Important Disclosures

The information and opinions contained within VTB Capital Research are prepared by JSC VTB Capital. As used in this disclosure section, "VTB Capital" includes JSC VTB Capital, VTB Capital Plc and their affiliates as necessary.

Issuer Specific Disclosures

For important disclosures regarding companies that are the subject of reports listed on this website, please see the VTB Capital Research Issuer Specific Disclosures, or contact your research representative.

Analysts Certification

The research analysts whose names appear on research reports prepared by VTB Capital certify that: (i) all of the views expressed in the research report accurately reflect their personal views about the subject security or issuer, and (ii) no part of the research analysts’ compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analysts in research reports that are prepared by VTB Capital.

The research analysts whose names appears on research reports prepared by VTB Capital received compensation that is based upon various factors including VTB Capital’s total revenues, a portion of which are generated by VTB Capital’s investment banking activities.

Investment Ratings

VTB Capital uses a tiered recommendation system for stocks under coverage: Buy, Hold, or Sell.

BUY: 12-month target price exceeds the market price by 20% or more (as of the publishing date)

HOLD: 12-month target price is no less than the market price but does not exceed it by more than 20% (as of the publishing date)

SELL: 12-month target price is below the market price (as of the publishing date)

UNDER REVIEW: In the event that significant information about an issuer is due to be announced or is expected to become public in the foreseeable future, an analyst might place the relevant issuer Under Review. This means that the analyst is reviewing, but not currently altering, the previously published rating while waiting for the impending information.

Notwithstanding the above, VTB Capital may from time to time issue recommendations predicated on a different time horizion (such as short term trading recommendations) to that which is described above. Where VTB Capital issues such a recommendation, the use of an alternative time horizon for the purpose of formulating such recommendation, may result in differences between such recommendation and any investment rating published in accordance with the recommendation system described above.

The below table details the distribution of VTB Capital’s Investment Ratings on the basis of the three-tier recommendation system described above.

Investment Rating Distribution
Hold 5538%
Sell 42 29%
Restricted 0 0%
Not Rated 0 0%
Under Review 13 9%
Investment Rating Distribution for IB clients
Buy9 43%
Hold5 24%
Sell6 29%
Not Rated0 0%
Under Review 1 5%

As of 10 April 2016, the VTB Capital Ratings Distribution table accounts for all the instruments covered, rather than the companies covered. In instances where we provide a recommendation for more than one instrument issued by a company, these are now counted separately. This accounts for the increase in the number of ratings from the count as of 29 February 2016. A list of those companies for which we cover more than one instrument can be found at DoubleRecPLC20160531.pdf.

Equity Research Historical Ratings

Please search for the company`s disclosure by the instrument name or ticker. Then select the instrument to see its disclosure information.

Price Targets

VTB Capital Research employs a Discounted Cash Flow (DCF) model as its principal valuation framework for estimating the fair and target prices of stocks. The central metric is fair current Enterprise Value (EV), which is obtained on the basis of Free Cash Flow to Firm (FCFF) discounted at a constant company-specific Weighted Average Cost of Capital (WACC).

Conflicts Management Arrangements

VTB Capital Research has been published in accordance with our conflict management arrangements.

VTB Capital

VTB Capital and/or any of its worldwide affiliates which operate outside of the USA (collectively, the “VTB Group”) do and seek to do business with companies covered in their research reports. Thus, investors should be aware that the VTB Group may have a conflict of interest that could affect the objectivity of this research report.

Investors should consider this research report as only a single factor in making their investment decision. This research report is for information purposes only and does not constitute nor is it intended as an offer or solicitation for the purchase or sale of securities or other financial instruments. Neither the information contained in this research report nor any future information made available with the subject matter contained herein will form the basis of any contract. Information and opinions contained herein have been compiled or arrived at by VTB Group from publicly available information and sources that VTB Group believes to be reliable. Whilst every care has been taken in preparing this research report, no research analyst, director, officer, employee, agent or adviser of any member of the VTB Group gives or makes any representation, warranty or undertaking, whether express or implied, and accepts no responsibility or liability as to the reliability, accuracy or completeness of the information set out in this research report. Any responsibility or liability for any information contained herein is expressly disclaimed. All information contained herein is subject to change at any time without notice. No member of the VTB Group has an obligation to update, modify or amend this research report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn. Furthermore, past performance is not indicative of future results.

