PENZA REGION – TERRITORY OF INVESTMENT OPPORTUNITIES

BRIEF INFORMATION ABOUT PENZA REGION MAP OF PENZA REGION The distance from Penza to administrative centers TERRITORY 43,4 THOUSAND KM2 1,3 mln. people 7,1 mln.people 16 mln. people 22,1 mln.people 37,2 mln. people 46,8 mln. people 1,3 млн. человек 7,1 млн. человек 16 млн. человек 22,1 млн. человек 37,2 млн. человек 46,8 млн. человек POPULATION 1,3 MLN PEOPLE KM. BY ROADS DISTANCE FROM PENZA TO MOSCOW AT A DISTANCE OF 600 KM IT IS HOME TO 47 MLN PEOPLE GROSS REGIONAL PRODUCT 5,6 MLRD $ AGRICULTURAL AREA 3 MLN HA REGULAR RACES MOSCOW-PENZA, ST.PETERSBURG-PENZA, KAZAN-PENZA

EMPLOYMENT POTENTIAL 4 17 8 14 thsd.people 753 thsd. people 4,7% 430 $ EDUCATING SPECIALISTS UNIVERSITIES COLLEGES BRANCHES OF UNIVERSITIES 4 17 8 14 thsd.people WORKING AGE POPULATION THE UNEMPLOYMENT RATE BY THE ILO THE AVERAGE SALARY LEVEL 753 thsd. people 4,7% 430 $

INDEX OF INDUSTRIAL PRODUCTION, % INDUSTRY OF PENZA REGION INDUSTRY IS THE MAIN SECTOR OF THE ECONOMY OF PENZA REGION 37,2% FOOD PRODUCTS PRODUCTION INDEX OF INDUSTRIAL PRODUCTION, % 13,1% ELECTRONIC EQUIPMENT PRODUCTION PRODUCTION AND DISTRIBUTION OF ELECTRICITY, GAS AND WATER 11,4 % 8,8% PRODUCTION OF MACHINERY AND EQUIPMENT 6,5% PULP AND PAPER PRODUCTION 4,4% METALLURGICAL PRODUCTION AND PRODUCTION OF METAL PRODUCTS 2013 2014 2015 2016 May 2017 2,2 % MEDICAL INDUSTRY

TAX ADVANTAGES AND PREFERENCES BENEFITS OF PENZA REGION FAVORABLE INVESTMENT ENVIRONMENT RESOURSE POTENTIAL (FOREST, WATER, LAND RESOURCES) TAX ADVANTAGES AND PREFERENCES FAVORABLE ECOLOGICAL SITUATION, DANGEROUS PRODUCTION ARE ABSENT ON THE TERRITORY OF THE REGION HIGH INTELLECTUAL AND HUMAN RESOURCES LOW COST OF BUSINESS INFRASTRUCTURAL SUPPORT FOR INVESTORS HIGH LEVEL OF DEVELOPMENT OF TRANSPORT AND LOGISTICS COMPLEX SAFE BUSINESS CONDITIONS TAX ADVANTAGES AND PREFERENCES for a period of three years from the date of commissioning of objects of investment project (for newly established enterprises and enterprises - agricultural producers); for a period of five years from the date of commissioning of objects of investment project (for projects with an investment volume of more than 133,3 mln $).

THE BUSINESS ENVIRONMENT TARIFFS FOR CONNECTION THE TARIFFS FOR UTILITY SERVICES ELECTRIC NETS: From 76 $ for 1 кW/h; GAS NETWORK: From 1 375 $ /m3/h TRANSMISSION OF ELECTRICITY - 0,01 $ for 1 кW/h GAS – 0,07 $ за 1 m3 WATER – 0,35 $ /m3 SANITATION – 0,67 $ /m3 Class А – 170 $/m2/year Class В – 100 $/m2/year Class С – 30 $/m2/year Class А – 300 $/m2/year Class В – 130 $/m2/year Class С – 50 $/m2/year Class А – 50 $/m2/year Class В – 30 $/m2/year Class С – 20 $/m2/year COMMERCIAL PREMISES OFFICE SPACE WAREHOUSE AND INDUSTRIAL PREMISES MEDIUM CONSTRUCTION TERM Logistics centers – 2 years; Production departments – 8 months; Multistore building – 1 year; Warehouse – 4-5 months. THE RANKING OF INDUSTRIES BY SALARY LEVEL IN THE PENZA REGION, $ IT-computers, the Internet HR-specialists Trade/sales Building Transport/Car service Agriculture Safety/security Production TOP-management Property

