Investment offer JSC «Kashkadaryaneftegazpromstroy» LIST OF CONTENT 1 Abstract 4 1.1. General information about the company 4 1.2. Rational reasonability of the development of enterprise 5 1.3. Financing requirement 5 1.4. The share of the company delivered to the investors 6 1.5. Marketing plan summary 7 1.6. Key financial indicators forecast 8 1.6.1. Forecast of revenues and earnings for 2015 - 2020 8 1.6.2. Forecast of investments and income for 2015-2020 9 1.6.3. Net profit forecast for 2015-2020 10 1.7. Main benefits and risks of the project 10 1.8. Main indicators of investment attractiveness of the project 10 2 Company Description 11 2.1. History of the company 11 2.2. Information about the owners (shareholders) of the Company 13 2.3. Structural organization of the company 14 2.4. Administration and management 14 2.5. The main financial indicators for the 5 years 16 3 Organization of the production 17 3.1. Machine and mechanism 17 3.2. Production assets, capacity, infrastructure 18 1. UE «Kashkadaryatransdorpromstroy» 18 2. UE «Kashkadaryaspewenergomontaj» 18 3. UE «Kashkadaryactroymontajservis» 18 4. UE «Kashkadaryapromstroymaterial» 18 5. UE «Kashkadaryatransservisstroy» 18 6. UE «Kashkadaryaneftegasstroyinvest» 19 3.3. Raw materials base 19 3.4. Impact on the environment 19 4 Description of works / services 19 4.1. Main types of works/services 19 4.2. Purpose and scope 19 4.3. The main characteristic 20 4.4. The main features, benefits of customers 20 4.5. The presence or the need for licensing 21 4.6. The degree of readiness for release and sales 21 Страница 2 Investment offer JSC «Kashkadaryaneftegazpromstroy» 4.7. The need for certification, and certificates 22 4.8. The need for and the possibility of modernization of products 22 (works / services) 4.9. Guarantee and service 22 5 Market review 23 5.1. The general analysis of the market, works and services 23 5.2. Market segmentation, analysis capacity, saturation, and 23 dynamics of market segments 5.3. Analysis of the competitive environment 23 5.4. Marketing and sales strategy works and services 23 5.5. Marketing analysis of the strengths and weaknesses of the 24 company 6 Financing plan 26 6.1. Conventions used in the construction of financial models 26 6.2. The financing structure 27 6.3. The results of the financial model of the project 27 6.4. Investment Analysis Project 28 6.5. Analysis of sensitivity and scenario analysis 29 7 The main risks analysis 30 7.1. Characteristics of the main risks 30 7.2. An analysis of the degree of influence on the economic efficiency of risk for different participants of the project and options to minimize these 30 risks 7.3.Conclusions and recommendations 31 8 Contact information 32 Страница 3 Investment offer JSC «Kashkadaryaneftegazpromstroy» 1. Abstract 1.1. General information about the company Joint Stock Company "Kashkadaryaneftegazpromstroy" was created under the state program of privatization on the basis of state-owned enterprises, the order №785 dated from 29.12.1994, the Kashkadarya Territorial Administration of State Property Committee of Uzbekistan. Address of the Company: 180204, Republic of Uzbekistan, Kashkadarya region, Karshi district, Mevazor village, Navruzkurgani. In accordance with the Law of the Republic of Uzbekistan "On joint-stock companies and protection of shareholders' rights" on May 6, 2014 and the decision taken at an extraordinary general meeting of shareholders on January 30, 2015 and registered on the Charter, in the new edition of 27.02.2015, №65, the name of the company was renamed to JSC "Kashkadaryaneftegazpromstroy» («Qashqadaryoneftgazsanoatqurilish» joint-stock- company). Страница 4 Investment offer JSC «Kashkadaryaneftegazpromstroy» The main activity of JSC "Kashkadaryaneftegazpromstroy" is the construction and commissioning of the production capacity of the fuel and energy complex production facilities for civil construction. In addition to performing contractual construction works, the Company manufactures products for industrial purposes, produces consumer goods, providing services. 1.2. Rational reasonability of the development of enterprise The Company strengthens its competitive advantage by expanding the scope of services and the introduction of new services. The Company is committed to the full and timely implementation of the commitments under the contracts. That is to prove a positive assessment of the organization, and its place among the companies in the oil and gas industry, and benefits to expand financial opportunities and the growth of confidence in the company among the "Customers." 