RUSNANO priorities and principals in working with foreign partners

11 March 2011

Sergey MostinskiyDirector for International Cooperation

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Russian Economy:Gap in innovations

0

2

4

6

8

10

12

14

16

0 10 20 30 40 50 60 70 80

GDP (purchasing power parity), $ trillion

Russia is ranked 7th-8th for its GDP

 

and 73rd for its innovation level

Innovation level (rated under WEF methodology)

Sources: World Economic Forum – The Global Competitiveness Report 2009-2010; IMF data

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1990-2020: Milestones of initial development and further growth of Russian economy

1990-2000 Setting the base for market economy

2000 – 2010 Economic growth dependent on raw materials export

2010 - 2020 New model of innovation-based economic growth

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Russia’s Modernization: Main Policy Challenge

Dmitry Medvedev, Nov 12, 2009:

“In the twenty-first century, our country once again needs to undergo comprehensive modernisation. […] I see this as a question of our country’s survival in the modern world”

”In our work to make our economy radically more effective we also need to put in place incentives and conditions for progress in a whole number of different directions [...] This calls for large-scale modernisation of production facilities in all economic sectors”

Vladimir Putin, Feb 8, 2008:

Mission: to implement the state policy in the field of nanotechnologies

Tasks: o commercialization of nanotech industry projects and innovationso production volume of Russian nano-enabled products by 2015 –

~ $30 bln per year

Areas of financing:o manufacturing of nano-enabled products and materials

o foresight and road maps, standardization, certification, safety in nanotech industry

o education, popularization

Founded in 2007

RUSNANO: Brief Overview

Page 5

o creation of infrastructure of nanotechnology projects

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Ownership participation — no more than 50% minus 1 share

Investment horizon — up to 10 years

Financing projects at early stage and stage of expansion

RUSNANO’s Terms of Financing

Favorable loans and guarantees

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RUSNANO: Support for Co-investors

Financial support Non-financial support

Equity:

RUSNANO’s minority stake in all projects

Credit:

Long-term andcomparatively cheap money.

Guarantee for loans

Friendly exit strategy:

RUSNANO does not aim to maximize its share price but to cover the expenses

Infrastructural:

Equipment as service, start-up incubation

Technical and investment expertise, certification, foresight and road maps

Managerial:

Assistance in marketing, investment spending supervision in the interests of all shareholders

Administrative

Shielding from the red tape and corruption

79

243088

7

5

56Total - 217 requests USA

Israel

Germany

Canada

Finland

UK

Italy

Other countries

Foreign Applicants’ Requests for FinancingFrom RUSNANO (Statistics as of 09.03.2011)

Page 8

30

87

52 2 2

11 1 1

Requests from EU countries - 60GermanyFinlandUKItalyLithuaniaFranceNetherlandsCyprusLatviaLuxemburgEstonia

Financial infrastructure

Industrial projects

Non- financial infrastructure

92 8 4*

Nanomaterials 40

Nanophotonics 15

Nanomedicine 16

Nanomaterial production technologies and equipment 10

Nanoelectronics 7

Other 4

Nanotechnology CentersInvestment funds

Dubna (Moscow Region)

Zelenograd (Moscow Region)

Kazan (Tatarstan)

Tomsk and Novosibirsk (West Siberia)

RUSNANO Capital

DFJ-VTB Aurora

Russian-Kazakh Fund

Metallurgy Fund

Skolkovo Fund

Perm Region Fund

North Region Fund

Pan -European Fund

Investment Projects TypesStatistics as of 09.03.2011

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Clusters of Investment Projects

Solar energy and energy conservation Nanostructured materials

Medicine and Biotechnology Mechanical engineering and metalwork

Infrastructure and EducationOptoelectronics and nanoelectronics

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For its approved investment of $4.5 bln RUSNANO has attracted co-investors for $6,7 bln (overall budget of projects – $11.2 bln) Consolidated revenue - 2015: above $13.3 billion (conservative scenario)

Approved by the Supervisory Council: 104 projects in 30 Russian regions

Out of 104 – 27 projects with foreign participation (out of which12 – EU)

RUSNANO’s Investment Projects: SummaryStatistics as of 09.03.2011

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RUSNANO Plans: Timeline

Additional major challenge: IPO after RUSNANO transformation into a joint-stock company

2007 2008 2009 2010 2011 2012 2013 2014 2015

 RUSNANO

transformation into

a joint-stock company

 Debt financing via

open markets started

 

