RELAXRoad Map for SPG

2011-2015

Meet team RELAX

Roman Kulikov

Eugene Kostrikov

Liudmila Kobzeva

Alexander Kuchin

SPG’s strategic goals

To be presented in key markets of

Russian business

To build a national strategist to

penetrate the CIS countries

To triple the office in 4 years

To accumulate $50 mln of EBITDA profit

by 2016

To develop new approaches to

strategic consulting

SPG HAS TO FIND SOLUTIONS HOW TO FULFILL THE STRATEGIC GOALS

OFF WE GO

SPG SHOULD USE COMPLEX APPROACH

NUMBER OF PROJECTS

BRAND

QUALITY OF PROJECTS

SUPERB EXPERIENCE

NEW CLIENTELE

SATISFIED CLIENTS

INCREASED NUMBER OF PROJECTS GIVES INITIAL MOMENTUM

NUMBER OF PROJECTS

BRAND

QUALITY OF PROJECTS

SUPERB EXPERIENCE

NEW CLIENTELE

SATISFIED CLIENTS

60%

30%

30%15%0%

Metallurgy

Oil & Gas

Growth(2010)

Profitability(2010)

Other countries

Prospective industries

Other industries

Russia

IN RUSSIA SPG SHOULD FOCUS ON COMPANIES IN METALLURGY AND OIL & GAS INDUSTRIES

SOURCE: EXPERT TOP 400

60%

30%

30%15%0%

Metallurgy

Machinery

Growth(2010)

Profitability(2010)

Other countries

Prospective industries

Other industries

The Urals

IN THE URALS MACHINERY AND METALLURGY ARE THE MOST PROSPECTIVE INDUSTRIES TO WORK WITH

SOURCE: EXPERT TOP 400

60%

30%

30%15%0%

Metallurgy

Energy

Growth(2010)

Profitability(2010)

Other countries

Prospective industries

Other industries

Ukraine

SPG SHOULD BREAK INTO UKRAINIAN MARKET VIA CONSULTING COMPANIES IN METALLURGY AND ENERGY INDUSTRIES

SOURCE: TOP 100 RATING UKRAINE

60%

30%

30%15%0%

Metallurgy

Oil & Gas

Growth(2010)

Profitability(2010)

