Investor relations

Operations
Strategy
Key financials
Funding
Ratings and auditors
Regional network
History

Eurokommerz today

Eurokommerz is a provider of commercial finance services. According to Expert rating agency's year-end data for 2007, Eurokommerz is the leader in the Russian factoring market by all key indicators: the factoring portfolio size, the volume of accounts receivable assigned and the number of factoring clients.

Eurokommerz is co-owned by the company's management and Russia New Growth Fund managed by Troika Capital Partners, whose beneficiaries include the European Bank for Reconstruction and Development (EBRD), Temasek Holdings, Goldman Sachs, Troika Capital Partners, LGT Capital Partners, AXA among others. In October 2008 a consortium of investors, including UBS Pactual, Eastgate Capital (member of NCB Group), Fleming Family & Partners, Troika Dialog Group and other institutional investors became the shareholder of the company.

The Company is a member of the Commercial Finance Association (CFA) and the International Factors Group (IFG).

As at June 30, 2008, Eurokommerz employed 566 people.

Operations

Eurokommerz actively deals with 3,700 clients and over 21,500 debtors. The company`s sales network consists of 55 sales and customer support offices in Russia, two representative offices in Ukraine and Kazakhstan and approximately 2,900 independent sales agents.

The company's growth is supported by its in-house IT platform and strong risk management system. Eurokommerz's experience enabled it to form one of the largest statistical database in Russia and the CIS containing credit information of more than 50,000 invoice sellers and debtors. The database is categorised by size, industries and geography.

Strategy

The group's strategy is to create a leading international commercial finance business in Russia, the CIS and other emerging markets. The priorities of this strategy are:

• Maintain and grow current market position in the Russian, Ukrainian and Kazakh factoring markets and expand into other emerging markets if opportunities arise;
• Widening of the range of offered products via continued introduction of innovative products in all markets;
• Continue to focus on securing and diversifying funding sources and maintain strong capital base.

Key financials

(as of December 31, 2007)*

Notes:
¹ - Loans and borrowings, debt securities issued
² - From August 3, 2006 (the date of formation of the Company) to December 31, 2006.
* - according to audited IFRS financial statements

(for H1 2008)

 Profit and Loss (‘000 roubles)

Balance Sheet (‘000 roubles)

* - according to unaudited IFRS financial statements

Funding

Eurokommerz has a diversified investor base consisting of both Russian and international financial institutions. Eurokommerz has placed four bond issues totaling RUR 12 Bn and raised additional RUR 5 Bn through a CLN offering.

In December 2007, Eurokommerz became the first factoring company in Russia and Eastern Europe to successfully complete a securitisation of factored accounts receivable. The innovative deal was managed by Deutsche Bank and VTB and raised RUR 11.3 Bln as at June 30, 2008.

Having a combination of short-term factoring assets and long-term liabilities ensures Eurokommerz's financial stability and strong fundraising ability.

Ratings and auditors

Eurokommerz's debt obligations are confirmed by stable ratings from Moody's. The Company's short and long-term assets rating is set at B2/NP/A3.ru, with a stable long-term rating outlook. The Company's financial statements have been audited by Deloitte. Starting 2008, the company`s financial statements will be audited by KPMG.

Regional network

• The Company's branch network covers all economically developed Russian regions
• 55 sales and customer support centers in Russia's 11 time zones
• Subsidiaries in Ukraine and Kazakhstan
• Call center
• Approximately 2,900 independent sales agents
• Decision-making and risk management is centralized in the Moscow headquarters
  

History

2000-2002

• Initial factoring transactions completed
• Active search for JV partners

2003

• Launch of regular standard factoring services

2004

• Further expansion of the statistical database of Russian companies due to the growing number of clients and debtors

2005

• The annual turnover (amount of accounts receivable purchased ) reached RUR 30.6 Bn, and the number of clients reached 754

2006

• Russia New Growth Fund, co-owned by foreign and Russian investors, becomes a shareholder of Eurokommerz
• The annual amount of factored accounts receivable as at year-end of 2006 reached RUR 66.1 Bn, and the number of clients reached 1,522

2007

• Eurokommerz became the leader in the Russian market, with a RUR 29.25 Bn factoring portfolio, RUR 120.96 Bn of factored accounts receivable, and a total of 3,317 clients
• Eurokommerz becomes the first factor in Russia to securitise its portfolio
• Eurokommerz enters the Ukrainian and Kazakh markets, the total number of offices reaches 57

2008

• The company remains the factoring market leader in Russia and the CIS. Eurokommerz works with approximately 24,000 companies
• Eurokommerz becomes the first Russian member of the Commercial Finance Association
• In October 2008 a consortium of investors, including UBS Pactual, Eastgate Capital (member of NCB Group), Fleming Family & Partners, Troika Dialog Group and other institutional investors became the shareholder of the company