London Stock Exchange

1
London Stock Exchange for companies from
Cheliabinsk region
2
AGENDA

• Why London?
• Reasons for listing
• Managed assets
• Main Market or AIM?
• Main Market
• International listings comparison
• Seasonality
• DR trading on the IOB
• Top 10 companies traded on the IOB
• AIM
• Capital raised
• AIM growth
• Total AIM IPOs
• Access to capital
• Cost structure
• How to find us?
• Russian website
• Contact details

3
Main reasons for listing on the LSE
Liquidity Increasing and maintaining liquidity
Capital Raising it efficiently effectively when
required
Profile Maximising marketing/PR opportunities
Growth
Independent Market Expertise Recommendations on
how to maximise the value of joining a London
market
The LSE supports customers in maximising
shareholder value through supporting capital
raising and generating liquidity whilst
maximising opportunities from their increased
profile
4
Volume of Assets Managedin Financial Centres
Fund management activities in the UK are
concentrated in a single location London.
Source Big Dough, Hemscott (September 2005)
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Main Market or AIM?

• Pre-vetting of Prospectus by the UKLA
• Compliance required with the rules of the UKLA
• Normally a three-year trading record required
• Minimum of 25 of GDRs/shares in public hands
• Prior shareholders approval for certain
  transactions
• Sponsors needed for certain transactions

• Regulation by the LSE
• No trading record required
• No minimum amount of shares to be in public hands
• In most cases, no prior shareholder approval
  required for transactions
• Normally, admission documents not pre-vetted by
  Exchange or UKLA but by nominated adviser (Nomad)
• Nomad required at all times

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AGENDA

• Why London?
• Reasons for listing
• Managed assets
• Main Market or AIM?
• Main Market
• International listings comparison
• Seasonality
• DR trading on the IOB
• Top 10 companies traded on the IOB
• AIM
• Capital raised
• AIM growth
• Total AIM IPOs
• Access to capital
• Cost structure
• How to find us?
• Russian website
• Contact details

7
International Listings
The Exchanges Main Market continues to be an
attractive venue for the international listings.
Source London Stock Exchange, August 2006
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International IPOsseasonality
Money Raised in International IPOs on Main Market
in 2006 YTD (mn)
Russian Company Other International Company
6,794
3,010
1,070
1,062
972
683
639
578
474
372
336
244
153
98
125
66
18
Rolta
TMK
Lotte
Rosneft
Severstal
Comstar
Carador
Aer Lingus
Goldenport
Cherkizovo
Chelyabinsk
Colt Telecom
AD Pharma
Sistema Hals
Kazmunaigas
Napo
Kingdom Hotels
Pharmaceuticals
Feb-06
Mar-
Apr-06
May-
Jul-06
Oct-06
Nov-06
06
06
In 2006, 17 international companies have raised
over 16 billion on the Exchanges Main Market.
Source London Stock Exchange, November 2006
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DR trading on IOB
Trading of DRs on International Order Book
(2001 - 7 MNTHS 2006)
Turnover
Trades
200
600
180
500
160
140
400
120
Trades '000
billion
100
300
80
Trade value
200
60
40
100
20
-
0
2001
2002
2003
2004
2005
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MNTHS
2006
In 2005, IOB total trading turnover was 131bn
and in the first 7 months of 2006 that number
increased to 172bn.
Source London Stock Exchange - July 2006
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Top 10 companies traded on IOB
70,000
180
160
60,000
Total Trade Value
140
Total Trades
50,000
120
40,000
100
Trade Value ( mn)
Trades (thousands)
80
30,000
60
20,000
40
10,000
20
0
0
Lukoil
Gazprom
Orascom
Samsung
Rosneft
Novatek
OTP BANK
Lotte
Evraz
Magyar

Jan-Oct 2006

CIS IOB trade value reached 73 of all IOB trade
this October, a new record high.
Source London Stock Exchange trade statistics
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AGENDA

• Why London?
• Reasons for listing
• Managed assets
• Main Market or AIM?
• Main Market
• International listings comparison
• Seasonality
• DR trading on the IOB
• Top 10 companies traded on the IOB
• AIM
• Capital raised
• AIM growth
• Total AIM IPOs
• Access to capital
• Cost structure
• How to find us?
• Russian website
• Contact details

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2006 A Record Year for Capital Raised on AIM
The success of AIM continues to grow and so does
its investor base.
Source London Stock Exchange, November 2006,
Includes further capital raises
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AIM growth - 2006
11 Months
14 Months
13 Months
AIM supports growing companies
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Total AIM IPOs - 2006
2006 has been a successful year for AIM with over
12bn raised at IPO this year alone.
Source London Stock Exchange, November 2006
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Access to further capital
AIM listing gives companies access to raise
further capital after IPO.
Source London Stock Exchange, August 2006
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Cost structure for AIM listing
The total cost of raising 50mn ranges between
2.5 - 5mn (5-10 cost range) excluding value
of options.
Source Oxford Said Business School MBA Project,
August 2006 as amended by London Stock Exchange
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AGENDA

• Why London?
• Reasons for listing
• Managed assets
• Main Market or AIM?
• Main Market
• International listings comparison
• Seasonality
• DR trading on the IOB
• Top 10 companies traded on the IOB
• 30/70 Rule - Rosneft
• AIM
• Capital raised
• AIM growth
• Total AIM IPOs
• Access to capital
• Cost structure
• How to find us?
• Russian website

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Russian website
www.londonstockexchange.com/ru
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Contact Details
Jon Edwards Senior Manager, CIS 44 (0) 20 7797
1599 jedwards_at_londonstockexchange.com Zarina
Korolova Manager, CIS 44 (0) 20 7797
4472 zkorolova_at_londonstockexchange.com WWW.LONDON
STOCKEXCHANGE.COM/RU