HMS Group is a leading provider of pumps and integrated pump solutions in Russia and the CIS. Some key points: - HMS sees significant growth opportunities from large infrastructure investment programs in the Russian energy and utilities sectors totaling over $500 billion through 2015. - Notable new projects include the expansion of major oil and gas pipelines and new nuclear and thermal power plants both in Russia and abroad utilizing Russian technology. - HMS' advanced R&D capabilities position it well to benefit from the substantial planned investments in modernizing Russia's energy infrastructure and developing new production assets.

1. HMS Group
FY2010 IFRS Results
Roadshow Presentation
May 2011

2. 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.
2

3. Calculations
Notes to the presentation and formulas used for some figures’ calculations
 All numbers 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 income/expenses, Depreciation and Amortization, Provision for
obsolete inventory, Provision for impairment of accounts receivable, Unused vacation allowance, Excess of fair value of net
assets acquired over the cost of acquisition. This measurement basis excludes the effects on non-recurring expenditure from
the operating segments, such as restructuring costs, legal expenses and goodwill impairments, when the impairment is a result
of an isolated, non-recurring event
 EBIT is calculated as Gross margin minus D&T and SG&A expenses
 Total debt is calculated as Long-term borrowings plus Long-term financial lease liabilities plus Short-term borrowings plus
Short-term financial lease liabilities
 Net debt is calculated as Long-term borrowings plus Long-term financial lease liabilities plus Short-term borrowings plus Short-
term financial lease liabilities minus Cash & cash equivalents
 ROCE is calculated as EBIT divided average Debt plus 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
recognised 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
3

4. Agenda
HMS GROUP AT A GLANCE 5
HMS At a Glance 6
Story of Growth & Profitability 7
BUSINESS STRATEGY & INVESTMENT HIGHLIGHTS 8
Industry Fundamentals and Growth Potential 9
New Milestone Projects 10
Significant Upside from Aftermarket 13
Advanced R&D Capabilities 14
Operational and Product Quality Excellence 15
Strong Management Team 16
Business Strategy 17
Sources of Best-in-class Margins & Growth 18
2010 BUSINESS UPDATE 19
2010 Business Update 20
Leader in Flow Control Solutions 21
FINANCIAL PERFORMANCE 22
Outstanding Performance for the FY 2010 23
EBITDA Development 24
Revenue & EBITDA Contribution by Segments 25
CAPEX & Working Capital 26
MID-TERM PROSPECTS 27
Key Contracts Execution and Backlog Analysis 28
Selected End-market Projects from Mid-term 29
CONTACTS 30
APPENDIX 31
4

5. HMS GROUP AT A GLANCE
5

6. HMS At a Glance
Who we are Key investment highlights
 The leading provider of pumps and pump-based  Attractive industry fundamentals: impressive end-markets
mix prospects
integrated solutions in Russia  The leading provider of flow control solutions in Russia
and the CIS
 The core markets: oil and gas, nuclear and thermal power
 Advanced R&D capabilities: basis for high margin &
and water sectors in Russia and the CIS sustainable performance and growth
 Diversified and well-established customer base
 Production of high capacity pump systems up to 12 Mwt
 Operational and product quality excellence
 Blue-chip customer base includes Rosneft, Transneft,  History of resilient financial growth and strong backlog
Rosatom, etc and more than 4,000 other clients  Strong management team: company founders and top
professionals
Revenue RUB 23,070 mln EBITDA adj. RUB 3,519 mln Profit for the year RUB 1,581 mln
Industrial pumps Modular equipment EPC
Revenue RUB 10,712 mln Revenue RUB 5,805 mln Revenue RUB 6,135 mln
EBITDA adj. RUB 2.367 mln EBITDA adj. RUB 599 mln EBITDA adj. RUB 550 mln
New photo
Pump station of Baltic pipeline system, Transneft Oilfield Pump Station 2, Vankor oilfield, Rosneft Oil Pump Station ‚Tayezhnaya‛, Transneft
The leading provider of high capacity pumps and pump-based integrated solutions in Russia
Source: Company data
Notes: Hereinafter ‚EBITDA‛ read as ‚EBITDA adjusted‛, ‚EBITDA margin‛ read as ‚EBITDA adjusted margin‛ and ‚Net Income‛ read as ‚Profit for the year‛ 6

7. Story of Growth and Profitability
Revenue & EBITDA performance, 2005-2010 Revenue, 2009 vs 2010 (mln RUB)
 Revenue CAGR 39%
 EBITDA CAGR 36%
16.5% 23,070
15.3%
12.8%
12.3%
11.7%
10.6%
14,772
14,046
13,399
6,724
4,498
3,519
1,644 1,890
1,423
744 830
2005 2006 2007 2008 2009 2010
Revenue, RUB mln EBITDA, RUB mln EBITDA margin, %
Source: Company data
5 Years – 5 Times Growth of Revenue & EBITDA Despite Crisis
7

8. BUSINESS STRATEGY & INVESTMENT HIGHLIGHTS
8

9. Industry Fundamentals and Growth Potential
Russian energy & utilities Russian oil sector investments
infrastructure investments (RUB bn) (RUB bn) Comments
 Infrastructure modernization and expansion
Water utilities CAGR Oil refining and CAGR – Large portion of Russian infrastructure is
Thermal power generation ’09-’15 petrochemicals ’09-’15 outdated and at or near end of useful life
Nuclear power generation Oil pipelines
2,576
– Economic growth driving demand for new
3,340
Oil exploration infrastructure
21.7% and extraction 540 15.3%
1,011 – Very large expected spending by public and
private sectors in energy generation, public utilities
810 and oil and gas industries
21.7% 1,131 19.0%
1,586
1,103 230  State development programs
311 285
1,226 – Large on-going projects in the public utilities and
489 16.1% 12.2%
743 616 electricity generation with ongoing impact until
303
2020-30
2009 2015E 2009 2015E
Source: Frost & Sullivan report 2009 Source: Frost & Sullivan report 2009
Russian pumps market history and Russian modular equipment market history and EPC market history and forecast3-
forecast1 (RUB bn) forecast2 - HMS core segments (RUB bn) HMS core segments (RUR bn)
CAGR 18.8% CAGR 14.0% CAGR 14.1%
224 22
511
10 231
79
2009 2015E 2009 2015E 2009 2015E
Significant increase in capital spending in core end markets drives growth of all HMS’ businesses
Source: Frost & Sullivan report 2009
1 Includes pumps for water injection, oil refining and petrochemicals, oil pipelines, energy generation (thermal and nuclear (excluding MCP)), water utilities pumps, household vibration
pumps, as well as integrated solutions and aftermarket
2 Includes pump stations, automated group metering units, associated gas processing and transport units
3 Includes oil field infrastructure construction, oil and gas transportation, construction and engineering, research and design services for oil and gas industry (upstream) 9

