Agriculture

Rusgrain: Coming together nicely

Ivan Nikolaev
Senior Analyst
+7495 777 66 77 (ext.2646)
Ivan.Nikolaev@aton.ru

ATONLINE LIMITED does business and seeks to do business with companies covered in its research reports. Investors should consider
this report as only one factor in their investment decision. Please see the Disclosures Appendix for all important disclosures.
 ATON July 2010

RUSGRAIN: OVERVIEW

2011E P/E ratios Bull points

 Vertical integration: The company produces, processes and trades grain. It
also stores it at its own elevators
Rusgrain is buying out profitable poultry and eggs producer Agrosoyuz. The
deal started in mid 2009, is financed through additional share issue of
Razgulay 21.6 Rusgrain, and is expected to be finalized in early 3Q 2010
BEF 16.0 Optimal harvest yield/costs per ha ratio: The company’s grain production
KFC Holdings Malaysia 13.8 cost per tonne of RUB3,400 is below the current grain price (RUB3,500-5,000
KWS 13.3
Charoen Pokphand Foods 12.7
depending on the grain grade mix)
Grain peers average 12.5 The stock is trading with huge discounts to EM peers and sharply
Universal Robina Corp 11.8 underperformed its Russian peers
Andersons 10.4
Poultry peers average 9.9 The Russian government’s initiatives to substitute food imports with local
Archer-Daniels-Midland 9.3 production drive domestic agricultural output and prices
Rainbow Chicken 9.0
GrainCorp 8.7
 We forecast earnings to turn positive in 2010 and grow by 60% in 2011 on
GFPT 8.4
the back of merger with Agrosoyuz
Bunge 8.3 The stock is trading 80% below its historic high, when the company was
Cherkizovo 7.4 half the size it is now
MHP 6.1
Rusgrain post merger 5.4

0 5 10 15 20 25
Bear points
 High debt: We estimate the 2010E gross debt/EBITDA ratio at 3.6x,
however, high leverage is usual for agricultural companies
 Low stock liquidity

2
 ATON July 2010

VALUATION
 Our fair value is based on a six-year DCF model with a 3% terminal growth rate and a
Current MktCap: $107mn 14.5% WACC
Fair equity value after M&A:  Rusgrain’s land bank alone is worth $30mn on our estimates (not included in our
$200mn 2011E valuation)
 Company is trading on just 5.4x 2011E P/E multiple on consolidated basis

MktCap EV P/E EV/EBITDA EV/Sales

Company name Ticker $mn $mn 2010E 2011E 2012E 2010E 2011E 2012E 2010E 2011E 2012E
Rusgrain post merger RUGR RU 107 191 9.2 5.4 3.9 7.2 4.8 4.1 0.9 0.6 0.6
Rusgrain (pro-forma) RUGR RU 107 191 6.7 5.4 3.9 5.5 4.8 4.1 0.7 0.5 0.6
Grain peers
BEF BEFSDB SS 402 394 neg 16.0 11.9 neg 8.6 7.4 3.3 2.6 2.2
Razgulay GRAZ RU 206 1,024 neg 21.6 6.5 7.4 6.7 6.2 0.9 0.9 0.9
Andersons ANDE US 608 758 11.2 10.4 na 5.6 5.8 na 0.2 0.2 na
Archer-Daniels-Midland ADM US 17,124 20,923 9.2 9.3 8.0 6.3 6.1 6.6 0.3 0.3 0.3
Bunge BG US 7,733 9,357 9.3 8.3 na 5.4 5.2 na 0.2 0.2 na
GrainCorp GNC AU 978 1,164 12.5 8.7 8.2 6.5 5.0 4.8 0.7 0.6 0.5
KWS KWS GR 1,009 921 15.5 13.3 12.0 7.0 6.2 6.0 1.0 0.9 0.9
SLC Agricola SLCE3 BZ 782 993 nm nm 16.7 16.5 9.0 7.2 2.9 2.2 1.9
Grain peers average 11.6 12.5 10.5 7.8 6.6 6.4 1.2 1.0 1.1
Poultry peers
MHP MHPC LI 1,503 1,819 7.0 6.1 5.8 5.6 5.1 4.7 2.0 1.8 1.7
Cherkizovo CHE LI 1,197 1,628 8.7 7.4 6.5 8.0 7.1 6.3 1.3 1.1 1.0
Charoen Pokphand Foods CPF TB 4,992 5,960 13.1 12.7 11.9 9.6 9.1 8.8 1.1 1.0 0.9
GFPT GFPT TB 375 450 10.0 8.4 7.9 7.1 6.3 5.9 1.1 1.0 1.0
KFC Holdings Malaysia KFC MK 689 659 15.1 13.8 11.9 7.4 6.9 6.0 0.9 0.8 0.8
Rainbow Chicken RBW SJ 727 na 10.0 9.0 na na na na na na na
Universal Robina Corp URC PM 1,430 1,480 12.1 11.8 10.9 6.7 6.2 6.1 1.2 1.2 1.1
Poultry peers average 10.9 9.9 9.1 7.4 6.8 6.3 1.3 1.1 1.1
Note: Rusgrain post merger consolidates AGS financials starting from 2H 2010

