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Alfa Group Annual Report 2017

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Page 1: Alfa Group · 3 ALFA GROUP’S PRINCIPAL BUSINESSES Founded in 1989, Alfa Group* ("Alfa") is one of the largest privately owned financial-investment conglomerates in Russia

Alfa GroupAnnual Report 2017

Page 2: Alfa Group · 3 ALFA GROUP’S PRINCIPAL BUSINESSES Founded in 1989, Alfa Group* ("Alfa") is one of the largest privately owned financial-investment conglomerates in Russia

CONTENTS

3 Alfa Group’s Principal Businesses

4 Supervisory Board of Alfa Group

9 Alfa Group’s Investment Philosophy

11 ABH Holdings S.A.

16 Alfa Capital

18 AlfaStrakhovanie Group

20 Alfa Asset Management (Europe) S.A.

21 A1

23 X5 Retail Group

26 Rosvodokanal Group

27 IDS Borjomi International

28 Serving our Communities

30 Contact Information

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ALFA GROUP’S PRINCIPAL BUSINESSES

Founded in 1989, Alfa Group* ("Alfa") is one of the largest privately owned financial-investment conglomerates in Russia.

Alfa Group* is a combination of independent businesses operating mainly in Russia and the CIS.

Alfa* companies’ businesses include commercial and investment banking, asset management, insurance, retail trade, water utilities, mineral water production as well as special-situation investments. Companies of Alfa* typically focus on value-oriented, longer-term opportunities, primarily in Russia and the CIS, but also invest in other markets which form part of their strategic business objectives.

AlfaStrakhovanie GroupOne of the largest Russian insurers with a diversified portfolio of insurance products.

Rosvodokanal GroupOne of the leading regional companies in water-supply and waste water disposal operating in Russia.

Alfa CapitalAlfa Capital manages investment portfolios for a wide range of clients.

X5 Retail GroupLeading multi-format food retailer in Russia. X5 Retail Group’s shares are listed on the London Stock Exchange (LSE) and Moscow Exchange (MOEX) in the form of Global Depositary Receipts under the ticker “FIVE”.

ABH Holdings S.A.ABH Holdings S.A. (ABHH) is a privately owned Luxembourg-based holding company investing into several banking groups in the CIS and Europe.

А1One of the leading investment businesses in Russia and the CIS.

* Alfa Group is not a legal entity.

Alfa Asset Management (Europe) S.A.Luxembourg-based asset management company for private and corporate clients in Europe.

IDS Borjomi International Leading mineral water producer in Russia, Ukraine, Georgia and the CIS and Baltic countries.

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SUPERVISORY BOARD OF ALFA GROUP

Members of the Supervisory Board of Alfa Group Consortium:

Mikhail FridmanChairman of the Supervisory Board of Alfa Group ConsortiumMr. Fridman, one of the original founders of Alfa Group Consortium, is Chairman of the Supervisory Board of Alfa Group Consortium, one of the largest privately owned financial-industrial conglomerates in Russia. Also Mr. Fridman is a member of the Board of Directors of ABH Holdings S.A., a member of the Board of Directors of Alfa-Bank (Russia) and a member of the Supervisory Board of X5 Retail Group. Mr. Fridman is a member of the Board of Russian Union of Industrialists and Entrepreneurs, the International Advisory Board of the Council on Foreign Relations (USA) and the National Council on Corporate Governance. He graduated from the Moscow Institute of Steel and Alloys in 1986. Mr. Fridman was born in Lvov, Ukraine in 1964.

German Khan Member of the Supervisory Board of Alfa Group ConsortiumMr. Khan is one of the original founders of Alfa Group Consortium. From 2003 to 2013, Mr. Khan served as Executive Director of TNK-BP Management. Additionally, he was a member of the Management Board of TNK-BP Management and of the Board of Directors of Slavneft. Currently Mr. Khan is Chairman of the Board of Directors of Management Company “Rosvodokanal”. Mr. Khan graduated from the Moscow Institute of Steel and Alloys. He was born in Kyiv, Ukraine in 1961. He is married and has four children. Mr. Khan is an active supporter of Jewish initiatives in Russia and Europe.

Alexey KuzmichevMember of the Supervisory Board of Alfa Group ConsortiumMr. Kuzmichev is one of the original founders of Alfa Group Consortium. Mr. Kuzmichev is a member of the Supervisory Board of Alfa Group Consortium and a member of the Board of Directors of Management Company “Rosvodokanal”. Mr. Kuzmichev is a graduate of the Moscow Institute of Steel and Alloys. Mr. Kuzmichev was born in Kirov, Russia in 1962.

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Petr Aven Chairman of the Board of Directors of ABH Holdings S.A., Chairman of the Board of Directors of Alfa-Bank (Russia)From 1994 to June 2011, Mr. Aven served as President of Alfa-Bank (Russia). Mr. Aven was responsible for the Bank's overall strategy and relations with business and government leaders in Russia and abroad. Prior to joining Alfa-Bank (Russia) in 1994, Mr. Aven was Minister of Foreign Economic Relations for the Russian Federation (1991-1992), serving as Russia's representative to the Group of Seven, and conducting a number of high-level trade and economic missions to Western capitals. Mr. Aven worked at the International Institute for Applied Systems Analysis in Laxenburg, Austria (1989-1991). Currently, he is Chairman of the Board of Directors of ABH Holdings S.A., Chairman of the Board of Directors of Alfa-Bank (Russia), a member of the Supervisory Board of Alfa-Bank (Ukraine) and Chairman of the Board of Directors at AlfaStrakhovanie Group. Mr. Aven is a member of the Board of Directors of the New Economic School (NES), a member of President’s Council on International Activities of Yale University (USA), also he is a member of the Boards of Trustees of the Moscow State University named after Lomonosov, the Russian Geographical Society and a member of the Board of Trustees of  the Pushkin State Museum of Fine Arts. Also, Mr. Aven is a member of the Presidium of Russian International Affairs Council (RIAC), a professor at the State University Higher School of Economics and is Honorary Doctor (Dr.h.c.) of the University of Latvia. Since April 2006, he has been a member of the Board of the Russian Union of Industrialists and Entrepreneurs. He graduated from the Moscow State University in 1977 and holds a PhD in Econometrics. Mr. Aven was born in Moscow, Russia in 1955.

Andrei Kosogov Member of the Supervisory Board of Alfa Group Consortium Mr. Kosogov is a member of the Board of Directors of AlfaStrakhovanie Group, a member of the Board of Directors of Alfa-Bank (Russia), a member of the Board of Directors of ABH Holdings S.A., Chairman of the Board of Directors of Alfa-Capital Management Company LLC and Chairman of the Board of Directors of Rissa Investments Limited (IDS Borjomi International Group). From November 2005 through June 2009, Mr. Kosogov acted as Chairman of the Supervisory Board of Alfa-Bank (Ukraine). From 2005 to 2011, Mr. Kosogov served as Chairman of the Board of Directors of Alfa Asset Management. From 2003 to 2007, Mr. Kosogov acted as Chairman of the Board of Directors of AlfaStrakhovanie Group. From 1998 to 2005, Mr. Kosogov was First Deputy Chairman of the Management Board of Alfa-Bank (Russia) and Director of its Investment banking division. From 1992 to 1998, Mr. Kosogov served as CEO of Alfa-Capital Management Company LLC. Mr. Kosogov graduated from the Moscow Power Engineering Institute in 1987. He was born in Sillamaё, Estonia in 1961.

