ANNUAL REPORT

2007

Contents | 3

EDUCATIONAL PROGRAMMES .......................................... 5

RESEARCH, PARTNERSHIPS.............................................. 17

PUBLIC PROGRAMME ....................................................... 23

CAMPUS CONSTRUCTION................................................ 29

GOVERNANCE, HUMAN RESOURCES ............................. 33

FINANCE, IT ....................................................................... 35

ANNUAL REPORT

2007

SKOLKOVO programmes 1 | 5

SKOLKOVO key educational programmes are Executive Education (launched in 2006), Executive MBA (to be launched in January 2009) and Full�time MBA (to be launched in September 2009). In 2007, open enrollment and company�specific Executive Education programmes significantly developed. Key elements and parameters of Executive MBA were approved. Design and structure of the school’s most innovative programme, Full�time MBA, were finalized.

ANNUAL REPORT

2007

Executive Education

Executive Education programmes became the first educational product of the Moscow School of Management SKOLKOVO. The proposal developed by the school emphasizes the combination of expertise from the leading Western and Russian professors and presentations by practicing entrepreneurs and outstanding leaders from the world of arts and sports willing to share their unique experience. Last year SKOLKOVO organized 22 educational programmes for 500 participants from different areas of business. The total number of school days exceeded 70. The total income from the Executive Education programmes in 2007 was US$2.2 million.

SKOLKOVO Executive Education concept

In 2007, the Moscow School of Management SKOLKOVO started conducting Executive Education programmes. After the preliminary market research it was decided to offer two types of programmes – company�specific and open enrollment. The curriculum of SKOLKOVO programmes is directed towards the needs of the school's target audience: senior managers and executives of medium and large companies. The SKOLKOVO programmes focus on their practical application value. All programmes use active learning methods: lectures and business�case studies like in many other business schools are complemented by interactive discussions and role�playing. Throughout the year, new tools were added to the programmes: for example, guest visits to successful businesses were organized and virtual business simulators were used.

In 2007, the Moscow School of Management SKOLKOVO tested the work of 9 Western and 6 Russian professors. Among them were Pierre Casse, Berlin School of Creative Leadership; Zeger Degraeve, LBS; Ingemar Dierickx, INSEAD; Paul King, Whaton Graduate School of Business; Christoph Loch, INSEAD; Jean�Francois Manzoni, IMD; Madan Pillutla, LBS; John Stopford, LBS, and others. SKOLKOVO professor Elizabeth Sadova was the author and teacher of most company�specific programmes held by the school in 2007. All Executive Education programmes were supplemented by master�classes delivered by business experts and/or outstanding leaders from the world of arts and sports. In 2007, executives of the following companies were invited to participate in SKOLKOVO programmes as speakers: Bosco di Ciliegi, Deutsche Bank, Global Business Network, IBS, McKinsey & Company, ProSports, AMEDIA, VTB Bank, VimpelCom, HydroOGK, Gradient, RAO UES of Russia, TNK�BP, Troika Dialog and FGC UES. Among the other participants were: Evgeny Primakov, the President of the Russian Chamber of Commerce and Industry, Oleg Tabakov, the Director of Moscow Academic Art Theatre, Vladimir Spivakov, the Artistic Director and Principal Conductor of the National Philharmonic and other experts. See the Appendix for the list of speakers, who took part in open enrollment and company�specific Executive Education programmes in 2007 (Table 1).

SKOLKOVO programmes 1 | 6�7

Open enrollment programmes

SKOLKOVO open enrollment Executive Education programmes were launched in March 2007. In total, last year the school conducted 8 open enrollment programmes for 156 participants.

To conduct the programmes, the school invited professors from leading Western business schools. SKOLKOVO open enrollment Executive Education programmes of 2007 and a schedule for 2008 are presented in the Appendix (Tables 2 and 3).

Company�specific programmes

SKOLKOVO company�specific programmes were launched in December 2006. The programmes conducted are of two main types:

• Special programmes tailored for each corporate client;

• Standard programmes from the generic Executive Education programme curriculum.

Special corporate Executive Education programmes are a unique product created upon the targets and tasks set by the client. The key audience characteristics are known to the school prior to the programme development. This lets the school select the optimal tool set. The special programmes are normally conducted in several stages, which allows for sufficient topic coverage and higher efficiency of working with the audience. Upon the results of each stage, the programme is analyzed in detail and the recommendations are prepared.

SKOLKOVO also opened an Internet Forum for its company�specific programmes’ participants to constantly keep in touch and provide feedback. In 2007, the special company�specific programmes were conducted for FGC UES and Gradient. Standard programmes from the generic Executive Education programme curriculum were conducted for employees of Wimm�Bill�Dann, HydroOGK, NOVATEK, Troika Dialog and FGC UES.

