Business Outlook in Azerbaijan Deloitte CIS Research Center 2017 Brochure / Report Title Goes Here | Section Title Goes Here

Business Outlook in Azerbaijan Deloitte CIS Research Center 2017 Brochure / report title goes here | Section title goes here

Contents

Azerbaijan in figures: 4 (Macroeconomic outlook: GDP, inflation, currency rate, etc.)

Azerbaijani business environment 16 (Research Centre market analysis)

Contacts 22

02 Business Outlook in Azerbaijan – 2017

Introduction

We are pleased to present the first edition of Business Outlook in Azerbaijan, the Deloitte Research Centre’s macroeconomic journal.

We focus on the current trends in Azerbaijan’s economy and present our key research findings.

Nuran Kerimov In August–September 2017 Deloitte CIS Managing Partner conducted a survey of the top management Deloitte Azerbaijan of Azerbaijani companies. It serves as the basis of our integrated research on the state of the business environment in Azerbaijan.

If you have any questions or suggestions regarding this research, please do not hesitate to contact us: [email protected]

03 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Azerbaijan 01in figures

04 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Key macroeconomic indicators

Gross domestic product, 2003–2021 105.8

93.9 GDP, bln manat

85.0 (current price) 76.1 73.6 Fact 60.4 58.2 59.0 54.4 54.7 EIU forecast 52.1 42.5 40.1 35.6

28.4 GDP growth rate, %

18.7 (constant price): 12.5 7.1 8.5 Fact EIU forecast IMF forecast 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018* 2019* 2020* 2021*

11.2 10.2 26.4 34.5 25.0 10.8 9.3 5.0 0.1 2.2 5.8 2.0 1.1 -3.1 -1.0 1.9 1.8 2.1 2.6 -1.0 2.0 2.3 2.5 1.8

Source: Historical data – UN statistics, State Statistical In September 2017, the Economist Intelligence Unit (EIU) forecasted Committee of the Republic of Azerbaijan an economic contraction of 1% in 2017, caused by tight fiscal and monetary *Forecast – Economist Intelligence Unit (EIU), policy, low private consumption, and declining oil production, owing International Monetary Fund (IMF) to the existing ageing wells and the lower productivity of new wells.

Brent oil and natural gas price 55.0 60.0 61.5 62.9 64.5 Brent oil, 52.1 50.8 53.1 52.9 55.5 112.1 111.5 108.3 US$/barrel 98.0 97.3 51.6 51.4 51.5 75.2 80.5 Fact 66.0 64.0 54.2 55.2 46.4 WB forecast 28.8 38.5 EIU forecast 9.3 8.9 5.5 6.3 7.0 7.3 ECB forecast 4.2 4.3 4.1 2.9 3.8 4.2 2.6 2.7 3.0 3.5 3.6 3.7 Natural gas, 3.2 3.4 3.9 US$/mmBtu Fact WB forecast 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018* 2019* 2020* 2021* EIU forecast

Source: Historical data – Finam Holdings *Forecast – EIU, World Bank (WB), European Central Bank (ECB)

“A decrease in 2016 GDP was expected. The oil and gas sector still accounts for the biggest share of Azerbaijan’s GDP, and oil export revenue represents most of the total export revenue. In addition, many non-oil sectors directly depend on the oil revenues. Non-oil GDP strongly depends on the allocation of funds from the state budget in this regard. Therefore, the fall in world oil prices has affected and continues to affect the value of Azerbaijan’s economy. As a result, its GDP started to drop practically from the first month of 2016.” Vugar Bayramov Chairman of the Center of Economic and Social Development

05 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Key macroeconomic indicators

Dynamics of oil and gas sector share in total GDP, (%) Structure of goods export 2016, (mln US$)

54 56 55 48 50 87.1% 5.8% 1.7% 2.4% 3.0% 100% 44 45 45 41 36 33 30 31

28 278 9,139 223 156 526 7,956 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2016 GDP structure, (mln Azerbaijani manat)