Alexander Fain General Director of A1Mr. Fain graduated with honors from the Moscow Institute of Chemical Engineering, Engineering Department in 1958. From 1958 until 1988, he was involved in a number of innovative engineering projects. Mr. Fain is the author of more than 70 scientific articles, manuals, books, monographs, and patents. He also holds the honorary title of active member of International Academy of Sustainable Development and holds a candidate's degree and is a professor in the field of applied mathematics. Mr. Fain is often cited by the leading Russian business periodicals as one of the most influential businessmen in Russia. He was born in Moscow, Russia in 1936.

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Vladimir SkvortsovCEO of AlfaStrakhovanie GroupMr. Skvortsov is CEO, Chairman of the Management Board and a member of the Board of Directors of AlfaStrakhovanie Group, also he is a member of the Board of Directors of Alfa-Capital Management Company LLC. From July 2000 until April 2002, Mr. Skvortsov served as Executive Director of NIKoil Investment Banking Group and from 1998 to 2000, he served as CEO of NIKoil brokerage company. From 1992 to 1998, Mr. Skvortsov was First Vice-president of Rinaco PLUS investment company. Mr. Skvortsov graduated from the Moscow State University in 1992, Faculty of Mechanics and Mathematics. Mr. Skvortsov was born in Moscow, Russia in 1969.

Vladimir VerkhoshinskiyChief Executive Officer of Alfa-Bank (Russia)Mr. Verkhoshinskiy is Chief Executive Officer, First Deputy Chairman of the Executive Board and a member of the Board of Directors of Alfa-Bank (Russia).

Prior to that Mr. Verkhoshinskiy held various positions at VTB Group. From 2009 to 2011 Mr. Verkhoshinskiy worked at VTB Bank as Vice President and Head of Corporate Development and Strategy Department. In January 2012 Mr. Verkhoshinskiy joined Bank of Moscow where he held the position of Deputy President and Chairman of the Management Board being responsible for development of retail and small business, mortgage lending and private banking services. In May 2016, due to the merger of VTB Bank and Bank of Moscow, Mr. Verkhoshinskiy transferred back to VTB Bank as Head of Retail Business, а member of VTB Bank Management Board.

Mr. Verkhoshinskiy also worked at Citibank (Moscow), VR Capital investment fund and McKinsey&Co.

Mr. Verkhoshinskiy graduated with honors from the Financial Academy under the Government of the Russian Federation and holds a Master of Business Administration and a Public Management Program degrees from Stanford University (USA).

Igor ShekhtermanChief Executive Officer of Х5 Retail GroupMr. Shekhterman is Chief Executive Officer of X5 Retail Group. Previously, he was a Managing Partner in RosExpert, which he co-founded in 1996 and has subsequently successfully developed into the Russian partner of Korn/Ferry International. Earlier, Mr. Shekhterman served as a finance manager at the Russian branch of Beoluna, the Japanese jewelry producer. Mr. Shekhterman graduated from the State Technical University of Kaliningrad, Economics Faculty in 1992. Mr. Shekhterman holds a BF and a BA Degrees of Business Schools in France and Denmark. Mr. Shekhterman was born in Kaliningrad, Russia in 1970.

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Nigel Robinson Director of Corporate Development, Finance and Control — CTFMr. Robinson joined CTF Consultancy Limited (“CTF”) in January 2000. Prior to joining CTF, Mr. Robinson was Senior Manager in the Audit and Business Advisory Group at PricewaterhouseCoopers and spent six years with PwC in Moscow and St. Petersburg. Mr. Robinson is a British qualified Chartered Accountant and a Fellow of the Institute of Chartered Accountants in England and Wales. He was born in Corringham, England in 1967. Mr. Robinson is a member of the Board of Directors of Management Company “Rosvodokanal” and a member of the Board of Directors of Rissa Investments Limited (IDS Borjomi International Group).

Vasyl Latsanych Chief Executive Officer of PJSC VimpelComVasyl Latsanych has been Chief Executive Officer of PJSC VimpelCom since January 10, 2018.Mr. Latsanych has been working in telecoms since 2001. Prior to joining PJSC VimpelCom, Mr. Latsanych held various senior positions in MTS Group. His most recent role was Group Vice President for Strategy and Marketing, where he was responsible for MTS’s commercial and strategic initiatives and led a significant customer experience transformation as well as digital development. Prior to that, Mr. Latsanych worked in marketing and sales divisions of Coca-Cola in Ukraine and Russia, being responsible for development of global brands and products of Coca-Cola on regional markets. Mr. Latsanych graduated from Higher State Institute named after N.V. Lysenko in Lvov. Mr. Latsanych holds an MBA Degree from London Business School.

Andrei ElinsonManaging Partner – A1Andrei Elinson is Managing Partner of A1 and a member of the Supervisory Board of X5 Retail Group. From December 2015 to March 2018 he held the office of Director of Asset Management in CTF Consultancy Limited (“CTF”). Prior to joining CTF, Mr. Elinson was Deputy CEO of Basic Element, where he worked from August 2007 being responsible for managing companies in aviation, construction, automotive, financial and other industries. From 1997 to 2007, Mr. Elinson worked at Deloitte CIS and became a Partner in 2005. Mr. Elinson graduated with honours from the Russian State Finance Academy, Accounting & Auditing faculty. Mr. Elinson is a US Certified Public Accountant and a US Certified Fraud Examiner. He holds a Certificate in Company Direction (UK). Mr. Elinson was born in Moscow, Russia in 1979.

Anton Mikhal’kovChief Executive Officer of Rosvodokanal GroupAnton Mikhal’kov joined Rosvodokanal Group in June 2015 as CEO of Rosvodokanal Group. Prior to joining Rosvodokanal Group, Mr. Mikhal’kov held various key positions in Russian banks and industrial enterprises. From 2009 to 2012, Mr. Mikhal’kov served as CEO of EnergoStroyInvest-Holding. From 2013 to 2015, Mr. Mikhal’kov served as CEO of LLC “PSK Remput”. Mr. Mikhal’kov graduated from the Moscow Technological University (MIREA) in 1991. Mr. Mikhal’kov was born in Moscow, Russia in 1968.

