1. Furniture shield production in Sharja municipal district of the Kostroma region

2. Project target – construction of woodworking enterprise for deep processing of birch in Sharja municipal district. Annual production capacity will be about 52 500 cub. m, annual production of technical and pulp chips – 105 000 cub. m. Planning period - 10 years. Start of production is scheduled for the first quarter of the 3 rd year, reaching for project capacities – for the 5 th year of project realization. Project value – 161.8 million RUR. Financial sources: - 5 % of own funds; - 95 % of borrowed funds. Project description

3. - favourable investment climate; - advantageous geographical location; - availability of transit transport network; - low level of social conflicts. Location

4. Total potential demand for furniture shield constitutes Russian demand for cabinet furniture. Production of cabinet furniture (wardrobes, sofas, tables, chairs, suits, bedsteads) in Russia is 12,3 million articles. Due to different consumption rates of furniture products total demand for furniture shield in Russia amounts to 3,1 million m 3. Furniture shield market capacity assessment

5. Production capacity is 52,5 cub. m of furniture shield per year Personnel is 300 workers Average salary – from 25 thousand roubles Payback period – 6 years Kostroma region administration is ready to provide the most favoured nation treatment for the investment project in part of exemption from payment of the following taxes payable to the regional budget during the payback period: - exemption from payment of property tax; - reduction of the rate of profit tax from 18% to 13,5%. Brief information about the project Project efficiency indicators 5

6. Indicator With privileges, thousand roubles Without privileges, thousand roubles Revenue (excluding VAT)9808407,6 Paid for suppliers and employees 6089293,1 EBITDA 3719114,5 Depreciation 986700 Paid taxes 380927,9527326,9 Interests on loans 715859,9 Net profit1635626,71489227,7 NPV390 643,58287 317,81 IRR, % 38,7530,75 Project economic efficiency Project efficiency indicators 6

7. Indicator With privileges, thousand roubles Without privileges, thousand roubles Federal budget, including 1835445,21836967,7 VAT 1765513,4 Profit tax 69931,871454,3 Regional budget, including 770773,88930875,38 Profit tax 629386,4643088,9 PIT 71629,88 Property tax 69757,6216156,6 Municipal budget, including 39556,52 PIT 30698,52 Land tax 8858 Social payments 302311,8 Total 2948087,43109711,4 Project budgetary efficiency Project efficiency indicators 7