1. Demo-VersionRussia: Paper MarketAnalysis and Forecast to 2017November 2011Marketing ResearchBarykovsky lane 4, building 2, office 201 e-mail: info@indexbox.ru www.indexbox.ruMoscow, 119034Phone number: +7 495 988 96 06

2. Market Research Russia: Paper Market. November 2011 (Demo-version)Brief OverviewThe report on the Russian paper market contains: Analysis and forecast of market dynamics; Structure of consumption by region; Analysis of domestic production, market shares of the main market players; Analysis of exports and imports; Analysis of factors, influencing the development of the market; Analysis of end-uses; Assessment and forecast of market development; Financial and economic profiles of the leading companies in the industry.Methodology: Expert interviews with top managers of the largest players on the market; Analysis of information, received from the main market participants; An analysis of statistical information: o Federal Service of State Statistics (Rosstat); o The Federal Customs Service (FTS); o The Ministry of Economic Development; o The Federal Tax Service; o Industry associations.The report will allow you to: 1. Identify key indicators of the market, build your own business forecasts, based on market data; 2. Evaluate the growth potential and threats in the market.Key figures presented in the report on the Russian paper market: Volumes of production, exports and imports; Indicators of market development; Consumption.The report contains the consensus market forecast based on the average value of theforecasts of market participants. As market experts are considered: manufacturers,importers, wholesale distributors, high-volume consumers, professional associations andunions, and trade publications. The experts, participating in the survey, are provided withspecial conditions on the purchase of the reports.Page 2 from 19IndexBox Marketing 2012 www.indexbox.ru 3. Market Research Russia: Paper Market. November 2011 (Demo-version)Why People Choose Us We have been professionals in marketing research for over 9 years, and have completed over 1000 industry studies which are updated on a regular basis. We collect data via expert interviews with market participants. Industry experts verify all secondary information used in the report. We have an extensive database of economic information in almost every sector of the economy. Cross-analysis of related industries enables our clients to get a complete picture of the market of interest. Our own research methodology guarantees the consistently high quality of our work. We offer unique and individualized customer service: o Personal account on the website with a personal manager; o Monitoring of the status of your order online; o Pre-sale specialist advice and answers to post-purchase questions. We offer special conditions for the actualization of our research reports. If interested, find out about these conditions from our specialists now! Page 3 from 19 IndexBox Marketing 2012 www.indexbox.ru 4. Market Research Russia: Paper Market. November 2011 (Demo-version)Research DesignThe purpose of the study is to analyze the state of the Russian paper market and build aforecast of the industry in the medium term.Geography of the research: RussiaMethodology1.Analysis of secondary market data:Secondary data refers to data from the Internet (industry portals, competitors sites,shopping sites, articles and reviews, reference materials), specialized publications, state andprivatemedia companies,marketing agencies,commercialdatabases,IndexBoxMarketing own research.2.Analysis of Materials from Market Participants (price lists, brochures, etc.):Data collection from market participants is needed to analyze the specifics of the marketand the parties involved in it, their pricing and assortment policy. Data on marketparticipants is gathered during the analysis of secondary information, and also by sendingrequests for price lists and other presentation materials.3.Expert Interviews with Market ParticipantsTheanalysis of secondaryinformation is completed byexpertinterviewswithrepresentatives of market participant companies manufacturers and trading companies.Our approach to the estimationThe consensus market forecast is the average value of the forecasts of market participants(experts).ExpertsAs market experts are considered: manufacturers, importers, wholesale distributors, high-volume consumers, professional associations and unions, and trade publications. Expertopinions are collected during telephone interviews conducted by IndexBox on a regularbasis (the standard is every six months, but can be more often, based on a special requestor under conditions of high volatility in the market). IndexBox has created an extensivedatabase of experts within key industries. The experts, participating in the survey, areprovided with special conditions on the purchase of the reports. Page 4 from 19IndexBox Marketing 2012 www.indexbox.ru 5. Market Research Russia: Paper Market. November 2011 (Demo-version)Accuracy of forecastsThe accuracy of forecasts is verified by experts in the given industry, based on the historicalperiod (3 years). In accordance with this accuracy, each expert weighs out the forecasts tocreate the overall average forecastIndicators1. Consumption: Consumption is the main index estimated by our experts