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2007

Executive Education development strategy for 2008

In 2008, SKOLKOVO faces a number of key tasks for enhancing the Executive Education Programmes portfolio: 1. Development of SKOLKOVO's own

programmes and including them into the set of generic programmes for further distribution and promotion.

The first of these SKOLKOVO programmes will be "Doing business in Russia". The programme's author is SKOLKOVO Professor Elizabeth Sadova. 2. International cooperation on Executive

Education Programmes. Development of joint Executive Education Programmes on general management together with the world’s leading business schools will help to build client relationships with international companies, increase the number of participants, and use the consortium format in educational activities. Fuqua Duke and Kellogg are considered as possible partners.

3. Updating the delivery format of the existing

programmes. Upon the results of 2007, the list of actions was developed for SKOLKOVO standard programmes enhancement. For example, in 2008 the open enrollment programmes will be downsized: they will be moved to a two�day format. The number of master�classes conducted by business leaders at four or five�day company�specific programmes will be increased. The new educational methods, approaches and tools will be tested, to be included in SKOLKOVO programmes. 4. The faculty will be increased by adding Russian

and foreign professors. In 2008 SKOLKOVO's partnership with leading world business schools’ teachers will grow. New professors will participate in the 2008 programmes: Rami Zwic (HKUST), J.B. Kassarjian (Babson) and Rob Coffee (LBS). In addition, in 2008 the search of Russian professors for engagement in full�time work at the school will continue.

22 Executive Education programmes for over 500 participants in 2007

Executive Education sales for 2007 totaled US$2.2 million

Number of Executive Education propgrammes planned for 2008 – 40

SKOLKOVO programmes 1 | 8�9

Appendix / Executive Education

Table 1. Speakers at SKOLKOVO Executive Educaiton programmes in 2007.

Speaker Position Company

Aleksandr Akopov President AMEDIA

Olga Dergunova Member of the Board of Directors VTB Bank

Aleksandr Izosimov CEO VimpelCom

Anatoly Karachinsky President IBS

Anna Kharnas PR Director Troika Dialog

Vitaly Klintsov Partner McKinsey & Company

Mikhail Kusnirovich Head of Board of Directors Bosco di Ciliegi

Gor Nakhapetian Managing Director Troika Dialog

Leonid Novoselsky CEO Gradient

Leonid Parfenov Editor�in�chief "Russian Newsweek" magazine

Evgeny Primakov President Chamber of Commerce and Industry of the RF

Aleksandr Prokhorov Associate Professor, Department of Management

Yaroslavl State University

Oleg Romantsev Honored trainer of Russia

Charles Ryan Chief Deputy Director Deutsche Bank

Andrei Sharonov Managing Director Troika Dialog

Vyacheslav Sinyugin President of the Board HydroOGK

Kris Sliger Vice President, Strategy and New Business Development

TNK�BP

Vladimir Spivakov Artistic Director National Philharmonic of Russia

Oleg Tabakov Art Director Moscow Academic Art Theatre

Tatiana Tarasova Honored trainer of Russia

Pavel Teplukhin Managing Director Troika Dialog

German Tkachenko President ProSports

Mikhail Tuzov Global Business Network FGC UES

Ruben Vardanian Chairman of the Board of Directors and CEO

Troika Dialog

Galina Volcheck Art Director "Sovremennik" Theatre

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2007

Table 2.

SKOLKOVO Open Enrollment Executive Education Programmes, 2007.

Date Topic Professor, school

March Strategic Leadership: The people side of strategic leadership

Pierre Casse, Berlin School of Creative Leadership

April Building Partnership Relations Paul King, Wharton Graduate School of Business

May Change Management Jean�Francois Manzoni, IMD

June Executive Negotiation Skills Ingemar Dierickx, INSEAD

July Strategic Project Management Christoph Loch, INSEAD

September Strategic Leadership: The people side of strategic leadership

Pierre Casse, Berlin School of Creative Leadership

November Decision Making for Leaders Zeger Degraeve, LBS Madan Pillutla, LBS

December Strategic Thinking Jonh Stopford, LBS

Table 3.

SKOLKOVO Open Enrollment Executive Education Programmes, schedule for 2008.