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Artem LeontevDirector of Group Portfolio Management– CTFArtem Leontev joined CTF Consultancy Limited (“CTF”) in June 2018 as Director of Group PortfolioManagement. Mr. Leontev is a member of the Board of Directors of ABH Holdings S.A., a member of the Board of Directors of Alfa-Bank (Russia), a member of the Board of Directors of AlfaStrakhovanie Group and a member of the Board of Directors of Management Company “Rosvodokanal”. Before joining CTF, between 2013 and 2018 Mr. Leontev held the position of Deputy CEO responsible for human resources in Basovy Element Group and prior to that he was Director of corporate governance and internal control with the same group. From 2006 to 2008 Mr. Leontev worked in Audit Department of Deloitte Touche CIS. Artem also held financial and management positions in Russian, UK and Australian companies.Mr. Leontev graduated from Perm State University with a degree in accounting and audit and has a BA (Hons) degree from Brighton University (UK). Mr. Leontev is a fellow of the Association of Chartered Certified Accountants and holds an MBA Degree from Durham University (UK).

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ALFA GROUP’S INVESTMENT PHILOSOPHY

We rely on our investment philosophy to generate superior returns for our shareholders over the long term, to promote sound corporate governance and business practices, and to benefit our partners, counterparties, employees, consumers and society at large.

• We are opportunistic investors.Simply stated, we are value-oriented investors. In evaluating any investment opportunity, our investment philosophy is driven by the opportunity to purchase assets that, due to perceived risk, low liquidity, disinterest or a lack of understanding on the part of market participants, are undervalued.

• We believe the most attractive opportunities are in world emerging markets. Much of our past success has been the result of our comprehensive knowledge and understanding of emerging markets, in particular, the Russian and CIS markets. We believe there are still substantial opportunities in the world’s emerging markets and that we are well placed to take full advantage of them.

• We typically take a longer-term view, in order to realize the full potential of our investments. We do everything necessary to develop our investments, making them more attractive to a potential buyer. While we do not particularly welcome the inflexibility of being wed to an investment for the longer term, we lower our risks by seeking undervalued investments that provide ample down side protection and, when possible, interim cash flows.

• We view co-operation with foreign investors and the attraction of foreign capital as important to the development of our companies. Foreign investors provide not only capital investment, but also the expertise which is needed to successfully develop and realize the full value of our investments. We know from experience that the failure to attract longer-term foreign investment will result in under-developed assets and missed business opportunities. Also, with regard to exit strategy, sale to foreign investors provides us with a logical and attractive means of exiting our investments.

• First and foremost we are investors, not business managers. Companies of Consortium are independent entities and are given fairly wide latitude to conduct their affairs. We continually measure the financial performance of our investments.

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• We are guided by the philosophy of investing in only those companies that are leaders in their respective fields of business. We require those in which we invest to be one of the top three in their business field or with a clear potential to become one of the top three within a reasonable period. Where we see that our investments are not meeting this criterion, we take active measures to divest and free up our financial and management resources for more effective investments.

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ABH HOLDINGS S.A.ABH Holdings S.A. ("ABHH") is a privately owned Luxembourg-based holding company investing into several banking groups in the CIS and Europe.

Operating companies of ABHH are:

• Alfa-Bank (Russia);

• Amsterdam Trade Bank N.V. (the Netherlands);

• Alfa-Bank (Ukraine);

• Ukrsotsbank (Ukraine);

• Alfa-Bank (Belarus);

• Alfa-Bank (Kazakhstan).

ABHH-owned companies also carry on regulated financial activities in Cyprus and the United Kingdom.

Companies offer a wide range of banking and financial services and products, including interbank, corporate and retail lending, deposits, payment and account services, foreign exchange operations, cash handling services, custody services, investment banking and trade finance, as well as other ancillary services to corporate and retail clients.

ABHH business model is focused on utilizing its financial and intellectual resources, management and investment expertise to effectively manage value-driven investments in the global banking sector.

As of December 2017 ABHH operating companies had more than 41 thousand full-time employees, served more than 19 mln corporate and retail clients, while the branch network expanded to 1,232 offices.

For more detailed information please refer to ABH Holdings S.A. website: www.abhh.lu

Alfa-Bank (Russia)

Founded in 1990, Alfa-Bank (Russia) is currently the leading privately owned bank in Russia. According to the ranking compiled by the portal Banki.ru at the end of 2017, Alfa-Bank (Russia) was the largest Russian privately owned bank in terms of total assets, total equity, loan and deposit portfolios.

As a universal bank, Alfa-Bank (Russia) operates in all key sectors of the financial industry with the following core business lines: corporate and investment banking (including SME, trade finance, structured finance, leasing and factoring), and retail banking (including consumer finance, retail lending and credit cards, saving accounts and deposits, services through remote channels).

In October 2014 Alfa-Bank (Russia) acquired more than 88% shares of PJSC “Baltiyskiy Bank” as part of the latter’s financial restructuring and in October 2015 Alfa-Bank (Russia) increased its stake up to 100%.

Since 2015 Alfa-Bank (Russia) has been listed by the Central Bank of the Russian Federation among the top 10 systemically important banks for the banking system of Russia.

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In 2017 Alfa-Bank (Russia) has proven sustainability of its business model in the new economic reality.

Strategic priority for 2017 was to maintain the bank’s status as a leading bank in Russia and focus on quality and low-risk assets, providing the best quality banking services to its clients through up-to-date technologies, efficiency, and business integration.

In the beginning of 2018 Alfa-Bank (Russia) successfully closed an issue of USD 500 mln perpetual Eurobonds compliant with Basel III (Central Bank Regulation 395-P). The total amount of the subordinated loan was USD 500 mln, the first call option is scheduled in 5.25 years; the initial coupon rate for the first 5.25 years was fixed at 6.95% per annum (quarterly payment).

Alfa-Bank (Russia) is proud of its strong team of Western and Russian managers who successfully combine international business standards and corporate management practices with their deep knowledge and expertise in the Russian market.

Its wide popularity is supported by an extensive distribution platform with multiple delivery channels, including in-person service through branches and offices, and ATMs network spread across Russia and the CIS, as well as remote access through internet and phone.

Alfa-Bank (Russia) is headquartered in Moscow and has more than 700 branches in Russia.

The bank’s corporate and retail client base has been growing during the last several years. As of 31 December 2017 Alfa-Bank (Russia), including Amsterdam Trade Bank N.V. and PJSC “Baltiyskiy Bank”, served more than 420 thousand corporate and around 15 mln retail customers, while the total number of employees of Alfa-Bank (Russia) (including Amsterdam Trade Bank N.V. and PJSC “Baltiyskiy Bank”) exceeded 26 thousand.

Leading international agencies ranked Alfa-Bank (Russia) creditworthiness as one of the highest among Russian private banks.

As one of the top recognized brands in the Russian banking industry, Alfa-Bank (Russia) proved its leading position by winning numerous awards in 2017. Alfa-Bank (Russia) became the leader of the Financial Sphere Annual Innovations and Financial Achievements Award. In 2017 Alfa-Bank (Russia) won the 2016 Visa Global Service Quality Award of the Visa international payment system for high-quality operational services to its clients, Visa cardholders. Alfa-Bank’s (Russia) forex business has been the biggest in Central and Eastern Europe for two years, according to the annual rating of the portal Euromoney. In June 2017 Alfa-Bank (Russia) has become a laureate in the Best Banking Brand nomination by private banking clients in 2017 according to the Frank Research Group research company. In December 2017 Alfa-Bank’s (Russia) Alfa Private won the client award, SPEAR’S Russia Wealth Management Awards 2017, which is Russia’s only private banking and wealth management award, as the best Russian wealth management and corporate bank. Alfa-Bank (Russia) is an official European bank of the FIFA 2018™ World Cup and 2017 FIFA Confederations Cup.

