FINANCIAL MARKET SERVICES

Transcription

1 FINANCIAL MARKET SERVICES Moscow,

2 HISTORY. ACHIEVEMENTS REGION Investment Company is established REGION s Board of Directors decided to develop asset management business Regional association NAUFOR RА assigned an AA rating to REGION IC (extra-high reliability) Pension Fund of the Russian Federation and REGION Asset Management signed the agreement for the management of pension assets REGION Group of Asset Management Companies formed the first Close Share Investment real estate Fund REGION became one of the top three biggest companies in Russia in terms of transactions on bonds market REGION Depository Company became the first among specialized depositaries to gain right of control over coverage for mortgage securities issue REGION became the TOP-5 of investment companies of the Russian financial market according to Publishing House Kommersant REGION Group of Asset Management Companies became the TOP-10 of management companies in Russia in terms of volume of assets under management REGION Group of Asset Management Companies became the largest in Russia in terms of the number of non-state pension funds serviced REGION became the biggest operator of Moscow exchange in the main bidding operations and negotiation transactions with bonds REGION Asset Management won the competitive tender for the right to management of savings accumulations for Housing programs for the military REGION Broker company became the TOP-3 of bookrunners RATINGS REGION Investment Company has been assigned long-term and shortterm credit ratings В-/С and national scale rating rubbb. REGION Investment Company А+ (high credit profile, first level) РМ2 (high quality level of risk management) REGION Brokerage Company ААA (maximum security) А+ (high credit profile, first level) REGION Group of Asset Management Companies ААА (maximum security) REGION Depository Company ААА (maximum security) А+ (high credit profile, first level) REGION Group of Asset Management Companies А++ (exclusively high (the highest) level of Reliability and quality of services) REGION Depository Company А++ (exclusively high (the highest) level of Reliability) REGION Depository Company ААА (the highest level of reliability (PARTAD)) PARTAD certificate of conformity to the requirements of depositary activity standards MARKET POSITIONS Winner of the Finance Elite of Russia Award in category: Grand Prix: Asset Management company of the year Company of the year on the bond market Winner of the Finance Elite of Russia Award in category: Company of the year on the bond market, Company of the year in the management of pension assets Winner of the Finance Elite of Russia Award in category: Grand Prix: Investment company of the year Winner of the Stock Market Elite Award in the Company of bond market category Winner of the Stock Market Elite Award in the Business Development category Awarded in three categories of Cbonds Award : The best investment bank (company) in terms of dealing with II-III Tier Borrowers The best Broker company in the bonds market The best trading in the bond market The best deal of the primary placement of corporate bonds

3 STABLE, PROFITABLE, MULTI-PURPOSE GROUP KEY FIGURES GROUP STRUCTURE AND LINES OF BUSINESS Asset Management () billion, rub Total assets under management 192,84 Equity 3,00 Pension accruals of non-state funds under management 44,82 Pension reserves of non-state funds under management 34,77 Amount of trust agreements of pension reserves with Non-state Pension Funds 22 Amount of trust agreements of pension accruals with Non-state Pension Funds 26 Pension accruals of Pension Fund of the Russian Federation under management 1,72 Separately managed accounts 46,48 100% REGION Brokerage Company OOO Securities Services 100% REGION Asset Management ZAO 100% REGION Depository Company ZAO Specialized Depositary REGION Investment Company AO Financial Consulting, Investment Banking REGION Leasing ZAO Leasing Services 100% 100% 100% REGION REGION Portfolio REGION Trust Development Investments OOO OOO OOO A s s e t M a n a g e m e n t 100% 100% RE-CON ZAO Consulting Services 100% REGION Infrastructure Public Private Partnership Sales transactions () billion, rub Total trading volume ,21 Bonds trading volume 6 806,44 Equities trading volume 3 750,46 Investment banking ( ) Amount of placed issues 46 Quota, billion rub 80,35 23,34% SHAREHOLDING STRUCTURE REGION Investment Company AO 33,33% 33,33% 10% Consolidated financial performance Sergei KOROL Sergei SUDARIKOV Andrei ZHUIKOV Operating income, billion rub 7,2 3,9 Net profit, billion rub 3,9 1,4 Net margin, % WHPA Limited Ultimate beneficiary: SUDARIKOV S. (50%) and Korol S. (50%)

