ULYANOVSK REGION CONNECTING BUSINESS AND INNOVATIONS UNIQUE LOCATION OF THE REGION REGION AT THE CROSSING OF LOGISTIC ROUTES SAINT PETERSBURG KRASNOYARSK Transport accessibility NOVOSIBIRSK ULYANOVSK 2 international airports HAMBURG

PRAGUE ASTANA ZABOYKALSK Moscow (SVO) - Ulyanovsk (1h 15m) PARIS MUNICH ASTRAKHAN 3 ights everyday Moscow (VKO) - Ulyanovsk VLADIVOSTOK 6 ights everuday ISTANBUL BEIJING Railway unit connecting Europe and Asia SEOUL

TEHERAN TOKYO Access to the federal highway М-5 «Ural» SHANGHAI

ULYANOVSK REGION FEDERAL DISTRICT Developed industrial base ULYANOVSK HONG KONG 1,24 mln people population R - 1000 km. 44 million inhabitants 37,2 thousand sq. m total area 38% of effective demand of the Russian Federation 275,2 thousand rubles 193 thousand industrial enterprises GDP per capita 10th place National Regional Investment R- 500 km. 22 million inhabitants Climate Ranking 26% of effective demand of the Russian Federation SINGAPORE 47 thousand industrial enterprises 1,26 343 mln people BLN RUB population of the region GRP KEY INDICATORS OF THE REGION

DYNAMICS OF THE ULYANOVSK REGIONS DEVELOPMENT

GRP THE SHARE OF HIGH-TECH INDUSTRIAL OUTPUT THE VOLUME OF INVESTMENTS INVESTMENT VOLUME OF THE ULYANOVSK REGION PRODUCTS IN GRP 2005-2017 IN FIXED ASSETS GROWTH RATE 2005-2017 2017 2005-2017 2005-2017

BLN 428% 29% 392% 21 USD (22% - national average) 711% RATINGS

DOING BUSINESS THE INFORMATION JOINT STUDY BY NATIONAL RATING INNOVATION REGIONS 1ST PLACE IN TERMS OF DOING BUSINESS SOCIETY INSTITUTE KPMG AND RSPP 10TH PLACE INVESTMENT CLIMATE RATING 1ST PLACE IN TERMS OF OPENNESS 8TH IN TERMS OF INNOVATION (+8) OF THE GOVERNMENT KEY INDICATORS OF THE REGION

INDUSTRY GROWTH 60 000 6,7% (2012 - 2017) HIGH-EFFICIENT JOBS CREATED INCREASE IN INDUSTRIAL PRODUCTION VOLUME ULYANOVSK REGION 12,6% (2012-2017) ACCORDING TO THE RESULTS OF 2017 3,9% 2 place in VFD 4,9%

LABOUR PRODUCTIVITY GROWTH 92 bln rub 4,2% (2012 - 2016) INVESTMENT VOLUME IN AGRICULTURE PRODUCTION GROWTH ULYANOVSK REGION 7,5% FIXED ASSETS IN 2017 ACCORDING TO THE RESULTS OF 2017 RUSSIA 4% 12,5% (2015-2017) 3 place in Volga Federal District

220% 4 position 23,6% EXPORT GROWTH IN RUSSIA FOR RESEARCH AND PRODUCT GROWTH OF HIGH-TECH INDUSTRIES IN GRP (2013 - 2017) DEVELOPMENT EXPENDITURE (2012 - 2016) WE PROVIDE COMFORTABLE LIVING CONDITIONS FOR OUR RESIDENTS COMFORTABLE CONDITIONS FOR INVESTORS AND ITS FAMILIES

Transport accessibility 2 international airports Housing Comfortable apartments, High – ranked hotels Leisure One of the oldest Drama Theaters in Russia. Philharmonic, Concert Hall, Cinema, Parks and 500 000 Shopping Malls TOURISTS ANNUAL CRUISE LINERS COME 120 IN THE RIVER PORT Education Institutions of Higher Education , private schools and technology park for children

increase 6 times 980 000 m GROWTH IN ANNUAL ANNUAL VOLUME ACCOMMODATION FOR 14 YEARS OF HOUSING CONSTRUCTION HUMAN CAPITAL ASSETS The Ulyanovsk region is among: TOP 5 in terms of Science and technology in GRP TOP 10 in the terms of innovations development in the region

