CHUVASH REPUBLIC INVITATION TO COOPERATION

1. CHUVASH REPUBLICINVITATION TO COOPERATION Guǎngzhōu 22-25, September

2. Chuvash Republic

3. Geographic location Chuvash Republic In the center of the European part of the Russian Federation

4. General information Competitive advantages • political stability • informational transparency policy • legal basis on state support of investors • effective economic and budgetary policy • high industrial potential • qualified labor • developed engineering, social and transport infrastructure • favorable environment and ecology Territory – 18300 square km Capital–Cheboksary Population– about 1,3 mln. people 21 municipal regions, 5urban districts, 7urban and 284rural settlements Density of population– 70,1 people per1square km (average in Russia – 8.4)40 % of population lives in rural area Distance from Cheboksary to Moscow–650km Moscow time zone - MSK (UTC+4)

5. Basic indices Fixed investment, mln. USD Industrial production index

6. Foreigntradeturnover of the Chuvash Republic, mln. USD 6

7. Industrial complex of the Chuvash Republic      • about 2,5thousandenterprises • shipping volume: 2011 ~ 3453,85mln. USD(half year • 2012~ 1870,52 mln. USD) • 78,4 thousand employees or30% employed in the • economy • 35%of gross regional product • over40%of taxbudget revenue Industrial production structure 7

8. Strategic Partnership JSC “Russian Railways” Scope of delivery of Chuvash Republic enterprises 8,4 Deliveries for JSC “Russian Railways” carried out by 27 industrial enterprises of the Chuvash Republic Billion Rubles 2006 2007 2008 2009 2010 2011 “ALROSA” Co. Ltd. RENOVA ORGSINTEZ 8

9. Machine building and metal working Share in total industrial yield – 36 % Total number of workers in the branch – 39.9 thousand people • Main products: • industrial tractors of multi-profile implementation; • spare parts and parts to auto tractor machinery, agricultural machinery and automobiles; • specialized automobiles; • refrigerating units of various volumes; • electronics and avionics; • looms; • electrical devices and equipment; • wires and cable equipment; • open wagons, etc. 9

10. Chemical Industry Share in total industrial yield – 11.3 % Total number of workers in the branch – 4.9 thousand people Main productions: inorganicic products; organicic products for industry; organicic dyes; plant protection chemicals; polishing and painting materials; house hold chemicals; organicosilicon products; poliol mixtures of «poliur» typeand their components; chemical reagents foroil production; intermediate products for pharmaceutical industry and medicine; heat insulating materials; technical rubber andpyrotechnic products 10

11. LLC «Eye Microsurgery» and «Contour» Products and services: • sterile surgical suture material with atraumatic needles; • sterile needles for acupuncture (needle therapy); • ophthalmic cannulas for aspiration and irrigation; • napless sorption bandage «Tupfers-Contour»; • chopped surgical fibers; • decoratory and hardening coating of metal surfaces using vacuum plasma spraying Technical and performance specifications of surgical suture material: •special form of the needlepoint enhancing tissue penetration, high pungent and cutting properties and, as a result, less prominent living tissue cicatrization ; •use of high quality needles from the best producers; •reliability of the needle fastening arranged in the central hole at the butt end that provides high injury resistance; •high elasticity of the needle tip. Quality management system of the company is certified according to the international standard ISO 9001-2008 428010, Russia, Chuvash Republic, Cheboksary, Korolenko Street 4 Phone: +7 8352 31-12-24, 31-13-18, 31-16-44; Fax: +7 8352 31-12-44 E-mail: mgik@gc-kontur.ru, mgikchts@yandex.ru; www.medarticle.ru

12. CJSC «PROiCO» Production characteristics: - special attention to the goods quality; - a wide range of products: more than 700 items; - implementation of the modern highly-precise equipment; - use of high-alloy steels characterized by the best properties and purchased from Russian producers; - ever-improving technical processes; - annual increase of production capacity, assimilation of new types of products primarily spare parts production for modern productive and highly-precise machines. In 10 years the company has gained a wide experience of gradual production process improvement of complex, highly-precise and crucial parts. CJSC «PROiCO» produces spare parts for weaving machines SWM (shuttleless weaving machines), manufactured by OJSC «Textilemach» (Cheboksary), OJSC «Syvtechmach» (Novosibirsk), as well as for the machines of foreign producers, other types of textile or different equipment upon customers request. The company specializes in wholesale and retail trade, provides renovation and upgrade of weaving machines SWM 428016, Russia, Chuvash Republic, Cheboksary, Lapsarskyproezd 63а Tel.: +7 8352 50-77-67, 50-74-71; Tel./fax +7 8352 50-76-28, 50-76-55 E-mail: proico@mail.ru; www.proiko.ru

