PPF Group: From Voucher Privatization to International Expansion

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PPF Group: From Voucher Privatization to International Expansion

to International Expansion

July 10, 2012

Alexej Bechtin, PPF PR Consultant

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First 20 years

Slide 1

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Four Perspectives on PPF Group (capital & assets)

Slide 2

First 20 years

Kčs 0.1 million

Kčs 4.0 million

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Slide 3

A Perspective on PPF Group (geography)

First 20 years

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A Perspective on PPF Group (industries & people)

Slide 4

First 20 years

7 employees

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Historical Milestones

1991 The First Privatization Fund (Czech abbreviation PPF) was established for the first wave of voucher privatisation in then-Czechoslovakia: 4 funds

1992 The name PPF Investment Company was adopted

1993 PPF funds took over shares of 202 Czech companies of total value CZK 4.9 bil.

1994 140,000 clients have invested with PPF funds during the second wave of voucher privatisation

1995 PPF has extended its activities to real estate and asset management

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1995 PPF has extended its activities to real estate and asset management

1996 PPF has acquired a significant stake in incumbent insurance company, Česká pojišťovna (Czech Insurance)

1997 PPF has established Home Credit as consumer finance provider

1998 PPF has undertaken radical changes at Česká pojišťovna in the process of company’s turnaround

1999 PPF has been focusing primarily on financial services

2000 PPF became a majority shareholder at Česká pojišťovna

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Historical Milestones

2001 PPF has decided to expand life insurance and consumer credit products into international markets

2002 A year of significant acquisitions and start-ups: TV NOVA, Prague’s city bank, Home Credit in Russia

2003 Shareholder’s position at TV NOVA has strengthened

2004 Successful exit from TV NOVA

2005 Open Gate Boarding School has commenced its activities, being a major charitable project supported by PPF

charitable project supported by PPF

2006 Home Credit: 500,000 credit cards issued in the Czech Republic; HCFB Russia has served 11 million clients

2007 PPF has entered Nomos-Bank by acquiring a minority stake

2008 Generali PPF Holding was established, a stake at Polymetal was acquired

2009 PPF has vigorously reacted to the world’s economic downturn, by optimising business but also by acquiring new assets in energy (EPH), retail (Eldorado) and real estate

2010 As the first and only internatoinal company PPF has obtained a pilot licence

in China to provide consumer finance services by its own

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The way ahead – “cash-generating machine”

Slide 5

…

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PPF Group Financials

PPF Group Highlights

Assets in excess of EUR 14.3bn as of 30 Dec 2011 (+16% from 31.12. 2010)

Total equity of EUR 4.268 bn (-3.5% from 31.12. 2010)

Strong position among investors in Russia (5% of FDI); well-established in CEE and CIS; expanding in Asia, particularly in China and Vietnam

EUR million, based on IFRS 2011 2010 2009

Assets

14,357 12,383 10,802 Equity attributable to Shareholders of Parent

Company 4,268 4,424 4,000

Revenue

3,618 3,357 1,760

Net Profit attributable to Shareholders

216 336 289

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Introduction

PPF Group is the investment holding of its shareholders.

PPF Group focuses on investment opportunities requiring a capital contribution of EUR 100 million or more.

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Investment Thesis: PPF Group selects assets with a view to long-term value creation.

Investments managed by PPF

Investments managed

by PPF Investments jointly managed Other InterestsOther Interests with partners

Investments jointly managed with partners

Petr Kellner Petr Kellner

94.25%

Jean-Pascal Duvieusart Jean-Pascal Duvieusart

0.25%

Ladislav Bartoníček Ladislav Bartoníček

0.50%

Jiří Šmejc Jiří Šmejc

5.00%*

* Split of stakes as of 31 December 2011. As announced on 18 May 2012, Jiří Šmejc is selling his 5% stake in PPF Group to other current shareholders. More details follow.

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PPF Group’s Portfolio of Companies

PPF actively manages its portfolio of investments to capture opportunities with significant value-creation potential. The Group's successful long-term investment strategy, which blends full ownership and

managerial control of assets and strategic investments by key partners, remains unchanged.