For more detailed information please refer to Alfa-Bank (Russia) website: www.alfabank.com

Amsterdam Trade Bank N.V.

Amsterdam Trade Bank N.V. ("ATB") was incorporated in the Netherlands in October 1994 as a fully licensed specialized financial institution. In March 2001 Alfa-Bank (Russia) acquired a 100% interest in ATB. As of 31 December 2017 the share of Alfa-Bank (Russia) in ATB was 12

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71.31%. The decrease occurred as a result of additional ATB share issue without participation of Alfa-Bank (Russia).

ATB is focused on the entire spectrum of commodity finance (covering softs, metals and energy) as well as shipping and asset-based financing. ATB serves a wide range of customers active across all aspects of international trade, including commodity traders and producers, processors and manufacturers, and ship owners and companies otherwise involved in the global logistics chain. Its product offering is tailored around three main categories: financing solutions, treasury services and transaction banking (financial institutions and documentary services).

As of 31 December 2017 ATB provided services to 42 thousand active retail customers and had 130 employees.

ATB is  regulated by the Dutch Central Bank (De Nederlandsche Bank) and the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten).

For more detailed information please refer to ATB website: www.amsterdamtradebank.com

Alfa-Bank (Ukraine)

Alfa-Bank (Ukraine) is a major Ukrainian bank with private international capital, one of the leading and most reliable commercial banks in Ukraine. The bank holds leading positions in all segments of the banking market and was ranked among the top 10 financial institutions of the country in terms of assets according to the National Bank of Ukraine. The bank was founded in 1992. Since 2001 the Bank has been operating under the brand Alfa-Bank. In 2004 Alfa-Bank (Ukraine) became a part of ABHH.

Being a nationwide flagship bank for implementing latest technologies, Alfa-Bank (Ukraine) provides up-to-date banking solutions for clients in all segments from private individuals to major international corporations.

The bank's strategic priorities for 2017 were further development as the largest universal bank of Ukraine and a leader in consumer lending, focusing on the best quality of customer service in the industry, modern digital technologies, the efficiency and adaptability of business.

In 2017 Alfa-Bank (Ukraine) managed to strengthen its market positions due to attractive terms of deposit and loan offers, service packages and payroll projects.

Alfa-Bank (Ukraine) is headquartered in Kyiv. In total there are 187 branches of the bank in the regions of Ukraine, including the head office. As of December 31, 2017, the active client base of Alfa-Bank (Ukraine) included 966 thousand retail customers and 25 thousand legal entities, and the total number of employees of Alfa-Bank (Ukraine) amounted to 6,225 people.

Alfa-Bank (Ukraine) is actively involved in social projects aimed at developing the sphere of education and raising financial literacy, supporting the health-care and healthy lifestyle.

In 2017 Alfa-Bank (Ukraine) proved its leading position by winning 17 awards in national and international ratings. In particular, the authoritative international vmagazine Global Finance named Alfa-Bank (Ukraine) the most reliable bank of

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Ukraine in 2017.

For more detailed information please refer to Alfa-Bank (Ukraine) website: www.alfabank.ua/en

Ukrsotsbank

Ukrsotsbank is one of the largest universal banks of Ukraine, operating in the local market since 1990 and offering a full range of advanced financial services to both individuals and legal entities.

Ukrsotsbank became a part of ABHH in October 31, 2016, after the transfer of 99.9% of Ukrsotsbank PJSC shares from UniCredit Group to ABHH in exchange for a minority stake of 9.9% in ABHH.

Strategic priority for 2017 was adjusting Ukrsotsbank's operating activities to the standards of Alfa-Bank (Ukraine) and ABHH as well as concentration of portfolios, assets consolidation and unification of business processes, products and services of the two banks.

Headquartered in Kyiv, Ukrsotsbank has 231 branches throughout Ukraine. As of December 31, 2017, Ukrsotsbank served more than 479 thousand retail and 37 thousand corporate customers, and the total number of employees of the bank amounted to 4,332 people.

Ukrsotsbank provides high-quality financial services to the community it operates in and also actively supports social projects focusing its corporate and social responsibility strategy on such areas as support of children, art, education, sport and health.

For more detailed information please refer to Ukrsotsbank website: https://en.ukrsotsbank.com

Alfa-Bank (Belarus)

Alfa-Bank (Belarus) is one of the leading private banks in Belarus. The history of the Bank began in June 2008, when a controlling stake in Mezhtorgbank was acquired. In November 2012 Alfa-Bank (Belarus) purchased BELROSBANK CJSC, one of the largest banks in Belarus by size of its retail loan portfolio.

In December 2016 the bank announced its “mobile first” strategy, introducing a new application for private clients called INSYNC.BY. In November 2017 the international agency Marksvebb included this application into the list of the top ten mobile banks of the CIS countries and Georgia. In September 2016 for the first time on the Belarusian market, the payments function appeared in the application for business "Alfa-Business Mobile", and in October 2017 a service for paying salaries to the client's employees was also added. Until now, competitors have not been able to bring to the market similar products.

Alfa-Bank (Belarus) is one of the TOP 10 largest banks in Belarus by total assets, total capital, loan portfolio and borrowed funds reported in IFRS financial statements for 2017.

The central office of Alfa-Bank (Belarus) is located in Minsk. The Bank has 38 branches in all regions of Belarus. As of the end of 2017 Alfa-Bank (Belarus) served more than 393 thousand private customers as well as more than 24 thousand legal entities and entrepreneurs. The bank has more than 1.8 thousand employees.

For more detailed information please refer to Alfa-Bank (Belarus) website: https://www.alfabank.by

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Moscow PetropavlovskGreat Britan

NetherlandsBelarus

UkraineKazakhstan

Cyprus

Minsk

KievAstana

Shymkent

Semey

Almaty

Nicosia

Luxembourg

London Amsterdam

St. Petersburg

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Alfa-Bank (Kazakhstan)

Founded in 1994, Alfa-Bank (Kazakhstan) is one of the most reliable and dynamic banks in Kazakhstan. Alfa-Bank (Kazakhstan) has “BB-“ rating with stable outlook and according to the international rating agencies S&P Global Ratings and Fitch Ratings it is one of TOP 3 Kazakhstan’s Banks by reliability.

On March 29, 2018, Fitch Ratings affirmed Alfa-Bank's (Kazakhstan) long-term issuer default rating in foreign and local currency at “BB-“, the outlook "Stable". The national long-term rating affirmed "BBB + (kaz)", the outlook "Stable".

On October 26, 2017, S&P Global Ratings confirmed the long-term and short-term credit ratings of the issuer of Alfa-Bank (Kazakhstan) at the level of "BB- / B", the outlook "Stable". In addition, the bank's rating on the national scale "kzA-" was affirmed.