Mass production in project companies

started

 

Exit from projects started

 RUSNANO is

founded.Government

makes contribution

into the charter capital

 First project is financed

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Sales of Russian nanoindustry products (target)

Incl. revenue of project companies set up with participation of RUSNANO (target as of 2007 )

Incl. revenue of 93 projects already approved by RUSNANO (adjusted forecast 2010 )

$ bln

Dynamics of the Russian Nanoindustry Market:Target and forecast

as of October 2010

Goals set by RUSNANO are comparable with the current volumes of the entire Russian innovation industry (goods and services)

30935

0

10

20

306

6,7

0

3,5

7

Sales of Russian nanoindustry products by 2015

Sales of innovative goods and services in Russia in 2008

Russian nanoindustry export by 2015

Russian export of innovative goods and services in 2008

$ bl

n

$ bl

n

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RUSNANO’s strategic goals towards 2015

What We Can Do Together

  Apply for financing of your project at www.rusnano.com Invest in a joint project together with RUSNANO Consider opportunities for your portfolio companies’ expansion into Russia

Co-investment Support for companies in entering the

Russian market Access to RUSNANO’s scientific and

technical expertise Joint creation of venture funds

RUSNANO offers

You can

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RUSNANOinvestment projects

Clusters of Investment Projects

Solar energy and energy conservation Nanostructured materials

Medicine and Biotechnology Mechanical engineering and metalwork

Infrastructure and EducationOptoelectronics and nanoelectronics

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Projects cluster:

Solar energy and energy

conservation

Solar Energy and Energy

Conservation HEVEL

Product

The largest manufacturer of solar modules in Russia will produce thin film photovoltaic cells based on micromorph silicon, ultrathin layers of amorphous silicon with submersed nanocrystallites of 10 nanometers to 30 nanometers.Design capacity for the manufacturing facility is more than one million solar modules per year (130 MW per year). The project, in addition to undertaking production, will establish a large research center with equipment value about one billion rubles. The research center will collaborate with the Ioffe Physical Technical Institute of the Russian Academy of Sciences.

ФОТО, ГРАФИКИ,ИЗОБРАЖЕНИЯ

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Product features

higher efficiency compared to other technologies at high temperatures perception of both direct and scattered light, does not require the tracking system ecologically friendly (no toxic elements) longer life time the lowest price compared with other types of modules

Thunder Sky Russian Plant of Li-Ion Batteries

Product

Technology: Integration of nanotechnology,electrochemistry, materials science, metallurgy andelectronics into high-end product.Project: Set up manufacturing facilities of novellithium Ion batteries to EV in Russia (Novosibirsk). Product: Batteries to EV based on novelnanostructured LiFePO4 materials.

Product features

Solar Energy and Energy

Conservation

high unit power of batteries cost is two times lower than similar products safety and reliability of batteries

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Energy Efficient Solid State Lighting

Technology

Optogan was founded in 2004 by three former students of prof. Alferov, Nobel Prize winner, and has developed a cutting edge technology for ultra-bright LEDs and a solid IP base. Optogan LEDs are intended for backlighting of mobile appliances, computer screens and LCD TVs, as well as general lighting applications.

Product features

the most advanced lighting technology maximum efficiency (illumination per watt):

- 2 times higher than fluorescent lamps - 8 times higher than incandescent lamps

ecological compatibility (no mercury and glass, unlike fluorescent lamps) the maximum life time (50,000 - 100,000 hours):

- 8 times higher than that of fluorescent lamps - 50 times higher than incandescent lamps

the light spectrum is the closest to the day spectrum of the sun - better health, capacity for work and stress resistance

Solar Energy and Energy

Conservation

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Projects cluster:

Nanostructured materials

Nanostructured materials CJSC "Prepreg-ACM"

Product

•Large-scale manufacturing of semi-products for a new generation polymer matrix composites – high quality prepregs with improved, as compared with analogues, strength and other performance characteristics with carbon and mineral fibers and nanomodified and filled with nanoparticles polyimide and epoxy resins.

•Prepreg - material made by impregnation of the reinforcing fiber base (ribbons, cords, fabrics) with precisely metered amount of uniformly distributed polymer matrix. Impregnation of the fibrous material is done in a way that allows the best use of the physical and mechanical properties of the reinforcing material and to ensure uniformity of the properties of the cured composite.

•Application areas: aircraft industry, wind power industry, sporting goods manufacturing, construction, motorcar- and shipbuilding.