Mining and quarrying (incl. oil and gas) 18,520

Construction 6,394

Trade, repair of transport means 6,152

Net taxes on product and import 4,591

Transport and storage 4,102

Agriculture, forestry and fishing 3,370 Total Other Metals products Manufacturing 3,120 products Chemicals Petroleum Agricultural Financial and insurance activities 1,598

Other 12,546

Source: State Statistical Committee of the Republic of Azerbaijan

06 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Key macroeconomic indicators

Oil production and Brent oil price 1,020 1,013 916 908 Oil production, 871 873 844 839 835 824 `000s barrels/day 771 764 756 748 741

648 Fact EIU forecast 445 Brent oil price, 309 312 US$/barrel Fact EIU forecast 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018* 2019* 2020* 2021*

28.8 38.5 55.2 66.0 75.2 98.0 64.0 80.5 112.1 111.5 108.3 97.3 54.2 46.4 52.1 50.8 53.1 52.9 55.5

Source: Historical data – EIU, Finam Holdings Oil output is forecasted to decline in 2017–21. Risks are oriented to the downside, *Forecast – EIU as stabilization of production will be limited by weak investment.

Source: EIU

Natural gas production and price

Gas production, 38.7 29.5 29.6 29.6

29.4 bln cubic meters 29.0 26.9 26.3 25.8 Fact 23.7 23.4 IMF forecast 17.0 Natural gas price, US$/mmBtu 9.1 5.7 5.1 5.0 Fact EIU forecast 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018*

5.5 6.3 9.3 7.0 7.3 8.9 4.2 4.3 4.1 2.9 3.8 4.2 2.6 2.7 3.2 3.4

Source: Historical data – State Oil Company of the Azerbaijan The Shah Deniz is one of the world’s largest gas-condensate fields located Republic (SOCAR), The Oxford Institute for Energy Studies, on the shelf of the Caspian Sea 70 km southeast of Baku. The first stage began Finam Holdings operations in 2006 and currently has the capacity to produce around 10 billion *Forecast – IMF, EIU cubic meters of gas per annum (bcma) and approximately 50,000 barrels a day of condensate. Shah Deniz Stage II is a giant project that will add a further “2017 is an important year for BP and for the Shah 16 billion cubic meters per annum (bcma). Deniz II project, which is already around 90% complete.

We have planned a series of key completion milestones Source: British Petroleum for this year. We are committed to achieving all of these milestones on schedule to make BP’s 25th anniversary celebrations in Azerbaijan a big success.” Ewan Drummond Vice President of BP’s Azerbaijan-Georgia-Turkey projects 07 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Key macroeconomic indicators

Price indices of consumer goods and paid services rendered to population

20.8 Price indices, % 12.6 5.2 5.6 4.6 4.9 16.7 9.5 5.0 6.5 4.0 4.0 Fact 12.4 EIU forecast 9.6 IMF forecast 6.7 7.9 5.7 2.2 8.3 2.4 4.0 1.5 1.1 1.4 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018* 2019* 2020* 2021*

Source: Historical data – State Statistical Committee According to the State Statistics of the Republic of Azerbaijan, Committee, average annual inflation *Forecast – EIU, IMF stood at 14% over Jan–Aug 2017.

Refinancing rate, (%)

15.00

7.00 5.25 4.75 3.00 3.50 3.00

01/01/2011 01/01/2012 01/01/2013 01/01/2014 01/01/2015 01/01/2016 01/01/2017

Source: Central Bank of the Republic of Azerbaijan On 18 September 2017, the Management Board of the Central Bank of the Republic of Azerbaijan made the decision to leave the refinancing rate and other parameters of the interest rate corridor unchanged (the refinancing rate is 15%, the corridor floor is 10%, and the corridor ceiling is 18%). The Management Board of the Central Bank of Azerbaijan will next hold an interest rate meeting on 15 November 2017.

