RUSNANO:

Leading High-Tech Investor in Russia

October 3, 2012

Anatoly Chubais,

Chief Executive Officer

www.rusnano.com 2

Russia’s Attractive Investment Proposition

Source: EIU, UNESCO, Eurostat as of June 2012

Attractive macroeconomic outlook…

(10,0%)

0,0%

10,0%

20,0%

2007A 2008A 2009A 2010A 2011A 2012E 2013E 2014E 2015E

Real GDP Growth CPI Inflation

…on its way to modernisation…

Real Gross Fixed Investments as % of GDP

Average 2012E–2015E

24.6

0%

10%

20%

30%

40%

50%

Chin

a

India

S.K

ore

a

Russia

Ka

zakhsta

n

Ukra

ine

Tu

rke

y

Jap

an

Bra

zil

Germ

any

US

A

…supported by technology oriented

human capital…

Graduates in 2009 (mn)

2,1

0,0

1,0

2,0

3,0

US

A

Russia

Jap

an

Bra

zil

Ukra

ine

S.K

ore

a

Germ

any

Tu

rke

y

15% 28% 21% 12% 25% 31% 23% 21%

share of science and engineering majors

…and government commitment

to innovations

%

33,4

0

100

200

300

400

500

US

A

Jap

an

Chin

a

Germ

any

Fra

nce

Ko

rea

UK

Russia

Canada

Italy

Total R&D Spending, $bn

www.rusnano.com 3

RUSNANO Group: Introduction

Mandate:

- Commercialization of nanotech industry projects;

- Sales of Russian nano-enabled products by 2015 ~ $ 30 bln per year.

Fund for Infrastructure

and Educational Programs (FIEP) non-commercial organization

RUSNANO Joint-stock company

co-investment in nanotechnology industrial

projects and investment funds

investment in non-financial innovative

infrastructure and educational programs

• Investment in businesses that utilise nanotechnology

• Investment either in commercialisation of technologies of Russian origin or in transfer of foreign technologies with

establishment of production and/or R&D in Russia (the “Russian Edge”)

• Balancing return vs technological and market risks

o Focus on companies in the expansion and post-creation stages with occasional start-up financing and no seed / R&D investments

• Mostly minority stake investments

• Value creation at the portfolio company level through active involvement at the BoD level; no day-to-day operational

management of portfolio companies

• Target investment period of 3-5 years

Key investment principles

www.rusnano.com 4

RUSNANO: Generalist Fund,

Active on Diverse Investment Stages ca

sh

flo

w

start-up early growth later growth expansion test sales seed

stage IPO

Vnesheconombank SME BANK

RUSNANO

RVC Seed Fund

“Bortnik Fund”

Russian Venture Company

Skolkovo

Death valley

MICEX FIEP

www.rusnano.com 5

RUSNANO at a Glance

$6.2bn investment fund…

3.7

2.5 $6.2bn Committed

capital Financed

Outstanding

commitment 6

1.1

2.1

3.1 3.7

2007 2008 2009 2010 2011 2012 (Sept)

Foundation Bonds issue

Spin-off of non-commercial activities

Private Placement

Financing, $bn

…established in 2007…

…to invest in nanotechnology-related areas

21%

21%

17%

17%

7%

17%

Surface

modification

Investments, %% of total

Nanomaterials

Optics and

electronics

Energy efficiency

Medicine

Others

Investments, $bn

…by the Russian Government…

4.0

2.1

3.4 $9.5bn

Cash

contribution in

equity

(100%

Government)

Available debt

under government

guarantees

Funding structure, $bn

Debt raised under

government

guarantees

First investments

www.rusnano.com 6

Investment Portfolio Snapshot

By project development stages By type of investment vehicles

By technology origin By geography of recent production launches

3,6

0,1

1,6

0,9

5,2

1

Direct Investments Funds

Outstanding commitment ($bn)

0,7

1,2

3,3

Start-up Post-Creation Expansion/Development

Moscow and

Moscow region

6 launches

Novosibirsk region

1 launch

Irkutsk region

1 launch

Udmurtia

1 launch

St. Petersburg

3 launches

Bryansk region

1 launch

Tatarstan

1 launch

Sverdlovsk region

1 launch

Bashkortostan

1 launch

Tomsk Region

1 launch

Yaroslavl Region

1 launch

Financed ($bn)

2

3,2

Russian technology Technology transfer

Investments, $bn

Investments in manufacturing projects, $bn

www.rusnano.com 7

What we can do together?

