© Nomura International plc

VIII Annual Conference IPO Considerations

29 March 2007 – 31 March 2007Ohrid, Macedonia

Presented by:

Mr Dario Kadiev

Vice PresidentCentral and Eastern EuropeNomura International plc

Investment Banking

Page 2

IPO Considerations

Advantages Key Considerations

1. Capital Base

2. Liquidity

3. Recognition & Credibility

4. Valuation

5. Investor Base

6. Incentive Schemes

1. Time and Expense

2. Disclosure Requirements

3. Share Price Implications

4. Equity Story

5. Required Preparation

6. Parties Involved

Page 3

Indicative IPO Time Table

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Due Diligence

Valuation

Accounting

Prospectus

Marketing

Offering Period

Pricing & Trading

PRICING u

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Page 4

Select CEE Capital Issues by Country(1)

CountryNo. of issues

Total value

Current market cap

Russia 22 8,153 712,000

Poland 56 1,629 183,000

Czech Republic

1 46 59,331

Croatia 2 194 41,440

Romania 1 34 23,166

Bulgaria 4 90 13,856

Lithuania 1 1 7,761

Estonia 3 181 4,689

Hungary - - 3,169

Latvia - - 1,677

Macedonia - - 1,400

Note: (1) All financials are in EUR’m. Market cap as at 29 March 2007, Reported IPOs (Value and number of IPOs) are for FY 2006.Source: Dealogic

30 listings from the CEE region took place in London, reaching a value of EUR 16,513m in 2006

2 listings from the CEE region took place in Vienna, reaching a value of EUR 42m in 2006

Page 5

Case Study

...Syndicate bankers at the bookrunners said the deal was several times oversubscribed, with a high quality, geographically diverse book. “Sistema-Hals has generated huge interest”, said a syndicate banker at one of the bookrunners. “It’s a great diversification play for investors interested in Russia but full up of oil and gas and, more generally, the Russian real estate market is booming.”

3 November 2006

...Syndicate bankers at the bookrunners said the deal was several times oversubscribed, with a high quality, geographically diverse book. “Sistema-Hals has generated huge interest”, said a syndicate banker at one of the bookrunners. “It’s a great diversification play for investors interested in Russia but full up of oil and gas and, more generally, the Russian real estate market is booming.”

3 November 2006

Summary

Issuer

Size US$432m (post greenshoe)

Pricing Date 3 November 2006

Listing LSE, MICEX, MSE

Issued securities GDRs and ordinary shares (20 GDR = 1 share)

Offer Structure Reg S and 144A to QIBs

Pricing USD 10.70 per GDR and US$214 per ordinary share

New/existing capital 94% primary and 6% secondary

Free float 18% (post greenshoe)

Valuation USD1.73 pre-money / US$2.1 billion post-money

Lock up 6 months by Sistema and its subsidiaries

Joint Lead Manager and Joint Bookrunner

1st

Largest ever real estate IPO in

CEE

First Russian real estate

company to be listed on London

Stock Exchange

Highlights

Compelling investor case

5x oversubscribed – USD 2.3bn

Priced after 4 days of bookbuilding

Over 75% allocated to tier 1 investors

Diversified investors base across Europe, Americas and Asia

Nomura was the only bank to generate demand from Europe, Americas and Asia

Despite having no Asian roadshow, Nomura generated over US$200m of demand from Asia

6 out of top 10 orders arranged or hosted by Nomura

The largest allocated order was to a Nomura Asian account – over US$25m

Strong aftermarket performance of GDRs: +12% after 5 days