In education institutions work 17 universities 39 000 250 PhD students 27 750 RUB 5 state universities Doctors 2 000 1 400 regional average salary level foreign students

UNIVERSITY INCUBATOR INTERREGIONAL COMPETENCE ОБРEDUCАAЗTIONALОВАТЕЛЬНЫЕ OPPORTUNITIES ПЛОЩАДКИ CENTER

International Competence Сollective work space Children technology Center WORLDSKILLS “Boiling Point” Park “Quantorium” UNIVERSITY CAMPUS

TECHNICAL COLLEGE IMPLEMENTED PROJECTS

>115 10 implemented bln dollars investment projects total investment INDUSTRIAL CLUSTERS

AUTOMOTIVE ALTERNATIVE ENERGY AVIATION CONSTRUCTIONAL MATERIALS NUCLEAR-INNOVATIVE AGRICULTURAL MACHINE TOOL

MEDICIAL FOOD OFFERS FOR THE AVIATION CLUSTER FUTURE PROJECTS:

The establishment of the Aircraft Service Centers Building of the new types of the aircrafts The establishment of the customization centers New sites for aircraft components production SUPERJET 100 The establishment of new paint shops ЦЕНТР КАСТОМИЗАЦИИ The development and building of 44 unmanned aerial vehicles companies

$5,2 BLN 17 000 сollective turnover of people - employment level the aviation cluster participants in aviation cluster OFFERS FOR THE AUTOMOTIVE CLUSTER FUTURE PROJECTS:

The localization of the autocomponents manufacturing

The establishment of the autocomponents suppliers park

The establishment of auto assembly production

The establishment of the training 96 centers and centers of competence companies Export of autocomponents

Ulyanovsk Region is in the center of Automotive Industry in Russia OFFERS FOR THE ALTERNATIVE ENERGY CLUSTER FUTURE PROJECTS

The establishment of components and equipment manufacturing

The R&D Centers establishment

Localization of equipment

The Establishment of energy storage and distribution centers

The establishment of the new energy THE FIRST IN RUSSIA SPIC IN THE SPHERE OF ALTERNATIVE ENERGY SIGNED WITH resources VESTAS ON BLADES MANUFACTURING

JSK «FORTUM» THE FIRST PRIVATE by 2024 35 MWT WIND PARK 20% 70% 2017 MWT the level of alternative the level of localization 50 520 MWT energy generation 2018 PERSPECTIVE OFFERS FOR THE NUCLEAR CLUSTER FUTURE PROJECTS:

State scientic center – Research Institute of Atomic Reactors The establishment of R&D Centers Remains the largest Russia's and world's research center providing science-based high-tech services in a wide range of in-pile tests and post-irradiation examinations. The establishment of engineering centers Federal hi-tech medical radiology center The unique medical and research center, which provides hi-tech nuclear medical care to The establishment of Research Centers the citizens of Russia in the following medical areas: oncology, endocrinology, cardiology, cardiovascular surgery, neurosurgery. The New Materials Research Centers The Ulyanovsk Technology Transfer Center The establishment of high-tech The primary goal is to provide favorable conditions for the creation and successful development of technology startups. The integration of science into real economy. medical centers Radiopharmaceuticals production and Multi-Purpose Fast Reactor (MBIR) export The world's only multi-functional R&D Complex with research reactor. The materials research center Construction of rehabilitation centers

JSC «SSC RIAR» - the Russia's only center under the 56 $175MLN aegis of the IAEA residents the volume of investments OFFERS FOR THE MACHINE TOOL BUILDING CLUSTER FUTURE PROJECTS

The machine tool equipment production localization

The development and manufacturing of equipment for the automotive production and aviation

The machine tools components manufacturing

Plant Capacity – 1200 tools per year, The assembly facility including machine tools for aviation, space and automotive production industries The establishment of Competence Centers

The rst Special Investment Contract signed in the sphere of machine tool building in Russia with DMG MORI OFFERS FOR THE CLUSTER OF CONSTRUCTION MATERIALS FUTURE PROJECTS

Glass manufacturing Production of expanded clay mixtures MDF manufacturing Mineral resorces 250 mln tonns Quartz, glass and molding sands 89 mln m³ Cement raw materials 380 mln tonns Cement raw materials 78 mln tonns Carbonate raw materials

Ulyanovsk region is the main region for mining of quartz sand in Russia OFFERS FOR THE AGRICULTURAL CLUSTER FUTURE PROJECTS