Date Topic Professor School

February Strategic Thinking John Stopford LBS

March Negotiation Strategies for Leaders Rami Zwick HKUST

April Decision Making for Leaders Zeger Dagraeve, Madan Pillutla LBS

April Change Management J.B. Kassarjian Babson

June Strategic Project Management Christoph Loch INSEAD

June Executive Negotiation Skills Ingemar Dierickx INSEAD

July Doing business in Russia Elizabeth Sadova SKOLKOVO

September Leadership Pierre Casse Berlin School of Creative Leadership

SKOLKOVO programmes 1 | 10�11

Executive Education programmes: participants’ feedback

September 19�20 The People Side of Strategic Leadership Open enrollment programme Professor Pierre Casse, Berlin School of Creative Leadership Marina Medvedeva, Head of Management Board and Internal Committees Support, TNK�BP

"Nothing superfluous, everything was to the point, competent, insightful, and most importantly, applicable to your real life."

October 29�30 Executive Negotiation Skills Company�specific programme for HydroOGK Professor Ingemar Dierickx, INSEAD Vasily Zubakin, Deputy Chairman of the Management Board, Hydro OGK

"Both the main lecture and the case studies were useful, as well as the presentation by an invited expert. The recipe for success is to get all the participants involved as much as possible and, of course, the charisma of the tutor. His academic, teaching and life experience is very strong."

November 12�15 Decision�Making for Leaders Open enrollment programme Zeger Degraeve and Madan Pillutla, London Business School Andrei Girichev, Managing Director, Deutsche Securities, Head of Securities Trading

"I enjoyed the program very much. It helped systematically arrange the segmented theoretical and practical knowledge that I had in decision�making. The examples and cases reviewed showed it once again very clearly that: having analyzed a situation what is important is not to understand why a mistake was made, but to avoid it in the first place."

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2007

SKOLKOVO programmes 1 | 13

Full�time MBA The SKOLKOVO Full�time MBA programme is designed for people aspiring to become leaders in the creation of new and the development of existing social and business projects. The principal method of preparing students within the framework of the SKOLKOVO MBA will be the realization, with the guidance of lecturers, of a series of projects of interest to Russian and international companies as well as public and governmental organizations.

In 2007, the structure and methodology of the SKOLKOVO Full�time MBA programme were developed. The programme will be realized on the principles of a project�oriented approach to education. It assumes that students will get experience not only in Russia but also in India/China and Europe/USA.

SKOLKOVO MBA: learning through projects

The calendar length of the programme is 16 months (September to December). The total length of educational activity is 15.5 months. The launch of the programme is planned for September 2009. Aside from traditional business courses, students will gain key managerial skills: they will learn to analyze situations, find solutions to identified problems and plan the implementation of their decisions.

During the span of the programme, the project�oriented work of the students will be accompanied by workshops for communication, negotiations, public speaking, teamwork, as well as by presentations and master�classes by known businessmen, politicians, scientists and artists, demonstrating the real management success stories.

INTRO courses

GOVERNM. PROJECT

STAGE

ABROAD

CORPORATE PROJECT

STAGE

ABROAD

ENTREPR. PROJECT

CONSULTANCY, TRAININGS, MASTER-CLASSES

Start-up

INCUBA

TOR

VentureFund

ANNUAL REPORT

2007

SKOLKOVO Full�time MBA structure

From the structural point of view, the programme will consist of 6 modules: 1/ Block of introductory courses Duration – 15.5 weeks. At this stage, students will study the main set of business disciplines, such as finance, marketing, accounting, production management, human resources management, etc., with the goal of learning main concepts, terminology and instruments. Upon the completion of the period, an intensive two�week training on leadership and teamwork is planned. 2/ Project in social/governmental sphere Duration – 11 weeks. During this module, teams of 5 students each will be offered to analyze a situation and come up with recommendations and a strategic plan for development of territories, social infrastructures or non�commercial organizations. This exercise will give the students an opportunity to broaden their perception of managerial activities and study the social�governmental environment. 3/ Project in India/China Duration – 8 weeks. This project will be completed abroad. Its aim is to practice in doing business in emerging markets. At this stage, students will also work in teams. They will have to find ways of intercultural communication, learn current and economic history and political/social situation in a country. During their stay in India/China, students must learn to work in a multicultural environment and study the country�specific component of handling a business.

4/ Project in corporate sector Duration – 11 weeks. During this project, teams of students will have to develop offers and implementation plans for solution of a certain task/problem that an existing company has been challenged with. 5/ International internship Duration – 8 weeks. Students will be offered to complete an internship with a company, preferably in Europe or the US, in order to have a possibility to compare the emerging and developed economies. Also, this internship may be used as an opportunity to search a future placement for students who choose to continue their managerial career in an existing organization. 6/ Entrepreneurial project Duration – 11 weeks. During the course of this project, students will have to independently choose a topic and gather a team in order to create a business plan for an implementation of an original idea, a launch of a technological invention or a start�up project for an existing organization. The best business projects will be eligible to receive an investment from the SKOLKOVO venture fund. Those students that receive financing for their own projects will also get an opportunity to work on the basis of the SKOLKOVO business hatching unit for 2�3 months after the formal end to their MBA programme.

