2013 Investment project on plywood production in Antropovo municipal district of Kostroma region

2 Summary Project’s target – creation of the enterprise for production of high-quality plywood products Competitors – OJSC «Manturovo Plywood Factory», OJSC «Fanplit» (Group of companies «Sveza») Annual productive capacity of the plant – 120 thousand tons of plywood products Products: -white plywood; -laminated plywood Potential investor – private investor Investment volume – 3 billion roubles (including VAT): acquisition of main equipment – 1 383,0 million roubles installation of equipment – 72 million roubles additional equipment options – 318,0 million roubles construction costs, construction and installation work – 1 055,0 million roubles installation of boiler equipment – 149 million roubles other costs – 23 million roubles Financial sources: - 20 % of own funds; - 80 % of credit resources.

3 Investment site for project’s implementation: Investment site Location of the land plot – Antropovo municipal district, Antropovo village Area of the land plot – 30 ha Land category – settlement lands Permitted use – for industrial use Distance to Antropovo village – 2,5 km There is a railway siding (repair is required)

4 Raw materials Calculated cutting area according to Antropovo forestry and nearby forest areas №Name of forest areas Unused calculated cutting area totalneedles 1Antropovo forestry149,658,5 2Galich forestry339,2129,3 3Kadyj forestry101,936,1 4Neya forestry279,6119,9 5Ostrovskoe forestry319,883,6 6Parfenievo forestry234,783,0 7Chyukhloma forestry359,1137,4 Total1783,8647,9

5 State support provided by Kostroma Region Administration Inclusion of the investment project in the Register of investment projects of Kostroma region providing the most-favoured-nation treatment Tax benefits payable to regional budget: reduction of profit tax rate by 4,5 percent exemption from property tax Human resources: project involves creation of more than 300 new working places Assistance in infrastructure creation Organizational support Assistance in inclusion of the project in the list of priority investment projects in the forestry sphere Efficiency indicators of the project

6 Economic efficiency of the project (during planning period) IndicatorWithout preferencesWith preferences Sales proceeds (excluding VAT), thousand roubles Paid for suppliers and employees, thousand roubles EBITDA, thousand roubles Depreciation, thousand roubles Paid taxes, thousand roubles Interests payable on credit, thousand roubles Net profit, thousand roubles Net present value (NPV), thousand roubles * Planning period is 10 years

7 Budgetary efficiency of the project (during planning period) * Planning period is 10 years Indicator Without preferences, thousand roubles With preferences, thousand roubles Federal budget, including Value-added tax (VAT) Profit tax Regional budget, including Profit tax Personal income tax (PIT) Property tax Municipal budget, including Personal income tax (PIT) Land tax Social payments Total