standalone basis in Russia, Ukraine and Georgia
totaling approximately US $100 mln. These investments include a suburban office park
development in Moscow, the acquisition of two trade centers DIY in St. Petersburg and a
pre-IPO investment in one of the leading Georgian development companies.
For more detailed information please refer to Alfa Capital Partners web-site: www.alfacp.ru
19
ALFASTRAKHOVANIE GROUP
With more than 380 offices and branches across Russia, AlfaStrakhovanie Group today
(“Group”) is one of the largest Russian insurers with a diversified portfolio of services
comprising both comprehensive business insurance coverage and an extensive range of
retail insurance products.
Clients
AlfaStrakhovanie Group has built its relationships with customers on principles of
equal partnership and mutually advantageous cooperation. The principal customers of
the Group are top domestic banks, major ship owners and forwarders, nuclear power
plants, metal and engineering plants, as well as representative offices of the largest
foreign companies, public and governmental agencies and institutions as well as individual
clients. Today, the Group’s customers number approximately 1.5 million individuals and
more than 100,000 companies.
Products
AlfaStrakhovanie Group has an immense experience in working with enterprises and
institutions of various types and calibers. The Group provides complex individual, tailored
insurance programs for corporate customers, taking into account the business specifics
of each customer. Insurance products offered to the corporate customers include property
insurance, cargo insurance, motor insurance, health insurance for employees, liability
and financial risks insurance. The Group successfully markets a wide scope of products
to private individuals including compulsory motor third-party liability insurance, motor
insurance, property insurance, life insurance, travel insurance, mortgage insurance and
accident insurance.
Reinsurance
Alfastrakhovanie Group has long-term relations with the largest reinsurance corporations
in the world (Munich Re, Swiss Re, Hannover Re, Gen Re, Partner Re, SCOR, Lloyd’s
of London) and in Russia and can quickly and reliably reinsure almost any risk in both
the Russian and international insurance markets.
Reliability
AlfaStrakhovanie Group has the highest rating of reliability (A++) from Russian rating
agency “Expert RA”. Additionally, at the end of April 2009, AlfaStrakhovanie Group won the
award “Financial Olymp” in the category “Client Service”.
20
Key Highlights – AlfaStrakhovanie Group
Over the past few years AlfaStrakhovanie Group has strengthened its position in
the Russian insurance market:
2008
2007
2006
Premiums collected, mln US $
761
407
320
Total Insurer’s Liability, mln US $
526
268
117
2,257,080
1,464,537
880,353
Number of contracts concluded, in units
Structure of AlfaStrakhovanie’s Insurance Portfolio 2008
0.1%
2.2%
70.2%
2.6%
9.9%
Property Insurance
Personal Insurance
Compulsory Motor Third-Party
Liability Insurance
Life Insurance
Liability Insurance
Other Obligatory Insurance Except
Compulsory Medical Insurance
15.0%
For more detailed information please refer to AlfaStrakhovanie Group web-site: www.alfastrah.ru
21
TNK-BP
TNK-BP is one of the largest vertically integrated Russian oil and gas companies which
was created in August 2003, as the result of the merger of the Russian companies Tyumen
Oil Company (TNK), SIDANCO and ONACO with many of BP’s oil and gas assets in Russia.
The Company is owned and managed by BP (50%) and by Alfa Group Consortium (25%),
and Access Industries and Renova Group (25%). TNK-BP’s strategy is to build a worldclass company in Russia with a strong focus on efficiency, sustainability, renewal and
the introduction of new technologies. Another of TNK-BP’s goals is to substantially develop
its gas resources and build a successful long-term gas business. The same shareholders
also own close to 50% of Slavneft, a vertically integrated Russian oil company which is
currently managed as an independent company.
Upstream
TNK-BP controls a large and diversified exploration and production portfolio (more than
200 exploration and production licenses). The latest audit confirms that as of 31 December
2008, TNK-BP’s Total Proved Reserves 10.252 billion barrels of oil equivalent, applying
PRMS (formerly SPE) criteria. The Company’s upstream operations are located primarily in
West Siberia (Tyumen Region, including Khanty-Mansiysk and Yamalo-Nenets Autonomous
Districts), East Siberia (Irkutsk Region), and Volga-Urals (Orenburg Region). In 2008,
average daily oil production totaled 1.6 million barrels of oil equivalent per day (excluding a
50% interest of Slavneft).
Downstream
Based primarily in the European part of Russia and Ukraine, the Company’s downstream
operations cover the refining, logistics, marketing and sale of oil and oil products on
wholesale and retail markets. TNK-BP operates five refineries in Russia and Ukraine
(Ryazan, Saratov, Nizhnevartovsk, Nyagan and Lisichansk (Ukraine)) and markets products
through a retail network comprising more than 1,400 service stations operating under
TNK and BP brands. Through its retail network, TNK-BP is among the market leaders in
petroleum product sales in European Russia, including Moscow, and is a market leader in
Ukraine. The TNK brand has recently undergone a makeover resulting in a new look for
the TNK retail sites. The goal was to create a distinct identity and position the brand in such
a way as to increase customer trust and loyalty.
Health, Safety and Environment (HSE)
TNK-BP considers HSE goals simply stated are: no workplace injuries, no accidents and
mitigation of adverse impact on the environment. TNK-BP spends more than US $190 mln
annually on reducing operational injuries and mitigating the negative impact of its operations on
the environment as well as upgrading its existing infrastructure. Major initiatives have included:
• a five-year Pipeline Integrity Management program which has been in effect since 2004
to reduce the number of leaks from the Company’s pipelines;
• since 2005 a program to remediate legacy pollution and decommission old pipes has
22
been in place with over 1,700 hectares of land having been completely remediated and
handed over to the relevant authorities.
Corporate and Social Responsibility
TNK-BP is a Russian company, and it strives to be a responsible corporate citizen of
Russia and Ukraine. The Company considers it vital to contribute to a raising the level
of national competitiveness, assist the social and economic development of the regions
in which it operates and be a reliable partner to the government authorities and public
organizations in creating a stable and prosperous social environment. TNK-BP is one of
the largest Russian taxpayers. From inception through end 2008 the Company contributed
approximately US $90 bln to budgets at all levels.
TNK-BP at a Glance
• 145 producing oil and gas fields
• 1,400 service stations
• 63,000 employees in Russia and Ukraine
• 1.6 mln barrels of oil equivalent per day – production in 2008*
• 640 thous. barrels average daily refining throughput in 2008
• US $4.4 bln capital investment in 2008
• US $90 bln contributed in taxes, duties and excises to Russian budgets at all levels
from inception through end 2008
• 8.112 bln barrels of SEC proven oil and condensate reserves **
• 10.252 bln barrels of PRMS proven oil and condensate reserves **
• 82% and 146% proven reserves replacement ratios, for SEC and PRMS, respectively**
* Excluding a 50% interest in Slavneft.