3
 ATON July 2010

COMPANY SNAPSHOT

Shareholder structure Business structure

OJSC Rusgrain
Free float
27% Rusgrain Ltd.

Crop production Trading Seeds production

Founders
73%
Processing and storage Milk production

Rusgrain’s acquisition history

Merger with
Flour production Fodder poultry and eggs
plant acquired production plant producer
acquired Agrosoyuz

2003 2004 2005 2006 2007 2008 2009

Cereals processing plant with Six agricultural Grain company (elevator,

36,000 tonnes capacity, two companies fodder production and
elevators and an agricultural acquired. Total mill)
company with 5,000 ha of land bank acquired
fertile land acquired reached 50,000
ha

4
 ATON July 2010

FORECASTS: RUSGRAIN STAND-ALONE

Rusgrain revenue breakdown ($mn) Rusgrain drivers
 Increasing domestic meat and milk production drive grain
200 consumption
180
160
 Wide-reaching government support for domestic agriculture
140 Elevators  Moves to substitute food imports with domestic production
120 Trading drive Russian output and prices
100
80 Processing Rusgrain risks
60 Crops prodution
 Grain price volatility means margins volatility
40
20  Fertiliser price volatility may negatively affect company’s
0 margins
2007 2008 2009E 2010E 2011E 2012E 2013E 2014E Russian economy growth is a mixed blessing. Growing
purchasing power of the population means higher salaries
Prices assumptions (RUB/tonne) Rusgrain gross profitability outlook
16,000

14,000
30%
12,000
25%
10,000
Winter wheat 20%
8,000 Summer wheat 15%
Sunflower
25% 26% 25% 24% 23% 22%
6,000 10% 22% 21%
17%
4,000 5%
0%
2,000
07 08 E E E E E E E
20 20 09 1 0 01 1 01 2 1 3 01 4 15
0 20 20 2 2 20 2 20
07 08 09 E E E E E E
20 20 20 10 11 12 13 14 15
20 20 20 20 20 20

5
 ATON July 2010

FORECASTS: AGROSOYUZ (AGS)

AGS revenue breakdown ($mn) AGS drivers
 Russian poultry prices likely to rise as a result of the
250
government’s intention to up domestic output to 90-95% of
food consumed from 60-70% currently
200
 Meat imports as % of meat consumption in Russia have fallen
150
over the last seven years from 38% to 30%.
 0% tax rate on agricultural production due to be in force until
100 2013
 Availability of subsidised loans (eight years, low interest)
50  Low capex needs
0
AGS risks
2008 2009 2010E 2011E 2012E 2013E 2014E 2015E
Grain price volatility may negatively affect AGS margins
Currency risk. Rouble fluctuations may seriously affect local
Other Chicken eggs Processed poultry Poultry grain prices
Russian economy growth is a mixed blessing. Growing
purchasing power of the population means higher salaries
AGS costs breakdown ($mn) AGS gross profitability
140
40%
120
35%
100
30%
80 25%
60 20%
37%
31% 33%
40 15%
25% 27%
10% 22%
18%
20
5%
0
0%
2008 2009 2010E 2011E 2012E 2013E 2014E 2015E
2009E 2010E 2011E 2012E 2013E 2014E 2015E

Raw materials Fodder costs Utilities Gas Heat

6
 ATON July 2010

FORECASTS: COMBINED COMPANY

Consolidated revenue breakdown ($mn) Rusgrain’s gross profitability by division
35%
30%
30% 27% 28%
450 26%
24%
400 25% 22% 23%
21%
350
Agrosoyuz 20% 17%
300
250 Trading and storage 15%
200 Processing 10%
150
Crops prodution
100 5%
0% 0% 0% 0% 0% 0% 0% 0% 0%
50 0%
0
2007 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E
2009E

