1. HMS Group
JP Morgan Russia Corporate access days
Investor presentation
13-14 March 2012

2. Agenda
WHO WE ARE 3
Operating environment 4
HMS at a Glance 5
Development of Business Model 6
INVESTMENT HIGHLIGHTS 7
Attractive Industry Fundamentals 8
The Leading Provider of Flow Control Solutions 9
Advanced R&D Capabilities 10
Main Shareholders Run the Business 11
Healthy Debt Position 12
Hedging & Risk Management 13
FINANCIAL PERFORMANCE 14
Financial Highlights for 9M 2011 15
Pumps 16
Oil & Gas Equipment 17
EPC 18
EBITDA Development in 9M 2011 19
Capex & Working Capital as of 30 June 2011 20
2011 & 2012 BUSINESS UPDATE & OUTLOOK 21
HMS Group M&A Strategy & Outlook 22
Backlog 23
Selected End-market Prospects for Mid-term 24
Business Update 25
CONTACTS 26
APPENDIX 27
2

3. WHO WE ARE
3

4. HMS at a Glance
Key investment highlights Key financial indicators for 2005-9m’11
23,070
 Growing markets in Russia and the CIS: 20,560
21.4%
 oil & gas
 power generation
16.5%
14,772
14,046
 water 13,399 12.8% 15.3%
12.3%
11.7%
 Leader in flow control solutions on these markets 10.6%
 Best team in Russia: 6,724
 management 4,498 4,398
3,519
 sales 744 830
1,423 1,644 1,890
 research & development 2005 2006 2007 2008 2009 2010 9M 2011
 Resilient financial growth and healthy debt position Revenue, Rub mn EBITDA, Rub mn EBITDA margin, %
Source: Company data
9 months 2011 key financials contribution by business segments
9M’11 total revenue Rub 20,560 mn EBITDA adj. Rub 4,398 mn profit for the period Rub 2,972 mn
Industrial pumps Oil & gas equipment EPC
Revenue Rub 12,136 mn Revenue Rub 3,722 mn Revenue Rub 4,385 mn
EBITDA Rub 3,628 mn EBITDA Rub 220 mn EBITDA Rub 431 mn
New photo
Pump station of Baltic pipeline system, Transneft Oilfield Pump Station 2, Vankor oilfield, Rosneft Oil Pump Station “Tayezhnaya”, Transneft
Notes: Hereinafter “EBITDA” read as “EBITDA adjusted”, “EBITDA margin” read as “EBITDA adjusted margin” and “Net Income” read as “Profit for the period/year” 4
Pumps read as Industrial pumps

5. Operating Environment
Oil production in Russia, history & perspectives HMS revenue by segments, 2010
Greenfield CAGR 11.2%
600 10.8% 2012F-2020F
Oil upstream Oil refining Oil trasportation
9.2% 9.0% 50% 2% 18%
500
7.4%
400
mn tonnes
300
2.4% 2.3% 2.1% 2.2%
200 1.3% 1.4% 1.5%
1.0%
0.2% 0.4% 0.4% 0.4% 0.1% 0.1%
0.0% Water
100 -0.6% 12%
0
2000 2002 2004 2006 2008 2010 2012F 2014F 2016F 2018F 2020F
Others Metal Nuclear Thermal
Total production, 2000-2008 Traditional oil regions, 2009-2020F 8% 1% 1% 8%
Greenfield, 2009-2020F Change in total production, % YoY
Source: REnergyCo, Rosstat Source: Company data, Management accounts
Installed base of HMS Group in Russia Announced investment programs1
Company Investments Time frame
Investments in oil upstream
Gazprom Neft US$ 80 bn by 2020
100%
90% 13% 13% 2% Lukoil US$ 50 bn by 2017
30%
80% 43% Rosneft US$ 125 bn by 2020
70% TNK-BP US$ 45 bn by 2020
60%
Total US$ 300 bn
50% 98%
87% 87% Investments in oil downstream
40%
70% Gazprom Neft US$ 11 bn by 2018
30% 57%
20% Lukoil US$ 20 bn by 2020
10% TNK-BP US$ 3 bn by 2016
0% Total US$ 34 bn
Water well Water injection Thermal power Oil pipeline Nuclear power
pumps pumps (CNS) generation pumps, generation - Investments in oil transportation
pumps Transneft Feed pumps
HMS Group Others Transneft, capex US$ 43 bn by 2017
Transneft, modernization US$ 15 bn by 2017
Total US$ 58 bn by 2017
Investments in nuclear
Rosatom US$ 350 bn by 2030
Source: Company data
Source: Public data, companies’ websites 5
1 Selected companies