10. New Milestone Projects
Oil & Gas Production and Oil Transportation
Mature oil producing regions
Haryaga-Yuzhny Zapolyarnoye-Purpe Underdeveloped oil producing regions
Khylchuyu (45 MMt, 536 km)
Oil pipeline projects
(8 MMt, 160 km)
Baltic Pipeline Oil products pipeline projects
System-II
(50 MMt, 1,000 km) Primorsk
Developing oil fields
Prirazlomnoye
HMS participation confirmed
Timano-Pechora
Tikhoretsk-Tuapse 2 basin Yuzhny Haryaga
Moscow ESPO-II and ESPO-II Komsomolsky NPZ
(12 MMt, 295 km) Khylchuyu Zapolyarnoye capacity expansion -De-Kastry
Unecha Russia (47 MMt, 2,046 km) (n.d., 300 km)
Salymskoye
Purpe Russkoye Vankor
‚Yug‛ (South) Tikhoretsk Priobskoye Yurubcheno-
(9 MMt, 1,465 Syzran Tokhomskoe Talakanskoye
Samotlor
km)
Tyamkinskoye
Novorossiysk Nizhnevartovsk Verkhnechonsko
Tuapse ye
Tengiz
De-Kastri
Skovorodino
Taishet Komsomolsky
NPZ
Caspian Pipeline Consortium
Purpe-Samotlor
expansion Komsomolsky NPZ
(25 MMt, 430 km)
(35 MMt, 1,510 km) -port De-Kastry
Yurubcheno- ESPO-I and ESPO-I
(9 MMt, 313 km)
Tokhomskoe-Taishet capacity expansion
(18 MMt, 600 km) (50 MMt, 2,694 km) Kozmino
Transneft investment program 2010-2017 Oil production development Export markets
> 10,000 km of pipelines to be constructed or > 3 bn tons of oil reserves to Central Asia
replaced be developed in the next  Rapidly
growing sales of modular equipment to oil
several years and gas sector in Kazakhstan
> 140 of pump stations to be constructed or
Iraq
reconstructed
Oil refining development  Significant
installed base of HMS pumps from Soviet
> 550 reservoirs with total capacity of almost and post Soviet periods
 26oil refineries are to be
10 mln m3 to be reconstructed  Currently undertaking projects for Oil Ministry and
reconstructed BP
Source: Frost & Sullivan report 2009, Transneft website (www.transneft.ru)
10

11. New Milestone Projects
Thermal and Nuclear Power Utilities
TGC-3 (Mosenergo) TGC-1 TGC-2 TGC-6
Investments 2010-2015: Investments 2010-2015: Investments 2010-2015: Investments 2010-2015:
RUB 39 bn RUB 73 bn RUB 28 bn RUB 16 bn
Kolskaya
Leningradskaya-II
TGC-9
TGC-4 Investments 2010-2015:
Investments 2010-2015: RUB 28 bn
RUB 21 bn
TGC-13 (Enisei)
Investments 2010-2015:
Kalininskaya TGC-11 RUB 10 bn
Smolenskaya
Kurskaya Investments 2010-2015:
Novovoronezhskaya-II RUB 26 bn
Rostovskaya
Rostovskaya
Beloyarskaya
TGC-14
TGC-12 (Kuzbas) Investments 2010-2015:
TGC-5 Investments 2010-2015: RUB 8 bn
Investments 2010-2015:
RUB 21 bn
RUB 14 bn
TGC-8 TGC-7 (Volga) TGC-10 (Fortum) Selected nuclear power plant projects abroad
Investments 2010-2015: Investments 2010-2015:
Investments 2010-2015:
RUB 18 bn RUB 11 bn RUB 47 bn
using Russian technology
No of power units / Investments
Name Country
Unit capacity (MW) 2010-2015 (RUB bn)
Belene NPP Bulgaria 1 / 1,000 128
Summary of total investments in power generating capacity
Tianwan NPP China 2 / 1,000 86
Number of power units to be Additional generation Investments 2010-
constructed or reconstructed capacity, MW 2015 (RUB bn) Kudankulam NPP India 2 / 1,000 65
Mokhovtse NPP Slovakia 2 / 440 53
TGC n/a 13,627 359
Akkuyu NPP Turkey 4 / 1,200 27
OGC n/a 11,962 467
Ukraine 2 / 1,200
Nuclear plants
41 21,500 808 Belarus 2 / 1,200
(Russia)
Other projects 1,581
Nuclear plants Armenia 1 / 1,200
17 17,880 1,940
(Foreign) Vietnam 1 / 1,200
Source: Frost & Sullivan report 2009
Nuclear Power Plants HMS participation confirmed Projects under construction Planned projects 11

12. New Milestone Projects
Water Utilities
Asia-Pacific Economic Cooperation
Olympic Games in Sochi in 2014 FIFA World Cup 2018
Summit in Vladivostok in 2012 Investment 2010-2014: RUB 930 bn1 Investment 2010-2018: RUB 1.6 trn1
Investment 2010-2012: RUB 660 bn1
Kaliningrad Petrozavodsk
St. Petersburg
Tver
Vladimir Export markets
Moscow
Yaroslavl Central Asia
Kaluga Kirov
 Recently undertook turnkey construction of
Rostov-on-Don N.Novgorod Perm
Kazan
pumping stations in Turkmenistan and Uzbekistan
Volgograd Ekaterinburg
Azov Tyumen  Presence in water markets of Tajikistan and
Krasnodar Samara Orenburg
Kyrgyzstan
Sochi
Omsk
 Offices in Ashkhabad (Turkmenistan) and
Tashkent (Uzbekistan)
Barnaul
Leading integrated water utilities
JSC Rosvodokanal JSC Evraziysky JSC RKS
Vladivostok
Total Capex 2010- Capex
Large-scale State Programs Capex in water projects, RUB bn (2007–2015)
2015 (RUB bn) period
Federal Program "Zhilische" (public 620 2011-2015
housing)
1,011
Regional programs "Clean Water‚2 520 2011-2017 844
(unconfirmed budget) 724
606
Water Strategy of Russian Federation 351 2009-2020 471
372 393
until 2020 (excl. "Clean Water") 295 311
Reconstruction of Grozny utilities 105 2010-2011
St. Petersburg Water Utilities 103 2010-2025
Development Program 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E
Source: Frost & Sullivan report 2009, Media sources Source: Frost & Sullivan report 2009
1 Figures have been taken from various media sources; they are not final and may change in the
future
2 The ‚Clean Water‛ program is a nationwide large investment plan aimed at improving drinking
water quality. 12