Source: Central Bank of the Republic of Azerbaijan

08 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Key macroeconomic indicators

Currency rate, USD vs. Azerbaijani manat 1.75 1.72 1.71 1.67 1.63 1.63 1.60 Annual average currency rate Fact 1.03 0.98 0.98

0.95 0.95 EIU forecast 0.89 0.86 0.82 0.80 0.80 0.79 0.78 0.78 0.79 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018* 2019* 2020* 2021*

Source: Historical data – Central Bank The launch of Shah Deniz II will boost export earnings, however, gas prices of the Republic of Azerbaijan, are projected to remain relatively low and oil prices are expected to remain *Forecast – EIU broadly flat. The EIU forecasts a modest appreciation of the manat against the dollar of about 2% per year in 2019–21.

Source: EIU

EUR and USD vs. Azerbaijani manat, Jul 2015–Sep 2017

Average 9m 2017 EUR Average 2016 USD 1.73 USD 1.60 EUR 1.93 USD EUR 1.77 Average 2015 USD 1.03 EUR 1.14

01/07/2015 01/10/2015 01/01/2016 01/04/2016 01/07/2016 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017

Source: Central Bank of the Republic of Azerbaijan

09 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Key macroeconomic indicators

Budget of the Republic of Azerbaijan

19.5 Budget revenues, 19.1 18.7 18.4 17.9 17.8 17.7 17.5 17.2 17.3 17.0 17.1 bln manat 15.7 15.4 Budget

11.8 expenditures, 11.4 10.8 10.7 10.6 10.3 bln manat - deficit / + proficit 6.0 6.1

3.9 as a share of GDP 3.8 2.1 2.1 1.5 1.5 1.2 1.2

0.5 0.2 0.6 0.3 0.6 -0.1 -0.2 -0.2 -0.5 -0.4 -0.7 -0.7 -0.9 -1.2 -1.3 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

Source: Central Bank of the Republic of Azerbaijan In September 2017 the EIU forecasts an economic contraction *Forecast – EIU of 1% in 2017, caused by tight fiscal and monetary policy, low private consumption, and declining oil production, owing to the existing ageing wells and the lower productivity of new wells.

Yield on Azerbaijan's Tbills (%)

19.5 20

5 5.5

0 01/02/2016 01/05/2016 01/08/2016 01/11/2016 01/02/2017 01/05/2017 01/08/2017

Source: Central Bank of the Republic of Azerbaijan

10 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Key macroeconomic indicators

General government gross debt (percentage of GDP) 36.1 40.1 43.8 47.4 51.2 54.7 58.3

Fact IMF estimation IMF forecast EIU estimation 28.3 EIU forecast 21.8 20.2 39.2 48.8 49.5 45.3 41.8 37.9 13.3 13.6 11.8 11.1 11.4 10.2 8.6 9.9 19.8 20.4 6.9 16.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018* 2019* 2020* 2021*

Source: Historical data – The Ministry of Finance In May 2017 the state-controlled International of the Republic of Azerbaijan Bank of Azerbaijan (IBA), the country’s largest Estimation and *Forecast – EIU, IMF bank, announced a foreign debt restructuring plan. As part of the restructuring, on 1 September “The increase in government debt correlates the Ministry of Finance issued seven Eurobonds with the steps taken to improve the financial situation worth a total of US$2.27 bln, with maturities of the International Bank of Azerbaijan. Its debt ranging from end 2017 to 2032, and the IBA will pass to the government and the government issued a US$1 bln seven-year Eurobond. will issue Eurobonds in order to pay this debt. For that reason, the upper limit of external borrowing Source: EIU would increase by 4 billion manats. We have to do this. This Bank is also a state bank and the president gave the order to privatize it. We need to improve its financial situation before we can privatize it. Azerbaijan’s government debt can hardly be considered big. “ Vahid Akhmedov Member of the Milli Majlis, Deputy Chairman of Milli Majlis's Committee on Economic Policy, and Member of Parliament

11 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Key macroeconomic indicators

Population and employment

Population, mln of people 9.71 9.59 9.48 9.36 9.24 9.11 9.00 8.90 8.78 8.67 8.55

8.45 Employment, 8.35 8.27 mln of people Unemployment 4.22 4.27 4.33 4.38 rate, % 4.60 4.45 4.52 4.67 4.76 4.11 4.02 4.06 3.97 4.16 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