6. Development of Business Model
Why integrated solutions ESPO-I pipeline is an example of integrated solutions
Type of project / Standard pumps Integrated solutions
Service & customized pumps
Source Array of small-size Large-scale projects
contracts
Research & development Normal Critical
Technical entry-barriers Average High
Competition type Price R&D and references
Competition level High Limited
Revenue growth potential Limited Unlimited
EBITDA margin 10-15% 25-30%
Revenue downside Limited Limited, nearest 1.5
potential year
Frequency High n/a
1. Trunk pump 8. Joints
Aftermarket demand Average High 2. Motor 9. Friction oil pipelines
3. Coupling 10. Air cooling unit
4. Oil coolers 11. Antifreeze feed pipes for oil coolers
5. Adsorptive dryers 12. Antifreeze feed pipes for motor coolers
6. Air collectors 13. Antifreeze air cooling unit
7. Compressors
Integrated solutions’ revenue contribution
Producers Products / Services
 HMS and other suppliers
 Design, production and testing of pumps
including Siemens
95% 94% 75% 75% 64%
 Design of integrated pumping solution
 Overall project management
 Procurement for supply of engines,
5% 6% 25% 25% 36%  HMS
cooling sleeves, valves and other
equipment
2008 2009 9M 2010 2010 9M 2011  Turn-key commissioning
Revenue from integrated solutions Revenue from standard equpment
Source: Company data
6

7. INVESTMENT HIGHLIGHTS
7

8. Attractive Industry Fundamentals
Mix of growing markets
Russian selected pumps market revenues, Russian energy & utilities infrastructure Russian oil sector investments,
Rub bn investments, Rub bn Rub bn
CAGR 18.0% CAGR 16.2% CAGR 11.8%
2,576
58.1 3,340 Oil refining & petrochemicals
Power generation Municipal water
9.8 540
Oil pipelines
Municipal water 1,011 Thermal power
Nuclear power Oil exploration & extraction
Oil & Gas, surface
810
CAGR 16.1% 30.4 1,320
25.4 1,586 271
1,359
5.2
392 337
12.2 1,226
610
7.7 17.9 712
1.1 743
4.2 8.0 357
2.4
2002 2010 2015E 2010 2015E 2010 2015E
CAGR 2002-10 ‘10-15E CAGR 2010-15E CAGR 2010-15E
Power generation 21.4% 13.5% Municipal water 17.1% Oil refining & petrochemicals 12.2%
Municipal water 14.3% 20.0% Thermal power 17.3% Oil pipelines 15.7%
Oil & Gas, surface 16.2% 17.5% Nuclear power 13.0% Oil exploration & extraction 9.5%
Source: Frost & Sullivan 2010
8

9. The Leading Provider of Flow Control Solutions
Leading market share on key markets…
Oil industry1 Water utilities2 Power generation3
Market growth +24% Market growth +32% Market growth +36%
575,7 135,2
81,8
465,7
102,7
243.9 61.4 60,2
+41% 32.9
173.1 +43%
42.9 +15%
28.6
292.6 331.8 73.8 48.9
59.8
31.6
2009 2010 2009 2010 2009 2010
HMS Group revenue, US$ mln HMS Group revenue, US$ mln HMS Group revenue, US$ mln
Other Other Other
Key conclusions
 HMS Group has leading positions in all key markets of presence with ~ 40% share on pumps market.
 HMS Group managed to expand its market share in the most key segments of business
 In the oil industry and water utilities the company’s share outperformed overall market growth
 Decrease in power generation pumps is attributable to the nuclear industry’s specifics expressed in long-term only
contracts. Revenue from signed in 2009 contracts will be recognized during 2011/2012
Notes:
1 includes pumps and oil and gas equipment
2,3 includes pumps 9