SKOLKOVO programmes 1 | 14�15

Programme development

In 2007, the education process expected results were developed for the Full�time MBA programme in general and specifically for every block (competences that every graduate must have at the end of the programme). Several alternative scenarios of realization of the programme and an approximate workload of students and teachers were calculated, as well as the requirements for the position of the manager of student projects. The logistics and infrastructure necessary for the realization of the programme will be thoroughly developed over the course of 2008, as well as the content of the introductory module courses and the list of professors who will participate in the realization of the programme. The admission process will also start in 2008.

Full�time MBA admission process will start in September�October 2008

In September 2009 SKOLKOVO Full time MBA programme will open

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2007

Research, Partnerships 2 | 17

SKOLKOVO plans to advance its own research and develop partnerships with leading business schools worldwide. In accordance with the school’s mission, SKOLKOVO intends to become a source of practical knowledge on emerging markets – first and foremost, those of Russia, India and China. In 2007, primary directions, problems and principles of the Moscow School of Management SKOLKOVO research programme were determined, and the first joint projects were realized, including those based on global partnerships.

ANNUAL REPORT

2007

SKOLKOVO's first research projects and partnership relations development The growth of dynamic companies in emerging markets was identified as a major object on SKOLKOVO’s medium�term research agenda. The quantitative study of Russia’s leading multinational enterprises is the first research project in this area. The study was conducted as a part of “Emerging Markets Global Players”, an international project initiated by four business schools: SKOLKOVO, Fundacao Dom Cabral (Brazil), Indian Business School and Fudan University (China), and coordinated from New York by the Columbia Program on International Investment. In 2008, Argentinean, Malaysian, Mexican, Israeli, Slovenian, Turkish, South Korean and South African business schools will be joining the project. The first step of the international project is to prepare national ratings of leading multinational companies measured by assets abroad. The results will be summed up and allow to have a rating of the 500 largest transnational corporations from emerging markets. The ranking is planned to be renewed annually.

SKOLKOVO's ranking was presented on December 10th. Energy giants Lukoil and Gazprom lead the list, with mining & metal majors Severstal and Rusal following. The study showed that Russia’s top 25 multinationals have nearly US$60 billion in assets abroad and foreign sales of nearly US$200 billion; they employ a total of 130,000 people adroad; and each of these three indicators has more than doubled in two years. The release of the rankings generated a lot of coverage and commentary in the media, both in Russia and internationally.

The Vedomosti December 12th, 2007 “Russians advance to Europe” In 2008, within the framework of the multinational project, on April 28�29th, the first conference from the Five Diamond Conferences series will be held in New York. It will be dedicated to global expansion of companies from countries with emerging markets. SKOLKOVO is one of the co�organizers of this event.

Research, Partnerships 2| 18�19

Research on Educational Policy in Russia SKOLKOVO sees itself as an active participant in the process of modernization the educational policy of the Russian Federation. The SKOLKOVO’s work “Business Education at the Turn of Centuries: Challenges of Time and Trends of Development” prepared by Vladimir Mau and the school's faculty, was a starting point in developing the SKOLKOVO’s input in this debate. The development of proposals regarding the modernization of the higher education system in Russia is an important part of SKOLKOVO’s intellectual agenda. In 2007, there were a number of presentations made to different expert and decision�making audiences, and an article was published in “Expert” magazine (“Higher Education: 2008�2016 agenda” by Andrei Volkov, Dmitry Livanov and Andrei Fursenko). Among others, the presentation “Russian Higher Education: Competitiveness and Practicality” was made by SKOLKOVO Dean Andrei Volkov to the First Deputy Prime�Minister Dmitry Medvedev on July 27th.

“Russian Capital Market. Facts and Events” The first report entitled "Russian Capital Market. Facts and Events" was prepared in cooperation with the National Association of Securities Market Participants (NAUFOR). It includes a comprehensive factual picture of the current state of the capital market in Russia. The overview was called on to become a base for analyzing the condition of the Russian capital market, and contains descriptions of its key elements: instruments, participants, infrastructures, systems of regulation and supervising, as well as main events.

Later, such reports will be published on a constant basis, every six months. Currently, a new version of the review is being prepared.

