of Republic of Uzbekistan Fergana Region of Republic of Uzbekistan Dear Ladies and Gentlemen! Distinguished guests! Allow me sincerely greet and express gratitude for an interest in developing investment and trade - economic cooperation with Uzbekistan. I would like briefly inform you about outcomes of economic reforms and favorable investment environment in our country as well as prospects for further cooperation. 1

Brief Information Namangan Total land area: 7 001 sq.km Andijan Population: - 3, 564 mln Man – 1,792 mln. (50,3%) Woman – 1,771 mln. (49,7%) Labor force – 2 ,01 mln Namangan Total land area: 7 001 sq.km Andijan Kirgyzstan Tadjikistan Tashkent Content Layouts Urban population: – 2,016 mln. (56,7%) Rural population: – 1,559 mln. (43,3%) Cities: - 4 Districts: - 15

TRANSPORT including highways – 202 km Railroads – 228,6 km stations – 16 International Aiport – 1 3

GEOGRAPHY Fergana region is located in the southern part of the Fergana Valley in the far east of the country. It borders the Namangan and Andijan Regions of Uzbekistan, as well as Kyrgyzstan and Tajikistan.

COMPOSITION OF GROSS REGIONAL PRODUCTS (2,24 billion USD in 2017, (%))

Industrial Products (1,25 billion USD in 2017, (%)) 6

Economic development INDICATORS: Unit 2011 2016 2017 GRP billion USD 1,68 2,15 2,24 ECONOMIC GROWTH % 3 3,8 4,0 FOREIGN INVESTMENT AMOUNT million USD 50,3 88,2 110,4 FOREIGN INVESTMENT QUANTITY (Enterprises) pcs. 112 176 202 AVERAGE SALARY USD 75 110 120

Export potential of Fergana Region Increase 29 %

Foreign Investment 40 Enterprises with 100% foreign capital (Daewoo Textile, Indorama, etc.). Employees- 4620 people 114 Joint Ventures with partial foreign capital (Uzsungwoo, Tapo Disc, etc.). Employees -8303. Expected New Projects in 2018- 30 unit, Total amount, New work places Geography of Investors: South Korea, Russia, China, Turkey, Germany, USA

Trade Balance

Natural Resources silver uranium aluminum molybdenum zinc granite oil coal gypsum marble tungsten cement stones

Total area used in agricultural sector - 409.7 thousand hectares Agriculture Total area used in agricultural sector - 409.7 thousand hectares 49,9 Gardens 6,8 Grapes 71,7 Household Plots Irrigated land 44,3 Other lands 12

Products produced in 2017 (thousand tons) Vegetables Cucurbits Potatoes 890,1 78,1 299,4 Grapes Fruits 156,6 477,3

Production forecast for 2018 (thousand tons) Vegetables Cucurbits Potatoes 921,3 116,2 336,0 Grapes Fruits 180,1 497,3

Touristic Places 371 Cultural heritage objects: Archeological – 113 Monumental – 38 Architectural – 136 Sights of special attention - 84

Rich handicraft heritage Touristic places Rich handicraft heritage Over 1000 ceramists in Rishtan town Over 200 masters of silk making in Margilan Over 200 masters of wood carving in Kokand

Potential areas for Tourism Eco-tourism (Shohimardon, Vadil, Arsif) Agro-tourism (Yazyavan, Quvasay) Food-tourism Active-tourism Cultural tourism Ethnic tourism Religious tourism Medical tourism

Why invest into Fergana region? Population is over 3.6 million people with 40% of population is at the age of 18-30 Plenty of educated, high skilled and low cost workforce There are 2 institutions and 2 universities in the region with over 20,000 students studying in various academic fields About 3000 students are in science, 6000 students are in engineering and over 1500 students are in IT fields

Why invest into Fergana region? Information about students studying and graduates in higher education institutions in Fergana region № Universities and Institutes Total number of studying students Number of graduates, over the last 5 years, unit 1 KPI 5414 6736 2 TATU FB 1263 1506 3 FSU 6648 7856 4 FPI 6604 6160 Total 19929 22258

Why invest into Fergana region? Information about students studying and graduates in higher education institutions in Fergana region № Fields Total number of studying students Number of graduates, over the last 5 years, unit 1 Science 2954 3934 2 Engineering 5994 5431 3 Information Technology 1532 2045 Total 10480 11410

Information about students studying and graduates in higher education institutions in Fergana region

“Kokand” Free Economic Zone Total area -709,3 ha. A zone - 58,3 ha. (Kokand city) B zone - 268,0 ha. (Uchkuprik district) C zone – 383,0 ha. Note: in a territory in yellow there are on going manufacturing companies

Infrastructure allocation in a FEZ (A,B and C subzones)

Recommended production fields in the territory of FEZ "Kokand" Pharmaceutical and chemical Electronics Automotive industry  Shoes and leather products Light industry and carpet making Construction Materials Vegetable-fruit and deep processing of agriculturalпродуктов, упаковка и хранение Furniture, wood processing and other areas Recommended production fields in the territory of FEZ "Kokand"

Approved investment projects in “Kokand” FEZ (as of 01.01.2018) № Project Quantity Amount (mln. USD) Financing sources (mln. USD) Job creation Required land (ha.) Own funds Bank loans Foreign investment Total 40 123,6 36,8 69,3 16,7 4191 97,5 1 Chemical 4 2,19 2,01 0,19 145 3,7 2 Construction materials 11 19,07 7,93 10,79 0,35 770 32,6 3 Food processing 47,96 12,36 35,58 1 107 15,4 Light industry 6 13,87 1,39 2,08 10,4 476 7,6 5 Shoes and leather production 19,63 7,83 11,80 835 9,7 Electronics 3,9 0,7 1,5 1,7 105 9 7 Pharmaceutical 6,88 1,73 4,85 0,3 311 6,2 8 Automotive industry 4,0 0,9 1,9 1,2 178 Others 6,09 2,66 0,73 2,7 262 4,4

Tax and customs incentives at “Kokand Free Economic Zone” for a period of 3 years from 300 thousand USD up to 3 million USD for a period of 5 years from 3 million USD up to 5 million USD for a period of 7 years from 5 million USD up to 10 million USD for a period of 10 years. In additional, 50% tax exemptions on the income tax and the single tax payment offered for further 5 years after the expiry of 10 year period from 10 million USD and above

Tax and customs incentives at “Kokand Free Economic Zone” Tax on land Income tax Property tax Social infrastructure development tax Single tax on micro firms and small businesses Payment to the off-budget Reconstruction Fund Payment to the Republican Road Fund Customs fees for raw materials, materials, equipment and components

"Single Window“ service Insurance Custom Tax Logistics Bank Visa All services are provided in one location to assure convenience for registration and operation in Free economic zone. FEZ Kokand

Kokand FEZ infrastructure Engineering Communication 110 kw 12,0 м3 10 000 м3

Utility bills (as of 01.03.2018) 110 kw. 12,0 м3 10 000 м3

Peaceful and safe society Availability of high skilled employees Abundance of natural resources Over 20 mln. potential consumers Investment friendly policy of government Peaceful and safe society Guaranteed insurance coverage against political and other risks Cheap labor and energy resources Developed logistics infrastructure Tax and customs incentives

THANK YOU FOR YOUR ATTENTION !!! For further information and cooperation on potential investment projects, please feel free to contact us at: Fergana Regional Investment Department Address: 17 A.Navoi street, Fergana city 150100, Uzbekistan Tel: + 998-73 244 05 25 Email: far-invest@mail.ru