1. Establishing a factoring business in Russia? Factoring market in Russia and CIS: market trends and future scenarios. ILYA POKAMESTOV Business Development Director, Financial Company POLITEKS(Russia)

2. POLITEKS LLC was created in 2003 as an affiliate company of B&N BANK. POLITEKS offers financial lease (leasing) and a whole range of factoring services. In 2008 a limit of operation of financial lease reached 1,1 billion RUB. During operating time such companies became our clients: SBARRO, REN-TV, OOO City Bowling, OAO Volgatelecom, OAO Ulyanovskenergo and others. May 2011 POLITEKS commenced operations of factoring services. November 2011 POLITEKS member of IFG. ABOUT POLITEKS

3. B&N Bank – is a successfully developing universal bank with a wide sales network over 120 offices in different regions of the Russian Federation. B&N Bank is among TOP-50 Russian banks. As of included in TOP-30 biggest Russian banks according to CBR Consolidated Statistical Data. B&N BANKS NETWORKS Moreover, the Banks sales network is supplemented by branches of two banks consolidated in the banking Group (14 points of Bashinvestbank and 27 points of Vyatka-Bank).

4. RUSSIA-Market size Growth Rate [CAGR, 2005-2007] Market Size, [mln. euros] Bubble size shows GDP penetration China Russia India Brazil UK

5. Market Volumes 20052006200720082009 45 864 2010 +58% 0.8%1.1%1.6%2.1% 2.7%2.7%3.0%3.0% Forecast Source:Expert RA, AFC analysis Market historical volumes and forecast [mln. euros] Penetration [% to GDP] 882 bln. RUB-TURNOVER 2011, 165 bln. RUB-OUTSTANDING Dec. 2012, Forecast 2012-1500 bln. RUB

6. Germany Finland UK Russia Source:FCI, AFC analysis Benchmarking against mature markets Financing per client, mln. euros

7. Segmentation 10% 47% 43% 2011 49% 36% 14% 2011 LE ME SE 5700 Clients 17200 Debtors 73 Operators

8. Regional aspects Factoring clients base 32642395875,000 20022003 2007 Source:Expert RA, AFC High Coverage Medium Coverage

9. Market players Factoring market: breakdown by type of player [2011] 62% 35% 3% Factoring departments under bank's umbrella Factoring companies that operate with banking mother structure Non banking factoring companies Source:Expert RA, AFC analysis

10. Market players Source:Expert RA, AFC analysis Label

11. Market Trends Consentration IT problems HR problems Legal aspects Risk issues No infrastructure Lobbying

12. Market Trends Russia's potential to play a major role in the world economy is to be underpinned through the establishment of a financial hub So far international factoring in Russia takes only 1% of the factoring turnover, far behind the world's 11%

13. Tough Way suggests the appearance of the state regulator in the factoring market. I.E., the licence regime would appear that would be the main lever of the market Effectively this would bring the market under state control, undermining its flexibility and adaptability Regulations-bound scenario

14. Regulations-free scenario Liberal Way means, that factoring market will be developed with a self-regulation scheme. In this case – The Russian Association of Factoring Companies will become the main regulation body on the market. Flexibility but "fair-play" rules followed

15. To start factoring business in Russia: Challenges Legislation Lack of professionals IT platforms Unstable macro and micro perfomance Political risks

16. Gross margins Huge potential market Leading role in community CIS markets Low entrance barriers To start factoring business in Russia: Benefits

17. Affilate Company Factoring departments in international Banks Buy out Russian Factoring Company Joint venture with Russian Factors Joint venture with international investors Ways to enter Russian Factoring market:

18. FACTORing in CIS Ukraine Belorussia Kazakhstan Moldova Armenia

19. Questions? Many Thanks!

20. Contacts: ILYA POKAMESTOV www.politeks.ru +7(495) 748-50-50 Director of Business Development Financial Company POLITEKS i.pokamestov@politeks.ru www.factoringpro.ru +7(499) 940-8798 General manager manager@factoringpro.ru