1. THE CITY OF MOSCOW AND NEW POSSIBILITIES FOR PRODUCTION LOCALIZATION ON MARCH, 19TH, 2015

2. MOSCOW – AN ATTRACTIVE PLATFORM FOR LOCATION OF HI-TECH PRODUCTION Large market for sales: 15 million people within the metropolitan area limits Many years of industrial traditions Largest scientific and university center in Russia Centre of hi-tech industries 7 th among the European cities in terms of investment attractiveness* Developed infrastructure for employees (including schools, kindergartens, polyclinics) 5 th among 20 megalopolises of the world in terms of the number of projects involving foreign investments 15 th place among all cities of the world in terms of gross regional product (USD 321 bln) 59 % of all direct foreign investments in Russia* Largest transportation hub in Eastern Europe Extensive network of technology parks, technopolises and industrial parks with the total area of 155 hectares Industrial areas with the total area over 77 km2 Tax concessions and subsidies for investors *According to Ernst&Young research

3. MOSCOW – AN ATTRACTIVE PLATFORM FOR LOCATION OF HI-TECH PRODUCTION Area: 2,511 sq. km Budget: $51 billion (2015) Export: $215.4 billion* Import: $118 billion* Moscow combines advantages of the largest megacities of the world with lower operational costs (rent, labor power, communications), moreover, the support of the Government of Moscow based on the "one contact" principle makes it possible to mitigate all of the most significant business risks * According to the data of the Federal Customs Service for the year 2014 Facts and figures:

4. PRIORITY DEVELOPMENT FIELDS The Government of Moscow has identified a number of priority industries to be developed in the territory of the city Priority industries Pharmaceutical industry Production of medical items Aviation industry Automobile industry Information technologies Radio-electronic industry Biochemistry Production of car components Production of construction materials and equipment Food industry (raw materials and equipment)

5. GROWTH POINTS – INDUSTRIAL AREAS

6. SPECIAL-PURPOSE TERRITORIES Slava Technology Park TPS Moscow Mosgormash Technology Park VNIIMETMASH Strogino Technology Park Special-purpose small business territory - Zelenograd Special economic zone Zelenograd Sapfir Technology Park Vizbas Technology Park Kalibr Technology Park The city maintains a comprehensive system of support of innovative companies: special platforms offering residents access to the infrastructure, tax concessions, information and consulting support. TehnoSpark Technology Park

7. MOSCOW RAILWAY SYSTEM Radial direction Km 240 Circle line 54 Railway crossings 81 Km Railway overpasses 10 Junctions 74

8. TAX CONCESSIONS AND SUBSIDIES Reduced rate of income tax – 13.5 % for 10 years Zero rate property tax– for a period of 10 years Reduced lease rates Provision of subsidies Provision of grants, scholarships and bonuses Product demand promotion Assistance in product promotion Reduced rate of income tax – 13.5 % for 10 years Zero rate property tax– for a period of 10 years Reduced lease rates Provision of subsidies Provision of grants, scholarships and bonuses Product demand promotion Assistance in product promotion Reduced rate of land tax – 0.01 % of cadastral value for 10 years (for technopolises and technology parks) 0.03 % of cadastral value for 10 years (for industrial parks) Zero rate property tax– for a period of 10 years (for technopolises and technology parks) Reduced rate of property tax – 1.1 % for 10 years (for industrial parks) Reduced lease rates Provision of subsidies for establishment and development of property complexes including infrastructure Reduced rate of land tax – 0.01 % of cadastral value for 10 years (for technopolises and technology parks) 0.03 % of cadastral value for 10 years (for industrial parks) Zero rate property tax– for a period of 10 years (for technopolises and technology parks) Reduced rate of property tax – 1.1 % for 10 years (for industrial parks) Reduced lease rates Provision of subsidies for establishment and development of property complexes including infrastructure To residents of special- purpose territories To management companies of special-purpose territories

9. TAX CONCESSIONS FOR RESIDENTS AND INVESTORS OF SPECIAL ECONOMIC ZONE ZELENOGRAD Duty-free zone regime Income tax Unified social tax (ESN) Personal income tax (NDFL) Import customs duties - 0 % VAT on imported goods - 0 % Simplified system of transport registration, own customs post 13.5 % until 2016 14 % until 2017 13 % Property tax 0 % for 10 years Transport tax 0 % for 5 years Land tax 0 % for 5 years Reduced-rate land lease around $14,000 per 1 hectare a year Purchase of land at reduced rates around $700,000 per 1 hectare Cost of access to utility and transportation lines $0 Period of existence of the special economic zone until 2054 Reduced-rate land lease around $14,000 per 1 hectare a year Purchase of land at reduced rates around $700,000 per 1 hectare Cost of access to utility and transportation lines $0 Period of existence of the special economic zone until 2054 According to estimations of Russian and international companies, the benefits provided to residents of the special economic zone make it possible to save up to 30 % of capital investments and up to 20 % of operational expenses

10. ADDITIONAL GUARANTEES FOR INVESTORS A draft law providing for additional guarantees to those investors that implement industrial or hi-tech projects in the territory of Moscow is being finalized. Nationalization and seizure of property (Art. 235 and 242 of the Civil Code of the Russian Federation) Termination of rights to land plots, buildings, structures and other real estate as a result of actions of Moscow authorities Unfavorable changes in the laws of Moscow (increase in rates of regional taxes, increase in land lease rates, prohibitions and restriction on import and use of equipment, migratory restrictions) Illegal actions or omissions of Moscow public officials (delay in or refusal to issue a land plot development plan, refusal to grant land plots) The proposed law ensures protection of owners’ rights in the following cases:  The decision to provide guarantees is taken by the government of Moscow on a case-to-case basis  Guarantees are provided for a period of 7 to 10 years  Eligibility criteria for receipt of guarantees are determined by Moscow Governmental Order

11. THANK YOU! Department of Science, Industrial Policy and Entrepreneurship 22 Voznesensky per., Moscow, 125009 Tel.: +7(495) 957-05-10 Fax: +7(495) 957-05-20 E-mail: dnpp@mos.rudnpp@mos.ru Web site: www.dnpp.mos.ru