PASSPORT OF THE COMPANY National Holding Company «KASHKADARYANEFTEGAZPROMSTROY» JSC PASSPORT OF THE COMPANY

ABSTRACT In accordance with the Presidential Decree of 11.12.1998, the PD-2154 "On the transformation of the National Corporation of Oil and Gas Industry" Uzbekneftegaz ", the Resolution of the Cabinet of Ministers dated fom 15.12.1998, № 523" On organization of the National Holding Company " Uzbekneftegaz "and the order of Territorial Administration of the State Property Committee of the Kashkadarya region on December 29, 1994 №785 was established JSC "Kashkadaryaneftegazpromstroy“.     According to the Decree of the President of the Republic of Uzbekistan on August 21, 2006 PD-446 and the Order of the Cabinet of Ministers of 29 July 2007 for # 339-P, JSC "Kashkadaryaneftegazpromstroy" is a structural subdivision of the Company "Uzneftegazstroyinvest“, under National Holding Company "Uzbekneftegaz" .     In accordance with the Law of the Republic of Uzbekistan "On joint-stock companies and protection of shareholder rights" of May 6, 2014, № ZRU-370, and the decision taken at an extraordinary general meeting of shareholders on January 30, 2015 and registered by the Charter in the new edition of 27.02.2015 #65 for the name of the company was renamed to JSC "Kashkadaryaneftegazpromstroy» («Qashqadaryoneftgazsanoatqurilish» aksiyadorlik jamiyati).

OPERATION OF THE COMPANY The main activity of JSC "Kashkadaryaneftegazpromstroy" is the construction and commissioning of the production capacity of the fuel and energy complex production facilities - civil engineering and the social sphere. In addition to performing contractual construction works, the Company manufactures products for industrial purposes, produces consumer goods, providing paid services. Over the last 20 years under the reform and modernization of the Company was carried out targeted work, which is characterized by the following milestones: First, we developed a new methodological basis, changes and additions to internal and founding documents, the development of new regulations governing labor relations, aimed at increasing the personal liability of employees and the strengthening of economic discipline. There was an inventory of all the existing rules and optimization of their conditions. Second, the program has been implemented retraining, starting with senior executives and ending at the level of ordinary skill to master their modern approach to work, the market mechanisms for customer satisfaction. Thirdly, there have been gradual reform of the structure of units as the vast scope of work / service was provided by these units. Fourth, a fundamentally new level of investment has been organized work aimed at the efficient use of available resources with a view to ensuring the principles of repayment, diversification and liquidity. Fifthly, to ensure financial stability and solvency of the company was organized work for the expansion of services provided, as well as improving the quality of work. In addition, to improve the quality of services, measures were taken for the development, implementation and use of modern information technology.

Company structure UE «KASHKADARYATRANSDORPROMSTROY» UE “KASHKADARYASPEWENERGOMONTAJ» UE «KASHKADARYASTROYMONTAJSERVIS» UE «KASHKADARYAPROMSTROYMATERIAL» UE «KASHKADARYATRANSSERVISSTROY» UE «KASHKADARYANEFTGAZSTROYINVEST»

ENTERPRISE STAFF

Special purpose machinery 36 Units. TECHNICAL EQUIPMENT Special purpose machinery 36 Units. TRUCKS 63 UNITS TRACTORS AND TRAILERS 21 UNITS OTHER EQUIPMENT 51 UNITS

LICENSES AND CERTIFICATES

FINANCIAL INDICATORS

FINANCIAL INDICATORS Title including data 2010 2011 2012 2013 2014   Title  including data 2010 2011 2012 2013 2014 Gross income, mln.UZS 27 106 49 048 35 278 36 357 27 463 The volume of construction activities on own resources, mln.UZS 22 498 37 814 27 321 26 316 20 792 Costs 1 sum of income, tiyin 97,50 96,0 97,3 97,5 98,1 Costs 1 sum of income from construction activities, tiyin 97,22 96,8 96,7 98,0 95,4 Balance sheet profit, mln.UZS 677 1 292 935 916 526 Net profit, mln.UZS 336 706 437 392 163 Net profit profitability (%) 2,6 2,7 2,0 The number of all staff, per. 1 552 1 544 1 587 1 314 1 007 Overall productivity per 1 employee in current prices, th. UZS 1 455 2 647 1 921 2 400 2 361 Wages fund – all, mln.UZS 5 902 9 015 7 167 7 174 5 513 The average salary of 1 worker, UZS 316 900 486 500 376 400 455 100 456 300

FINANCIAL INDICATORS № Title Unit of measurement 2010 2011 2012 2013 2014 1 The volume of production of goods and services mln.UZS 26 423 46 969 34 674 35 162 27 174 2 The company’s turnover 24 927 43 644 32 865 32 677 26 451 3 Profit before tax 677 1 292 935 916 526 4 Operating expenses 2 093 3 393 2 677 3 236 2 799 5 Net profit 336 706 437 392 163 6 Asset value 19 810 21 844 26 834 36 420 39 165