2010E

2011E

2012E

2013E

2014E

2015E
2007

2008

Note: Rusgrain assumed to consolidate AGS financials starting from 2H 2010

RUGR stand-alone AGS stand-alone Consolidated company

Debt/EBITDA ratio (x) Rusgrain consolidated profitability

35 20% 16.9% 18.1%

29.3 15.2%
13.7%
30 12.3% 12.4%
15% 11.1% 10.9%
9.5%
25 8.4%
10% 6.8% 6.5%
4.5% 3.4% 4.1%
20 5%
-2.0%
15 11.2 0%
2005 2006 2007 2008 2009E 2010E 2011E 2012E 2013E
10 7.0 -5%

5 3.4
2.1 1.3 0.8 -10% -8.8%
0.4
-10.9%
0 -15%
2007 2008 2009E 2010E 2011E 2012E 2013E 2014E Net EBITDA

7
 ATON July 2010

COSTS
Grain production costs structure (2010E) Grain production costs vs harvest yield

Utilities Seeds
Elevator services 12,000 3.5
1% 11%
16%
10,000 3.0
Chemicals
9% 2.5
8,000
2.0
Equipment rent 6,000
12% Fertilizers 1.5
14% 4,000
1.0
Maintenance 2,000 0.5
6%
0 0.0
Fuel
Salaries 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E
10%
21%
Costs/ha, RUB (LHS) Costs/tonne, RUB, (LHS) Harvest yiled, t/ha (RHS)

AGS costs structure (2010E) Poultry production costs and prices, RUB/kilo
Gas Heat 120
Uti lities
3% 2%
6% 100

80

60

40

20

0
2008 2009 2010E 2011E 2012E 2013E 2014E 2015E
Raw materi als
89% Costs per 1 kilo of poultry Price per 1 kilo of poultry

8
 ATON July 2010

AGRICULTURAL MARKET: DRIVERS AND RISKS

Meat imports as % of consumption Drivers
50%  Expanding meat consumption in Russia
 Increasing import duties and reduced quotas should drive domestic meat and grain production
40%
 Government plans to boost domestic milk production should support grain consumption and in
30%
turn grain prices

20% 42% 41% 40% 41% 40%

36%
Risks
31%
27%
25%
 Currency risk. Rouble fluctuations may seriously affect local grain prices.
10%
 Uncertainty regarding global grain supply. Current global grain price is below cropping costs in
developed countries. On one hand this may put pressure on global grain production driving grain
0%
prices. On the other hand, this may push governments to implement more protectionists and
2009E

2010E

2011E

2012E

2013E
2005

2006

2007

2008

stimulating measures for farmers.

Russian meat market breakdown (mn tonnes) Meat consumption per capita (kg pa) Meat consumption per capita (kg pa)

10 mn tonnes $bn 50 Biological norm for Russian climate = 200 g per day
90 80
2.9 80
8 40 70
2.8 70 73
2.4 2.4 2.5 2.6
2.5 2.4 2.3 2.4 60
6 30 60
50 50
2.9 2.9 3.0 86
4 2.7 2.7 2.8 2.8 20 40 40
2.6 2.7 74 75
2.5 30 61 63 65 66 66
53 55 56 30 55 50 52 54 56
2 10 20 45
2.6 2.7 2.7 2.8 2.9 3.0 3.1 3.2 20
2.2 2.4 10 4
0 0 0 10

USA
2009E

2010E

2011E

2012E

2013E

2014E

UK
India

China
2005

2006

2007

2008

Germany

Brazil
France

BRC average
Russia 2013E
Russia 2008

2014E
1990

1995

2000

2005

2006

2007

2008
Poultry Pork
Beef Value (RHS)

9
 ATON July 2010

INDUSTRY SNAPSHOT
Russian agricultural land (mn ha) Russian grain harvest (mn tonnes) Russian grain harvest yield (mn tonnes)
140
140
120 3.0
100 120

80 100 2.5

60 80 2.0
40 60 1.5
20
40
0 1.0
2009E
2010E
2011E
2012E
2013E
2014E
1992
1995
2000
2003
2004
2005
2006
2007
2008

20
0.5
0

2009E
2010E
2011E
2012E
2013E
2014E
1992
1995
2000
2003
2004
2005
2006
2007
2008
0.0
Cultivated land land, mn ha Idle land, mn ha

2009E
2010E
2011E
2012E
2013E
2014E
1992
1995
2000
2003
2004
2005
2006
2007
2008
NPK* domestic price outlook ($/t) Tractors per 1000 cropped hectares Mineral fertilisers usage (mn tonnes)
600 12 12

