HMS Group

FY 2013 IFRS Results Conference call presentation April 2014

Financial results Business & Outlook Appendix

2

Financial Highlights

Financial highlights*, Rub mn

Revenue Gross profit EBITDA¹ Operating profit Operating profit adj.² Profit from continuing operations Profit incl. discontinued operations

2013

32,358 9,120 5,238 4,179 3,664 2,073 1,156

2012

31,460 9,833 6,101 4,243 4,243 2,342 2,312

Change

3% -7% -14% -2% -14% -12% -50% Total debt Net debt Net debt / EBITDA 12,687 11,102 2.12

13,410 12,064 1.98

-5% -8% Gross margin EBITDA margin¹ 28.2% 16.2% 31.3% 19.4% -307bps -320bps Operating margin Profit margin from continuing operations 12.9% 6.4% 13.5% 7.4% -57bps -104bps Profit margin incl. discontinued operations ROCE³ 7.1% 13.9% 7.4% 18.7% -33bps -483bps ROE³ 8.6% 6.8% 181bps *The data are adjusted for SKMN disposal, unless otherwise stated ¹Hereinafter, read EBITDA as EBITDA adjusted, EBITDA margin as EBITDA adjusted margin ²Excluding the impairment of construction business and excess of fair value of net assets acquired over the cost of acquisition ³Formulas for calculation - see slide 16

Revenue performance 2007-2013 * 31,460 32,358 CAGR +13% 20,379 25,515 13,399 11,668 12,032

2007 2008 2009 2010 2011 2012 Revenue, Rub mn Линейная ( Revenue, Rub mn)

EBITDA performance 2007-2013 *

2013

CAGR +20% 14.1% 16.4% 18.0% 21.8% 6,101 5,562 19.4% 3,670 10.6% 5,238 16.2% 1,423 1,650 1,969

2007 2008 2009 2010 EBITDA, Rub mn 2011 2012 2013 EBITDA margin 3

Revenue & EBITDA Contribution by Segments

Pumps 17,066 25.1% 4,279 17,595 Revenue +3% EBITDA -11% 21.7% 3,816

2012 Revenue Pumps, Rub mn EBITDA margin Pumps, % 2013 EBITDA Pumps, Rub mn   Decline in the segment’s profitability was attributable to lower share of large-scale projects: in EBITDA their share decreased from 53% in 2012 to 36% in 2013 Excluding large-scale projects, the segment’s revenue grew by 13% and EBITDA increased by 23% yoy

Compressors 3,066 4,207 Revenue +37% EBITDA +115% 13.6% 8.7% 572 266

2012 Revenue Compressors, Rub mn EBITDA margin Compressors, % 2013 EBITDA Compressors, Rub mn Data for 2012 includes the results of KKM for the full year 2012  The contracts signed by KKM since its joining HMS Group boosted the segment’s revenue and EBITDA, which grew by 37% and 115% yoy respectively.

For more information - see slide 6

Oil & gas equipment 7,828 7,743 Revenue -1% EBITDA -37% 17.8% 1,397 11.4% 883

2012 2013 Revenue OG equipment, Rub mn EBITDA margin OG equipment, % EBITDA OG equipment, Rub mn    EBITDA decrease was caused by high base of 2012, when HMS executed Vankor project Vankor project accounted for Rub 2.7bn in revenue in 2012 In 2013, the segment served exclusively small and medium-sized orders for standard tanks, vessels and measuring equipment

EPC 5,140 Revenue -45% EBITDA -160% 2,808 6.6% 341

2012 Revenue EPC, Rub mn EBITDA margin EPC, %

-7.3%

2013 EBITDA EPC, Rub mn

-204

  The segment delivered weak results in 2013: revenue declined almost twofold and EBITDA turned negative The segment’s poor performance was attributable to the construction sub-segment, while project and design sub-segment showed growth both in revenue and EBITDA For more information - see slide 5 4

EPC Segment Overview

EPC performance 2012 vs 2013 5,140 Revenue -45% EBITDA -160% 2,808 6.6% 341

2012 Revenue EPC, Rub mn

Comments

EBITDA EPC, Rub mn

-204

2013

-7.3%

EBITDA margin EPC, %  EPC business segment demonstrated weak results in 2013 with revenue decline almost twofold to Rub 2.8bn and EBITDA on a negative side (Rub -204mn)  EBITDA margin growth in Project and Design sub-segment to 12.1% for 2013 was not able to offset the decline in EBITDA margin in construction business.  The segment’s lackluster performance was attributable to the Construction sub-segment, which showed a Rub 472mn loss on EBITDA line  The construction sib-segment is represented only by the construction subsidiary TGS  The company has already disposed its construction subsidiary SKMN and intends to dispose or close-down the second one (TGS)  The size of TGS business has already reduced to limit risks related to the asset.