10. Advanced R&D Capabilities
Pumps Project design
 Very strong in-house R&D and significant experience in pump  Giprotyumenneftegaz (GTNG) is the leading Russian R&D
development centre specializing in design of on-surface (as opposed to
 Unique testing facility (one of the largest in the former Soviet sub-surface) facilities for oil and gas fields, e.g. it
Union and globally) for all types of large specialized pumps designed over 200 fields in Russia including many of the
for nuclear power plants and oil transportation largest (e.g. Samotlor, Mamontovskoye, Priobskoye)
 Deep integration with clients’ R&D  Significant R&D resources for design of water utilities
projects (RVKP)
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,
Pre-tender pricing and
Design and Delivery and
project contract
production installation After-market
preparation negotiation
services
1–24 months 1 month
up to 24 months 1–3
months
10

11. Main Shareholders Run the Business
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 Managing Director (CEO) First Deputy CEO (CFO)
Shareholder Shareholder Shareholder shareholders
In company since 1993 In company since 1993 In company since 1993
 Long-term commitment to the business from
shareholders
Shareholders Structure
Shares are held through HMS Technologies
Vladimir Lukyanenko Nikolay Yamburenko Yury Skrynnik
Non-executive Director Head of Industrial Pumps Director for Strategic Marketing German
Shareholder Shareholder Shareholder Tsoy
In company since 2005 In company since 2003 In company since 2005
Managers 17%
22%
Vladimir
Lukyanenko
24%
Free-float
37%
Philippe Delpal Andreas Petrou Gary Yamamoto
Independent Non-executive Independent
Chairman Audit Chairman Remuneration Source: Company data as of December 6, 2011
Committee Committee
 Founders 11

12. Healthy Debt Position
Moderate leverage… …with comfortable repayment schedule…
Including
Rub 3 bn bonds
issue
4,885
4,539
4,297
3,455
2.4
2.0
1.2
0.9
2008 2009 2010 9M 2011
Net Debt, Rub mn Net Debt to EBITDA LTM
Source: Company data Source: Company data as of 01 March, 2012
…and low currency and maturity risks Comments
Short-term debt Long-term debt  Low leveraged business profile with Net Debt to
S&P corporate EBITDA LTM ratio of only 0.9 with internal
15.9% 84.1%
credit rating: covenant of 2.5
BB-
Outlook:  Easy access to additional liquidity with more than
Stable
Rub 1.7 bn of undrawn credit facilities
Rub Euro Others
 Steady debt repayment schedule with negligible
96.4% 1.7% 2.0% currency risk and prudent maturity structure
 More than 96% of Rub-nominated debt with fixed
interest rate
Fixed rate Floating rate
 Interest rate of 8.9%, down from 11% a year ago,
98.3% 1.7% while interest coverage ratio1 of 15.4
Source: Company data as of 01 March, 2012
1 EBIT LTM / Interest expenses as of September 30
12

13. Hedging & Risk Management
Risk type Coverage
 Raw materials price fluctuations Sale price adjustments for standard products in line
with raw materials costs changes
Advances received under the long-term projects are
transferred to the suppliers in order to fix raw materials
price for the whole project life-cycle
 Delay of projects execution Day-to-day monitoring and control over of
projects implementation
 Currency risks Revenue, expenses and debt are nominated in Rubles
 Interest risk 99% of debt with fixed interest rate
 Short-term oil price drop Limited impact on business based on standard products and
solutions
High opportunity costs for customers with complicated long-
term projects:
- HMS solutions are mission critical for the infrastructure
projects
- Only 1-2% of total project’s CAPEX relates to pumps
- HMS solutions are usually implemented on the final stages
of project execution
 Long-term oil price decline – influence on Low risk due to limited competition and large market share,
margin and also because of commodities price correlation (steel
and oil)
– Long-term oil price decline – fallen revenues Not covered
13

