OREANDA-NEWS. The Board of Directors of OJSC Mostotrest (the Company or, together with its subsidiaries, Mostotrest or the Group) met to discuss among other questions the Company's strategy implementation during the last three years and the key focus areas for 2014.

It was noted that the key strategic components that were set prior to the Company's IPO in 2010 remain relevant today, namely:

Business and market share growth

Further general contracting competence development

Development of the own production capacities in the core construction segments

Diversification into related business segments.

Over the last three years, the Group has increased its revenues considerably, developed its general contracting capabilities and expertise, and enhanced its production capacity in key segments of the construction market (highways, bridges, airports, railways and port infrastructure). We have also succeeded in entering related segments (road maintenance and repair, and toll roads operation), as well as gaining access to the concession business.

The infrastructure market has been rapidly growing continues to grow rapidly, and imposing ever more requirements demands on construction companies, with amalgamation of contracts and efforts to attract private financing in the sector. In these circumstances, construction companies must have the ability to respond flexibly to change, developing new expertise, entering into new segments, forming partnerships with foreign players and adopting construction expertise. At the same time it is critical to have access to both debt and equity capital, so that growth can be self-financed, thus enabling the company to participate fully in the market's continuing development. Today, Mostotrest is capable not only of executing projects of any complexity, but also of providing the additional services required by government customers, including project documentation development and construction site preparation, as well as co-financing life cycle, operation and concession projects.

In 2014, Mostotrest will continue implementing its strategy of developing the business in both core and related segments through participating in new contracts (primarily long-term investment projects offered by the market next year). In the second half of 2013, the Company's backlog grew by over RUB 170 billion (excluding VAT), which accounted for around 70 per cent of the Group's consolidated backlog as at the end of the first half of 2013. This impressive order book volume will support Mostotrest's sustainable growth for years to come, enabling it to be more selective in its choice of new projects.

In 2014, the Company expects preparations for the World Cup 2018 will be continued, and the state client will be holding new tenders for segments of federal highways and motorways, as well as for transport infrastructure projects in the host cities of the World Cup. As an industry leader and a reliable contracting partner to governmental clients, Mostotrest is well placed to participate in the most attractive projects. Mosotrest has a robust project pipeline, and it expects that new order intake will contribute to a solid and growing backlog, replacing revenue already recognized under existing contracts that are being implemented.

Mostotrest is the largest diversified infrastructure and bridge-building company in Russia. According to EMBS Group, the independent industry consultancy, Mostotrest had a 9.4% share of the total Russian infrastructure construction market in 2012.

Mostotrest's core competences include construction and rehabilitation of automobile, railway and urban bridges, automobile roads and other transport infrastructure.

The company was established in 1930 as a developer of complex and oversized bridges, and has built and rehabilitated more than 7,500 infrastructure projects (bridges, flyovers, tunnels and interchanges) to date.

Mostotrest is currently implementing major infrastructure development projects across Russia, including transport infrastructure for the 2014 Sochi Olympics, Enthusiasts Avenue traffic interchange in Moscow, as well as infrastructure projects along M-4 Don, M-7 Volga and other highways.

Mostotrest Ownership Structure:

38.6%: Marc O'Polo Investments (beneficiary shareholders: Arkady and Igor Rotenbergs and top-managers of N-Trans, including Konstantin Nikolaev, Nikita Mishin and Andrey Filatov);

27.3%: Transfingroup Asset Management Company, trustee of Blagosostoyanie Pension Fund

34.1%: free float.