Alfa-Bank (Kazakhstan) is a full service bank that guarantees the highest quality service to its corporate and retail clients.

Headquartered in Almaty, Alfa-Bank (Kazakhstan) has 14 branches in the cities of Almaty, Astana, Aktau, Aktobe, Uralsk, Atyrau, Karaganda, Kokshetau, Kostanay, Pavlodar, Ekibastuz, Petropavlovsk, Ust-Kamenogorsk, Semey, and Shymkent.

As of the end of 2017 Alfa-Bank (Kazakhstan) served more than 520 thousand retail customers and more than 29 thousand corporate clients, while the number of its employees amounted to 2,567.

For more detailed information please refer to Alfa-Bank (Kazakhstan) website: https://www.alfabank.kz/

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ALFA CAPITAL

Alfa Capital Management Company LLC (“Alfa Capital”) is one of the largest asset management companies in Russia, with its history tracing back to 1992. Alfa Capital key businesses are individual asset management for individual and corporate clients (including individual investment account strategies), as well as management of mutual funds and institutional clients’ assets.

In 2017 Alfa Capital’s assets under management increased by 35% and exceeded RUR 241 bln as of 31 December 2017, demonstrating more than a six-fold growth over the past five years. 94% of assets are individual clients’ funds, which makes Alfa Capital the leader among non-bank companies in the retail sector.

Alfa Capital celebrated its 25th anniversary in 2017 and reported a record high volume of assets under management as well as inflows, financial results and number of clients.

Alfa Capital at a Glance

• Alfa Capital has been a leading asset management company in Russia for more than 20 years;

• Assets under management exceed RUR 241 bln as of 31 December 2017;

• Alfa Capital has become the first asset management company in Russia to launch online sales of its products;

• Alfa Capital is among the top 11 largest management companies by assets under management, it is the leading company by retail clients’ funds under trust management and is the second company by amount of mutual funds’ assets based on the Russian Rating Agency Expert RA data;

• Alfa Capital team unites highly qualified professionals with long-term expertise in Russia and abroad, including emerging markets;

• Alfa Capital has “А++” rating (Exceptionally high/the highest level of reliability and service quality) assigned by the Russian Rating Agency Expert RA;

• Alfa Capital is among the top 10 largest asset management companies. It ranks second by amount of open-end mutual funds and interval mutual funds’ assets (RUR 35.09 bln as of December 31, 2017) demonstrating the highest growth rates among assets management firms;

• Alfa Capital serves more than 1.1 mln people;

• Alfa Capital ranks first in the segment of individual trust management with assets under management of RUR 184.97 bln as of December 31, 2017;

• Alfa Capital became the Most Efficient Asset Management Company in 2017

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according to the annual ranking of asset management companies by Kommersant Publishing House;

• In 2017 Alfa Capital developed robo-advisor service and several other cutting edge online services aimed at making online operations quicker and more user-friendly.

2017 awards

• Spear`s award as the Asset Management Firm of the Year and Legendary Team in PBWM;

• Investor Awards in the Best Corporate Development Strategy nomination for Alfa Capital’s Remote Points of Sales project;

• Alfa Capital CEO Irina Krivosheeva ranks first among management companies’ directors in Top-1000 Russian managers rating;

• Stock Market Elite award as Management Company of the Year and the Best Management Company for Wealthy Clients.

For more detailed information please refer to Alfa Capital website: www.alfacapital.ru

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ALFASTRAKHOVANIE GROUP

AlfaStrakhovanie Group (the “Group”), one of the largest Russian insurers with a diversified portfolio of services comprising both comprehensive business insurance coverage and an extensive range of retail insurance products, has approximately 270 offices and branches across Russia.

Clients

AlfaStrakhovanie Group has built its relationships with customers on the principles of equal partnership and mutually advantageous cooperation. The principal customers of the Group are top domestic banks, major ship owners and forwarders, power plants, metal and engineering plants, as well as representative offices of the largest foreign companies, public and governmental agencies and institutions as well as individual clients. Today, the Group serves more than 24 mln clients.

Products

AlfaStrakhovanie Group has immense experience working with enterprises and institutions of various types and calibers. The Group provides complex individual, tailored insurance programs for corporate customers, taking into account the business specifics of each customer. Insurance products offered to the corporate customers include property insurance, cargo insurance, motor insurance, health insurance for employees, liability and financial risks insurance. The Group successfully markets a wide scope of products to private individuals including compulsory motor third-party liability insurance, motor insurance, property insurance, life insurance, travel insurance, mortgage insurance, accident insurance and also mass insurance products. In 2015 AlfaStrakhovanie Group was the first insurance company to launch a mobile application service “AlfaStrakhovanie Mobile”.

Reinsurance

AlfaStrakhovanie Group has long-term relations with the largest reinsurance corporations in the world (Munich Re, Swiss Re, Hannover Re, Gen Re, Partner Re, SCOR, Lloyd’s of London) and can quickly and reliably reinsure almost any risk in both the Russian and international insurance markets.

Reliability

AlfaStrakhovanie Group has "AA-(rus)" and “BB” creditworthiness ratings by Fitch Ratings and the highest rating of reliability (“A++”) from the Russian rating agency “Expert RA”.

Awards

During the last 13 years, top managers of AlfaStrakhovanie Group rank in “TOP-1000 Russian Managers” list, a joint project of the Association of Managers of Russia and Kommersant publishing house. In 2017 the international agency Fitch Ratings confirmed the financial stability rating of AlfaStrakhovanie at the level of "BB" on the international scale with the stable outlook. In 2017 AlfaStrakhovanie Group won the "Best Insurance Company in Russia" award by World Finance 2017.

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Main highlights

• AlfaStrakhovanie Group is 2nd amongst the largest insurance companies by amount of insurance premiums (excluding compulsory health insurance) with a share of 9.7% of total premiums collected in 2017 (2016: 7.9%). The most significant increase was in the segments of life insurance (71.5%), compulsory motor third-party liability insurance (“CMTPL”) (33.9%), health insurance (33.7%) and hull insurance (12.6%);

• The Group is amongst the 5 largest insurers providing obligatory medical insurance with a 10% market share;

• Premiums collected in 2017 amounted to RUR 126 bln* (excluding compulsory health insurance) compared to RUR 92 bln** in 2016 (excluding compulsory health insurance);

• Number of contracts concluded in 2017 amounted to 46,750,204 (excluding compulsory health insurance) compared to 38,621,081 in 2016 (excluding compulsory health insurance).

* Based on AlfaSrakhovanie Group audited IFRS financial statements for 2017.

** Based on AlfaSrakhovanie Group audited IFRS financial statements for 2016.

Structure of AlfaStrakhovanie’s Insurance Portfolio 2017

For more detailed information, please refer to Alfastrakhovanie Group website: www.alfastrah.ru/en/company/

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ALFA ASSET MANAGEMENT (EUROPE) S.A.

Alfa Asset Management (Europe) S.A., a Luxembourg-based asset management company for private and corporate clients in Europe, was founded in May 2015.