and features the dynamics of consumption in real terms in the short to medium term. Experts give an estimate of the potential volume of consumption in accordance with their expectations and production plans (for manufacturers).2. Internal production: It is based on the projected volume of consumption and production capacity in any given industry, assessing, of course, and factoring in the dynamics of domestic production.3. Imports and Exports: Takes into account the retrospective dynamics of export-import operations, strengths and weaknesses of the domestic production, changes in legislation, the macroeconomic situation in the countries of the supplier (beneficiary) of a product, an assessment of the dynamics of imports and exports.Page 5 from 19IndexBox Marketing 2012 www.indexbox.ru 6. Market Research Russia: Paper Market. November 2011 (Demo-version)Table of ContentsAbout IndexBox1. Executive summary2. Research design3. Characteristics of raw materials 3.1. Wood processing industry4. Classification of securities5. Characteristics of the Russian paper market in 2005 - 2010. Forecast for 2011 -2017 5.1. Volume and dynamics of the Russian paper market in 2005 - 2010. Forecast for2011 - 2017 5.2. Structure of the paper market: production, exports, imports, consumption6. Characteristics of domestic paper production in Russia in 2005 - 2010. Forecastfor 2011 - 2017 6.1. Volume and dynamics of paper production in Russia in 2005 - March 2011 6.2. Structure of paper production by region 6.3. Production capacity of the manufacturing companies and their level of loading 6.4. Level of concentration of production and characteristics of competition on themarket 6.5. The main manufacturers of paper and their corresponding market shares6.5.1. JSC "Kondrovskaya Paper Company"6.5.2. JSC "Kondopoga"6.5.3. OJSC "Volga"6.5.4. JSC "Solikamskbumprom"6.5.5. OAO "Svetogorsk"6.5.6. JSC "Mondi Business Paper Syktyvkar LPK"6.5.7. JSC "Kotlas PPM"6.5.8. OJSC "Arkhangelsk PPM" 6.6. Investment projects in the industry7. Characteristics of the price of paper 7.1. Dynamics of manufacturers prices of paper in 2005 - March 2011 7.2. Comparison of manufacturers prices of paper by Federal Districts of Russia8. Characteristics of the imports of paper on the Russian market8.1. Volume and dynamics of the imports of paper8.2. Countries, leading suppliers of the paper, imported into the Russian Federation8.3. Foreign companies, manufacturers of the paper, imported into Russia8.4. Russian recipient companies of the imported paper8.5. Recipient regions of the Russian imports of paper9. Characteristics of the Russian exports of paper9.1. Volume and dynamics of the Russian exports of paper9.2. Recipient countries of the Russian exports of paper9.3. Manufacturing companies, supplying paper for exportsPage 6 from 19 IndexBox Marketing 2012www.indexbox.ru 7. Market Research Russia: Paper Market. November 2011 (Demo-version)9.4. Sending regions of the Russian exports of paper10. Factors, influencing the development of the paper market 10.1.Welfare rate 10.2.Dinamics of population 10.3.State of commercial sector11. Characteristics of paper consumption 11.1.Dinamics and volume of paper consumption in 2005 - 2010. Forecast for 2011- 2017 11.2.Volume and pattern of consumption of paper by Federal Districts in 2005 -2010. Forecast for 2011 - 2017 11.3.Structure of paper consumption by industry in 2005 - 2010. Forecast for 2011 -2017 11.4.Balance between production and consumption of paper in 2005 - 201012. Forecast for the development of the paper market in Russia in 2011 - 2017 12.1.Assesment of the potential volume of supply of paper in 2011 - 2017Appendix 1. Financial and economic indicators of the industry Revenue (net) from sales of products in 2006 - 2010, in billions of RUR Selling and administrative expenses in 2006 - 2010, in billions of RUR Cost of products in 2006 - 2010, in billions of RUR Gross profit on product sales in 2006 - 2010, in billions of RUR Investments in the sector in 2006 - 2010, in billions of RUR Average number of workers employed in the sector in 2006 - 2010Appendix 2. Profiles of the leading manufacturers in the industryThe following data (or analysis of the data) is presented for each of the companies: Contact details Registration data Management Subsidiaries Major shareholders Balance sheets Profit and loss accounts Key financial performance indicatorsPage 7 from 19IndexBox Marketing 2012 www.indexbox.ru 8. Market ResearchRussia: Paper Market. November 2011 (Demo-version)Data presented in tabular form Dynamics of the paper market in 2007 - 2016 Production of paper in 2005 - March 2011, in tons Volume of paper production by type of paper in January March 2011, in tons Production of paper by Federal Districts in 2005 - March 2011, in tonsUse of annual production capacity in Russia for the production paper in 2005 2010 byregion, in % Average manufacturers prices of paper in Russia in January 2007 - March 2011 Volume of the imports of paper in Russia by manufacturing countries in 2010, in tons Volume of the imports of paper in Russia by manufacturing companies in 2010, intons Volume of the imports of paper in Russia by importing companies in 2010, in tons Volume of the imports of paper in Russia by recipient regions in 2010, in tons Volume of the Russian exports of