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ALACAT May 2012 San Antonio, TX

Heavyweight Air Cargo Market. ALACAT May 2012 San Antonio, TX. International Freight Traffic Growth Trends. International scheduled freight traffic ( total FTKs in billion -- source: IATA). 15. 13. 11. 9. 7. Jan/06. Jan/10. Jan/02. Jan/03. Jan/04. Jan/05. Jan/07. Jan/08.

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ALACAT May 2012 San Antonio, TX

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  1. Heavyweight Air Cargo Market ALACAT May 2012 San Antonio, TX

  2. International Freight Traffic Growth Trends International scheduled freight traffic (total FTKs in billion -- source: IATA) 15 13 11 9 7 • Jan/06 • Jan/10 • Jan/02 • Jan/03 • Jan/04 • Jan/05 • Jan/07 • Jan/08 • Jan/09 • Jan/11 • Jan/12 ACTUAL SEASONALLY ADJUSTED 2

  3. Trade Drives Air Cargo World trade in goods and air traffic Source: Netherlands CPB and IATA 14 170 International traffic (left scale billion FTK) 13 160 150 12 140 World goods trade volumes (right scale index CY 2000 = 100) 11 130 10 120 110 2007 2008 2009 2010 2011 2012 3

  4. Demand for Air Cargo Transport Is Driven by the Unit Value of the Product There is a 94% correlation between the unit value of a product and the share carried by air 4

  5. Economic Growth Drives International Trade • GDP growth drives supply-chain demand for intermediate manufactured goods • GDP growth also drives consumer demand for final goods • Uneven regional economic growth, and unique economic development patterns result in imbalanced directional trade flows 5

  6. Economic Cycle-Phase Shapes Nature of Air Cargo Demand • Cyclical recovery from recession drives fast inventory re-stocking, leading to temporary spike in air cargo demand • Air cargo during cyclical recovery is heavily driven by supply-chain related goods shipped to manufacturers • After recovery inventory management returns to normal pattern, and air cargo tends to be driven mainly by consumer goods shipped to distributors 6

  7. Product Drivers of Air Cargo Demand • High value-added products tend to ship by air • As products age in their life-cycle, their relative value-added decreases and transport shifts to sea mode • Perishables and time-sensitive goods tend to use air • New competition from fast-sea shipping mode increasingly captures meat, and fruits and vegetables • Outsized cargo can use either air or sea mode • Outsized cargo tend to be supply-chain related goods 7

  8. Inventories-to-Sales Ratio Is a Strong Indicator of Demand for Air Cargo Lift Business inventories to sales ratio and FTKs Source: US Census Bureau and IATA 17 Inventories-to-sales ratio (left scale) 16 1.5 15 14 1.3 13 Billion FTK (right scale) 12 1.1 11 10 0.9 8

  9. Purchasing Managers Index Points to Air Cargo Downturn Purchasing Managers confidence survey and Air Freight Source: IATA, JP Morgan 50% YoY growth 40% International FTKs (red line) 30% JP Morgan PMI + 2 Months (blue line) 20% 10% 0 -10% -20% -30% -40% 9

  10. Top 10 Air Cargo Market Growth Rates 10

  11. China Accounts for 13.6% of Global GDP and Could Become the Largest by 2016 11

  12. During 1991 – 2011 China’s International Trade Grew 2.5x Faster than GDP by 2016 China is projected to generate $7.0 trillion in annual international trade 12

  13. U.S. 747F Air Cargo Operators 13

  14. Projected Future CRAF Air Cargo Spending – Excluding Potential Sequestration Impact 14

  15. African Opportunities • Improving Sub-Sahara regional stability and economic growth • Large scale infrastructure projects to support long-term economic growth • Foreign nations interested in African economic development include: China, India, Brazil, Malaysia, Indonesia, Turkey and South Korea • Significance for VDA potential demand for outsize air cargo shipments to remote areas for power generation; oil and gas, mineral exploration, and other large-scale projects 15

  16. VOLGA-DNEPR’S PROFILE Since its inception in 1990, Volga-Dnepr has been primarily involved in airlifting unique, hi-tech loads and moving general cargo to remote destinations that are not served by scheduled air carriers

  17. COMMON CARGO TYPES FOR AN124-100 AND IL76TD-90 • Energy, Oil & Gas Equipment • Space and Aircraft Equipment • General Relief Cargo • Heavy Industry and Construction

  18. EXECUTIVE SUMMARY Charter+ Volga-Dnepr’ s Latest Service Development • One-Stop Shop: Exclusive Charter+ Partner for your Company • Integration of Ancillary Logistic Services: Trucking, Craning, Packing, Route Analysis, Cargo Surveys, and Handling Supervision • Door to Door Concept • Worldwide Team of Experts (24/7 access) for Technical Support and Advice • Commercial Program for Short or Long Term Projects adjusted to Each Project • Understanding of your Requirements and Goals with Transparent Communication • Proven Track Record of Handling and Transport Expertise for the Aeronautical and Space Industry

  19. STANDARD LOADING PROCESS USING THE EQUIPMENT The Special Loading Equipment Is Installed The Loading Proceeds Using Mobile Cranes And Onboard Winches The Front Door Opens

  20. PROCESS OF DEVELOPING ENGINEERED SOLUTIONS S I M P L E S K E T C H 3 D - M O D E L 2 D - D R A W I N G S

  21. DEVELOPING SPECIALIZED LOADING SCENARIOS C A R G O A C T U A L L O A D I N G C A R G O + S K I D

  22. CONTACT INFORMATION Volga-Dnepr Unique Air Cargo, Inc 9400 Grogan’s Mill Rd. Ste 220, The Woodlands, TX, 77380 Tel. +1 (832) 585 8611 Fax +1 (832) 585 8618 E-mail: sales@volga-dnepr.us Volga-Dnepr Airlines (Head office) 14, Karbysheva St., Ulyanovsk, Russia, 432072 Tel: +7 8422 590107 / 590100 Fax: +7 8422 296521 / 202675 E-mail: sales@volga-dnepr.com

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