ANNUAL REPORT

2007

SKOLKOVO Research Strategy

The research strategy will be implemented around Centres of Excellence (COEs), with each centre focusing on a particular area of study and drawing its intellectual capital from different academic disciplines. Senior academics with global credibility in their respective areas of focus will be attracted to develop the intellectual environment and agenda for each of the centres. SKOLKOVO faculty will be structured around these interdisciplinary research centres. It is planned to set up 5 COEs with broad intellectual agenda: 1. Emerging markets

It is expected that the growth of the world economy will be generated by emerging markets. Given that, SKOLKOVO’s task is to develop a knowledge base around these markets and groom and coach entrepreneurial leaders for fast�moving economies like Russia’s. 2. Energy

Russia is the world’s energy powerhouse. Therefore research centre focusing on natural resources and energy, in particularly, can become the country’s strategic think�tank encompassing energy policy, the geopolitical role of energy resources, alternative energy and corporate social responsibility, energy economics and industry structure, sustainable development, etc.

3. Leadership / entrepreunership

SKOLKOVO aims to develop and coach entrepreneurs and entrepreneurial leadership. Therefore, a research centre in this area is natural. Little is known about effective leadership in emerging economies and, particularly, entrepreneurial leadership in these conditions. There is a real opportunity for SKOLKOVO to excel and make global impact in this area. In 2007, SKOLKOVO identified successful entrepreneurial leaders in Russia, India and China in order to analyze their distinctive profiles and success stories. 4. Innovation, creativity and ingenuity

The research agenda in this centre will focus on branding, physical product design and visualization, new business/revenue models, etc. The aim is to stimulate creative thinking and learn how it can be applied and developed in entrepreneurial settings in emerging markets. 5. Education and learning

This centre will focus on educational pedagogy and innovation in that area, new technologies in knowledge dissemination, educational policy and reform in emerging markets, entrepreneurial learning models, and case development. On the last of these, SKOLKOVO envisions developing cases related to Russia and potentially setting up a case clearing house for emerging markets.

Research, Partnerships 2| 20�21

Expertise of the best B�schools

• Joint programmes • Joint research • Student exchange

ANNUAL REPORT

2007

Public programme 3 | 23

The Moscow School of Management SKOLKOVO started the year 2007 by continuing a series of discussions on key questions of modern business education and trends in economics, business and the social sphere. To this dialog with the expert community and the public, the school brought thought�leaders, whose opinions allowed to test SKOLKOVO's innovative approach and its right to follow its own, "third" way. Following the successful discussion at roundtables first in Davos and then in Singapore, SKOLKOVO's task became to expand its audience and topics discussed.

ANNUAL REPORT

2007

Dialog on business education issues worldwide

In 2007, the Moscow School of Management SKOLKOVO became a public forum, where interested sides could exchange their opinions on the development of human potential and share their vision on the future of the business education. Discussion with world’s leading experts in different fields was opened by the school in Davos, and then continued in Singapore and Dalian.

Davos, World Economic Forum

January 26th

On January 26th, at the World Economic Forum in Davos, the Moscow School of Management SKOLKOVO initiated a roundtable on “Developing human potential: needs and risks � searching for balance”. Able to freely exchange opinions, businessmen, politicians and academics discussed problems of modern business education and marked the extent of the intellectual potential's effect on global economy. The Chairman of SKOLKOVO International Advisory Board, First Deputy Chairman of the Government of the Russian Federation Dmitry Medvedev, participated in the round table. In his speech, he stressed the importance of creating modern business schools and the need for “uniting intellectual and financial resources – both governmental and private.”

Partners � co�founders of the school, members of SKOLKOVO International Advisory Board, and invited presidents and professors from world’s leading business schools and universities, all took part in the meeting.

Singapore, Singapore�Russia Business Forum

March 5th

At the II Singapore�Russia Business Forum, the Moscow School of Management SKOLKOVO continued a discussion on business education started in Singapore. On March 5th, a roundtable “Globalization and the nature of business education” was held in Singapore. The meeting was organized by SKOLKOVO in conjunction with the Singapore Management University (SMU). Forum guests, SMU professors and experts invited by SKOLKOVO became participants of the roundtable and exchanged their experience and knowledge on the innovative approaches in business education.

Public programme 3 | 24�25

SKOLKOVO Discussion club

In 2007, the meetings of the SKOLKOVO Discussion club continued. On April 18th there was a meeting with Dr. Ichak Adizes, a recognized expert in the field of management and an author of many books on organizational management, which have become global bestsellers. Doctor Adizes introduced his unique program on change management that is successfully implemented in major international corporations and government organizations as well as middle�sized businesses. Participants were especially interested in Dr. Adizes' vision of leadership phenomenon in modern organizations, as well as his opinion on the problem of effective company management. On May 21st a master�class for Russian business owners and top managers, “Dialog with Jack Welch”, was held in Moscow. Jack Welch is a former CEO of General Electric. His first visit to Russia was organized by Troika Dialog in partnership with SKOLKOVO. Meeting with Jack Welch not only evoked a lively response from business circles, but resonated widely through media.

