Moscow: City for Business

Department for External Economic and International Relations of Moscow

Moscow Investment Projects Road Show in Japan, 27 September 2013

Anatoly Valetov

Deputy Head of Department

Moscow Overview

12 mln Population:

$ 350 bln GDP:

2 511 sq. km Area:

Geographic location:

12 districts Administrative

division:

$ 57 bln City budget:

Center of European Russia

Department for External Economic and International Relations of Moscow 2

Moscow Means Gateway to Europe and CIS

Department for External Economic and International Relations of Moscow

Diversified economy

Healthcare and educational facilities

Excellent entertainment opportunities

Safety: better crime rate then in BRIC

capitals

Green city: 200 parks

3 international airports with 56.5 mln

passenger flow pa

Modern office buildings: 11.9 mln m2

280 shopping centers and malls

High-tech penetration: Wi-fi connection -

60%, 3G Internet - 90% of city coverage

3

Moscow Means Regional Finance Center

Department for External Economic and International Relations of Moscow 4

■ 90% of headquarters of

international banks and

finance organizations in Russia

■ 80% financial flows in

Russia

■ 50% Russian bank capital

■ 90% of stock exchange

trade volume in Russia

Moscow Means the Leading Economic Center in Russia

Department for External Economic and International Relations of Moscow 5

1 396

562738

Moscow Saint Petersburg Russia

538

112

262

Moscow Saint Petersburg Russia

8 052

3 4334 466

Moscow Saint Petersburg Russia

Monthly net income per

capita, USD

FDI per capita, USD

Retail turnover per

capita, USD

60%

79%

57%

By the end of 2012 the unit weight of foreign investment attracted into Moscow

amounted to 52.7 percent of all foreign investment attracted into Russia in 2012.

Moscow Means the City for Investment

Department for External Economic and International Relations of Moscow

FOREIGN INVESTMENT ATTRACTED INTO MOSCOW IN 2012 million USD

81 555

total volume of

investment

76 848

4 233

475 111 448

accumulated

FDI

other accumulated

investment

accumulated

indirect investment

6

Most attractive cities in Europe for FDI

Department for External Economic and International Relations of Moscow

London 49%

Paris 34%

Berlin 20%

Frankfurt 11%

Munich 8%

Barcelona 7%

Amsterdam 6%

Moscow 6%

Brussels 6%

Prague 4%

Milan 4%

Warsaw 4%

Stockholm 4%

Zurich 4%

Hamburg 3%

Source: Ernst & Young’s European attractiveness survey 2013

(total respondents: 808).

7

Geographical Structure of Foreign Investments Attracted to Moscow in 2012, millions of USD

Department for External Economic and International Relations of Moscow 8

Japan ranks 18th in the list of countries

from where foreign investments originated

Other countries: 3291,3

India: 101,8

UAE: 160,9

Japan: 162,1

Sweden: 181,8

Vietnam: 186,0

S. Korea: 237,2

Finland: 252,5

Austria: 386,4

Gibraltar: 410,1

Virgin Islands: 444.4

USA: 591,5

China: 903,0

Ireland: 1615,9

Germany: 2717,5

France: 2896,3

Luxembourg: 3360,7

Cyprus: 6058,0

Great Britain: 6834,6

Netherlands: 7384,2

Switzerland: 84727,0

Drivers of substantial growth (1/4)

Department for External Economic and International Relations of Moscow

Source: Brookings institution, EIU

9

Infrastructure Innovation Human capital Maturing consumer

Population, $ mln, 2012 GDP per capita, ‘000$ , 2012 Real disposable income per

capita, $, 2012

Frankfurt

Moscow

Tokyo

London

Sao Paolo

Mexico

Mumbai

Shanghai 24

Frankfurt 51,6

Sao Paolo

Moscow 44,7

Tokyo

Shanghai

41,4

London 52,0

23,7

Mexico 19,9

Mumbai 5,9

20,1

Germany 26 460

Russia 7 210

Japan 28 390

UK 26 000

Brazil 7 470

Mexico 6 350

India 1 110

China 2 400

Drivers of substantial growth (2/4)

Department for External Economic and International Relations of Moscow

Source: Rosstat, Oxford Economics, KPMG analysis

10

Maturing consumer Infrastructure Innovation Human capital

MOSCOW HAS AN EXCELLENT HUMAN CAPITAL BASE

Retain & Attract human capital Develop human capital base

Age structure, 2012 % population with higher education,

2012 City R&D potential

■ 42% of Russian researchers

work in Moscow

■ R&D investments growth is

40% over the 5 last years

■ > 1,2 mln of students

Drivers of substantial growth (3/4)

Department for External Economic and International Relations of Moscow

Source: Moscow Government, Rosstat

11

Human capital Maturing consumer Infrastructure Innovation

■ High tech sector focus

− Zelenograd Technopolis

− Mosgormash Technopark

− Moscow Technopolis

■ Academy of Science

− 470 institutes

− 55 000 of researchers

■ Special innovation infrastructure

− Business incubators

− Co working centers

SME Loans, $ mln

+27%

2012 2011 2010

387 $ mln of

state

guarantees for

SME in 2012

Drivers of substantial growth (4/4)

Department for External Economic and International Relations of Moscow 12

Innovation Human capital Maturing consumer Infrastructure

2012

$9 bln

7%

Social infrastructure

Other

Road infrastructure

Utilities

Infrastructure investment, 2012, $bln Investment needed 2012-2030, $bln

>$100bln

Investment

needed by 2030

Growth is Bound to Continue in Moscow

Department for External Economic and International Relations of Moscow 13

VISION 2025 – INVESTMENT SUPPORT

$ 350 bln (GDP)

$ 490 bln (GDP)

2012

Other Retail FS and business services Manufactoring Transport ENR Construction

2025F

Drivers

■ Maturing consumer

■ Human capital

■ Innovation / SME

■ Infrastructure

+40%

Moscow Focuses on Investment in Infrastructure for both Business and Living

Department for External Economic and International Relations of Moscow 14

Develop territory

Transport & Infrastructure

SMART-CITY

■ Current territory of Moscow is equal

to territory of Luxembourg

■ Another 140 000ha has been

added in 2012

■ Creating a united transportation system

between airports, railway stations and

underground

■ Energy efficient

■ Green

■ Comfortable

■ Safe

GREATER

MOSCOW

Moscow Has a Clear Strategy to Achieve Its Vision

Department for External Economic and International Relations of Moscow 15

Development of

economic potential

Further improvement of

human capital quality

Making Moscow a

SMART-city

2025 VISION

Emphasis Will Be Placed on Creating Comfortable Business Environment

Department for External Economic and International Relations of Moscow 16

A Dialogue With Business is Our Priority

Department for External Economic and International Relations of Moscow 17

■ Moscow City Government

team comes from

business background

Team

■ Guarantee of investors rights and interests

■ Open dialogue with investors

■ Fine-tuning of investment process driven by investors feedback

■ Personalized navigation

into city economy and

society

■ Focused investors

support

■ Availability of tools for

problems mitigation

Investors Support

■ Open declaration of Moscow

investment priorities and needs

■ Access to attractive projects,

including social infrastructure

■ Favorable terms of investments

(tax exempts, subsidies &

special economic zones)

Investors Attraction

Moscow

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INVEST IN MOSCOW

Department for External Economic and International Relations

Address: 12, Tverskaya str., Moscow, 125032

Tel.: +7 (495) 633-68-66

Fax: +7 (495) 633-68-65

www.dvms.mos.ru

www.investinmoscow.ru

E-mail: dms@dms.mos.ru