• Co-invest in RUSNANO projects

• Buy-out partially or fully RUSNANO in

technologically appealing projects

• Participate in RUSNANO private

placement

• Consider portfolio companies expansion

to Russia and encourage them to apply for

RUSNANO financing

• Encourage portfolio companies to

cooperate with RUSNANO projects to achieve

synergies: in accessing global product and finance

markets

in exits from projects (IPO or selling to a

strategic investor)

• Access to the Russian and Foreign

technologies

• Support to companies entering the

Russian market in terms of production

site search, partners, etc.

• Outstanding relations with a number

of Russian regions

• Co-investment

• Access to RUSNANO’s scientific and

technical expertise

RUSNANO offers Funds could

www.rusnano.com 8

Russian Nanotech: Unique Opportunity

3.00

14.00

0

1

2

3

4

5

6

15

Integrated

Circuits &

Chips

Opto-

electronics

Telecomm. Low Emissivity

Glass

Thermal

Insulation

Polymers &

Additives

0.12 0.38 0.46

1.85

0.75

3.07

5.11

2.40

0.10

8.87

4.30

1.20

0

1

2

3

4

5

6

15

Pharma Energy Efficiency

Electronics & Optics Construction Materials

Biopharma Vaccines Medical Services Energy Accumulation Energy Harvesting

& Conversion

Energy

Distribution

2011 2015 2011-2015 CAGR (%)

47% 78% 14% 31% 25% 7%

61% 19% 98% 86% 16% 15%

0.60 0.20 1.00

2.00

0.83 0.46 0.97 1.07 1.11

2.90

Market size in Russia ($bn)

Market size in Russia ($bn)

RUSNANO’s focus on Russia’s most attractive high tech markets

www.rusnano.com 9

The most attractive market segments

I. Pharmaceuticals and biotechnology

II. Energy efficiency

III. Electronics, photonics and optics

IV. Construction materials

www.rusnano.com 10

I. Pharmaceuticals and biotechnology –

Unique Opportunity

+47%

2015 2011

3,00

14,001) +78%

2015 2011

2,001)

+14%

2015 2011

MARKET ‘11-’15

[USD bn]

KEY TRENDS

ATTRACTIVENESS

(BIO)PHARMACEUTICALS

(excl. vaccines) VACCINES MEDICAL SERVICES

> Strong medical need, especially in cardiovascular and oncology treatments

> Government aims to localize manufacturing due to currently high share of imported drugs (77%)

> Growth of vaccines market depends mainly on government plans for including new vaccines in National Immunization Calendar

> Unclear how many and what type of vaccines will be included

> Demand for IVD services is mainly driven by the commercial sector

> Significant R&D base, experienced scientific teams

> Clinical trials in Russia are high quality and less expensive and quicker than in the EU/US

3,00 min

max

min

max

> Upside potential > Strong CAGR > Government

support

> Upside potential > Strong CAGR > Government

support

> Moderate potential > Demand from

commercial segment

1) window of opportunity (potential)

Estimated minimum size of the pharma and biotech sector in 2015 is $4,5 bln. – 78% growth in vaccines is possible.

0,20 0,50 0,60

1,00

www.rusnano.com 11

I. Pharmaceuticals and biotechnology –

Project Examples

Source: RUSNANO, Roland Berger

FINANCING as of January 2012:

• RUSNANO share of committed capital – $1,1 bn

• Private investors (in cooperation with RUSNANO) – $1,6 bln.