13. Significant Upside from Aftermarket
Key drivers for aftermarket services growth Installed base
 Water injection pumps
 Very large installed base requires repair
Other 13%
and maintenance services
Exceptional
installed base  Large portion of installed base is HMS supplies
87%
outdated, creating opportunity for
upgrades as well as replacement
Total number of pumps: 4,500
 Oil trunk pipeline pumps1
 Energy represents 80% of operating Other 2%
cost for a typical pump
Energy efficiency  Trend for modernization of equipment
HMS supplies
98%
to increase energy efficiency
Total number of pumps: 1,044
Source: Company data, Frost & Sullivan report 2009
 Most repair and maintenance Example of pump servicing
historically largely in-house
 HMS has contracts with companies
Outsourcing trend including
– TNK-BP (full outsourcing of
maintenance of water injection
pumps at the Samotlor field)
Note: In red are highlighted the pump’s components that
suffer the greatest degree of deterioration during operation
Source: Frost & Sullivan report 2009, Company data of the pump and which can be replaced in order to extend
1 In Transneft’s pipeline system the pump’s operation life
13

14. Advanced R&D Capabilities
Pumps Project design
 Very strong in-house R&D and significant experience in  Giprotyumenneftegaz (GTNG) is the leading Russian R&D
pump development centre specializing in design of on-surface (as opposed to
– 5 in-house R&D facilities in Russia and the CIS, sub-surface) facilities for oil and gas fields, e.g. it
centralized research coordination designed over 200 fields in Russia including many of the
largest (e.g. Samotlor, Mamontovskoye, Priobskoye)
 Unique testing facility (one of the largest in the former
Soviet Union and globally) for all types of large  Significant R&D resources for design of water utilities
specialized pumps for nuclear power plants and oil projects (RVKP)
transportation
Oilfields, projected by GTNG vs others
– Current facility allows to test pumps up to 8MW in
power; new facility for pumps up to 14MW under
construction
 Deep integration with clients’ R&D
– HMS’ R&D works closely with clients’ R&D divisions in Oilfields, projected by GTNG
developing pre-tender documentation and helps clients
Oilfields, projected by others
adopt new design solutions and technical regulations
– Increases the likelihood of the use of HMS equipment
in projects
Pre-tender preparation/aftermarket support is crucial for establishing/maintaining strong relationships with clients
HMS ability to participate in pre-tender preparation stage creates unique competitive advantage
Tender, pricing
Pre-tender project Design and Delivery and
and contract After-market
preparation production installation
negotiation services
(up to 24 months) (1–24 months) (1 month)
(1–3 months)
14

15. Operational and Product Quality Excellence
Comments Comparative analysis examples
Submersible water well
 Plants are certified in accordance with pumps
HMS Grundfos
ISO:9001:2008 Model 3ЭЦВ6-10-110 SP17-11
Flow rate, m3/h 10 10
 Products are compliant with API 610 standard Head, m 110 110
 Modern software systems for R&D and project Efficiency ratio, % 57.0-59.2 53.9-58.3
Model 3ЭЦВ6-25-100 SP30-12
management
Flow rate, m3/h 25 25
– SolidWorks, ANSYS CFX, Bentley, Primavera Head, m 100 100
Efficiency ratio, % 59.8-62.1 57.4-61.7
 Equipment from well-established foreign Water utilities pumps HMS KSB
producers for critical manufacturing processes
Model 1Д315-75 Omega 100-250A
– Skoda, Schiess, Doosan, Demag, Schenk, Flow rate, m3/h 315 315
Sodik, Ibarmia and other Head, m 75 75
Efficiency ratio, % 83.0 82.6
 HMS’ products include high-precision, safety-
Weight, kg 190 210
critical equipment for hazardous facilities (nuclear
plants, refineries, pipelines)
Source: The Russian Association of Pump Manufacturers
Schiess Demag Skoda Ibarmia
HMS has a strong focus on operational excellence and manufactures top quality products
15

16. Strong Management Team
Key Senior Management
Artem Molchanov  Kirill Molchanov  Andrey Nasledyshev Nikolay Yamburenko  Anatoliy Nazarov Igor Tverdokhleb
CEO First Deputy CEO Deputy CEO Head of Industrial Pumps Head of Modular Head of R&D
Industry experience: Industry experience: Industry experience: Industry experience: Equipment Industry experience:
17 years 17 years 11 years 32 years Industry experience: 24 years
Years with HMS: Years with HMS: Years with HMS: Years with HMS: More than 35 years Years with HMS:
17 years 17 years 6 years 7 years Years with HMS: 6 years
4 years
 Founders / Shareholders
The management team… Shareholders Structure
German
 … is comprised of professionals with significant experience Other
Tsoy
17.33%
managers
in pump and oil and gas industries 21.42%
 … includes founders, who have led HMS since its inception
 … has a strong commitment to the business
Vladimir
Lukyanenko
24.00%
Free-float
37.25%
Source: Company data
HMS’ founders remain shareholders and continue to be actively involved in managing the business
16

17. Business Strategy
Focus on integrated  Higher margin than stand-alone products and services
solutions and other  HMS Group’s largest customers more often prefer to work with manufacturers
highly-engineered that can offer integrated and customized solutions
products  Creates strong ties with customers, pull-through demand for aftermarket services
Strengthen position  Take advantage of positive market trends in existing core markets
 Organic expansion into attractive market segments
in core markets
 Increase of aftermarket services component to generate higher-margin and
including
regular cash flows
aftermarket and  Core export opportunities: water projects in FSU, Rosatom nuclear contracts,
export O&G in Kazakhstan and Iraq
Expand research  Leverage leading R&D capabilities in order to develop next-generation customized
and development pumps, technological upgrades and integrated pump systems
capabilities  Work closely with customers to develop technical policies and standards
 Commitment to integration and optimization of current production assets and
commitment to increase synergies between acquired businesses
Improve operational
 Standardization and continuous improvement of operations and business
efficiency processes (e.g. ERP, budgeting and reporting methodology and software
development, etc.)
 Our targets are technology and R&D facilities
Pursue selective &
 Pursue acquisition opportunities in high-growth sectors where HMS has limited
value enhancing
presence
acquisitions  Search for cost and revenue synergies
17

18. Sources of Best-in-class Margins & Growth
HMS Group high and sustainable
Financial and Operational highlights margins are the result of a number of cumulative factors
 Mix of growing markets  High market share
 Unfolding innovative  Technical entry barriers
 Unique pump R&D
projects for international majors
 Exceptional project design
 Shift in structure of  Multidecade track record
capabilities
demand with customers
 First class customer base  Installed base
REVENUES &
 United team of founders  Strong negotiation force
and high professionals MARGINS over customers
POTENTIAL
 End-to-end solutions
capabilities: from design
 Further bolt-on acquisition to implementation and
 Focus on operations
growth strategy based on after-market
excellence and project
successful track record of  Growth through
execution
integrated acquisitions integrated solutions:
ahead of market with
lower capex
18

