Social Responsibility — Annual report 2010

Annual Report 2010
To the bank’s web-site ïî-ðóññêè

- Portrait of the Bank
- Letter from the Chairman of the Management Board
- Strategy
- Main Events of 2010
- The Russian Economy and Banking Sector
- Business Overview
- Shareholder Structure
- Corporate Governance
- Risk Management
- Social Responsibility
- Financial Statements
- Branches in Russia
- Offices of Bank Vozrozhdenie
- Address and Contacts

# Social Responsibility

## Human resources

Bank Vozrozhdenie is committed to developing the full potential of all employees. Its key HR priorities are motivating employees to achieve key business goals, training staff to provide quality customer service, developing professional potential, and strengthening the corporate culture. In working towards these aims, the Bank constantly strives to comply with all labor legislation and maintain a balance between the interests of the employer and employees.

One of the main aims is to help staff gain further qualifications. In 2010, every new employee and every other full-time one took part in various educational and training events, and 3,000 people increased their professional skills.

Employees receive training on courses and via distance learning, the latter being the priority. All employees have access to the “Study and Development Portal”, which they can use for training and testing and to take part in discussions regarding various professional issues. The subjects most in demand in 2010 included retail and corporate banking products, automated banking systems, signs of counterfeiting and rules for checking banknotes, conducting negotiations, and information security. In 2010, some 2,600 employees used distance learning to gain further qualifications.

There are two types of courses at Bank Vozrozhdenie: those held in-house and those at higher education institutions. Last year, 1,200 employees took part in 22 in-house corporate seminars, including “Sales to Corporate Clients” and “Insuring Borrowers’ Loans Using a Collective Scheme”. Another 250 people attended courses in higher education institutions on subjects such as economics, jurisprudence, accounting, new banking technologies and security. Overall, the Bank invested RUB7.9 million in developing employees’ professional skills last year.

One strategic priority in the area of employee development is creating a pool of qualified managers. The Bank has a program for creating a pool from experienced employees, which includes regular seminars and training aimed at developing managerial, leadership and effective communication skills.

Another important part of the Bank educational programs is work with further and higher education institutions to organize and offer work experience for students, devise graduate training schemes, and arrange grants and work placements. Bank Vozrozhdenie is developing partnerships with the State Academy of Finance, North-West State University, Rostov-on-Don State University of Economics, and Stavropol State University. In 2010, 23 students from these institutions received a grant from the Bank and 67 students received work experience.

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## Environment

Care about the environment is an integral part of corporate social responsibility for Bank Vozrozhdenie, which makes every effort to minimize any negative effect of its business on the natural world around us.

The current business has little impact on the environment, as it involves providing banking services, which do not generate emissions into the atmosphere or the water supply. At the same time, the Bank recognizes that it has an indirect effect on the environment through its use of electricity, vehicles, etc, and the management pays particular attention to reducing this.

Bank Vozrozhdenie controls its energy consumption and strives to use resources as efficiently as possible. It is introducing new lighting technologies and optimizing the use of heating at offices, while it regularly replaces office and electrical equipment with more efficient types. In addition, the air-conditioning equipment uses modern, low-impact coolants that meet international standards. Meanwhile, the Bank is taking steps to reduce its paper consumption, including phasing in electronic document processing. In 2010, the volume of paper used was reduced by 1.2%.

Each year, the Bank upgrades its vehicle fleet, while working constantly to reduce unnecessary fuel consumption and exhaust emissions. At present, more than 80% of its vehicles comply with Euro-3 standards and 37% with Euro-4 standards. In 2011, the drive to phase in more environmentally friendly vehicles will continue.

Disposing of old products and equipment is a responsibility that Bank Vozrozhdenie takes seriously. Vehicles are repaired and services only at specialist centers, while office and technical equipment, tires, batteries and other spent resources are sent to specialist companies for disposal.

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## The Bank and society

Bank Vozrozhdenie pursues its social responsibility policy closely, in the belief that care of employees and clients should be accompanied by efforts to improve society in the regions where the Bank is present. The main social priorities are education, art, culture and sport.