13. LLC «Ecohouse» The company produces furniture and decorative componentswith artificial ageing for bars, restaurants, cafes, country houses, outdoor leisure areas, summer houses. All products are made of natural softwood. Artificial ageing emphasizes the beauty of natural wood, creates natural indoor atmosphere. Use of up-to-date protective wood coatings allows to keep wood resistance to atmospheric conditions. Services provided:design, manufacture of houses, bath houses and summer houses, check assembly of log construction, delivery, installation,manufacturing of any small-sized products, indoor repair and wood-like firnish LLC «Ecohouse»provides high quality and inexpensive sets of Swedish Cope rounded logs with a diameter of 190 to 280 mm after a Finnish technology to build wooden houses, bath houses and summer houses according to the company catalogue or directly upon the customer request. The production is equipped with the line of highly-precise, log shaping and rotor type with the logs processing on centers. The experience shows that use of this technology allows to achieve the smoothest logs surface 429509, Russia, Chuvash Republic, NovojeAtlashevo, Promyshlennaja Street, 3 Tel.: +7 8352 37-03-14; Fax: +7 83540 2-82-43, 2-82-91 E-mail: ecohouse@bk.ru; www.myhappyhome.ru

14. JSC «SKB SPA» The company has the quality management system certified according to the requirements of ISO 9001:2008as applied to design, development, production and maintenance of technical process control and adjustment devices. The company products are certified within the GOST R system as part of voluntary certification. Company profile: - development; - technical programming; - manufacturing; - request supply; - adjustment; - aftersales service; - consultation For more than 50 years JSC «SKB SPA» has been specializing in development of electrical actuating mechanisms, electronic devices for the systems of manufacturing processes automatic control, boiler-house automatic equipment. Products: - electrical actuating mechanisms (EIM); - pipeline regulating valves (URT) (motor-operated valves); - initiators for electromotor control (EIM); - location signalling mechanisms; - technical process control and adjustment devices; - automatic equipment for boilers and other heating units; - control and automation systems; - EC&I and commutation equipment panel boards 428000, Russia, Chuvash Republic, Cheboksary, Afanasyeva Street 8 Tel.: +7 8352 45-77-14; Fax: +7 8352 45-04-42 E-mail: admin@skbspa.ru, www.skbspa.ru

15. LLC «Elkon» LLC «Elkon» is one of the leading producers of paint materials in Russia. The company specializes in development, production and delivery of organic-silicon enamels and lacquers, silicone emulsions and a full range of silicone-based wood protection products. Competitive advantages of saturants: - environmental safety; - hydrophobic property and water vapour transmission (the surface "breathes"); - biodefense (100%) and durability with no change in protective properties (up to 20 years); - ultra-high protection at the temperature up to +180°С (for bath houses and saunas); - no toxic vapoursand no washing-out. The quality management system of the company is certified according to the international standard ISO 9001:2008 List of provided products: Silicone saturants for wood protection: - «Elkon-Biodefense» (wood preservative), «ElconSi-WT м.А» (water-borne wood preservative); - «Elkon-Lux» (bio and fire protection of fire-resistant type II); - «Elkon-Sauna» (for bath houses and saunas); - «Elkon-Т» (for the structures sidewalls); - «Elkon Si-WT м.Б» (water-borne, bio and fire protection of fire-resistant types I and II ); Silicone hydrophobisators for all construction surfaces: (concrete, foamed concrete, bricks, roof tile, asbestos sheets, paving slabs); Hydrophobisator «Elkon» (for professional moisture protection of surfaces); Hydrophobisator «Elkon Si-ВД» (water-borne, for indoor walls exposed to excess moisture); Waterproof saturant «GKZh-11К» (to increase buildings and constructions lifetime) 429950, Russia, Chuvash Republic, Novocheboksarsk, Kommunalnaya Street 11 Tel./fax: +7 8352 74-98-40, 75-37-27. E-mail: elcon-novo@mail.ru; www.elcon-termo.ru

