1. Kaluga region Investment profile 2010

2. Kaluga region Content Kaluga Region Profile Kaluga Region Development Strategy Advantages for investors

3. Kaluga region ~20 mln. residents in 150 km vicinity from Kaluga Region Russia China Mongolia Kazakhstan EU Advantageous geographic location Population density, residents per km² < <

4. Kaluga region Kaluga region: key facts Key facts Population1.001M Main citiesKaluga–341K res. Obninsk–105K res. Area30K km² ClimateContinental temperate climate –Avg. temp. in Jul: +18 –Avg. temp. in Jan: -9 LocationPart of Central Federal District 70 km from Moscow to Kaluga region border Natural Resources No substantial natural resources Significant growth of wealth since 2005 Manufacturing and transport – main parts of GRP Structure of Gross Regional Product, 2009 Monthly average salary, $ Share of population below poverty line, %

5. Kaluga region Foreign investments Foreign investments volume in the Kaluga region, bln. $

6. Kaluga region Industrial parks Industrial parks key facts Industrial parks location Total area for industrial construction – 2 615 hectares -Allocated area as of June 2009 – 1200 hectares Planned amount of new jobs: 26 000 Planned amount of direct investments till 2012 – 6,5 bln $ Total Kaluga Region spending for industrial parks development – 330 mln $ Infrastructure: -natural gas -electric power -water supply -sewage capacity 6 mln. tons of freight traffic annually Kaluga Obninsk Lemkon Private Industrial Park Rosva Kaluga-Yug Grabtsevo Vorsino Detchino A-park

7. Kaluga region 7 They ve already chosen us!

8. Kaluga region Industrial park InvestmentsPeriod Number of industrial parks successful examples Nestle PurinaPetCare Vorsino M 25 $ 2005- 2009 Pet feed Samsung Electronics Vorsino M 237 $ 2009- 2010 Household appliances Volkswagen Grabtsevo M 750 2007- 2011 Automobile production Magna Exterior & Interior Management Grabtsevo M 25 2009- 2011 Automobile components production Volvo Truck Kaluga- Yug M 92 2007- 2009 Automobile production PSA PeugeotCitroen & Mitsubishi Rosva M 470 2009- 2011 Automobile production Company Manufacturing

9. Kaluga region Federal Government highly appreciates Kaluga Regions economy success Kaluga Region is a very good example how to set up new industrial centers, actively implement state-of-the-art technologies.... from scratch There is no doubt that Kaluga is a very good example of collaboration with investors Kaluga Region government make everything possible for investors convenience Vladimir Putin, Prime Minister of Russian Federation (2009)

10. Kaluga region Content Kaluga Region Profile Kaluga Region Development Strategy Advantages for investors

11. Kaluga region The basis of the economic policy of the region: clusters forming Auto cluster Bio-technologies and pharmaceutics cluster Nuclear medicine cluster Creation of the nuclear medicine center in Obninsk.

12. Kaluga region The Stages of auto-clusters development in Kaluga Region Distribution R&D Components OEM Become 2 automobile manufacturing region in Russia till 2015 Become 1 auto components cluster in Russia Develop network of Research & Development centers with automotive focus Set leading in Central Russia training center for professionals with automotive focus 1 2 3 4 Become major auto components logistics center in Russia 5

13. Kaluga region Content Kaluga Region Profile Kaluga Region Development Strategy Advantages for investors

14. Kaluga region There are 5 reasons why to invest in Kaluga Region Good location and transport infrastructure Advanced labor market Proactive philosophy for investors support Active investments support Policy Great team of professionals Why leading companies invest in Kaluga Region? What gives us confidence in our strategy feasibility? 1 2 3 4 5

15. Kaluga region Highways c Container terminals (both active and under construction) Vorsino Railway station Obninsk Railway station Vorotynsk Railway station Perspektivnaya Railway station Kaluga Region Moscow Region Good location and transport infrastructure Well developed highway network -Kiev highway (connection with Ukraine) -Kaluga highway (connection with Belarus) -Big Concrete Ring (Moscow region) Well developed railway network -Big Moscow Ring Railway Road -Railway road between Moscow and Kiev Network of container terminals under active development Proximity to Moscow region Good connection with Central Federal Area Regions Concentrated production facilities in industrial park areas Railway lines Kaluga region border Area for container terminal construction Main logistics centers Logistic centers Coverage area Moscow economic region

16. Kaluga region Advanced labor market Proximity of Moscow region Developed network of educational institutions ~17 000 000 residents live in adjacent Moscow Region In 28 institutes of higher education -39 000 students In 26 specialized secondary education centers -14 000 students Training center for professionals with automotive focus -~2 000 professionals get training annually Population of adjacent to Kaluga regions

17. Kaluga region Investors support system No long procedures Administrative support No bureaucracy Solid legislative basis No restrictions Freedom in choosing –No constrains during contractors selection process No isolation United project team No infrastructure risks Availability of all necessary infrastructure –all necessary infrastructure connected to the plot No charges No hidden and unspecified charges No middleman my cell phone: +7 915 898 20 45

18. Kaluga region Active investments support policy Tax preferences 0.1-0.31 1 0.3-0.52 0.5 -1 3 2 1-23 >24 Scale of investments, bln. RUR 0% property tax period, years (2,2% w/o preferences) 15.5% profit tax period, years (20% w/o preferences) Resources and approach Industrial parks – clear product for investors Step ahead approach in engineering and logistics infrastructure development Support through regional development organizations: Kaluga Region Development Corporation and Agency of Regional Development Federal resource: Investment Fund, Vneshekonombank «А-Park» - new possibilities for small and medium-sized enterprises of the automotive industry and logistic companies

19. Kaluga region Contact information Government Authorities of the Kaluga Region Administration of the Governor of the Kaluga Region Tel: +7 4842 778431, Fax: +7 4842 531309 Web: http://www.admobl.kaluga.ruhttp://www.admobl.kaluga.ru Kaluga Regional Government Office (Moscow) (Official connections) under the Government of Russian Federation Tel/fax: +7 499 2416636 E-mail: predstav@adm.kaluga.ru Regional Development Agency for Kaluga Region (Investment projects) under the Ministry for Economic Development Tel: +7 4842 762700, Fax: +7 4842 762701 ext. 18 E-mail: rda@kaluga.ru Web: http://arrko.ru/en/http://arrko.ru/en/ Kaluga Region Development Corporation (Industrial parks) under the Ministry for Economic Development Tel/fax: +7 4842 790410 E-mail: kalugacorp@gmail.com Web: http://invest.kaluga.ru/en/http://invest.kaluga.ru/en/