** On 31 December 2008.
23
Upstream and Refinery Assets
*
Greenfield
Brownfield
Ukraine
Volga Federal District
Central Federal District
Gas projects
Siberian Federal District
Refinery assets
Northwestern Federal District
Urals Federal District
Southern Federal District
Far Eastern Federal District
*Developed jointly with Gazprom Neft'.
For more detailed information please refer to TNK-BP web-site: www.tnk-bp.com
24
A1
A1 is one of the leading players on the direct investments market in Russia and the CIS
making equity investments in various industries, pursuing the interests of its shareholders,
clients and partners. A1 focuses on investment projects of two types: special situations
and growth strategies. A1 has in the past, and will continue to be, an incubator for some of
Alfa Group’s most significant investments (including Alfa-Bank Russia, TNK, VimpelCom,
Perekrestok, Rosvodokanal Group). A1’s experienced management team seeks to add
value to its investments by appointing high quality management, increasing transparency,
streamlining the corporate structure, and by securing rapid positive changes and
efficiencies.
Current Projects
Eurasia Cinemas
International film distribution and cinema chain
Consists of the largest cinema chain in North-West Russia Kronverk Cinema (13 cinemas
in 5 cities of Russia), and a leading Turkish cinema chain, AFM with 32 cinemas in 12
cities of Turkey (shares listed on IMKB, the Istanbul Stock Exchange).
Independence Group
One of the largest car dealers in Russia (Audi, BMW, Volkswagen, Land Rover, Jaguar,
Volvo, Mazda, Ford, and Peugeot brands)
A joint project of A1 and Alfa Capital Partners since initial investment in 2007. The shortterm plans include the establishment of alliances with other car dealers and increasing
the share of car services and spare parts sales.
Mining Investments
Mining projects
A1 is a portfolio investor in several publically traded mining companies including
Silver Bear Resources (Russian silver mining), Oxus Gold (Uzbekistani gold company).
Additionally, non-public mining projects include the extraction and processing of gold,
iron, chrome, platinum, tungsten, nickel and other rare-earth metals in Uzbekistan,
Tajikistan and in Cuba, Tanzania and Russia. Moreover, various recreation projects are
planned for development in the areas where these projects operate.
Belmarket
A supermarket chain in Belarus
In 2007 Belmarket was established to create a national chain of food stores in Belarus.
Belmarket uses the most popular soft discounter format, that is successfully used by,
the Russian discounter supermarket chain Pyaterochka (part of X5 Retail Group N.V.,
Russia’s largest food retailer in terms of sales). The International Finance Corporation
(IFC) is a co-investor in Belmarket.
25
Dynasty
Cottage community in Krasnodar Region, the Black Sea coast
Dynasty is a joint project undertaken with Seagate Group to construct one of the first large
villa complexes in Gelendzhik with its own infrastructure.
Other Projects
Alfa-Carbon
Consulting services under the Kyoto Protocol including sale of
greenhouse gas emission quotas
Avianova
Development of a Russian domestic low-cost airline
IVI-93
Real estate projects in St. Petersburg
A1 Ukraine
Several real estate development projects in Ukraine
Recently Completed Projects
Artel Starateley
Amur
Among the top five leading
producers of precious metals in
Russia
41% stake sold to
the Alliance Group
D Distribution
An exclusive distributor of
the world-class premium spirit
brands in Russia
25% stake sold to Diageo
Vladpivo
One of the largest beer producers in 97% stake sold to SAB
Prymorsky Region
Miller
Syabar
A leading beer producer in Belarus
For more detailed information please refer to A1 web-site: www.a-1.com
26
47% stake sold to
Heineken N.V.
ROSVODOKANAL GROUP
Rosvodokanal Group (RVK), the leading private operator of water supply and sewage in
the CIS, has been a 60-year leader in the municipal water industry in Russia. Since Alfa
Group’s investment, RVK has been reorganized into an inter-regional holding company,
which combines a national operating company, management companies operating local
water supply systems, and service engineering and construction companies of water
supply and sewage. Rosvodokanal Group has introduced an extremely promising publicprivate partnership model, attractive to both municipalities and investors. RVK’s business
model allows municipalities, being the owners of the enterprises, to move quickly to freemarket operation by recruitment of effective and professional management team.
RVK currently services more than 6.1 mln people and manages water supply assets
in Orenburg, Barnaul, Kaluga and Kaluga region, Krasnodar, Omsk, Tyumen, Tver and
Lugansk region (Ukraine). RVK continues to work towards expanding its operations both
in Russian and in other CIS countries.
Rosvodokanal Group became an attractive partner for well-known international investors.
In 2008, EBRD provided RVK a rouble denominated loan facility with RUR 1.5 bln (~ US $51
mln at the CBR exchange rate at 31 December 2008) limit with maturity in 2021. Also, in
2008 RVК successfully issued RUR 1.75 bln in bonds (~ US $60 mln at the CBR exchange
rate at 31 December 2008).
Rosvodokanal Group was the first company in its industry in Russia to prepare IFRS
financial statements and to conduct an international audit of its water supply systems.
In 2008 RVK was awarded Best Utilities Company in Krasnodar by Krasnodar city
administration. Also, in 2008 two enterprises of RVK (Krasnodar Vodokanal and
OmskVodokanal) won awards in All-Russian contest held by the Ministry of Regional
Development of the Russian Federation.
US $ mln
500
433
400
304
300
254
214
Revenue
200
100
89
Profit
79
6
3.7
19.9
2006
2007
2008
Total Assets
0
Source: Rosvodokanal audited IFRS financial statements.
For more detailed information please refer to Rosvodokanal Group web-site: www.rosvodokanal.ru
27
CTC MEDIA, Inc.
CTC Media, Inc. is a leading independent media company in Russia and is one of the twenty
largest public broadcasters in the world. It owns and operates three national networks,
the CTC network, the Domashny network and the DTV network. The Company’s common
stock is traded on the NASDAQ (trading symbol: “CTCM”).
CTC network
Domashny network
DTV network*
Launched
1996 (Russia)
2005 (Russia)
1999 (Russia)
Target Audience
All, 6-54 with focus on
younger audiences
Females, 25-60
All, 18+
Programming
Entertainment, serials
Health, family, career, style, Detective, action,
fashion, Russian films,
documentary, investigation,
foreign series
comedy
Audience Share**
11.8%
2.8%
1.8%
Potential Viewers
100 mln (appx)
64 mln (appx)
58 mln (appx)
Number of Owned and Operated
Stations
20
12
4
* DTV network acquired by CTC Media, Inc. in 2008.
