HMS Group is a leading provider of flow control solutions in Russia and the CIS. In the first quarter of 2011: - Revenue increased 84% year-over-year to Rub 7,051 million - EBITDA grew 269% to Rub 1,588 million, with the margin expanding to 22.5% - Net income increased significantly to Rub 991 million from a net loss in the prior year period

1. HMS Group
Investor Presentation
June 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. Agenda
WHO WE ARE 4
HMS at a Glance 5
History of Growth: Industry Consolidation 6
Shareholder Structure and Corporate Governance 7
FINANCIAL PERFORMANCE IN 2010 & 1Q 2011 8
Financial Performance for 2010 9
EBITDA Development in 2010 10
Revenue & EBITDA Contribution by Segments 2010 11
Financial Highlights for 1Q 2011 12
EBITDA Development in 1Q 2011 13
Revenue & EBITDA Contribution by Segments 1Q 2011 14
CAPEX & Working Capital in 1Q 2011 15
2011 & 2012 BUSINESS UPDATE & OUTLOOK 16
HMS is the Leader on Growing Markets 17
Backlog Analysis 18
Demand Shifts to Integrated Solutions 19
Selected End-market Projects for Mid-term 20
Sources of Best-in-class Margins & Growth 21
CONTACTS 22
APPENDIX 23
3

4. WHO WE ARE
4

5. HMS at a Glance
Key investment highlights Key financial indicators for 2005-2010
 Attractive industry fundamentals: impressive prospects of 16.5% 23,070
oil & gas, nuclear and thermal power and water sectors in 15.3%
Russia and the CIS 12.8%
12.3%
 The leading provider of flow control solutions in Russia and 11.7%
10.6% 14,772
the CIS, including high-capacity pump systems up to 12 14,046
13,399
MW
 Advanced R&D capabilities: basis for high-margin &
sustainable performance and growth 6,724
 Diversified and well-established customer base with more 4,498
3,519
than 4,000 clients 1,644 1,890
830 1,423
744
 Operational and product quality excellence
2005 2006 2007 2008 2009 2010
 History of resilient financial growth and strong backlog
Revenue, Rub mn EBITDA, Rub mn EBITDA margin, %
 Strong management team: company founders and top
professionals Source: Company data
Revenue Rub 7,051 mln* EBITDA adj. Rub 1,588 mln* Profit for the period Rub 991 mln*
Industrial pumps Modular equipment EPC
Revenue Rub 4,427 mln Revenue Rub 1,148 mln Revenue Rub 1,452 mln
EBITDA adj. Rub 1,285 mln EBITDA adj. Rub 143 mln EBITDA adj. Rub 150 mln
New photo
Pump station of Baltic pipeline system, Transneft Oilfield Pump Station 2, Vankor oilfield, Rosneft Oil Pump Station “Tayezhnaya”, Transneft
* 1Q 2011 Key Financials
Notes: Hereinafter “EBITDA” read as “EBITDA adjusted”, “EBITDA margin” read as “EBITDA adjusted margin” and “Net Income” read as “Profit for the period/year” 5

6. History of Growth: Industry Consolidation
From pumps to integrated solutions
1993–2002 Pump Trading
Pump Design and
2003 Pump Trading
Manufacturing
Pump Design and Modular Equipment
2004–2006 Pump Trading Design
Manufacturing and Manufacturing
Pump Design and Modular Equipment
2007–2008 Pump Trading Design Construction
Manufacturing and Manufacturing
Pump Design and Modular Equipment
2009–Today Pump Trading Design EPC
Manufacturing and Manufacturing
Oil and gas production Oil transportation Power generation Water utilities
6

7. Shareholder Structure and Corporate Governance
Board of Directors Comments
The Board is comprised of professionals with
   
significant experience in pump and oil and gas
industries
 It includes founders, who have led HMS since its
inception
German Tsoy Artem Molchanov Kirill Molchanov  HMS is the core business of the largest
Chairman of the Board Member of the Board Member of the Board
Non-executive Director Managing Director First Deputy CEO shareholders
(CEO) (CFO)
 Long-term commitment to the business from
shareholders
Shareholders Structure
Vladimir Lukyanenko Nikolay Yamburenko Yury Skrynnik German
Member of the Board Member of the Board Member of the Board Tsoy
Other
Non-executive Director Head of Industrial Director for Strategic 17.3%
managers
Pumps Marketing
21.8%
Vladimir
Lukyanenko
24.0%
Free-float
36.9%
Philippe Delpal Andreas Petrou Gary Yamamoto
Source: Company data
Member of the Board Member of the Board Member of the Board
Independent Non-executive Director Independent
Non-executive Director Cyprus Non-executive Director
 Founders 7

