SKB Kontur B2G & B2B web services #1 SaaS vendor and #5 software developer in Russia

1. SKB KonturB2G & B2B web services#1 SaaS vendor and #5 software developer in Russia http://www.skbkontur.ru

2. History/Facts • Based in Yekaterinburg, Russia • Privately-held • Started back in 1988 as an accounting/financial software development company • Profitable since 1990(always ;) • Kontur-Extern is a core service started 2001 • 1.000.000-th unique customer in 2009 • 14 PhD’s in staff • Partner network covers 10 timezones in Russia

3. People Employees Management Board of directors (mostly company founders) CEO Dmitry Mramorov BizDev Director Grigory Povarov • 1000+ staff members (FTE) • 700 in Yekaterinburg • 300+ in branches (Moscow, …) • 200 developers • 500+ sales, marketing, etc

4. Location • HQ is in Yekaterinburg, Russia, Ural region • 2 hours flight from Moscow (eastern bound) • “3rd capital” of Russia, population 1.35M • # of local software companies and R&D offices • Cheaper labor, general expenses and estate • IT-friendly local government • Tech-oriented universities – here and nearby

5. Business model • Web services (SaaS) for businesses • Main focus areas: • Connect business with Government • Help SMBs be more productive • Enable businesses deal each other electronically • Subscription billing, direct and partner sales • Upsell existing customers continuously

6. Remarkable customers

7. Sales • We sell directly as well as via partners • Kontur-owned sales offices operate in largest cities like Moscow, Yekaterinburg, Chelyabinsk … • Methodologies: telemarketing, internet ads, accounting magazine ads, tax office on-site promotions, strict renewal management and control, … • Overall ~500 FTEs in sales countrywide

8. Partner network • 400+ sales partners Russia-wide • Partners do sales and basic support as well • We support partners with new and renewal leads, promo ideas, money/discount incentives,.. • All Kontur services are partner-friendly • Looking for sales partners in new segments

9. Technology/operations • Almost 100% Microsoft-based development and operations, Gold MS Partner • Two datacenters (rented), ~200 servers • Russia-wide span (with partners) • 24x7 monitoring and administering • Huge in-house development • State-certified crypto technology usage • Licensee of State Security Service (FSB) • 24x7 toll-free support line for all services

10. Services: Kontur-Extern • Core service and revenue generator • Helps 1M+ Russian businesses send tax reports to the government (strictly B2G) • Legally significant, using GOST-digital signature • 100% web based service in SaaS model • Users: accountants, incl outsourced/CPAs • Strong partnership with Russian tax office • Customer base growing 20-30% a year

11. Kontur-Extern market share • 50% of businesses do not yet use electronic tax reports • 25% of businesses send tax reports through Kontur-extern competitors • 25% of businesses use Kontur-Extern • Our 25% market share generates 1.8B rub (~$60m) in gross revenues with 35% growth (2009)

12. Web services marketplace • Landing page for new and existing visitors • Central marketplace for all own services • Marketplace for 3rd party partner services • SMB-focused, with strict selection criteria • One service per category, best in class • Piloted Jul, 2010. Full launch at late Sep, 2010 • Open platform for integration and interop

13. Services: Kontur-Normativ • On-demand law database in SaaS model • Tax, labor and civil legislation, accounting, analytics, arbitrary practice, professional auditors advice, standard document templates,.. • Offered 1 year ago, still in active development

14. Services: Elba • SaaS accounting for non-accountants • Targeted to small businesses and self-employed individuals • Does basic bookkeeping including invoices • Prepare and send tax reports • Integrated with banking services • Reports and payment calendar and reminders • Basic phone consulting by accountants • Russia-wide service with toll-free support line

15. Services: more… • Payroll service – allows mid-market customers to calculate salaries electronically and prepare all necessary reports for Pension Fund and Social Security Fund • EGRUL – provides legally significant excerpts from State Directory of Businesses (useful in case of hostile company takeover attempts) • More data-driven services to come…

16. Services: Certificate Authority • Largest state-certified CA in Russia • ~980.000 digital certs issued • Certs are used for: SKB Kontur services, electronic marketplaces, government tenders, G2C services • Runrate: 25k new certs a month • Aggressive bizdev, looking for new usage scenarios and partnerships

17. Investments • We re-invest profit to sales/technology partners acquisition when it make sense • We are ready to invest into new web services companies in order to help them to build a product that will be offered in our web services marketplace • Considering mass-scale SaaS services for SMBs

18. Services: Diadoc • Launched Jul, 2010 to help businesses to exchange legally significant e-documents • Any format: DOC, PDF, structured data, images • Uses digital signature (all customers have it) • Secured data storage and transmission • Guaranteed delivery and time stamping • Billed per document sent • Open platform for interop and integration

19. Services: e-invoicing • Subcase of Diadoc system usage • B2B service with tax office control • Market: 20 billion paper invoices a year • Legislation is 95% ready (est start Jan, 1) • Cross-border transit opportunity

20. Contacts • Dmitry Mramorov, CEO – mdm@skbkontur.ru • Grigory Povarov, BizDev Director - gp@skbkontur.ru • Petr Didenko, strategic bizdev manager – pdidenko@skbkontur.ru

21. Appendix: URLs • Corp website: http://skbkontur.ru • Kontur-Extern: http://www.kontur-extern.ru • Kontur-Normativ: http://www.kontur-normativ.ru • Elba: http://e-kontur.ru • Diadoc and e-invoicing: http://diadoc.ru • Cert Authority: http://ca.skbkontur.ru • Marketplace: https://portal.kontur.ru