paper by recipient countries in 2010, in tons Volume of the Russian export of paper by manufacturing companies in 2010, in tons Volume of the Russian exports of paper by sending region in 2010, in tons Indicators of the commercial sector in 2008 - March 2011 Indicators of population dynamics in 2008 - March 2011 Indicators of living standards in Russia in 2008 - March 2011 Forecast for the consumption of paper until 2017 by Federal DistrictsPage 8 from 19 IndexBox Marketing 2012 www.indexbox.ru 9. Market ResearchRussia: Paper Market. November 2011 (Demo-version)Data, presented in the form of figures Volume of paper supply on the market in 2007 - 2016 Production of paper in 2009 - March 2011, in tons Production of paper in January 2008 - March 2011, in %, to the corresponding periodof the previous year Production of paper in 2005 - 2011, in tons Structure of paper production in January - March 2011 by type, in tons Structure of paper production by Federal Districts in January - March 2011 Structure of paper production by Federal Districts in 2005 2011 Capacity for the production of paper by Federal Districts in 2010, in tons Level of annual production capacity for paper production in Russia in 2000 2010, in% Commissioning of new capacities for the production of paper in Russia in 2000 2010,in tons Indices of average manufacturers prices of paper in Russia in January - March 2011 Indices of average manufacturers prices of paper in Russia in January - March 2011 Dynamics of average manufacturers prices of paper in Russia in January 2009 -March 2011, deviation in % over the corresponding period of the previous year Comparison of the average manufacturers price of paper by Federal Districts inMarch 2011 Dynamics of the imports of paper in the Russian Federation in January - March 2011,in tons Structure of the imports of paper in Russia by manufacturing countries in 2010 Structure of the imports of paper in Russia by manufacturing companies in 2010 Structure of the imports of paper in Russia by importing companies Structure of the imports of paper in Russia by recipient regions in 2010 Dynamics of the Russian exports of paper in 2010, in tons Structure of the Russian exports of paper by recipient countries in 2010 Structure of the Russian exports of paper by manufacturing companies in 2010 Structure of the Russian exports of paper by sending region in 2010 Indicators of the commercial sector in Russia in 2008 - March 2011 Indicators of population dynamics in Russia in 2008 - March 2011 Indicators of living standards in Russia in 2008 March 2011 Dynamics of paper consumption in Russia in 2009 - 2017, in tonsPage 9 from 19 IndexBox Marketing 2012 www.indexbox.ru 10. Market ResearchRussia: Paper Market. November 2011 (Demo-version)Executive SummaryKey figures and conclusions about the marketThe volume of supply on the Russian paper market in 2010 was almost million tons,which is % higher than the the same figure for 2009. It should be noted that the volumeof imported products on the paper market was % of the total market.The volume of production of paper in 2010 was million tons, which is % higher than thevolume of production in 2009.The largest share (%) of all paper manufactured in the Russian Federation in 2010belongs to the Federal District.In 2010, the import volume of paper in Russia amounted to thousand tons in physicalterms and to thousand USD in value terms.Page 10 from 19IndexBox Marketing 2012 www.indexbox.ru 11. Market ResearchRussia: Paper Market. November 2011 (Demo-version)4. Characteristics of the Russianpaper market...4.1. Volume and dynamics of the Russian paper market in2005-2010. Forecast for 2011 2017The volume of supply on the Russian paper market in 2010 was almost million tons,which is % higher than the the same figure for 2009. It should be noted that the volumeof imported products on the pumps market was % of the total market. Source: Data (Rosstat, FTS), Analysis (IndexBox)Fig. 1. Volume of supply of paper in 2009 - 2010 and forecast for 2011 -2017, in tonsPage 11 from 19 IndexBox Marketing 2012 www.indexbox.ru 12. Market ResearchRussia: Paper Market. November 2011 (Demo-version)4.2. Structure of the paper market in Russia: production, exports,imports, consumptionThe volume of imports of paper was about million tons, which was % of the total marketvolume. A more detailed analysis of the imports and exports is presented below.Table 1. Volume and dynamics of the paper market in 2009 - 2010 and forecast until 2017, in tons 200920102011F 2012F 2013F 2014F 2015F 2016F 2017FVolume of In unitsproductionIn %, to %%%%%%%% thepreviousyearVolume of In unitsexportsIn %, to %%%%%%%% thepreviousyearVolume of In unitsimportsIn %, to %%%%%%%% thepreviousyearVolume of In unitstotal supplyIn %, to %%%%%%%% thepreviousyear Source: Data (Rosstat, FTS, Expert opinion), Analysis (IndexBox)Page 12 from 19IndexBox Marketing 2012 www.indexbox.ru 13. Market ResearchRussia: Paper Market. November 2011 (Demo-version)5. Characteristics of the domesticproduction of paper in 2005 - 2010Characteristics of domestic production - Volume and dynamics by type of product - Production capacities - Structure of production - Main producers and their market shares5.1 Volume and dynamics of production of paper in 2005 -November 2011For the period January November 2011, the