4 EXPERIENCED TEAM OF MANAGERS Sergei Sudarikov, Partner, Chairman of the Board of Directors. Corporate Strategy, Relations with Major Clients. Joined the Group in1995. Work experience since Before joining the REGION Group worked in the Elcom-bank. Graduated from the Mechanics Faculty of the Lomonosov Moscow State University and All-Russian Distance-Learning Institute of Finance and Economics. Sergei Korol, Partner. Joined the Group in Work experience since Before joining the REGION Group, worked in the position of the Head of Asset Management Department in BrokerCreditService and Managing Director of RN-Trust Management Company. Graduated from Novosibirsk State Technical University. Alexei Kuznetsov, Managing Director. Trade operations. Member of committee on fixed-income securities of ZAO Stock Exchange of Moscow Interbank Currency Exchange. Joined the Group in Work experience since Before joining the REGION Group, worked in OJSC Finance-industrial company. Graduated from Faculty of Electronic Equipment Design and Technology of Bauman Moscow State Technical University. Sergei Menzhinsky, General management of the Group s operations. Joined the Group in Work experience since Worked in various credit organizations including Promradtekhbank and Russian Agricultural Bank, held the position of the Chairman of the Board of the National Standard Bank. Graduated from the Mechanics Faculty of the Lomonosov Moscow State University and Russian Presidential Academy of National Economy and Public Administration. MBA from Moscow International Higher Business School MIRBIS. Andrei Zhuikov, Partner. Asset Management. Member of the Board of Directors of Non-commercial Partnership National League of Management Companies, Chairman of Committee of the National Association of Pension funds (NAPF) on investment operations of the Non-state Pension Funds. Joined the Group in Work experience since Graduated from Zhukovsky Air Force Engineering Academy and All- Russian Distance-Learning Institute of Finance and Economics. Evgeny Litvin, Fund Raising, Public Private Partnership. Joined the Group in. Work experience since Before joining the REGION Group worked in investment financial company Turbo, investment company Baltonexim Finance, KIT Finance Investment Bank, BALTINVESTBANK. Furthermore, in worked as an advisor to vice-governor of the Leningrad Region. Graduated from Saint Petersburg State University of Economics and Finance. Alexei Abolyaev, Asset Management, Relations with Strategic Clients. Joined the Group in Work experience since Before joining the REGION Group worked in Russian Regional Development Bank. Graduated from Tsiolkovsky Russian State Technological University. Ph.D. in Economics. Valery Pyatnitsev, Strategic Investments Joined the Group in Work experience since Before joining the REGION Group worked in RN-Trust Management Company. Graduated from Moscow State Mining University. Ph.D. in Economics. Alexander Gunya, Fund Raising Joined the Group in. Work experience since Before joining the REGION Group worked in Rye, Man&Gor Securities JSP Investment company, IB Trast, Rosbank, Alfa-bank. Graduated from Moscow State Technical University of Electronics and Mathematics and Russian Academy of Foreign Trade. EMBA from IMD International Business School. Vyacheslav Doroshko, Banks Relations. Joined the Group in Work experience since Before joining the REGION Group worked in Alef-bank, Independent Bank of Development, Comertbank. Graduated from Plekhanov Russian University of Economics.

