UzAuto

Perspectives of cooperation in

March 2018 The Republic of Country information • Independence gained in 1991 • Territory – 448,9 th. sq. km • Population - 32,6 mln. • Urban population – 50,6% • Average age – 27,1 • Rich base of raw materials and over 100 types of mineral resources

Economics (2017) GDP structure (2017)

• GDP (ppp) - 213 bln. USD 17% • GDP per capita - 6,6 th. USD

• Export – 12,6 bln. USD 50% • Import – 12,1 bln. USD 33% • Investment – 16 bln. USD • Economically active population – 18,1 mln. Services Industry Agriculture Economic stability GDP growth rate (in % to the prev. year) 9,5 9 8,5 8,3 8,2 8,1 8 8,1 8 7,8 7 7,3

5,3

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

• Surplus of state budget since 2005 • Over the years of independence • Balance of payments surplus since 2003 GDP has increased more than 5,5 times • External trade surplus since 2000 • Industrial output – 4 times • Total external debt does not exceed 16% of GDP • Over the past 10 years average annual growth of industry has • Internal public debt fell from 18% of been kept above 9% GDP in 2000 to 0% in 2014 Recent economic reforms in Uzbekistan President Strategic Economic Priorities 1. Stable foreign exchange rate; 2. Modernization of the economy; 3. Technological development; 4. Improvement of investment climate; 5. Private property protection mechanisms; 6. Improvement of Tax, Banking and Financial systems.

Recent results Substantial improve Improvement of • Tax system Return of Global Liberalization of Sustainable growth of investors Doing Business Banks, Financial and currency regulations of the economy protection ranking Political Institutions legislation

- No constrains in - World Bank Doing World’s 5th fastest - European Bank for Legislative acts and dividends and profit Business ranking: more growing economy in Reconstruction and decrees on: repatriation; than 60 points 2015-16 – and expected Development's returns in - “…foreign investors” - Exchange rate is improvement in the past to be in the TOP-3 by 2017; - “…guarantees and determined by the free 5 years; 2019 - World Bank, China measures to protect market; - We eliminated 160 Development Bank and rights of foreign - No constrains in hard licensing procedures and others increase credit investors” currency purchase. 19 activities in recent issuance. - “measures to improve years. the system of protection of legitimate interests of businesses” Company structure SC «Uzavtosanoat»

Production of Vehicles Production of component parts Financial & Education Services

Passenger cars UzAuto Founders (USA)

Leasing company Commercial Bank UzAuto Founders Medium buses and trucks General Motors UzAuto Asaka Bank Founders Itochu (Japan) 40 main suppliers Isuzu (Japan)

Turin Polytechnic University Heavy trucks and busses (Italy) UzAuto Founders MAN Truck&Bus (Germany) Turin Academic 160 medium and small suppliers lyceum in Polytechnic Colleges in city and Light Commercial Vehicles Localization level up to 80 % region UzAuto Founders PCA Peugeot Citroen Automobiles (France) Leading Automobile producers of UzAuto

Passenger vehicles Light Commercial Vehicle Busses and trucks Heavy trucks and busses

Production capacity: Production capacity: Production capacity: Production capacity: 300 th. units 16 th. units 5 th. units 5 th. units

GM Uzbekistan UZPCA SamAuto MAN Auto Uzbekistan Medium Busses Tractors and dump trucks Models: TGS и CLA 7 meter SAZ NP 37/21, HC 40 Damas Labo Matiz Minibus Load capacity : 10 - 40 tons Chassis cab (9-12 seats)

Spark/R2 Nexia R3 City and intercity buses Ambulance Cargo 8 meter LE 60 and HD 50 (refrigerator) MAN A22 (CNG), Coach RR2 (Diesel)

Cobalt/R4 Lacetti/Gentra

Chassis cab Minibus Medium trucks and (14-19 seats) UzAuto Trailer special vehicle Trailer production Malibu Captiva Isuzu NQR 71 PL and FTR 2.5 ton up to 8 ton