Project & Design sub-segment performance Revenue 0% EBITDA +114% 2,204 2,210

2012

5.7% 125

2013

12.1% 268 TGS performance (continuing operations) 2,936 7.4% Revenue -80% EBITDA -319%

2012

216 599 -472

2013

-78.8% TGS and SKMN performance (discontinued operations) 5,131 10.0% Revenue -56% EBITDA -245% 2,246 351

2012

-508

2013

-77.6%

5

KKM: One Year With HMS Group

KKM performance 2012 vs 2013 4,118 Revenue +34% EBITDA +110% 3,066 13.6% 8.7% 266

2012 Revenue Compressors, Rub mn EBITDA margin Compressors, % Data for 2012 includes the results of KKM for the full year 2012

559

2013 EBITDA Compressors, Rub mn

New strategy for KKM: focus on integrated solutions

 Further integration of KKM with the Group and NIITK  Value of one gas pumping station (integrated solution) for the trunk gas pipeline is similar to current annual revenue of KKM (around Rub 3bn)  There are no “one-stop shop” providers of integrated solutions in Russia with experience similar to HMS (ESPO-1, ESPO-2)  KKM produced and delivered a compressor station for Usinskiy Gas Processing Plant (Lukoil) under a contract signed after M&A  The company targets a number of large projects in oil & gas  Additional cost saving programmes are launched

Main factors of revenue and profitability growth in compressors segment 1. Capability to secure large contracts for compressor-based integrated solutions

Current status:  HMS has a strong track record with Russian majors  3 compressor station contracts signed since the acquisition of KKM

2. Competences in project & design of a compressor-based integrated solution

– – Technical solutions, more profitable for a producer Strong negotiation power towards suppliers Current status:  The compressor design center NIITK (Turbokompressor) acquired in April 2013

3. Competences in large flow control project management

Current status:  ESPO, Vankor, Turkmenia, Lukoil

All 3 factors, brought together, led to revenue and EBITDA growth already. However an integration process is not completed yet. According to the integration plan, a number of issues are to be addressed to reach sustainability and further growth

6

Contribution of Large-scale Projects to Revenue and EBITDA

Share of large-scale projects in revenue The Group’s performance in 2012-2013 31,460 32,358 Revenue +3% EBITDA -14% 19.4%

2012 Revenue, Rub mn

Comments 6,101

EBITDA, Rub mn

16.2% 5,238

2013 EBITDA margin, %

2012 27% 2013 12% Share of large-scale projects in EBITDA 2012 2013

 Average margin of large-scale projects is 20-30%, while average margin of regular business is about 13%  Lower share of large-scale projects in 2013 negatively affected the Group’s profitability – EBITDA margin decreased by 3%  Large-scale projects include the ESPO, Vankor, Taas-Yurakh, Zapolyarye-Purpe, Turkmenia and Stavrolen

51% 27%

7

Cost Analysis

Cost of sales Cost of sales

% of revenue

Supplies and raw materials

% of revenue

Labour costs

% of revenue

Cost of goods sold

% of revenue

Other expenses

2013 23,238

71.8% 10,567 32.7% 5,374 16.6% 2,799 8.7% 4,498

% of revenue

13.9%

Distribution & transportation expenses Distribution and transportation expenses

% of revenue

Transportation expenses

% of revenue

Labour costs

% of revenue

Insurance

% of revenue

Other expenses

% of revenue

2013

1,377 4.3% 549 1.7% 468 1.4% 44 0.1% 315 1.0%

General & administrative expenses General and administrative expenses

% of revenue

Labour costs

% of revenue

Depreciation and amortization

% of revenue

Taxes and duties

% of revenue

Other expenses

% of revenue

2013

3,970 12.3% 2,596 8.0% 191 0.6% 191 0.6% 993 3.1% Source: Company data

2012

1,239 3.9% 419 1.3% 461 1.5% 36 0.1% 323 1.0%

2012 21,627

68.7% 10,935 34.8% 5,100 16.2% 2,222 7.1% 3,369 10.7%

change

7% -3% 5% 26% 34%

change

11% 31% 2% 22% -3%

Comments

Cost of sales grew by 7% yoy, driven by full consolidation of KKM and Apollo in 2013 Main components of cost of sales – supplies and raw materials combined with COGS – accounted for 41% of revenue, almost the same share as in the previous year Distribution and transportation expenses were up 11% yoy and accounted for 4.3% of the revenue.

