“Kvarts” Joint Stock Company “UZQURILISHMATERIALLARI” JSC Company passport

History of creation, location, information about owners, production and available services Joint stock company “Kvarts" was created in The main activity of the company is the production of glass products: flat and tempered glass, glass bottles and jars. Delivery services of the products to consumers will be set in a contract. Shareholders of the company are: State assets Management center under State committee of the Republic of Uzbekistan on privatization, demonopolization and competition support – % (State shares) and 43 individuals %

Manufacturing capacity, using technology Jars for canning are produced in glass forming machines ПВМ-12А and in 8 sectional machines IS-8 designed by German company “EMHART GLASS”. Manufacturing capacity of jars – 269 mln. pieces per year according to conventional 0.5 l calculation. Glass bottle production is carried out on glass forming machines ВВ7 and IS-8. Manufacturing capacity of bottles – 110 mln. pieces per year according to conventional 0.5 l calculation Polished flat glass is produced by equipment of italian firm “TECHINT”. Manufacturing capacity is 10 mln. square meters according to conventional 2 mm calculation

Infrastructure JSC “Kvarts” has following infrastructure: - Administrative and production buildings; - railways, roads and local railways; - Gas and power supply; - Water supply and sewerage.

Raw material sources of JSC “Kvarts” Dolomite Ferghana reg ,3 tons/year Necessary raw materials for glass production Limestone Andijan reg. 6042,38 tons/year Quartz sand imported from Tajikistan ,7 tons/year Soda ash of Kungrad soda plant, Karakalpakistan, 31959,6 tons/year Sodium sulfate imported from China 859,15 tons/year Selenium Almalyk mining plant, Tashkent reg. 2,623 tons/year Glass cullet Uses own waste, also purchases from domestic market 20059,8 tons/year Cobalt oxide China 0,2415 tons/year Sodium nitrate “ Ferghana Azot” plant, Ferghana reg tons/year

Main characteristics of the products Flat polished glass is produced in thickness from 2 mm to 8 mm. The manufacturing glass is used in window frame glazing, making stained glasses, furniture and tempered glass production Glass containers (bottles and jars) are used for canning food and in the production of alcoholic beverages; Glass jars are produced in nominal capacity from 250 cm3 to 3000 cm3; Glass bottles are made in various geometrical configurations with capacity ranging from 200 cm3 to 1750 cm3.

Distinctive signs. Possibilities of modernization. One of the main activities of the population, living in the republics of Central Asia, is to cultivate fruits and vagetables, which, in turn, can be preserved (temporarily closed-down). Main advantage to a customer is in close collaboration and flexible approach to satisfaction of a consumer by providing wide choice of high-quality products. Nowadays, in order to increase the output and the competitiveness, and to reduce expenses, there arose the necessity of purchasing new and modern technological equipments: 1. 4 sectional two gob machine for production of glass containers 2. Molding complex for forming cast iron – 71 thousand USD 3. Milling machine of the firm “HAAS” – 285 thousand USD 4. Rotary drier and jaw crusher for processing raw materials – 67.4 thousand USD 5. Centrifugal compressor, equipped with a soft start – 288 thousand USD 6. Magnetic separators for raw material enrichment – 70.5 thousand USD 7. Batch mixers – thousand USD 8. Packing machines for glass container production -25 thousand USD 9. Machine for silkscreen decoration in tempered glass production 10. Shot blasting machine for form restoration – 57 thousand USD 11. Automation of glass melting process and glass container production in Hollow glass production zone 3 (МВП уч №3) thousand USD Procurement of above listed equipment will let the company increase the output to a new high level, improve the quality, extend the sale markets for the company.

Availability of certificates All types of products have conformance certificate. The quality management system has been adopted and obtained International certificate ISO Accredited testing department is operating.