19. 2010 BUSINESS UPDATE
19

20. 2010 Business Update
Innovations bring success
1 Successful completion of two milestone projects:
 Vankor oilfield development Stage 1
 Turkmenistan pilot station
2 Contract for supplying pump-based integrated systems for ESPO
3 Acquisition of controlling stake in GTNG:
 Entrance into lucrative oilfield infrastructure project design,
 That pave the way for major oil project for core HMS business Oilfields, projected by GTNG
Others
4 Research & Development:
 R&D of new types of pumping equipment for trunk pipelines,
nuclear plants, power plants and water works
 14 MWT testing facilities construction
5 Operations efficiency focus through introduction of IT systems and
quality management systems
20

21. The Leading Provider of Flow Control Solutions
Leading market share in pumps…
8% 19% 152% 25% 42% 19% 30% 31%
41.2 83.9 41.9 46.7 33.2 47.3
45.0
38.0 76.5
19.0 33.6 37.9 25.5 36.0
16.0
64.5 261% 13.9
15.7 28% 32.8 24.0
22.2
13% 11.8
35.9 26.8 14.7 51%
59.6
19.3
68% 30.3 18.2
46.9 33.2
64.9
28.0
25.2 15.3
20% -13%
22.3 -4% 21.8 22.7 21.3
25.2
13.5
17.6 16.9 18.0 9.1 7.3 6.4
7.6
2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010
Oil industry - Oil industry - Oil industry - Water utilities - Water utilities - Water utilities - Power generation - Power generation -
Water injection Refining & Oil transportation Submersible water Clean water supply Household vibration Nuclear non-MPC Thermal pumps
pumps petrochemical pumps pumps well pumps and dry-pit sewage pumps pumps
2009 2010
HMS Group revenue, US$ mln Others
… and modular equipment Comments
 In 2010, HMS Group expanded its presence in the most key
13% 4%
20% segments
75.1
72.0 126.4
.153.0
172.6  The company’s share grew mainly faster than its core segments
105.0
73.4
 Russian government introduced new fuel specifications, and
50.0
67.0
15%
50.3 hence, oil companies undertake refinery’s upgrade mainly in ‚hot
113.8
16% 97.5 cycle‛. The market share decrease in refinery & petrochemicals is
86.0
99.2 68% attributable to HMS Group’s presence only in standard ‚cold
21.7 25.1
cycle‛ pumps
7.5 12.6
2009 2010 2009 2010 2009 2010  Deferred demand is being created for standard ‚cold cycle‛
Pump stations Automated group Associate gas
pumps
metering units processing and
transport units
 Decrease in nuclear non-MPC pumps is attributable to the
2009 2010
industry’s specifics expressed in long-term only contracts
HMS Group revenue, US$ mln Others
 Revenue from signed in 2009 contracts will be recognized in 2011
Source: Frost & Sullivan report 2010 21

22. FINANCIAL PERFORMANCE
22

23. Outstanding Performance for the FY 2010
Comments Revenue, 2009 vs 2010 EBITDA, 2009 vs 2010
 Total revenue up 56% yoy to RUB 15.3%
23,070 mln
12.8%
The growth reflects: 56%
86%
23,070 3,519
 Significant increase in size of
orders for pump-based
integrated solutions 14,772
 Completion of key projects 1,890
 Consolidation of GTNG
 Stable growth of revenue from
ordinary contracts
 Organic revenue growth of 47% yoy,
2009 2010 2009 2010
excluding impact from GTNG
EBITDA margin
Source: Company data Source: Company data
EBIT, 2009 vs 2010 ROCE, 2009 vs 2010 Net income, 2009 vs 2010
1,825bps
133% 36.2% 2,156%
3,027 1,581
18.0%
1,298
70
2009 2010 2009 2010 2009 2010
Source: Company data Source: Company data Source: Company data
23

24. EBITDA Development
Comments World HRC price performance in 2010
 EBITDA increased by 86% yoy to RUB 3,519 mln due to: 800
 Strong revenue growth in all business units 22%
750
 Focus on innovative high-margin contracts
700
 Effective cost control
 Consolidation of GTNG 650
 EBITDA organic growth of 72% yoy 600
 EBITDA margin increased to 15.3%
550
 SG&A grew less than revenue due to economy of scale
and cost optimization strategy 500
Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10
World hot rolled coil price index performance, $/tonne
50,000
Source: Bloomberg
Key EBITDA drivers, 2009 vs 2010 (% of revenue)
0
operating expenses
20.2bn vs 13.7bn in 2009 |+47.2% yoy 2009 2010
revenue in 2010 +56.2% yoy
75.6% 75.3% 3.3% 2.5% 9.1%
12.4%
0.5% 1.9% 0.7% 15.3%
12.6% 3.1% 12.8%
1.5% 7.3% 2.3%
Revenue
Revenue Cost of sales sales
Cost of Distribution and and General &
Distribution SG&A Other expenses Operating profit
Other expenses Operating profit Depreciation & &
Depreciation Others
Others EBITDA*
EBITDA
transport Administrative
transport amortisation
amortisation
Source: Company data expenses
expenses
expenses expenses 24

25. Revenue & EBITDA Contribution by Segments
Highlights by core segments, 2009 vs 2010 Comments
 Industrial pumps 22.1% Industrial pumps:
16.0%  Sales up 70% yoy to RUB 10,712 mln, enjoying strong demand
10,712 70% for integrated pumping solutions primarily in oil transportation
and upstream
6,308
 EBITDA grew by 134% yoy, and EBITDA margin rose to 22.1%,
2,367 primarily attributable to increasing share of contracts for pump-
134%
1,012 based integration solutions
2009 2010
Revenue, RUB mln EBITDA, RUB mln EBITDA margin, %
 Modular equipment Modular equipment:
18.9%
5,805  Sales up 39% yoy, driven by demand from the major oil
39% companies to equip new oil fields and modernize existing
4,166
installed base of modular equipment
10.3%
 EBITDA decreased 24% yoy and EBITDA margin also down to
10.3% due to execution of low-margin contracts concluded in
786 599 -24% 2009
2009 2010
Revenue, RUB mln EBITDA, RUB mln EBITDA margin, %
 EPC 9.0% EPC:
6,135
46%  Revenue growth of 46% yoy is primarily attributable to an
impact of GTNG acquisition and entering the market of projects
4,189 and design. Revenue growth, excluding an effect of acquisition,
was c. 14% yoy
 EBITDA increased significantly to RUB 550 mln, and EBITDA
margin rose to 9.0%. Newly acquired GTNG added to EPC’s
0.8% 550 1,548% EBITDA RUB 271 mln
33
 Such a significant EBITDA growth is primarily attributable to a
2009 2010 low EBITDA base in 2009, caused by significant price pressure
Revenue, RUB mln EBITDA, RUB mln EBITDA margin, % connected to investment cutbacks by oil companies
Source: Company data 25