The share of transportation costs grew from 1.3% to 1.7% of revenue being the major factor behind growth of distribution and transportation costs

2012

3,796 12.1% 2,548 8.1% 168 0.5% 138 0.4% 942 3.0%

change

5% 2% 14% 38% 5%

General and administrative costs grew by 5% yoy remaining flat yoy as a percentage of revenue The company kept its promise to hold labour costs at the current level - they comprised 8% of revenue Increase in tax and duties by 38% was attributable to payment of local tax under Turkmenia project 8

CAPEX & Working Capital

Cash flow performance in 2012-2013, Rub mn from continuing operations

Operating cash flow Investing cash flow

Free cash flow

Financing cash flow Cash and cash equivalents

2012

3,322 -8,310 -4,988

4,864 1,346

2013

4,728 -2,420 2,308

-2,072 1,584

change Comments

   Operating cash flow increased to Rub 4,728 mn compared to Rub 3,322 mn in 2012 Free cash flow in 2013 turned positive due to absence of large M&A deals that caused substantial outflow of capital in 2012 Working capital 1 decreased by 23% yoy  Key factors behind working capital decrease: – optimisation of payables and receivables; – – payments received under executed large contracts; advance payments under new contracts    Working capital amounted to 16% of revenue versus 21% of revenue in 2012 Organic capex 2 increased to Rub 1.5bn from Rub 1.2bn last year Capex-to-Depreciation-and-Amortization ratio decreased to 1.2x from 1.5x

¹Working capital formula – see slide 16 ²Capital expenditures=Organic CAPEX = Purchase of PPE + Purchase of intangible assets

Capital expenditures 2 2013 vs 2012 1.5x

1.2x

1,449 986 2012 Organic capex, Rub mn Capex to D&A ratio, x

Working capital 21% of revenue

-1,350 +34 1,553 1,341 2013 Depreciation & amortization, Rub mn +119 -356

16% of revenue

6,751 5,198 WC 2012 Inventories change Receivables change & other adj.

Deposits change Payables & other adj.

WC 2013 Source: Company data 9

Financial Position

Net debt to EBITDA ratio Comfortable repayment schedule

Available liquidity

4.5 Rub bn 2.41 1.81 2.08 1.98 2.12 1.22

Cash 1,584

0.87 2,574

2007

3,413

2008

4,551

2009 Net Debt, Rub mn

4,288

2010 Source: Company data

4,809

2011

12,064

2012

11,102

2013 Net Debt to EBITDA ratio

781

2,937 2014E

4,099

2015E

4,821

2016E Debt to be repaid, Rub mn

292

2017E

2,122

2018E Undrawn credit lines, Rub mn

292

2019E Source: Company data as of 1 January, 2014

Comments

      Net debt decreased by 8% yoy due to working capital optimisation Net Debt to EBITDA ratio increased to 2.1x from 2.0x Available liquidity of Rub 4.5 bn fully covers 2014E repayments Average interest rate was 9.5% on 1 January 2014 for all loans, including FX-denominated 2013 Interest coverage ratio¹ equals 2.8 In March 2014, Standard and Poor’s Rating Services affirmed the Group’s “B” long-term credit rating and removed the rating from CreditWatch with negative implications, where they were placed in December 2013.

Low currency and maturity risks

Short-term debt

9.2%

Long-term debt

90.8%

Floating rate

0.2%

Fixed rate

99.8%

Credits in Rub

84.0%

Euro 11.0% Others 5.0% S&P corporate credit rating: B Outlook: stable Upgrade on March 2014 ¹EBIT / Interest expenses Source: Company data as of 1 January, 2014 10

Financial results Business & Outlook Appendix

11

Backlog & Order Intake

Backlog for 12m in 2011-2013

+20%

18,963

+18%

22,333 15,739 Order intake for 12m in 2011-2013

+62%

33,086

+5%

34,813 20,388

Pumps for new pipelines Other pumps O&G equipment Compressors EPC: project and design EPC: construction 2011 5 242 5 480 2 390 0 1 180 1 432 The data are adjusted for SKMN disposal Source: Company data, Management accounts

-67% 86% 33% n/a -2% -47%

2012 1 731 10 182 3 173 1 961 1 161 756

-10% -29% 150% 17% 77% 65%

2013 1 551 7 245 7 942 2 289 2 058 1 248 Pumps for new pipelines Other pumps O&G equipment Compressors EPC: project and design EPC: construction 2011 9 198 7 038 0 2 196 1 934