On November 29th, the SKOLKOVO Discussion club organized a meeting with Professor Jonathan Gosling, a world�famous specialist in the field of management, Director of Exeter University's Centre for Leadership Studies, UK, and author of the bestseller "Nelson's Way. Leadership lessons from the great commander." During the meeting, professor Gosling and participants exchanged opinions on the phenomenon of leadership, and together they tried to find answers for questions that all successful managers eventually have to face. This format of familiarizing oneself with the latest ideas on management, business and economics proved to be successful, and in 2008 SKOLKOVO will continue to host the meetings of the Discussion club at least once per quarter. The school plans to offer new perspectives and interesting ideas, extend the club's audience, and use the format of the Discussion club in the client programs of the school.

ANNUAL REPORT

2007

International Advisory Board

The key objective for further development of an innovative educational system is the improvement of executive staff training efficiency. The solution to this problem depends a lot on the active dialogue between the government, businesses and the higher school of management. One of the places for this dialogue are the meetings of the SKOLKOVO International Advisory Board. They are intended to not only strategically assess the dynamics of the project, but also to touch on long�term perspective directions for developing business education in Russia as well as worldwide. On February 9th the first meeting of the SKOLKOVO International Advisory Board in 2007 took place. The agenda featured questions regarding the professors and staff selection, the educational process enhancement and creation of tools for long�term financing of research and education in SKOLKOVO. Upon the results of the meeting, a decision was made to actively develop research activities of the school and create the SKOLKOVO Endowment Fund, the potential of which will be used for financing the school's research, holding more roundtables and conferences, as well as for educational scholarships and grants.

On June 6th, the second in 2007 session of the SKOLKOVO International Advisory Board took place. In order to participate in this session as a new member of the Board, Minister Mentor Lee Kuan Yew of the Republic of Singapore, who is rightfully regarded as the father of Singapore's economic miracle, arrived in Moscow. During the meeting, the trends and problems of business education in the country and worldwide were discussed, as well as SKOLKOVO's study titled “Business Education at the Turn of Centuries: Challenges of Time and Trends of Development”. Both of 2007's sessions were conducted by the First Deputy Chairman of the Government of the Russian Federation, Chairman of the SKOLKOVO International Advisory Board Dmitry Medvedev. Partners � co�founders of the school and members of the Coordination Council of SKOLKOVO took part in these sessions as well. In 2007, the SKOLKOVO International Advisory Board continued to be formed. New members included: • Lee Kuan Yew, Minister Mentor of the Republic of

Singapore • Rajat Kumar Gupta, Senior Partner Worldwide of

McKinsey&Company • Mark Fuller, Chairman and CEO of Monitor Group • Noubar Afeyan, Managing Partner and CEO of

Flagship Ventures. Meetings of the SKOLKOVO International Advisory Board are to be held twice a year.

Public programme 3 | 26�27

SKOLKOVO Gala Dinner

In the evening of June 6th, SKOLKOVO's Gala Dinner took place in the GUM, with more than 200 guests, among whom representatives of the government, businesses and experts. The evening began with speeches by Dmitry Medvedev and Lee Kwan Yew. The objective of the evening was, first and foremost, to attract attention of the business community to SKOLKOVO's work. In 2008 SKOLKOVO will continue its public programme and will hold in June a conference, which is designed to become the school's annual forum. The theme for 2008's conference is “Doing Business in Russia”. See the end of the report for th SKOLKOVO calendar of events for 2008.

The school's first anniversary

On September 19th, a meeting of Partners � co�founders of SKOLKOVO took place to mark the one�year anniversary of the moment when the school's first stone was laid, and to sum up the results of the first year of the school's work. In the morning of that day, a press�breakfast was held, where journalists were introduced to the SKOLKOVO's new Dean, Wilfried Vanhonacker. The meeting of Partners � co�founders took place at the construction site of SKOLKOVO where participants could gauge the dynamics of the school campus' construction. For this day, the school's site www.skolkovo.ru opened a web�camera section, allowing visitors to see the school being built in real time. The First Deputy Chairman of the Government of the Russian Federation, Chairman of the SKOLKOVO International Advisory Board Dmitry Medvedev, who participated in the meeting, commented on the dynamics of the school's construction and the school's success in organizing executive education programs.