14. FINANCIAL PERFORMANCE
14

15. HMS Group Financial Highlights
Financial highlights Revenue performance
3Q’11 2Q’11 chg, QoQ Rub, mn 9M’11 9M’10 chg, YoY
6,703 6,806 -1.5% Revenue 20,560 16,158 +27.2%
2,056 2,221 -7.4% Gross profit 6,349 3,781 +67.9%
1,265 1,545 -18.1% EBITDA 1 4,398 2,251 +95.4%
1,169 1,364 -14.3% Operating profit 3,912 1,988 +96.8%
890 1,091 -18.5% Net income (loss) 1 2,972 1,052 +182.6% 3,835 5,314 7,009 6,912 7,051 6,806 6,703
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Revenue, Rub mn Linear ( Revenue, Rub mn)
5,689 4,599 +23.7% Total debt 5,689 5,088 +11.8% Source: Company data
4,885 4,105 +19.2% Net debt 4,885 3,189 +53.2%
EBITDA performance
0.9 0.7 Net debt to EBITDA LTM 0.9 1.2
22.5% 22.7%
18.4% 18.9%
30.7% 32.6% -195bps Gross margin 30.9% 23.4% +748bps 15.8%
13.4%
18.9% 22.7% -383bps EBITDA margin 1 21.4% 13.9% +746bps 11.2%
17.4% 20.0% -260bps Operating margin 19.0% 12.3% +672bps
13.3% 16.0% -276bps Net income margin 14.5% 6.5% +795bps
431 709 1,111 1,268 1,588 1,545 1,265
ROCE 2 38.6% 28.0% +1,006bps 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
EBITDA, Rub mn EBITDA margin
Source: Company data
1 Hereinafter, read EBITDA as EBITDA adjusted, Net income as Profit for the period / year, EBITDA margin as EBITDA adjusted Source: Company data
margin
2 EBIT LTM / average capital employed 15

16. Pumps
Pumps financial highlights, Rub mn
 9M 2011 vs. 9M 2010  3Q 2011 vs. 3Q 2010  3Q 2011 vs. 2Q 2011
revenue revenue 4,090 revenue
12,136 +60% 3,942 -8% 31.5% -12%
29.9% 3,619
29.1%
29.1%
3,619
7,598
19.8%
20.2%
ebitda ebitda 1,289 ebitda
3,628
+142% 1,054 +32% 1,054 -18%
796
1,502
9M 2010 9M 2011 3Q 2010 3Q 2011 2Q 2011 3Q 2011
Revenue Pumps, Rub mn Revenue Pumps, Rub mn Revenue Pumps, Rub mn
EBITDA Pumps, Rub mn EBITDA Pumps, Rub mn EBITDA Pumps, Rub mn
EBITDA margin Pumps, % EBITDA margin Pumps, % EBITDA margin Pumps, %
Source: Company data
Pumps:
■ Execution of the project in the oil transportation segment as well as delivery of standard pumps resulted in high
EBITDA and EBITDA margin growth, YoY
■ Revenue from pumps excluding integrated solutions grew by 5.5% YoY with EBITDA margin of 18.7% due to growth
of demand and effective cost control
■ EBITDA margin is lower in 3Q 2011 vs. 2Q 2011 due to unusual high 22.4% EBITDA margin in 2Q 2011 for standard
pumps, resulted from signing of a good number of lucrative contracts
16

17. Oil & Gas Equipment
Oil & gas equipment financial highlights, Rub mn
 9M 2011 vs. 9M 2010  3Q 2011 vs. 3Q 2010  3Q 2011 vs. 2Q 2011
4,033
revenue revenue revenue
1,410 1,402 1,402
-8% -1% +20%
3,722
1,172
10.5%
ebitda ebitda 6.7% ebitda
-48% 9.7% -32% n/a
5.9% 6.7%
422 137
220 93 93
-1.4%
-16
9M 2010 9M 2011 3Q 2010 3Q 2011 2Q 2011 3Q 2011
Revenue OG equipment, Rub mn Revenue OG equipment, Rub mn Revenue OG equipment, Rub mn
EBITDA OG equipment, Rub mn EBITDA OG equipment, Rub mn EBITDA OG equipment, Rub mn
EBITDA margin OG equipment, % EBITDA margin OG equipment, % EBITDA margin OG equipment, %
Source: Company data
Oil & gas equipment:
■ Absence of orders for integrated solutions in 9 months of 2011 affected revenue and EBITDA margin performance
■ Situation is expected to brighten in 4Q 2011 – beginning of 2012 due to participation in current tenders for new
infrastructure projects in Eastern Siberia as well as entrance into new market segments
■ 3Q 2011 revenues up QoQ due to recently acquired Sibneftemash
■ EBITDA margin grew to 6.7% in 3Q 2011 compared to the previous quarter also thanks to Sibneftemash’s EBITDA
margin of more than 20%
17