8. FINANCIAL PERFORMANCE IN 2010 & 1Q 2011
8

9. Financial Performance for 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
9

10. EBITDA Development in 2010
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 10

11. 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 revenue
+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 ebitda primarily attributable to increasing share of contracts for pump-
1,012 +134% 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
revenue
+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
ebitda
599
-24% 2009
2009 2010
Revenue, Rub mln EBITDA, Rub mln EBITDA margin, %
 EPC 9.0% EPC:
6,135 revenue  Revenue growth of 46% yoy is primarily attributable to an
+46%
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
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 11

12. Financial Highlights for 1Q 2011
Significant yoy & qoq growth
Rub, mln 1Q 2011 1Q 2010 chg, yoy 4Q 2010 chg, qoq
Revenue 7,051 3,835 +84% 6,912 +2%
Gross profit 2,072 774 +168% 1,845 +12%
EBITDA 1,588 431 +269% 1,268 +25%
Operating profit 1,378 117 +1,083% 883 +56%
Net income (loss) 991 (89) n/a 492 +101%
Total debt 2,688 5,629 -52% 4,648 -42%
Gross margin 29% 20% +919bps 27% +270bps
EBITDA margin 23% 11% +1,130bps 18% +417bps
Operating margin 20% 3% +1,651bps 13% +676bps
Net income margin 14% (2%) +1,638bps 7% +692bps
Source: Company data
12

13. EBITDA Development in 1Q 2011
10,000
Key EBITDA drivers in 1Q’10 vs 1Q’11, % of revenue
operating expenses 0
operating expenses 5.7bn vs 3.7bn in 1Q’10 | +52.6% yoy
revenue in 1Q’11 | +83.9% yoy 1Q 2010 1Q 2011
2.1% 6.4%
70.6% 1.3% 2.0% 1.0% 22.5%
4.0% 19.5%
12.5%
79.8% 11.2%
6.1%
2.1%
0.7%
3.0%
Revenue
Revenue CostCost of sales Distribution &
of sales Distribution & General &
General & Other expenses
Other expenses Operating profitDepreciation &
Operating profit Depreciation & Other operating
Others EBITDA
EBITDA*
transport
transport
expenses
administrative
administrative amortisation expenses, net &
amortisation
Source: Company data expenses expenses non-monetary items
expenses expenses
Net income drivers in 1Q’10 vs 10’11, Rub mln Comments
1,378  EBITDA increased by 269% yoy to Rub 1,588 mln primarily due to:
1,400
 Execution of large high-margin infrastructure contracts in oil
1,200 transportation
991
1,000  Margins growth in other segments of a pump market
800  Consolidation of GTNG
600  Low EBITDA in 1Q 2010
400  Effective cost control by hedging of raw materials & supplies
200 117 prices
10 4 9
0  Effective SG&A cost control and economy of scale
(4) (1)  Higher-than-average profitability of construction contracts
(200) (89)
(133)
(400) (210) (267)  As a result, EBITDA margin increased to 22.5%
Operating Finance Finance Share of Income tax Net  Organic EBITDA, excluding consolidation of GTNG, grew by 244%
profit income costs results of expense income yoy to Rub 1,481 mln
associates
 Net income grew to Rub 991 mln in 1Q 2011 compared to a net
1Q 2010 1Q 2011 loss of Rub 89 mln in 1Q 2010 due to the growth of operating
profit and reduction of finance costs
Source: Company data 13