26. CAPEX & Working Capital
Capital expenditures, 2009 vs 2010 M&A expenditures, 2009 vs 2010
2.1x
2,918
950 GTNG
2467
0.6x 450
344
192 571 SIBNA
248
2009 2010 2009 2010
Organic capex, RUB mln Depreciation, RUB mln Capex/ Depreciation ratio, x Total M&A capex, RUB mln Controlling interest acquisition, RUB mln
Source: Company data Source: Company data
Working capital position update, 2009 vs 2010 Working capital performance, 2009 vs 2010
2010 2009
Working capital, RUB bn 2.4 2.7
0.18x
chg, % -10% 22%
Working capital/ Total assets, x 0.11 0.23
Working capital/ Revenue, % 10.6% 18.3% 0.11x
2,702
Current ratio, x 1.05 1.20 2,441
Quick ratio, x 0.83 0.64
Inventories, days 63 92
Receivables, days 105 73
2009 2010
Payables, days 148 106 Working capital, RUB mln Working capital / Revenue, x
Source: Company data Source: Company data
26

27. MID-TERM PROSPECTS
27

28. Key Contracts Execution and Backlog Analysis
Highlights Backlog 2010 vs 2011, RUB mln
 Order backlog doubled yoy to RUB 19.8 bn, 19,837
1,506 34%
including RUB 1.3 bn backlog from acquired GTNG
2,418%
 Organic backlog growth, excluding impact from
GTNG, was up 95% yoy 10,078
 General backlog increase reflects market growth 9,500
1,123
 Robust backlog growth of high-margin pump-based 402
3%
integrated solutions for large infrastructure projects
7,975 8,254
 Signed contracts for oil transportation pumps:
 Recognized revenue of RUB 3.7 bn (incl. ESPO 31 Dec 2009 31 Dec 2010
RUB 3.5 bn) in 2010, current backlog RUB 10.1
Other Oil transportation pumps Nuclear pumps
bn, the most part of revenue to be recognized
Source: Company data
in 2011
 Signed contract for nuclear pumps:
Backlog structure as of 31 Dec 2010, RUB mln
 Recognized revenue RUB 0.1 bn, current
Water injection
backlog RUB 1.5 bn, the most part of revenue pumps
Oil
recognition in 2011 transportation
Other 0.2
0.7
pumps
 Signed contracts for project design: 10.1
Project & design
 Significant increase of backlog due to GTNG 1.3
acquisition – plus RUB 1.3 bn Modular
equipment
 Standard equipment and other products, sold from 1.4
the company’s warehouses, bring up to RUB 2.5 bn
of revenue. Usually these products are not
considered in backlog calculation Nuclear pumps
Construction 1.5
2.7 Other pumps
2.1
Source: Company data
28

29. Selected End-market Projects from Mid-term
Financial and number of highlights
Increased Operational HMS end-market projects
Project Brief description Completion Key metrics Comments
Lukoil & Bashneft JV
Joint development of the fields, in stage of project development. Reserves HMS has good references for previous
Trebs and Titov fields by 2013 Capex US$5-6 bn
141 mt projects
Rosneft
Min capex RUB 480 bn
Vankor 2 stage Further development. Capex for 2011 US$ 2.6 bn next stage by 2014 HMS participated in previous stages
Planned production 25 mtpa
Yurubcheno-Tokhomsk oilfield Development
Associated gas utilization program
Achievement of 95% level of associated gas utilization HMS participated in previous stages
(Komsomolskoe, Priobskoe oilfields)
Moskovtsev oilfield Development of a new field in KHMAO is planned to begin in 2012 Reserves ~33mln
Transneft
9 oil-pumping stations to be constructed to deliver oil to Khabarovsk and
ESPO expansion 9 OPS by 2015 HMS participated in previous stages
Komsomolsk refineries by 2015
Zapolyarye – Pur-pe pipeline Oil transportation from YANAO and Northen Krasnoyarsk region oilfields 4 OPS by 2015 Capex RUB 120 bn HMS participates in a project design
ESPO expansion 4 OPSs to be constructed to deliver oil to t Primorsk refinery by 2017 4 OPS by 2017 HMS participated in previous stages
Pur-pe – Samotlor expansion Construction of 2 OPS Total capex in 2011 RUB 77 bn 2 OPS by 2017 HMS participated in previous stages
TNK-BP
Russkoe oilfield Giant oilfield in YANAO with specific oil. Project production 20 mtpa Capex US$ 4.5 bn HMS participates in a project design
Samotlor Further development of an active oilfield in Nizhnevartovsk. by 2014 Capex US$ 4.6 bn HMS participated in previous stages
Uvat 21 oilfields in Tyumen region HMS participated in previous stages
East- and Novo- Urengoy gas and
Planned production for 2011 is 3.2bcm, up 17% on 2010 HMS participates in project design
condensate fields
Oilfield located in the Eastern Siberia, Irkutsk region. Development was Peak production by
Verkhnechonsk oilfield Additional US$3-4 bn HMS participated in previous stages
stimulated by close proximity of ESPO pipeline. 2014
Gazprom
The field will become a resource base for Russian pipeline gas and HMS produces units for complex gas
Shtokman gas and condensate field
liquefied natural gas (LNG) exports to the Atlantic Basin markets preparation
Gazprom Neft
Doubling oil equivalent production rate to 100 mtpa through development
Strategy 2020 by 2020
of new projects in YANAO, KHMAO, Eastern Siberia and offshore
Priobskoe oilfield Western Siberia. Recoverable reserves ~600 mt HMS participates in a project design
Urmanskoe and Shinginskoe oifields Eastern Siberia
Sberbank Capital
Dulisma oilfield Irkutsk region. Further development. 3rd resource base for ESPO Total reserves 15 mt HMS participated in previous stages
Taas-yuriah oilfield Sakha region. Further development. Total reserves ~130 mt Capex RUB 15-30 bn
Iraq
Rumaila brownfield Consortium headed by BP Capex US$ 15 bn HMS already submitted technical survey
Az Zubair Consortium headed by Eni Capex US$ 20 bn HMS participates in a tender
Rosatom
Rostov NPP Reactor 4 by 2015 Min capex RUB 100 bn HMS participated in previous stages
Belene (Bulgaria) Reactor 1 by 2017-18 Capex € 5-6.3 bn
Municipal water
Grozvodokanal Modernization and reconstruction of water utilities in Chechnya Capex about RUB 100 bn HMS participated in previous stages
Source: Public information, Media resources, Company data 29

