EBRD Your Partner in North-West RussiaTetsuya Uchida

Head of EBRD St. Petersburg office10 November, 2005

MoscowSmolensk

Bryansk

OryolKursk

Belgorod

Voronezh

Kaluga

Tula

LipetskTambov

Ryazan

TverYaroslavl

KostromaIvanovoVladimir

Pskov Archangelsk

Murmansk

Nenets AO

KomiVologda

Karelia

Novgorod

Kaliningrad

Rostov-on-Don

Volgograd

ElistaStavropol

Krasondar

Groznyi

Astrakhan

N.Novgorod

Perm

Bahkortostan

Orenburg

SamaraSaratov

PenzaUlyanovskTatarstan

Udmurtya

Komi-PermyatskiKirov

Mordovia ChuvashiaMariy El

Chelyabinsk

Khanty-Manskiysk

Tyumen

Kurgan

Ekaterinburg

Salekhard

Taimyr

Evenkysky

Omsk

Novosibirsk

Tomsk

Altai-T

Altai-O

Kemerovo

Krasnoyarsk

Khakssia

Tyva

Ust-Ordynsky

Irkutsk

Buryatia

Chita

AginskyBuryatia

Sakha

Magadan

Koryask

Amur

Jewish

Khabarovsk

Chukota

Kamchatka

Primorsk

SakhalinMakhachkala

Maikop

Nazran

Cherkessk

Vladikavkaz

Nal’chik

89 regions and 7 Federal Districts89 regions and 7 Federal Districts

NorthNorth--West Federal DistrictWest Federal District

Pskov Archangelsk

Murmansk

Nenets AO

KomiVologda

Karelia

Novgorod

St.Petersburg

Kaliningrad

Iron ore

BauxiteApatite

Nickel

Oil & Gas

Timber

Titanium

Large projects

SME financing

Growth above 5%

Decline above 5%

Region: NORTH-WESTArea: 1.68 mln km2

Population: 15 mlnCities: 152Capital: St. Petersburg

10% of Russian population 28% below poverty line12% of workforce in SME9% of GDP 7% of FDI

80% of shipbuilding40% of timber productionFDI grows in Leningrad Oblast, St. Petersburg, Novgorod.

Current agendaCurrent agendao Key transport hub to Europeo St. Petersburg tourism and property

PotentialPotential: Agribusiness, general industry, infrastructure, tourism and p: Agribusiness, general industry, infrastructure, tourism and propertyroperty

RiskRisk: : Average risk areaAverage risk areaLower risk in Novgorod and St. Petersburg Lower risk in Novgorod and St. Petersburg Higher risk in Komi Higher risk in Komi

A network of 32 offices in 27 countries

EBRD EBRD RResident esident OOffices ffices

St. Petersburg RO

Moscow RO Ekaterinburg RO

Vladivostok RO

Rostov RO (2006)

Samara RO (2005)

High Market Potential

Good Market Potential

• EBRD has presence in 47 out of 89 regions. • A “real” presence is maintained in 19 regions

in which the Bank has 4 or more big projects.

International financial institution est. 1991, owned by 62 national and supranational shareholdersPromotes market-based economies in 27 countries in central & eastern Europe and the former Soviet UnionCommitted cumulatively €26.2 billion for 1,167 projects to dateMobilized additional €55.7 billion of cumulative businessCapital base of €20 billion0

5

10

15

20

95 96 97 98 99 00 01 02 03

Audited May 2004

What is EBRD?

EBRD offers a wide variety of productsEBRD offers a wide variety of products

Loans 81%Loans 81%Guarantees 14%Guarantees 14% Equity 5%Equity 5%

Specific risk guarantees (i.e. political, commercial risk participations)Commodity-backed instruments (i.e. warehouse receipts)Trade facilitation program (with participation of local banks)

Corporate or Project specific

Non or limited recourse to sponsors

Syndicated loans (w. underwriting)

Parallel with ECA’s, other IFI’s or Banks

Hard / local currency

Floating/fixed rates

Venture CapitalPrivatisationsNew EquityQuasi-equity‘Portage’

Business volume, Portfolio and Pipeline in RussiaBusiness volume, Portfolio and Pipeline in Russia

Largest investor in RussiaSince 1991 the EBRD’s a Cumulative Business Volume is €5.9 billion (this is 23% of all projects financed by EBRD)At the end of 1st quarter 2005 the Portfolio Stock was at €3.9 billion and Pipeline projects were at €3.8 billion 76% of the Bank’s portfolio in Russia was the private sector, while 81% was debt, 14% equity and 5% guarantee