14. Revenue & EBITDA Contribution by Segments
Highlights by core segments, Rub mln Comments
 Industrial Pumps Industrial Pumps:
 Revenue increased by 198% yoy and amounted to Rub 4,427
29.0% revenue mln, primarily due to the execution of large-scale projects for
4,427 +198% the delivery of integrated pumping systems as well as a stable
15.8%
order intake of regular contracts
 EBITDA up 446% yoy, mainly as a result of large high-margin
1,488 1,285 ebitda contracts in oil transportation, growing profit margin for other
+446% types of pumping equipment, as well as a low EBITDA base in
235
1Q 2010
1Q 2010 1Q 2011  EBITDA margin grew to 29.0%
Revenue, Rub mln EBITDA, Rub mln EBITDA margin, %
 Modular equipment Modular equipment:
 Revenue was down 7% yoy to Rub 1,148 mln, compared to Rub
revenue 1,235 mln in the corresponding quarter of 2010
12.4%
-7%
 EBITDA increased by 3% yoy to Rub 143 mln in 1Q 2011,
1,235 1,148 compared to Rub 138 mln in 1Q 2010
11.2%  EBITDA margin was up to 12.4%
ebitda
138 143 +3%  These changes reflect average quarterly fluctuations
1Q 2010 1Q 2011
Revenue, Rub mln EBITDA, Rub mln EBITDA margin, %
 EPC EPC:
10.3%
revenue  Revenue grew by 34% yoy to Rub 1,452 mln, primarily due to
6.3% 1,452
+34% the consolidation of GTNG
1,086
 EBITDA was up 119% yoy and totaled Rub 150 mln following the
consolidation of GTNG
ebitda  EBITDA margin increased to 10.3%
150 +119%
69  Organic revenue, excluding the impact of the GTNG acquisition,
decreased by 15% yoy, and organic EBITDA was down by 37%
1Q 2010 1Q 2011 yoy
Revenue, Rub mln EBITDA, Rub mln EBITDA margin, %
Source: Company data
14

15. CAPEX & Working Capital in 1Q 2011
Capital expenditures in 1Q’10 vs 1Q’11 Debt position in 1Q’10 vs 1Q’11
HMS’ internal covenant for Net debt/ EBITDA is 2.5x
5,629 15.8%
total debt
1.6x -52%
235
2,960 8.9%
143 2,688
0.7x
82 cash
58 -77%
683
1Q 2010 1Q 2011 1Q 2010 1Q 2011
Organic capex, Rub mln Depreciation & amortization, Rub mln Total debt, RUB mln Cash, Rub mln
Capex to D&A ratio, x Effective interest rate, Q-end
Source: Company data Source: Company data
Key highlights in 1Q‘10 vs 1Q’11 Working capital performance in 4Q’10 vs 1Q’11
Rub, mln 1Q 2011 1Q 2010 chg, %
15.8%
Operating cash flow (840) 1,986 -
4,147
+70%
Investment cash flow (241) (50) -
Free cash flow (1,081) 1,936 - 10.6%
Financing cash flow 1,415 264 - 2,441
Long-term debt 2,132 3,698 (42%)
Short-term debt 556 1,930 (71%)
Net debt 2,005 2,669 (25%)
Total debt to Equity ratio 0.31 2.66 -
4Q 2010 1Q 2011
Total debt to EBITDA ratio 1.69 13.07 -
Working capital, Rub mln Working capital to revenue LTM ratio
Source: Company data Source: Company data 15

16. 2011 & 2012 BUSINESS UPDATE & OUTLOOK
16

17. HMS is the Leader on Growing Markets
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
113.8
16% 97.5 “hot cycle”. The market share decrease in refinery &
86.0
99.2 68% petrochemicals is attributable to HMS Group’s presence only in
21.7 25.1
standard “cold cycle” pumps. Deferred demand is being created
7.5 12.6
2009 2010 2009 2010 2009 2010
for standard “cold cycle” pumps
Pump stations Automated group Associate gas
 Decrease in nuclear non-MPC pumps is attributable to the
metering units processing and industry’s specifics expressed in long-term only contracts.
2009 2010 transport units
Revenue from signed in 2009 contracts will be recognized in
HMS Group revenue, US$ mln Others 2011
Source: Frost & Sullivan report 2010
17

18. Backlog Analysis
Backlog structure performance, Rub bn
22.8
20.6
19.8
5.3
1.3 15.8
6.2 5.6
1.4 1.5
9.5 6.0
1.5
4.0
1.1 12.1
0.4 10.1 10.1
6.5
4.3 4.1 2.8 2.7 1.8
31 Dec 09 31 Mar 10 30 Sep 10 31 Dec 10 31 Mar 11
Construction component of EPC Oil transportation pumps Nuclear pumps Others
Source: Company data
Comments
 Backlog decreased to Rub 15.8 bn
 Backlog reduction is attributable to:
– ESPO revenue recognition
– Decline in low-margin construction component of EPC segment
 Oil transportation pumps backlog amounts to Rub 6.5 bn, the most part of revenue to be recognized in 2011
 Nuclear pumps backlog amounts to Rub 1.5 bn, the most part of revenue to be recognized in 2011
 Other products and services backlog remains stable
 Standard pumps and other equipment, sold from the Company’s warehouses, bring up to Rub 2.5 bn of revenue. Usually these products are not
considered in backlog calculation
 HMS Group expects backlog to grow by 4Q 2011
18

