Industrial Special Economic Zone “Togliatti”

SAMARA REGION INDUSTRIAL SPECIAL ECONOMIC ZONE “TOGLIATTI”

UPDATED: FEBRUARY 2017 02 UPDATED: FEBRUARY 2017 SAMARA REGION IS ONE OF THE MOST ECONOMICALLY DEVELOPED REGIONS OF THE RUSSIAN FEDERATION 53 600 SQ. KM AREA

MURMANSK

SAINT PETERSBURG 3.2 MLN MOSCOW POPULATION

SAMARA SAMARA REGION KHABAROVSK 1 256.7 NOVOSIBIRSK IRKUTSK MLN RUB. GROSS REGIONAL PRODUCT (2016 - FORECAST)

SAMARA REGION RATINGS 13THPLACE IN RUSSIA IC3 GROUP ruAA BB/Negative Ba3/Negative INVESTMENT POTENTIAL HIGH INVESTMENT POTENTIAL – CREDIT RATING CREDIT RATING CREDIT RATING 3RD LEVEL

NATIONAL INTERNATIONAL EXPERT RA NATIONAL RATING AGENCY STANDARD & POOR’S MOODY’S

SAMREGION.RU SAMARA REGION GOVERNMENT 03 UPDATED: FEBRUARY 2017 TOGLIATTI IS ONE OF THE LARGEST CITIES IN THE RUSSIAN FEDERATION 284.3 KAZAN SQ. KM ULYANOVSK AREA 711.1 POPULATION TOGLIATTI

SYZRAN ZHIGULEVSK

RAILWAY RIVER HARBOR

SAMARA KINEL OTRADNY NOVOKUIBYSHEVSK M5 FEDERAL INTERNATIONAL HIGHWAY AIRPORT KURUMOCH CHAPAEVSK UFA

INDUSTRIAL GIANTS SARATOV

ORENBURG

ORENBURG OFFICE OF THE MAYOR CITY OF TOGLIATTI 04 UPDATED: FEBRUARY 2017 ADVANTAGEOUS LOCATION

SAINT PETERSBURG 1 763 КМ

IZHEVSK 629 КМ NIZHNIY NOVGOROD 667 КМ MOSCOW 1 016 КМ NABEREZHNYE CHELNY 431 КМ

KALUGA 1 019 КМ CHELYABINSK 907 КМ TOGLIATTI

SAMARA 90 КМ

RADIUS POPULATION

500 КМ 20.4 MLN

RADIUS POPULATION

1 000 КМ 71.2 MLN 05 UPDATED: FEBRUARY 2017 SAMARA REGION IS ONE OF THE TOP-10 RUSSIAN REGIONS IN TERMS OF LABOR POTENTIAL

Togliatti Samara region

MIDDLE AGE 39.6 YEARS 40.6฀YEARS

AVERAGE MONTHLY SALARY* 29 611 RUB. 27 943 RUB.

HIGHER BRANCHES HIGHER BRANCHES HIGHER EDUCATION INSTITUTIONS EDUCATION OF OTHER EDUCATION OF OTHER 7 INSTITUTIONS 7 INSTITUTIONS 27 INSTITUTIONS 17 INSTITUTIONS

COLLEGES AND TECHNICAL SCHOOLS COLLEGES AND COLLEGES AND 12 TECHNICAL SCHOOLS 77 TECHNICAL SCHOOLS

Number of specialists which annually graduate with:

HIGHER EDUCATION MORE THAN 8.3 THS. MORE THAN 24.8THS.

SECONDARY EDUCATION MORE THAN 3.7 THS. MORE THAN 17.2THS.

Sources: *According to Samarastat for 11 months 2016 WWW.SAMARASTAT.GKS.RU WWW.EDUCAT.SAMREGION.RU WWW.TGL.RU 06 UPDATED: FEBRUARY 2017

INDUSTRIAL SPECIAL ECONOMIC ZONE «TOGLIATTI» VOLUME OF REALIZED INVESTMENT IN SEZ

53% 660 HA 3% AREA OF SEZ ON THE TERRITORY OF STAVROPOLSKY DISTRICT 16 401.37 MLN RUB.

