THE STOICS

Accenture

Market Entry Strategy

Moscow 2010

THE STOICS

Russian Economy Now & Later

2010 2020 CAGR 5%

Russian GDP

$1506 bln*

$2311 bln**

Optimistic 13,8 %

$3.47 bln $1.59 bln $0.38 bln

Management Consulting $0.25 bln Market Size

Real 6,4 %

Pessimistic 1,5 %

Main Market Features Attractive long-term investment climate High level of education High rates of capital depreciation Planned entrance to WTO Affected by BASEL III

THE STOICS
1

*All figures are derived in DFNS.xlsx Slide 1 Material **All figures are in current prices

THE STOICS

Management Consulting Market

Suppliers
Low bargaining power of suppliers Low skill employment market

Customers
Increasing number of clients Low price sensitivity Increasing market transparency High margins allow clients to maintain own consulting teams

Threats from new competitors

Economies of scale Low entry costs Close relationships with client companies

Threats from existing competitors

Specialty firms charge low fees Low switching costs for customers

THE STOICS
2

* All figures are derived in DFNS.xlsx Slide 2 Material

THE STOICS

Entrance Strategies
M&A Joint Venture From Scratch
Independence Too long Lack of connections and expertise on the Russian market

Acquisition of small consulting boutiques

Immediate Clients

Acquisition of Strategy Partners Quick Acquisition of a Major Portion of the Market Mature Team Expensive* Potential Issues with Integration

Can be Hard to Integrate Small Dispersed Teams Usually Only One Big Client per Boutique (i.e. Small Share of the Market) Narrow Specialization
* Further details are in DFNS.xlsx Slide 3 Material

THE STOICS

Joint Venture: It Makes Sense

Improvement in Government Relations Access to VTBs Corporate Clients Expertise in a Russian Financial Industry New Business: Restructuring of Unprofitable Companies currently under VTBs Management (Recession Victims) Political Risks Loss of Control Reputational Risks Finding Local Talent
* The deal structure can be found in DFNS.xlsx Slide 4 Material

Good Investment Opportunity with Low Risk due to Buyback Put Option* Business Diversification IPOs/Exits: Access to Accentures Foreign Clients Competitive Response to Sberbanks acquisition of Strategy Partners Expenses Reputation Conflicts

THE STOICS

Market Penetration (10 year Forecast)

A call option to buyback shares of the company from VTB will help us develop an independent strategy should the interests diverge.

Unique Accenture Insight

THE STOICS