** Average for the year 2008.
Production Companies
CTC Media, Inc. has created an in-house production and proprietary program rights
management function through the recent acquisitions of two production companies,
CostaFilm and Soho Media. By creating an in-house, proprietary program production
department, CTC Media, Inc. will retain tighter controls over programming costs while
more effectively managing the Company’s programming rights library.
28
Geographical Expansion
In 2007–2008, CTC Media, Inc. entered other CIS markets outside Russia through
acquisition of a majority effective interest in Channel 31 Group in Kazakhstan, registration
of a new broadcasting company in Uzbekistan and acquisition of a majority interest in
the broadcasting group Teledixi SRL and Music Ramil SRL in Moldova. CTC Media
Inc. continues to view the countries of the former Soviet Union as attractive strategic
opportunities. It plans to continue to execute on its expansion strategy by expanding
the reach of its brands to other markets in the CIS that are poised for robust growth and
where Russian content is a proven success with audiences.
Key Highlights – CTC Media, Inc.
2008
2007
2006
Total Operating Revenues, mln US $
640
472
371
OIBDA, mln US $
48*
220
174
Net Income, mln US $
22*
136
106
0.14*
0.86
0.69
Fully diluted earnings per share, US $
Source: CTC Media, Inc. audited US GAAP financial statements.
* OIBDA, Net Income and Fully diluted earnings per share include effect of intangible assets impairment of US $233 mln. Excluding the effects of this
impairment OIBDA, Net Income and Fully diluted earnings per share would have been US $280 mln, US $176 mln and US $1.11, respectively.
For more detailed information please refer to CTC Media, Inc. web-site: www.ctcmedia.ru
29
ALTIMO
Altimo is one of the leading investment companies with interests in Russia, the CIS, Turkey
and South Eastern Asia, operating in the field of mobile and fixed-line communications.
Through substantial stakes in five major telecoms companies, Altimo has a presence
in 11 Eurasian markets. Together, Altimo’s investee companies service more than 160
million mobile phone subscribers.
Altimo’s Strategy
Altimo focuses on three main strategic objectives: managing its existing asset portfolio;
entering new markets; and consolidating assets to create a leading telecom company
on the emerging markets of Eurasia. Altimo works with the senior management of
the companies in which it invests to unlock each company’s full potential and to increase
the value of its assets. Altimo does not plan to exit its investments in the medium-term.
Altimo is a financial investor and normally takes substantial minority positions in
companies which do not have a controlling shareholder. This form of balanced corporate
governance allows the management of the mobile operator to operate independently and
in the interest of all shareholders of the company.
Altimo is attracted by countries with large populations, low mobile penetration rates, a
high GDP growth rate and little competition. These criteria are met in Southern, Central
and South East Asia, where Altimo is actively seeking new investment opportunities.
Our Assets
VimpelCom Group (Beeline Trademark)
VimpelCom Group is one of the two largest mobile communications operators in Russia,
providing services under the Beeline trademark. VimpelCom’s GSM and 3G licenses cover
a territory with a population of about 340 mln people. Geographically it covers the whole
territory of Russia as well as the entire territories of Kazakhstan, Ukraine, Uzbekistan,
Tajikistan, Georgia and Armenia. In 2008 VimpelCom Group acquired licenses in Vietnam
and Cambodia. In November 1996, VimpelCom Group became the first Russian company to
be listed on the New York Stock Exchange (NYSE: VIP). As of September 2008, VimpelCom
Group’s total number of subscribers in Russia and the CIS was 76 mln people (registered
subscriber base as estimated by Altimo).
In September 2007 the VimpelCom Group announced a principal agreement to establish
a mobile telecommunications joint venture in Vietnam under the name of GTel Mobile. In
Q1 2008, the VimpelCom Group acquired 100% of the outstanding share capital of Golden
Telecom, a leading Russian alternative fixed-line operator.
As of 31 December 2008, Altimo owned 44% of the voting shares of the VimpelCom Group.
30
Kyivstar
Kyivstar GSM is the leading mobile communications provider in Ukraine. Kyivstar holds
licenses for the use of mobile, municipal, long-distance and international telephone
networks, as well as licenses for the construction and servicing of its own stationary
networks and data transmission network organisation. The company uses GSM 900/1800
standards. The company’s subscriber base exceeded 24 mln people by September 2008,
with its mobile coverage reaching 99% of the Ukrainian population. As of 31 December
2008, Altimo owned 43.48% of the outstanding share capital of Kyivstar GSM.
MegaFon
MegaFon is the third largest Russian GSM 900/1800/3G provider. The licensed GSM and
3G coverage of the company extends to 100% of the Russian population. The company
holds licenses to provide a wide range of mobile communications services, giving it a
major advantage over its competitors. MegaFon’s subscriber base by the end of 2008
exceeded 44 mln people. As of 31 December 2008, Altimo owned 25.1% of the outstanding
share capital of MegaFon.
Turkcell*
Turkcell Iletisim Hizmetleri A.S. began operating GSM mobile communication services
on the Turkish market in 1993 and is the current market leader. Turkcell is not only
the leading operator in Turkey, but is also the second largest GSM operator in Europe by
the number of subscribers, having 62 mln subscribers as of September 2008 (including
Fintur and Astelit). Turkcell’s activities in Azerbaijan, Kazakhstan, Georgia and Moldova
through Fintur, has increased the number of subscribers in these countries to 12.8 mln
people as of September 2008. Turkcell is also the majority shareholder in Astelit, the third
largest Ukrainian mobile telephone network operator. Turkcell is quoted on the Istanbul
Stock Exchange (IMKB) and the New York Stock Exchange (NYSE) since 11 July 2000. As
of 31 March 2009, Alfa Finance Holdings S.A., a company affiliated with Altimo, owned
4.99% in Turkcell.
* Owned by Alfa Finance Holdings S.A. and managed by Altimo under a management agreement.
Total Subscribers, mln
200
62
150
55
24
39
100
34
44
Turkcell
36
Kyivstar
50
76
MegaFon
3
0
VimpelCom
2003
2004
2005
2006
2007
For more detailed information please refer to Altimo web-site: www.altimo.org
31
2008
X5 RETAIL GROUP N.V.
X5 Retail Group N.V. (“Group” or “X5”) is Russia’s largest food retailer in terms of sales. X5
uses a multi-format strategy to simultaneously develop three formats: soft discounters,
supermarkets, and hypermarkets. The Group was created on 18 May 2006 as a result
of a merger between the leading national supermarket chain Perekrestok and one of
the largest Russian soft discounter chains Pyaterochka. In June 2008 the Group acquired
Karusel hypermarket chain and immediately established a leading position in the Russian
hypermarket segment. The Group’s shares are traded on the London Stock Exchange
(LSE) under the ticker “FIVE”.
