INVEST IN UZBEKISTAN THE STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN FOR PRIVATIZATION, DEMONOPOLIZATION AND DEVELOPMENT OF COMPETITION INVEST IN UZBEKISTAN gkk.uz

PRIVATIZATION IN UZBEKISTAN Small privatization Corporatization of state enterprises Privatization of large JSCs Large industrial companies for foreign investors BRIEF STATS: Housing Fund - fully privatized by 1993 More than 31,000 legal entities transferred to private ownership A new class of owners formed = more than 2.0 million holders of shares and stakes Due to privatization more than 85 thousand citizens became owners of private and small enterprises 2 gkk.uz

International Investment Forum (Tashkent, 6 Nov, 2015) WHY INVEST IN UZBEKISTAN International Investment Forum (Tashkent, 6 Nov, 2015) 550+ foreign participants 300+ int’l companies 100+ deals for total $12.5 bn 8% GDP growth each year over the last decade progressive infrastructure and qualified labor lowest costs of running a business in Central Asia 60+ Universities, 300K+ degree holders per year GLOBAL BRANDS PROVEN BY SAVVY INVESTOR’S BEST CHOICE 57th in global prosperity index by Legatum Institute in the top 10 of “doing business” reforms among top-5 fastest growing economies in the world 16 points up in 2015 Doing business report success stories by global brands , operating in Uzbekistan abundant resource base (global top 10 reserves in minerals and more) favorable investment climate tax incentives and other preferences 3 gkk.uz

WHY INVEST IN UZBEKISTAN Indicators of the banking sector 2015 Capital adequacy ratio On average 23,6% (Central bank requirement 10%, and Basel recommendation – 8%) Liquidity ratio On average 64,5% (two times more than int’l requirement) Non-performing loans Less than 1,0% (of total loans volume) Real GDP growth rates (%, YOY) 4 gkk.uz

FOREIGN ENTERPRISES IN UZBEKISTAN More than 5 000 enterprises with foreign capital 5 gkk.uz

ADDITIONAL STIMULI FOR INVESTORS Payment period can be extended for up to 24 months Amounts paid by the Investor remain at the purchased company Targeted use of investments for modernization and expansion of production Flexible possibilities : delegating voting rights on state shares to minority foreign investor to enable governance and management policy decisions 6 gkk.uz

FOCUS ON CORPORATE GOVERNANCE Jointly with foreign experts the Corporate governance code was prepared and adopted in Uzbekistan, based on international principles Transfer to IFRS and international standards of auditing was set by legislation Independent directors are introduced to the boards of joint-stock companies Internet portal for corporate information disclosure was launched KPI was introduced to measure executive directors efficiency Foreign managers are to be attracted to senior executive positions in joint- stock companies Scientific-educational center for corporate governance was established and started training of executives and board members in line with advanced standards Starting 1 July 2016, joint stock companies in Uzbekistan are to be created with foreign capital’s participation. Currently, large joint-stock companies are actively developing partnerships with foreign investors and are attracting investments. 7 gkk.uz

PROGRAM AIMED AT INCREASE OF THE PRIVATE SECTOR’S SHARE IN THE ECONOMY On April 28, 2015 President of the Republic of Uzbekistan approved the Program aimed at Increase of the Private Sector’s Share in the Economy, which stipulates transition into the Private Ownership of over 1247 Enterprises and Facilities, including: State-owned shares at 68 Enterprises offered to the Foreign Investors State-owned Facilities and Shares at 667 Enterprises subject to be put onto Sales for the Foreign and the Local Investors 512 State-owned Facilities offered to the Foreign and the Local Investors at a “Zero” Purchase Price in return for the undertaken Investment Obligations Prices of the state-owned assets offered to foreign Investors have been appraised by international appraisal companies 8 gkk.uz

CURRENT TREND IN PRIVATISATION Adopted decisions on privatization foresee that more than 1300 enterprises and assets of the state are to be transferred to the private sector. Over the last year alone, 800 assets were already transferred to the private sector, which illustrates the high level of demand from investors. Exclusive offers for foreign investors currently encompass over 300 assets in every segment of the economy, represented by shares of regional industry leaders and other large companies. 9 gkk.uz

PROGRAM AIMED AT INCREASE OF THE PRIVATE SECTOR’S SHARE IN THE ECONOMY On 25th of December, 2015 another Presidential Resolution was adopted for joint-stock companies, operating in Uzbekistan. The adopted act establishes, that: starting 1 July 2016, foreign investors’ share in a joint-stock company shall comprise at least 15% of authorized capital; existing joint-stock companies shall ensure that by 1 July 2016, foreign investors hold at least 15% of their authorized capital; this requirement does not apply only to certain companies (the list is approved by the Cabinet), which are of strategic importance (natural monopolies, belong to mineral resources extraction and processing sector, or render socially important services at regulated prices etc.). 10 gkk.uz

OFFERS PER INDUSTRIAL BRANCHES Printing Industry (1) Agricultural Sphere (1) Financial Institutions (4) Automotive Industry (1) Electrical Engineering (4) Winery Plants (2) Construction Materials (5) Chemical Industry (4) Food Products’ Industry (15) Transports Sphere (3) External Trade Sphere (2) Oil and Gas Sphere (16) Light Industry (2) Other Branches’ Enterprises (8) STOCKS AT 68 LARGE ENTERPRISES 11 gkk.uz