500 10 10
400
8 8
300
6 6
200
4 4
100

0 2 2
2009E

2010E

2011E

2012E

2013E

2014E

2015E
2005

2006

2007

2008

0 0
1990
1991
1992
1993
1994
1995
1996
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

1990
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
*NPK = Nitrogen, Phosphor, Potash

10
 ATON July 2010

GOVERNMENT SUPPORT

 The government subsidises domestic agricultural companies interest payments on non-public debt. The government compensates
interest payments up to the current refinancing rate (8.50% currently), e.g. if company borrows $100mn at a 10% interest rate, its
annual interest payments will amount to $1.5mn
 0% income tax rate planned to be in effect until 2013
 Import duties and quotas on meat, milk and sugar support local prices and stimulate investment activity in the domestic agricultural
sector
 The government has intervened to prop up grain prices at various points since 2003
 Leasing programme aimed to facilitate replacement of outmoded agricultural machinery. Rosagroleasing (government institution
which provides equipment to agricultural producers) has introduced 7 to 15 year leasing programmes for livestock and agricultural
equipment at a 2% lease rate with 7% upfront payment, i.e. spreading investments into grain, meat and milk production over 7 to 15
years

Russian meat imports quotas and duties

000 tonnes In-quota tariff Above quota tariff

Beef 560 15% 50%, min EUR 0.1/kg
Pork 472 25% 75%, min EUR 1.5/kg
Poultry 780 20% 80%, min EUR0.7/kg

11
 ATON July 2010

FORECASTS: INCOME STATEMENT, $mn

2005 2006 2007 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E
Revenue 46.0 54.7 88.0 99.8 101.5 210.7 303.8 321.5 339.4 358.7 377.8
CoGS -36 -42 -70 -85 -91 -161 -229 -237 -245 -255 -263
Gain (loss) from change in value of bio assets 0 0 1 6 4 -1 -1 -1 -1 -1 -1
Gross profit 10 13 19 21 15 48 74 84 94 103 114
SG&A -8 -10 -15 -20 -14 -30 -43 -45 -48 -50 -53
Invemtiry losses -1 0 0 0 0 0 0 0 0 0 0
Negative goodwill 0 0 0 0 0 0 0 0 0 0 0
Impairment of PPE 0 0 0 0 0 0 0 0 0 0 0
Bad debt expense and change in provisions 0 -1 0 0 0 0 0 0 0 0 0
Other expense, net 0 -1 -1 -2 0 0 0 0 0 0 0
EBIT 1 0 4 -1 1 19 32 39 46 53 61
EBITDA 2 2 6 4 3 23 39 47 54 63 71
Financial income 0 1 1 1 0 0 0 0 0 0 0
Financial expense -2 -3 -6 -10 -10 -9 -9 -7 -5 -3 0
PBT -1 -2 -1 -9 -9 10 23 32 41 50 61
Income tax 0 0 -1 0 -0.4 -1 -3 -5 -8 -10 -12
PAT -1 -2 -2 -9 -10 8 20 27 33 40 49
Minority interest 0 0 0 0 0 0 0 0 0 0 0
Net income -2 -2 -2 -9 -9.4 8 20 27 33 40 49
Margins
Gross 21.1% 23.2% 21.7% 21.1% 14.3% 22.9% 24.5% 26.0% 27.6% 28.8% 30.2%
EBIT 1.5% 0.6% 4.0% -0.7% 0.5% 8.9% 10.5% 12.0% 13.6% 14.8% 16.2%
EBITDA 3.3% 3.1% 6.8% 4.5% 2.9% 10.7% 13.0% 14.5% 16.0% 17.5% 18.8%
Net neg neg -2.0% -8.8% -9.2% 3.8% 6.5% 8.4% 9.7% 11.1% 12.9%
Growth rates
Revenue 18.8% 61.0% 13.4% 1.6% 107.7% 44.1% 5.8% 5.6% 5.7% 5.3%
EBITDA 10.3% 257.3% -25.4% -34.9% 676% 75.1% 18.1% 16.7% 15.9% 12.8%
Net income nm nm nm nm nm 142.3% 37.7% 21.7% 21.5% 22.3%
Other ratios
Effective tax rate nm nm nm nm nm 15% 15% 15% 20% 20% 20%
Effective interest rate 10.8% 7.6% 14.4% 19.4% 13.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
SG&A as % of revenue 17.9% 18.6% 17.0% 17.0% 17.0% 14.0% 14.0% 14.0% 14.0% 14.0% 14.0%