X5 Retail Group N.V. Today
The Group today is the undisputed leader in the Russian food retail market and the largest
multi-format operator with significant regional presence. As of 31 December 2008,
X5 had 1,101 company managed stores located in Moscow, St.Petersburg and other
regions of European Russia, Urals and Ukraine, including 848 soft discounter stores, 207
supermarkets and 46 hypermarkets. As at 31 December 2008, the Group’s franchisees
operated 607 stores across Russia. In 2008 the Group’s consolidated Net Retail Sales
reached US $8.3 bln – 57% higher than in 2007. X5 total net trading area exceeded
874,032 m2 as at 31 December 2008 and its number of customer visits during 2008 totaled
over 816 million. More than 52,000 people work in the Group.
Strategy and Key Goals
The Group’s key strategic objective is to become the main consolidator of the Russian
food retail market and the absolute leader of Russian retail, able to compete with
leading international chains as an equal. The strategy relies on multi-format growth
and regional expansion from organic growth and M&A transactions, with a particular
focus on the fast-growing soft discounter segment. Investments into the development
of logistics infrastructure and IT-systems upgrade support the Group’s aggressive plans
of development and strengthen its competitive position in the long-term. The Group’s
overriding goal is to provide shareholders with the best return on investment in
the industry.
32
Number of stores as of 31 December 2008
Moscow & the Moscow region – 492;
St. Petersburg & North-West – 311;
Central – 35;
Volga-Vyatsky – 54;
Sredne-Volzhsky – 29;
Privolzhsky – 12;
Urals – 141;
South – 21;
Ukraine – 6.
TOTAL — 1,101
Key Highlights – X5 Retail Group N.V.*:
2008
2007
YOY Growth
Net Sales, mln US $
8,892
6,152
45%
Gross Profit, mln US $
2,279
1,611
41%
803
548
47%
EBITDA, mln US $
Number of customers, mln
Number of stores
816
646
26%
1,101
868
27%
* 2008 and 2007 numbers represent final pro-forma result for Pyaterochka, Perekrestok and Karusel.
For more detailed information please refer to X5 Retail Group N.V. web-site: www.x5.ru
33
SPONSORSHIP AND CHARITY
Serving Our Communities
Alfa Group and its companies are known for their multi-year tradition of charitable
activities and for the patronage of Russia’s historical, cultural and spiritual heritage. While
we aim to achieve leadership in all the businesses we operate, we strive not to lose sight
of the importance of giving back to the society and communities in which we do business.
Our policy is not to impose global social programs on our managers but to empower them
to decide what is right for their businesses and the local societies where they operate. So
while the challenges we address are global, such as education, culture, health, and the
environment, the emphasis given to each of these themes differs from region to region.
Through constant efforts to create the conditions for a flourishing society, we are also
laying the foundations for our own long-term success.
Humanitarian Activities
• Supermarket
chain “Belmarket” (A1 project) donated financial assistance to the
veterans of World War II, schools and hospitals in different regions of Belarus.
• Cinema chain “Kronverk Cinema” (A1 project) organized charitable movie screenings
for the veterans of the World War II and disadvantaged families.
• Alfa-Bank
Russia, AlfaStrakhovanie Group, TNK-BP, X5 Retail Group N.V. and
VimpelCom are partners of the Lifeline charitable program for helping severely ill
children. Foreign and Russian companies, and individuals donated more than US $6.7
million over the life of the program.
• AlfaStrakhovanie Group and VimpelCom rendered sponsor support to ”Podari Zhizn”
Fund to purchase necessary medicine for children.
• Within the “Care Time” charitable program all Karusel hypermarkets and Perekrestok
supermarkets provide a 5% discount for the veterans of World War II, retirees and
disabled people.
• Alfa-Bank Ukraine provided financial support to an orphanage in Vasilkov in the Kiev
region.
• TNK-BP rendered sponsor support to the veterans of World War II, families of the
military men killed in military conflicts and to vulnerable social groups.
• LLC “Tver Vodokanal” (subsidiary of Rosvodokanal Group) donated financial assistance
to the children’s rehabilitation center in Tver.
• LLC
“Krasnodar Vodokanal” (subsidiary of Rosvodokanal Group) jointly with the
Krasnodar city administration organized a party as part of City’s Day celebration.
• Within All-Russian campaign in honour of the Soviet Union heroes Alfa-Bank Russia
rendered financial assistance to the veterans in 35 cities of Russia. Each veteran was
presented a pharmaceutical certificate for healthcare products.
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• Alfa-Bank Russia organized a party in the Receptions House of the Ministry of Foreign
Affairs of Russian Federation as a part of the regular anniversary of the Soviet and the
American troops link-up on the Elbe in 1945.
• Within the “Christmas Miracle” charitable program Alfa-Bank Russia rendered sponsor
support to 23 orphanages and boarding schools in Russia.
• Alfa-Bank Russia, a sponsor of the charitable program “Help to Get Ready for School!”,
provided financial support to 20 orphanages in Russia.
• Within the charitable campaign “A Call to Brother-Soldier” VimpelCom and MegaFon
provided free calls to the veterans of World War II.
• VimpelCom within the Children’s Organization Program financed orphanages, boarding
schools, hospitals and 60 sponsored organizations.
• VimpelCom organized a charitable fair for disadvantaged children in Cambodia.
• Within the program aimed at overcoming the problem of social exclusion of elderly
single people, Kyivstar donated financial assistance to 11 geriatric centers in Ukraine.
• Within the “For People, for Country!” program Kyivstar provided financial assistance to
13 orphanages and boarding schools in Ukraine, and also within the frame of a social
adaptation program for disabled persons Kyivstar provided boarding schools with
sensory rooms for children suffering from cerebral palsy in seven cities of Ukraine.
• MegaFon rendered sponsor support to a rehabilitation center for disabled children in
Stavropol.
•MegaFon provided blind and visually impaired children with Braille books.
Education Support and Talent Development
• Alfa-Bank
Ukraine donated financial assistance to open Chair of Information
Technologies in the Eastern-European University of Economics and Management
(EEUEM) in Cherkassy (Ukraine).
• TNK-BP has contributed US $1.6 million to the first Russian business school in
Skolkovo in the Moscow region.
• TNK-BP
has contributed US $200 thousand to the Tzarskoselsky school in St.
Petersburg.
• X5 Retail Group N.V. within the framework of “Perekrestok to Schools!” program
equipped more than 659 schools in cities of Russia with 4,000 computers.