18. EPC
EPC financial highlights, Rub mn
 9M 2011 vs. 9M 2010  3Q 2011 vs. 3Q 2010  3Q 2011 vs. 2Q 2011
revenue revenue revenue
4,392 4,385 1,587 1,587
-0% 1,535 +3% +18%
1,347
ebitda ebitda 15.3% ebitda
9.8% +64% -42% -63%
6.0%
8.5% 206
431 131 4.8% 4.8%
262 76 76
9M 2010 9M 2011 3Q 2010 3Q 2011 2Q 2011 3Q 2011
Revenue EPC, Rub mn Revenue EPC, Rub mn Revenue EPC, Rub mn
EBITDA EPC, Rub mn EBITDA EPC, Rub mn EBITDA EPC, Rub mn
EBITDA margin EPC, % EBITDA margin EPC, % EBITDA margin EPC, %
Source: Company data
EPC:
■ Revenue remained stable at Rub 4,385 mn for 9M 2011, compared to Rub 4,392 mn in 9M 2010
■ HMS’ policy of participation in the construction projects with higher than average profitability led to slower revenue growth
■ EBITDA grew by 64.5% YoY with average EBITDA margin of 9.8%:
Construction sub-segment’s EBITDA margin grew to 3.9% in 9M 2011 though revenue contracted
–
Project & design sub-segment of EPC stood at 19.4% EBITDA margin for 9M 2011 while revenue amounted to
–
Rub 1,675 mn
■ EBITDA margin dropped to 4.8% in 3Q 2011 compared to 2Q 2011 due to temporary change of contracts mix
■ Signing of a large contract in August 2011 hasn’t substantially influenced construction sub-segment’s revenue for 3Q 2011
18

19. EBITDA Development in 9M 2011
40,000
20,000
EBITDA key drivers, % of revenue
0
9M 2010 9M 2011
operating expenses 14.2 bn vs. 16.6 bn in 9M’11 | +18% yoy
revenue in 9M’11 | +27% yoy
ebitda in 9M’11 | +95% yoy
69%
77%
12% 2%
11% 2%
12% 19% 14% 21%
Revenue Revenue Cost of sales of sales
Cost SG&A expenses & others & others
SG&A expenses Operating profit Depreciation & amortisation
Operating profit Depreciation & amortisationEBITDA EBITDA
w other deductionsdeductions
w other
Source: Company data
Net income components, Rub mn Cost of sales components, Rub mn
3,912 63.5% 60.5%
2,972
1,988
20.8%
1,052 15.1%
12.1% 11.8% 9.4% 6.9%
46 13 9 67
Materials Labour Cost of goods sold Other costs
(326) (323)
(668) (693)
Operating Finance Finance Share of Income tax Net income
profit income costs results of expense 9M 2010 9M 2011
associates
9M 2010 9M 2011
Source: Company data Source: Company data
19

20. CAPEX & Working Capital as of 30 Sept 2011
Cash flow performance in 9M’11, Rub mn Capital expenditures in 9M’11 vs. 9M’10
745
Bobruisk acquisition
4,216 (272) Rub mn 2.2x
(5,317)
1.8x
+ + 456
804
351 346
+
= (1,815) IPO proceeds 249
(715) 3,373 Rub mn
4,244
WC changes
(4,825) Rub mn Sibneftemash acquisition
(1,280) Rub mn (1,992)
Cash as of Operating WC Income tax Net cash Net cash Net cash Cash as of 9M 2010 9M 2011
Jan 1, 2011 cash flow changes & interest used in used in from Jul 1, 2011 Organic capex, Rub mn Depreciation, Rub mn
before WC &others paid operating investing financing Capex to Deprecation ratio, x
changes activities activities activities
Source: Company data Source: Company data
Comments Working capital as of 30 Sept 2011, Rub mn
 HMS Group generated Rub 4,216 mn of operating cash flow before
28%
changes in working capital 28%
 Substantial working capital increase in 9M 2011 led to the negative
operating cash-flow due to ongoing execution of the large 6,833 7,576
infrastructure oil transportation contract with significant advance 23%
payments received last year
 Working capital is expected to fit target range of 10-15% of revenue
with positive operating cash flow in 9M 2012 as a result of: 6%
6% 13%
 Next payment of more than Rub 2 bn under the contract
 Prepayments on contracts signed in 2H 2011, and contracts in
process of signing 791 (1,355)
9M 2010 9M 2011
9M 2010
1,307 9M 2011
 Investing cash flow consisted of: Working capital to Revenue LTM
- Working capital to Revenue LTM
 Organic capex of Rub 745 mn, in line with target level of Working capital Inventories Receivables Payables Working capital
1.5-2.5 times depreciation 9M 2010 change
1H 2010
change change
1H 2011
9M 2011
 Acquisition of Sibneftemash for Rub 1,280 mn, and Bobruisk
WC to Revenue LTM
for Rub 272 mn
Source: Company data 20