Other Interests

PPF Partners (72.5%) PPF a.s. (100%) PPF Art (100%)

Piraeus Bank is the third-largest Greek bank

Investments managed by PPF

PPF Banka (92.96%) – Czech Republic

Banking

Wholesale bank for the Group and corporate and municipal clients

Home Credit (100%,

except for HC Bank Kazakhstan, 9.99%)

Piraeus Bank S.A. (5.72%) – Greece

Investments jointly managed with partners

Banking

Nomos Bank (27.34%) - Russia

Nomos ranks 5th oin Russia in terms of assets)

except for HC Bank Kazakhstan, 9.99%)

HC is a leading consumer finance provider in CEE and CIS; growing in China and Vietnam

PPF Real Estate Holding (100%) Eldorado (100%) - Russia

Eldorado is the No. 1 electronics retailer in Russia

Consumer Electronics Retail

Real Estate

Air Bank (100%) – Czech Republic Air Bank is a newly-founded retail bank in CZ

Generali PPF Holding (49%)

Insurance

GPH is one of the largest life and non-life insurance companies in the CEE region

Polymetal (20.86%)

Polymetal is the No. 1 silver mining company and No. 4 gold mining company in Russia

Mining

EP Holding (40%)

EP Holding is the second-largest Czech energy player

Energy

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PPF Group Current Shareholders

Petr Kellner - Founder and majority shareholder of PPF Group N.V.

Born in 1964; a graduate of the University of Economics, Prague, Faculty of Industrial Economics in 1986. Petr Kellner founded PPF Group and became Chairman of the Board of Directors and CEO of PPF investicni spolecnost a.s. in 1991. He was Chairman of the Board of Directors of PPF a.s. from January 1998 till March 2007. He has been a Member of the Board of Directors of Assicurazioni Generali S.p.A. since April 2007 and a Member of the Board of Directors of Generali PPF Holding since January 2008. Petr Kellner owns a majority stake in PPF Group and manages its strategic development and planning.

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Ji ř í Šmejc

Born in 1971; a graduate of the Charles University, Prague, Faculty of Mathematics and Physics, where he specialized in mathematical economics. In 1992 Jiří Šmejc went into business and in 1993 became Executive Officer and Director of PUPP Consulting s.r.o. In 1995 he served as Sales Director at Middle Europe Finance s.r.o., (a securities trader with a focus on acquisitions). Until 2004 he held a 34% share in TV NOVA Group. He joined PPF Group in 2004 and became a shareholder of the Group in 2005.

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PPF Group Shareholders

Ladislav Bartoní č ek

Born in 1964; a graduate of the Czech Technical University in Prague, Faculty of Electrical Engineering. Ladislav Bartoníček joined PPF investicni spolecnost a.s. in 1991 as Executive Director and was awarded an MBA by the Rochester Institute of Technology, New York, in 1993. From 1996 till September 2006 he served as Chief Executive Officer of Ceska pojistovna a.s. Ladislav Bartoníček became a shareholder of the PPF Group in 2007 and is currently Chief Executive Officer of Generali PPF Holding B.V.

Jean-Pascal Duvieusart

Born in 1966; holds an MBA from the University of Chicago and a Masters degree in Commercial Engineering from the Catholic University of Louvain, Belgium. Jean-Pascal Duvieusart joined McKinsey in 1992 and worked in Brussels and New York prior to moving to Central Europe. He was managing partner of McKinsey Prague from 1999 until 2005, when he assumed the leadership of McKinsey CIS and Central Europe. He has been advising banks and insurance companies as well as various industrial companies in Russia, the Czech Republic, Slovakia, Hungary, Poland and Romania.

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PPF Group Assets Overview

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PPF Group’s New Businesses:

SAZKA (acquired in 2011 )

Lottery – Czech Republic

NEED PICTURE

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Company Introduction

The joint venture between PPF and KKCG (50:50), took over the business of SAZKA, which was the former monopoly provider of lotteries in the Czech Republic and which became insolvent in spring 2011

Since 1 November 2011, Sazka has been operating its lottery business using the SAZKA brand, and currently has a market share of 95% (compared to 85 % at the moment of takeover)

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and currently has a market share of 95% (compared to 85 % at the moment of takeover)

Sazka provides its products and services through a unique national sales network of almost 6,500

retailers, including post offices all across the Czech Republic

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Company Restructuring

Immediately following acquisition, PPF and KKCG installed a new management team and started restructuring the company under PPF’s management

Key aims: to increase sales including profitability and to restore customers’ trust

Key tools: significant restructuring of operations and sales network, investment into advertising campaigns, staff reorganization

significant OPEX reduction after the acquisition significant OPEX reduction after the acquisition

number of employees reduced from 572 in 2010 to 322 currently, with a further-decreasing trend

