2 Where we are: Located on the border between Europe and Asia Area of sq.miles, as big as Indiana state, US Developed transport infrastructure connecting Europe and Asia (inc. Trans-Siberian Railway, 2 international airports etc.) Located on the former Silk Road

Chelyabinsk – transportation hub Chelyabinsk Region – Russia’s major transportation hub. Located at the intersection of key north-south and east-west routes and railroads: Principal highways; South Ural Railway, part of the Trans-Siberian Railway, crosses European and Asian continents; International airports “Chelyabinsk” and “Magnitogorsk”; Well developed transport infrastructure allows to create an effective logistics solutions. 3

Population: 3.5 million Urban 2.85 million Rural 0.65 million Number of employed in various brunches of economy: over million Number of students: 186 thousand Number of educational institutions 41 Higher Education Institutions 52 state founded scientific and research organizations South Ural State University 4 Our labor and scientific resources:

Iron -24 Zinc and copper ores -11 Refractory raw materials Caolin, the biggest deposit 5 Chelyabinsk region is a monopolist in mining and processing in Russia: magnesite (95%) talc (70%) metallurgical graphite (95%) dolomite (71%) Natural resources: There are more than 300 deposits of Gold - 42 Graphite Quartz Barite Phosphorite Marble

6 We rank among Russia regions in 2012: 1 st in pasta production 3 d in poultry production 6 th in industrial production 8 th in foreign investment 12 th in agriculture production

Meat production dynamics in the Region (thousand tons) Forecast 2016 Poultry 100,2115,8124,3142,2171,0300,0 Pork 44,644,848,450,854,0150,0 Total 144,8160,6172, ,0* 144,8 160,6 172, ,0 7

8 Foreign Trade Turnover (million US dollars) *Since 01 June 2010 due to the Customs Union formation there has been no registered data as to mutual trading with Kazakhstan

9 Foreign Trade Turnover Structure 2012

10 Our major investors Germany, Switzerland, France, Finland, USA, Great Britain, Italy, Czech Republic, Kazakhstan

11 Foreign Investment (million US dollars)

12 Foreign companies’ success stories SAINT GOBAIN (France) – construction products, investment of $110 million REXAM (Great Britain) – beverage can production, investment of $80 million HENKEL-BAUTECHNIK (Germany) – dry mortar production, investment of $13.8 million ROCKWOOL (Denmark) – mineral wool board production, investment of $10.8 million FORTUM (Finland) – electric energy generation, investment of $1880 million TEREX (USA) – mining tip truck production, investment $12,5 млн.

13 ROCKWOOL Success story ROCKWOOL is a world leader in production of heat noncombustible insulation made from rock wool; Investments total volume is $10.8 mln; Production line is put into operation on 25 September 2011 for test-operating; Rockwool technologies are implemented at Troitsk Mineral Wool Board Works for the purpose of increasing output capacities by 50% as to current production line of boards made from rock wool; Production line of cylinders made from rock wool

14 EMERSON success story Company development –Russian leader in process automation for all industries –First products manufactured September 17, 1992 –100% acquisition with Emerson Process Management, USA, 2009, –More than $ 30 million investments in operations, R&D and Customer support –More than $100 million revenue, 2011FY –Headcount – more than 900 employees –Building sq.m. more space capacity for total 1600 employees in June More than $40 million investment. Research and Development Modern Operations Customer Support Center Service Center

Carbo Ceramics success story CARBO Ceramics is the world largest manufacturer of ceramic proppants The Chelyabinsk plant was designed to produce proppants required to increase productivity of oil reservoirs on the territory of the Russian Federation With the support of the Chelyabinsk region Government, a plot of land with all required communications and utilities was assigned for the plant construction Capital investment exceeds was over 40 million USD In 2008 the plant reached its 100% production capacity of t/yr 16

Possible Directions in Cooperation with the USA 17 Investment cooperation (establishing joint companies and productions ‘from scratch’) Drawing investments into the sphere of agriculture and agriculture products processing: -all-mash making for poultry and animal husbandry branches; -pork and beef and poultry meat producing and processing; -oil-yielding crops producing and processing including biofuel production based upon that; - building up-to-date vegetables storage facilities. Drawing technologies into the sphere of water treatment and purification Drawing technologies into the sphere of industrial production, i.e., automated systems, energy generating and supplying equipment, municipal engineering, as well as consumer goods production. Export increase as to products made in the Chelyabinsk region (ferrous and non-ferrous metallurgy, machine building, flour-milling industry)

Possible Directions in Cooperation with foreign partners 17 Investment cooperation (establishing joint companies and productions ‘from scratch’) Drawing investments into the sphere of agriculture and agriculture products processing: -all-mash making for poultry and animal husbandry branches; -pork and beef and poultry meat producing and processing; -oil-yielding crops producing and processing including biofuel production based upon that; - building up-to-date vegetables storage facilities. Drawing technologies into the sphere of water treatment and purification Drawing technologies into the sphere of industrial production, i.e., automated systems, energy generating and supplying equipment, municipal engineering, as well as consumer goods production. Export increase as to products made in the Chelyabinsk region (ferrous and non-ferrous metallurgy, machine building, flour-milling industry)

Investment in Chelyabinsk Chelyabinsk Region was assigned BB+ long- term rating by Standard & Poor’s. Financial stability rating by national scale has been ruAA+. The forecast on both ratings is Stable. Advantageous conditions for investors Tax incentives Ongoing support Free of ‘red-tape’ 19 Rating Agency Fitch Ratings: Long-term rating BB+/Positive Short-term B, national long-term AA (rus)

What we provide: Regional Government offers: Land grants; Utility networks and infrastructure construction for the land lots; Investment agreement with Chelyabinsk Government; Single window system for regulatory documentation; Tax exemption. 20

Taxation regime for investors: Tax deductions for the period of 5 years through the competition : Profit Tax reduced to 13,5%Property Tax reduced to 1,1% Land Tax Advantages (deductions) over the construction period 21

Support Measures for Investors Start office for foreign investors provides a coordinated approach (we offer consulting and translation services for start-up foreign investors) The website «Chelyabinsk Region Investment»

22 WELCOME TO CHELYABINSK REGION Ministry for Economic Developmen of the Chelyabinsk region Address: 57 Lenin prospect, Chelyabinsk Phone: Fax: Internet: