1. CSIA 2009 www.s-analytica.ru

2. 2 S – Analytica Success factors and basis for making informed business decisions Management reporting Financial statements based on IFRS Management data: −commercial data −production data −fixed assets −loans −taxes Reliability of information Timeliness Business planning Availability of the enterprise model for business planning Business planning format = reporting format Reliability of model parameters and data Use of actual historical data as a basis for business planning CSIA www.s-analytica.ru

3. 3 CSIA CSIA (corporate system for information and analysis) – a software module allowing to form reporting by transformation of accounting data automatically Bookkeeping system 1 C Galaktika Parus SAP Other CSIA IFRS financial statements P&L Cash Flow Balance sheet Management data Production cost breakdown Sales price Purchase price Inventory Quantities produced Quantities sold Other CSIA is based on 1C, but allows to use any kind of accounting system to form IFRS based reporting Management reporting www.s-analytica.ru S – Analytica

4. 4 CSIA CSIA approach. Basic accounting blocks. 60 Suppliers 20 Production 90 Sales 67 Borrowings 68 Taxes 01 Fixed assets Loans Repayment Interest Taxes accrual Payment of taxes VAT Capex Depreciation Cost price of sold fixed assets Cost price of sold services Finished products Shipping produce Payment for products and services Sale of products and services Payment for supplies Shipping supplies Use of materials in production Utilities and services 62 Customers 51 Cash 10 Materials 43 Output Each node of the diagram is represented in the bookkeeping CSIA construct a table of correspondence between bookkeeping and managements accounts The management reports are then produced via the management accounts CSIA uses the principle of dual recording www.s-analytica.ru S – Analytica

5. 5 Business planning Actual historical data obtained from CSIA are used actively Reporting are of the same format as business planning format Business plan tables are constructed as immediate extensions of tables with actual data Running monthly business planning is performed www.s-analytica.ru CSIA S – Analytica

6. 66 Semi-finished Product E Semi-finished Product E Semi-finished Product A Semi-finished Product A Finished Product A Finished Product A Production cost breakdownInventoryQuantity producedQuantity for captive useQuantity sold Cost of salesCost priceSalesSales priceMargin CSIA www.s-analytica.ru S – Analytica

7. 77 (kRUR) 11 months 2008 Production of semi-finished product E 651 629 (tonne)44 673 RUR/kg14,59 Raw materials245 880 Raw material A158 334 (tonne)73 668 RUR/kg2,15 Raw material B86 168 Other materials1 377 Semi-finished products329 968 Utilities203 424 Electrical energy91 787 Steam45 709 Water37 339 Other utilities28 588 Direct labor11 818 Direct overheads128 963 By-product credits-268 424 Captive use of semi-finished product E 651 629 (tonne) 44 673 for semi-finished product A 547 621 (tonne) 37 544 RUR/kg 14,59 for semi-finished product B 104 008 (tonne) 7 129 RUR/kg 14,59 (kRUR) 11 months 2008 Production of finished product A 541 468 (tonne) 35 763 RUR/kg 15,14 Raw materials 2 709 Semi-finished product A 538 759 (tonne) 35 763 RUR/kg 15,06 FINISHED PRODUCT Opening inventory 409 (tonne) 26 RUR/kg 15,73 Total input 541 468 Production 541 468 (tonne) 35 763 RUR/kg 15,14 Total output 540 063 Cost of sales 540 063 (tonne) 35 671 RUR/kg 15,14 Closing inventory 1 801 (tonne) 117 RUR/kg 15,38 SALES Cost of sales 540 063 (tonne) 35 671 RUR/kg 15,14 Commercial cost 16 737 Revenue 623 942 (tonne) 35 671 RUR/kg 17,49 Margin 67 143 (kRUR) 11 months 2008 Production of semi-finished product A 687 596 (tonne)45 643 RUR/kg15,06 Raw materials3 759 Utilities194 158 Electrical energy 12 050 Steam141 053 Other utilities41 055 Semi-finished products569 831 Semi-finished product E547 621 (tonne)37 544 RUR/kg 14,59 Other semi-finished products22 210 Direct labor4 972 Direct overheads68 943 By-product credits-154 066 SEMI-FINISHED PRODUCT A Opening inventory4 137 (tonne)275 RUR/kg15,05 Total input from production687 596 Total output683 871 Captive use for Finished Product A538 759 (tonne)35 763 RUR/kg15,06 Captive use for semi-finished product D145 112 (tonne)9 632 RUR/kg15,06 Quantity sold0 Closing inventory7 862 (tonne)523 RUR/kg15,06 Step-by-step production cost breakdown from Raw materials -> semi – finished products -> finished product www.s-analytica.ru S – Analytica

