Samara Region

UPDATED: MAY 2018 INDUSTRIAL SPECIAL ECONOMIC ZONE «TOGLIATTI» UPDATED: MAY 2018 SAMARA REGION IS ONE OF THE MOST ECONOMICALLY DEVELOPED 2 REGIONS OF THE RUSSIAN FEDERATION

AREA 53 600 SQ. KM MURMANSK

SAINT PETERSBURG POPULATION

3 200 MOSCOW THOUSAND

SAMARA GROSS REGIONAL PRODUCT (2017 - FORECAST) KHABAROVSK SAMARA REGION 1 389.9 NOVOSIBIRSK IRKUTSK MLN RUB.

AEROSPACE CHEMICAL IT CLUSTER AUTOMOBILE INDUSTRIAL CLUSTER CLUSTER CLUSTER POTENTIAL OF SAMARA 60% REGION OF RUSSIA’S TOTAL AUTOMOBILE OUTPUT

SAMREGION.RU SAMARA REGION GOVERNMENT UPDATED: MAY 2018 TOGLIATTI IS ONE OF THE LARGEST CITIES IN THE RUSSIAN FEDERATION 3

ULYANOVSK AREA 284.3 SQ. KM

TOGLIATTI POPULATION

SYZRAN 707.5 ZHIGULEVSK THOUSAND

OTRADNY SAMARA KINEL NOVOKUIBYSHEVSK

CHAPAEVSK UFA

LARGE FACTORIES

SARATOV

M5 FEDERAL RAILWAY HIGHWAY

RIVER HARBOR INTERNATIONAL AIRPORT KURUMOCH

ORENBURG WWW.TGL.RU OFFICE OF THE MAYOR CITY OF TOGLIATTI UPDATED: MAY 2018 ADVANTAGEOUS LOCATION AND LABOR POTENTIAL 4 RUSSIAN REGIONS SAMARA REGION IS ONE OF THE TOP-10 RUSSIAN REGIONS IN TERMS OF LABOR POTENTIAL

TOGLIATTI SAMARA REGION

IZHEVSK 629 КМ AVERAGE 34 120 30 326 MONTHLY NIZHNIY NOVGOROD 667 КМ RUB. RUB. MOSCOW 1 016 КМ SALARY* NABEREZHNYE CHELNY 431 КМ

TOGLIATTI CHELYABINSK 907 КМ 26 131 KALUGA 1 019 КМ SAMARA 90 КМ UNIVERSITIES, UNIVERSITIES, HIGHER COLLEGES COLLEGES EDUCATION AND TECHNICAL AND TECHNICAL RADIUS POPULATION INSTITUTIONS SCHOOLS SCHOOLS 500 KM 20.4 MLN

MORE THAN MORE THAN

RADIUS POPULATION SPECIALISTS 12 000 43 000 WHICH ANNUALY KM MLN 1 000 71.2 GRADUATE

SOURCES: WWW.SAMARASTAT.GKS.RU WWW.TGL.RU WWW.EDUCAT.SAMREGION.RU *According to Samarastat for 2 months 2018 UPDATED: MAY 2018 LOCALIZATION. WHY DO INVESTORS CHOOSE SEZ? 5

TECHNICAL:

Ready infrastructure INVESTOR (possibility for production WHERE expansion) TO CONSTRUCT A FACTORY? Service of supervising construction and maintenance work

Development of technological cooperation

ECONOMICAL: BROWNFIELD GREENFIELD Low prices for land SEZ rent and land purchase Depreciation OPPORTUNITIES of fixed assests - Аdministrative support around 50% Tax and customs benefits Reconstruction can be more Availability of qualified expensive labor force UPDATED: MAY 2018 INDUSTRIAL SPECIAL ECONOMIC ZONE «TOGLIATTI» 6

STAVROPOLSKY DISTRICT

3 RD STAGE | 233 HA

2 ND STAGE | 246 HA

COMPLETED 1 ST STAGE | 181 HA

COMPLETED

660 HA TOTAL AREA OF SEZ

TOGLIATTI

FINANCING

3% STATE PRIVATE 62% 586 MLN RUB. INVESTMENT INVESTMENT 11 299 MLN RUB. FEDERAL BUDGET 18.3 PRIVATE FUNDS BLN RUB. RUB. RUB. REGIONAL BUDGET 35% 1 1.61 6 453 MLN RUB. 01.04.2018 UPDATED: MAY 2018 RESIDENTS OF SEZ «TOGLIATTI» 7

21 23.8 BLN RUB. 5 684 RESIDENTS DECLARED INVESTMENTS WORK PLACES TO BE CREATED

LLC «SIE «PATRIOT» НПП ПАТРИОТ RUSSIA LLC «JV SYSTEMS» LLC «GKN DRIVELINE TOGLIATTI» UNITED KINGDOM RUSSIA LLC «AZ POWERTRAIN» RUSSIA Кеда LLC «KERAMOGRANIT KEDA» LLC «TPV RUS» керамогранит RUSSIA LLC «CIE RUSSIA AUTOMOTIVE RUS» LLC «PM-KOMPOZIT» SPAIN RUSSIA

LLC «SANOH VOLGA» LLC «MUBEA JAPAN LLC PC «ALTERNATIVA» SUSPENSION RUSSIA COMPONENTS RUS» LLC «EDSCHA TOGLIATTI» GERMANY GERMANY LLC «SZMI» SZMI RUSSIA