Brief analysis of glass production market, market share and competitors The products of the company are generally sold in inland market. Main customers of the glass containers are alcoholic beverage producers and canneries. Flat glass is mainly used in the constructing buildings, also used for further processing. Tempered glass is in demand in the automobile industry and in consumer goods production. Nowadays JSC “KVARTS” is the only enterprise in the country that manufactures flat glass – both transparent and colored in various tinges and colors. Flat glass is additionally imported to the country from Russia, China and Kyrgyz Republic. “Kvartы” JSC is a monopolist on building glass production in home market and covers the demands of more than 60% in Uzbekistan, on glass jars it makes up more than 95% and on glass bottle – nearly 50%. Competitors: There are a number of plants specializing in the production of glass containers in Uzbekistan: -JSC “Kampali”, in Tashkent region, manufactures jars and bottles in 5 machines; -JSC “Asl oyna”, in Tashkent region, manufactures bottles in 2-section machines; -JSC “Bekabad metkombinat”, in Tashkent region, manufactures jars in 2 machines. At present, the production is stopped for reconstruction; -JSC “Karakalpaksteklotara” manufactures bottles in 2 machines. In Bekabad city, Tashkent region, it is planned to build a factory specialized on float glass production.

Forecast of financial models млн.сум Index The net proceeds taking into account stock prices , , , , ,8 Production cost99 291, , , , ,6 Gross financial result45 150, , , , ,1 Expenses of the period, including:28 453, , , , ,7 Sales expenses4 749, ,3 Administrative expenses5 937,96 355,66 806,87 294,17 820,4 Other operational incomes and expenses17 766, , , , ,0 Other incomes from main activities803,7203,9209,0208,5182,4 Financial result from core operation17 499, , ,81 026, ,8 Income and expenses on financial activity1963,52138,62327,82532,12752,7 Income in the form of interest2 189,22 364,32 553,52 757,82 978,4 Expenses on financial activity225,7 Total financial result before taxes19 463, , ,63 558, ,5 Costs included in the taxable base135,2 Taxable income19 598, , ,83 693, ,7 Profit tax1 567, ,82 033,3295,52 302,4 Other taxes1 567,92 251,82 033,3295,52 302,4 Net profit16 462, , ,23 102, ,0 Level of efficiency, % Note: Due to cold repair in the workshop of float glass production in 2018, the figure of net profit is reduced

Trend of main production indexes in JSC “Kvarts” billion.sums

Human resources and staff category 77% 5% 8% 5% Total number of staff in the company is 2062 ind., including: workers , managers – 110, technical staff – 110, specialists – 113 and service personnel – 160 individuals

Stocks part. Volume of investment, necessary for modernization. Organization of new types of products 75 % stock from statutory fund of the company will be sold to a foreign investor, stock cost is on the stage of estimation. For further improvement and development of the company to activity of the enterprise in current three years is required 9,2 million US dollars of investment. By studying incoming orders, contracts and the results of sales of the glass materials it is periodically carried on manufacturing new types of products

Enterprise modernization plan for years №ProjectsExpected results Execution time 1 Type Epsilon 3/Epsilon 3 XL energy dispersive spectrometry Improves the quality and accuracy of chemical analysis of the product Milling machine of «НААS» companyQuality processing of molds Silkscreen printing equipment for tempered glassRaise market coverage Magnetic separators for the enrichment of raw materials Improves quality of the raw materials and products Batch mixers Raises energy efficiency by approximately 2-3% (10000 kW per year) Packing machines for glass containersReduces breakdown of the products2016 7Device that measures the volume of the glass mass Raises the lifetime of furnace bricks and product quality Fire-resistant bricks for major overhaul of glass furnace (GCW №2 and №3) Repairing the furnace in the period specified Mold repair equipment Improves the quality and lifetime of molds 2017

Enterprise modernization plan for years №ProjectsExpected results Execution time 10 4 section glass molding machine for the production of glass containers Improves product quality, increases production capacity by 2 times Change type KDU-700 kg batch and cullet batchers Improves the energy efficiency by approximately 10 % (7710kW per year) Aqilent 7820 A chromatograph Improves the quality of analysis of the chemical composition of the mixture of nitrogen and hydrogen gases Automatization of glass production and glass pulping processes ( GCW №1 and №3) Leads to a reduction in natural gas consumption by up to 12%. ( m3 per year) REAM COMPARATOR ITEM:LQ-20 type equipment determining the intensity of the glass Facilitates product quality control Cullet drying and cleaning equipment Improves quality of the raw materials Roller of the burning furnace networkImproves the quality of the product2018

Contacts: Akmal Azimovich Pulatov Head of JSC «Kvarts» Tel.: 0-(373) Fax: 0-(373) Sohib Sobirovich Tursunboyev Director of production JSC “Kvarts” Tel.: 0-(373) Fax: 0-(373)