The construction and development of breeding complex

Fruits and Vegetables cultivation

Poultry farming

The greenhouses construction

Agricultural Machinery 1,3 mln Ha 135 thousand Ha 320 Cultivated area farm areas agricultural enterprises Grain export in the region

of the 60% lands agricultural area FOOD CLUSTER ULYANOVSK REGION 22 ha Total area 6-8 Greeneld sites

Developed engineering infrastructure Developed logistic infrastructure Public transport Cooperation with local companies

CLUSTER PARTICIPANTS OFFERS FOR THE MEDICAL CLUSTER FUTURE PROJECTS

Manufacture of pharmaceutical products

Production and localization of high-tech medical equipment

Manufacture of technical means of rehabilitation

MEDICAL Establishment of rehabilitation centers, INDUSTRIAL PARK boarding houses for the care of patients and elderly people The establishment of the Europe’s largest innovation park of medical and high-tech equipment manufacturing.

BLN 100 USD 17 the investment volume companies approved INVESTMENT SITES «GREENFIELD», «BROWNFIELD»

AIRPORT «ULYANOVSK-VOSTOCHNY»

P-178 Highway P-178 SPECIAL ECONOMIC ZONE BROWNFIELD ULYANOVSK GREENFIELD

АЭРОПОРТ «УЛЬЯНОВСК-ЦЕНТРАЛЬНЫЙ» The rst wind farm in Russia 3585 MWt

DIMITROVGRAD INNOVATIVE CLUSTER “TECHNOLOGICAL VALLEY” R&D 236 MWt INDUSTRIAL PARK «ZAVOLZHYE» Wind farm by 2020 GREENFIELD

М5 М-5 «URAL» Federal highway TERRITORY OF ADVANCED SOCIAL AND ECONOMIC DEVELOPMENT BROWNFIELD 300 MWt GREENFIELD Wind farm by 2024 PROJECT IMPLEMENTATION OPTIONS

1 GREENFIELD 2 BROWNFIELD 3 BUILT-TO-SUIT GETTING LAND AND CONSTRUCTION RENT OF STANDART PREMISES CONSTRUCTION OF INDUSTRIAL BUILDINGS OF ITS OWN PREMISES SPECIALLY FOR THE CUSTOMER SPECIAL ECONOMIC ZONE “ULYANOVSK”

The only sez of airport type in Russia.

A unique transport and logistics center within the framework of the Eurasian ransport Corridor project.

Main activities of residents: Production of aviation equipment and aircraft components Manufacture of medical equipment Electronics manufacturing Logistics and wholesale Aircraft maintenance

23 325 Ha residents total area FREE CUSTOMS ZONE REGIME

Unlimited storage period Free goods processing Defective goods disposal

Construction materials and Components and repair equipment parts GOODS OUT Duties and vat payed for the nal 00%% 00%% 00%% product or foreign components in it VAT Duties Excise duties Import of goods to RF by parts Post-payment of duties and VAT

NO CUSTOMS DUTIES FOR IMPORTING GOODS CUSTOMS INFRASTRUCTURE

Administrative services building 1-24 hours for customs officers CUSTOMS FORMALITIES TIME Checkpoints: car checkpoint, individual checkpoint, and construction materials import checkpoints Examination area. Transfer capacity is more than 90 vehicles per day with an average load of 20 t

Customs infrastructure made for the residents only to reduce the amount of time spent on customs formalities SEZ «ULYANOVSK» TERRITORY

Y AY A RUNAW TO FEDERAL HIGHW ROAD AIRPORT «ULYANOVSK-VOSTOCHNY» INDUSTRIAL PARK «PLATFORM»

INDUSTRIAL PARK «PLATFORM 2.0» September 2019 - completion term

CUSTOMS

ANOVSK TO ULY ROAD INDUSTRIAL PARK «PLATFORM»

400 MLN RUB VOLUME OF RESIDENT INVESTMENTS

11COMPANIES AUTO COMPONENTS MEDICAL EQUIPMENT MACHINE BUILDING UAV COMPONENTS WHOLESALE AIRPORT EQUIPMENT

4 COUNTRIES INTERNATIONAL COMPANIES

14 000m² total area NEW INDUSTRIAL COMPLEX "PLATFORMA 2.0" BROWNFIELD

10 000 m² 9 m ceiling height

2 000 kg/m² oor load

2019 CONSTRUCTION START Production, warehouse and office premises for rent 2020 COMPLETION TERM Cargo gates

RENT 472rub/m² 286 rub/m² office space warehouse and production facility space INDUSTRIAL PARK “ZAVOLZHYE” INDUSTRIAL PARK