5 ASSET MANAGEMENT Ekaterina Zaitseva Relations with Institutional Clients Full range of pension money management services REGION Group of Asset Management Companies is one of the acknowledged leaders in the Russian market of asset management. The group specializes in the management institutional clients assets. The Group comprises four Management Companies, each of which has its own specialization: REGION Asset Management asset management of non-state pension funds REGION Portfolio Investments individual trust management of corporate clients assets REGION Development management of specialized real estate funds REGION Trust individual trust asset management including foreign assets Management of large corporate clients free liquidity Management of investment portfolios with the guarantee of subsequent return of the securities Classical developer and annuity real estate close share investment funds Project-specific close share investment funds (Shares/Credits/ direct investments) OUR CLIENTS: MARKET POSITIONS, I half-year of * REGION Group of Asset Management Companies is one of the leaders in the market of institutional investors asset management. Among the Group s clients there are 25 largest Russian non-state pension funds that service pension plans of the biggest Russian corporations such as: Position Rating Value, million rub 4 Total assets under management Separately managed accounts Pension reserves of non-state funds under management Pension accruals of non-state funds under management Pension accruals of Pension Fund of Russian Federation under management * Source: Expert RA Rating Agency

6 TRADE OPERATIONS Alexei Kuznetsov trading Trade operations at the clients requests Conclusion of direct and reverse REPO transactions REGION Brokerage Company provides an entire range of services to its clients in relation to transactions in the Russian and international financial markets. In this case our clients have the opportunity to execute transactions with a Russian or European licensed broker as an intermediary. REGION Brokerage Company effects transactions with all financial instruments available in the stock market including shares, bonds, bills, term contracts, units of investment funds on behalf of the clients. Market maker services Execution of transaction without preliminary depositing Marginal crediting Depositary services for broker accounts CORPORATE BONDS: MAIN TRADING MODE T0, NEGOTIATED TRADES AND CCP NEGOTIATED TRADES, BILLION RUBLES 784,63 866,95 933,91 Position MARKET POSITIONS* Ranking Value, trillion rub 7 Total trading volume 2,04 431,95 6 Brokerage turnover 1,88 5 Exchange turnover 1,90 * Source: NRA, I quarter of * Source: Moscow Exchange 1 Corporate bonds: mane trading mode, negotiated trades and CCP negotiated trades, bln rub 933,91 Source: Moscow Exchange,

7 INVESTMENT BANKING. ATTRACTING FINANCING Yevgeni Litvin Attracting debt financing Alexander Gunya Attracting debt financing Initial and secondary public bonds offering Organization and support of offer acceptance by the issuer REGION Group provides an entire range of services in relation to fund raising using various financial instruments. Our specialists are involved in all stages of common projects in the capital markets: Analysis of clients needs and potential opportunities Choice of optimum form of borrowing: credit, bonds, bills Organization of fund raising Maintaining market positions for public instruments Organization of public bond exchange Organization of bill program Initial and secondary public offering of shares Organization of private securities issue POSITIONS IN BOOKRUNNERS RANKING* ,45 26, , ,35 131, III quarter of MARKET POSITIONS, III QUARTER OF * Position Ranking Value Ranking of bookrunners 3 Market issues (million rub) All issues (million rub) Total number of issues (units) 54 * - Source: Cbonds in terms of volume, bln rub position in ranking * - Source: Cbonds

8 THE LARGEST IMPLEMENTED PROJECTS Binbank VEB-Leasing Issue BО-04, BО-05, BО-06, BО-07 Republic of Sakha (Yakutia) Issue Intesa Bank Issue БО-03 Issue BО-03, BО-04, BО-06, BО-07, BО-08, BО-09, BО-10, BО-11, BО-12, BО-14 VEB Bank of Development Issue 21 Credit Europe Bank Issue BО-06, BО-07, BО-08, BО-09, BО-14 Credit Bank of Moscow Issue BО-09 RUB RUB RUB RUB RUB (secondary placement) RUB Tatfondbank Bank Rossiysky Capital Moscow Industrial Bank Metallinvestbank UniCredit Bank Russian Agricultural Bank Republic of Sakha (Yakutia) Issue BО-07, BО-13, BО-14 Issue BО-03, BО-04 Issue 01 Issue BО-02 Issue BО-22 Issue BО-04, BО-07 Issue RUB RUB RUB RUB RUB RUB Orenburg Region Issue RUB Leningrad region Issue RUB Alfa-Bank Issue BО-14 RUB Credit Bank of Moscow Issue BО-07, BО-10, BО-11 RUB Vostochny Express Bank Issue 03 RUB Promsvyazbank Issue BО-06 RUB Petrokommerс Issue BО-01, BО-02, BО-03, BО-04 RUB

