2. Expected results of Transformation program 9 initiatives (1/4)
Transformation
direction
Transformation initiative KPI and expected results 2014 2015 2016 2017 2018 2019
1: Value
improvement
focus with the
core business
1A: Implement business process re-
engineering
Number of entities out of the targeted seven (the Fund and
six industrial groups):
Finished Stage 0: Preparation
Finished Stage 1: Diagnosis and design
Finished Stage 2: Planning
Finished Stage 3: Implementation 1-phase
Finished Stage 4: Implementation 2-phase
3
0
0
0
0
7
5
0
0
0
7
7
7
3
0
7
7
7
7
3
7
7
7
7
7
7
7
7
7
7
Revenue increase due to transformation activities compared
to base line year 2014 (the Fund and six industrial groups)1
[%]
0 0 5% 10% 15% 20%
1B: Redefine the strategic KPIs for the
fund and portfolio companies
Number of entities out of the targeted seven (the Fund and
six industrial groups)1 with new set of KPIs approved
1 7 7 7 7 7
Number of entities out of targeted seven (the Fund and six
industrial groups)1 with new targets related to the new KPIs
approved
0 0 7 7 7 7
1C: Align Portfolio companies’
strategies with the strategic KPIs
Number of entities out of the targeted seven (the Fund and
six industrial groups)1 with updated strategy in compliance
with the new strategic KPIs approved
0 3 6 6 6 6
2: Portfolio
restructuring
2А: Simplify the legal structures of the
Portfolio companies
Total number of legal entities across the Fund portfolio 593 500 400 300 300 300
Number of legal entity levels (including the Fund) 9 8 8 5 5 5
3. Expected results of Transformation program 9 initiatives (2/4)
Transformation
direction
Transformation
initiative
KPI and expected results 2015 2016 2017 2018 2019 2020
2: Portfolio
restructuring
2B: Bring public
investors into
core assets, and
remove non-core
business assets
and social assets
Implementation of readiness of companies targeted for
IPO,SPOI
− Hiring of investment advisors/banks
− Ensuring readiness of report by investment advisors
on the key parameters of proposed sale
− Producing and approving a communication strategy
and the conducting international investors events
for respective companies
n/a
n/a
n/a
0
0
0
4
3
2
2
1
3
1
2
3
0
1
1
Divestment of other 37 medium to large assets from
Attachment #3
− Appointing valuation advisors where necessary and
divesting of medium to large assets from attachment
#3 (#)
− Ratio of the actual price of sale of 37 assets from
attachment 3 to their valuation (min coefficient)
n/a
n/a
0
n/a
20
1
17
1
0
1
0
1
Divestments of assets from attachment #4 incl.
liquidation and reorganization (#)
n/a 60 90 22 - -
2C: Establish new
active
investment
approach
Strategic Direction provided for investment activities
Fund's Corporate
Standard for
investment
activity approved
Fund's Principles
and Approaches
on Identification
and building new
industries
approved
Fund's Principles and
Approaches document
applied for all
industries
New investments to follow the
principles outlined
Fund's
Corporate
Standard for
investment
activity
approved
*> 10 concepts are
approved by InvCom
*>10 concepts and
3 projects are
approved by
InvCom
*>10 concepts and
3 projects are
approved by
InvCom
Assessment of investment activities n/a
Fund’s financial
model is
developed
Development of a
financial model for
the 12 largest PCs
Utilization of DCF model for the
monitoring and assessment of
investment projects
n/a
Development of
Portfolio Investment
Criteria to assess new
investment activities
approved
Implementation of
investment criteria
and standards to
the PC's
Continual fine
tuning of
investment criteria
Monitoring of investment activities n/a n/a
Development of
investment project
database and
monitoring dashboard n/a
Development of
stop/loss criteria for
investment projects
4. Expected results of Transformation program 9 initiatives (3/4)
Transformation
direction
Transformation initiative KPI and expected results 2014 2015 2016 2017 2018 2019
3: Governance
3A: Increase effectiveness of
interactions with the
Government
Creation of GR-function in the Fund and Portfolio
companies [Companies quantity]
0 0 1* 7 7 7
Reducing the correspondence rate from the
Government to the Fund and PCs and requiring
meaningful response vs. base line year 2014 [%]
0 30% 50% 50% 60% 70%
3B: Strengthen the
