Municipality of Zhelino Republic of Macedonia 1 King’s Arms Yard, London EC2R 7AF T: +44 20 7601 1850 www.albion-ventures.co.uk

Quick Facts Separate local government unit founded in October 1996 2 Quick Facts Separate local government unit founded in October 1996  Located in north-western Macedonia in the Polog Statistical Region Average size rural municipality. It stretches over an area of 201km2 (18 villages) with territory on both sides of the river Vardar Total 24,390 inhabitants (99% Albanians and 1% Macedonians) * Average annual temperature of 12.4 °C. Summers are long, dry and hot, and winters are cold with numerous foggy days European route E 65 passes through the municipality Two official languages -Macedonian and Albanian with English widely spoken 3 km distance from Technological Industrial Development Zone (TIDZ); Area Size: 95 ha * As per 2002 census; (estimates for 2016 : 30, 000 inhabitants)

Why Invest in the Municipality of Zhelino 3 Why Invest in the Municipality of Zhelino Competitive Location Excellent Infrastructure Competitive Workforce Investment Incentives Investor friendly environment FTAs with EU, EFTA, CEFTA countries; Turkey and the Ukraine Perfect entry point to Europe Access to over 650m customers Unbeatable tax benefits Lowest operating costs in Europe 3 km distance from Tax Free Economic Zone (TIDZ) All of Europe in 1 to 3 days via truck or rail  Short distance to two brand new international airports 1 to 3 hours to international seaports No trade barriers with Europe, Ukraine and Turkey Near to Middle East and North Africa

Location and Transport Infrastructure 4 Location and Transport Infrastructure • Two Pan-European corridors: –East-West Corridor 8 –North-South Corridor 10 –E65 passes through Zhelino •Road network: 9,205 km •Railway network: 900 km •Two international airports*: –Skopje : 30 km –Ohrid : 160 km •International ports*: –Thessalonica (Greece): 280 km –Durres (Albania): 270 km Patrick Reeve Managing Partner Will Fraser-Allen Deputy Managing Partner Adam Chirkowski Investment Manager Dr. Andrew Elder Partner Emil Gigov Partner David Gudgin Partner Adam Chirkowski Investment Manager Dr. Andrew Elder Partner Emil Gigov Partner David Gudgin Partner *Distance from Zhelino Source: investinmacedonia.com Robert Henderson Investment Manager Dr. Christoph Ruedig Partner Henry Stanford Partner Robert Whitby-Smith Partner Marco Yu Investment Director Ed Lascelles Partner Dr. Christoph Ruedig Partner Henry Stanford Partner Robert Whitby-Smith Partner Marco Yu Investment Director

Doing Business - Macedonia 5 Doing Business - Macedonia BEST FOR STARTING A BUSINESS IN THE REGION Based on the World Bank’s Doing Business Report 2017

Economic Indicators 2013: 2.9%; 2014: - 3.5%; 2015:-3.7% Q3 2016: 2.4% Low inflation: 2013: 2.8%; 2014: - 0.3%; 2015:-0.3% Q3 2016: 0.2% Macedonian Denar pegged to € for the last 20 years (€ 1 =MKD 61.5) € 537 per month ; € 379 per month in manufacturing Standard & Poor's: BB- ; Fitch : BB Q3 2016 : 42% of GDP GDP Growth Inflation Currency Average Gross Salary 2017 Credit Ratings 2017 State Debts , September 2016 * Source: National Bank of the Republic of Macedonia

Unbeatable fiscal benefits and utility costs 7 Unbeatable fiscal benefits and utility costs Utility Costs Utility prices for industry are among the lowest in Europe: Electricity € 7.5/100kWh (average sales price for all users) Natural Gas € 0.47/Nm3 Water € 1.07/m3 * Source: tradeeconomics.com

Sustainable Work Force supply 8 Sustainable Work Force supply 10, 000 college graduates each year - 59,865 students enrolled in 2015/2016 41.5% of population under the age of 30 High intelectual capital - 85% of high school graduates enroll in universities - Multiple vocational high schools in each city 5% of GDP spent on education Excellent language skills - Two official languages - Macedonian and Albanian - English tought from 1st grade - Two foreign languages mandatory in high school - Regional languages (Serbian, Croatian, Bulgarian and Greek) are widely spoken Source: State Statistical Office

Investment Opportunities - Economic Industrial Zone 9 Investment Opportunities - Economic Industrial Zone Economic Industrial Zone ( Klisura) - A special area outside the inhabited place dedicated for investments with incentives regarding prices of land and construction tax. Area Size: 200 ha More than 20 investments realized ( 3 large companies, 4 medium size and 15 small businesses) Land available for the price of €1 - €20 m2 depending on the investment type Construction tax €6 ; €5 for light industries Connection to utilities, complete infrastructure is available Excellent location for investments in manufacturing, service industries Source: investinmacedonia.com

Investment Opportunuties -TIDZ Tetovo 10 Investment Opportunuties -TIDZ Tetovo TID Zone - A special custom area, in which special customs ad tax incentives are applied Incentives in the Zones are applied only for the following activities: - Production activities - IT and R&D activities - Service related to the import of the goods Connection to utilities, complete infrastructure is available No custom duties and no VAT on imported raw materials, equipment and construction materials Green Custom Channel available at border for rapid export from Zone to EU countries Land available under long term lease for a period of up to 99 years Free Zone Tetovo (PPP) Area Size: 95 ha; Distance from Zhelino - 3 km Source: investinmacedonia.com

Dr. Fatmir Izairi - Mayor of the Municipality of Zhelino 11 Thank you Contact us: Dr. Fatmir Izairi - Mayor of the Municipality of Zhelino Zhelino, 1226 Macedonia | http://www.zhelina.gov.mk/ Tel: +389 44 378 030 | Fax: +389 44 378 040 | eMail: komunazh@gmail.com - komunazh@t-home.mk