In 2007

12 events

Over 500 publications on school in Russian and international media

Active work of SKOLKOVO Discussion club, start of publishing programme

ANNUAL REPORT

2007

Publishing programme

In 2007, the school developed and clarified the principles and foundations of its publishing program, worked out a set of chief prospective types of products to be published by the school. These are the following:

1. Translating works of foreign authors (fundamental works as well as bright modern works about leadership, entrepreneurship and new trends)

2. Translating Russian authors' works to foreign languages

3. Research work done by the school

4. School textbooks – prospectively

5. School magazine – prospectively In 2007, SKOLKOVO published an analytic study “Russian Capital Market. Facts and Events”, prepared in partnership with the National Association of Stock Market Participants (NAUFOR). The book of Alexander Prokhorov “The Russian Management Model” is completely translated and ready to be published in English. The book will be published in March of 2008, and will be presented at the III Russia�Singapore Business Forum in Singapore.

In 2007, jointly with "Alpina Business Books" within a license agreement, SKOLKOVO publishing plan for translating books by foreign authors was designed. The plan includes both fundamental works and modern innovative publications. Release schedule for SKOLKOVO series books in 2008:

• “Classic Drucker. Essential Wisdom of Peter Drucker from the Pages of Harvard Business Review”, April 2008

• “The Culture Code: An Ingenious Way to Understand Why People Around the World Live and Buy as They Do” by Clotaire Rapaille, April 2008

• “Hostage at the Table: How Leaders Can Overcome Conflict, Influence Others, and Raise Performance” George Kohlrieser, April 2008

• “The Age of Turbulence”, Alan Greenspan, June 2008

• “Inside the Economist's Mind. Conversations with Eminent Economists” edited by Paul Samuelson and William A. Barnett, June 2008

Planned for 2008

SKOLKOVO first conference � “Doing Business in Russia” Forum (June 4th)

Extension of format and audience of SKOLKOVO Discussion Club

Launch of SKOLKOVO publishing programme

Marketing roll�out of ЕMBA and FT MBA programmes

Campus construction 4 | 29

The official start date of the SKOLKOVO campus construction is September 21st, 2006. As of the end of 2007, the construction of the pile field was completed, the foundation was 90% built, and the erection of the pillars of the ground floor started. The implementation of the project is being accomplished in record time due to the parallel processes of construction and project planning. This innovative way of building will allow to complete the campus construction within the planned deadline and to welcome new students to SKOLKOVO in 2009. The total area of the buildings is 60 thousand square meters. The construction site is located in the Odintsovo district of the Moscow region, on the first kilometer of the Skolkovo highway, between the villages of Marfino and Skolkovo. One may follow the construction in real time though a web�camera at the school’s official site www.skolkovo.ru.

ANNUAL REPORT

2007

Design and Construction Works

At the beginning of 2007, the adaptation of the Architectural Concept, prepared by the architectural workshop Adjaye/Associates to the Russian standards and the optimization of the area and architectural / construction specifics was completed. By the end of the first half of the year, the layout and arrangement was developed and confirmed and the choice of the final position of the lecture halls, ensuring the optimal position, was finished. During the second half of the year, the marketing research of the facade systems, furniture and interior design began. The development of possible solution for the autonomous energy center started. The detailed development of technical specifications for the design of internal building engineering systems and the intrasite engineering communications continued. The activities began for organizing, coordinating and controlling the process of design of the building underground part. At the same time, the planning of the above ground part of the building, the development of different solutions for the building site layout and solutions for erecting the load�bearing monolith reinforced concrete works of the building took place.

Preliminary works and the beginning of the construction

Parallel to the project design stage, during the first half of 2007, the geological and geophysical analysis of the soil, which began in 2006, continued, and demonstrated the complexity of the soil structure and its water saturation. In order to speed up the process of obtaining the ground data, the geologists passed the intermediate ground data and results of laboratory tests for the planning of the piling foundation and concrete base on to the project planners.

The location of the main building of the school was moved to a more favorable one, in terms of the piling field, which moved the beginning of construction from March to the end of May of 2007. In April, the tender proposal of the building organization for the piling work completion contract took place. Over the course of a month (mid�April to end�May) the preliminaries of the piling work were completed: the preparation of the trench, lowering of the soil water, preparation of temporary roads and structures, the preparation of special concrete plates in the trench for heavy machinery. The contractor company mobilized and started on the piling work on May 25th. Before the end of the first half of the year, geological investigations for the main building location were completed, the issue of supplying water to the site was solved and the construction of builder headquarters was completed. The management team moved to the construction site. In June, preliminary qualification of the participants was completed and the tender for the General Contractor was open. By mid�September, the pile field preparation was completed. On October 1st, 2007 the contract with the general contractor (“PSP�Farman”) was signed, and the preparation of the foundation plate and development of building documentation began. An order by the general contractor was opened to allow the work of erecting the load�bearing and the enclosing structures of SKOLKOVO (the first stage of construction). At the end of the year, the construction of the monolith reinforced concrete base plate was 90% completed and the ground floor was 40% completed.