30. Сontacts
General Inquiries
ir@hms.ru
Alexander Rybin Inna Kelekhsaeva
Head of Capital Markets IR Officer
Tel: +7 (495) 730-66-01 Tel: +7 (495) 730-66-01
ir@hms.ru kelekhsaeva@hms.ru
www.grouphms.com
7 Chayanova Str.
Moscow 125047
Russia
30

31. APPENDIX
31

32. Income Statement
RUB ‘000 2010 2009
Revenue 23,070,014 14,772,269
Cost of sales (17,367,404) (11,164,202)
Gross profit 5,702,610 3,608,067
Distribution & transportation expenses (573,198) (482,576)
General & administrative expenses (2,102,642) (1,827,189)
Other operating expenses (112,149) (97,679)
Impairment of goodwill - (116,998)
Operating profit 2,914,621 1,083,625
Finance income 57,089 46,806
Finance costs (823,391) (865,141)
Share of results of associates 15,108 17,193
Profit before income tax 2,163,427 282,483
Income tax expense (582,299) (212,386)
Profit for the year 1,581,128 70,097
Profit/(loss) attributable to:
Shareholders of the Company 1,469,116 (31,821)
Non-controlling interest 112,012 101,918
Profit for the year 1,581,128 70,097
Currency translation differences (85,899) (70,502)
Currency translation differences of associates 1,540 1,283
Other comprehensive loss for the year (84,359) (69,219)
Total comprehensive income for the year 1,496,769 878
Total comprehensive income/(loss) attributable to:
Shareholders of the Company 1,402,382 (76,930)
Non-controlling interest 94,387 77,808
Total comprehensive income for the year 1,496,769 878
Basic and diluted earnings per ordinary share for 14.32 (0.03)
profit/(loss) attributable to
the ordinary shareholders
Source: Company data 32

33. Balance Sheet
RUB’000 31 December 2010 31 December 2009
ASSETS
Non-current assets:
Property, plant and equipment 5,948,674 3,954,807
Other intangible assets 310,156 47,109
Goodwill 1,783,915 306,992
Investments in associates 507,141 507,293
Deferred income tax assets 130,779 53,992
Other long-term receivables 27,123 61,362
Total non-current assets 8,707,788 4,931,555
Current assets:
Inventories 2,840,745 3,179,644
Trade and other receivables and other financial assets 10,399,853 2,778,048
Current income tax receivable 38,086 58,016
Prepaid expenses 39,361 36,213
Cash and cash equivalents 351,086 758,127
Restricted cash 4,978 905
13,674,109 6,810,953
Non-current assets held for sale 96,095 -
Total current assets 13,770,204 6,810,953
TOTAL ASSETS 22,477,992 11,742,508
EQUITY AND LIABILITIES
EQUITY
Share capital 42,510 36,154
Share premium 210,862 210,862
Share capital to be issued - 6,356
Currency translation reserve (234,785) (168,051)
Retained earnings 2,897,296 1,480,712
Other reserves 38,987 37,035
Equity attributable to the shareholders of the Company 2,954,870 1,603,068
Non-controlling interest 1,508,263 669,631
TOTAL EQUITY 4,463,133 2,272,699
LIABILITIES
Non-current liabilities:
Long-term borrowings 3,864,176 3,429,475
Finance lease liability 9 8,479
Deferred income tax liability 745,762 197,307
Pension liability 262,525 125,407
Provisions for liabilities and charges 35,691 11,550
Total non-current liabilities 4,908,163 3,772,218
Source: Company data 33

34. Balance Sheet (cont’d)
RUB’000 31 December 2010 31 December 2009
Current liabilities:
Trade and other payables 10,799,358 3,255,533
Short-term borrowings 775,242 1,879,914
Provisions for liabilities and charges 312,213 209,760
Finance lease liability 8,446 13,094
Pension liability 24,736 20,922
Current income tax payable 115,340 25,069
Other taxes payable 1,071,361 293,299
Total current liabilities 13,106,696 5,697,591
TOTAL LIABILITIES 18,014,859 9,469,809
TOTAL EQUITY AND LIABILITIES 22,477,992 11,742,508
Source: Company data 34

35. Cash Flow Statement
RUB’000 31 December 2010 31 December 2009
Cash flows from operating activities
Profit before income tax 2,163,427 282,483
Adjustments for:
Depreciation and amortisation 449,776 343,987
Loss from disposal of property, plant and equipment and intangible assets 938 2,305
Finance income (57,089) (42,790)
Finance costs 818,773 865,141
Pension expenses/(income) 33,808 17,673
Warranty provision 51,109 18,150
Write-off of receivables 23,931 -
Interest expense related to construction contracts 17,408 14,953
Provision for impairment of accounts receivable (13,023) 69,559
Impairment of taxes receivable 10,052 -
Investments impairment provision (1,338) 6,099
Provision for obsolete inventories (107,634) 95,949
Foreign exchange translation differences 4,618 (4,016)
Provision for VAT receivable (10,887) 29,918
Provisions for legal claims 34,073 13,655
Share of results of associates (15,108) (17,193)
Impairment of goodwill - 116,998
Impairment of property, plant and equipment and intangible assets 19,288 13,848
Loss on disposal of subsidiaries 4,360 -
Other non-cash items (646) (18,861)
Operating cash flows before working capital changes 3,425,836 1,807,858
Decrease/(increase) in inventories 452,945 (810,442)
(Increase)/decrease in trade and other receivables (6,921,060) 34,526
Increase/(decrease) in taxes payable 674,369 (9,530)
Increase/(decrease) in accounts payable and accrued liabilities 7,063,530 (71,350)
Restricted cash (4,073) (285)
Cash generated from operations 4,691,547 950,777
Income tax paid (277,738) (286,395)
Interest paid (838,533) (875,750)
Net cash from/(used in) operating activities 3,575,276 (211,368)
Cash flows from investing activities
Repayment of loans advanced 3,139 122,476
Loans advanced (5,498) (108,139)
Proceeds from sale of property, plant and equipment and intangible assets 24,585 1,775
Interest received 56 39,352
Dividends received 16,800 10,313
Purchase of property, plant and equipment (950,275) (192,365)
Acquisition of associates - (122,756)
Acquisitions of subsidiaries, net of cash acquired (2,339,457) (239,806)
Proceeds from disposal of subsidiaries, net of cash disposed 7,475 -
Acquisition of intangible assets (48,681) (19,741)
Net cash used in investing activities (3,291,856) (508,891)
Source: Company data 35

