2012 Investment project of integrated house- building factory construction in Chyukhloma municipal district

Current project involves integrated house-building factory creation in Chyukhloma municipal district. Enterprise’s project capacity is m 2,it is achieved by working in two shifts by 8 hours each one 250 days a year. Main type of products is complete sets of wooden houses made by frame-panel-timber squared technologies. Main application of complete sets is dwelling-houses construction. Project’s value is thousand roubles (excluding VAT). Financial sources: - 30 % of own funds; - 70 % of borrowed funds. Payback period – 6 years Realization period – 8 years Annual consumption of raw materials m 3. 2 Project description

Production plan 3 №Product Measur ement 1 st year 2 nd year 3 rd year 4 th year 5 th year 6 th year 7 th year 8 th year 1House-complete setsm2m Round timber products m3m Sawn materialsm2m Realization plan Product Measur ement 1 st year 2 nd year 3 rd year 4 th year 5 th year 6 th year 7 th year 8 th year House-complete sets thousa nd RUR Round timber products thousa nd RUR ,980089,573637,467185,362883,934924,8 Sawn materials thousa nd RUR , , , , Total thous and RUR Enterprise leases a land plot for cutting area and independently procures raw materials in order to ensure the interrupted work. Project description

Total project value is thousand roubles (excluding VAT), including 30% of own funds, 70% of borrowed funds. It is planned to get a credit at 12% per annum for 8 years. For production organization it is necessary to acquire and build fixed assets, such as equipment, vehicles, buildings. All costs for fixed assets acquisition are planned for the first year of planning period. The depreciation is charged on a straight-line method. 4 Investments Indicator thousand RUR Working places organization 2300 Unforeseen expenses Project works Finished products warehouse construction Administrative building construction 5000 Ground construction Construction of building for the sawmill Boiler house construction 3000 Construction of workshop for house-building Aspiration system acquisition Acquisition of vehicles Acquisition of internal transport 8000 Acquisition of logging equipment Acquisition of equipment for the sawmill Acquisition of drying chambers and boiler equipment Acquisition of house-building equipment Acquisition of a land plot (10 ha) 2500 Total Project description

5 Number of personnel №Staff unit Measur ement 1 st year2 nd year3 rd year4 th year5 th year6 th year7 th year8 th year 1Leaders persons Administrative personnel persons Production personnel persons Total persons By the fourth year of work, when it is the maximum personnel, average monthly salary will be ,75 roubles. Number of personnel

6 Infrastructure For the organization of production the land plot of 10 ha is required. First year of investment project realization involves construction of industrial objects, in the second year the enterprise will start to produce house-complete sets. Water supply is planned to carry out by new wells, that will be created at the land plot. The need for electricity is kW*h per year.

Social efficiency indicators: 1. New working places – 200 workers: share of production personnel - 77%, share of administrative personnel - 20 %, share of management - 3 %. 2. Average salary – roubles. Kostroma region administration is ready to provide the most favoured nation treatment for the investment project in part of exemption from payment of the following taxes payable to the regional budget during the payback period: - exemption from payment of property tax; - reduction of the rate of profit tax from 18% to 13,5%. 7 Economic, social and budgetary efficiency indicators

Indicator With privileges, thousand roubles Without privileges, thousand roubles Revenue (excluding VAT) ,3 Paid for suppliers and employees ,6 EBITDA ,7 Depreciation ,9 Paid taxes , ,9 Interests on loans ,2 Net profit , ,7 NPV , ,82 IRR, % 36,6835,04 Economic efficiency indicators with/without privileges during the whole planning period: 8

Budgetary efficiency during the whole planning period: 9 Economic, social and budgetary efficiency indicators Indicator With privileges, thousand roubles Without privileges, thousand roubles Federal budget, including , ,4 VAT ,0 Profit tax ,4 Regional budget, including ,2 Profit tax ,9 PIT ,5 Property tax , ,1 Municipal budget, including26 549,3 PIT ,3 Land tax Social payments ,5 Total , ,4