9.2 8.0 7.3 6.6 6.3 5.9 5.7 5.6 5.4 5.2 5.0 4.9 5.0 5.0

Distribution of employed population by economic activity (‘000s of people)

Agriculture, forestry and fishing 1,730

Trade, repair of transport means 700

Education 375

Construction 344

Public administration and defence 285

Manufacturing 242

Mining 38

Other 1,046

Source: State Statistical Committee of the Republic of Azerbaijan

12 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Tourism

Number of accommodated persons in hotels by purpose of travel, (`000s persons)

171,000 Recreation 4% 70% 600 Of GDP* Jobs** Growth*** Treatment 500 Business Other tourism *The direct contribution of Travel & **In 2016 Travel & Tourism *** Total growth 400 purpose Tourism to GDP was AZN2,285.3 mln directly supported 171,000 jobs over 2011–2016 Arrivals (US$1,437.3 mln), 4.1% of total (3.7% of total employment) 300 for the other purpose 200

100

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: State Statistical Committee of the Republic of Azerbaijan, World Travel & Tourism Council

“In January–August 2017, the increase in the number of tourists was 23.1% (1.818 million people) and this is a positive trend.”

“During the reporting period, the volume of transactions carried out by foreign citizens also increased by 97%, and purchases were made for AZN 713,000,000. This is almost a two-fold increase and a real contribution to the economy of the country” Abulfas Garayev Minister of Culture and Tourism of Azerbaijan

13 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Sport news

F1 and UEFA Champions League

.2.99. million Top 5 F1 Broadcasts 2017: viewers* 1. Azerbaijan Grand Prix (live): 2.99 million viewers 2. British Grand Prix (live): 2.86 million viewers 3. Bahrain Grand Prix (live): 2.82 million viewers 4. Spanish Grand Prix (highlights): 2.65 million viewers 5. Monaco Grand Prix (live): 2.55 million viewers

The season high is clearly Azerbaijan across the metrics analyzed, not only the highest average of the season but also recording a decent percentage rise year-on-year. The only other race to increase year-on-year is Spain, with the Catalonia race seeing a 6 percent rise compared with 2016. During 2016, a combined average audience of 2.63 million viewers watched Formula 1’s 21 races across Channel 4 and Sky Sports.

UEFA Champions League Group C Chelsea (England) Athletico (Spain) AS Roma (İtalia) Qarabağ (Azerbaijan)

Qarabağ qualified for the UEFA Champions League group stage for the first time in the club’s history. Qarabağ will be the first Azerbaijani team to play in the group stage of Champions League.

“It's an incredible feeling to play in the Champions League, but we're there for the first time so it will be hard for us and we'll show our potential in the games.” Dino Ndlovy Qarabağ FC player

Source: f1broadcasting.co, Qarabağ website * Worldwide viewers across Channel 4 and Sky Sports.

14 Business Outlook in Azerbaijan – 2017 | Azerbaijan in figures

Top 10 M&A deals of the last 15 years

Date Target Bidder Seller Deal Value Deal Dom. company company company USD (mln) Industry

1 16/08/2010 Azeri-Chirag-Gnashli project BP Plc; Chevron Devon Energy 3,416 Energy (5.63% stake) Corporation; Itochu Corporation Corporation; INPEX Southeast Caspian Sea Ltd.

2 30/04/2015 Shah Deniz gas field Petronas Gas Statoil ASA 2,250 Energy (15.5% stake); Berhad South Caucasus Pipeline Company Ltd. (15.5% stake)

3 31/12/2014 Shah Deniz gas field Turkish Petroleum Total S.A. 1,500 Energy (10% stake); Corporation South Caucasus Pipeline Company Ltd. (10% stake)

4 06/05/2014 Shah Deniz gas field BP Plc; State Oil Statoil ASA 1,450 Energy (10% stake); Company of the South Caucasus Pipeline Azerbaijan Republic Company Ltd. (10% stake)

5 28/04/2003 Azeri-Chirag-Gnashli project INPEX Southeast Lukoil OAO 1,354 Energy (10% stake) Caspian Sea Ltd.

