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Participation of RUSNANOin Investment Funds of Nanotechnologies

May 26th, 2010

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Reasons for RUSNANO to participate in Investment Funds

To leverage RUSNANO’s investments in order to reach “multiplication” effect for RUSNANO’s funds invested in Russian nanotechnologies

To attract domestic and foreign investors to innovative projects in Russia

To get access to the best investment and technological expertise all over the world

To organize an efficient process of technology transfer to Russia

To create a financial infrastructure for further development of Russian nano-industry

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Main requirements of RUSNANO when participating in Investment Funds

Требования Роснанок фондам

RUSNANO commits up to 50% of the Fund. The remaining commitments must come from the 3rd party sources.RUSNANO commits up to 50% of the Fund. The remaining commitments must come from the 3rd party sources.

Selection of Fund Concepts and Fund Managers on a competitive basisSelection of Fund Concepts and Fund Managers on a competitive basis

At least 50% of Fund’s investments (RUSNANO’s share) must go to “nano” related projects with establishment of production in Russia. At least 50% of Fund’s investments (RUSNANO’s share) must go to “nano” related projects with establishment of production in Russia.

Fund’s target IRR should not be less than 20%Fund’s target IRR should not be less than 20%

RUSNANO requires a negative control over Fund’s investment decisions to ensure that2 requirements are met (nanotechnology and establishment of production in Russia)RUSNANO requires a negative control over Fund’s investment decisions to ensure that2 requirements are met (nanotechnology and establishment of production in Russia)

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Types of Funds with participation of RUSNANO (excl. Rusnano Capital)

RUSNANO

Funds for small &medium-size

projects

Industrial &Sectoral Funds

IntergovernmentalFunds

International Funds

Funds invest in small and midcap companies which develop and produce nano products.Usually they are created as regional funds.

Funds are established in Russian jurisdiction by Russian fund managers.

Funds invest in companies in particular industries. Funds are supported by strategic investors and fund managers with industrial focus.

Funds are established in Russian jurisdiction by Russian fund managers.

Funds are established in furtherance of interstate agreements between Russian and foreign governments

Funds are targeted at “technology transfer”from a particular region.

Funds are managed by world-class VC fund managers

- Skolkovo Fund;- Perm Region Fund;- Russia North Region Fund

- Metallurgy Fund - Russian-Kazakh Fund - DFJ-VTB Aurora

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RUSNANO participation in Funds in numbers (excl. Rusnano Capital)

Funds already approved: 6

Total size of approved funds: approx. US$500 million

Rusnano’s share in approved funds: approx. US$215 million

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• RUSNANO Capital is an investment management firm formed by Russian Corporation of Nanotechnologies at the initiative of the government of the Russian Federation and registered in Switzerland

• RC mission is to achieve highest returns by investing in advanced technologies, providing access to the Russian market and leveraging Russia’s technological might

• RUSNANO Capital

• Anchor investor

• Access to Russia for global funds and their portfolio companies

• Access to Russia’s academic research and R&D expertise

• Management of RUSNANO Capital has substantial experience in global asset management and investment banking

RUSNANO CAPITAL Overview

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Key figures

Commitment sizeFrom RUSNANOFrom international investors

Funds investing period

Life

Target IRR

$2 billion$1 bn

$1 bn

Fourth quarter of 2009 – fourth quarter of 2013

10 years

20% - 25%

Legal Form Luxembourg SICAR fund or similar jurisdiction

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Roadmap

• Investing alongside global private equity, VC and other high-profile investors

• Providing access to untapped Russian market

• Direct access to Russian R&D capabilities

• Facilitating technology transfer

• Commercialization of Russia originated technologies

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Sector Focus

Green, alternative and renewable energy BiotechPharmaceuticals

Fund investments are carried out primarily in expansion stage companies in commercialization or close to commercialization phase

Investment criteria

New materials and technology

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Партнеры УК/Фондов

• History and successful track record in managing PE and VC funds operating in high-technology sector

• Established relationships with institutional investor base; ability to raise capital within the required timeline

• Experience in emerging markets

International partner selection criteria

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RUSNANO Capital Board of Directors

Two representatives of RUSNANO Corporation

Anatoly Chubais – CEO of RUSNANO Corporation

Oleg Kiselev – Deputy CEO of RUSNANO Corporation

A representative of RUSNANO Capital management

Irina Rapoport - General Director of RUSNANO Capital

Two independent directors:

Lord Skidelsky – Member, House of Lords

Michael Carter – former World Bank Country Director for Russia,

India and the Baltics

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Механизмы контроля

All RUSNANO Capital investments should comply with the approved investment strategy

•Participation in the Investment Committee

•Participation in general partner’s decision making process

•Participation on the board of portfolio companies

Means of Control

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Механизмы контроля

THANK YOU!

QUESTIONS ARE WELCOME