2010 2011 2012 (budgeted)

312 192 276

Sales (EUR million

)

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Sales

Sales (CZK)

400,000,000 500,000,000 600,000,000 700,000,000 800,000,000

As of March 31, 2012 sales have almost achieved the average sales level from the past:

revenues of 70 million EUR, profit 6.2 million EUR

17 100,000,000

200,000,000 300,000,000

January February March April May June July August September October November December January February March

2011 2012

Sazka SSK

*

1-10 2011 sales of former SAZKA, a.s. + 11-12 2011 sales of NewCo

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PPF Group’s New Businesses:

AirBank started in 2011

Retail banking

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AirBank at a glance

AirBank aims to be the bank of choice for retail customers seeking progressive banking, and is set to achieve break-even in year 4 of its operations

Net income

CZK million

“The first bank that I like”

▪ … because it makes banking elegantly simple

▪ … because it does not hide things

▪ … because I pay only when I am satisfied

Launched on November 24, 2011; started with transactional and savings accounts Gained immediate attention and success in

deposit-collection with its “Top 3 Guarantee” proposition

Will continue to extend its product line for

retail customers (cash loans in Q3-2012)

and later for small entrepreneurs

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Key Businesses: Home Credit

Financial Services

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Home Credit Group:

Delivering returns and growth

Home Credit’s unique multi-channel retail finance model delivers outstanding returns in emerging markets

Our effective risk management, specifically tailored to emerging markets, Scaling up Home Credit’s low-cost branch network is the main driver of growth in Russia

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Our effective risk management, specifically tailored to emerging markets, has given us a better-quality portfolio, a bigger share of the market and higher profits

Low-cost and highly flexible IT systems and operations provide us with a competitive advantage in the mass-market segment

We are backed by robust funding and strong retail deposit gathering

We are focused on attractive markets, each with a compelling growth

outlook

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Sustained strong market position in CEE/CIS while expanding in Asia

▪ Active clients: 633 thousand

▪ Distribution points: 9,184

▪ Net loans: EUR 265 million

▪ ^{ROAE: 19%}

Czech Republic/Slovakia

▪ Active clients: 3.7 million

▪ Net loans: EUR 2.7 billion

▪ ^{ROAE: 38%}

Russia

China

Kazakhstan

China

▪ Net loans: EUR 154 million China

Vietnam

▪ Net loans: EUR 97 million

▪ ^{ROAE: 22%}

▪ India – pilot since Jan 2012

▪ Indonesia – building joint venture New Market Entry Opportunities

▪ Net loans: EUR 40 million Belarus

▪ HCBV owns 9.99% of AO Home Credit Bank Kazakhstan

▪ Active clients: 315 thousand Kazakhstan

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Russia: The largest private lender of unsecured consumer loans…

Net profit of EUR 263 million at 38% ROAE

Market leader with 24% POS market share; 4th in consumer loans (3.6% market share) and 6th in total retail loans (2.2% market share)

Most successful cross-selling machine in Russia with greatest penetration (22.5 million customers in database)

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million customers in database)

Profitable growth in POS core business and successful expansion into cash loans with major growth opportunities

Dynamic retail deposit growth (from ~19% to ~56% of liabilities within 2 years) has created a stable funding source with attractive cost

Market-pioneering bank network expansion with effective and low-cost

branches; 62% of the 1,273 at YE2011 were opened in second half of 2011

Retail-centric “branch” network drives sales momentum; HCFB is one of the

leaders based on branch network size (currently 3

^rd

, after largest state banks)

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… and expanding presence in Asia with enormous socio-demographic potential

Roll Out Timetable

China

Home Credit received the first ever full foreign company CF license from CBRC in China – push for national rollout

Expand to new provinces – maximize geographical reach

Building unique operational platform based on cooperation between guarantee company and local leading financial institutions

Open till 2011 2012 Roll Out 2013 Roll Out

Vietnam institutions

Further enhance POS commodities; Maintain strong focus on Sales/Risk

Secure diversified funding for 2013 and further optimize leverage

We are the only remaining foreign consumer finance company

Navigate sales in loan growth cap environment, maintain market leader position in motorbikes sales finance

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Effective risk management with ability to optimize risk at mass scale

Up to 60,000 applications processed daily; average time-to-yes for 75% of applications in just 15 seconds creating a leading customer experience