36. Cash Flow Statement (cont’d)
RUB’000 31 December 2010 31 December 2009
Cash flows from financing activities
Repayments of borrowings (9,034,047) (5,571,316)
Proceeds from borrowings 8,800,148 6,775,593
Payment for finance lease (12,663) (19,971)
Acquisition of non-controlling interest in subsidiaries (578,844) (208,799)
Expenses related to share issue (58,049) -
Cash received from capital contribution 85,817 -
Cash received from additional share issue of subsidiary 428,420 -
Dividends paid to non-controlling shareholders of subsidiaries (320,458) (160,009)
Net cash (used in)/from financing activities (689,676) 815,498
Net (decrease)/increase in cash and cash equivalents (406,256) 95,239
Effect of exchange rate changes on cash and cash equivalents (785) (6,594)
Cash and cash equivalents at the beginning of the year 758,127 669,482
Cash and cash equivalents at the end of the year 351,086 758,127
Cash flows from investing activities
Repayment of loans advanced 3,139 122,476
Loans advanced (5,498) (108,139)
Proceeds from sale of property, plant and equipment and intangible assets 24,585 1,775
Interest received 56 39,352
Dividends received 16,800 10,313
Purchase of property, plant and equipment (950,275) (192,365)
Acquisition of associates - (122,756)
Acquisitions of subsidiaries, net of cash acquired (2,339,457) (239,806)
Proceeds from disposal of subsidiaries, net of cash disposed 7,475 -
Acquisition of intangible assets (48,681) (19,741)
Net cash used in investing activities (3,291,856) (508,891)
Cash flows from financing activities
Repayments of borrowings (9,034,047) (5,571,316)
Proceeds from borrowings 8,800,148 6,775,593
Payment for finance lease (12,663) (19,971)
Acquisition of non-controlling interest in subsidiaries (578,844) (208,799)
Expenses related to share issue (58,049) -
Cash received from capital contribution 85,817 -
Cash received from additional share issue of subsidiary 428,420 -
Dividends paid to non-controlling shareholders of subsidiaries (320,458) (160,009)
Net cash (used in)/from financing activities (689,676) 815,498
Net (decrease)/increase in cash and cash equivalents (406,256) 95,239
Effect of exchange rate changes on cash and cash equivalents (785) (6,594)
Cash and cash equivalents at the beginning of the year 758,127 669,482
Cash and cash equivalents at the end of the year 351,086 758,127
Source: Company data 36

37. Cost of Sales Optimization
Comments Cost of of sales structure 2009 vs 2010,mln)
Cost sales breakdown, 2009 vs 2010 (RUB %
11,164 17,367
 Operating costs grew 47% yoy in 2010 vs revenue 5.4% 5.1%
1.5% 1.3%
2.3% 2.0%
growth by 56% yoy 3.9% 3.3%
13.2%
15.4%
 Cost of sales increased by 56% yoy in 2010, reflecting
15.5%
16.1%
the consolidation of GTNG and also due to the increase
in supplies, raw materials and labor costs.
 About 60% of HMS Group’s cost of sales is for raw
materials and supplies, where ferrous metals account for 59.7%
55.4%
most of the cost 2009 2010
Materials Labour Cost of goods sold Subcontractors D&A Utilities Other
 Dual-supplier policy: Source: Company data
– HMS Group doesn’t have monopolistic or exclusive
World HRC price performance in 2010
suppliers
800
– HMS Group doesn’t have even one supplier with
share more than 5% 750 22%
 Fixing suppliers’ prices and making advance payments for 700
long-term contracts and passing on price increases to 650
clients for short-term contracts helps to hedge
600
commodity prices and currency risks
550
500
Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10
World hot rolled coil price index performance, $/tonne
expenses
Source: Bloomberg
37

38. Blue-chip Customer Base
Comments Revenue by Clients*, 2009 vs 2010
 FY2009 Total revenue
 Stable growth of revenue generated by Other Salym
RUB 14,772 mln Petroleum
2%
clients received from replacement and NK Dulisma
1% Surgutneftegaz
3%
Others
modernization works 50% Lukoil
1%
Orion Stroy
 Sharp increase in contracts’ quantity from 4%
TNK-BP
Transneft, Rosneft and Gazprom Neft played its 8%
role in a substantial revenue growth Rosneft
21% Gazprom Neft
4%
 New types of contracts include: Transneft
6%
– Integrated pump-based solutions (i.e. pumping
 Revenue structure by clients, RUB mln
stations for Transneft)
– Full-cycle projects (i.e. pumping stations in
14,298
Turkmenia)
7,329
– Project and design contracts for design of new 7,443 8,772
oilfields and pipelines 2009 2010
Others Large clients
Selected clients
 FY2010 Total revenue
Salym
RUB 23,070 mln Petroleum
1%
NK Dulisma Hors
Others 1% Group Surgutneftegaz
38% 1% 1%
Lukoil
2%
Turkmenistan
Orion Stroy
5%
TNK-BP
5%
Rosneft
22%
Gazprom Neft
8%
Transneft
16%
Source: Company data 38
* Large client - a client that brings revenue more than RUB 200 mln a year

39. East Siberia – Pacific Ocean pipeline
Total number of pumping stations 41
Yakutsk Sea of
Krasnoyarsk 13 14
15
Okhotks
12
region 11
16
17
10 18
9
8
RUSSIA 19
7 20
6 Khabarovsk
Taishet 5 Ust’-Kut
3 4 Skovorodino 21
22
region
1 23
2 Buryat 24
25
Irkutsk region
26 34
region 27 33
31 32 35
Chita 28 29 30
Chita Blagoveschensk 36
region
Irkutsk 37
38
39
CHINA
40
41
MONGOLIA
Vladivostok
Number of contracted pumping stations 20 Number of new pumping stations for increasing capacity 21
Pumping stations under construction by HMS 12 To supply Komsomolsk and Khabarovsk refineries 9
Pumping stations constructed by Sulzer 7 To supply Primorsk refinery 4
Pumping stations under construction by Turbonasos 2 No information at the present time 8
Source: Company data, Transneft 39