Other countries

Prospective industries

Other industries

Kazakhstan

METALLURGY AND OIL&GAS ARE THE HIGH PRIORITY INDUSTRIES FOR SPG IN KAZAKHSTAN

SOURCE: EXPERT TOP 100 KAZAKHSTAN

Metallurgy

Oil & Gas

Government

Energy

Machinery

Weak position

Fairly week position

Strong position

Dominance

COMPETITION IN THE CIS IN THE CHOSEN MARKETS IS NOT AS FIERCE AS IN THE OTHERS

Kiev Moscow

Astana

Ekaterinburg

Baku

MOSCOW OFFICE CONSULTS AZERBAIJANI OIL&GAS COMPANIES, ASTANA OFFICE OPERATES WITHIN THE URALS AS WELL

2011 20142012 2013 2015

Moscow

Kiev

Astana

2816 21 3712M+2 Total

Number of M+2

12 12 13 14 16

12854

963

NEW OFFICES TO OPEN IN 2012 AND 2013

SOURCE: TEAM’S CALCULATIONS

12

12

Number of Teams

29%

29%

22%

Moscow

Kiev

Astana

ManufacturingMachineryEnergy

% in TOP rankings of

MetallurgyEnergy

Oil & GasMetallurgyMachinery

Russia

Ukraine

Kazakhstan, The Urals

Expert TOP 400

TOP 100 Rating Ukraine

Expert TOP 100 Kazakhstan,Expert TOP 400 Russia

SPG NEEDS 21 TEAMS TO PENETRATE UKRAINIAN AND KAZAKH MARKETS BY 2015

2011

BY 2015

BY 2015

9

2011 2012 2013 2014 2015

100%

75%62%

50% 43%

25%

24%

29%32%

14% 21% 24%

Moscow

Kiev

Astana

Contribution of the offices to the total revenue

BY 2015 SPG’S REVENUE SOURCES WILL BE WELL DIVERSIFIED

SOURCE: TEAM’S CALCULATIONS

IMPROVED PROJECT MANAGEMENT ACCELERATES SPG’S GROWTH

NUMBER OF PROJECTS

BRAND

QUALITY OF PROJECTS

SUPERB EXPERIENCE

NEW CLIENTELE

SATISFIED CLIENTS

HIRING THE BEST MANAGERS SPG IMPROVES PROJECT MANAGEMENT

PARTNERS

MANAGERS

CONSULTANTS

ANALYSTS

FOREMOST MANAGERS

SUPERB EXPERIENCE

HEADHUNTING THE BEST

MANAGERS

SELECTION AMONG STUDENTS SHOULD BE MORE AGGRESSIVE

PARTNERS

MANAGERS

CONSULTANTS

ANALYSTS

• How: Tests similar to GMAT

• What: Analytic & managerial abilities

Test Stage

• How: Business Assessment

• What: Ability to work in team

Game Stage• How: Managers &

Partners• What: Motivation &

Corporate culture suitability

Interview Stage

SPG SHOULD DEVELOP THE “BRING-UP” SYSTEM

PARTNERS

MANAGERS

CONSULTANTS

ANALYSTS

MANAGERS

CONSULTANTS

ANALYSTS

SHARE THEIR EXPERIENCE

FORM OUR OWN GROUP OF EXPERTS

HEADHUNTED MANAGERS

STRENGTHEN KNOWLEDGE

BASIS

ENCOURAGE THE DEVELOPMENT OF NEW TECHNIQUES

TRAININGS HELD BY FOREIGN SPECIALISTS IN THE FIELD

SPG MAINTAINS CLOSE CONTACTS WITH FORMER PARTNERS

PARTNERS

MANAGERS

CONSULTANTS

ANALYSTS

SPG FORMER PARTNERS

Greater percentage of recurrent clients

Sharing experience and advice

Attracting new clients if FPs go to not-consulting industry

ALUMNI NETWORK

PartnersStrategy

INCREASED BRAND AWARANESS ATTRACTS NEW CLIENTS

NUMBER OF PROJECTS

BRAND

QUALITY OF PROJECTS

SUPERB EXPERIENCE

NEW CLIENTELE

SATISFIED CLIENTS

SPG WILL BE PRESENTED AS AN INTERNATIONAL COMPANY WHICH KNOWS THE COUNTRY’S

SPECIFICS

BRAND

TV

Participation in various profession oriented programmes such as those of RBC channel

FORUMS

Regional or international conferences, exhibitions,

congresses

PRESS

Publications of SPG’s specialists on the

development of the CIS countries as well as the industries in question in Vedomosti, Forbes, etc.

FROM 2012 TO 2015 SPG WILL ACCUMULATE $51.7 MLN OF EBITDA

2011 2012 2013 2014 2015

3.6

5.3

8.8

12.9

21.1

SOURCE: TEAM’S CALCULATIONS

+ 47%

+ 66%

+ 47%

+ 64%EBITDA PROFIT (MLN $)

SPG’s strategic goals

To be presented in key markets of

Russian business

To build a national strategist to

penetrate the CIS countries To triple the office in

4 years

To accumulate $50 mln of EBITDA profit

by 2016

To develop new approaches to

strategic consulting

SPG WILL MANAGE TO FULFILL ALL ITS GOALS

OIL&GAS METALLURGY GOVERNMENT ENERGY MACHINERY

SPG’S OWN GROUP OF EXPERTS (THROUGH HEADHUNTING)“BRING-UP” SYSTEM

NEW OFFICES: 2011 – 86 EMPOYEES2015 – 258 EMPLOEES

UKRAINE KAZAKHSTAN AZERBAIJAN RUSSIA (THE URALS)

EBITDA PROFIT2011 – $ 3.6 MLNBY 2015 – $ 51.7 MLN

THANK YOU FOR ATTENTION