Economic Prospects forEurasia – the Perspective of CEOs

David GrayChairman PwC Russia May, 2015

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My perspective… and CEOs perspective

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Megatrends – the forces reshaping the world economy

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18th Annual CEO Survey

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1,322 CEOs 77 countries

101 Russia

44 Kazakhstan

101

44

1322

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CEOs like to do business

- What they think matters- They follow, but also lead

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Percentage of CEOs who are very confident in revenue growth over the next 12 months

9

2008 2009 2010 2011 2012 2013 2014 2015

50%

21%

31%

48%40%

36% 39% 39%

80%

30%

53%60%

48%66%

53%

16%

0.730.64

0.14

Golobally CEOs from Russia CEOs from KZ

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There are more growth opportunities than there were three years ago (%)

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Do you expect headcount at your company to increase, decrease or stay the same over next 12 months.

*7% CEOs refused to answer in 2015

‘14 ‘15

63 32

17 45

20 16

36 28

34 48

28 24

50 50

29 28

20 21

Kazakhstan*

Russia

Global

Increase Stay the same Decrease

%

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Inadequate basic infrastructure

Access to affordable capital

Protectionist tendencies among national government

Over-regulation

Social Instability

Increasing tax burden

Geopolitical uncertainty

77

61

50

73

66

58

94

53

57

57

64

69

72

86

53

40

58

78

60

70

72

CEOs Globally CEOs from Russia CEOs from KZ

In Russia and KZ

In Global

Q: How concerned are you about the following potential threats to your organisaton’s growth prospects?

#1

#1

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What should be government priorities?

10

77

50

49

53

16

48

57

60

77

T h e p ro vision o f ad equ ate d igita l in frastru ctu re

E n surin g

in tern ation ally com petitive an d eff icien t

tax sy stem

E n su rin g accessto aff ordab le cap ita l

F orm ation o f sk illed an d adap tab le w ork fo rce

T h e p ro vision o f ad equ ate p h ysical in frastru ctu re

%

Kazakhstan Russia

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Which three countries, excluding the one in which you are based, do you consider most important for your overall growth prospects over the next 12 months?

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The most interesting five countries for Russia and Kazakh CEOs in terms of their organisations’ overall growth over next 12 months (%).

RUSSIA

KAZAKHSTAN

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“It was the best of times,

it was the worst of times…

it was the spring of hope,

it was the winter of despair…” Charles Dickens “A Tale of Two Cities”

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EU … a huge success- Trade

- Economic integration- Peace dividend… But learn from what

worked… and what is less

successful

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Lessons from the EU

• Don’t make it political

• Don’t make it monetary

• Do make it a tool for higher standards

• Do … get on with it

• Don’t make it exclusive

Thank you!

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