19. Demand Shifts to Integrated Solutions
Russian markets history and forecast, Rub bn Example of integrated solutions for ESPO-I pipeline
 Pumps1 CAGR 18.8% 224
79
2009 2015E
 Modular equipment2 CAGR 14.0%
22
10
2009 2015E
HMS core markets transformational development
 Trunk pipelines construction, km
>10,000
1. Trunk pump 8. Joints
<2,500 2. Motor 9. Friction oil pipelines
3. Coupling 10. Air cooling unit
4. Oil coolers 11. Antifreeze feed pipes for oil coolers
2005-2009 after 2009
5. Adsorptive dryers 12. Antifreeze feed pipes for motor coolers
6. Air collectors 13. Antifreeze air cooling unit
 Thermal power capacity, GW 7. Compressors
>20
<5 Producers Products / Services
 HMS and other suppliers including  Design, production and testing of
2004-2010 after 2010 Siemens pumps
 Design of integrated pumping
 Oil reserves, bn bbl ~75 solution
~60
 Overall project management
 HMS  Procurement for supply of engines,
cooling sleeves, valves and other
equipment
end of 1999 end of 2009
 Turn-key commissioning
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 Core markets for HMS, includes pump stations, automated group metering units, associated gas processing and transport units
19

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

21. 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
21

22. Сontacts
General Inquiries
ir@hms.ru
Alexander Rybin Inna Kelekhsaeva
Head of Capital Markets IR Officer
Tel: +7 (495) 730-66-12 Tel: +7 (495) 730-66-01
ir@hms.ru kelekhsaeva@hms.ru
www.grouphms.com
7 Chayanova Str.
Moscow 125047
Russia
22

23. APPENDIX
23

24. 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, 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 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
 Working capital is calculated as Inventories plus Trade and other receivables minus Trade and other payables
 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
24

25. Statement of Financial Position
RUB,’000 31 March 2011 31 December 2010
ASSETS
Non-current assets:
Property, plant and equipment 5,980,920 5,948,674
Other intangible assets 285,890 310,156
Goodwill 1,783,915 1,783,915
Investments in associates 510,712 507,141
Deferred income tax assets 135,372 130,779
Other long-term receivables 26,597 27,123
Total non-current assets 8,723,406 8,707,788
Current assets:
Inventories 3,363,911 2,840,745
Trade and other receivables and other financial assets 8,572,511 10,399,853
Current income tax receivable 62,323 38,086
Prepaid expenses 28,875 39,361
Cash and cash equivalents 683,252 351,086
Restricted cash 5,829 4,978
12,716,701 13,674,109
Non-current assets held for sale 96,095 96,095
Total current assets 12,812,796 13,770,204
TOTAL ASSETS 21,536,202 22,477,992
EQUITY AND LIABILITIES
EQUITY
Share capital 48,329 42,510
Share premium 3,523,535 210,862
Currency translation reserve (471,187) (234,785)
Retained earnings 3,891,200 2,897,296
Other reserves 122,852 38,987
Equity attributable to the shareholders of the
Company 7,114,729 2,954,870
Non-controlling interest 1,453,681 1,508,263
TOTAL EQUITY 8,568,410 4,463,133
LIABILITIES
Non-current liabilities:
Long-term borrowings 2,132,174 3,864,176
Finance lease liability - 9
Deferred income tax liability 950,249 745,762
Pension liability 267,648 262,525
Provisions for liabilities and charges 52,787 35,691
Total non-current liabilities 3,402,858 4,908,163
Current liabilities:
Trade and other payables 7,789,261 10,799,358
Short-term borrowings 550,418 775,242
Provisions for liabilities and charges 268,106 312,213
Finance lease liability 5,247 8,446
Pension liability 25,219 24,736
Current income tax payable 21,341 115,340
Other taxes payable 905,342 1,071,361
Total current liabilities 9,564,934 13,106,696
TOTAL LIABILITIES 12,967,792 18,014,859
TOTAL EQUITY AND LIABILITIES 21,536,202 22,477,992
25
Source: Company data