21. 2011 & 2012 BUSINESS UPDATE & OUTLOOK
21

22. HMS Group M&A Strategy & Outcome
EV/EBITDA of recently acquired companies What does HMS Group buy
 Pumps, compressors, oil & gas equipment, project & design
16.5
 Russia and the CIS
 Revenue within $ 20-100 mn
 Low-leveraged companies
10.4  Friendly management
9.3
7.5
Acquisitions rationale:
5.6
 Broadening of HMS Group’s product portfolio with complementary
4.1
equipment
 Potential growth of revenues and EBITDA margin of acquired
companies:
– Sales power and R&D capability of HMS Group
GTNG Sibneftemash Bobruisk
– Well-known brands and/or technical equipment base of
EV/EBITDA Acquisition Year EV/EBITDA next year after Acquisition Year acquired companies
Source: Company data  Potential growth of revenues and EBITDA margin of the whole
Group through integrated solutions
CAGR of selected subsidiaries’ revenue & EBITDA: from M&A to 2012 (RAS) The Acquisition of
Dimitrovgradkhimmash (DGHM)
PUMPS OIL & GAS CONSTRUCTION PROJECT & in Feb’12
EQUIPMENT DESIGN
 Key financials, RAS:
37.2% 35.1% 37.5% 37.2%
2011E Revenue of Rub 1.6 bn
24.1% 2011E EBITDA Rub 387 mn
18.5% 18.2% 18.5% 2011E EBITDA margin 24.5%
11.2%
 Deal details:
n/a
Rub 206 mn for next 11% of the
-0.8% company (followed by several
-9.7%
previous transactions resulted in
Rub 543 mn for 51%)
HMS Pumps NEM HMS Neftemash TGS SKMN GTNG
M&A in 2003 M&A in 2005 M&A in 2004 M&A in 2006 M&A in 2007 M&A in 2010 2.2x EV/EBITDA 2011E (9.8x
EV/EBITDA in 2006)
CAGR Revenue 2011 CAGR EBITDA 2011
Source: Company data
HMS not only grew through acquisitions but managed to achieve significant organic growth
22

23. Backlog
Backlog structure performance
Revenue recognition depends on production period for various type of equipment and the
1 nature of the project
There is no direct correlation between decline in backlog and potential decline in revenues
2 because of backlog’s diversification and different production periods of equipment as well as
projects’ nature
Production period
Rub mn 9M 2011 6M 2011 chg, QoQ 9M 2010 chg, YoY
/Annual revenue
Products & services on demand, short production cycle about Rub 4 bn
Core equipment & services 7,364 7,323 +1% 7,622 (3%) 2-8 months
Construction component of EPC 1,595 1,492 +7% 2,847 (44%) 6-18 months
Oil transportation pumps 3,138 4,914 (36%) 10,101 (69%) 12-36 months
ESPO pumps 2,306 4,011 (43%) 10,101 (77%) 12-36 months
Non-ESPO pumps 832 903 (8%) 0 n/a 6-12 months
Total backlog 12,097 13,728 (12%) 20,570 (41%)
Source: Company data, Management accounts
23