9 THE LARGEST IMPLEMENTED PROJECTS Vneshprombank Issue BО-03 JSCB Peresvet Issue 03, BО-01, BО-02 Tatfondbank Issue BО-08, BО-11, BО-15 National Standart Bank Issue BО-02 Binbank Issue BО-02, BО-03, BО-05 Bank Rossiysky Capital Issue BО-01, BО-02 Bank Soyuz Issue BО-01, BО-06 RUB RUB RUB RUB RUB AK BARS Bank Europlan RESO - Guarantee Rosneft SUEK - Finance Vostochny Express Bank UBRiR Issue BО-03, BО-02 Issue BО-01, 04, 05 Issue 03 Issue BО-05, BО-06 Issue 05 Issue 02 Issue BО-08 RUB RUB RUB RUB RUB Orenburg Region Issue RUB The Republic of Khakassia Issue Nizhny Novgorod Region Issue RUB Tver Region Issue Kostroma region Issue RUB Republic of Sakha (Yakutia) Issue RUB Udmurt Republic Issue RUB

10 INVESTMENT BANKING. FINANCIAL CONSULTING AND CORPORATE FINANCE REGION Group has considerable experience in organization and completion of transactions in the M&A market, fund-raising for investment transactions, financing engineering, corporate and financial consulting. Our specialists are willing to carry out a comprehensive research of client s opportunities, supply capacities in the market, to develop and implement the optimum solution for the client. M&A transactions support LBO / MBO consulting and effecting transactions Sale of non-core assets FUNCTIONS OF THE REGION GROUP WITHIN THE FRAMEWORK OF SERVICES PROVISION Attracting bank financing Support of M&A, LBO / MBO transactions support, provision of financing means consulting, legal Sale of non-core assets means identification of none-core lines of business, preparation for sale (financial statements, business-block, operational block), search for interested purchasers, conclusion of transactions. Attracting bank financing means assistance in solution of challenging issues with attracting bank credits, selection of the optimum form of the banking product, consulting and implementation of measures for bringing the borrower to conformity with the bank's requirements, conducting negotiations with banks, supporting a borrower in banks during the servicing of the extended loans. Financing engineering means consulting and assistance with conclusion of complex related transactions subject to clients restriction with respect to investment activities for certain asset classes. Consulting with regard to optimization of the assets structure within the framework of regulatory requirements of the applicable legislation Related-party lending development and implementation of funding mechanisms for the companies, which are unable to receive any funds from their holding financial structures Financing engineering Related-party lending ADVANTAGES FOR THE CLIENTS OF THE REGION GROUP The team with extensive experience in banking operations and financial consulting Wide range of partners banks and institutional investors Available and reliable investment operations mechanisms within the framework of the limits with respect to assets structure Adaptation and provision of own infrastructure for effecting and support of credit transactions

11 SPECIALIZED DEPOSITORY Anna Zaitseva Head of specialized depository services Maintaining a register of mortgage pool Keeping record of properties and management of unit investment trusts assets REGION Depository Company provides its clients with a full range of specialized depository services REGION Depository Company deals with all types of financial instruments including bills, deposit certificates, bonds, shares, units, mortgage bonds or other mortgage documents. REGION Depository Company has an extensive professional experience as a custodian for the purpose of realization of various types of mortgage and lease financing. REGION Depository Company maintains a register of mortgage pool for Russian mortgage securities, it has references from IFC, EBRD, and it has been acting as a Custodian in cross-border transactions for mortgage securitisation since KEY ACCOUNTS Audit of pledge /mortgage /leasing dossiers Keeping record of and storage of mortgage/ leasing/factoring dossiers Control of dossiers conformity to credit agreement requirements Monitoring the composition and structure of the pool MARKET POSITIONS, I half-year of * Position Ranking 7 Special depositories in terms of cost of property under control, million rub Special depositories in terms of number of customers in service, unit 36 * Source: PARTAD