Open for investment EXCLUSIVE OFFERS FOR FOREIGN INVESTORS and more Electrical Engineering Industry Services Constructions sphere Chemical Industry IPAK “SHARK” JSC “NavoiAzot” JV LLC «Ipak Yo’li – Turizm Invest» JSC “Kokand Superphosphate Plant” Ahangaran Shifer JSC «ONIX» JSC “FerganaAzot” JSC «CHIRCHIC TRANSFORMER PLANT» JSC “URGENCH EXCAVATOR” 12 gkk.uz

Offered Stocks Package: 49 percent FEATURED OFFER Leading manufacturer of mineral fertilizers in Uzbekistan and the Central Asia JSC “NavoiAzot” Offered Stocks Package: 49 percent Characteristics Data Kind of Activity Production of Mineral Fertilizers, Chemical Agents, Small-Capacity Chemistry Number of Personnel 10 068 persons Territory 895,6 hectares Net Revenues $ 252,7 million Production Capacity ammonia (550 thous. tons), nitric acid (870 thous. tons), ammonia nitrate thous. tons (950 thous. tons), other fertilizers (200 thous. tons), chemical agents (52 thous. tons), and other chemical products (102 thous. tons) Market Share 80 percent According to the Investment Program, during 2015 – 2019 at JSC “NavoiAzot” implementation of projects for the total amount of $1,8 billion is planned 13 gkk.uz

Offered Stocks Package: 36 percent FEATURED OFFER Leading manufacturer of cement in Uzbekistan and the Central Asia. Located in Navoiy Region Offered Stocks Package: 36 percent Characteristics Data Kind of Activity Production of Cement Number of Personnel 3 497 persons Territory 1,3 thous. hectares Net Revenues $ 397,5 million Production Capacity 3.080.000 tons Market Share 55 percent 14 gkk.uz

JV LLC «Ipak Yo’li – Turizm Invest» FEATURED OFFER JV LLC «Ipak Yo’li – Turizm Invest» One of the best hotels of Uzbekistan, located in the center of Tashkent City Share offered to Foreign Investors: 39 percent Characteristics Data Kind of Activity Hotel services Number of Personnel 175 persons Territory 11,8 thous. sq. ms Space under the roof 20 thous. sq. ms Net Revenues $ 6,1 million. Number of rooms 206, including 100 standard, 98 semi-suits, 2 suits and 1 Presidential Suit, 5 apartments Infrastructure Restaurant, café, confectioner's shop, four conference-halls, banquet hall for 750 seats 15 gkk.uz

Offered Stocks Package: 29.9 percent FEATURED OFFER The largest Business Center of Uzbekistan, located in the center of Tashkent City Offered Stocks Package: 29.9 percent Characteristics Data Kind of Activity Lease of Office and other room spaces Number of Personnel 70 persons Territory 3,6 hectares Space under the roof 8,2 thous. sq. ms Net Revenues $ 5,4 million Occupancy rate 85 percent 16 gkk.uz

Offered Stocks Package: 38,3 percent FEATURED OFFER Largest Exhibition Center in Uzbekistan, located in the Center of Tashkent City Offered Stocks Package: 38,3 percent Characteristics Data Kind of Activity Render of services related to Exhibition Activity Number of Personnel 309 persons Territory 43,4 hectares Space under the roof 28 thous. sq. ms. Net Revenues $ 4,2 million Brief description Annually holds over 50 large Exhibitions, including the Innovations’ Fares, International Industrial Fairs, Cooperation Exchange, International Uzbek Cottons Fairs, Exhibitions-Fairs “Uzbekistan AgroMiniTech Expo” and “Uzbekistan AgroTechMash Expo” and others. 17 gkk.uz

Angren Logistika Markazi FEATURED OFFER Angren Logistika Markazi One of the largest logistics hubs of Uzbekistan, located in Tashkent Region Offered Stocks Package: 49 percent Characteristics Data Kind of Activity Loading-unloading, transportation and forwarding services Number of Personnel 1604 persons Territory 36.9 hectares Net Revenues $ 30,2 million Market Share 100 percent 18 gkk.uz

Offered Stocks Package: 63,1 percent FEATURED OFFER One of the largest banks in Uzbekistan, located in Tashkent City, possesses the developed affiliated branches in the Regions Offered Stocks Package: 63,1 percent Characteristics Data Kind of Activity Banking Activity Number of Personnel 70 persons Territory 2,9 hectares Net Revenues $ 62,3 million Net Income over $ 8,7 million Attainments Awarded by positive rating score by “Moody’s”, “Standard & Poor’s” and other Agencies 19 gkk.uz

ADDITIONAL INFO ON ASSETS OFFERED FOR SALE www.gkk.uz 20 gkk.uz

Thank You for your kindest attention! www.gkk.uz info@gkk.uz 55, Uzbekistan Avenue, Tashkent, Republic of Uzbekistan, 100003 Tel:(+ 99871) 259-20-90 Fax:  (+ 99871) 239-47-84 21 gkk.uz