24. Order intake development
Overview Total order intake
 Although overall order intake in 2011 contracted by 21% as compared with the
previous year and amounted to Rub 23.2 bn… 29 318
 The Group enjoyed 37% YoY order intake growth, net of a large ESPO-related
contract amounted to Rub 12.4 bn that had been signed in the first half of 12 404
2010
 Order intake in industrial pumps business segment down by 67% YoY due to
a high-base effect resulted from the massive ESPO-related contract obtained in
2010
16 914 23 222
 Order intake in the oil and gas equipment segment demonstrated impressive
growth of 101% YoY and amounted to Rub 7,832 mn versus Rub 3,897 mn in 2010 2011
the beginning of 2011. Проект ВСТО, млн. Rub mn
ESPO project, руб.
 Order intake in the EPC segment rose by 93% from Rub 4,003 mn to 7,731 mn Полученные заказы, искл. ESPO,млн. руб.
Order intake, net of ВСТО, Rub mn
mainly due to significant contracts signed by the Group in the second half of
Source: Company data
2011:
– orders in the construction sub-segment grew by 108% from Rub 2,634
mn to Rub 5,478 mn
– project and design orders up 65% from Rub 1,368 mn to Rub 2,253 mn.
Industrial pumps Oil and gas equipment EPC
7 731
19 780
4 003
12,404
5 533
2 637
7,376 6,597 3 897 7 832 1 366 2 198
2010 2011 2010 2011 2010 2011
ВСТО, млн. руб. Rub mn
ESPO project, Oil and gas equipment, Rub mn
Полученные заказы на нефтегазовое оборудование, млн. руб. Полученные заказы на строительство, Rub руб.
Orders for construction works, млн. mn
Полученные pumpsна промышленные насосы, млн. руб.
Industrial заказы excluding ESPO, Rub mn Orders for project and design, Rub mn
Полученные заказы на проектирование и дизайн, млн. руб.
Source: Company data
24

25. 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 $ 2.6 bn next stage by 2014 Min capex Rub 480 bn HMS won a number of tenders
Yurubcheno-Tokhomsk oilfield Start of oil production in 2013. Oil reserves & resources 513mt by 2013 pick production 10mtpa
Komsomolskoe, Priobskoe oilfields Achievement of 95% level of associated gas utilization HMS participated in previous stages
Lukoil & Bashneft JV
JV. Project development stage. Reserves 141 mt. Start of HMS has good references for previous
Trebs and Titov fields by 2013 Capex c.$ 5.9 bn
production is expected in 2013. Max capacity 6 mtpa projects
Transneft
OPS to be constructed to deliver oil to Khabarovsk and
ESPO expansion 9 OPS by 2015 HMS participated in previous stages
Komsomolsk refineries
Oil transportation from YANAO and Northern Krasnoyarsk region
Zapolyarye – Pur-pe pipeline to ESPO pipeline
4 OPS by 2016 Capex Rub 120 bn HMS participates in a project design
ESPO expansion OPS to be constructed to deliver oil to Primorsk refinery 4 OPS by 2017 HMS participated in previous stages
Pur-pe – Samotlor expansion Construction of 2 OPS 2 OPS by 2017 Capex Rub 53 bn HMS participated in previous stages
Yurubcheno-Takhomskoe-Taishet Oil transportation from Yurubcheno-Tokhomsk and Kuyumbinsk Investment decision by
Capex Rub 63 bn HMS participated in previous stages
pipeline oilfields to ESPO-1. Length ~600 km. Capacity ~18mtpa 2011-end
TNK-BP
Giant oilfield in YANAO with specific oil. Project production 20
Russkoe oilfield Capex $ 4.5 bn HMS participates in a project design
mtpa
Samotlor Further development of an active oilfield in Nizhnevartovsk. by 2014 Capex $ 4.6 bn HMS participated in previous stages
Uvat 21 oilfields in Tyumen region HMS participated in previous stages
East- and Novo- Urengoy gas &
 condensate fields
Planned production for 2011 is 3.2bcm, up 17% in 2010 HMS participates in a project design
Oilfield located in the Eastern Siberia, Irkutsk region. Development Peak production by
Verkhnechonsk oilfield Additional $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
Kuyumbinskoe oilfield 50/50 w TNK-BP thru Slavneft. Reserves C1 65 mt, C2 151 mt
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
Iraq
Sakha region. Further development. Total reserves ~130 mt Capex Rub 15-30 bn
Rumaila brownfield Consortium headed by BP Capex $ 15 bn HMS submitted technical survey
Az Zubair Consortium headed by Eni Capex $ 20 bn HMS participates in a tender
Municipal water
Central Asia Irrigation stations for Uzbekistan and Turkmenia HMS has good references
Nuclear
Rosatom Pumps for 5 blocks. Tender to be held at 2011-end –2012-beg By 2014 Tenders Rub 1.5 bn HMS has good references
Source: Public information, Company data as of December 6, 2011  Contracts signed 25