16. CJSC «Cheboksary electromechanical plant» CJSC «Cheboksary electromechanical plant» is one of the leading producers and suppliers of electrotechnical products, a reliable and long-term partner, meeting the operations quality and timeliness requirements. Advantages: - annual expansion of the produced products range and sales geography; - high technical level of the manufacturing organization; - availability of high-technology facilities and highly-qualified personnel; - product reliability during its lifetime; - flexible pricing policy; - availability of certificates ISO 9001, ISO 14001, OHSAS 18001 Products: - complete transformer Substations6(10)/0,4 kV up to 2500 kVA; - low voltage equipment; - medium voltage equipment(6(10)-35 kV); - relay protection and automatic equipment (RZA) for power facilities up to 500 kV; - Power Factor correction 0,4-6 (10) kV; - block-container based buildings – transportable, heat-insulated industrial; - block-module buildings for household use; - compact units to clean household sewage; - transportable electrotechnical laboratories to test personal protective equipment; - automatic energy control and accounting systems (ASKUE); - processes automatic control systems (ASU) 429525, Russia, Chuvash Republic, Cheboksary region, Ishlei, Promyshlennaya Street 6а Tel.: +7 83540 2-01-58, 2-01-48 , 2-01-68, 2-01-56; Fax: +7 83540 2-01-69 E-mail: zavod@chemz.ru; www.chemz.ru

17. LLC «Ecovata» For more than 10 years LLC «Ecovata»has been producing, selling and installing cellulose heat insulation «Ecovata»of any complexity after the technology of the Finnish company «Makron». «Ecovata» is energy-saving and environmentally friendly heat insulation material at a reasonable price. Advantages of ECOVATA: - environmentally friendly, hypoallergic material; - excellent sound and heat insulation properties; - seamless winterization of structures of any form; - operating speed increase by several times; - optimal price-quality ratio (significant reduce of the construction costs). ECOVATA application: - winterization of floor structures, attic floors and mansard roofs; - winterization of the buildings walls of any type from log constructions to metal sheds; - repair and reconstruction of the buildings in operation without the structure disassembly . OJSC «Ecocotton» is an official distributor of «X-Floc» (Germany), the leading European producer of blow moulding machines. The company specializes in delivery of blow moulding machines ЕМ 100, Minifant M99 and Zellofant M95, provides technical maintenance and practical training of the future operators. The units are always available in the warehouse, also there is a wide choice of accessories: rotating nozzle, heads for wet spraying, pumps and etc. 428031, Russia, Chuvash Republic, Kanash, Promogorodnaya Street 30 Tel./fax: +7 8352 57-45-47, 57-22-95 E-mail: eckodom@mail.ru; www.ecovata21.ru

18. LLC «Polymer Trade» Company profile: - design, - development, - production, - customer delivery, - adjustment, - aftersales service, - consultation. Advantages: - high quality and up-to-date orders processing; - customized approach. LLC «Polymer Trade»operating as AMN Tech, is the leading company specializing in design and production of the equipment for mechanical engineering industries and metal-working. Products offered: - hydraulic plate bending machine; - CNC plasma cutter; - powder painting equipment. Russia, Chuvash Republic, Kugesi, Lenina Street, 22 Tel.: +7 8352 38-00-17, +7 83540 2-15-64; Fax: +7 83540 2-10-10 E-mail: 555stalker@mail.ru; www.stalker555.ru

19. Galen, Top Glass and Kemrok develop composite partnership 19 In April 2012 Galen and Top Glass created a joint venture specializing in the production of high-tech composite profiles Cooperation began in 2011 when Galen started manufacturing a new product - the composite lighting poles under the brand name Galen-Topglass, based on Italian partner technology A new enterprise in Belarus was created - High-Tech Profiles, which offered standard composite profiles of world-class quality at an affordable price for Eastern Europe consumers Innovative manufactured products have great potential for use in civil and industrial construction, energy, transport industry and telecommunications 19

20. Special Economic Zone “Sunny Valley” Main goal is creation of high-tech area with extensive production and scientific-technical infrastructure to accommodate the modern and innovative productions. Residents: «Hevel» Ltd. S = 300 ha. «Renova Orgsyntez» «Vita development» Ltd. «Elkon» Ltd. «Sanfarm» «Gradient-Plus» Ltd. «Stroymash» Ltd. 20