• Since 1995 Alfa-Bank Russia has financed the Alfa Chance Program. Within this
program gifted school graduates from different regions of Russia receive scholarships
to study at the best higher education institutions in Moscow and St. Petersburg.
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• Within the Alfa Fellowship program financed by Alfa-Bank Russia, young American
specialists undergo on-the-job training at private companies and state and public
institutions of Russia. The aim of this program is to promote and reinforce social and
cultural relations between Russia and the USA.
• Since 2003 Alfa-Bank Russia together with the Oxford Said Business School instituted
an award for Excellence in Foreign Investment in Russia. In 2009 McDonald’s in Russia
was the winner of this award.
• Top managers of VimpelCom within the “Third Generation” program teach students at
higher education institutions in Russia.
• VimpelCom
together with “Center for Creative Leadership” established foreign
business-school “Center for Creative Leadership in Russia”. The aim of this school is
to improve business-education in Russia.
• Kyivstar provided 47 talented Ukrainian students from nine technical universities with
individual scholarships.
• Within “Beeline – Support for Schools” VimpelCom provided disadvantaged Vietnamese
students with scholarships.
Support for Culture and National Legacy
• Alfa-Bank Ukraine rendered sponsor support to the new music project “Vnochi” by
a famous Ukrainian singer and composer Svyatoslav Vakarchuk.
• Within programs “Restoration of Cultural Heritage” and “St. Petersburg’s Facades”
TNK-BP since 2004 has supported the restoration of historical buildings in
St. Petersburg.
• LLC
“Orenburg Vodokanal” (subsidiary of Rosvodokanal Group) donated financial
assistance to establish a monument in honour of Orenburg soldiers killed in the
military conflicts.
• LLC “Krasnodar Vodokanal” (subsidiary of Rosvodokanal Group) rendered sponsor
support to the construction of the Orthodox Church in Krasnodar.
• Kyivstar rendered sponsor support to the National Academic Theater of Russian Drama
named after Lesia Ukrainka.
• Alfa-Bank
Russia sponsored a premiere of the Mariinsky Theatre conducted by
Valery Gergiev at Sadler’s Wells Theatre in London, also Alfa-Bank Russia sponsored
a national literary Big Book Prize.
• MegaFon became an official sponsor of Russian Fashion Week 2009 in Moscow.
• Alfa-Bank
Russia sponsored concerts of legendary rock groups “The Rasmus”,
“Kingdom Come”, “Alice Cooper” and “Scorpions” in Ekaterinburg and “Over The
Rainbow” in Omsk; a concert of famous opera singer Dimitri Hvorostovski in Tyumen
and Perm; a tour of Evgeny Grishkovets in Nizhny Novgorod.
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• MegaFon became a general sponsor of the “Future Depends on You. New Rules”
modern art exhibition in seven cities of Russia.
Sporting Initiatives
JSC “OmskVodokanal” (subsidiary of Rosvodokanal Group) rendered sponsor support
to the X All-Russian Sambo Championship in Omsk.
•
• Kyivstar organized a Football Championship for schoolchildren from 64 cities of
Ukraine.
• JSC “OmskVodokanal” (subsidiary of Rosvodokanal Group) provided financial assistance
to the basketball team of boarding school No16 in Omsk.
• MegaFon sponsored a Mini Football Championship for orphanages and boarding
schools in Moscow.
• X5 Retail Group N.V., a General Partner of the Russian Federation of Sport and an
Official Partner of the Russian National football team, has allocated US $14 million
to the construction of new football fields, supporting youth sport schools and talented
young athletes.
• MegaFon is an official sponsor of the state-owned “Sport” TV-channel and the Russian
Hockey Federation.
• MegaFon is the official sponsor of the Russian National Football Team from 2008–
2010.
• TNK-BP contributed US $8.2 million for the sport development and support programs
in Russia.
• MegaFon sponsored All-Russian Rhythmic Gymnastics Championship in Kislovodsk.
• Donetsk Electrometallurgical Plant (A1 project) sponsored the Ice Hockey Federation
of Ukraine.
• MegaFon is an official sponsor of Winter Olympic Games 2014 and Winter Paralympic
Games 2014 in Sochi.
Environmental Protection, Health Care and Security Assurance
• As members of “Сorporate Сlub of the World Wildlife Fund (WWF) Russia” Alfa-Bank
Russia and VimpelCom regularly contribute to nature conservation initiatives. In 2009
“Asian Leopards Recruitment Program” started in the Caucasus.
• MegaFon held the “Green Subbotnik” Russia-wide environmental campaign to plant
trees, flowers and clean up litter.
• TNK-BP
provided assistance to programs supporting children suffering from
developmental disabilities, and participated in activities promoting healthy lifestyle and
anti-drug campaigns.
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• MegaFon held the “Billion with Small Change” charitable campaign to finance complex
surgical operations for children suffering from cancer.
• Kyivstar held the“Give up Using Paper Bags, Save a Tree” environmental campaign to
reduce the use of paper bags.
• MegaFon held the “Cross the Street Against the Green Light” charitable campaign to
provide safety for pedestrians and drivers.
