OREANDA-NEWS. OJSC Mostotrest (hereinafter - Mostotrest or the Company) held its Annual General Shareholders' Meeting in Moscow on 28 June 2013, chaired by Georgy Koryashkin, Chairman of the Company's Board of Directors.

The General Shareholders' Meeting approved the annual report and annual financial statements, as well as the Company's 2012 profit distribution (including the amount of dividends), elected the Board of Directors and Internal Audit Committee of the Company, and approved auditors for both Russian Accounting Standards (RAS) and International Financial Reporting Standards (IFRS).

Approval of the annual report, annual financial statements, and of the 2012 dividend

The General Shareholders' Meeting approved the annual report and annual financial statements of Mostotrest prepared in accordance with RAS. The revenues of the Company in 2012 according to RAS amounted to RUB 67.1 billion, a 45% increase year-on-year.

The Meeting also approved the Company's 2012 cash dividend in the amount of RUB 7.8 per ordinary share, payable within 60 days of the dividend decision. According to the dividend policy of OJSC Mostotrest, dividends are calculated based on IFRS financial statements of the OJSC Mostotrest and its subsidiaries (hereinafter - the Group or the Mostotrest Group of Companies). In IFRS terms, the Group's revenues grew 26% to RUB 123.7 billion and net profit increased by 17% to RUB 4.3 billion. The total amount of 2012 dividends is RUB 2,201.281 million, or 51% of the Group's IFRS net profit, a 10% increase year-on-year (2011: RUB 2,003.730 million). The dividend record date was set at 16 May 2013.

In 2012, the Mostotrest Group of Companies completed a total of 40 construction projects, including 32 commissioned by OJSC Mostotrest. The biggest projects completed in 2012 included Avtozavodskaya subway line in Nizhni Novgorod; 21-117 km (Moscow Ring Road - Kashira) section of М-4 Don Highway; Adler Ring split-level traffic interchange; traffic interchange at the intersection of Leningradskoye Avenue and Moscow Ring Road in Moscow, and other projects.

In 2012, Mostotrest continued to enhance its competitive edge, implementing a capital investment program in order to support the growth, improving its existing skills set, developing new expertise and expanding its project backlog.

Election of the Board of Directors

The General Shareholders' Meeting elected a Board of 11 directors, comprised of Leonid Dobrovsky, Vadim Korsakov, Georgy Koryashkin, Denis Kulikov, Irina Makanova, Yuri Novozhilov, Mikhail Noskov, Alexander Shevchuk, Oleg Toni, Vladimir Vlasov and Maria Zhurba.

Approval of the auditors and the Internal Audit Committee of the Company

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 Committee consisting of four members.

Georgy Koryashkin, Chairman of the Board of Directors, commented:

“2012 was a year of significant changes at Mostotrest. The Company underwent a major expansion and diversification of its business operations, which enabled us to create a full service organization, the first of its kind in Russia, capable of providing a comprehensive range of services in the transport infrastructure construction market. Group's 2012 results reaffirmed our leadership position: we increased our market share to 9.4%, delivered dynamic business growth and maintained a strong financial position.

We continued to maintain a strong backlog (RUB 304.8 billion). The backlog includes a number of landmark Russian infrastructure projects. Additions to the backlog in 2012 included, among others, projects to upgrade and develop the transport infrastructure in Moscow, including that of the Skolkovo Innovation Center. We also won the biggest tender held in Russia in 2012 to build a section of the Moscow - Saint Petersburg Highway between Businovskaya Traffic Interchange and Festivalnaya Street in Moscow, including construction of a new traffic interchange at the intersection with Festivalnaya Street. As one of the key contractors involved in the preparation for the Sochi Olympics, in the period under review we completed several transport infrastructure projects.

Based on our 2012 results, the General Shareholders' Meeting approved a dividend representing 51% of the Group's IFRS net profit, or RUB 2.2 billion. For the three financial years since 2010, our strong financial performance and dynamic business development have allowed us to sustain the payout ratio above the dividend threshold stipulated in the dividend policy.

According to our estimates, 2013 will mark the start of a period of intense activity in preparation for the World Cup 2018, including, above all, further development of the country's toll road network and, hence, privately financed projects, life cycle contracts and concessions. As a result of successful implementation of its business diversification strategy, Mostotrest now has all the necessary skills and knowledge to bid for new high-quality contracts, both in our core segment of construction and in the related business segments where we have enhanced our footprint in 2012”.