6 28/03/2013 Azeri-Chirag-Guneshli field ONGC Videsh Ltd. Hess Corporation 1,000 Energy (2.72% stake); Baku Tbilisi Ceyhan Pipeline Co. Ltd. (2.36% stake)

7 22/02/2008 Karasu Operating Company Global Investment Nations Petroleum 340 Energy (85% stake); Energy Company Ltd. Kura Valley Operating Company (80% stake)

8 12/02/2008 Azercell Telekom B.M. Azertel Telekomu- Republic 180 Telecommunications: (35.7% stake) nikasyon ve Yatirim of Azerbaijan Carriers Dis Ticaret

9 06/06/2007 Binagady Project RussNeft NK OAO AzenOil 150 Energy (37.5% stake) Company BV

10 25/08/2008 Baku-Castel OJSC JSC Baltika Brasseries 50 Consumer: Other (92.8% stake) Breweries Internationales Holding (Eastern) Ltd. (BIH Eastern)

15 Business Outlook in Azerbaijan – 2017 | Azerbaijani business environment

Azerbaijani 02 business environment

Deloitte CIS would like to thank all those who participated in the survey we conducted in August–September 2017 as part of our “Business Outlook – Azerbaijan“ project. We do appreciate your time and your interest in our research. Your expert opinions allowed us to conduct an integrated analysis of Azerbaijan’s business environment, as well as to study the sentiments and expectations of market participants about their companies’ development and the market overall.

We are pleased to present you with the key findings of our research. We hope that you will find it useful and informative. We would be grateful if you participate in our next survey.

Please feel free to contact us if you have any questions about this report.

16 Business Outlook in Azerbaijan – 2017 | Azerbaijani business environment

Financial outlook

Respondents were asked to assess the current market position With 87 percent of the respondents of their companies (in 2H 2017): having a positive view of how their companies perform, Azerbaijan’s overall business environment is clearly perceived as positive.

Moreover, the majority of respondents are optimistic about 2018: 79 percent 87% 13% are expecting improvement. Only 13 percent believe that the situation will remain unchanged and 8 percent expect the situation to deteriorate. Respondents were asked to assess their company’s outlook (in 2018): Such a positive outlook on Azerbaijan’s business environment and the respondent’s optimism may be due to the fact that after facing difficult challenges in 2015–2016 companies are now finally seeing signs 79% 13% 8% of a stabilization.

Risks rating

Respondents were asked to evaluate the impact of the risks [on the scale of 1 to 3]

The weakening of the AZN 2.46 Our survey has shown that

Decrease in core business revenue 2.13 the Azerbaijani business is focused on macroeconomic issues: downside risks

Slowdown in the economy 2.13 Top-3 risks for the exchange rate of Azerbaijani manat, Decrease in cash flow 1.92 a slowdown in the national economy Decrease in domestic demand 1.92 and a decrease in domestic demand; Increased business regulation 1.83 as well as concerns about a possible Low transparency 1.79 decrease in revenue and cash flow.

Increase in production costs 1.67

Increase in the cost of capital 1.63

Strong competition in the market 1.58

Shortage of capital 1.50

Cyber threats 1.42

New trade barriers/protectionism 1.42

17 Business Outlook in Azerbaijan – 2017 | Azerbaijani business environment

Strategies rating

Respondents were asked to evaluate the priority of the strategies [on the scale of 1 to 3]

Ongoing cost control 2.8 Improving operational performance

Increasing cash flow 2.5 is a high priority for Azerbaijani companies:

Top-3 cost control and optimization as well as

Cost cutting 2.5 strategies increasing cash flow are in demand. Reducing currency risks 2.4

Increasing production 2.4

Digitalising business functions 2.3

Developing the business 2.3 through organic growth Reducing financial risks 2.3

Investing in human resources 2.2

Launching new products/ 2.1 services on the market Expanding into new markets 2.0

Increasing capex 1.9

Raising capital from external sources 1.6

Current approach to capex

Respondents were asked about their current approach to capex

Maintenance + moderate 45% The majority of respondents (66 percent) capex in expansion specify that the current level of capex Massive expansion capex 21% is sufficient for expansion: 45 percent Minimal maintenance capex just to for moderate and 21 percent 21% keep the existing assets operational for massive expansion. We are shutting down some of our facilities 13% FSI companies are Another 21 percent of companies more often shutting hold minimal maintenance capex just down some of facilities to keep their existing assets operational. (43%) than companies from other sectors And 13% of companies are forced to shut down some facilities.