26. Business Update
Selected contracts and events
Financial and Operational highlights up to date
Core events
 First TURNKEY project on Srednebotuobinskoe oil & gas condensate field, Rub 2.6 bn
 Development of the second stage of the East-Siberian oilfield totaled Rub 2.7 bn
 UNIQUE testing facility was put into operation to increase R&D capacities
 First large contract for AFTERMARKET services on an East-Siberian oil and gas field, Rub 480 mn
Large contracts & significant events
 Contract worth more than Rub 1 bn for construction of well clusters and their support infrastructure facilities on a gas field in
Western Siberia (2H 2011)
 Contract to provide engineering services on a gas field in Eastern Siberia, Rub 1.27 bn (2H 2011)
 Contract for production of pumps for Rostov and Baltic nuclear stations of Rub 613 mn
 Contract for delivery of modular equipment for Surgutneftegaz of Rub 668 mn
 Contract for provision of replacement and overhaul services for Transneft, Rub 186 mn
Permanent inflow of standard contracts In 3Q 2011 HMS Group sold products
 Contract for production of pumping equipment for Norilsk Nickel and services for Rub 3,554 mn to
 Contract for production of oil and gas equipment for Surgutneftegaz and Rosneft 3,426 clients (excluding three largest
 Contract for production of modular equipment for Vingapur oil and gas field clients) with average revenue per client
 Contract for delivery of group measuring units to Gazprom Neft of around Rub 1 mn
Source: Company data 26

27. Contacts and HMS Group Key Details
Investor Relations Company address:
Phone +7 (495) 730-66-01 7 Chayanova Str.
ir@hms.ru Moscow 125047
http://grouphms.com/shareholders_and_investors/ Russia
Twitter HMSGroup and HMSGroup_Rus
Sergey Klinkov, Head of Investor Relations
klinkov@hms.ru
Inna Kelekhsaeva, Deputy Head of Investor Relations
kelekhsaeva@hms.ru
HMS Hydraulic Machines & Systems Group Plc is listed on the London Stock Exchange
Identifier Number Number of shares outstanding
ISIN US40425X2099 117,163,427
Ticker HMSG
Bloomberg HMSG LI
Reuters HMSGq.L
Credit Rating
Standard & Poor’s BB- (Outlook stable) affirmed on 29 November, 2011
27

28. APPENDIX
28

29. HMS Group 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
29

30. HMS Group Positioning
From pumps to integrated solutions based on excellent R&D base
1993–2002 Pump Trading
Pump Design and
2003 Pump Trading Manufacturing
2004–2006 Pump Trading Pump Design and Modular Equipment Design
Manufacturing and Manufacturing
2007–2008 Pump Trading Pump Design and Modular Equipment Design Construction
Manufacturing and Manufacturing
2009–Today Pump Trading Pump Design and Modular Equipment Design Integrated Solutions
Manufacturing and Manufacturing
The sole domestic engineering company in Russia
Eurasia Dresser Baker
Industry HMS Integra Weir Flowserve Technip Schlumberger
Drilling Rand Hughes
Power generation √ √ √
Pumps
Oil and Gas √ √ √
Water √ √ √
Above
Oil and gas equipment √ √ √ √
ME*
ground
Repair √ √ √
Oil and Gas √ √ √ √
EPC
Power generation √
Water √
Seismic research √ √ √ √
Service
Under
Well service √ √ √ √
ground
Drilling √ √ √ √
Oil production increase √ √ √ √
Russian Foreign
Note: * Modular Equipment (Oil & gas equipment)
30

31. Financial Performance for 2010
Comments Revenue, 2009 vs 2010 EBITDA, 2009 vs 2010
 Total revenue up 56% yoy to Rub 15.3%
23,070 mn
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
31

32. EBITDA Development in 2010
Comments Cost of sales components comparison, 2009 vs 2010
 EBITDA increased by 86% yoy to Rub 3,519 mn due to:
 Strong revenue growth in all business units 60%
55%
 Focus on innovative high-margin contracts
 Effective cost control
 Consolidation of GTNG
16% 16% 15% 13%
 EBITDA organic growth of 72% yoy 5% 5%
4% 3% 2% 2% 2% 1%
 EBITDA margin increased to 15.3%
Materials Labour Cost of Construction D&A Utilities Others
 SG&A grew less than revenue due to economy of scale goods sold works by
and cost optimization strategy sub-
contractors 2009 2010
Source: Company data
50,000
EBITDA key 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 32

33. Revenue & EBITDA Contribution by Segments
Highlights by core segments, 2009 vs 2010 Comments
 Pumps 22.1% 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 33