Alfa Asset Management (Europe) S.A. offers a wide range of financial services, including asset management services on the international capital markets, investment advisory, discretionary management and portfolio management.

The company is licensed by the Commission de Surveillance du Secteur Financier (CSSF) of Luxembourg.

For more detailed information please refer to Alfa Asset Management (Europe) S.A. website: www.aame.lu

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A1

A1 is the key investment business of Alfa Group and one of the leading players on the investment markets in Russia and the CIS. A1 focuses on two types of investment projects: special situations (complex corporate or financial cases) and growth strategies. A1 makes equity investments in various industries, pursuing the interests of shareholders, clients and partners. A1 focuses on creating stable competitive companies, implementing effective corporate management models and originating new businesses. Alfa-Bank (Russia), TNK, VEON Ltd. (previously VimpelCom), Perekrestok and Rosvodokanal Group were originally A1 projects that later became strategic businesses for Alfa Group as well as core companies for the wider Russian economy

The Main Current Projects of A1

Moscow Tire PlantFormer manufacturing area for future redevelopment In August 2012, А1 acquired 29.17% of voting shares and loan payable of OJSC “Moscow Tire Plant” (MTP), that makes it possible to participate in the ambitious program of Moscow city redevelopment.

CJSC "DS Controls"One of the largest manufacturers and suppliers of control and safety relief pipeline valves in RussiaCJSC "DS Controls", a joint venture of A1 and General Electric (GE), manufactures and supplies control, isolating and safety relief pipeline valves, and high quality digital sensors. Representative offices are located in Russia and the CIS.

UNITILE Group of Companies The largest Russian manufacturers of ceramic and porcelain tilesUNITILE Group of companies comprises factories producing facia tiles, porcelain tiles, decorative items, bricks and also quarries for extraction of raw materials. A1 is a controlling shareholder of UNITILE Group.

POLYPLASTIC Group Leader in processing and manufacturing of polymer pipes and engineering plastic products in the CIS A1 received control over 50% shares of APG Polyplastic Group Limited, a Cyprus company, which owns 96.5% stake in POLYPLASTIC Group. POLYPLASTIC Group comprises 15 leading polymer manufacturers in Russia, Belarus, and Kazakhstan (which annually produce around 300 thousand tons of products), more than 15 trade houses, research and design institutes, and a training center. POLYPLASTIC Group is among the TOP-200 biggest private companies of Russia, according to Forbes (2015).

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CineLab Group of CompaniesOne of the leading Russian full service companies providing premium quality services to moviemakers, film distributors and movie theater chains CineLab Group of companies, founded in 2001, is one of the leading full service companies on the Russian market providing premium quality services to moviemakers, film distributors and movie theater chains. In 2012, CineLab Group of companies started providing digital copies of movies to cinema theaters via the satellite Express-AM2, which belongs to Federal State Enterprise “Russian Satellite Communications Company”. The main services of CineLab Group of companies are satellite delivery of digital movies, rental of spotlights and cameras, filmmaking studios and equipment, as well as film processing and digital postproduction. A1 has acquired rights of claims to the CineLab Group of companies and its affiliates, which own real estate assets in Moscow.

Completed ProjectsIn 2017 A1 sold its interest in Formula Kino, movie theatre chain in Russia.In the beginning of 2018, the stake in Belmarket, retail chain of grocery supermarkets in Belarus, was sold.

For more detailed information please refer to A1 website: www.a-1.com

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X5 RETAIL GROUP

X5 Retail Group (the “Group” or “X5”) is the leading multi-format modern retailer in Russia. X5’s portfolio includes Pyaterochka proximity stores, Perekrestok supermarkets, Karusel hypermarkets and Express convenience stores, which together target all categories of Russian customers. The Group’s shares are listed on the London Stock Exchange (LSE) and Moscow Exchange (MOEX) in the form of Global Depositary Receipts under the ticker “FIVE”.

For X5, 2017 was another year of market leadership and sustainable growth while maintaining, and even improving, margins. X5 once again expanded at the fastest pace among its public peers in Russia, and Like for Like (“LFL”) traffic improved relative to the previous year, having reached 3.0% annual growth in 2017, compared to 2.5% growth in 2016. X5 intends to maintain its leading position by continuing to focus on sustainable and high-quality growth and offering customers the best value proposition at every single store the Group operates.

In 2017, X5 added a record 2,934 new stores, bringing the total number of retail outlets in Russia to 12,121 as of 31 December 2017. For the first time in X5’s history, it added more than one million square metres of selling space. This rate of growth is sustained by X5’s robust and efficient operations, focus on maintaining a solid financial position, and strategy that aims to further develop X5’s multi-format food retail business that puts the customer at the centre of X5’s success.

As of 31 December 2017, X5’s stores were located in Moscow, St Petersburg and other regions of European Russia, the Urals and Western Siberia, including 11,225 Pyaterochka stores, 638 Perekrestok stores, 93 Karusel stores and 165 Express convenience stores. In 2017, the Group’s revenue reached RUR 1,295 bln (US $22,193 mln*), up by 25.3% year-on-year. X5’s total net selling space amounted to 5.48 million m2 as at 31 December 2017 and customer visits during 2017 exceeded 3.85 bln. More than 250 thousand employees work for the Group.

X5 continued to develop its logistics infrastructure as a strategic priority to support its sustainable operations. In 2017 X5 opened 10 distribution centers (“DC”) with a total area of 244,000 m2. As of 31 December 2017 X5 operated 39 DCs and 3,144 company-owned trucks across the Russian Federation.

* The average exchange rate for 2017 was USD 1 = 58.352 RUR

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History

X5 Retail Group was established on 18 May 2006 by a merger of the leading national supermarket chain Perekrestok and Pyaterochka, one of the largest proximity store formats in Russia. In June 2008 the Group acquired Karusel hypermarkets and substantially strengthened its position in the Russian hypermarket segment. X5 continued to consolidate the Russian food retail market by completing two milestone transactions in 2009 and 2010 with the acquisition of the Paterson supermarket and Kopeyka (later re-branded as Pyaterochka and Perekrestok retail formats).

Unique Multi-Format Business Model

X5 manages a portfolio of food retail brands, has a multi-format business model and employs a decentralised organisational structure that provides each format with a good degree of autonomy in respect to its operations, marketing, category management, logistics, distribution and expansion operations. Pyaterochka has its own logistics unit, while Perekrestok and Karusel share distribution centre capacities in some regions of Russia.

Strategy

In 2017 X5 Retail Group continued to move towards achieving its key strategic goal of rapid expansion while at least maintaining margins.

• Effective multi-format operating model: X5 continues to develop each of its three major formats with the goal to grow faster than the Russian food retail market and double the size of the business within 3-4 years from 2015;

• Superior value propositions: X5 develops and adapts distinct value propositions for each format;

• Intelligent growth while maintaining margins: In order to remain a sustainable market leader, X5 uses advanced analytics to select new store locations, and has built strong in-house capabilities for land acquisition and construction;

• End-to-end operational excellence: In 2017 X5 continued to focus on in-store operations, improved lease conditions, strenghthened its transport and logistics infrastructure and enhanced its supplier terms;

• Strong leadership team: X5’s performance in 2017 proved the strength of X5’s Management team. The fact that X5 has effective systems to retain and motivate staff is in line with the interests of our shareholders both in the short-term and in the long-term.