The investments and strategies discussed herein may not be suitable for all investors or any particular class of investor. Investors should make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives when investing. Investors should consult their independent advisors if they have any doubts as to the applicability to their business or investment objectives of the information and the strategies discussed herein. This research report is being furnished to certain persons as permitted by applicable law, and accordingly may not be reproduced or circulated to any other person without the prior written consent of a member of the VTB Group. This research report may not be relied upon by any retail customers or persons to whom this research report may not be provided by law. Unauthorised use or disclosure of this research report is strictly prohibited. Members of the VTB Group and/or their respective principals, directors, officers and employees (including, but not limited to, persons involved with the preparation or issuance of this research report) may own, have positions or effect transactions in the securities or financial instruments referred to herein or in the investments of any issuers discussed herein, may engage in securities transactions in a manner inconsistent with the research contained in this research report and with respect to securities or financial instruments covered by this research report, may sell to or buy from customers on a principal basis and may serve or act as director, placement agent, advisor or lender, or make a market in, or may have been a manager or a co-manager of the most recent public offering in respect of any investments or issuers of such securities or financial instruments referenced in this research report or may perform any other investment banking or other services for, or solicit investment banking or other business from, any company mentioned in this research report. Disclosures of conflicts of interest, if any, are found at the end of the text of this research report. Members of the VTB Group may have acted upon or used the information or conclusions contained in this research report, or the research or analysis on which they are based, before publication of this research report. Investing in the Russian Federation, its markets and in Russian securities and financial instruments involves a high degree of risk, and many persons, physical and legal, may be restricted from dealing in the securities markets of the Russian Federation. Investors should perform their own due diligence before investing. It is particularly important to note that securities and financial instruments denominated in foreign currencies and ADRs and other investments discussed herein are subject to exchange rate fluctuations that may adversely affect the value of the investment. The value of investments may fall as well as rise and investors may not get back the amount invested. Prices and availability of securities, financial instruments or investments are also subject to change without notice. The views and opinions expressed in this research report accurately reflect the personal views of the authors of this research report about the subject investments, securities and financial instruments and issuers and do not necessarily reflect the views of any member of the VTB Group. No part of the compensation of the authors of this research report was, is or will be directly or indirectly related to the specific recommendations or views contained in the research report. By accepting this research report, you agree to be bound by the foregoing limitations. This material is not intended for the use of private investors.

In the United Kingdom this report is approved and/or communicated by VTB Capital plc London, a member of the London Stock Exchange and authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. This report is intended for those persons that would be classified as Eligible Counterparties or Professional Clients under the Financial Conduct Authority’s Conduct of Business rules.”

In connection with distribution of this material in the United States by any VTB Group affiliate other than VTB Capital Inc: VTB Group and/or its affiliates is NOT a member of SIPC or FINRA and is not registered with the US Securities and Exchange Commission. This material is intended solely for persons who meet the definition of Major US Institutional Investor under Rule 15a-6. This material should not be construed as a solicitation or recommendation to use VTB Capital to effect transactions in any security mentioned herein.
In connection with distribution of this material in the United States via VTB Capital Inc. VTB Capital Inc., a US registered broker-dealer, accepts responsibility for this Investment Research and its dissemination in the United States. This Investment Research is intended for distribution in the United States only to certain US institutional investors. US clients wishing to effect transactions in any Designated Investment discussed should do so through a qualified salesperson of VTB Capital Inc. VTB Capital Inc., is a broker-dealer registered with the SEC and is a FINRA member firm. Nothing herein excludes or restricts any duty or liability to a customer that VTB Capital Inc. has under any applicable law. Analyst(s) preparing this report are resident outside the United States and are not associated persons or employees of any US regulated broker-dealer. Therefore the analyst(s) may not be subject to FINRA rules and restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. For important disclosures regarding companies that are the subject of this report, please see the VTB Capital Research Website: http://research.vtbcapital.com/ServicePages/files/VTB+Capital+Research+Issuer+Specific+Disclosures20160531.pdf, or contact your research representative.

This research report is distributed in Singapore by VTB Capital plc to accredited investors, expert investors or institutional investors only (as defined in the applicable Singapore laws and regulations and is not intended to be distributed directly or indirectly to any other class of person). Recipients of this report in Singapore are to contact VTB Capital plc, Singapore branch in respect of any matters arising from, or in connection with, this report. VTB Capital plc, Singapore branch is regulated by the Monetary Authority of Singapore.

This research report is distributed in Dubai by VTB Capital Plc Dubai Branch to Professional Clients only, as defined by the DFSA, and is not intended to be distributed directly or indirectly to any other type or category of client. Recipients of this report in Dubai are to contact VTB Capital Plc, Dubai Branch in respect of any matters arising from, or in connection with, this report. VTB Capital Plc Dubai Branch is regulated by DFSA.

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