General information about the company

Since October 1994 SOLID Investment & Financial Company has operated on the Russian securities market as a financial broker, investment company and investment consultant.

The major founders of the company are Tatneft, the fourth largest oil producing company in Russia, and Zenit Bank.

In July 1995 IFC SOLID became a member of the Professional Association of Stock Market Participants (PAUFOR), while in August 1996 it joined the National Association of Stock Market Participants (NAUFOR).

In August 1995 the company became an associated member of the Depository Clearing Company (DCC), in order to improve their client service and to reduce registration risks.

IFC SOLID is a market maker in the Russian Trading System.

Over the years of its operation, the company has proven to be a reliable partner on the corporate share market, both among the Russian and foreign professional market operators.

Company structure

Trading Operations Division

• Analytical Department
• Trading Department
• Exchanges Department
• Government Securities Department

Financial Division

• Financial Planning & Control Department

Client Service Division

• Client Service Department
• Marketing Department

Corporate Finance Division

Regional Relationships Division

Executive Division

• Law Department
• Public Relations Department

Operations with Corporate Securities and Derivatives

• brokerage service;
• short-term speculative operations with the most liquid shares in the Russian Trading System;
• investment portfolio formation and portfolio management according to preset risk/profitability ratio;
• clients' orders fulfilment, full brokerage services;
• trust management of clients' blocks of shares;
• operations with derivatives (futures, forwards, options);
• margin accounts (providing loans against equities);
• hedging;
• full legal and documentation support;
• ADR trading.

SOLID's brokers are constantly in touch with the leading operators on the Russian market and actively cooperate with foreign and Russian counterparts. This allows them to execute clients' orders promptly , efficiently and competitively.

A thorough knowledge of the Russian market enables SOLID to maximise their clients' trade and arbitration strategies through different financial instruments, thereby ensuring the best transaction terms for both Russian clients and foreign investors.

In addition to our presence on the blue chip market, SOLID also offers its clients the opportunity to purchase regional issuers' blocks of shares that are not included in the most liquid share listings. The so-called 'second-tier' shares, despite being less known and more undervalued, provide the highest profits to investors.

Government Securities

• Government short-term bonds (GKO);
• Federal loan bonds (OFZ);
• Government savings bonds (OGSZ);
• Short-term municipal and republican bonds;
• Derivatives (futures, forwards for government securities).

Clients may wish to invest their temporarily free assets into government securities that are the most reliable instrument of forming an investment portfolio with the preset level of risk and profitability.

The Government Securities Department offers its clients the most optimal and flexible schemes of investing into Russian government securities by using advanced methods of management of assets placed in GKO.

The Company offers a wide variety of management patterns for a GKO portfolio depending on the clients' market expectations. They range from an on-demand investment account to the attraction of derivative financial instruments.

Corporate Finance

IFC SOLID's Corporate Finance Division is actively cooperating with Russian enterprises in attracting Russian and foreign capital aimed at production development. Their major clients are Tatneft, Kazanorgsintez, Nizhnekamskshina, Kazan Helicopter Plant, Nizhnekamskneftekhim, and others. Besides working with large enterprises, SOLID also provides consulting services to medium and small companies in different regions of the Russian Federation.

For those Russian companies planning to issue their own securities, SOLID's Corporate Finance Division provides experienced consultants to help their management to determine the efficacy and best parameters of share issue, investigate the potential demand for shares considering the current situation, and prepare the base for the issue. We actively assist companies in establishing effective cooperation with professional operators on the stock market and help them to carry out disclosure policies.

SOLID's Corporate Finance Division has a wealth of experience in working with, and fulfilling American Depository Receipt (ADR) programs and interacting with the world's stock exchanges. The corporate clients of the Company may obtain a complete set of operations to bring their securities to the Russian and world equity markets:

• privatisation of companies, creation and support of secondary equity market;
• assessment of enterprise's financial state;
• determination of the expediency and best parameters of share issue;
• preparation of materials required for securities issue (prospectus and other necessary documentation);
• arrangement of the issue of shares and their placement on the international capital market (ADR, 144A Rule);
• information reviews on regular basis;
• raising capital:
  determination of a company's strategic goals and elaboration of a strategic plan for funds attracting;
  assets evaluation;
  search of underwriters and placement of shares among investors;
  transaction structuring.

The main partners involved in the mentioned projects are: Dresdner Klienwort Benson; Price Waterhouse; National Westminster Bank; Cleary, Gottlieb, Steen & Hamilton; Societe General Finance Developpement, and others.

IFC SOLID, together with leading Western companies experienced in working with large Russian issuers, has launched a number of projects to attract investments for medium enterprises of Bashkortostan, Orenburg Region, Tatarstan Republic and other areas. The following variants of joint work are planned in the future:

• portfolio investments;
• purchase of issuer's control stock;
• financial consulting on a permanent basis;
• organising training of Russian specialists at similar Western enterprises;
• attracting strategic investors or strategic partners;
• raising financing on debt markets.

Assets Management

When offering shares of enterprises to their clients, IFC SOLID's analysts focus their efforts on identifying undervalued shares. We identify companies' shares being sold at a given moment with the greatest discount for the potential price that the shares are to reach in the future. Share prices fall for several reasons and it is up to analysts to estimate a 'cheap' share from an 'undervalued' one. Great emphasis is made to recommend shares that offer substantial growth over a 2-4 year period. All clients of SOLID obtain a complete set of expert consultations on how to form long-term investment portfolios.

When forming clients' portfolios, it is important to take into account the parameters of clients' marginal risk and expected profitability, the term and volume of investments, and the required level of diversification. The deals transacted during portfolio management are formalised in a timely fashion and in clear-cut terms as legal documents confirming the clients' ownership of securities.

The investment portfolio manager invests clients' funds into shares of various economic branches, thereby reducing the risk for every kind of purchased shares. SOLID's analysts ensure that by choosing projects for investment in a number of different industries, risks and exposure to clients can be minimised.

Ensuring fixed profitability by combining operations on the market of corporate securities and derivatives. Defining trading strategies that minimise the risks with a preset profit rate.

Profound knowledge of specific advantages and problems of the Russian economy allows SOLID to assess most accurately the potential risks and returns of investments in the rapidly developing securities market of Russia.

Securities Market Monitoring and Research

• analysis of the current situation and prognosis of the medium-term prospects of the securities market development in general and in its different segments;
• preparation of research on economic sectors and companies;
• recommendations on perspective objects for investment;
• information support.

By having access to local sources of information and being well aware of specific national production and accounts presented by enterprises, SOLID's analysts are capable of objectively assessing incoming information and provide well-grounded recommendations to its clients. Research of the market, economic branches and individual enterprises help our clients to be up-to-date on the current opportunities which helps them to make right investment decisions based on expert opinion.

Top management

Sh. Takhautdinov
• Chairman of the Board of Directors
  V. Gorodny
• Deputy Chairmen of the Board of Directors
  V. Semernin
  A. Yagafarov
  A. Alekyan
  V. Gritskikh