‘Commercial block’ to ensure
World class asset and
investment management
Relative share of ‘Commercial block’ of the total
Fund staff [% of headcount employees]
n/a n/a 55% 60% 60% 60%
Commercial block’ positions filled in with target
capability level [%]
n/a n/a 50% 100% 100% 100%
3C: New Governance Model
Approval by the Government of new Corporate
Governance Code for the Fund
Х
Number of portfolio companies, 100% of shares
belonging to the Fund, approved new Corporate
Governance code
0 16 16 16 16 16
3.1: Design and
implementation of new
Corporate Governance Code
Number of companies out of the targeted six
industrial groups1 approved the results of the GAP
analysis and Action Plan on implementation of new
Corporate Governance Code by the Boards of
Directors of the Companies
0 3 6 6 6 6
Approval of new Methodology on diagnostics of
Corporate Governance system by the Management
Board of the Fund
Х
Number of portfolio companies with assessment of
the Corporate governance system in accordance
with new Methodology on new Corporate
Governance Code:
− agree on criteria and set the targets
− run assessment 0 0
Х
0 6 6 6
* Creation of GR-function in the Fund, approval of reference model on GR for Portfolio companies
5. Expected results of Transformation program 9 initiatives (4/4)
Transformation
direction
Transformation initiative KPI and expected results 2014 2015 2016 2017 2018 2019
3: Governance
3.2: Define BoDs in
accordance with requirements
of new Corporate Governance
Code
Number of companies out of the targeted six
industrial groups with Board of Directors appointed
in-line with the requirements of the new Corporate
Governance Code
[Number of portfolio companies out of the targeted
six industrial groups1]
0 1 4 6 6 6
6. Expected results of Transformation program in HR
Initiatives KPI and expected results 2014 2015 2016 2017 2018 2019
Implementation of meritocracy through job matching
Number of companies with finalized job matching proses under transition to
new organizational structure (CEO-1, key positions of CEO-2 upon decision of
the companies)
0 0 5 12
Implementation of meritocracy principle through target
processes (target processes and target HR organizational
structure are implemented in the Fund and 12 PCs)
Implemented processes: recruitment, performance appraisal, compensation
management
7 12
Implemented processes: learning and development, succession planning,
assessment of HR function satisfaction level
2 7 12
Implemented processes: HR strategy, HR metrics, organizational structure
administration
5 12
Development of the Shared service center
Fulfillment of the shared service center development plan 0 0 0 100% 100% 100%
Meeting Shared service center KPIs from the SLA 0 0 0 100% 100% 100%
Development of corporate culture
Number of companies with conducted project on corporate culture
development (i.e. diagnosed current corporate culture, defined target culture,
developed roadmap of actions to minimize gaps)
0 0 1 5 9 12
Graduates program
Number of selected participants of graduates program based on multi-stages
selection process
20 20
7. Area Initiative KPI and expected results 2015 2016 2017 2018 2019
Transformation program support
Development and implementation of change
management methodology
All group change initatives
Change management methodology (Stages 1, 2, 3) is
developed
1
(Стадии 1,
2)
1
(Стадия 3)
Integration of change management tasks into
transformation project portfolio and initiative
implementation projects
All CTT initiatives
Change management methodology is implemented in CMG
teams of 6 portfolio companies
0 2 7 7 7
Change management tasks embedded into approved
centralized projects within the portfolio
0 2 7 7 7
Training and competency development
Trainings
All group change
initiatives
Training events (anso within projects) 0 1 8 9 12
Consulting and expert support
All group change
initiatives
Expertise support projects 0 1 2 3 4
Enabling activities
Online knowledge center in change and
project management
All group change
initiatives
Number of active users 0 0 100 400 600
Knowledge and facility support amongst
professional communities
All group change
initiatives
Number of events handled (conferences, infodays, forums
etc)
0 0 2 5 8
Expected results of Transformation program in Change Management