60% 2% n/a -12% 13%

2012 4 626 14 709 7 210 2 413 1 941 2 186

-67% -21% 75% 64% 94% -37%

2013 1 524 11 618 12 586 3 946 3 769 1 369 12

Summary

1. Focus on R&D and flow control machine-building

 The Group’s machine-building segments (industrial pumps, compressors and oil & gas equipment) as well as the key project and design subsidiary GTNG delivered results in line with the management’s expectations  Construction sub-segment (operating results and impairment of assets) was the key disappointment in 2013 .

2. Strategic disposal of construction business

 The company has already disposed the construction subsidiary SKMN  The company plans either to sell or close down TGS business. The company has already strongly downsized TGS’s business to reduce risks related to this asset .

3. Dividend payments

 The company’s Board of Directors on 24 April 2014 has recommended the payment a final dividend of 3.41 RUB per ordinary share, amounting to a total dividend of Rub 400 mn  The reduced level of dividend payments reflects recently emerged uncertainties with CAPEX programmes of oil & gas companies and new risks arisen from the political crises in the Ukraine, where the Group has one of its core asset located (NEM) 13

Contacts

Investor Relations

Phone +7 (495) 730-66-01 [email protected]

http://grouphms.com/shareholders_and_investors/ Twitter HMSGroup and HMSGroup_Rus Vera Timoshenko, Head of Investor Relations [email protected]

Company address:

7 Chayanova Str.

Moscow 125047 Russia

HMS Hydraulic Machines & Systems Group Plc is listed on the London Stock Exchange (Main market, IOB): Identifier

ISIN Ticker Bloomberg Reuters

Number

US40425X2099 HMSG HMSG LI HMSGq.L

Number of shares outstanding

117,163,427 14

Financial results Business & Outlook Appendix

15

Calculations and Formulas

Notes to the presentation and formulas used for some figures’ calculations

 All figures in millions of Russian Rubles, unless otherwise stated  Management of the Group assesses the performance of operating segments based on a measure of adjusted EBITDA, which is derived from the consolidated financial statements prepared in accordance with IFRS        EBITDA is defined as operating profit/loss adjusted for other operating income/expenses, depreciation and amortization, impairment of assets, provision for obsolete inventory, provision for impairment of accounts receivable, unused vacation allowance, defined benefits scheme expense, warranty provision, provision for legal claims, provision for VAT and other taxes receivable, other provisions, excess of fair value of net assets acquired over the cost of acquisition. This measurement basis excludes the effects of non-recurring income and expenses on the results of the operating segments EBIT is calculated as Gross margin minus Distribution & transportation expenses minus General & administrative expenses minus Other operating

expenses

Total debt is calculated as Long-term borrowings plus Short-term borrowings Net debt is calculated as Total debt minus Cash & cash equivalents at the end of the period Working capital is calculated as Inventories plus Trade and other receivables, excluding Short-term loans issued, Bank deposits and Promissory notes receivable, plus Current income tax receivable minus Trade and other payables minus Short-term provisions for liabilities and charges minus Current income tax payable minus Other taxes payable. In 2011, Working capital was adjusted for working capital of acquired DGHM (Rub 309 mn) ROE is calculated as Total equity period average divided by Profit for the year ROCE is calculated as EBIT LTM divided by Average Capital Employed (Total debt + Total equity)  Backlog is calculated as the preceding backlog plus new or additional customer orders booked during the reporting period, less amounts of contract value booked as revenue under ‘‘Russian GAAP’’ on an unconsolidated basis under the relevant contracts, plus or minus adjustments made in the judgment of the Group’s management. The Group may also make certain adjustments to bookings to reflect amendment, expiry or termination of contracts, cancellation of orders, changes in price terms under contracts or orders, or other factors affecting the amount of potential revenue which the Group believes may be recognized under such contracts. The Group’s backlog estimates are not an indication of potential revenues. Actual revenues and other measures of financial performance under IFRS may differ materially from any estimate of backlog, and changes in backlog between periods may have limited or no correlation to changes in revenue or any other measure of financial performance under IFRS 16

Statement of Financial Position

Note ASSETS Non-current assets:

Property, plant and equipment Other intangible assets Goodwill Investments in associates Deferred income tax assets Other long-term receivables

Total non-current assets

6 7 8 10 26 14

Current assets:

Inventories Trade and other receivables and other financial assets Current income tax receivable Cash and cash equivalents Restricted cash Non-current assets held for sale

Total current assets TOTAL ASSETS

12 13 11 11

EQUITY AND LIABILITIES EQUITY

Share capital Share premium Treasury shares Other reserves Currency translation reserve Retained earnings

Equity attributable to the shareholders of the Company Non-controlling interest TOTAL EQUITY LIABILITIES Non-current liabilities:

Long-term borrowings Finance lease liability Deferred income tax liability Pension liability Provisions for liabilities and charges Other long-term payables

Total non-current liabilities Current liabilities:

Trade and other payables Short-term borrowings Provisions for liabilities and charges Finance lease liability Pension liability Current income tax payable Other taxes payable

Total current liabilities TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES

24 24 24 16 17 26 18 23 22 20 16 23 17 18 21

31 December 2013

14,215,280 1,447,716 5,145,730 127,423 199,132 375,123

21,510,404

5,476,236 10,367,771 122,805 1,584,222 8,055

17,559,089

-

17,559,089 39,069,493

48,329 3,523,535 (201,205) (191,585) (170,541) 6,692,152

9,700,685 3,543,343 13,244,028

11,521,956 1,799 1,807,980 442,326 58,450 372,643

14,205,154

8,880,799 1,164,640 200,997 9,489 69,869 212,434 1,082,083

11,620,311 25,825,465 39,069,493 31 December 2012

14,415,505 955,447 5,188,993 124,963 252,772 155,234

21,092,914

6,825,999 10,313,226 126,782 1,346,082 56,385

18,668,474

47,850

18,716,324 39,809,238

48,329 3,523,535 (31,507) (191,463) (347,264) 6,667,165

9,668,795 3,870,032 13,538,827

11,219,833 10,072 1,914,077 481,031 46,663 325,835

13,997,511

8,795,207 2,190,520 299,407 7,568 54,740 26,349 899,109

12,272,900 26,270,411 39,809,238

17

Statement of Comprehensive Income

Note 31 December 2013

Continuing operations

Revenue Cost of sales

Gross profit

27 28 32,358,148 (23,237,679)

9,120,469

Distribution and transportation expenses General and administrative expenses Other operating expenses, net Impairment of assets of construction business Excess of fair value of net assets acquired over the cost of acquisition

Operating profit

Finance income Finance costs Share of results of associates

Profit before income tax

Income tax expense 29 30 31 4 9 32 33 10 26 (1,376,855) (3,970,123) (109,813) (439,119) 954,814

4,179,373

160,320 (1,740,990) (2,269)

2,596,434

(523,564)

Profit for the year from continuing operations

Discontinued operations

Loss for the year from discontinued operations

Profit for the year

15 Shareholders of the Company Non-controlling interest

Profit for the year

Items that will not be reclassified to profit or loss

Remeasurements of post-employment benefit obligations

Items that may be reclassified subsequently to profit or loss

Currency translation differences Currency translation differences of associates

Other comprehensive income/(loss) for the year Total comprehensive income for the year Total comprehensive income attributable to:

Shareholders of the Company Non-controlling interest

Total comprehensive income for the year

Total comprehensive income attributable to shareholders of the Company

Continuing operations Discontinued operations 15 10

2,072,870

(917,355)

1,155,515

1,041,801 113,714

1,155,515

31,424 217,297 4,729

222,026 1,408,965

1,237,709 171,256

1,408,965

2,141,912 (904,203)

1,237,709 Basic and diluted earnings per ordinary share for profit attributable to the ordinary shareholders (RR per share)

From continuing operations From discontinued operations 24

8.99

16.79

(7.80)

31 December 2012

31,459,887 (21,626,879)

9,833,008

(1,239,423) (3,796,457) (553,759) -

4,243,369

113,282 (1,246,382) 443

3,110,712

(768,471)

2,342,241

(30,222)

2,312,019

2,097,834 214,185

2,312,019

(33,666) (129,227) (5,285)

(134,512) 2,143,841

1,952,469 191,372

2,143,841

1,962,085 (9,616)

1,952,469 17.91

17.99

(0.08) 18

Cash Flows Statement

Cash flows from operating activities

Profit before income tax Adjustments for: Depreciation and amortisation Loss from disposal of property, plant and equipment and intangible assets Finance income Finance costs Pension expenses Warranty provision Write-off of receivables Provision for impairment of accounts receivable Impairment of taxes receivable Provision for obsolete inventories Provision for VAT receivable Provisions for legal claims Impairment of assets of construction business Excess of fair value of net assets acquired over the cost of acquisition Foreign exchange income, net Net monetary effect on non-operating items Provision for tax risks Share of results of associates