» AIRPORT -VOSTOCHNY ZAVOLZHYE YANOVSK THE «UL ROAD TO

EFES

JOKEY UL DMG MORI YANOVSK – 10 KM ULNANOTECH NEMAK SCHAEFFLER

JOYSON

SAMARA 210 LEGRAND TOGLIATTI 180 UFA 570

-178 AY P KAZAN 240 HaHa NIZHNY NOVGOROD 460 706706 2626 FEDERAL HIGHW MOSCOW 880 ttotalotal arareaea rresidentsesidents INDUSTRIAL PARK “ZAVOLZHYE” INDUSTRIAL PARK ZAVOLZHYE

FOOD READY ENGINEERING INFRASTRUCTURE CLUSTER Roads

Electricity

INNOVATIVE CLUSTER “TECHNOLOGICAL VALLEY” Gas supply 7а пр. Инженерный Water supply

RESIDENTS

EFES BRIDGESTONE

SCHAEFFLER INDUSTRIAL PARK “ZAVOLZHYE”

32 INVESTMENT PROJECTS 48 BLN RUBLES TOTAL INVESTMENT SCHAEFFLER 5 000 NEW JOBS CREATED CUCINA

SABMILLER TECHNOLOGICAL VALLEY INNOVATION CLUSTER

F New economic development E 10 000 sq m model. OFFICIES D Formation of new high-tech C 4 700 sq m economy sectors B LABORATORIES Ecosystem, combining educational, A 5 000 sq m scientic, research and business EDUCATION AREAS resources.

2 500 sq m The school of future BUSINESS AREAS

THE FIRST STAGE NANOCENTER ULNANOTECH 10 000 NEW HIGH-TECH JOBS CREATED PUT INTO OPERATION IN 2014 TECHNOCAMPUS 2.0: PERSPECTIVE DEVELOPMENT

2017 2018 2019 COWORKING AIRPORTS INVESTOR SPACE RESIDENTIAL AREA "BOILING POINT"

(ASI PROJECT)

Complex transformation and development of the airport complex 20 houses

2020 2020 2021 SCHOOL FIRST ORDER OF SANTOR CONSTRUCTION OF TECHNOCAMPUS

Key partners of the company - To legalize the "Smart School" and municipal formation «Innopraktik 35 500 sq. m SANTOR IT-CLUSTER

more than 1 100 45 000 10 SECTION-SHAPED PEOPLE EMPLOYED MAJOR INTERNATIONAL CO-WORKING CENTER GRADUATES IN IT-SECTOR EVENTS ANNUALY “BOILING POINT” ANNUALLY

HIGHER EDUCATION SECTORALLY ORIENTED

ULYANOVSK STATE TECHNICAL ULYANOVSK STATE PEDAGOGICAL DIMITROVGRAD ENGINEERING ULYANOVSK STATE UNIVERSITY UNIVERSITY UNIVERSITY AND TECHNOLOGY INSTITUTE

MORE THAN 200 COMPANIES, MOST OF WHICH INTERNATIONAL NANOCENTER ULNANOTECH

The platform for start-ups development Unique innovation ecosystem Scientic process integration into real economy Center of attraction of scientist from all over the world

NANOCENTER focuses on: Alternative energy Biotech and molecular genetics Integrated electronics The platform for scientic Development and production The research laboratory of Technology and materials for researches in the eld of kits for molecular and electronic devices development heat ow management New construction technologies of thin-lm coatings genetic testing Thin-lms coatings Composite materials >110 200 projects approved new high-tech jobs TERRITORY OF ADVANCED SOCIAL AND ECONOMIC DEVELOPMENT TASED “DIMITROVGRAD” “DIMITROVGRAD” 116 000 population Resolution of the Government of the Russian Federation dated July 19, 2017 No. 848 “On the creation of the territory of advanced socio-economic development“ Dimitrovgrad ” by 2020 7 bln rubles volume of investments 2 000 new jobs created

INVESTMENT SITES «GREENFIELD» AND «BROWNFIELD» TERRITORY OF ADVANCED SOCIAL INDUSTRIAL PARK «DIP-MASTER» AND ECONOMIC DEVELOPMENT