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CentralFederal District

North-WestFederal District

VolgaFederal District

UralFederal District

SiberianFederal District

Far EasternFederal District

SouthernFederal District

North CaucasusFederal District

Nizhny Novgorod

Ekaterinburg

Novosibirsk

Rostov-na-Donu

Pyatigorsk

Moscow

St. Petersburg

Number of stores as of 31 December 2017Central Federal District – 5,198;North-West Federal District– 1,416;Volga Federal District – 3,169;Ural Federal District – 999;Southern Federal District – 874;North Caucasus Federal District – 188;Siberian Federal District – 277;TOTAL — 12,121

2017 2016 YOY Growth

Revenue, mln RUR 1,295,008 1,033,667 25.3%

Gross profit, mln RUR 308,938 249,985 23.6%

Adj. EBITDA*, mln RUR 99,131 79,519 24.7%

EBITDA, mln RUR 96,193 76,267 26.1%

Number of customers, mln 3,849 3,072 25.3%

Number of stores 12,121 9,187 31.9%

Key operational and financial indicators

* EBITDA before costs related to the LTI programme, share-based payments and other one-off remuneration payments expense.

For more detailed information please refer to X5 Retail Group website: www.x5.ru

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ROSVODOKANAL GROUP

Rosvodokanal Group (“RVK” or “the Company”) is one of the leading private operators of water supply and sewage systems in Russia. The history of the company dates back to 1949. Since acquisition, RVK has been reorganized into an inter-regional group, which combines a management company and enterprises operating local water supply and sewage systems in Barnaul, Voronezh, Krasnodar, Omsk, Orenburg and Tyumen. Rosvodokanal Group has introduced an extremely promising public private partnership model, attractive to both municipalities and investors. RVK’s business model allows municipalities, being the owners of the enterprises, to move quickly to free-market operation by recruitment of professional management team. The business development objective of RVK is further expansion by entry into new regions of Russia.

Since 2007 RVK local enterprises have been engaged into Investment programs for the development and modernization of infrastructure for the total amount of RUR 49.5 bln.

For many years Rosvodokanal Group has been actively developing and supporting cooperation with international and Russian investors. The Group's companies have at various times successfully attracted both long-term financing in the public capital markets through bonds placement in MICEX and targeted financing of investment programs in partner banks: EBRD, Raiffeisenbank, ROSBANK and Alfa-Bank. In 2017 Tyumen Vodokanal signed the first agreement in Russia for the lease of water utilities with LLC "Raiffeisen-Leasing" in the amount of RUR 656 mln for a period of 7 years. Currently, more than 2/3 of the total debt of RVK is financed by creditors with foreign capital.

In 2017 RVK was assigned a “BB-“ credit rating with a stable outlook by the leading international rating agency Fitch Ratings.

In 2017 RVK serviced about 5.0 mln individuals and more than 38 thousand legal entities. The Company has more than 9 thousand employees.

For more detailed information please refer to Rosvodokanal Group website: www.rosvodokanal.ru

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IDS BORJOMI INTERNATIONAL

IDS Borjomi International is the undisputed № 1 mineral water producer in Russia, Ukraine, Georgia and the CIS and Baltic countries.

The Group’s core mission is to help consumers live a healthy lifestyle by driving regular daily consumption of mineral water

Key development milestones:

• IDS Borjomi was established in 2002 with a strategic goal to consolidate mineral water producers in the post-Soviet Union countries. The consolidation has started with the acquisition of the “Borjomi” brand in Georgia in 2002;

• In 2003 the Group entered the Ukrainian mineral water market with the acquisition of Mirgorod mineral water factory (“Mirgorodskaya” brand). In 2004 IDS Borjomi had strengthened its positions in the Ukrainian market by acquiring the Morshin mineral water factory (brand “Morshinskaya”). Following these acquisitions, IDS Borjomi has successfully relaunched its brands and turned them into the leading mineral water brands in Ukraine. By 2012 IDS Borjomi’s market share in Ukraine reached almost 50% in monetary terms;

• IDS Borjomi’s first investment in the Russian market was in 2006, when the Group acquired Lipetsk mineral water factory. In 2009 IDS Borjomi acquired Kostroma mineral water factory together with the “Saint Spring” brand;

• In 2017 the Group acquired mineral water producer “Chistaya Voda” in order to expand in production facilities in the non-European part of Russia and facilitate the consolidation of the Russian mineral water market.

Over these years, IDS Borjomi has significantly invested into the development of mineral water markets in Russia, Ukraine and Georgia and today consolidates 9 modern production facilities in these countries. The Group has over 5 thousand employees.

IDS Borjomi consolidates the most famous mineral water brands in the post-Soviet Union countries:

• “Borjomi” - a legendary Georgian mineral water and a golden standard of natural mineral water in the former Soviet Union countries;

• “Morshinskaya” - the leading mineral water brand in Ukraine with origin from Carpathian Mountains;

• “Saint Spring” - the leading mineral water brand in Russia.

IDS Borjomi’s brands are distributed across over 40 countries.Group sales reached almost 1.5 billion liters in 2017.

For more detailed information please refer to IDS Borjomi International website: www.ids-borjomi.com

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SERVING OUR COMMUNITIES

Charitable activities play an important role in Alfa Group companies, which are known for their multi-year traditions of patronage of historical, cultural and spiritual heritage in the regions where they operate. The main focus of such activity, taking place primarily in Russia, Kazakhstan, Ukraine and Belarus, has always been and will remain support of children and talented young people and the support and promotion of culture, art, education, health and environmental protection. While Alfa aims to achieve leadership in all its businesses, the commercial strategy of each business will always be closely aligned with a strong sense of corporate social responsibility. Through constant efforts to create the conditions for a flourishing society, Alfa Group is also laying the foundations for its own long-term success. Alfa Group is also proud of its cooperation with the Russian International Affairs Council (RIAC), a non-profit membership organization whose activities are aimed at strengthening peace, friendship and solidarity between nations, preventing international conflicts and promoting crisis settlement.

The most significant initiatives of Alfa Group businesses

Humanitarian Activities

Alfa Group companies regularly hold events in Russia, Kazakhstan, Belarus and Ukraine, aimed at supporting charitable projects and socially vulnerable groups of people. Within the framework of these projects financial support is provided to severely ill children, orphanages and remedial schools for children, charitable funds, medical institutions, low-income families and pensioners.

• Alfa Group companies are partners of the “Life Line” charitable fund for helping severely ill children and have donated more than US $10.7 million over the life of the program.

• Within the “Basket of Kindness” federal charitable project co-organized by X5 Retail Group, twenty tonnes of products were collected for more than 3 thousand disadvantaged families and pensioners.