PRODUCTION

INVESTOR TRANSMITTED THE SHARE OF ENTERPRISES To date, the share capital of the company amounts to 768,795,000 sum. (equiv. 300.8 thousand. dollars.) The authorized fund of the company is divided into 512,530 shares with a par value of UZS 1500.0. (equiv. to $ 0.58.) In accordance with Annex №1 to the Decree of the President of the Republic of Uzbekistan dated 28 April 2015goda PP-2340 "On measures to increase the proportion of the value of private property and the economy," provides for implementation of a strategic foreign investor stake in JSC "Kashkadaryaneftegazpromstroy" in the amount of 51%. The distribution of the authorized capital of JSC "Kashkadaryaneftegazpromstroy" after the implementation of the stake in accordance with Presidential Decree of 28 April 2015goda PP-2340 will appear in the following order:  - Strategic foreign investors - 51% 261 388 pcs. shares 392 082 thous. soums (equiv. 153.4 thous. USD);  - Share of other legal entities - 1.32%, 6743 pcs. shares 10,114.5 thous. soums (equiv. 3.9 thousand. dollars.)  - The proportion of individuals (2210 people) - 47.68%, 244399sht. shares 366,598.5 thousand. UZS (equiv. 143.4 thousand. dollars.)

Corporate development plan Necessary investments

CORPORATE DEVELOPMENT PLAN Income total, th. USD 2015 2016 2017 2018 2019 2020 Including income from construction activities 12 784 13 422 14 092 14 797 15 539 16 315 Cost total, th. USD 9 678 10 162 10 685 11 219 11 780 12 369 Direct production costs 12 465 13 074 13 713 14 383 15 089 15 828 Consumption period 10 596 11 128 11 660 12 236 12 857 13 456 Income from financial operations 1 869 1 946 2 053 2 147 2 232 2 372 Profit before tax 2 3 4 Income taxes and other taxes on profits 321 351 382 417 454 492 Net profit, th. USD 164 177 195 213 231 250 157 173 187 204 223 242

Key benefits and risks of the project Taking into account the positive prospects of the main advantages of the company for strategic investors of the Company are: the corporate governance system ensures the greatest transparency of the society and to adequately assess the risks; of the Company's divisions through which society is represented in virtually all regions of the country; historically constituted a strategic framework of the company; financial stability and solvency of the company, guaranteed by the mandatory requirements of the regulatory body confirmed the presence of high ranking and the highest category of issuers; High liquidity of the shares, which creates an opportunity for shareholders to freely dispose of them and leave the company at will; deserved reputation and formed the image of the company among clients and customers. The major risk factors for the project, according to the company, are as follows: Corporate risks; Risks of termination of the license; Risks associated with changes in the value of the scope of work and cost of services; Risks due to inflation; Social risks; Liquidity risks. To minimize and reduce the impact of the above risks, the Company developed strategic and tactical decisions that exclude the occurrence of risk situations.

Marketing and sales strategy works and services The main point of dissemination of works and services is traditionally own advertising display. The implementation of the bulk of the work and services performed by legal entities. In the face of increasing competition, maintaining the strong position of "Kashkadaryaneftegazpromstroy" in the market, as well as the development of new segments requires an active marketing strategy development. The marketing strategy of the company conceived taking into account expected changes in the market and is focused on strengthening the Company's position in the market, to enhance the competitiveness of budgets and tariffs, expansion units and to improve the quality of services, the completion of the Company's personnel professionals and young professionals. The main objectives of the company's marketing strategy aimed at ensuring cost-effective operation in a constantly changing environment, the competitiveness of the company in order to meet the interests of customers, maintaining the public image, the maximum satisfaction of the customer (customer) in size, structure and quality of service, which creates conditions for sustainable business relationship. Thus the Company has set a goal to increase competitiveness, which is intended to increase promotional activities, the creation of additional operational units to customer service, the organization of an effective system of control, the introduction of new technology and information technology. The implementation of the tasks is estimated quite realistic, given sufficient support from the founders and relatively high profitability of the company.

ANALYSIS OF INVESTMENT ATTRACTIVENESS OF THE PROJECT In recent years, a policy aimed at expanding the regional network is regarded as a priority for society. Since its inception, the company is actively involved in shaping the development of the services market in the country and systematically expanding its activities. Progress indicators provide financial stability and solvency of the company at a high level. For the last 4 years the company's solvency ratio exceeds the State Inspectorate of the Republic of Uzbekistan in the standard of 1.5 - 2 times, and has a positive dynamics. This certainly is a guarantee of the company assumed obligations to customers, partners and shareholders. Also, a guarantee of performance of obligations to society are partners guarantee reserves formed from profit. Dynamic improvement in operating performance and branched units on the forefront of providing jobs and services. Finally, this assessment helps to expand financial opportunities and the growth of confidence in the company among customers. In accordance with the planned business plan for 2015-2019 years. estimates of the profitability of the authorized capital, return on assets and earnings per share are as follows: Indicator 2015 2016 2017 2018 2019 2020 The profitability of the authorized capital (%) 0,46 0,51 0,55 0,60 0,66 0,71 Earnings per share (USD). 0,3 0,4 Note: Tabular data and the data in the diagrams are presented according to the consolidated financial reporting. As well as overall data on staff takes in to account staff of the structural units of the company.

CONTACTS Uzbekistan, Kashkadarya region, 180204, Karshi district, Mevazor village, St. Navruz. Tel, Fax: (0375) 575-23-65. E-mail:office_kngsk_oaj@mail.ru www.kngsk.uz