High approval rate of 55-80% while reducing 30+

¹

delinquency by more than 47% in last 2 years

Online anti-fraud system and biometric measures reduced fraud by 29%

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Online anti-fraud system and biometric measures reduced fraud by 29%

(€1.1m saved per month) from YE2008 to YE2011

Collection machine with 89% collection efficiency at times generating over 11.5 million calls a month using best-practices comparable to western markets

Scorecards: high predictive power, stability and flexibility, specifically designed for each product and customer segment

6+ years of experience and extensive customer database (~1/3 of all households in Russia, CZ & Slovakia) are a competitive advantage that is hard to replicate

1Loan receivables which are overdue by more than 30 days

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Strong growth momentum ...

Net Receivables

+42%

2011 3,260

2010 2,292 New volumes

+43%

Q1 2012 1,313

2011 4,299

2010 3,014

Substantial growth … particularly in Cash Loans

EUR million

Q-Q +63%

2011 Q1 2012 2010

2011 2010

Net Income

Sustained profits Strong capitalization

+47%

Total equity Total assets

+5%

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... with attractive returns and margins

High margins and strong fee generation … … and solid efficiency

32 42 28 38

2011 2010

20 19

49 50

2010 2011

Cost/Income Cost/ANR

Net interest income/ANR Operating income/ANR

Percent Percent

27 All data represent a pro-forma consolidation of Home Credit B.V., Home Credit Asia N.V., Consumer Finance Company (China) and PPF Vietnam, and exclude effects of discontinued Ukrainian operations

… with well managed cost of risk … leading to attractive returns 2011

2010

23 23

8 6

2011 2010

ROAA ROAE

6 7

10 9

2011 2010

2010 2011

Impairment losses/ANR Coverage ratio

Percent Percent

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Key Businesses: PPF Bank

Financial Services

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Overview

Established in 1992, Part of PPF Group since 2002

Main shareholders: PPF Group N.V.

(92.9%) and City of Prague (6.7%)

International Operations through Head Office in Prague. Four Client Centers in

EUR m 12/06 12/07 12/08 12/09 12/10 12/11

CAGR 06-11

# of employees 117 118 93 119 151 170 +8%

Total assets 882 1 042 1 678 1 634 2 089 2 547 +22%

Loans to clients 338 288 332 513 744 818 +18%

Equity 59 83 100 133 166 182 +24%

Revenues 52 70 85 101 75 89 +8%

Operating income 31 41 49 65 51 56 +10%

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Office in Prague. Four Client Centers in Prague

Wholesale bank for PPF Group, Czech corporates and Municipal clients, with extensive operations on global capital and financial markets

Net profit 6 19 22 31 26 25 +30%

CIR 57% 39% 45% 30% 38% 45% -5%

CAR*) 14,7% 13,5% 10,7% 10,1% 11,1% 10,4% -7%

ROAA*) 1,1% 1,8% 1,7% 1,7% 1,3% 1,0% -1%

ROAE*) 21% 36% 27% 32% 20% 14% -7%

Net Loans/Deposit 58% 33% 23% 40% 47% 43% -6%

Tier 1/Capital 86% 100% 100% 100% 100% 100% +3%

*) according to Czech Accounting Standards (CAS) and criteria of the Czech National Bank Note: growth rates and CAGRs are calculated from CZK values

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2011 - Diversification of income and growth of client base

Business Lines Highlights

Investment banking

Treasury

• Primary dealer in government bonds

• Investment product development

• Brokerage services

• Custody services

• Asset and liability management

• Advisory for non-Bank FI

Large Corporates

• Increasing both assets and number of corporate clients

• Short-term lending with good collateral coverage

• Keeping clean loan book

Export/

structured

• Major export financing project with EGAP support completed

• Structure finance and bank loan

• Advisory for non-Bank FI

• Financing of the Group

Municiple Banking

• Transaction services for public-sector clients

• Introduced innovative deposit products

Finance • Structure finance and bank loan syndications

Private Businesses

• Expanding client base

• Increasing revenue from Russian Desk

• Opening of Client Centre in Praha 10- Vinice

Consumer Finance

• Funding of receivables from revolving loans and credit

cards Private

Banking

• Starting operation, targeing private clients with assets more than EUR 1m

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Key Businesses: Nomos Bank

Financial Services

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(RUB i n bil l i ons ) 2010 2011 % change