Education Support and Talent Development

Alfa Group businesses finance internships for young specialists, sponsor grants to pay for education in business schools, organize forums and conferences to discuss issues relevant for business and the economy.

• Alfa-Bank (Russia) finances the Alfa Chance Program. Within this program gifted school graduates receive scholarships to study at the National Research University “Higher School of Economics”.

• Within the Alfa Fellowship program financed by Alfa-Bank (Russia), young foreign specialists undergo internships at leading companies and institutions of Russia. The aim of this program is to promote and reinforce social and cultural relations between Russia, the USA, the UK and Germany.

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Support of Culture and National Heritage

As part of the activities aimed to support cultural and national heritage, financial assistance is provided to musical festivals and competitions, literary prizes, film festivals, theater projects, art centers and national culture days.

• Alfa-Bank (Ukraine) sponsored the VI International jazz festival in Lviv – “Alfa Jazz Fest”.

• The largest Russian open air festival – “Alfa Future People 2018” was held in Nizhny Novgorod with Alfa Bank (Russia) sponsorship.

• Alfa-Bank (Russia) together with the Ministry of Culture of the Russian Federation donated more than EURO 1 mln to repair famous Russian Pavilion in Venice, built in 1914 and used as an exhibition hall of the modern Russian fine art on the Venice Biennale.

Sporting Initiatives

Employees of Alfa Group companies take part in charitable runs and marathons, while companies participate in the organization of sport events as sponsors.

• Alfa-Bank (Belarus) was the General Partner of the National Olympic Committee of the Republic of Belarus, handball team “SKA-Minsk”, football club “Minsk” and Partner of car team “MAZSPORTavto” in the cross country rally “Dakar 2017”.

• Alfa-Bank (Russia) has become the first European Bank- Supporter of the 2018 FIFA World Cup and FIFA Confederations Cup 2017.

• Rosvodokanal Group provides sponsorship support to sport organizations in the regions of the company’s operations. Amongst these organizations are the Biathlon Federation of the Barnaul region, the Rhythmic Gymnastics Federation of the Orenburg region, Karate Federation of the Tyumen region, “Veterans of Amateur Hockey League in Tver”.

Environment, Health and Safety

Alfa Group companies participate in environmental clean up campaigns and organize school meetings to discuss ecological issues. Within the “Donor’s Day” charitable campaign, employees donate blood for severely ill people.

• Beneficiaries of Alfa Group Consortium together with the Russian Academy of Medical Sciences and Russian and international professional medical associations, launched a new charitable program “Alfa-Endo” to support pediatric endocrinology in Russia. Within the next few years, beneficiaries of Alfa Group Consortium plan to invest up to US $100 million to support a health care promotion program for Russian children.

• As a member of “Сorporate Сlub of the World Wildlife Fund (WWF) Russia” Alfa-Bank (Russia) regularly contributes to nature conservation initiatives.

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CONTACT INFORMATION

ABH Holdings S.A.Chairman of the Board of Directors: Petr AvenAddress: 3 Boulevard du Prince Henri, L-1724, LuxembourgTel.: +(352) 264-70-621Fax: +(352) 264-70-628E-mail: [email protected]

Alfa-Bank (Russia)CEO: Vladimir Verkhoshinskiy Chairman of the Executive Board: Andrei SokolovAddress: 27 Kalanchevskaya Street, Moscow,107078, RussiaTel.: +7 (495) 620-91-91, (495) 974-25-15E-mail: [email protected]

Amsterdam Trade Bank N.V.CEO: Harris AntoniouAddress: Strawinskуlaan 1939, Amsterdam, 1077 XX, the NetherlandsTel.: +31 (0) 20-5209-209E-mail: [email protected]

Alfa-Bank (Ukraine)General Manager: Ivan SvitekChairman of the Executive Board: Viktoria MikhalyoAddress: 4/6 Desyatynnaya Street, Kiev, 01001, UkraineTel.: +38 (044) 490-46-00Fax: +38 (044) 490-46-01E-mail: [email protected]

UkrsotsbankGeneral Manager: Ivan SvitekChairman of the Executive Board: Tamara Savoshchenko Address: 29 Kovpaka Street, Kiev, 03150, UkraineTel.: +38 (044) 205-45-55Fax: + 38 (044) 529-13-07E-mail: [email protected]

Alfa-Bank (Belarus)CEO: Rafal Juszczak Chairman of the Executive Board: Valery SmolyakAddress: 43 Surganova Street, Minsk, 220013, BelarusTel.: +375 (17) 217-64-64Fax: +375 (17) 200-17-00E-mail: [email protected]

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Alfa-Bank (Kazakhstan)CEO: Andrey TimchenkoChairman of the Executive Board: Alina AnikinaAddress: 57A Masanchi Street, Almaty, 050012, KazakhstanTel.: +7 (727) 244-75-75Fax: +7 (727) 292-08-21E-mail: [email protected]

Alfa-Capital Management Company LLCCEO: Irina KrivosheevaAddress: 32/1 Sadovaya-Kudrinskaya Street, Moscow, 123001, RussiaTel.: +7 (495) 797-31-52Fax: +7 (495) 797-31-52E-mail: [email protected]

AlfaStrakhovanie GroupCEO: Vladimir SkvortsovPresident: Mikhail BershadskyAddress: 31 B Shabolovka Street, Moscow, 115162, RussiaTel: +7 (495) 788-09-99Fax: +7 (495) 785-08-88E-mail: [email protected]

Alfa Asset Management (Europe) S.A.CEO: Sandi NemetAddress: 20 rue Dicks, L-1417, LuxembourgTel: + (352) 28-26-78Fax: + (352) 28-26-78-28E-mail: [email protected]

A1Managing Partner: Andrei ElinsonAddress: 12 Krasnopresnenskaya Naberezhnaya,Moscow, 123610, RussiaTel.: +7 (495) 967-00-00, (495) 967-00-66Fax: +7 (495) 967-00-76E-mail: [email protected]

X5 Retail Group CEO: Igor ShekhtermanAddress: 28 Srednyaya Kalitnikovskaya Street, Bld.4,Moscow, 109029, RussiaTel.: +7 (495) 662-88-88, (495) 789-95-95Fax: +7 (495) 662-88-88, ext. 61145E-mail: [email protected]

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Rosvodokanal GroupCEO: Anton Mikhal'kovAddress: 38 Berezhkovskaya nab., Bld. 1Moscow, 121059, RussiaTel.: +7 (495) 514-02-11Fax: +7 (495) 926-89-25E-mail: [email protected]

IDS BORJOMI INTERNATIONAL CEO: Vladimir AshurovAddress: 6 Patorzhynskoho Str., office 12Kyiv, 01034, Ukraine,Tel.: +380 44 569-62-66E-mail: [email protected]

CTF Consultancy LimitedAddress: 11 Bolshoy Savvinskiy Pereulok, Office 351,Floor 5, Entrance 3, Moscow, 119435, RussiaTel.: +7 (495) 787-00-77Fax: +7 (495) 792-52-35E-mail: [email protected]