21. Support of investors in the Chuvash Republic Non-financial support of investors Financial support of investors • Assistance in business infrastructurecreation • Renderingmethodical, organizationalsupport during execution of licensing and design documentation • Rendering marketing services (market research, pricing analysis, potential buyers, etc.) • Rendering consultation and information services - for adaptation of projects to the Russian legislation and supervisory authorities requirements - for choosing production areas - for choosing plot of land and execution of documentation under it - for choosing construction firm Company profit tax 13,5% Company property tax 50% tax benefit Company property tax tax exemption (object of lease) Taxes for republican tax exemption budget (extraction and processing of natural resources) Transport tax tax exemption 21

22. Projects implemented with participation offoreign investors PROJECTELECTROTECHNIKA Acrylic and hydromassage baths production Roca Group (Spain) Transformers production plant Production ofdry transformers (Russia - Italy) Wholesale center Metro Cash & Carry Equipment and systems for power industry Plant for sauces and ketchups production (Germany) Brewing company InBev 22

23. INVESTMENT PROJECTSFOR REALIZATIONIN THECHUVASH REPUBLIC

24. Roadside complex on the federal highwayМ-7 Design project Complex structure: • Filling station500 fillings per day • Car wash centre :2 posts - freight transport 2 posts- motor car transport • Technical maintenance center: 2 posts - freight transport 2 posts- motor car transport • Public catering centers 60 seats • Tying products shops 150 m2 • Motel20 rooms • Camping13 houses Project cost 10 mln. EUR (13,4mln. USD) Investment raised 7,5 mln. EUR (10 mln. USD) Net Present Value (NPV) 37,5 mln. EUR (50 mln. USD) Internal rate of return (IRR) 68,5% Project payback period 1,5 year Form of cooperation Business partnership 24

25. Advantages offertilizers -soil modificators Peat processing and production of soil modificator for agriculture Traditional method AridGrow method AridGrow method reduces need in watering by 50-70% Project cost32.25 mln. EUR (43mln. USD) Attractedinvestment 24 mln. EUR (29.8mln. USD) Number of new jobs 154 Main indicators of theproject performanceevaluation (2012-2018): Net Present Value of the project (NPV) 14,9 mln. EUR (19,9mln. USD) Pay-Back Period of the project (РВР) 5,5 years Internal rate of return of the project (IRR)54,8% Profitability of sales under the project36,71 % Net profitability under the project27,34% • In short terms create self-renewable sustainablefertilesoil system • Reduce pollution degree and soil salinity • Reduce irrigation water consumption by 3-4 times • Completelyreplacesynthetic mineral fertilizers • Minimize soil revegatation costs when preparing planting area (with 20-40 USD/m2 up to 1-2 USD/m2) • Increase survival rate of plants transplanted • Increasecropcapacityby 30% 25

26. Recreation area on the shore of the Volga river Recreation centers (more than 20): Distance to Cheboksary min. 25 km Rent payment for house min.23USD per day Services: meals Leisure: boats, fishing, barbecue, sports grounds Infrastructure facilities: Iliinka settlement Iliinski quay (the Volga river) Bus stop (5 minutes) Road from the recreation centre to highway has asphalt pavement Distance to the nearest cities: Cheboksary26 km Kazan 150 km Nizhny Novgorod 180 km Health resort complexes (more than 20): The distance to Cheboksary10-25 km Taxi expenses 10-14 USD Cost of accommodation29-220 USD per day Services: 3-5 meals daily, medical treatment, deluxe rooms Leisure: horse riding, swimming-pools, vapour baths 26

27. Services offered Year-round services • Health and recreation services • Place for holding congresses;scientific, educational orsports events;festivals • Organization of tours (Kazan, Nizhni Novgorod, Cheboksary, The RaifaMonastery, local history museums, architectural monuments, ethnographic settlements, archaeological relics, etc.) Seasonal services • Beach leisure • Alpine skiing track • Training sport centre (skiing, sport orienteering, etc.) • Tours by water with stops in picturesque places equipped for rest • Picking of mushrooms, berries,fishing 27

28. CHUVASH REPUBLIC IS YOUR RELIABLE PARTNER Ministry of Economic Development, Industry and Trade Of the Chuvash Republic Phone: +7 (8352) 64-20-40, Fax: +7 (8352) 64-20-40, add. 2302 E-mail: economy@cap.ru