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AWARDS AND RECOGNITION
As one of the leading financial-industrial investment conglomerates in Russia, and as one
of the largest investors into emerging markets in the world, Alfa Group, its companies
and its people are recognized by prestigious independent organizations and the media as
leaders in their industries. Following is a selection of some of this recognition:
XI Avtoforum Award
Independence Group (A1 project): “Best Auto Dealer of Premium Brands in Russia”
(2009)
20th Century Fox CIS Award
Cinema Chain “Kronverk Cinema” (A1 project): 1st Place, “Global Mobilization” (2008)
Absolute Brand 2009 Award
MegaFon: “Grand Prix for Absolute Brand 2009” (2009)
Aksia Newspaper
CTC Media, Inc.: 11th Place in Top-50 Dream Employers for a Young Specialist (2007); 1st
Place in Rating of Top Employers in Mass Media, Advertising and PR Sphere According to
Young Specialists (2007, 2008); 1st Place in Top Employers in Mass Media, Advertising and
PR Sphere According to Experts (2008)
All-Russian Contest “Best Housing and Utility Company”
JSC “OmskVodokanal” (Subsidiary of Rosvodokanal Group): “Best Housing and Utility
Company” (2009)
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Association of Managers in Russia
“Business Leaders in Russia”: Mikhail Fridman, Chairman of the Supervisory Board of
Alfa Group; Petr Aven, President of Alfa-Bank Russia (2009)
“Top-1000 Most Professional Top-Managers of Russia”: (3rd Place – Communication),
Sergei Soldatenkov, CEO of MegaFon; (3rd Place – Finance), Mikhail Khabarov, CEO of
Alfa Capital Management; (6th Place – Commercial Banks), Rushan Khvesyuk, Chairman
of the Executive Board and Acting CEO of Alfa-Bank Russia; (5th Place – Communication),
Alexander Torbahov, CEO of VimpelCom; (8th Place – Retail Trade), Lev Khasis, CEO,
Chairman of the Executive Board of X5 Retail Group N.V.; (3rd Place – Insurance
Companies), Vladimir Skvortsov, CEO of AlfaStrakhovanie Group (2009)
“Top-1000 Most Professional Financial Directors of Russia”: (1st Place – Finance),
Alexander Goncharenko, CFO of Alfa Capital Management; (1st Place – Communication),
Elena Shmatova, Vice-President of Finance and CFO of VimpelCom; (2nd Place – Insurance
Companies), Vera Volkun, CFO of AlfaStrakhovanie Group (2009)
“Top-1000 Most Professional HR Directors of Russia”: (2nd Place – Finance), Irina
Krivosheeva, Executive Director of Alfa Capital Management; (4th Place – Insurance
Companies), Anna Efremova, HR Director of AlfaStrakhovanie Group; (1st Place –
Commercial Banks), Andrey Shibanov, HR Director of Alfa-Bank Russia (2009)
“Top-1000 Most Professional IT Directors of Russia”: (1st Place – Communication),
Vladimir Filippov, Vice-President of Information Technologies of VimpelCom; (5th Place –
Communication), Konstantin Yupov, Director of Information Technologies of MegaFon; (1st
Place – Retail Trade), Teimur Shternlib, Director of Information Technologies of X5 Retail
Group N.V.; (1st Place – Commercial Banks), Sergey Mednov, Director of Information
Technologies of Alfa-Bank Russia; (1st Place – Insurance Companies), Andrey Pedorenko,
Director of Information Technologies of AlfaStrakhovanie Group (2009)
“Top-1000 Most Professional Commercial Directors/Marketing Directors”: (1st Place –
Communication), Kent McNeley, Vice-President, Chief Marketing Officer of VimpelCom;
(2nd Place – Communication), Larisa Tkachuk, Deputy Chief Marketing Officer of MegaFon;
(1st Place – Finance), Ilya Khaikin, Director of Marketing and Business Development
of Alfa Capital Management; (1st Place – Insurance Companies), Tatiana Puchkova,
Marketing Director of AlfaStrakhovanie Group; (1st Place – Commercial Banks), Viktor
Shkipin, Marketing Director of Alfa-Bank Russia (2009)
“Top-1000 Most Professional PR Directors of Russia”: (Laureate – Insurance Companies),
Anastasia Bondareva, PR Director of AlfaStrakhovanie Group; (1st Place – Retail Trade),
Yury Kobaladze, Managing Director of Corporate Relations of X5 Retail Group N.V.; (2nd
Place – Communication), Kira Kiryuhina, PR Director VimpelCom; (1st Place – Commercial
Banks), Leonid Ignat, Director of Information Policy and Public Relations of Alfa-Bank
Russia (2009)
Audi Award
Independence Group (A1 project): 1st Place, “The Index of Clients’ Loyalty and the Special
Achievements in Servicing” (2008)
Banker Magazine
Alfa-Bank Ukraine: “Bank of the Year” (2009)
Companion Magazine (Ukraine)
Igor Litovchenko, President of Kyivstar: “Best Manager – Telecommunications” (2003);
3rd Place, “Best Top-Manager of Ukraine” (2007); 1st Place, “Best Top-Manager of
Ukraine” (2008); 1st Place, “Most Successful and Most Respected Manager of Ukraine”
(2009)
Andrew Simmons, CFO of Kyivstar: 4th Place, “Top-10 Financial Directors in Ukraine”
(2007)
Taras Parkhomenko, Marketing Director of Kyivstar: 3rd Place, “Top-10 Marketing
Directors in Ukraine” (2008)
Kyivstar: 1st Place, “Inspiring Company” (2007, 2008)
Company Magazine
AlfaStrakhovanie Group: “Company of the Year” (2004, 2006)
Vladimir Skvortsov, CEO of AlfaStrakhovanie Group: “Best Manager – Financial Sector”
(2004)
TNK-BP: “Deal of the Year” (2003); “Company of the Year – Fuel and Energy Complex”
(2004, 2006, 2007)
MegaFon: “Best Telecommunication Company” (2004)
VimpelCom: “Company of the Year” (2005)
X5 Retail Group N.V.: “Company of the Year” (2008)
Corporate Lawyer Magazine
JSC “TNK-BP Management”: Laureate of the “Best Legal Department” (2009)
VimpelCom: 1st Place, “Best Legal Department” (2009)
Correspondent Magazine (Ukraine)
Kyivstar: “Country’s Best Employers Among Telecommunication Companies” (2007); 1st
Place, “Best Employer” (2007, 2008)
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Delovoy Magazine (Ukraine)
Kyivstar: 1st Place, “Top-50 Employers in Ukraine” (2008)
EFFIE Award
AlfaStrakhovanie Group, website “Odnoklassniki.ru”: “Excellent Insurance” (2008)
Euromoney Magazine
Alfa-Bank Russia: “Highly Recommended Bank – Russia” (2000); “Best Bank in Russia”