Campus construction 4 |30� 31

Plans for 2008

In 2008, the management team responsible for the construction of the SKOLKOVO campus plans to: • Receive the positive conclusions from the

Glavgosexpertiza of Russia • Receive the technical conditions necessary to

connect the object to engineering communications

• Finalize intrasite utilities and communications

(except for those of the professors' village) • Complete the work on load�bearing and

enclosing structures of the school building (including work on the roof)

• Launch the water heating and electricity

supplying systems inside the building of the business school from direct current upon a permanent scheme (with the exception of heating equipment and electric equipment)

• Start first�phase landscaping work • Complete the fencing work of the complex • Complete of the walls and partitions inside the

business school building • Complete the montage of the front systems of

the business school in two stages

Actual construction works started in May 2007

By the end of 2007, the construction of the monolith reinforced concrete base plate was

90% completed and the ground floor was 40% completed

Building frame will be completed by autumn�2008

ANNUAL REPORT

2007

Governance, human resources 5 | 33

People are the most important asset of any organization, especially of one at a dynamic growth stage. Staff recruitment was an important task in the past year. Considering the pace of the SKOLKOVO project, staffing, team�building and development of internal policies and procedures are to become key directions for 2008.

ANNUAL REPORT

2007

In 2007, the SKOLKOVO Management Committee was formed. Wilfried Vanhonacker joined the President of SKOLKOVO, Ruben Vardanian, and the Dean, Andrei Volkov. He officially took the position of Dean on September 19th, 2007. Professor Vanhonacker is one of the leading global experts in the field of marketing, and a specialist on emerging markets. He was one of initiators behind the China Europe International Business School (CEIBS) of which he was Dean and Vice�President. The Management Committee is responsible for strategic and operative guidance of the Moscow School of Management SKOLKOVO. The Committee relies on the expertise and experience of the International Advisory Board and the Coordination Council of the school. Committees of the Coordination Council, which include the representatives of the school's Partners�co�founders, and independent experts, support SKOLKOVO’s decision�making process. In 2007, active Committees included the construction, finance, publishing, marketing and PR committees. A Committee on information technologies is being formed.

Plans for 2008 include a creation of SKOLKOVO Academic council, which would become the expert center for key questions on educational programs and developing the school's research activities. Within a year, the SKOLKOVO team grew significantly. The organizational structure of the school was formed. Tasks and priorities were set, and responsibility was divided among departments; also key positions for staff recruitment were determined. By the end of the year, based on results of budget planning sessions of the school, a perspective plan for staff recruitment in 2008�2009 was approved.

Finance, IT 6 | 35

Results of the Finance Department in 2007

1. A 15�year strategic development plan of the school was finalized and approved.

2. First�ever Endowment Fund in Russia was registered. Documents and measures necessary for the functioning of the fund were worked out. A contract with the first contributor to the fund, Pricewaterhouse Coopers, was signed.

3. Significant work with banking institutions concerning the financing was accomplished.

4. New organizational structure of the holding was developed, expertise of fiscal and legal risks was completed.

5. Systems of management accounting and financial control were installed.

6. Set of financial policies was worked out.

7. Pitching process on the most important procurement activities of the school was launched.

Results of the IT�department in 2007

1. IT�concept of SKOLKOVO was developed.

2. A tender for a System integrator that will realize the school’s IT�concept was worked out and launched.

3. An Expert Council and a Tender Committee were created. They are to control the project works.

4. Members of the IT�Committee were preliminarily selected. The first meeting of the committee is planned for the beginning of March 2008 (to sum up and approve the results of the tender).

ANNUAL REPORT

2007

SKOLKOVO calendar of events for 2008 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2009

International Advisory Board

Publishing programme

SKOLKOVO Discussion Club

Coordination Council meetings (tbc)

Forums, conferences

June 4January 29 January 2009

5 Diamonds ConferenceApril 28-29

III Russia-SingaporeBusiness ForumMarch 31-April 2

The Russia ForumJanuary 29-31

Peter DruckerClotaire RapailleGeorge Kohlrieser

Alan Greenspan

Paul Samuelson & William Barnett

January 29Discussion Club withJames Martin

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2009

SKOLKOVO HR Forum

Alexander Prokhorov

Heating system is activated

The building frame completed

Campus opening

Campus construction

“SummerDavos”Tianjin, China, 25-27 September 2008

Announcement ЕМВА (tbc)

Announcement FT MBA Launch FT MBA

Launch ЕМВАSchool’s birthdaySeptember 21

Pacific Ocean Economic CongressJuly (tbc)

“Doing businessin Russia”ForumJune 4

ANNUAL REPORT

2007

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