1.3. Financing requirement The need to attract additional financial resources is a necessity for the production costs of the following main objectives: - renewal the material and technical base of the Company, including the purchase of new technology and equipments, in accordance with the Resolution of the Cabinet of Ministers form March 28, 2014 №75 «On measures for the effective management of State Property"; - development and introduction of new technologies and equipment; - growth in the provision of works and services; - acquisition of business equipment to the tasks defined by the Decree of the President of the Republic of Uzbekistan № PD-2158 "On measures of further implementation of information and communication technologies in the real economy" Страница 5 Investment offer JSC «Kashkadaryaneftegazpromstroy» 1.4. The share of the company delivered to the investors JSC "Kashkadaryaneftegazpromstroy" was established as a joint stock company. Today the Company’s statutory fund is 768 795 000 UZS. Statutory fund of the Company is divided into 512 530 shares with a par value of 1500,0 UZS Share of the shareholder № Shareholder Items of Thousand % shares UZS 1 JSC «Uzneftegazstroyinvest» 261 388 392 082 51,00 2 Share of other legal entity 6 743 10 114,5 1,32 The proportion of individuals (2,210 3 244 399 366 598,5 47,68 people). TOTAL 512 530 768 795 100 Страница 6 Investment offer JSC «Kashkadaryaneftegazpromstroy» In accordance with Annex №1 to the Decree of the President of the Republic of Uzbekistan dated from April 28, 2015 # PD-2340 "On measures to increase the proportion of the value of private property and the economy," share of the JSC "Kashkadaryaneftegazpromstroy" is projected to be sold in the amount of 51% to strategic foreign investors. The distribution of the statutory fund of JSC "Kashkadaryaneftegazpromstroy" after the implementation of the Presidential Decree dated from April 28, 2015, # PD-2340 will appear in the following order: Share of the shareholder № Shareholder Items of Thousand % shares UZS 1 Share of the strategic foreign investor 261 388 392 082 51,00 2 Share of other legal entity 6 743 10 114,5 1,32 The proportion of individuals (2,210 3 244 399 366 598,5 47,68 people). TOTAL 512 530 768 795 100 1.5. Marketing plan summary An active marketing strategy is required in the appearance of increasing competition and the development of new segments. The marketing strategy of the company conceived taking into account expected changes in the market and is focused on strengthening the Company's position in the market, to increase the competitiveness of the estimates, the expansion of the network of services and improve the quality, renewal of the staff with attraction of the professionals and young specialists. The main objectives of the Company's marketing strategy is aimed at ensuring cost- effective operation in a constantly changing environment, the competitiveness of the Company in order to meet the interests of customers, maintaining the public image, for maximum customer satisfaction in terms of volume, structure and quality of service, which creates conditions for stability of the business relationship. Besides, the Company has set a goal to increase competitiveness, which is intended to increase promotional activities, the creation of additional enterprises to provide new types Страница 7 Investment offer JSC «Kashkadaryaneftegazpromstroy» of services, the organization of an effective system of control and management, the introduction of new information technologies. The implementation of the above mentioned tasks is estimated to be realistic, given sufficient support from the founder and relatively high profitability of the Company. 1.6. Key financial indicators forecast 1.6.1. Forecast of revenues and earnings for 2015 – 2020. Indicators 2015 2016 2017 2018 2019 2020 Total income 28 835 30 275 31 785 33 375 35 050 36 800 including income from 21 830 22 920 24 100 25 305 26 570 27 900 construction activities The total costs 28 115 29 490 30 930 32 442 34 035 35 700 Direct production costs 23 900 25 100 26 300 27 600 29 000 30 350 Period expenses 4 215 4 390 4 630 4 842 5 035 5 350 Income from financial 5 6 7 8 9 10 operations Profit before tax 725 791 862 941 1 024 1 110 Income tax and tax on profits 370 400 440 480 520 565 Net income 355 391 422 461 504 545 Taking into consideration of development works and services for the past 6 years and taking into account strategic objectives assigned to the Company's, the total revenue in 2020 is projected at the rate of 36 000 mln. UZS or 1,3 times more than in 2014. And over the past 6 years and taking into account the tasks set to the Company, the total projected profits in 2020 of 545 mln. UZS or 3,3 times more than in 2014. Страница 8 Investment offer JSC «Kashkadaryaneftegazpromstroy» 1.6.2. Forecast of investments and income for 2015-2020 The investments of the Company in 2020 will be amounted 1 700,0 mln. UZS The average annual income to invest in period of 2015-2020 will estimate 20%. Provision is further improving and intensifying investment activities will be through the following: - placement of funds from the sale of shares of JSC "Kashkadaryaneftegazpromstroy" in financial instruments large and strong domestic banks; - growth in scope of works and services; - enhance monitoring and analysis of the Customers, to which the company carried out works and services.