LLC «PRAXAIR SAMARA» RUSSIA LLC «OZON PHARM» LLC «HI-LEX RUS» LLC «SOLOFILMS» RUSSIA RUSSIA JAPAN

LLC «ATSUMITEC LLC «TOGLIATTI PAPER MILL» TOYOTA TSUSHO RUS» PRODUCTION RUSSIA JAPAN CONSTRUCTION LLC «MABSCALE» DESIGN WORKS LLC «NOBEL RUSSIA AUTOMOTIVE RUSYA» NETHERLANDS, TURKEY UPDATED: MAY 2018 OPERATING PRODUCTION FAСILITIES IN SEZ 8

LLC «NOBEL AUTOMOTIVE RUSYA» LLC «CIE AUTOMOTIVE RUS» LLC «PRAXAIR SAMARA» SOP - AUGUST 2014 SOP - NOVEMBER 2015 SOP - NOVEMBER 2015

LLC «ATSUMITEC TOYOTA TSUSHO RUS» LLC «HI-LEX RUS» LLC «EDSCHA TOGLIATTI» SOP - NOVEMBER 2015 SOP - DECEMBER 2015 SOP - MARCH 2016

LLC «OZON PHARM» LLC «TOGLIATTI PAPER MILL» SOP - AUGUST 2017 SOP - NOVEMBER 2017

OPERATING 8 FACTORIES UPDATED: MAY 2018 PREFERENCES FOR INVESTORS 9

TAX FREE SPECIAL INDUSTRIAL BENEFITS CUSTOMS ZONE ADMINISTRATIVE INFRASTRUCTURE REGIME

PROFIT TAX EXEMPTION FROM DUTIES ON IMPORT GAS SUPPLY OF EQUIPMENT, RAW MATERIALS FEDERAL BUDGET AND COMPONENTS TO THE TERRITORY OF SEZ 1 615 MLN M3/YEAR

FIRST 6-10 AFTER 5 YEARS YEARS 10 YEARS ELECTRICAL POWER SUPPLY 0% IMPORT 0% IMPORT REGIONAL BUDGET SEZ DUTIES GOVERNMENT WARRANTIES DUTIES «TOGLIATTI» 0% VAT VAT 0 % 5 % 13,5 % COMPENSATION 180 MW FIRST 6-10 AFTER 5 YEARS YEARS 10 YEARS FOREIGN RUSSIA, COUNTRIES KAZAKHSTAN, WATER SUPPLY AFTER THE DATE OF THE ACTUAL ASSESSABLE PROFIT IS MADE BELARUS

7 300 M3/DAY

PROPERTY 0 % EXEMPTION FROM DUTIES ON EXPORT TAX 10 YEARS OF FINISHED GOODS OUTSIDE OF THE CUSTOMS SEWAGE UNION (RE-EXPORT) RIGHT TO BUY LAND 7 300 M3/DAY

LAND 0 % TAX 5 YEARS STORM WATER VAT VAT AND DUTIES SEZ AND CUSTOMS TO BE PAID «TOGLIATTI» DUTIES THS. M3/YEAR 0% CUSTOMS DUTIES 1 657 (FOREIGN PRODUCT) TO BE PAID

TRANSPORT 0 RUB. FOREIGN RUSSIA, FREE CONNECTION TAX 10 YEARS COUNTRIES KAZAKHSTAN, BELARUS «ONE STOP SHOP» SYSTEM UP TO 30% SAVINGS ON CAPITAL CONSTRUCTION UPDATED: MAY 2018 KEY COST PARAMETERS 10

PARAMETER SEZ AREA FOR RESIDENTS’ CONSTRUCTION COST

LAND RENT IN SEZ 2 55 366 RUB./HA 5.5 RUB./M PER YEAR 468.19 HA LAND VALUE IN SEZ 138 415 RUB./HA 13.84 RUB./M2

TOTAL PROJECT TARIFF ENERGY SUPPLIER PARAMETER CAPAСITY IN SEZ

LLC «GAZPROM MEZHREGIONGAZ GAS SUPPLY 3 3 250 000 M /HOUR 4 987 - 5 235 RUB./1000 M SAMARA»

ELECTRICAL POWER SUPPLY 180 MW 3.30* RUB./KWH LLC «TOGLIATTIENERGOSBYT»

DRINKING WATER 7 300 M3/DAY 13.54 RUB./M3 LLC «AVTOGRAD VODOKANAL»

SEWAGE 7 300 M3/DAY 16.67 RUB./M3

*Average tariff for the period of January - March 2018 with ВН voltage level. Tariff depends on price category. 1 HA = 10 000 М2 PRESENTED TARIFFS ARE INDICATIVE AND UNOFFICIAL Tariffs to be checked on websites of energy companies: 1 HA = 2.5 ACRES The values are indicated without VAT applicable within the territory SAMARAREGIONGAZ.RU TLTES.RU AVKVODA.RU of Stavropolsky district, Samara region UPDATED: MAY 2018 HOW TO BECOME A RESIDENT OF SEZ? 11

INVEST NOT LESS THAN CONCLUDE MLN RUB. AGREEMENT 120 GET THE INVESTMENT IN PRODUCTION PROJECT APPROVED ON CONDUCTING PREPARE BY THE SUPERVISORY INDUSTRIAL BUSINESS PLAN ACTIVITIES REGISTER WITHIN BOARD AND THE AND SUPPORTING EXPERT COUNCIL THE TERRITORY DOCUMENTS OF STAVROPOLSKY DISTRICT

1. 2. 3. 4. 5. UPDATED: MAY 2018 12

WELCOME TO SAMARA REGION!

CONTACTS

RUSSIA, SAMARA REGION, STAVROPOLSKY INVESTOR RELATIONS DIVISION DISTRICT, PODSTEPKI, SEZ TERRITORY, HIGH ROAD № 2, TEL.: +7 (8482) 555-163, +7 (8482) 555-188 LOT № 3, BUILDING № 4 [email protected] TEL. +7 (8482) 555-179 FAX +7 (8482) 555-227