1. 2012 Investment project of integrated house- building factory construction in Chyukhloma municipal district

2. Current project involves integrated house-building factory creation in Chyukhloma municipal district. Enterprise’s project capacity is 180 000 m 2,it is achieved by working in two shifts by 8 hours each one 250 days a year. Main type of products is complete sets of wooden houses made by frame-panel-timber squared technologies. Main application of complete sets is dwelling-houses construction. Project’s value is 909 616 thousand roubles (excluding VAT). Financial sources: - 30 % of own funds; - 70 % of borrowed funds. Payback period – 6 years Realization period – 8 years Annual consumption of raw materials - 175 000 m 3. 2 Project description

3. Production plan 3 №Product Measur ement 1 st year 2 nd year 3 rd year 4 th year 5 th year 6 th year 7 th year 8 th year 1House-complete setsm2m2 -30000650007500090000105000115000180000 2 Round timber products m3m3 -46470394353742534410313952938516320 3Sawn materialsm2m2 -54215460084366340145366283428319040 Realization plan Product Measur ement 1 st year 2 nd year 3 rd year 4 th year 5 th year 6 th year 7 th year 8 th year House-complete sets thousa nd RUR 0570000129675014962501795500209475022942503591000 Round timber products thousa nd RUR 09294084390,980089,573637,467185,362883,934924,8 Sawn materials thousa nd RUR 0325290295368,2280313,3257731235148,6220093,7122237 Total thous and RUR 0988230167650918566532126868239708425772283748162 Enterprise leases a land plot for cutting area and independently procures raw materials in order to ensure the interrupted work. Project description

4. Total project value is 909 616 thousand roubles (excluding VAT), including 30% of own funds, 70% of borrowed funds. It is planned to get a credit at 12% per annum for 8 years. For production organization it is necessary to acquire and build fixed assets, such as equipment, vehicles, buildings. All costs for fixed assets acquisition are planned for the first year of planning period. The depreciation is charged on a straight-line method. 4 Investments Indicator thousand RUR Working places organization 2300 Unforeseen expenses 88000 Project works 30000 Finished products warehouse construction 15000 Administrative building construction 5000 Ground construction 50000 Construction of building for the sawmill 27000 Boiler house construction 3000 Construction of workshop for house-building 55998 Aspiration system acquisition 20000 Acquisition of vehicles 30000 Acquisition of internal transport 8000 Acquisition of logging equipment 186319 Acquisition of equipment for the sawmill 98498 Acquisition of drying chambers and boiler equipment 110000 Acquisition of house-building equipment 178001 Acquisition of a land plot (10 ha) 2500 Total909616 Project description

5. 5 Number of personnel №Staff unit Measur ement 1 st year2 nd year3 rd year4 th year5 th year6 th year7 th year8 th year 1Leaders persons 24666666 2 Administrative personnel persons 1240 3 Production personnel persons 59104154 Total persons 275150200 By the fourth year of work, when it is the maximum personnel, average monthly salary will be 27 273,75 roubles. Number of personnel

6. 6 Infrastructure For the organization of production the land plot of 10 ha is required. First year of investment project realization involves construction of industrial objects, in the second year the enterprise will start to produce house-complete sets. Water supply is planned to carry out by new wells, that will be created at the land plot. The need for electricity is 8 000 000 kW*h per year.

7. Social efficiency indicators: 1. New working places – 200 workers: share of production personnel - 77%, share of administrative personnel - 20 %, share of management - 3 %. 2. Average salary – 27 000 roubles. 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%. 7 Economic, social and budgetary efficiency indicators

8. Indicator With privileges, thousand roubles Without privileges, thousand roubles Revenue (excluding VAT)15 370 733,3 Paid for suppliers and employees11 131 236,6 EBITDA4 239 496,7 Depreciation491 396,9 Paid taxes718 264,1763 690,9 Interests on loans873 231,2 Net profit2 156 604,52 111 174,7 NPV793 393,23759 316,82 IRR, % 36,6835,04 Economic efficiency indicators with/without privileges during the whole planning period: 8

9. Budgetary efficiency during the whole planning period: 9 Economic, social and budgetary efficiency indicators Indicator With privileges, thousand roubles Without privileges, thousand roubles Federal budget, including2 820 645,02 819 511,4 VAT 2 766 732,0 Profit tax 53 91352 779,4 Regional budget, including543 013589 573,2 Profit tax 485 217475 014,9 PIT 33 948,5 Property tax 23 847,680 610,1 Municipal budget, including26 549,3 PIT 14 549,3 Land tax 12 000 Social payments 143 286,5 Total 3 533 493,83 578 920,4