OREANDA-NEWS. July 02, 2012. OJSC Mostotrest (hereinafter “MSTT” and jointly with its subsidiaries LLC Corporation Engtransstroy and LLC Transstroymekhanisatsiya – Mostotrest, the Company or the Group) held its Annual General Shareholders’ Meeting in Moscow, chaired by Georgy Koryashkin, Chairman of the Company’s Board of Directors.

Results f the Annual General

The General Shareholders’ Meeting approved the Annual Report and annual financial statements, as well as the Company’s 2011 profit distribution (including the amount of dividends), and elected the Board of Directors and Internal Audit Commission of the Company; it approved the auditors for both Russian and international financial reporting standards.

Approval of the Annual Report and annual financial statements, and of the 2011 dividend

The General Shareholders’ Meeting approved the Annual Report and annual financial statements prepared in accordance with the Russian Accounting Standards (RAS). The revenues of MSTT in 2011 according to the RAS amounted to RUB 46.3 billion, a 39% increase year-on-year.

The Meeting also approved the Company’s 2011 cash dividend in the amount of RUB 7.1 per ordinary share, payable within 60 days of the dividend decision. The total amount of 2011 dividends is RUB 2,003.730 million, a 2.4x increase against 2010 (2010: RUB 845.193 million) and is 55% of IFRS net profit which amounted to RUB 3.7 billion in 2011. The shares were marked ex-dividend on 17 May 2012.

In IFRS terms, the Group’s revenues, including those of MSTT, went up by 32% to RUB 99.0 billion. The Group’s consolidated backlog for 2011 increased by 36% to RUB 319.8 billion, including through participation in sizable life cycle contracts projects being implemented for the first time ever in Russia. In particular, the Group won three tenders for construction of the transport infrastructure in Russia: construction, maintenance, repair and toll-based operation of the segment (Vyshny Volochek Bypass) of the Moscow – Saint Petersburg Highway, upgrade, repair and maintenance of M-4 Don Highway segment, M-9 Baltiya Highway segment upgrade.

In 2011, Mostotrest completed a number of major projects, delivering in aggregate 32 facilities. In particular, Mostotrest commissioned 18 facilities. The biggest projects completed in 2011 included: the section of Krasnopresnensky Prospekt from Zhivopisnaya St. to 3rd Silikatny Proezd in Moscow; the section of the M-4 Don highway from Moscow through Voronezh, Rostov, and Krasnodar to Novorossiysk in the Lipetsk Region; facilities on the Adler-Alpika Combined Highway (automobile and rail road).

Election of the Board of Directors

The General Shareholders’ Meeting elected a Board of 11 directors, including Arnout Dirk Lugtmeijer, Leonid Dobrovsky, Vadim Korsakov, Georgy Koryashkin, Irina Makanova, Yuri Novozhilov, Mikhail Noskov, Alexander Shevchuk, Oleg Toni, Vladimir Vlasov, Maria Zhurba.

Approval of the Auditors and the Company’s Internal Audit Commission

The General Shareholders’ Meeting appointed GROSS-AUDIT as the Company’s auditors for RAS financial statements.

The General Shareholders’ Meeting appointed ZAO KPMG as the Company’s auditors for IFRS financial statements.

In addition, the Meeting elected the Company’s Internal Audit Commission consisting of four members.

Comments by Georgy Koryashkin, Chairman of the Board of Directors:

“In 2011, Mostotrest continued pursuing a strategy of strengthening its market positions, creating new and developing existing competences. Thanks to the expanding scope of the works performed using own in-house capabilities and entry into related business segments through participation in life cycle contracts and toll roads operation projects, Mostotrest increased its market share to 8.6% and demonstrated excellent financial results.

We achieved these successes thanks to our developed general contractor expertise, many years’ experience of participating in the most complex projects, the broad geographical scope of our activities and our team of highly skilled engineers and managers.

Our operating achievements translated into strong financial results. Compared with 2010, revenue and gross profit increased by 32% and 18% respectively. Based on our strong 2011 performance, the Board has recommended that the dividend be increased above the level approved in the Company's dividend policy. The Company will pay out as dividends 55% of consolidated IFRS net profit, RUB 2.0 billion in total, a 2.4x increase against 2010.

A major result of the reporting year consisted in development of a corporate governance system. New regulatory documents were introduced within the Company. The Insider Information Regulation provides for better protection of the rights and interests of the Company’s shareholders, and the Corporate Code of Conduct is consistent with internationally recognized standards and fully complies with existing legal requirements, and is aligned to best corporate governance practices and ethical standards.

In 2012, the experts anticipate a continued market trend towards increased consolidation and greater complexity within infrastructure projects. This is already evident from the new legislative initiatives to support the development of life-cycle contracts, as well as from the transport infrastructure development strategies. I am certain that these developments will create new business opportunities for our company and further strengthen our market leadership.”