PHARMACEUTICALS SynBio

• BioBetter class of pharmaceuticals

• Novel biotherapeutic molecule for the treatment of tumours

• Stem cell medicine

• Biopolymer polysialic acid

• Histone H1 molecules

• Cord blood

VACCINES AND

MEDICINES

Technologies based on pseudo-adenoviral nanoparticles

COMPANY PRODUCT TECHNOLOGY

• Device for misc. blood coagulation disorders diagnostics

• Disposable units for tests

• Organic nano-layers deposition

• AI imagery recognition

• New diagnostic methods in healthcare

DIAGNOSTICS

TECHNOLOGY

TRANSFER

Domain Associates

Therapeutic products for the treatment of cardiovascular diseases, cancer, infectious diseases, ophthalmology, etc.

Misc. advanced technologies in biopharma (new molecules, nanoparticles, polymers, oligomers, combined therapy)

TECHNOLOGY

TRANSFER

Celtic Pharma Innovative medications in hematology, endocrinology, cardiology, oncology GMP-standard manufacturing

• Flu vaccine

• Treatment of toxic states

• Treatment of ALS

www.rusnano.com 12

II. Energy Efficiency Sector –

Unique Opportunity Power generation and energy accumulation will drive the sector up to $8 bln. in 2015

Source: RUSNANO, Roland Berger

+31%

2015 2011 2015

+25% +7%

2015 2011

MARKET 2011-2015 [USD bn]

KEY TRENDS

ATTRACTIVENESS

ENERGY

ACCUMULATION

POWER

GENERATION

ENERGY

HARVESTING

AND CONVERSION

ENERGY

DISTRIBUTION

> Opening up of the electric vehicles market

> Growth in demand for accumulators for power distribution companies

> USC technology power stations will be built in Russia from 2015

> Technology will account for more than 30% of total power capacity installed

> Growth driven by overall growth of advertising and construction markets

> Growth rate of non-residential property market 2011-2015 is 18.6%

> Growth driven by import substitution for power transformers and high level of overall investment in energy

> Industry leaders plan to localize transformer production in Russia

> High potential > Strong CAGR > Government

support

> Upside potential

> Huge future market share

> Moderate potential

> Strong CAGR > Government

support

> Stable potential

> Moderate CAGR

2,90 0,97

3,16

2015

1,11

2011

0,46 1,07 0,83

www.rusnano.com 13

II. Energy Efficiency Sector –

Project examples

FINANCING as of January 2012:

• RUSNANO share of committed capital – $0,9 bln;

• Private investors (in cooperation with RUSNANO) – $1,28 bln.

SUPERCAPACITORS Nesscap Energy Inc

High-capacity energy accumulators

Carbon microwave steam activation of nanopore electrode structures

ACCUMULATORS Liotech Accumulators for electric vehicles and energy sector

High capacity lithium-ion batteries

COMPANY PRODUCT TECHNOLOGY

TRANSDUCERS Profotech

Fiber optic metering systems for power grids

Nanostructured fiber-based optic current and voltage measurement and monitoring sensors

PHOTOVOLTAICS Hevel Solar modules Thin film technology

www.rusnano.com 14

III. Electronics, photonics and optics –

Unique opportunity The electronics and photonics sector is highly attractive for investors – Estimated market potential of $5,7 bln

in 2015

Source: RUSNANO, Roland Berger

+61%

2015 2011

0,46

+18%

2015 2011

0,38

+98%

2015 2011

0,12

MARKET 2011-2015 [USD bn]

KEY TRENDS

ATTRACTIVENESS

INTEGRATED CIRCUITS

AND CHIPS OPTOELECTRONICS TELECOMMUNICATIONS

> Many areas of application, including transportation, pharmaceuticals, logistics, etc.