Operating cash flows before working capital changes

Decrease/(increase) in inventories (Increase)/decrease in trade and other receivables Increase in taxes payable Increase in accounts payable and accrued liabilities Decrease/(increase in) restricted cash

Cash from operations

Income tax paid Interest paid Net cash from operating activities – continuing operations Net cash used in operating activities – discontinued operations

Net cash from operating activities Cash flows from investing activities

Repayment of loans advanced Loans advanced Loans provided to discontinued operations Proceeds from sale of property, plant and equipment and intangible assets Interest received Proceeds from government grant Dividends received Purchase of property, plant and equipment Cash disposed from disposal of subsidiary Acquisition of intangible assets Acquisitions of subsidiaries, net of cash acquired Net cash from investing activities – continuing operations Net cash used in investing activities – discontinued operations

Net cash used in investing activities Cash flows from financing activities

Repayments of borrowings Proceeds from borrowings Payment for finance lease Acquisition of non-controlling interest in subsidiaries Buy back of issued shares Proceeds from the sale of treasury shares Dividends paid to non-controlling shareholders of subsidiaries Dividends paid to the shareholders of the Company Net cash from financing activities – continuing operations Net cash from financing activities – discontinued operations

Net cash (used in)/from financing activities Net increase/(decrease) in cash and cash equivalents – continuing operations Net decrease in cash and cash equivalents – discontinued operations Inflation effect on cash Effect of exchange rate changes on cash and cash equivalents and effect of translation to presentation currency Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Note

22 9, 10 9 24 24 24 30 31 28 30 31 4 9 31 6, 7 31 32 33 18 28 30 10

2013

2,596,434 1,340,568 6,774 (160,320) 1,740,990 3,033 16,851 15,111 87,114 78,456 (8,663) (80,040) 439,119 (954,814) (4,259) (5,080) (16,243) 2,269

5,097,300

1,013,976 (575,904) 266,639 1,107,615 48,330

6,957,956

(801,604) (1,428,345) 4,728,007 (204,945)

4,523,062

31,202 (242,480) (614,012) 93,996 91,346 60,000 1,399 (1,466,308) (9,975) (86,702) (278,465) (2,419,999) 45,000

(2,374,999)

(20,929,874) 19,898,643 (7,580) (177,331) 7,511 (72,003) (791,637) (2,072,271) 154,662

(1,917,609) 235,737 (5,283) 7,686 1,346,082 1,584,222 2012

3,110,712 986,363 27,798 (113,282) 1,246,382 85,439 10,490 12,073 27,543 11,741 98,743 3,178 115,451 (11,303) 10,777 (2,882) (443)

5,618,780

(1,493,529) 959,647 168,775 445,954 (31,072)

5,668,555

(1,296,273) (1,049,973) 3,322,309 (231,121)

3,091,188

27,866 (32,784) (273,170) 13,248 92,744 976 (1,373,884) (74,616) (6,689,967) (8,309,587) (174,276)

(8,483,863)

(15,550,153) 22,000,957 (2,960) (445) (31,507) (51,856) (1,499,692) 4,864,344 273,170

5,137,514 (122,934) (132,227) (277) 3,057 1,598,463 1,346,082

19

Composition of profit for the period

Impact of one-offs on the Group’s profit Gain from the bargain acquisitions

NNGP NIITK

Strategy on withdrawal from construction business

Impairment of TGS Loss on SKMN disposal

TOTAL impact Rub mn 955

111 844

-1,185

-439 746

-230 change Impact of construction on the Group’s profit

Profit from continuing operations

Impact of TGS

Impairment of TGS Loss Profit from discontinued operations

Impact of SKMN

Loss on disposal loss

TOTAL impact Rub mn

2,073

-852

-439 413 1,221 1,156

-917

746 171 239

-1,769

20

Disclaimer

The information contained herein has been prepared using information available to HMS Group (“HMS” or “Group” or “Company”) at the time of preparation of the presentation. External or other factors may have impacted on the business of HMS Group and the content of this presentation, since its preparation. In addition all relevant information about HMS Group may not be included in this presentation. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information.

Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty and HMS Group cautions that actual results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Report for a description of the major risk factors. This presentation should not be relied upon as a recommendation or forecast by HMS Group, which does not undertake an obligation to release any revision to these statements.

This presentation does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in HMS Group, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.

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