26. Statement of Comprehensive Income
Three months ended Three months ended
RUB,’000 31 March 2011 31 March 2010
Revenue 7,051,377 3,834,974
Cost of sales (4,979,520) (3,060,568)
Gross profit 2,071,857 774,406
Distribution and transportation expenses (150,620) (152,313)
General and administrative expenses (450,891) (480,540)
Other operating expenses, net (92,228) (25,028)
Operating profit 1,378,118 116,525
Finance income 3,778 9,719
Finance costs (133,292) (209,948)
Share of results of associates 9,196 (4,221)
Profit/(loss) before income tax 1,257,800 (87,925)
Income tax expense (267,293) (1,395)
Profit/(loss) for the period 990,507 (89,320)
Profit/(loss) attributable to:
Shareholders of the Company 996,562 (96,503)
Non-controlling interest (6,055) 7,183
Profit/(loss) for the period 990,507 (89,320)
Currency translation differences (289,207) (33,607)
Currency translation differences of associates 1,540 392
Other comprehensive loss for the period (287,667) (33,215)
Total comprehensive income/(loss) for the period 702,840 (122,535)
Total comprehensive income/(loss) attributable
to:
Shareholders of the Company 760,160 (120,628)
Non-controlling interest (57,320) (1,907)
Total comprehensive income/(loss) for the period 702,840 (122,535)
Basic and diluted earnings per ordinary share for
profit/(loss) attributable to the ordinary
shareholders (expressed in Rub per share) 8.98 (0.94)
Source: Company data 26

27. Cash Flow Statement
Three months ended Three months ended
RUB,’000 31 March 2011 31 March 2010
Cash flows from operating activities
Profit/(loss) before income tax 1,257,800 (87,925)
Adjustments for:
Depreciation and amortisation 143,229 81,510
Loss/(gain) from disposal of property, plant and equipment
and intangible assets 1,688 (6,221)
Finance income (3,778) (9,719)
Finance costs 121,082 208,528
Pension expenses 10,112 38,305
Warranty provision (28,958) (11,857)
Write-off of receivables 10,984 -
Interest expense related to construction contracts (1,632) (7,787)
Provision for impairment of accounts receivable (34,513) 47,634
Investments impairment provision 343 -
Provision for obsolete inventories 31,435 89,595
Foreign exchange translation differences 12,210 1,420
Provision for VAT receivable (5,819) -
Provisions for legal claims (69,111) 13,209
Share of results of associates (9,196) 4,221
Other non-cash items (179) (2)
Operating cash flows before working capital changes 1,435,697 360,911
Increase in inventories (607,855) (138,274)
Decrease/(increase) in trade and other receivables 1,716,233 (1,584,048)
(Decrease)/increase in other taxes payable (141,583) 424,768
(Decrease)/increase in accounts payable and accrued liabilities (2,941,933) 3,182,260
Restricted cash (851) (298)
Cash (used in)/generated from operations (540,292) 2,245,319
Income tax paid (177,300) (56,899)
Interest paid (122,528) (202,857)
Net cash (used in)/from operating activities (840,120) 1,985,563
Cash flows from investing activities
Repayment of loans advanced 453 53
Loans advanced - 4,066
Proceeds from sale of property, plant and equipment and
intangible assets 2,226 373
Interest received - 3,323
Purchase of property, plant and equipment (235,326) (57,622)
Acquisition of intangible assets (7,948) -
Net cash used in investing activities (240,595) (49,807)
Cash flows from financing activities
Repayments of borrowings (4,176,052) (1,131,519)
Proceeds from borrowings 2,218,829 1,431,873
Payment for finance lease (3,208) (3,538)
Acquisition of non-controlling interest in subsidiaries - (32,362)
Cash received from additional share issue of subsidiary 80 -
Proceeds from share issue, net of issue costs 3,375,240 -
Net cash from financing activities 1,414,889 264,454
Net increase in cash and cash equivalents 334,174 2,200,210
Effect of exchange rate changes on cash and cash
equivalents (2,008) 1,726
Cash and cash equivalents at the beginning of the
period 351,086 758,127
Cash and cash equivalents at the end of the period 683,252 2,960,063 27
Source: Company data

28. 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)
28

29. 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 29

30. 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. 30