TECHNOLOGY PARKS OF PENZA REGION TECHNOLOGY PARK «YABLOCHKOV» TECHNOLOGY PARK «RAMEEV» SPECIALIZATION: IT PRECISION INSTRUMENTS INDUSTRY MATERIAL ENGINEERING SPECIALIZATION : MEDCINE PRODUCTS IT SPACE RENTAL: 4,46 USD/М2 – OFFICE SPACE 4,46 USD/М2 – INDUSTRIAL SPACE EQUIPMENT RENTAL: First year– 1,5% of the cost of equipment; Second year– 2,2% of the cost of equipment; Fourth year– following years– 3% of the cost of equipment. SPACE RENTAL: 5,12 USD/М2 – OFFICE SPACE 3,72 USD/М2 – INDUSTRIAL SPACE EQUIPMENT RENTAL: First year– following years- 5% of the cost of equipment.

PSEDA A SIMPLE PROCEDURE OF VAT REFUND PSEDA – PRIORITY SOCIAL AND ECONOMIC DEVELOPMENT AREA TAXES BENEFITS FOR PARTICIPANTS OF PRIORITY SOCIAL AND ECONOMIC DEVELOPMENT AREA (PSEDA) 0% INCOME TAX TO FEDERAL BUDGET 5% INCOME TAX TO REGIONAL BUDGET SEVERANCE TAX ASSETS TAX LAND TAX 7,6% CONTRIBUTIONS TO SOCIAL FUNDS PSEDA ZARECHNY ADDITIONAL BENEFITS FOR PARTICIPANTS OF PRIORITY SOCIAL AND ECONOMIC DEVELOPMENT AREA (PSEDA) A SIMPLE PROCEDURE OF VAT REFUND FREE CONNECTION WITH INFRASTRUCTURE OBJECTS PREFERENTIAL RENT OF LANDS AND BUILDINGS PSEDA SERDOBSK

Investment infrastructure Soft infrastructure: electricity – 24 MV t water supply and sanitation – 390 thousand m3 /day gas supply of 16.5 thousand m3/hour LEASE OF LAND \ RANTING : 500 $ /ha/per year INDUSTRIAL PARK «OTVEL» - 137 ha. electricity – 50 MV t gas supply of 55 thousand m3/hour LEASE OF LAND : 25 $ /ha/per year INDUSTRIAL PARK«SERDOBSKIY» - 418,8 ha. gas supply – of 6 thousand m3/hour 18,3 $ /ha/per year INDUSTRIAL PARK«DAVYDOV» - 114,5 ha. gas supply – of 2 thousand m3/hour electricity – 10 MV t water supply and sanitation – 7 thousand m3/day Office – 30 $/m2/per year Industrial – 20,4 $/m2/per year INDUSTRIAL PARK«UNION» - 60 m2 5 TAXES BREAKS AND PREFERENCES FOR RESIDENTS OF INDUSTRIAL PARKS PROVISISON THE LAND FOR RENT WITHOUT BIDDING CONSULTING SUPPORT INCOME TAX REDUCTION TO 10%

SUCCESS STORY Production of industrial equipment Investments(mln $): 11 Production of the base-paper for furniture and woodworking industry Investments(mln $): 37 Production of bricks and ready-mixed concrete Investments(mln $): 12 Agricultural crops production and processing Investments (mln $): 12 Implant production for the trauma Investments(mln $) : 33 Implant production for the trauma Investments(mln $) : 1 Cement production with the latest technology (by the ‘dry way’) Investments(mln $): 354 Milk and dairy products Investments(mln $): 171 Sugar production from sugar beets and raw sugar Investments(mln $): 11 Machine tools production Investments(mln $):10

WELCOME TO PENZA krpo.ru investinpenza.com JSC «Penza Region Development Corporation» Аdress: 440000, Penza region, Penza, Volodarsky St., 2/20 Telephone: +7 8412 46 50 58 e-mail: info@krpo.ru krpo.ru investinpenza.com