Tota l a s s ets 530.2 662.1 24.9%

Gros s cus tomer l oa ns 354.9 468.3 32.0%

Cus tomer accounts 313.4 382.4 22.0%

Sha rehol ders ' equi ty 46.9 62.3 32.8%

Tota l equi ty 57.9 75.7 30.7%

Net profi t 10.4 12.1 16.3%

Ti er 1 ca pi ta l 56.6 73.9 30.6%

Tota l capi ta l 83.3 99.3 19.2%

Net i nteres t ma rgi n (%) 5.3 5.5 -- Cos t income rati o (%) 43.5 47.2 --

RoAE (%) 21.1 18.2 --

ROAA (%) 2.3 2.0 --

NOMOS at a glance

Largest listed privately-owned bank in Russia with free float of 24.99%

according to Interfax-CEA⁽¹⁾

2^ndlargest privately-owned and 8^thlargest banking group in Russia by total assets according to Interfax-CEA⁽¹⁾

Strong growth track record both organically and through acquisitions Expanding distribution platform including 287 branches and outlets, and

1,849 ATMs in 42 economically-developed regions of Russia⁽¹⁾

Broad geographic network with focus on 5 key regions - Moscow, Khanty- Mansiysk/Tyumen/Yamalo-Nenets, St. Petersburg, Novosibirsk and Khabarovsk⁽¹⁾

Key shareholders, ICT and PPF, committed to the Bank and focused on value creation

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NOMOS’ International Credit Ratings

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(6) (6) (6) (6) (6)

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Ti er 1 ra tio (%) 10.6 12.0 --

Ca pi tal a dequa cy ra ti o (%) 15.6 16.2 --

NOMOS’ International Credit Ratings

Year Fitch Moody's

201 2

BB (upgraded 11 Aug 2011)

Ba3 (confirmed 17 Nov 2011)

Multi segment business franchise

Over 11,300 corporate clients

Appr. 78,500 small business clients

Appr. 1.5 m retail clients

St-Petersburg

Moscow

Tyumen

Khanty-Mansiysk

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(1) (1)

Salekhard (Yamalo-Nenets)

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Uniquely positioned between small regional and large state owned institutions

#2 private banking group in Russia, #8 by assets

(RAS total assets, RUB in billions)

Local banks (private) Foreign banks (private) State-owned Listed NOMOS

Market cap (US$ bn) as of May 21, 2012 ⁽⁵⁾ Largest listed

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33

Source: Interfax-CEA 1Q 2012 (based on total assets according to RAS data) (1) Interfax-CEA 1Q 2012

(2) Includes VTB24, Bank of Moscow and Transcredit (3) Includes Rusfinance and Deltacredit

(4) NOMOS , BKM , NOMOS-REGIO, NOMOS-BANK-Siberia, Inbank, NMB combined under RAS (5) Source: Bloomberg

(6) Average daily turnover on London Stock Exchange from January 1, 2011 through April 11, 2012 Largest listed

privately owned bank

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Key highlights

Solid financial standing and conservative risk management demonstrated across the economic cycle A long-term consolidator

in the attractive Russian banking sector

Strong platform for small business and retail banking growth Low-risk

investment banking business

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Key Businesses: Generali PPF Holding

Financial Services

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Generali PPF Holding – overview

A leading insurance group in CEE, active in the pensions sector as well Joint venture between PPF and Assicurazioni Generali, est. 2008

Present in 14 countries in CEE and CIS 16 billion assets

More than 13 million clients

Excellent profitability and operating results Responsible for 6% of Generali

Group GWP while at the same time

net profit creates over 30% of total

Group’s profit

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GPH Key indicators

+20%

Operating result (Euro m) Combined ratio ( % )

- 3,7%

2010 2011 2010 2011

37

Net profit (Euro m)

+28%

Pension funds’ AUM (Euro m)

+8,0%

2010 2011 2010 2011

2010 2011

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GPH Operational Highlights – profitable growth in challenging market conditions: 2011

Net profit at EUR 314m, (+ 28% y-y)

Total GWP in Non-Life segment stable at EUR 2,261m despite negative development in key markets, especially in Motor segment

GWP Life regular premiums increased to EUR 994m (+ 1.4% y-y) Total GWP (Life + Non-Life) reached EUR 3,393m

Operating result at EUR 503m (+20.1% y-y),

Net Combined Ratio improving to 89.5% (-3.7 p.p.), an excellent level compared to the market and within Generali Group