8. 88 BALANCE SHEET as of 30.11.2008 kRUR Tangible assets and intangible assets 1 648 953 Fixed assets1 648 953 Finished goods value in inventory 39 780 Other inventories value151 103 Customers receivables64 933 Payables-138 860 Other debtor and creditor-770 Deferred expenses9 258 Working capital125 444 TOTAL INVESTED CAPITAL 1 774 397 Capital-1 000 480 Retained earnings508 748 Shareholders equity -491 732 Cash available11 007 Short term borrowings-174 080 Long term borrowings-1 139 548 Net Indebtedness-1 302 621 Tax payable/receivable19 955 TOTAL FINANCING-1 774 397 CASH FLOW STATEMENT 11 months 2008 kRUR EBIT5 989 Depreciation213 288 Gains & losses on sales of fixed assets 425 Income tax-1 865 Change in taxes payable & receivable9 656 Change in working capital-109 330 Finished goods value in inventory -18 414 Other inventories value -14 581 Customers receivables -48 492 Payables 18 925 Other debtor and creditor -45 130 Deferred expenses -1 647 Cash flow from operating activities118 162 Fixed assets expenditures-58 251 Acquisition of investment and shares Proceed from the sale of fixed assets88 552 Proceed from the sale of investment and shares Cash flow from investing activities30 300 loans received56 011 loans paid (including interest)-216 680 Dividends0 Capital increase0 Cash flow from financing activities-160 668 NET CHANGES IN CASH AND CASH EQUIVALENT -12 206 opening cash22 533 closing cash10 327 PROFIT & LOSS STATEMENT 11 months 2008 kRUR NET SALES1 795 055 Product A623 942 Product B185 581 Product C480 703 Services161 759 … Transportation cost- 68 163 Product A-16 737 Product B-1 015 Product C-22 766 … Costs of goods sold- 1 440 253 Product A- 540 063 Product B- 167 001 Product C - 391 956 Services- 145 583 … GROSS MARGIN286 639 Product A67 143 Product B17 565 Product C65 981 Services16 176 … Commercial & Admin costs-273 414 Gains & losses on sales of fixed assets-425 Miscellaneous financial gains & losses-18 797 Other gains & losses11 986 EBIT5 989 Borrowing charges-126 215 Gains & losses on exchange rate and currency conversion -80 930 Total сharges and income on net indebtedness -207 145 Current income taxes-1 865 NET RESULT-203 021 Financial statements www.s-analytica.ru CSIA S – Analytica

9. 9 ItemActivity descriptionResponsibleSupportRemarks 1. Provide bookkeeping data from the Client’s bookkeeping system ClientS-Analytica In the form of DBF file; in case of 1C system only access to the Client’s accounting system is needed 2. Development of the format of management reports including financial statements and management data Client S-Analytica S-Analytica will facilitate the development of the formats 3. Examination and optimization of bookkeeping accounts and analytical data S-AnalyticaClient S-Analytica will analyze analytical data used in bookkeeping. In order to form management reports and reach a certain level of detail, in some cases it is necessary to add data to certain accounts. Client input required for adding the analytical data to bookkeeping accounts 4. Develop a table of correspondence between bookkeeping and management accounts S-AnalyticaClient The management reports are then produced via the management accounts, which reflect the economic essence of the business. 9 CSIA www.s-analytica.ru S – Analytica

10. 10 ItemActivity DescriptionResponsibleSupportRemarks 5. Develop a direct interface between the management accounts and management report captions based on CSIA software S-AnalyticaClient Client will check that all the amounts reported under each management report caption are justified 6. Prepare final version of CSIA settings for the management reporting S-Analytica 7. Installation of a local component of CSIA on each enterprise, and the central component - at the head office. S-AnalyticaClient Every day local components of CSIA receive data transformed from bookkeeping databases of the enterprises. Then the data is automatically transferred from the local CSIAs to the central component (via FTP). 8. Creation of a spreadsheet- based model of an enterprise for business planning. S-AnalyticaClient A distinctive feature of our approach to business planning is active use of actual data obtained via CSIA. Tables of a business plan are of the same format as management reports. Timely updating of the business model with actual data allows to organise running monthly planning. 10 CSIA www.s-analytica.ru S – Analytica

11. 11 CSIA CSIA software module set up for management reporting CSIA installed locally (the local system) and at the head office (the central system). Established connections between local and central systems. Instruction on the use of CSIA including a)a table of correspondence between bookkeeping and management accounts b)a table with formulas based on management accounts for each management report caption c)Instruction how to prepare the reports A spreadsheet-based model of an enterprise for business planning. Training of specialists on working with CSIA and business plan model www.s-analytica.ru S – Analytica

12. 12 Month 1.Month 2.Month 3.Month 4. 12345678910111213141516 Activity description - Contract award - Kick-off meeting - Provide bookkeeping data from the Client’s bookkeeping system - Development of the format of management reports including financial statements and management data - Examination and optimization of bookkeeping accounts and analytical data - Develop a table of correspondence between bookkeeping and management accounts - Develop a direct interface between the management accounts and management report captions based on CSIA software - Prepare final version of CSIA settings for the management reporting - Installation of a local component of CSIA on each enterprise, and the central component - at the head office -Creation of a spreadsheet-based model of the enterprise for business planning 12 \ www.s-analytica.ru CSIA S – Analytica