18 Business Outlook in Azerbaijan – 2017 | Azerbaijani business environment

Economic expectations

Respondents were asked about expected changes in key financial metrics over the next 12 months

Revenue (in AZN)

Opinions on the revenue changes By 55% 0% By 11% are divided: 54 percent believe Expectations the revenue of their companies will increase (by an average of 55%), while 13 percent hold the opposite view (expected decline by 11%) Share of respondents and 33 percent indicated that the revenue will remain the same. 54% 33% 13% Specific patterns: FSI companies expect the decrease in revenue more often (43%) than companies from the other sectors.

Operating expenses (in AZN)

Typically, revenue growth is generally By 5% 0% By 10% accompanied by an increase in operating Expectations costs. Our survey has found that 58 percent expect operating costs to grow by an average of 10 percent.

Share of respondents 13% 29% 58%

Operating profit (in AZN)

Almost half of companies (46 percent) By 41% 0% By 15% believe that the operating profit Expectations will increase (expected average growth of 41%) while 42 percent of respondents forecast that it will remain unchanged. Only 13 percent of experts expect Share of respondents a decline in operating profit – by 15%. 46% 41% 13%

19 Business Outlook in Azerbaijan – 2017 | Azerbaijani business environment

Economic expectations

Respondents were asked about expected changes in key financial metrics over the next 12 months

Cost of capital (in AZN)

The majority of respondents (71 percent) By 2% 0% By 10% expect that the cost of capital will remain Expectations at the same level. However, 21 percent of experts forecast an increase in the cost of capital by an average of 10%. About 8 percent think that the cost Share of respondents of capital will decline slightly (by 2%). 8% 71% 21%

Number of staff

Outlook on the number of staff: 21 percent By 10% 0% By 6% of respondents forecast an increase Expectations (growth will be 10%), while another 21 percent expect the opposite (a 6% decline). Fifty-eight percent believe that the number of employees Share of respondents will remain the same.

21% 58% 21% Specific patterns: Not a single FSI company is going to increase its current number of staff.

Average wages (in AZN)

Of the respondents surveyed, By 6% 0% 42 percent expect an increase Expectations in the average level of wages – in their opinion, growth will be 6%.

A significant number of companies Share of respondents (58 percent) do not consider wage adjustments. Given an inflation forecast 42% 58% of 13%, this indicates a decrease in the real income of employees.

20 Business Outlook in Azerbaijan – 2017 | Azerbaijani business environment

About respondents

Company's annual gross revenue in 2016 Total number of permanent employees

8% 50,000–250,000 AZN 13% Less than 50 25% 1mln–5mln AZN 50–200 17% Over 5 mln AZN 200–500

21% 500–2,000 More than 2,000

17% 75%

25%

Companies by industry

Financial services 29%

Energy and resources 25%

Manufacturing 13%

Other 33% Retail services Travel Agriculture Construction Transportation

21 Business Outlook in Azerbaijan – 2017

Contacts

Nuran Kerimov Joe Pacelli Managing Partner Partner, Head Deloitte Azerbaijan of Business Development [email protected] Deloitte CIS [email protected]

Petr Sergutin Jalal Hajibayov Senior Manager, Senior Manager, Financial Advisory Risk Advisory Deloitte Azerbaijan Deloitte Azerbaijan [email protected] [email protected]

Lora Zemlyanskaya Mikhail Gordeev Research Centre Leader Senior Research Specialist Deloitte CIS Deloitte CIS [email protected] [email protected]

22 Brochure / report title goes here | Section title goes here deloitte.az About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries bringing world-class capabilities, insights, and high- quality service to address clients’ most complex business challenges. To learn more about how Deloitte’s approximately 244,000 professionals make an impact that matters, please connect with us on Facebook, LinkedIn, or Twitter.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.