12
 ATON July 2010

FORECASTS: BALANCE SHEET, $mn

2005 2006 2007 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E
PPE 13 20 22 32 37 76 80 82 84 84 84
Goodwil l 1 1 1 2 2 2 2 2 2 2 2
Advances for land acquisition 0 0 0 7 0 0 0 0 0 0 0
Other investments 0 0 6 9 9 9 9 9 9 9 9
Deferred tax assets 0 0 0 0 0 0 0 0 0 0 0
Total LT assets 14 21 28 50 48 87 91 93 95 95 95
Cash and equivalents 1 0 0 1 16 5 17 22 36 58 78
Receivables 2 3 7 12 13 23 29 31 33 34 36
Other receivables 5 4 2 3 3 2 2 1 1 1 1
Inventories 6 15 8 12 15 19 23 24 25 26 27
Biological assets 0 2 3 4 4 4 4 4 4 4 4
Other investments 2 4 4 2 2 2 2 2 2 2 2
Prepayments for current assets 0 0 3 2 0 0 0 0 0 0 0
Total current assets 16 29 27 36 51 54 77 84 100 124 147
Total assets 30 50 55 86 99 141 168 177 195 219 242
Share capital 1 1 1 1 1 1 1 1 1 1 1
Additional paid-in capital 1 2 2 21 21 21 21 21 21 21 21
Revaluation 0 0 0 0 0 0 0 0 0 1 2
Retained earnings 6 3 2 -6 -15 -7 12 39 72 112 161
Total equity attributable to shareholders 8 5 4 16 7 15 35 62 95 135 185
Minority interest 1 1 1 4 0 0 0 0 0 0 0
Total equity 9 6 5 20 7 15 35 62 95 135 185
LT debt 4 1 4 3 18 28 28 18 0 0 0
Finance lease liabilities 0 0 1 2 2 2 2 2 2 2 2
Net assets attributable to minority participants in LLC subsidiaries
0 1 0 0 0 0 0 0 0 1 2
Deferred tax liabilities 1 1 1 2 2 3 5 5 5 6 6
Total LT liabilities 5 4 6 6 21 33 34 25 8 9 10
ST debt 14 38 38 47 57 65 60 50 50 30 0
Finance lease liabilities 0 0 1 2 2 2 2 2 2 2 2
Payables 4 2 4 10 11 24 34 36 38 40 43
Tax provision 0 0 1 1 1 1 2 2 2 2 3
Total ST liabilities 18 41 44 60 71 93 99 91 93 75 47
Total liabilities 22 44 50 66 92 126 133 116 100 84 57
Total equity and liabilities 31 51 55 86 99 141 168 177 195 219 242
Gross debt 17.2 39.1 41.7 49.9 74.9 92.9 87.9 67.9 50.4 30.4 0.0
Net debt 16.3 38.8 41.2 48.7 59.2 87.7 70.6 45.4 14.3 -27.6 -78.5
Debt/Equity 1.9 6.1 7.8 2.5 10.7 6.1 2.5 1.1 0.53 0.22 0.00
Debt/EBITDA 11.4 23.4 7.0 11.2 25.8 4.1 2.2 1.5 0.93 0.48 0.00
RoE 11.9% 7.0% 75.9% -3.6% 12.5% 133.9% 101.7% 70.2% 57.4% 46.5% 39.5%
RoCE 4.1% 1.0% 8.6% -1.0% 1.1% 18.7% 28.8% 33.4% 37.5% 37.9% 39.5%

13
 ATON July 2010

FORECASTS: CASH FLOW, $mn

2005 2006 2007 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E
Net income -1.6 -2.1 -1.8 -8.8 -9.4 8.1 19.6 27.0 32.8 39.9 48.8
Depreciation & Amortization 0.8 1.4 2.4 5.1 3.9 3.7 7.6 8.0 8.2 10.0 10.0
Other Items 10.4 11.9 1.1 1.7 6.6 -24.6 3.3 0.6 0.5 2.4 2.4
(Increase)/Decrease In Net Working Capital -10.9 -22.3 4.6 -12.8 -2.5 -0.7 -1.3 -0.5 -0.4 -0.4 -0.4
Cash Flow From Operations -1.3 -11.2 6.4 -14.8 -1.4 -13.5 29.2 35.1 41.2 51.9 60.8
Capital Expenditures -0.5 -7.3 -8.1 -16.6 -8.5 -15.0 -12.0 -10.0 -10.0 -10.0 -10.0
Free Cash Flow -3.4 -19.3 -1.7 -31.4 -9.9 -28.5 17.2 25.1 31.2 41.9 50.8
Financing Cash Flow 3.0 18.8 0.5 32.8 25.0 18.0 -5.0 -20.0 -17.5 -20.0 -30.4
Net Change In Cash -0.4 -0.5 -1.2 1.5 15.1 -10.5 12.2 5.1 13.7 21.9 20.4
Cash, period beginning 1.3 1.0 0.3 -0.8 0.6 15.7 5.2 17.4 22.5 36.1 58.1
Cash, period end 1.0 0.5 -0.8 0.6 15.7 5.2 17.4 22.5 36.1 58.1 78.5