Net Technical Result in Non-Life improving significantly to EUR 201m (131m in 2010) Shareholder’s Equity stable at EUR 4.4bn

General expenses decreased by 1.2%

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Significantly better performance than our peers in CEE (NCoR)

99%

97%

99%

105% 102%

102%

99%

107% 105%

95% 97% 98%

102%

105%

100%

105%

110%

115%

2009 2010 2011

39

88%

93%

97%

93%

89%

95% 97%

75%

80%

85%

90%

95%

GPH PZU Allianz VIG AXA Uniqa

Source: GPH, M&A and Analysis Department

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Key Businesses: Eldorado

Retail

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Key Businesses: Eldorado

Profile

Eldorado is the largest consumer electronics retailer of household appliances in Russia. It has 670 stores (including franchises) in 455 cities throughout the country.

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Total revenue in 2011 exceeded RUB 82bn

Eldorado was founded in 1994; PPF Group entered the company in 2009 by acquiring

50% + 1 share; in 2011, PPF completed a buyout of all remaining shares from Igor

Yakovlev and now controls 100%.

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Eldorado at a glance

Profile

Largest geographical overage

385 stores in 170 cities, 285 Franchisees in 285 cities across Russia

Eldorado business split between regions: Siberia 19%, North-West 17%,

Central 17%, South-West 16%, South 16%, Urals 15%, Internet 1%

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Key Indicators 2011

Gross Margin Closing Net Debt

28,90% 12 bn RUR

2011 23,9 bn RUR 2010

2010 27,40% 2011 9 bn RUR

22.69 bn RUR

43

EBITDA

6.7%

2011 5,5 bn RUR

2010 6.1%

5,08 bn RUR

’000 RUB 31 December

2011

31 December 2010 ASSETS

Total non-current assets 9 828 205 9 045 051 Total current assets 27 987 802 22 467 869

Total assets 37 816 007 31 512 920

EQUITY AND LIABILITIES

Total equity 2 489 411 -7 959 340

Total non-current liabilities 561 010 1 261 374 Total current liabilities 34 765 586 38 210 886 Total equity and liabilities 37 816 007 31 512 920

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Key Businesses: Polymetal

Natural Resources

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Polymetal at a glance

Leading precious metals producer in Russia and Kazakhstan: FY11 gold equivalent (‘GE’) production of 810 koz¹: 55% gold, 41% silver, 4% copper

5 operations in Russia and 1 operation in Kazakhstan, including 3 centralised processing hubs High growth at high grade: a rare combination in gold mining

High-quality asset portfolio: JORC-compliant GE reserves of 14.3 moz at 4.2 g/t GE plus 13.8 moz of GE resources at 3.9 g/t GE² Targeted 2011-2014 gold equivalent production growth of 73% to GE 1.4 Moz

Premium Listing on LSE Main Market: FTSE 100 participant, market capitalization US$5.7bn ³

Mayskoye

Production

45

Source: Company information, Bloomberg

(1) Twelve month period ending 31 December 2011; GE at 60:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conversion ratios (2) As at 01.01.2012

(3) As at 01.05.2012

Voro

Khakanja Omolon

Albazino Dukat

Amursk POX Varvara

Production Development

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Post-IPO shareholding structure: same assets – NewCo

$0.2/share dividends to be paid for FY2011 to POLY Int shareholders subject to approval by the AGM (16 May – Ex div date; 18 May– Record date; 18 June – Pay date)

Starting FY2012, the Company's intention is to pay annual dividends of 20% of net income provided that net debt/adjusted EBITDA is less than 1.75

Alexander Mamut 17.9%

International (Jersey)

Free Float 51.1%

ICT Group (Alexander Nesis) PPF Group

20.9% 10.1%

Dividend Policy

83.3% of shareholders of JSC Polymetal converted their shares to Polymetal Int shares through ISSF¹

As a result of the MTO launched on 23 Nov 2011 at RUB 531.15 per share, PMTL’s holding in Polymetal has increased to 99.48% by 16 Feb 2012

Squeeze-out to be applied to remaining shares

JSC Polymetal (Russia)

Existing Asset Base of 99.48%

PMTL Holding Ltd.