Heavy duty trucks Ambulance Cargo GSUV Load capacity : 10 - 40 tons

SOP 2019-CKD UzAuto production facilities and auto parts manufacturers • more than 40 big auto parts producers; UzAuto production facilities • more than 2 000 types of auto parts production; • annual turnover of more than 860 mln. USD; Asaka city: GM Uzbekistan - passenger cars • localization level up to 80%; • GM approved supplier base; Khorezm city: • high quality and management control systems (GMS, 5S, Kaizen). GM Uzbekistan Khorezm - MPV production Djizakh city: UzPCA, LCV production GM Powertrain Engines Samarqand city: Avtosanoat Cepla Polymer compounds 1. SamAuto - medium sized trucks and buses; Uzauto-Inzi Aluminum parts 2. MANAuto Uzbekistan - heavy duty trucks Kwangjin Autosystems Window regulators and 12m buses; Toshafus Fuel pumps East Butterfly Passenger car trailers 3. UzAutoTrailer - trailers and heavy duty trucks Uz-Chasys Lighting systems Avtosanoat Plast Plastic parts Uz-Koram Bumpers & IP Uz-Tong Hong Seats Uz-DongJu Paint & rubber parts Uz-Dong Yang Interior parts Uz-Saemyung Fuel tanks & stamping parts Uz-Dongwon Exhaust system UzKoje Wiring harnesses UzEraeClimate Control Radiators, HVAC Hapo Stamping parts UzAuto-Austem Steel wheels Avtoseats Seats Uz-Hanwoo Insulation parts Avtointeryer Horazm Interior parts Avtokomponent Pipes & mufflers Horazm Baraka Avto Exhaust System DAZ Batteries Idas Electronics CD/MP3 players Hozarasp Avto Stamping Parts Pitnak Plast Bumpers & IP Ferae Small stamping parts Avtooyna Automobile glasses Auto Glass Capsulated glasses UzEraeCable Automobile Wires Uz-Hanwoo Engineering Tools/molds UzEraeAlternator Alternators & Compressors Uz-Dong Yang Fergana Interior parts UzMinda Clusters & Security Systems Uz-Sungwoo Stamping parts Avtosanoat- Landi Renzo CNG kits Avtosanoat-Component Stamping parts Localized auto parts production

Engine & HVAC Interior Exterior ➢ Engines ➢ Door trim panel ➢ Bumpers ➢ Batteries ➢ Console & IP ➢ Door handles ➢ Alternators ➢ Seats ➢ Auto glass ➢ Compressors ➢ Steering wheel ➢ Wheel trims ➢ Radiators ➢ Noise insulating materials ➢ Moldings ➢ Heat exchange system ➢ Carpets ➢ Quarter window glasses ➢ Exhaust system ➢ Headliners Electrical Parts Steel parts Base technologies

➢ Wiring harnesses ➢ Chassis components ➢ Copper production ➢ Lightning system ➢ Shock beams ➢ Base polymers (PP/PE) ➢ Instrument cluster ➢ Stamped parts ➢ Aluminum casting ➢ Electronic Watch ➢ Tool-making ➢ Paint and varnish production ➢ Electronic sensors ➢ Steel wheels ➢ Polymer compounds ➢ Window regulator ➢ IP tie-bar ➢ Automobile wires ➢ CD/MP3 players ➢ Fuel tank ➢ Pipes for exhaust system Dealer network and sales markets

Traditional Markets New Markets Perspective Markets Russia USA Turkey Estonia Benin Iran Kazakhstan Kenya South Africa Iraq Libya Tunisia Indonesia Gabon Vietnam Belarus Mongolia Pakistan Korea Ghana Lithuania Burkina Faso Cameroon Ukraine China Madagascar Germany Georgia Lebanon UAE Egypt Cars Turkmenistan Jordan Côte d'Ivoire Afghanistan Buses Kyrgyzstan India Nigeria Trucks Azerbaijan Brazil Senegal Commercial Vehicles Armenia Angola Latvia Auto Components Moldova United Kingdom Tajikistan UzAuto auto parts export map

Russian Federation UK GAZ Group AvtoVAZ Charge Engineering Ltd - Insulation parts - Headlamps and Lighting systems - Engines - Stamping parts UAZ USA - Heater core GM - Wiring harnesses - Engines for aftersales market Korea GM Korea - Engine parts - Stamping parts - Window regulators erae Automotive - Wiring harnesses Young Shin Chemical - Weather strips

Brazil «GM Brazil»: - Lighting system - Stamping parts

Indonesia GM Indonesia China - Engines GM Shanghai - Engine parts Tax privileges on the investment to Free Economic Zones The location of Free Economic Zones of Uzbekistan

1. Navoi (Navoi region) 2. Angren (Tashkent region) 3. Djizakh (Djizakh region) 4. Khazorasp (Khorezm region) 5. Urgut (Samarkand region) 6. (Ferghana region) 4 2 7. Gijduvan ( region) 6 7 1 3 5 According to the Decree of the President of the Republic of Uzbekistan (#4853 and #4937), the privileges will be provided for a certain period depending on the investment volume: - From 300 thous. USD to 3 mln. USD – for 3 years - From 3 mln. USD to 5 mln. USD – for 5 years - From 5 mln. USD to 10 mln. USD – for 7 years - Over 10 mln. USD – for 10 years*

The exempted taxes are: • Land tax (depends on the area); • Property tax (3,5%); • Income tax (8%); • Road fund (1,4%); • Taxes on improvement and development of social infrastructure (8%); • Single tax payment (for microfirms and small enterprises) (5%); • Import custom payments (10-30%); • Import VAT (20%).