14
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contained therein are fair and reasonable, neither the analysts, the company, nor any of its directors, officers or employees, have verified the contents thereof unless disclosed otherwise below. Accordingly, neither the analysts, the company, nor any of its directors, officers
or employees, shall be in any way responsible for the contents thereof, and no reliance should be placed on the accuracy, fairness or completeness of the information contained in the material.
Neither the analysts, the company, nor any of its directors, officers or employees, accept any liability whatsoever for any loss howsoever arising from any use of the material or its contents or otherwise arising in connection therewith. Each analyst and/or persons connected
with any of them may have acted upon or used the information herein contained, or the data or analysis on which it is based, before its publication. This material may not be relied upon by any of its recipients or any other person in making investment decisions with respect
to the company’s securities. The material does not constitute a valuation of the company’s business, assets or securities for the purposes of the legislation on valuation activities for the company’s country.
No part of his or her compensation was, or will be, directly or indirectly related to the specific ratings, forecasts, estimates, opinions or views in the material. Analysts’ compensation is determined based upon activities and services intended to benefit investor clients. Like all
of ATON LLC employees, analysts receive compensation that is impacted by overall ATON LLC profitability, which includes revenues from other business units within ATON LLC.
Each analyst or his or her affiliated company or other persons is or may be a member of underwriting group in a respect of proposed offering of the securities of the company. Each analyst may in the future participate in an offering of the company’s securities.
Investment ratings
Investment ratings are a function of ATONLINE LIMITED expectation of total return on equity (forecast price appreciation and dividend yield within the next 12 months, unless stated otherwise in the material).
The investment ratings may be determined by the following standard ranges:
Buy (expected total return of 15% or more);
Hold (expected total return of 0-15%);
Sell (expected negative total return).
Standard ranges do not always apply to emerging markets securities and ratings may be assigned on the basis of the analyst’s knowledge of the securities. Investment ratings are determined at the time of initiation of coverage of a company of equity securities, or a change in
target price of any of the company’s equity securities. At other times, the expected total returns may fall outside of the range used at the time of setting a rating because of price movement and/or volatility. Such interim deviations will be permitted but will be subject to
review by Research Department Management. It may be necessary to temporarily place the investment rating “Under Review” during which period the previously stated investment rating may no longer reflect the analysts’ current thinking. For companies where ATONLINE
LIMITED has not expressed a commitment to provide continuous coverage, to keep you informed, analysts may prepare material covering significant events or background information without an investment rating. Your decision to buy or sell a security should be based upon
your personal investment objectives and should be made only after evaluating the security’s expected performance and risk.
Disclaimer
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ATON July 2010
Atonline Limited
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ATON RESEARCH TEAM
Oil & Gas Special Situations & Small Caps Group Telecoms & Media Editorial
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Slava Bunkov Mikhail Pak Irina Skvortsova
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slava.bunkov@aton.ru mikhail.pak@aton.ru irina.skvortsova@aton.ru Andrew Risk
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Utilities Nikita Melnikov Metals & Mining andrew.risk@aton.ru
Ilya Koupreyev +7 (495) 777 6677 (ext. 2659) Dinnur Galikhanov
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ilya.koupreyev@aton.ru dinnur.galikhanov@aton.ru Anna Bogdanova
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Vlad Nigmatullin Ivan Nikolaev Pavel Shelekhov anna.bogdanova@aton.ru
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vlad.nigmatullin@aton.ru ivan.nikolaev@aton.ru pavel.shelekhov@aton.ru Translator
Elena Korzhenevskaya
Alexey Evstratenkov +7 (495) 777 6677 (ext. 2678)
+7 (495) 777 6677 (ext. 2679) elena.korzhenevskaya@aton.ru
alexey.evstratenkov@aton.ru