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Nanoclay polymer composites

ProductTechnology: Polymer nanocomposites with organically modified and exfoliated montmorillonite nanoparticles uniformly distributed in the polymer matrix.

Project: Powerful up-to-date production of nanomaterials in Russia based on bulk polymers and their co-polymers

Product and application: 1) Refined and modified natural bentonite clay Oil and gas industry (drilling muds and oil refining) Food industry (adsorbents for impurities in fat-and-oil, winemaking and

other industries) Cosmetic and pharmacological industry2) Polymeric nanoclay-based nanocomposite Packaging industry (high-barrier films and PET preforms) Automotive industry (plastics) Protection of trunk pipelines Aircraft industry Cable industry (nonflammable cable compositions)

ЗАО «МЕТАКЛЭЙ»

Micrograph of Polymeric nanoclay-based nanocomposite

Potential Application

Nanostructured materials

high mechanical properties (module, impact resistance, etc.) better chemical resistance lower gas and vapor permeation higher flame retardant properties.

Product features

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Nanostructured materials Asphalt modifier UNIREM

Product

UNIREM is developed to modify asphalt mixes by “dry” method. UNIREM application does not require changes in the technology process of asphalt plants or temperature and timing modes of asphalt mixture production

Asphalt pavements with UNIREM have improved durability, high resistance to rutting and cracking, high water resistance, high toughness at subzero temperatures

Product features

increased durability of asphalt pavements by 25-30%

high resistance to rutting and cracking,

high water resistance,

high toughness at subzero temperatures

ЛОГО ПРОЕКТА

0

5 000

10 000

15 000

20 000

25 000

30 000

при температуре +20оС

при температуре -16оС

Коли

чест

во ц

икло

в до

разр

ушен

ия

Без модификатора "Унирем" С модификатором "Унирем"

Cycle

s befo

re fai

lure

+ 20ºC - 16ºC

Standard asphalt mix Asphalt mix with «Unirem»

0

5 000

10 000

15 000

20 000

25 000

30 000

при температуре +20оС

при температуре -16оС

Коли

чест

во ц

икло

в до

разр

ушен

ия

Без модификатора "Унирем" С модификатором "Унирем"

Cycle

s befo

re fai

lure

+ 20ºC - 16ºC

0

5 000

10 000

15 000

20 000

25 000

30 000

при температуре +20оС

при температуре -16оС

Коли

чест

во ц

икло

в до

разр

ушен

ия

Без модификатора "Унирем" С модификатором "Унирем"

Cycle

s befo

re fai

lure

+ 20ºC - 16ºC

Standard asphalt mix Asphalt mix with «Unirem»

Improved fatigue durability

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Projects cluster:

Medicine and Biotechnology

Medicine and biotechnology

Microsources, microspheres and components for brachytherapy

Product

The project will establish production in Russia of new, effective materials for treating prostate, liver, and pancreatic cancer—radioactive microsources and nanostructured microspheres.

These tools, called seeds, are used in brachytherapy, a method of treating cancer using a radioactive source that is introduced into the diseased organ and that acts directly on the cancer.

The new technology provides for modification of the surface of the microspheres at the nanoscale level (30 nm to 50 nm). As a result, the microspheres become biocompatible, which improves their fixation in the patient’s tissues.

Product features

affects the tumor without damaging other organs

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Medicine and biotechnology

Technology

The project is based on a new technology providing precise targeting of pharmaceuticals into mitochondria – intracellular “power-stations”. Since 2004 the project applicants developed several pharmaceuticals based on new mitochondrially−targeted antioxidants. Wide range of preclinical studies showed high efficacy of developed drugs in treatment of age-related eye-diseases, cardio-vascular pathologies etc. In 2009 first project’s drug-candidate entered clinical trials. The project is based in Moscow State University.

Product features

treatment for dry macular degeneration (now cured nowadays) stops the development of glaucoma (currently effective means of

guaranteeing the preservation of vision not available) safety during prolonged use, the expected lack of side effects simple and cheap way to reduce the likelihood of heart attack and

treatment of arrhythmia in case of coronary heart disease

ЛОГО ПРОЕКТА

Skulachev ions – mitochondrially targeted pharmaceuticals

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Medicine and biotechnology

Product

The company produces track membrane (diameter 20 – 100 nm) and devices for plasmapheresis based on the membrane.