39% STAVROPOLSKY DISTRICT 5%

BUDGETARY FUNDS EXTRABUDGETARY (PRIVATE) FUNDS 6 843.49 MLN RUB. 9 557.88 MLN RUB.

FEDERAL BUDGET RESIDENT COMPANIES’ FUNDS 6 290.12 MLN RUB. 8 704.00 MLN RUB.

SAMARA REGION BUDGET OTHER FUNDS JSC «AVTO 553.37 MLN RUB. 853.88 MLN RUB. 3RD STAGE 233 HA VAZ» 2018-2019 2ND STAGE 246 HA 2015-2017 1ST STAGE 181 HA COMPLETED TECHNOPARK «ZHIGULI V ALLEY» STATE INVESTMENTS PRIVATE INVESTMENTS 1 RUB. 1.39 RUB.

TOGLIATTI 07 UPDATED: FEBRUARY 2017

SOCIAL INFRASTRUCTURE 122

SOCIAL AND BUSINESS OFFICES AND LABORATORIES CENTER (4 BUILDINGS)

STAVROPOLSKY DISTRICT TECHNICAL SUPPORT PROFESSIONAL TRAINING CENTER CENTER

CONFERENCE HALL HOTEL (37 ROOMS) JSC «AVTO (300 PEOPLE) 3RD STAGE 233 HA VAZ» 2018-2019 2ND STAGE 700 м 246 HA 2015-2017 1ST STAGE 7 8 181 HA COMPLETED TECHNOPARK «ZHIGULI VALLEY»

PARKING AREA (600 CARS) CANTEEN (500 PEOPLE)

TOGLIATTI WWW.Z-VALLEY.CIK63.RU CALL-CENTER Website of «Zhiguli Valley» 08 UPDATED: FEBRUARY 2017 RESIDENTS OF SEZ «TOGLIATTI» 19 22,7391 5 029 RESIDENTS BLN RUB. WORK PLACES TO BE CREATED DECLARED INVESTMENTS

LLC «GKN DRIVELINE TOGLIATTI» LLC «JV SYSTEMS» LLC «AZ POWERTRAIN» UNITED KINGDOM USA, RUSSIA SWITZERLAND

Кеда LLC «KERAMOGRANIT KEDA» LLC «MUBEA Керамогранит LLC «TPV RUS» RUSSIA SUSPENSION RUSSIA COMPONENTS RUS» LLC «MANN+HUMMEL GERMANY TOGLIATTI» GERMANY

LLC «CIE LLC «SANOH AUTOMOTIVE RUS» VOLGA» JAPAN SPAIN LLC «EDSCHA TOGLIATTI» LLC «PRODMASH-KOMPOZIT» LLC «PRAXAIR RUSSIA GERMANY LLC «SZMI» SAMARA» SZMI RUSSIA USA

LLC «SOLOFILMS» RUSSIA LLC «OZON PHARM» LLC «HI-LEX RUS» LLC «TOGLIATTI PAPER MILL» RUSSIA JAPAN Production RUSSIA LLC «ATSUMITEC Construction LLC «NOBEL TOYOTA TSUSHO RUS» Design works AUTOMOTIVE RUSYA» JAPAN NETHERLANDS 09 UPDATED: FEBRUARY 2017 PREFERENCES FOR INVESTORS