0

1

2

3

4

5

6

7

1991-1994 1997 2000 2003

Annual Business Volume (cumulative '91-'94)

Net Cumulative Business Volume

€ billionCumulative

Business Volume

Russia Becoming the Biggest Focus

Central Asia7%

SEEC30%

Central Europe40%

Russia23%

Net cumulative commitments €26.2 billionof which €5.9 billion in Russia

St Petersburg City14%Moscow City

11%

Moscow Oblast7%

Samara Oblast4%

Nizhny-Novgorod R.3%

Volgada Oblast2%

Yamalo-Nenetsk R.3%

National14%

Multi-Regional21%

Others17%

Kamchatskaya Oblast2%

Perm Oblast2%

Russia Portfolio by Region

Russia Portfolio

Stock €3.75 billion

Telecoms & Media 3%

Infrastructure 11%Natural

Resources 9%

Power & Energy

5%

General Industry

20%

Small Business

3%

Equity Funds8%

Transport15%

Property & Shipping

3%

Financial Institutions

14%

Agribusiness 9%

Russia Portfolio Stock by Sector

Portfolio Volume €3.75 billion

EBRD in NorthEBRD in North--West RussiaWest Russia

Priority region for the Bank

Total cumulative portfolio of signed projects – EUR 1.5 billion (2005)

Well diversified portfolio: municipal, food processing, general manufacturing, forestry, telecommunications, property etc

70% of the portfolio concentrated in St. Petersburg and Leningrad oblast

Major projects in NorthMajor projects in North--West Russia 1West Russia 1

Municipal & Infrastructure– St.Petersburg:

Municipal Support Project;Toxic Waste Clean-Up Project;South Waste Water Treatment Plant (22 September 2005- opening ceremony);Flood protection barrier;Ring Road

– Arkhangelsk Municipal Services Improvement Programme

Food Processing– Dirol Chewing Gum Factory (Novgorod)– Baltika Brewery– Vena Brewery

Major projects in NorthMajor projects in North--West Russia 2West Russia 2

Property & Tourism

– Nevsky 25 Business Centre

– Radisson SAS Hotel

Other Industries

– North-West GSM (telecommunications)

– Air Cargo Terminal Pulkovo (transport)

– Lenenergo (power & energy)

– Severstal-Arselor JV (steel making, Vologda region)

– Pestovo Novo Sawmill (UPM Kummene) (forestry, Novgorod region)

Projects signed in 2004 and pipeline 2005Projects signed in 2004 and pipeline 2005

Signed in 2004:Nokian Tyres (Leningrad oblast; 22 September 2005- opening ceremony)Uralkali II (Baltic Bulker Terminal, St. Petersburg)Pokrov Glass Plant (Vologda)Power Machines (St. Petersburg)Lenta cash & carry hypermarkets (S. Petersburg)Komi Municipal Water Services Improvement Programme (Komi)

Total signed in 2004 – EUR 160 millionTotal pipeline 2005 is estimated at EUR 250 million

Strengths of the EBRDStrengths of the EBRD

Strong, internationally recognised financial partner with long-term perspective and mission;

Willing to share risks, including political risks (customised to each transaction);

International institution;

Preferred Creditor Status;

Longer term perspective than that of many investors in the CEE & CIS region (i.e. medium- to long-term financing);

One of the few sources of limited recourse finance for projects in Russia and Central Asia;

Excellent working relationships with governments;

Political leverage due to EBRD’s unique mandate and shareholders’ structure

Portage EPortage Equity Financequity Finance

The EBRD purchased a 20% equity stake in the Russian company established by Toyota in the amount of EUR 15 million

EBRD exits through a put and call arrangement to Toyota

Diversify Russian economy

Maturity 7 years

Pricing equal Toyota’s debt funding costs plus a marginNote: details are simplified for case study

Equity

EquityToyota EBRD

Toyota Russia LLC

How to contact us

Moscow Resident OfficeVictor Pastor, Director, Russia TeamTel: +7-095-787-1111 / fax: 787-1122

St. Petersburg Resident OfficeTetsuya Uchida, Head of OfficeTel: +7-812-703-5525 / fax: 703-5526

Procurement Opportunities and General Informationvia web site: www.ebrd.com

PublicationsTel: +44-20-7338-7553 / fax: +44-20-7338-6102