volume of production was higher than for theanalogical period of the previous year, although the monthly dynamics was negative starting with February 2011, the volume of production started declining.Page 13 from 19IndexBox Marketing 2012 www.indexbox.ru 14. Market Research Russia: Paper Market. November 2011 (Demo-version)Source: Data (Rosstat), Analysis (IndexBox)Fig. 7. Production of paper in 2010 - November 2011, in unitsPage 14 from 19IndexBox Marketing 2012 www.indexbox.ru 15. Market ResearchRussia: Paper Market. November 2011 (Demo-version)5.4 The main producers of paper and their share in productionTable 5. Volume of production by paper manufacturers in 2010, in tonsProduction ofManufacturerRegionpaper, in tonsOTHERSTOTAL Source: Data (Company data), Analysis (IndexBox) Source: Data (Company data), Analysis (IndexBox) Fig. 2. Shares of paper manufacturers in the total production of paper in 2010 in physical termsPage 15 from 19 IndexBox Marketing 2012 www.indexbox.ru 16. Market Research Russia: Paper Market. November 2011 (Demo-version)7. Characteristics of the imports ofpaper 7.1. Volume and dynamics of the imports of paperThe volume of imports of paper in 2010 was tons. The largest amount of paper wasimported in , when were imported tons.Table 2. Dynamics of the imports of paper in 2010, in tonsMonthQuantity, in tons In %, to the previous monthJanuary February %March %April %May %June %July %August %September %October %November %December %Total Source: Data (FTS), Analysis (IndexBox) Page 16 from 19 IndexBox Marketing 2012 www.indexbox.ru 17. Market Research Russia: Paper Market. November 2011 (Demo-version) Source: Data (FTS), Analysis (IndexBox)Fig. 16. Dynamics of the imports of paper in 2010, in thousands of tons and in%Page 17 from 19IndexBox Marketing 2012 www.indexbox.ru 18. Market Research Russia: Paper Market. November 2011 (Demo-version)About IndexBox"IndexBox" is one of the leading companies in the sphere of marketing consulting. We carryout pieces of marketing research and consult on questions about strategic marketing.The "IndexBox" team has been working together for more than 7 years.The average experience of "IndexBox" specialists in the marketing sphere is 10 years.IndexBox" employs 15 specialists in its research analytical department.The gathering of the researched information is controlled by 8 employees, all with vast experience in field work. And who oversee more than 150 experienced interviewers.Over 10 years, we have completed more than sixteen hundred projects, most of which are focused on the consumer and industrial markets. The geography of the research includes not only the territory of Russia, but also foreign markets.In total, more than 80,000 respondents have taken part in our research studies.Not only does "IndexBox" have a wide partner network in the regions of the Russian Federation, the CIS, and the Baltic countries, but also has countless foreign partners, including the largest research companies in the USA, the UK, France, India, and China.Our clients are big Russian and foreign companies:Page 18 from 19 IndexBox Marketing 2012 www.indexbox.ru 19. Market ResearchRussia: Paper Market. November 2011 (Demo-version)Marketing researchOur specialization - the study of consumer and industrial markets, segments of B2C andB2B. Among the methods used: desk research, consumer surveys, expert surveys,competitive analysis, sales audit, a wide range of qualitative market research products andservices. Our competitive advantage is the formation of special research techniques to thetasks of each project. System planning and operational monitoring of the industry, created acompany that allows professionals to operate in IndexBox their work relevant and accurateinformation.Business PlanningWe are professionally engaged in developing business plans, feasibility studies, investmentmemoranda, conduct financial analysis of enterprises and prepare analysis for transactionsM & A. Business plans developed by IndexBox, contain a complete financial model for thefurther implementation of the project, all calculations are based on marketing information,which is permanently collected and analyzed for over 7 years. Documents comply with thestandards of Russian and foreign banks, the projects have market feasibility and realisticprojections, and we provide assistance in finding an investor and financing, legal support.Strategic MarketingWe develop strategic development for brands, products, separate business units andindustry. Generally, programs include product, pricing, marketing and communicationstrategy. Projects in the field of strategic marketing are relevant to large enterprises,financial and investment companies that are planning to expand its interests as well assmall companies that are thinking about business development.DevelopmentConsulting in development - is to develop the best options for use of the area. To do this,our marketing agency, conducts research real estate market, analyzes the possibleconstruction, and estimates the market feasibility and economic benefits of investing in realestate. Marketing agency IndexBox offers a range of professional services for the study ofthe real estate market and the development of individual marketing concept of the facility.Page 19 from 19IndexBox Marketing 2012 www.indexbox.ru