ALTIMO: Leading Emerging Markets Growth

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ALTIMO Leading Emerging Markets Growth
London, 2007
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Altimo is the Telecom Investment Arm of Alfa
Group
Market Value of USD 50 billion
Russian Technologies Investment in
and development of promising Russian commercial
and consumer technologies
Alfa Bank Wide range of financial services,
including corporate banking, retail banking,
investment banking, trade finance and asset
management
TNK-BP Russias third largest vertically
integrated oil company in terms of production
A1 Group Large-scale proprietary and for-client
investment into Russia, the CIS as well as other
emerging markets
AlfaStrakhovanie Insurance Group One of the
largest non-obligatory insurance companies in
Russia
Alfa Asset Management The Groups asset
management arm whose clients include Russian as
well as international institutional and private
clients Alfa Capital Partners The Groups
private equity and real estate investment group 
Altimo Telecom Investment Arm of Alfa
Perekriostok and Pyaterochka merged to form X5
Retail, Russias leading food retailer and
discounter
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Altimos Portfolio30 bn of Assets
26,3
25,1
13,2
51
441)
43,5
Mobile RussiaKazakhstan Ukraine Uzbekistan Tajiki
stan Georgia Armenia
Mobile Russia Tajikistan
Fixed Mobile Russia Ukraine
Mobile Kirgizstan
Mobile Ukraine
Mobile Turkey Ukraine
41,45
27
56
20
44
37
Azerbaijan Kazakhstan Georgia Moldova
59

1. Economic interest 29

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Altimos strategy is focused on three key
activities
Vision

• Become the leading emerging markets player in the
  telecom industry

Strategy

• Continue adding value to our current asset
  portfolio by providing strategic directions
  rather than exerting management control
• Invest into emerging telecoms markets of South
  and South Eastern Asia leading the worlds
  economic growth
• Establish a strategic partnership with a European
  mobile operator to create a leading global
  telecoms player.

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Since 2005, Altimo has significantly increased
total value of its assets

• Vimpelcoms market capitalization has increased
  more than threefold since June 05, while
  Altimos effective ownership of the company has
  grown from 33 to 44.
• Golden Telecoms stock price increased twofold
  since September 06.
• Turkcell market capitalization has soared to a
  6-year high last month.

Asset Value (USD bln.)
Source Companies MCap and valuations
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Altimo has investedin 12 key Eurasian markets
Russia GDP growth 7 2006
Total number of SIMs152Mn SIM penetration
rate 106
Georgia GDP growth 9 2006 Total
number of SIMs 1,5Mln SIM penetration rate
32
Ukraine GDP growth 7 2006 Total
number of SIMs 49Mln SIM penetration rate
105
Kazakhstan GDP growth 11 2006
Total number of SIMs 8Mln SIM penetration
rate 54
Turkey GDP growth 5 2006 Total
number of SIMs 53Mln SIM penetration rate 73
Kyrgyzstan GDP growth 4 2006
Total number of SIMs 1Mln SIM penetration
rate 21
Armenia GDP growth 13 2006 Total
number of SIMs 1Mln SIM penetration rate 30
Tajikistan GDP growth 8 2006
Total number of SIMs 1Mln SIM penetration
rate 12
Uzbekistan GDP growth
7 2006 Total number of SIMs 2,6Mln SIM
penetration rate 20
Cambodia GDP growth 5,5 2006
Total number of SIMs 1,3 Mln SIM penetration
rate 10
Source Companies and analysts reports
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Altimo focuses its
international expansion on SE Asia
Altimo is committed to the future of mobile
telecoms of South-Eastern Asia. In 2006, Altimo
announced plans to invest up to 2 bn in each of
the markets above. Altimo will continue driving
growth in telecommunications companies that have
the potential to become top service providers in
their home markets.
Altimo opened its Representation office in Hanoi,
Vietnam in November 2006. Vietnams economy has
proved one of most promising in the region.
Altimo established its presence in Cambodia by
buying Sotelco mobile operator in July 2007, the
companys first acquisition in the region.
Altimo opened its Representation office in
Jakarta, Indonesia in December 2006. Altimo is
keen to explore business opportunities of this
vast and fast-growing market.
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Expansion Why South-Eastern Asia?
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High Economic Growth Rates
Projected real growth in GDP and income per capita 2006 (pa) Projected real growth in GDP and income per capita 2006 (pa) Projected real growth in GDP and income per capita 2006 (pa) Projected real growth in GDP and income per capita 2006 (pa) Projected real growth in GDP and income per capita 2006 (pa)
Country GDP inUS terms GDP in domesticcurrency or at PPPs Population GDP per capitaat PPPs
Brazil 5.4 3.9 0.7 3.2
Russia 4.6 2.7 -0.5 3.3
India 7.6 5.2 0.8 4.3
China 6.3 3.9 0.1 3.8
Indonesia 7.3 4.8 0.6 4.2
Turkey 5.6 4.2 0.7 3.4
Mexico 4.8 3.9 0.6 3.3
Source PricewaterhouseCoopers
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Large Populations
Countries Ranked by Population (Mln) 2006 Countries Ranked by Population (Mln) 2006 Countries Ranked by Population (Mln) 2006 Countries Ranked by Population (Mln) 2006
Country Population Country Population
China 1,314 Nigeria 131
India 1,095 Japan 127
United States 298 Mexico 107
Indonesia 245 Philippines 89
Brazil 188 Vietnam 84
Pakistan 166 Germany 82
Bangladesh 147 Egypt 79
Russia 142 Ethiopia 75
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Highest Mobile SubscriberGrowth in Asia
Subscriber growth 2003 2004 2005 2006 2007 2008
Asia Pacific 27.4 21 23.6 21.1 16.5 12.4
Europe 16.2 20.8 23.1 9.3 5.9 4.2
Latin America 22.7 39.9 36.2 18.8 11 5.1
North America 12.4 14.6 13.8 10.7 7.1 5.5
Middle East and Africa 28.9 35.8 59.7 23.6 13.8 9.1
World 21.4 23 26.7 16.5 11.7 8.4
Source Lehman Brothers Equity Research
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Turkcell case shows Altimos professional
expertise in investing into emerging markets
Turkcell Facts
Turkcell Share Price (USD per ADR)

• Altimo acquired a minority stake in Nov 2005,
  gaining 2 seats in the Board
• A new professional CEO was appointed in Jan 2007
• Turkcell continues its focus on delivering the
  best quality network coverage in Turkey
• Turkcell has also increased focus on new emerging
  markets expansion to deliver substantial growth
  of revenues and EBITDA
• Turkcell has been working on facilitating the
  start of the 3G era in Turkey and it is ready to
  invest in 3G license to prepare for the next
  generation mobile services

2006- 2007

• Turkcell market capitalization has soared to a
  6-year high last month.

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• Thank you
• for your attention