(2002, 2007, 2008, 2009); “Best M&A House in Russia” (2004); “Best M&A Deal of the Year”
(2004); “Best Forex Bank in Russia” (2006)
TNK-BP: “Best Borrower” (2003); “Eurobond of the Year” (2006)
VimpelCom: “Best Borrower” (2005)
European Brand Institute
VimpelCom: “Most Valuable Russian Brand” (2009)
Financial Times
Mikhail Fridman, Chairman of the Supervisory Board of Alfa Group: “Business-Leaders
of the New Europe” (2004)
VimpelCom: “Top-10 Most Valuable World’s Brands in Telecommunications” (2009)
Galitsky Contracts Publishing House and GVardia Magazine
Kyivstar: “Most Valuable Corporate Brands” (2009)
Global Finance Magazine
Alfa-Bank Russia: “Best Russian Domestic Bank” (1999, 2000, 2001, 2002, 2003, 2008);
“Best Russian Trade Finance Bank” (2001, 2002, 2003, 2004, 2007, 2008); “Best M&A
Advisor” (2003, 2004); “Best Foreign Exchange Provider in Russia” (2004, 2005); “Best
Retail Bank in Russia” (2004); “World’s Best Internet Bank in Central & Eastern Europe”
(2008); “Best Equity Research Bank” (2008)
Rosvodokanal Group: “Best Utilities Company in Russia” (2007)
Golden Salamander Award
AlfaStrakhovanie Group: “Marketing Project 2008” (2008)
Google Award
CTC Media, Inc.: Serial “Margosha”: “Best Sitcom of the Year” (2009)
CTC Media, Inc.: Maria Berseneva, an Actress of Serial “Margosha”: “Best Actress of
the Year” (2009)
Hewlett-Packard Award
TopS Business Integrator Company (Systematic Group, A1 project): HP Gold Preferred
Partner Status and HP Software Business Partner Platinum Status (2008)
HR-Brand Award
AlfaStrakhovanie Group: “Federal Project” (2009)
VimpelCom: “Key Employee” (2009)
IBM Power Systems
Alfa-Bank Russia: “Innovation Award” (2008)
Independent Expert Council of Superbrands International
Perekrestok Chain of Supermarkets: “Russian Consumer Market Super Brand” (2004)
41
Alfa-Bank Russia: “Super Brand of the Year” (2005, 2008)
AlfaStrakhovanie Group: “Strongest Brand of the Inter-Corporate Business – B2B”
(2006)
InMind Agency and Kiev International Institute of Sociology
Kyivstar: “National Mobile Communications Operator” (2009); “New Quality of Mobile
Communication” (2009)
Institutional Investor Magazine
Petr Aven, President of Alfa-Bank Russia: “Best Manager of Financial Services in Russia”
(2004)
Alexander Izosimov, CEO of VimpelCom: “Best Russian Top-Manager in
Telecommunications” (2005, 2007)
Lev Khasis, CEO and Chairman of the Management Board of X5 Retail Group N.V.: “Best
Manager of Retail Trade Market in Russia” (2008)
Interbrand Zintzmeyer & Lux Ag and Businessweek Russia Magazine
Alfa-Bank Russia: “Best Bank in Russian Brand Rating” (2006)
Pyaterochka: “Most Valuable Brand in Russia in Retail Chains” (2006, 2007, 2008)
Beeline (Trade Mark of VimpelCom): “Most Valuable Brand in Russia in Telecommunications” (2007)
Invest-Gazeta (Ukraine)
Kyivstar: “Most Dynamic Ukrainian Company” (2003)
Alfa-Bank Ukraine: 1st Place in Terms of Asset Growth (2007); 1st Place in Terms of Equity
Growth (2007); 1st Place in Terms of Loan Portfolio Growth (2007); 1st Place in Terms of
Capital Growth (2007); 4th Place in Terms of Capital Growth (2008); 2nd Place in Terms of
Deposit and Loan Portfolio Growth (2008); 2nd Place in Terms of Asset Growth (2008)
Igor Litovchenko, President of Kyivstar: “Most Successful Manager in Ukraine” (2009)
IR Magazine Awards
VimpelCom: “Best Corporate Governance Award”, “Best Investment Community
Meetings and Roadshows”, “Grand Prix for Best Overall Investor Relations” (2003, 2004,
2005); “Best Annual Report” (2004); “Grand Prix for Best Investor Relations by Russian
Company” (2007); “Best IR Work in a Crisis” (2009)
Alexander Izosimov, CEO of VimpelCom: “Best Investor Relations by a CEO/CFO” (2004)
Valery Goldin, Vice-President of International and Investor Relations of VimpelCom:
“Best Investor Relations Officer – Large Cap” (2004)
X5 Retail Group N.V.: “Grand Prix for Best Overall Investor Relations” (2008)
Anna Kareva, Director for Public and Investor Relations of X5 Retail Group N.V.: “Best
Investor Relations Officer” (2008)
Jaguar Award
Independence Group (A1 project): 1st Place, “Top-20 of the Jaguar Dealers in Europe”
(2008); “Best Service Dealer in Russia” (2008); “Best Jaguar Brand Presentation in
Russia” (2009)
JP Morgan Chase Bank
Alfa-Bank Russia: “Best Bank in Terms of the Quality of US Dollar Clearing” (2002, 2003,
2004, 2005); “Elite Quality Recognition Award” (2008); “Best Bank in Terms of the Quality
and Dynamic Development in Cashless Settlements” (2009)
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Krasnodar City Administration, Duma of Krasnodar
Rosvodokanal Group: “Best Utilities Company in Krasnodar” (2008)
Land Rover Award
Independence Group (A1 project): “Best Land Rover Brand Presentation in Russia”
(2008)
Mass Media Analysis and Monitoring System Mediologia
Alfa-Bank Russia: “Most Frequently Quoted Russian Bank in the Mass Media” (2008,
2009)
Microsoft Corporation Award
AND Project Company (Systematic Group, A1 project): Award for “Outstanding Results in
the Microsoft Product Market” (2008); Award for “Active Promotion of Microsoft Dynamics
Brand in Russia” (2009)
National Award “Financial Olymp”
AlfaStrakhovanie Group: Award “Result and Success in Customer Service” (2008, 2009)
National Bank of Ukraine
Alfa-Bank Ukraine: Top-10 Largest Banks in Ukraine in Terms of Assets (2007); 8th Place
in Terms of Capital and Assets (2008)
National Contest “Corporate Governance Leaders in Russia”
JSC “TNK-BP Holding”: “Best Dividend Policy” (2009)
National Contest “New People, New Ideas”
Denis Alexandrov, CFO of A1: “Best Financial Director” (2009)
National Contest “Top-100 Best Products in Russia”
Euro-5 (Fuel Diesel of TNK-BP): Laureate of the “Top-100 Best Products in Russia”
(2009)
National Television Award “TEFI”
The following awards are for CTC Media, Inc.:
Television Program “Stories in Detail”: “Best Entertaining Program” (2007, 2008)
Nikolai Drozdov, a Host of Domashny Channel: “For Personal Contribution to Television
Development” (2007)
Alexander Rodnyansky, a Producer of Serial “Daddy’s Girls”: “Best Movie Producer”