(Cyprus) 100%

Free Float 0.5%

(GDRs + Russian ords)

MTO and Squeeze Out

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Fast, majority invested, production growth

180 210 220 140

220 220 130

220

Mayskoe

Albazino

Omolon ops

Gold equivalent production¹, koz

810

1000

1300

1400

Capital expenditure², US$m

47 300 280 320 340 350 340

151 186 160 150 130 120 136 170 128 140 140 140

18

98 127 100 120 140 19 46

180 210 220 30

2009A 2010A 2011A 2012E 2013E 2014E

Varvara

Khakanja

Voro

Dukat ops

Source: Company information

(1) GE at 60:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conversion ratios

(2) 2009-2011: additions to PP&E as accounted in the audited consolidated cash flow statement + amounts payable at the end of the period

605

753

810

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Polymetal strategy

Achieve design capacity at existing mines

Achieve design capacity at projects currently in construction or ramp-up phase by 2^ndhalf of 2013 and achieve an annualized run-rate of GE 1.4 Moz in 2014. Assets in construction or ramp-up phase expected to generate production growth are the Amursk POX hub, the Omolon hub and the Dukat hub

Invest in exploration to ensure growth beyond 2014

Near-mine – to expand the Group’s reserve base and leverage existing processing facilities Greenfield – to establish the feasibility of constructing two new standalone mines by 2013

Maintain exemplary corporate governance Pursue “bolt-on” acquisitions

Pursuit of selected synergistic ‘bolt-on’ acquisition opportunities with a view to leveraging processing capacity, infrastructure and operational expertise at our existing processing hubs or transforming current standalone mines into new hubs

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Key Businesses: EP Holding/EP Energy

Energy

49

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Overview and summary of last 12 months

In the last 12 months EPH strengthened its focus on the Energy Sector and further developed its mining operations

Key Structural Changes in the Last 12 Months

EP ENERGY (an EPH division) established (Feb 2012)

EP ENERGY's key strategic points include its presence in contracted and regulated energy operations, dynamic activity in acquisitions and growth, and also maintaining a proactive and responsive approach to its customers

New management: J. Špringl - CEO and M. Janča - CFO

5 Divisions: (1) Mining, (2) Power and Heat, (3) Renewables, (4) Trading and Supply, (5) Coal Trading and Logistics

EP INDUSTRIES spun-off from EPH (Sep 2011)

All industrial companies were devolved from EPH and merged into the new EP INDUSTRIES group

Focus on investments in industrial assets and activities outside the energy sector (the power engineering industry and services remain a Focus on investments in industrial assets and activities outside the energy sector (the power engineering industry and services remain a

major pillar of EP INDUSTRIES)

EP INDUSTRIES includes the following companies: SOR, EGEM, ELEKTRIZACE ŽELEZNIC, MSEM, VČE-montáže, SEG, PROFI- ELRO, SERW and První brněnská strojírna; currently negotiating the acquisition of a part of SES Tlmače

MIBRAG and Energotrans transactions (Jul 2011)

EPH signed contract to purchase remaining 50% stake in MIBRAG Simultaneously, EPH sold Energotrans to ČEZ

Both transactions are currently awaiting Antitrust Office approval

One Important Status Change

PG SILESIA started commercial operations (Apr 2012)

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Summary

With the exclusion of one-offs, EP Energy (a EPH division) in the last years kept delivering stable EBITDA of EUR 320m

293

341 329

289 321 322

EBITDA of EP ENERGY Companies

(EUR million)

Major one-off items included (c-32.3mEUR)

•Czech CO2 tax impact in 2011 c- EUR13.3m (also applicable in 2012)

•Lower coal sales due to maintenance of Lippendorf plants c-EUR13m

•Trades concluded in 2008 with impact in 2011 c-EUR6m

Major one-off item included (c+18mEUR)

•Exceptional margin from power trades

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2008A 2009A 2010A 2011A 2012Plan

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Key Businesses: PPF Real Estate

Project of the future Moscow Telecom City

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PPF Real Estate Holding

Company Profile

PPF Real Estate Holding B.V. consolidates all of PPF Group’s Real Estate activities and functions as a real estate investor, developer, owner and professional advisor

It currently belongs to the largest market players in both the Czech Republic and Russia with the future aim of becoming a global player in the real estate business

Due to its size, its activities are split into two branches: PPF Real Estate CEE and PPF Real Estate

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Russia.