> Massive government support via ERA GLONASS project and implementation of RFID in all pharma products, transportation and postal systems

> Market is driven by LED, which will mainly be used for lighting systems

> Government support via the restriction of incandescent light bulbs and changes in construction rules involving the use of LED in new buildings

> Massive market growth mainly due to transition of mobile operators to 4G networks by applying LTE base stations

> Growth in fiber channel market is moderate and driven by the increasing number of broadband service users

> High potential > Strong CAGR > Government support

> Moderate potential > Moderate CAGR

> Stable potential > Moderate CAGR

KEY TRENDS

3,07 0,75

1,85

www.rusnano.com 15

III. Electronics, photonics and optics –

Project examples

FINANCING as of January 2012:

• RUSNANO share of committed capital – $1,1 bln. • Private investors (in cooperation with RUSNANO) – $1,98 bln.

OPTOELECTRONICS Optogan Light emission diodes

High-brightness light-emitting diodes for a large variety of applications

PHOTONICS NTO IRE-Polus

Fiber lasers and telecommunications equipment in Russia

Fiber lasers

ELECTRONICS Crocus Tech-nology SA

Magnetoresistive

memory Innovative memory production technology

COMPANY PRODUCT TECHNOLOGY

www.rusnano.com 16

IV. Construction materials –

Unique opportunity Total market volume of the sub-sectors with the biggest commercial potential is ~$14,6 bln

Source: RUSNANO, Roland Berger

+86%

2015

1,20

2011

0,10

+15%

2015 2011

MARKET 2011-2015 [USD bn]

KEY TRENDS

ATTRACTIVENESS

LOW EMISSIVITY

GLASS

THERMAL

INSULATION

POLYMERS AND

ADDITIVES

> Tighter regulations on thermal resistance of windows for new buildings from 2016

> Share of low emissivity glass expected to grow

> Overall construction growth and changes in energy effic'y regulations for new buildings are driving market growth

> Great need for insulation for refurbishing existing residential stock

> Growth driven by overall construction growth

> Good prospects for increased application of new materials (composites, nano-additives, etc.)

> Strong CAGR > Massive market

potential

> Large market volume

> Stable market growth

+16%

2015 2011

> Large market volume

> Stable market growth

> Increased application of new materials

4,30 2,40

8,87 5,11

www.rusnano.com 17

IV. Construction materials –

Project examples

FINANCING as of January 2012:

• RUSNANO share of committed capital as per January 2012– $0,46 bln • Private investors (in cooperation with RUSNANO) – $1,0 bn

COMPANY PRODUCT TECHNOLOGY

ADDITIVES Unicom Additives for bituminous concrete and asphalt

Devulcanized rubber nanoparticles for bituminous concrete and asphalt additives production

COMPOSITES Galen Composite reinforcement and fittings

Reinforcement of polymer with basalt fibers

LOW EMISSIVITY GLASS

STiS Low emissivity glass Glass magnetron spattering in metal-oxide nanofilm vacuum

Source: RUSNANO, Roland Berger

www.rusnano.com 18

Best-In-Class Partners to Ensure

Commercial Focus

Russian Financial Partners

International Funds and Financial Institutions

Ulyanovsk

Belgorod

Penza

Moscow

St. Petersburg

Tatarstan

Regional Governments

Development Institutions

…and 26 more

Strategic Partners

www.rusnano.com 19

Demand Promotion - Important Step to

Develop Russian High-tech Market

• Russia has huge government related entities in energy, telecommunications, car

production and transportation sectors, which annual investment programs exceed

$10 bln. This is one of the prominent consumers for high-tech products and solutions

• RUSNANO works closely with potential consumers of nanotechnology products to

educate them and explain the efficiency behind high-tech solutions

www.rusnano.com 20

RUSNANO is a Catalyst for the Commercialization and

Growth Stages High-tech Investments in Russia

RUSNANO actively cooperates with financial and strategic investors to co-finance nanotechnology

projects

• Leveraging strong relationships and administrative support of local governments, RUSNANO is

able to realize green-field projects in any region of Russia depending on geographical needs and

required resources;

• Strategic investors including the largest Russian industrial groups provide equity and debt

financing, production sites, technology and intellectual property for project companies;

• Russian and foreign Private Equity & Venture Capital funds find it attractive to co-invest in

nanotechnology projects.