TAX FREE CUSTOMS SPECIAL INDUSTRIAL BENEFITS ZONE ADMINISTRATIVE INFRASTRUCTURE REGIME

2012 - 2018 EXEMPTION FROM DUTIES ON IMPORT OF 2% EQUIPMENT, RAW MATERIALS ANDCOMPONENTS 1 615 3/ 2019 - 2020 TO THE TERRITORY OF SEZ MLN M /YEAR 5% GAS SUPPLY 9% 2021 - 2022 1 GOVERNMENT 180 2023 - 2024 0% import SEZ 0% import 12% duties «TOGLIATTI» duties WARRANTIES MW 0% VAT COMPENSATION ELECTRICAL POWER SUPPLY VAT 15,5% 2025 AND FURTHER PROFIT TAX FOREIGN COUNTRIES RUSSIA KAZAKHSTAN 7 300 BELARUS M3/YEAR 0% WATER SUPPLY 10 YEARS PROPERTY TAX 2 7 300 EXEMPTION FROM DUTIES ON EXPORT OF RIGHT TO M3/YEAR 0% FINISHED GOODS OUTSIDE OF THE CUSTOMS BUY LAND SEWAGE 5 YEARS UNION (RE-EXPORT) LAND TAX

VAT and duties 1 657 0 RUB. to be paid SEZ VAT and customs THS. M3//YEAR «TOGLIATTI» 5 YEARS 0% customs duties duties to be paid STORM WATER TRANSPORT TAX (foreign product)

ACCELERATED PROCEDUREFOR FOREIGN COUNTRIES RUSSIA THE RECOGNITION OF KAZAKHSTAN 3 FREE CONNECTION R & D EXPENSES BELARUS

«ONE STOP SHOP» UP TO 30% SAVINGS ACCELERATED DEPRECIATION SYSTEM ON CAPITAL CONSTRUCTION 10 UPDATED: FEBRUARY 2017 KEY COST PARAMETERS

PARAMETER EZ AREA FOR RESIDENTS’ CONSTRUCTION RATE/TARIFF

LAND RENT IN SEZ 55 366 RUB./HA 5.5 RUB./M22

LAND VALUE IN SEZ 468.19 HA 138 415 RUB./HA 13.84 RUB./M2

CONSTRUCTION OF A STANDARD INDUSTRIAL BUILDING 47 586 RUB./M2 (average cost)

PARAMETER TOTAL CAPACITY IN SEZ* RATE/TARIFF

GAS SUPPLY 250 000 M3/HOUR 5 650 RUB./1000 M2

ELECTRICAL POWER SUPPLY 180 MW 2.96 RUB./KWH

DRINKING WATER 7 300 M3/DAY 15 RUB./M3

TECHNICAL WATER 35 620 M3/DAY 12 RUB./M3

SEWAGE 7 300 M3/DAY 18 RUB./M3

STORM WATER 40 260 M3/DAY 28 RUB./M3

*Construction of a standard industrial building

PRESENTED TARIFFS ARE INDICATIVE AND UNOFFICIAL Tariﬀs to be checked on websites of energy companies: 1 HA = 10 000 М2 The values are indicated without VAT applicable within the territory of Stavropolsky district, Samara region WWW.AVKVODA.RU WWW.SAMARAREGIONGAZ.RU 1 HA = 2.5 ACRES 11 UPDATED: FEBRUARY 2017 HOW TO BECOME A RESIDENT OF SEZ?

INVEST NOT LESS THAN 5 120 MLN RUB.IN PRODUCTION

CONCLUDE AGREEMENT ON CONDUCTING 4 INDUSTRIAL ACTIVITIES

GET THE INVESTMENT PROJECT APPROVED BY THE 3 SUPERVISORY BOARD AND THE EXPERT COUNCIL

2 PREPARE BUSINESS PLAN AND SUPPORTING DOCUMENTS

1 REGISTER WITHIN THE TERRITORY OF STAVROPOLSKY DISTRICT 12

WELCOME TO SAMARA REGION!

Russia, Samara region, Alexey Pakhomenko CONTACTS Stavropolsky district, Podstepki, CEO SEZ territory, High road №2, [email protected] lot №3, building №4 Tel. +7 (8482) 555-179 Fax +7 (8482) 555-227 Investor Relations Division WWW.OEZTOGLIATTI.RU [email protected]