THE STORY OF SUCCESS

2012

А 101

М 3

MRH

Big transport ring

OBNINSK2 KALUGA REGION: AT THE HEART OF IT ALL!

Total area:29,800 km2

Economically-active population:553 000

Major cities:Kaluga (pop 343 000),

Obninsk (pop 106 000)

LYUDINOVO

SUKHINICHY

46production facilitieslaunched

$ 8.2 billion(2006 – six months of 2012 )foreign investments

161 %real GRP growth since 2006

1st place in the CFD4th place in RussiaIn terms of direct foreigninvestments per capita

1stplace in Russia

In terms of industrial production growth(2011)

111.1%Average annual GRPgrowth since 2006

3 ECONOMIC HIGHLIGHTS

LOGISTICS AND

TRANSPORTATION

CLUSTER

PHARMACEUTICAL

CLUSTER

AUTOMOTIVE

CLUSTER

Shapers` RUS

4 VISION AND STRATEGY: CLUSTER POLICY!

Capacity –up to 125,000 vehicles per annum

3 brands: Peugeot, Citroenand Mitsubishi

Capacity –up to 180,000 vehicles per annum 2 brands: Volkswagen and ŠKODA

Capacity –15,000 vehicles per annum

2 brands: Volvo and Renault

ОЕМs

Suppliers

VOLKSWAGENGroup Rus

PCMA Rus Volvo Trucks

15 operate

10 are being built

Localization ofVolkswagenPolo sedan

Total percentage of localization atPCMA Rus

25companies

40% 33%Shapers` RUS

Engine productionPlant of VW AG

5 AUTOMOTIVE CLUSTER PRODUCTION FACILITIES

$ 450 millionInvestments

100,000 sq.mArea occupied by pharmaceutical cluster facilities in the industrial parks

1,260Number of major companies’ employees

RUB 14.1 billionTotal pharmaceutical cluster sales in 2007 – 2011

Pharmaceutical Industry Training Center

Drug products account for over

80%of the cluster products

5Anchor pharmaceuticals’ manufacturers STADA (Hemofarm)

Novo Nordisk

AstraZeneca

Berlin Chemie

Niarmedik Pharma

Kaluga Pharmaceutical

Cluster residents

• Mirapharm• Active Molecules Park• Sphera-Pharm • Medbiopharm Group• BION • Nuclear Medicine Federal Center

under Radiology Scientific Center• Obninsk Chemical and

Pharmaceutical Company • 40 innovative SMEs

6 KALUGA REGION PHARMACEUTICAL CLUSTER

OBNINSK

LYUDINOVO

SUKHINICHY

MLC «Vorsino»

TLC «Rosva»

(new border)

Logistic centers

Airport

Customs

7 MODERN LOGISTICS

TRAINING CENTERS

Total area – 10500 sq m

Workshops and labs – over 30

Studying at the same time – 500 people

Short-term educational programs – 100

State professional training programs – 25

Number of trained personnel – 7000

For Volkswagen – 4,000

For PCMA – 1,800

Automotive industry training center

February 2012 – the start of training

Studying at the same time – up to 250 people

Dual training system (theory and practice)

Technical and educational basis of the international level

Pharmaceutical industry

8

More than 2 million sq m —

Total volume of new housing projects

2 times increase

in housing construction by 2014

«Eastern

Balabanovo»

Project

400 000 sq m

«Voskresenskoye»

Project

130 000 sq m

«Swiss Village»

Project

350 000 sq m

«Zapadny»

Project

300 000 sq m

«Pravgorod»

Project

1 000 000 sq m

«Vorotynskaya

Roshcha»

Project

45 000 sq m

«Ecodolie»

Project

50 000 sq m

100% energy — efficient technologies`

use in construction by 2014

sq m of housing per citizen —

20% growth by 2016

..

HOUSING FOR PROFESSIONALS9

Investor-friendly product: industrial parks

Stable investment philosophy

System of development institutions

Comprehensive set of financial incentives

One project team: your project is our project

Equal support for every investor

Free choice of supplier

No bureaucracy, no middlemenNo hidden or unspecified charges

Our word is a cast iron guarantee

INVESTMENT CLIMATE AMONG THE BEST IN RUSSIA!10

LYUDINOVO

OBNINSK

Total industrial parks’ area: 5,562 ha

Still available: 1,722 ha70

Residents

1

4

5

Vorsino1

Obninsk27

2

3

Detchino3

Rosva4

Kaluga-Yug5

Grabtsevo А-park6

Lemminkainen, private IP7

Maklaki8

SOSENSKY

A 101

M 3

Sosensky – (NEW)9

Lyudinovo a territiry with promising prospects

Lyudinovo10

6

8

910

• Industrial Parks

• BrownFields

• Build to Suit

SUKHINICHY

BEST PLACEMENT OPTIONS11

Agency for RegionalDevelopment

of the Kaluga Region

«IndustrialLogistic»LLC

Agency for Innovation Development of

the Kaluga Region

Kaluga Region DevelopmentCorporation

Leading operator for innovation and high-tech

economy sector development

Attracting investments into the Kaluga Region;

state consultant for investors

The main instrument for logistic projects implementation in the Kaluga Region

State operator for establishment and development of industrial parks and engineering infrastructure

DEVELOPMENT INSTITUTIONS: A COMPLETE SET!12

Tax exemption period 0%3.22 - 9.66 inclusive

9.66 - 16.1 inclusive

Over 16.1

Total amount of actual capital investments within first

three years of the investment project’s realization

(m $)

Decreased tax rate 15,5 %

3.22 - 16.1 inclusive

16.1 - 32.2 inclusive

32.2 - 64.4 inclusive

Over 64.4

1 year

2 years

3 years

Total amount of actual capital investments within first

three years of the investment project’s realization

(m $ )

1 year

2 years

3 years

4 years

Property tax

Profit tax

TAX BENEFITS13

Be successful!