(2008)
Serial “Daddy’s Girls”: “Best Sitcom of the Year” (2008, 2009)
Program “The Cleverest”: “Best TV Game Show” (2009)
Program “Thank God You Have Come!”: “Best Comedy Show” (2008)
Mikhail Shvydkoy, a Host of Domashny Channel: “Best Entertainment Program Anchor”
(2008)
Elena Perova, a Host of Domashny Channel: “Best Entertainment Program Anchor”
(2008)
Promo-Campaign “CTC is a Wonderland”: “Best Channel Branding” (2008)
Serial “Thirtysomething”: “Best Promo” (2008)
Nextep Group of Companies and Kommersant-Money Magazine
AlfaStrakhovanie Group: 1st Place in Terms of Client Service Quality (2007); 1st Place in
Terms of Office Look (2008); 1st Place in Terms of Recognizing Customer Needs (2008);
1st Place in Terms of Composing an Offer (2008)
Alfa-Bank Russia: 1st Place in Terms of Client Service Quality (2008, 2009)
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Omsk Construction and Utilities Department
JSC “OmskVodokanal” (Rosvodokanal Group): “Best Utilities Company in the Omsk
Region” (2007)
Rabota.Mail.Ru Award
MegaFon: “Best Russian Employee” (2009)
Retail Finance
Alfa-Bank-Cosmopolitan-Visa, Co-Brand Card: “Year Creative Award” (2007)
AlfaStrakhovanie Group: “Year Creative Award” (2008)
RosBusinessConsulting
Perekrestok Chain of Supermarkets: National Award “Company of the Year – Consumer
Services to Population”; “For Corporate Governance” (2003); “Company of the Year in
Consumer Trading” Award (2005)
Lev Khasis, CEO and Chairman of the Management Board of X5 Retail Group N.V.:
National Award “Person of the Year – Manager of Retail Business” (2002); “Person of the
Year – Entrepreneur” (2003)
TNK-BP: “Company of the Year” Award – Fuel and Energy Complex” (2005, 2006)
Golden Telecom: “Company of the Year” Award – High Technology” (2005)
Alfa Capital Management: (Laureate) “Top-10 Mutual Funds Asset Management
Companies” (2006); Laureate of the “Company of the Year” (2007, 2009)
X5 Retail Group N.V.: “Company of the Year” (2006, 2009)
Olga Turishcheva, Marketing Director of VimpelCom: “Marketing Director” (2005)
Alfa-Bank Russia Analysts: “Best Equity Analysts” (2008)
MegaFon: “Company of the Year” Award – Services and Telecommunications” (2008)
Sberbank Award
MegaFon: “Strategic Partner of Sberbank in Russia” (2009)
SPEAR’S UK Award
Alfa-Bank Russia: “Best Bank in Russia in Terms of the Wealth Management” (2009)
Thomson Reuters Extel Survey – Focus Russia 2009
Evgeny Kornilov, CFO of X5 Retail Group N.V.: “Best CFO in Terms of Investor Relations”
(2009)
Anna Kareva, Director for Public and Investor Relations of X5 Retail Group N.V.: “Best
Investor Relations Director” (2009)
Ukrainian Corporate Media Association (Annual Report Contest)
Alfa-Bank Ukraine: Award for “Immaculate Structure of the Corporate Journal,
Professionalism and Considerable Contribution to the New Standards of Corporate
Journal in Ukraine” (2007)
World Brand Academy
Mikhail Fridman, Chairman of the Supervisory Board of Alfa Group and Petr Aven,
President of Alfa-Bank Russia: Award “For Creation of Successful Russian Brand”
(2006)
MegaFon: “Socially Responsible Company” (2008)
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CONTACT INFORMATION
Alfa-Bank Russia
President: Petr Aven
Acting as CEO: Rushan Khvesyuk
Address: 27 Kalanchevskaya Street, Moscow,107078, Russia
Tel.: +7 (495) 620-91-91, (495) 974-25-15
E-mail: [email protected]
Alfa-Bank Ukraine
President: Alexander Lukanov
Chairman of the Executive Board: Viktoria Mikhalyo
Address: 4/6 Desyatynnaya Street, Kiev, 01025, Ukraine
Tel.: +38 (044) 490-46-00
Fax: +38 (044) 490-46-01
E-mail: [email protected]
Alfa Capital Management
CEO: Mikhail Khabarov
Head of PR: Dmitry Nazarkin
Address: 32/1 Sadovaya-Kudrinskaya Street,
Moscow, 123001, Russia
Tel.: + 7 (495) 797-31-52
Fax: + 7 (495) 797-31-51
E-mail: [email protected]
Alfa Capital Partners
CEO: Richard Sobel
Address: 32/1 Sadovaya-Kudrinskaya Street,
Moscow, 123001, Russia
Tel: + 7 (495) 775-18-28
Fax: + 7 (495) 775-18-27
E-mail: [email protected]
AlfaStrakhovanie Group
CEO: Vladimir Skvortsov
President: Mikhail Bershadsky
Address: 31 B Shabolovka Street, Moscow, 115162, Russia
Tel: +7 (495) 788-09-99
Fax: +7 (495) 785-08-88
E-mail: [email protected]
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TNK-BP
Interim CEO: Mikhail Fridman
Address: 1 Arbat Street, Moscow, 119019, Russia
Tel.: +7 (495) 777-77-07
Fax: +7 (495) 777-77-08
E-mail: [email protected]
A1
President: Andrei Zemnitsky
Address: 12 Krasnopresnenskaya Naberezhnaya,
Moscow, 123610, Russia
Tel.: +7 (495) 967-00-00, (495) 967-00-66
Fax: +7 (495) 967-00-76
E-mail: [email protected]
Rosvodokanal Group
СEO: Petr Zolotarev
Address: 13 2nd Zvenigorodkaya Street, Bld. 15,
Moscow, 123022, Russia
Tel.: +7 (495) 514-02-11
Fax: +7 (495) 514-02-11
E-mail: [email protected]
CTC Media, Inc.
CEO: Anton Kudryashov
Corporate Communications Director: Ekaterina Osadchaya
Address: 15A Pravda Street, Moscow, 125124, Russia
Tel.: +7 (495) 785-63-33
Fax: +7 (495) 642-94-51
E-mail: [email protected]
X5 Retail Group N.V.
Chairman of the Supervisory Board: Herve Defforey
CEO and Chairman of the Management Board: Lev Khasis
Address: 28 Srednyaya Kalitnikovskaya Street, Bld.4,
Moscow, 109029, Russia
Tel.: +7 (495) 662-88-88, (495) 789-95-95
Fax: +7 (495) 662-88-88, ext. 41-265
E-mail: [email protected]
Altimo
CEO: Alexei Reznikovich
Vice-President: Kirill Babaev
Address: 11 Savvinskaya Naberezhnaya, Moscow,
119435, Russia
Tel: +7 (495) 981-44-88
Fax: +7 (495) 981-44-48
E-mail: [email protected]
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CTF Holdings Ltd
Director: Franz Wolf
Head Office: 4 Irish Place, Suite 2, Gibraltar
Tel.: (350) 200 41977
Fax: (350) 200 41988
E-mail: [email protected]
Manager of Corporate Relations: Natalia Dymova
Address: 11 Bolshoi Savvinskiy Pereulok, Office 351,
Floor 5, Entrance 3, Moscow, 119435, Russia
Tel.: +7 (495) 787-00-77
Fax: +7 (495) 792-52-35
E-mail: [email protected]
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