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1. S ochi World By Korston Group

2. Sochi-World - Scope SOCHI OLYMPIC DEVELOPMENT Sport Complexes Hotel & Convention Entertainment Infrastructure Olympic Village Sochi 2014 Winter Olympic Sochi-World Sport Complexes Hotel & Convention Entertainment Infrastructure Olympic Village Sochi-World Worldwide Tourist Destination

3. Sochi-World - Timeline Sochi World Worldwide Tourist Destination 2010-2013 Planning Sochi 2014 Winter Olympic SOCHI OLYMPIC DEVELOPMENT IOC Compliances General Management Sochi-World Logistics Sustainability Long Term Feasibility Support (Hotels, Resort) General Management

4. Sochi-World Goals – Mission • Create Sochi-World as a world wide Exhibition, Convention and Leisure Tourism Destination • Supporting Sport events beyond 2014 Winter Olympics • Protection asset value • Return on investment

5. Sochi-World Goals - Vision • Became the Leading European Convention Exhibition, Sport and Entertainment Destination: • 10 Top International / European Sport Events per year. • Host National Sport Events and Championships • 35 World Exhibition per year. Total 3 million visitors. • One million Convention delegates per year. • One million Room nights.

6. Sochi-World Goals – SWOT Analysis

7. Sochi-World Goals – SWOT Analysis Duty Free Zone Gaming Zone Single Management Company Integrated Infrastructure Visa Free Zone

8. Sochi-World – Strategy • Integrate infrastructure • Single management company • Duty Free status • Visa Free regime • Gaming zone

9. Strategy – Integrate Infrastructure • Olympic Area • Sport Stadiums, Circus • Resort Area I • Hotels (3*): 2100 rooms, family entertainment (Aqua park, Amusement Park, Shopping) • Resort Area II • Hotels (4*, 5*) 2400 rooms, Convention space (20’000 m2) & Exhibition Center (40’000 m2) , SPA, Shopping, Casinos • Common Infrastructure • Internal transportation system CO2 emission free • Supporting services: laundry, central warehouse, etc • Engineering systems (autonomy): electro-generation, boiler, etc

10. Strategy – Integrate Infrastructure Resort Area II Resort Area I Olympic Area

11. Strategy – Single Management Company • Manages all the facilities and staff • Runs the hotels, convention, exhibition and entertainment • Supports sport events • Commercializes the facilities • Operates (hotel, entertainment, convention) • Rents facilities (shopping, sport) • Marketing (promotes and advertize) • Provides Security and Safety and Regimes • Ensures technical and engineering work

12. Sochi-World Strategy – Duty Free Status • Applies to all Sochi-World territory • Entitles retail selling only (no wholesale) • Has a similar regime as in international airports • Custom controls in the accesses • Possibility of including or excluding the Olympic Area from the free zone

13. Sochi-World Strategy – Visa Free Status • Applies to all Sochi-World territory • Migration check-points at all accesses • Foreign citizens can come without visa direct from Airport transit area by special transfer • Russian and CIS citizens go in and out with internal or external passport • Foreign citizens with visas can come or go according to their visa statuses • Russian Consular officer on duty on the territory • Possibility of including or excluding the Olympic and Resort I Areas from the free zone

14. Strategy – Gaming zone • Gaming zone to be crated in part of Sochi-World territory • Excludes Olympic and Resort I Areas • All gaming operated by Sochi-World Management Company • Compliances with law • 18 y. o. • Possibility of exclude compulsive gamers by court order.

15. Strategy – complex approach

16. Strategy – exploiting opportunities

17. Sochi-World - Management Company proposal • Korston Group is ready to form, finance and support the creation and operation of Sochi-World Management Company

18. Korston Group – Highlights • More than 1000 Rooms under management • More than 20’000 m2 Convention space • 25 Restaurants • 40’000 m2 in Entertainment Center • 100’000 m2 Shopping Centers • 600’000 m2 Under development in Russian Regions • Shareholder of Nizhny Novgorod Trade Fair • Employees: 1’500 (3’500 before July 1st 2009)

19. Korston Group – Management Team

20. Korston Group – Key Factors • Russian Company • Transparency • Required experience • In all the Areas • International • Comparable sizes of operations • Readiness • To deploy required manager team (7 days) • To supply 300 million Rubles to the Management company (5 days)

21. Schedule of Interaction – Three Stages Sochi World Worldwide Tourist Destination 2010-2013 Planning Sochi 2014 Winter Olympic SOCHI 2014 OLYMPIC COMITEE IOC Compliances General Management Sochi-World Management Company Logistics Sustainability Long Term Feasibility Support (Hotels, Catering) General Management

22. Schedule of Interaction – Stage II (Games 2014) Winter Games Sochi 2014 Russian Government Asset Owners Sport Authorities SOCHI 2014 OLYMPIC COMITEE 2014 Winter Olympics Game Administration Korston Group Accreditations Games Marketing Ticket Sales Sochi-World Management Company Media Center Olympic Village Management Hotel Management Transportation Logistics Infrastructure Management Security & Safety F&B Catering

23. Schedule of Interaction – Stage I (till 2013) 2010-2013 Planning Russian Government Asset Owners Coordination Board Sport Authorities Korston Group SOCHI 2014 OLYMPIC COMITEE Sochi-World Management Company Sustainability IOC Compliances Sochi-World Brand Concept Logistics 2014 Winter Olympics Requirements Long Term Feasibility General Planner Olympic Objects Planning Hotels & Other Facilities Planners

24. Sochi-World - Organization Structure Sochi World Worldwide Tourist Destination Russian Government Korston Group Asset Owners Asset Owners Supervisory Board Sport Authorities Sochi-World Management Company Sochi-World Hotel & Conventions Entertainment & Shopping Infrastructure & Security Sport Complexes

25. Next Steps • Government act • Management company to be created • Management agreement • Korston immediately assisting with planning and project management