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## Education and child development

The Bank traditionally supports initiatives to foster the creative potential of Russia’s younger citizens. In 2010, together with insurer Rosgosstrakh, it arranged the “Kids for Kids Creative Olympics” in Moscow Region and St Petersburg, as a result of which 13 children’s theatre studios were opened. The unique project, which was organized in 2008 with support from the government of Moscow Region, is far from over: its ideas continue to prosper in everyday life. The Olympics enabled over 500 young people from Moscow Region to experience the world of theater and encouraged them to develop their talents.

In 2010, Bank Vozrozhdenie provided support for the “Look at Childhood” social project and competition, which was organized by the city administration of Volzhsky in Volga Region. The aim of the event was to find and support young, talented workers in the city’s general and pre-school education system and raise the prestige of the teaching profession.

For several years, the Bank has provided financial assistance to the most promising students at leading Russian universities and institutes in the regions where it operates. In 2010, students from the Stavropol State University and Rostov State University of Economics were awarded scholarships. Those able to apply for the scholarships were students with high marks in specialist subjects who are active in the day-to-day life of their universities.

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## Art and culture

Priority social investments by Bank Vozrozhdenie include projects carried out by museums and theaters and historical and cultural preservation projects.

From March to May 2010, the Bank sponsored a tour of 20 cities in Moscow Region by Voskresenye (Sunday), the last in the 30-year history of the legendary rock-and-roll group. In most of the cities, the group was playing for the first time. Around 15,000 people attended the concerts.

In honor of the 65th anniversary of Victory Day, Bank Vozrozhdenie produced a collection of stories and accounts from soldiers who took part in World War II. Entitled “The Marathon of Memory”, it contains unique media material and personal accounts of Bank employees about their relatives who served. Together with the newspaper Volgodonskaya Pravda, the Bank also implemented a special project called “The Victors’ Parade”: the newspaper published 44 essays by contemporaries about World War II. As part of the project, a photo exhibition of heroes from the war was also held in Volgodonsk.

In 2010, as in previous years, the Bank sponsored the 9th Moscow Easter Festival, which was held in over 30 Russian cities. Led by the renowned composer, Valery Gergiev, the Mariinsky Theater symphony orchestra performed on Victory Day at two major concert locations in Moscow. The festival was organized with support from President Dmitry Medvedev, the Moscow City Government and the Culture Ministry, and had the blessing of Kirill, the Orthodox Patriarch of Moscow and All Russia.

In summer 2010, Bank Vozrozhdenie was the general sponsor of events to celebrate the 1,000th anniversary of Yaroslavl, the 60th anniversary of the jubilee of Volgodonsk, and the 56th anniversary of the founding of Volzhsk. In Yaroslavl, the Bank sponsored the creation of one of the most prestigious recreational areas in the city, the “Yaroslavl 1,000th Anniversary Park”. In Volgodonsk, together with the city’s Museum of the Environment and History and the municipal archive, the Bank implemented the project “Street of My Fate”, launching a series of articles dedicated to the city’s founders and builders as, well as people who played a key role in establishing Volgodonsk and its image today.

Last year, Bank Vozrozhdenie was a partner in the 10th national jubilee dancing tournament “Novorossiisk Rendezvous 2010”, which was created by the city administration. It was also a partner in the “Selected Classics of Modern Art in Russia” exhibition, organized by the Rostov Museum of Regional Ethnography and the Yekaterinburg Gallery of Modern Art. The exhibition featured 50 copies of lithographs, etchings and gravures by world-famous artists, including Mark Chagall, Pablo Picasso, and Salvador Dali.

In winter 2010, Bank Vozrozhdenie sponsored the seventh international festival of war films named after Sergei Bondarchuk, entitled “Volokolamsk Front”. Twelve feature-length films and over 20 documentaries competed for prizes, and the festival included a film evening and other events dedicated to the world of cinema.

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## IR contacts

Tel.: +7 (495) 620 9071
Fax: +7 (495) 620 1953
Web-site: http://www.vbank.ru
Email: investor@voz.ru

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