Continuous process of membrane plasmapheresis using the apparatus "GEMOFENIKS“ is carried out in a sterile single-needle extracorporeal circuit for single use.During the procedure at the same time: formed elements are returned to the patient's bloodstream plasma is collected in a special receiver plasma substitution process

Product features

method of blood cleaning - filtration membrane technology pore diameter: 20 - 100 nm (analogues - 400 nm) small volume of extracorporal circuit: 35 ml hardware-based and non-hardware-based application single-needle connection

Cascade plasmapheresis equipment using track

membranes

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Projects cluster:

Mechanical engineering

and metalwork

Product

Product features

increase corrosion resistance, plasticity improved resistance to shock load improving thermal insulation properties

Technological Systems for Protective Coatings

Mechanical Engineering

and Metalwork

About technology:Development of technologies of multifunctional nanostructured coating deposition to extend the life cycle of equipment and to upgrade Russia's machinery, oil & gas and other industries.

Production: Nano-structured coating application services (heat-proofing,

heat-resistant, wear-resistant, corrosion-protective, electroinsulating, superconducting composition);

End solution for nano-structured coating application (supply, adjustment and maintenance of equipment, adaptation of nano-structured coating application technology and licence selling, development of nano-coating material, e.t.c.)

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MICROBOR NANOTECH – CBN AND NCBN CUTTING TOOLS

Product

The company produces soldering and solid cutting tools for metal and other hard materials processing in various fields (engineering, aerospace, automobile industry, etc.)

Microbor Nanotech is a new generation manufacturer of composite materials based on micro- and nano – crystalline Cubic Boron Nitride (CBN and NCBN) and cutting tools made of these materials. Microbor was the first in the world to create tools based on nano CBN material.

Product features

high-efficiency tool reduction in processing cost reduction in processing time by 40-90%

Mechanical Engineering

and Metalwork

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SETTING UP MASS PRODUCTION OF HIGHLY-RELIABLE SPRINGS USING CONTROLLED FORMATION OF HOMOGENEOUS NANOSUBSTRUCTURES IN SPRING MATERIAL

Product

The final goal of the Project is to set up the technology of the multifunctional springs mass production. The technology is based on the high-temperature and mechanical treatment with resulting nanosubstructure formation in the spring material, which leads to a major improvement of the springs characteristics.This technology may be utilized for any springs of hot winding and as a product itself.The plans include construction of automatically adjusted production line of the hot-wound springs using basically new technology.

Product features

number of cycles till destruction is 10 times higher in comparison with other technologies level of permissible operating voltages is 35-40% higher in comparison with other

technologies cost reduction due to the possibility of using cheaper grades of steel no subsidence

Mechanical Engineering

and Metalwork

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Projects cluster:

Optoelectronics and

nanoelectronics

Product

Product features

contents identification without opening readout out of sight, on the run simultaneous readout of several tags

The equipment of Galileo Vacuum Systems s.p.a. for surface metallization utilizes the thermal vacuum deposition method, based on the process of thermal evaporation of metals by heating them to high temperatures with subsequent dispersion of matter in vacuum space of chamber and its condensation on the processed surface

The project is geared toward manufacture of RFID-tags and metalized packing material using unique equipment of Galileo Vacuum Systems s.p.a..

RFID-tags are used as a substitute for bar-codes for the purpose of stock tracking and identification in different systems.

Metal packaging materials (film and paper) for food and cigarettes

Equipment for metallization of roll materials

CJSC Galileo Nanotech Optoelectronics and

Nanoelectronics

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Optoelectronics and

nanoelectronics

Manufacturing of multimedia DSPs and consumer devices based on them

Product

Multimedia processors (SoC)HD decoder and encoder - multiprocessing platform intended for decoding and encoding HD-video

Digital set-tops(Set top box) with enhanced functionalityuser set top boxes implementing digital broadcast reception, IP broadcast reception, IP Telephony, decoding video and audio of all modern formats in real-time, home network router, home server for Video-on-Demand and Time-shift, personal payment terminal with a reverse communication channel

Digital broadcasting studios: professional device for capturing and encoding HD-video and HQ-audio from signal sources of different types

Product features

production based on its own chips broad functionality of the software

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You can:- Apply for financing of your project at www.rusnano.com- Invest in joint project together with RUSNANO- Further develop your technology with RUSNANO help- Participate in RUSNANO industrial and infrastructural

projects

We guarantee:Financial & Non-financial support for co-investors

RUSNANO welcomes opportunities to collaborate with foreign companies, governmental organizations, investment funds and private investors