Unique tax regime for residents 7,6% - insurance premiums 0% - income tax

Low cost of resources $0,06/kW * hour - OFFICE AND INDUSTRIAL SPACE electricity Supply 150 000 m Availability of office, warehouse, production and clean premises

RENT $3,5/ m² $2 / m² office space warehouse and production facility space COMPARATIVE TABLE OF TAX BENEFITS

Specially Significant Territory of advanced Taxes and duties Investment SEZ «Ulyanovsk» Project Status development «INZA»

Income Tax (20%) 15,5% for 15 years 2% for 10 years 0% for 5 years, 15,5 % from 11 to 45 years 10% from 6 to 10 years

0% for 10 years Property Tax (2,2%) 0% for 15 years 0% for 10 years 1,1% from 11 to 15 years

Transport Tax 0% for 10 years (Differentiated) 0% for 10 years 0% for 10 years for 10 years Land Tax 0% (1,5%) 0% for 8 years 0% for 10 years Prolongation for more 5 years available Execution of works and VAT (20%) 20% provision of services are not 20% subject to VAT

Insurance premiums 7,6% for 10 years to PFR, OMIF, SIF 30% 30% Prolongation for 5 more (30%) years available

The importation of goods, equipment, Custom Duties Differentiatied construction materials to the territory Differentiatied (Differentiated) of SEZ is not subject to VAT, excise duties and customs duties The instrument for Support and development of Russian industry, provided by Federal Act No.488 of 31.12.2014 “On industry policy in the Russian Federation” SPECIAL INVESTMENT CONTRACT SPIC - an agreement between an industrial investor and the state (or the region), which sets forth:

- the obligations of the investor to create (or modernize) industrial production facilities and set up CONDITIONS production within the timeframe stipulated by the contract; - the obligation of the state to provide stable tax conditions and provision of incetives 750 MLN rubles The advantages of SPIC The minimum amount of the investments for SPIC «MADE IN RUSSIA» THE ACCESS TO THE STATE STATUS TAXES CONTRACTS Period of validaty EXPEDITED AND SIMPLIFIELD NON-DETERIORATION OF TAX OPPORTUNITY TO RECEIVE THE SINGLE Time for the project to become operationally PROCEDURE OF OBTAINING THE CONDITIONS OPPORTUNITY TO PRODUCT SUPPLIER STATUS FOR PRODUCTS protable + 5 years, but not more than 10 years “MADE IN RUSSIA” STATUS REDUCE THE RATES OF REGIONAL MANUFACTURERS UNDER THE SPIC AND MUNICIPAL TAXES PARTICIPATION IN STATE PURCHASE CONTRACTS ON A NON-COMPETITIVE BASIS

MACHINE TOOLS ALTERNATIVE AUTOMOTIVE ENERGY EXPERIENCE THE REGION HAS SUCCESSFUL EXPERIENCE 31 May 2016 20 December 2017 26 May 2018 OF SIGNING SPIC IN MACHINE TOOL, ALTERNATIVE ENERGY AND AUTOMOTIVE PRODUCTION EXPORT POTENTIAL OF THE ULYANOVSK REGION

20% $1,5 BLN GROWTH BY COMPARISON WITH 2017 102 FOREIGN TRADE TURNOVER OF THE ULYANOVSK REGION IN 2018 COUNTRIES WORLDWIDE - EXPORT DESTINATIONS 95,5% 128 SHARE OF NON-RAW PRODUCT, NON-ENERGY EXPORTS COMPANIES EXPORT ABROAD

TOP-10 EXPORTERS

ULYANOVSKNEFTEGAZ

Scientic developments in the eld of Export of aircraft components Production of petroleum Manufacture of automobiles Export of grain nuclear medicine products

Manufacture of wood products Export of auto components Manufacture of bridge Production of Production of and road fences petroleum products auto components PROJECT TEAM

Founder – Government of the Ulyanovsk region Supporting investment projects implementation in the one-stop shop format

Solving all questions on registration of rights to the site and permits Business environment creation for manufacturing facilities location

The Ulyanovsk region is a leading one in Russia for "Regulatory Environment" in the national rating for investment climate provided by ASI SUCCESS STORY GOVERNOR GENERAL DIRECTOR

SERGEY MOROZOV SERGEY VASIN

+7-8422-41-20-78 +7-8422-73-70-01 [email protected] [email protected] www.ulgov.ru www.ulregion.com