Alfa-Bank - Alfa Group

A1TheThe investment policy of A1 is focused on the investment of its ownassets and those assets of its partners and shareholders in thegrowing Russian and CIS markets. А1’s capabilities allow it toefficiently implement all types of projects typical of large directinvestment funds: leveraged buy-outs (LBO); growth strategyfinancing; acquisition of undervalued assets; corporaterestructuring and portfolio company development; strategicinvestor alliances; acquisition of financially distressed companiesand crisis management; conflict resolution and others. A1’s longterminterests are aimed at establishing strong and competitivebusinesses, producing modern and very high quality goods andservices to satisfy Russia’s growing demand, and developingefficient organizational and management systems.I nvestment Activitypotential of A1 is unrivalledamong Russian investmentmarket. A1 has at its disposalconsiderable capital as well asaccess to other significantfinancial resources. At all stagesof a project, A1 maintains a highlevel of control over theinvestment process. The teamattracted by A1 for businessdevelopment is highlyprofessional with extensiveRussian and internationalexperience. Professionals of A1have worked as top managers onmany Alfa Group projects,including Tyumen Oil Company,Alfa-Bank, VimpelCom andMegaFon, Perekrestok andprojects with Russia’s largestmetallurgical and timber plantsand with leading manufacturersof consumer goods.A1’s extensive resources andexpertise allow it to seek andexecute projects with clearpotential and sufficient flexibilityto ensure their successfulaccomplishment. They are basedon winning business models thathave already been tested in Russiaand internationally. A1’s projectsare notable for their sophisticatedstrategy with clear plans forinvestment and businessdevelopment. A1’s investorsactive role in creating value isalways a strong point.Alexander SavinManaging Director of A1“A1's strategy is to become the leaderin direct investments in Russia, byreturn on shareholder capital and byquality of investment process andcorporate governance. Our purpose isto give to the shareholders anopportunity on a long-term basis toinvest in the most attractive projects ofdirect investment in Russia, the CISand other emerging markets.”Alexey KousmichoffChairman of the Board of Directors of A1“A1 fully agrees with the classicstatement of three “p” – “peopleproduct-profit”,that, in the long run, allbusiness operations can be reduced to.We place people first. Our chief priorityis a strong reliable team, involving thebest professionals in the market,efficient team-players who have alreadyproven their ability to implementsuccessful projects. JP Morgan saidthat, “People not assets should be thebase for investments”. In any project,A1 strives for the ultimate in thisconnection with each project startingfrom the selection of a perfectlybalanced and highly professional team.www.a-1.comALFA GROUP / ANNUAL REPORT 2006 / 53