40. Zapolyarnoe-Pur-pe pipeline
Project figures Implementation
Capacity, mtpa up to 45 Construction period 2011-2015
Total length, km 488 1st stage Dec 2013
Projected cost, RUB bn 120 2nd stage Dec 2014
Total length of inlet pipelines, km 1,200 3rd stage Dec 2015
Inlet pipelines
Max capacity
Inlet point Oilfield License holder in 2020, mt
Main OPS 1 Vostochno-Messoyakhinskoe Slavneft * 10.9
Main OPS 1 Zapadno-Messoyakhinskoe Slvaneft 2.4
3rd stage Total Main OPS 1 13.3
OPS 2 Russkoe TNK-BP 6.8
OPS 2 Zapolyarnoe Gazprom 2.3
OPS 2 Tazovskoe Gazprom 1.0
OPS 2 Northern Urengoyskoe Gazprom n/a
OPS 2 Salekaptskoe Lukoil 0.3
2nd stage Total OPS 2 10.9
OPS 3 Urengoyskoe Gazprom 7.4
OPS 3 Pestsovoe Gazprom n/a
OPS 3 En-Yakhinskoe Gazprom n/a
OPS 3 Samburgskoe SeverEnergiya ** 0.2
OPS 3 Yaro-Yakhinskoe SeverEnergiya 0.5
OPS 3 License plot of Western Urengoyskoe TNK-BP 1.1
Total OPS 3 9.7
Total capacity to Pur-pe 34.0-45.0
1st stage
Legend
Projected Zapolyarnoe–Pur-pe pipeline
Inlet pipelines from main perspective oilfields (with production level over 2mln tons in 2020)
New OPS
Maximum level of pumping capacity by 2020, mtpa
Main OPS – main oil-pumping station of the future Zapolyarnoe-Pur-per pipeline
OPS – oil-pumping station
Source: Public sources, Transneft site * TNK-BP and Gazprom Neft have per 50% share 40
** Gazprom holds 51%; this shareholding should be sold to Novatek

41. Case Study: ESPO-I Expansion and
ESPO-II Contracts
Key contract highlights A pumping station for ESPO-I pipeline
 HMS is supplying pump systems (pumps, motors,
cooling sleeves, valves and etc.) to Transneft for
ESPO-I and ESPO-II pipelines
 HMS designed unique type of pumps for the
project, constructed a special pump testing facility
 HMS prepared target specification for design of
hardware (engines, cooling sleeves, valves and etc.)
for European producers (Siemens, Voit and etc.) as
well as coordinated full cycle procurement
 Key features of the project include:
– New approach for oil pumping: Variable motor
revolution, which saves energy
9. Friction oil pipelines
1. Trunk pump 5. Adsorptive dryers 10. Air cooling unit
– Integrated approach for project management: 2. Motor 6. Air collectors 11. Antifreeze feed pipes for oil coolers
HMS coordinated procurement from multiple 3. Coupling 7. Compressors 12. Antifreeze feed pipes for motor coolers
4. Oil coolers 8. Joints 13. Antifreeze air cooling unit
suppliers, R&D process for supplementary
equipment and performed turnkey Design and
Segment Products / Services
commissioning manufacturing
HMS and other
 Design, production and testing of
Pumps suppliers including
– Construction of a special testing facility pumps
Siemens
 Design of integrated pumping
– New approach to modeling: 3D design in solution
ANSYS CFX was used to model operation of  Overall project management
an entire pumping system EPC  Procurement for supply of HMS
engines, cooling sleeves, valves
and other equipment
 Turn-key commissioning
Source: Company data
41

42. Production assets
Promburvod (PBV) Livnynasos (LN) HMS Household pumps Dimitrovgradhimmash (DGHM)
 Products: Water well submersible  Products: Water well submersible  Products: Household vibration pumps  Products: Equipment for oil and chemical
pumps pumps industries and pumps for oil refining
HMS Neftemash
 Products: Modular equipment for oil and gas
and water industries
HMS Pumps
 Products: Industrial pumps for oil and gas,
power generation
Nizhnevartovskremservice (NRS)
Belarus  Services: Maintenance and repair of pump
equipment, drilling and other oil and gas
Ukraine field equipment
Minsk Moscow
Nasosenergomash (NEM) Russia
Sumy Bavleny
 Products: Pumps for thermal and nuclear
power generation and oil & gas industry Sibneftavtomatika (SibNA)
Livny Dimitrovgrad
Nizhnevartovsk  Products: High-precision measuring
equipment for oil, gas and water flow rates
Rostov Tyumen
VNIIAEN Tomsk
 Description: R&D center for pumps used in
nuclear, thermal power generation, oil and
gas industry Tomskgazstroy (TGS)
HMS Group  Services: Trunk oil and gas pipeline and
auxiliary facilities construction
 Headquarters
 Sales team1: 118
Rostov Vodokanalproekt (RVKP) Giprotyumenneftegaz (GTNG) Sibkomplektmontazhnaladka (SKMN)
 Services: Project design for water utilities  Services: Project and construction design of  Services: Design, construction and
oil and gas facilities commissioning of oil and gas field projects
Source: Company data
Note: Number of employees as of 9M 2010
1 Total number of HMS’ sales people for 9m 2010 is 192
Industrial pumps Modular equipment EPC
42

43. Competitive Environment in Russia
Customized Pumps Standard Pumps
Russian  Limited R&D  Not well-positioned in terms of operational
efficiency due to limited scale of
players  Small scale of operations
operations
 Pump manufacturing is a non-core business for
most of players
 Products are often not in direct competition with
HMS product line
 Key names: NPO Frunze, Votkinsk Plant,
Uralhydromash
Global  Lack of local engineering expertise  Not well-positioned in terms of price of
players products
 Water pumps: KSB, Grundfos
 Oil trunk pumps: Sulzer, Flowserve
 Power: Weir, KSB
Chinese  Lack of relevant technologies to produce  No brand names
players customized pumps
 No established relationships with Russian
clients
Source: Company data
43

44. Growth Strategy: Selective Acquisitions in Key
Segments
Core Focus for Potential Acquisitions Acquisition Objectives and Rationale
Oil & Gas  Flow control solutions in oil and gas  Increase of market share
 Pumps for oil and gas, chemical and petrochemical  Diversification of product offering
applications
 Expansion into new segments
 Modular equipment, tanks and vessels
 Dimitrovgradkhimmash (DGKhM)1
Power  Pumps for nuclear and thermal power generation,  Increase of market share
marine applications
 Diversification of product offering
 Pumps for nuclear and thermal power generation, oil
refining, chemical and petrochemical applications
 Pumps for thermal power generation, water utilities
Water  Pumps for wet-pit sewage applications  Diversification of product offering
 Pumps for water utilities, nuclear and thermal power  Strengthening positions in water segment
generation
 Increase of market share
 Modular equipment for wastewater treatment
 Expansion into wastewater treatment segment
Other  Pumps for oil refining and metals and mining  Diversification of product offering
 Pumps for oil refining, oil transportation, water utilities  Expansion into new segments
and vessels
 Increase of market share
 Pumps for oil transportation, oil refining, metals and
mining
 Pumps for chemical applications, nuclear power
generation, water utilities
Source: Company data
1 The Group has an option to acquire 11.0% of the voting shares of its associate, DGKhM, in 2012
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