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Real Estate at PPF is Changing

Organizational and Personnel changes

A clearly-defined new investment strategy IRR above 20%

Profit criteria

▫ CEE > EUR 50 million

▫ Rest of the world > EUR 100 million Gradual disposal of all non-core projects Gradual disposal of all non-core projects

Emphasis on a low number of projects with high potential

No minority shareholdings in the future

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Business Highlights 2011

Two regional retail centers opening in Russia in late 2011

Ryazan: Investment – EUR 154 million, 54.000 m2 GLA, NOI: EUR 15.0 million

Astrakhan: Investment – EUR 71 million, 37.000 m2 GLA, NOI: 9.0 million

Reality CZ Closing – major transaction in Czech Republic

Disposal of 25 buildings, IRR > 20%, Proceeds: EUR 90 million

Acquisition of a majority stake in a development of a large scale logistic project in Moscow:

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Acquisition of a majority stake in a development of a large scale logistic project in Moscow:

Investment – EUR 305 million, 360.000 m2 GLA

Acquisition of two landmark buildings on Parizska, the most luxurious of Prague’s high-end

shopping streets

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Real Estate Strategy

Full value chain presence

Cash-

generation focus

Objective to generate sufficient cash flow to REH shareholders

Key drivers

Net rental income focus

Presence across the real estate value chain in order to capture maximum volume of absolute proceeds

Real estate investment advisory and development

Real estate investment activity and construction

Center management

focus

Strong IRR drive

Net rental income focus

Prefer instant cash proceeds to longer recovery

Investment into highly profitable new development projects

Strong focus on maximizing IRR, even in “tough times”

Interesting opportunity to generate above average IRR seen in

distressed investment opportunities

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Future things to look forward to

Continuous development of the Russian landmark projects such as:

Moscow TelekomCity – a large high-tech office park. Investment: EUR 885 million, GLA 406,000m

²

, NOI: EUR 103 million

Mitino Shopping Center, Moscow – Investment: EUR 140 million, GLA 45,000m

²

, NOI 25 million South Gate Industrial Park – a logistics park – Investment: EUR 305 million, GLA 553,000m

²

,

Consolidation of all logistics projects under one umbrella platform – with a potential of up to 1.5 million m

²

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Consolidation of all logistics projects under one umbrella platform – with a potential of up to 1.5 million m

²

of GLA – putting it in the top 3 in the whole of Russia

Very active search for further investment opportunities throughout the world – We are currently

investigating opportunities in Turkey, Germany, USA and Holland, each with a minimum investment volume of EUR 100 million

Future NOI value of all current projects in development if completed ~ EUR 270 million / year

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South Gate Industrial Park TelecomCity Moscow

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Thank you!

Slide 17

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Czech Brewing Industry

Short Summary

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From Dispersed Ownership to Concentration and Back

Hundreds of industrial, castle, monastery etc.

breweries existed in Bohemia at old times (similar like in Germany – even now)

Breweries also differed according to ethnic

principles: Czech vs German (Pilsen-Plzeň, Budweis- České Budějovice)

Industrial brewing led to concentration: example of merger between (Czech) Pilsner Urquell and

(German) Gambrinus breweries in the 1920s in Pilsen

After World War II (also under Communist rule)

there were cca 45 industrial breweries in CZ

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From Dispersed Ownership to Concentration and Back

After so-called Velvet Revolution the Czech Brewing

Industry became an object of interest from abroad: both private equity and (mainly) large international beer

companies entered the market, acquiring breweries

Examples of unsuccessful acquisitions, without respect to the Czech beer culture: BASS of UK acquiring Prague-

based Staropramen in mid-90s - quick exit, selling to Belgian Interbrew

The best success story is Pilsner Urquell´s acquisition by

The best success story is Pilsner Urquell´s acquisition by South African Breweries in 1999: SAB made PU its

international premium brand, exporting into 100 countries

Cca 30% of the market is in Czech hands – private companies

Budweiser (Budejovicky Budvar) represents the only

exception, being so-called National Enterprise, the unique

of its kind, owned by the Czech government (Ministry of

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International vs Czech

Pilsner Urquell, Radegast, Kozel – SABMiller

Staropramen, Braník,

Ostravar –

Lobkowicz, Jezek, Janacek, Platan – K Breweries

Holba, Zubr, Litovel – Moravian- Silesian Breweries (PMS)

Bernard – individual owner together with Belgian Duvel Braník,

Ostravar – Molson Coors

Starobrno, Krusovice, Zlatopramen - Heineken

Bernard – individual owner together with Belgian Duvel Moortgart

Svijany – individual owner

…and many others (incl.

microbreweries)

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