12 ASSET SECURITISATION REGION Group offers a set of services which allow for completing asset securitization transactions. The employees of the REGION Group have an extensive experience of direct participation in implementation of such transactions both in the Russian and international capital markets. The company has partnership relations with world and Russian investors, rating agencies, audit and consulting firms. Transaction structuring Analysis of accounting and taxation implications of the transaction Consulting and development of the proposal on the composition of the parties to the transaction Development of documentation on the transaction Coordination of work on completion of the transaction Marketing and sale of securities The following actions precede directly work on the assets securitization transaction: Analysis of the client s strategic goals Studies of securitized assets portfolios Analysis of information systems Analysis of legal and tax implications Negotiating with rating agencies investors, tax consultants and other potential parties to the transaction Potential assets to be secured Securitization types Types of securities Mortgage credit portfolios Commercial real estate Credits for the acquisition of motor vehicles Lease payments Consumer credit programs Credit pools for small and medium businesses Cross-border securitization Mortgage securitization under Russian law АВS, RMBS, LPN, CLN Bonds secured with mortgage collateral Mortgage participation certificates

13 LEASING Rustem Mukhamedov Head of Leasing Leasing of motor vehicles and special equipment Leasing of the rolling stock REGION Leasing is a diversified leasing company, which provides assistance with implementation of the program of modernization of the fixed assets and technical equipment of production enterprises in key capital-intensive economy industries. Thanks to the support of the Head Company ZAO IC REGION, the leasing company ensures the possibility for attracting long-term structured funding from Russian and international first-rate financial institutions. Leasing of aircraft Leasing of sea and river vessels Leasing of the equipment Leaseback MAJOR LESSEES: KEY PERFORMANCE INDICATORS : Indicator Value Leasing portfolio (million rub) MAJOR LENDERS: Number of property units in trust (unit) 420

14 PUBLIC AND PRIVATE PARTNERSHIP PROJECTS REGION Group sees the development of public and private partnership for the purpose of using private capital in different government housing construction programs, creation of infrastructural and socially significant objects as one of its priority objectives. REGION Group offers complex services related to development and implementation, including organization of co-financing, of investment projects using public and private partnership mechanisms (PPP). Organization of attracting non-budgetary funding sources (own funds of the group and those attracted as loans) Structuring and preparation of the project for implementation (study of the legal and financial model) Project implementation (turnkey construction, commissioning) Provision of hire purchase plan for buyout of projects/project maintenance (concession) ALL PPP MODELS HAVE THE FOLLOWING IN COMMON: SPHERES OF APPLICATION OF PPP MECHANISMS: Social and political responsibility of the projects Possibility of deferral of the budget costs related to the funding of the results of capital investments by paying for the hire purchase buyout of the project Passing the projects completed and improvements made to the state (municipal) ownership subject to the results of contract implementation. Construction subject to the turnkey concept assignment of liability for timely commissioning of the projects within the framework of the estimate drawn up in advance to private investors Creation on non-budgetary mechanisms for securing the obligations of the government customer before investors under PPP agreement (regulatory and legal and contractual documentation) Transportation infrastructure Social infrastructure Utilities infrastructure Electrical power industry Motorways Ports and airports Healthcare facilities Educational institutions Water treatment and sewerage Heating supply Waste treatment Hydro- and alternative energy Network system objects

15 CONTACTS , Moscow, Shabolovka str., 10, building 2, business-center Concord Tel.: (495)