INFORMATION ABOUT THE INVESTMENT PROJECT “The production engineering of the reducer gear drive high pressure fuel pump for complete set of JSC “KAMAZ” motor vehicles

The purpose of the project - production of the reducer gear drive TNVD. Required investment – thousand $; Project implementation period –

Project milestones deadlines Determination of equipment suppliers April 2013 Design of tooling for the manufacture of reducer gear drive high pressure fuel pump (TNVD) June 2013 Technical documentation development for manufacturing reducer gear drive high pressure fuel pump October 2013 Providing materials, moulding and components November 2013 Manufacturing tooling for mass production of the reducer gear drive high pressure fuel pump November 2013 Buying equipment (commissioning work on manufacturing operations) December 2013 Start of production January 2014 Full production January 2015 Investment project implementation period

Analysis of domestic and foreign markets OJSC "KAMAZ“ is currently the absolute leader in the segment of trucks with gross weight from 3 tons in the Russian Federation possessing market share in the low - cost segment - 70%. In 2012 they sold 40,190 vehicles, of which more than 32 thousand items were sold in Russia. According to various estimates no more than 5% of Russian enterprises producing automotive components are compliant with ISO/TS-16949, which establishes specific requirements for quality management systems for suppliers of the automotive industry as well as other requirements for the quality and organization of production. Opened joint-stock company "Borisov plant "Autogydrousilitel" is a specialized enterprise that produces steering gears, hydraulic boosters, cylinders and others components of automobile chassis for wide range of cars (from light vehicles to heavy lorries). The company provides complete set of car assembly conveyors of the largest automobile plants in Belarus, Russia and Ukraine, including: JSC "MAZ", P/A "MTZ", OJSC "GAZ", OJSC "UAZ", JSC "PAZ", OJSC "KAMAZ", JSC "AZ Ural", HC "AvtoKrAZ" etc.

Product distribution on the main markets

Sales pattern of output among main consumers,%

The largest share in the total supply of products turned out by the plant belongs to Russia %. Realization in Belarus is about 25.3%. Priority growth area for "Borisov plant" Autogydrousilitel“, JSC is the implementation of various projects which aim at creating high-performance enterprise with high production standards and modern technology and equipment. Potential competitor of JSC "Borisov plant" Autogydrousilitel“ in complete set of “KAMAZ“ motor vehicles with the reducer gear drive high pressure fuel pump is "Murommash", OJSC (Russian Federation). Price of reducer gear drive of "Murommash", OJSC is rubles. RF, the price of "Borisov plant" Autogydrousilitel“ (agreed price with OJSC" KAMAZ") is rubles RF. The developing technology for production of the reducer gear drive high pressure fuel pump provides many alternatives for its using. In case of reasons arising beyond the control of JSC "Borisov plant" Autogydrousilitel“ slump in sales of the reducer gear drive high pressure fuel pump the above-mentioned technology will allow to produce other components demanded in the domestic and foreign markets. In the manufacture of other automotive components the mean level of value added per worker will be 16.8 thousand dollars in 2015.

Selected financial results of JSC "Borisov plant" Autogydrousilitel " Indicator names units 2012 г.2011 г. The reporting period For the same period last year Receipts from marketing goods, services products, worksmillion rubles Cost of sales products, works, services, management expenses, distribution costs million rubles Profit (loss) before tax, totalmillion rubles Including: sales income (works, service)million rubles Including: other income and current operating expensesmillion rubles Including : Profit (loss ) from investments, financial and other activitiesmillion rubles income tax; changes in deferred tax assets, changes in deferred tax liabilities: other taxes and fees, calculated from the profit million rubles Net profitmillion rubles Non current receivablesmillion rubles-- Fixed liabilitiesmillion rubles Average number of listed employeespeople

Economic indicatorunits As a result of investment project expected in 2014 expected in 2015 Sales proceeds per employee million rubles890,51113,1 thousands of U.S. dollars 104,3130,3 Gross value added per employee million rubles504,5631,1 thousands of U.S. dollars 59,173,9 Growth rate of labor productivity GVA (at current prices) %213,9125,1 Balance of foreign trade thousands of U.S. dollars 2 607,05 214,0 Activities of the project

Share of export shipments Requirement of "KAMAZ" in a new production of "Borisov plant" Autogydrousilitel "- the gear head TNVD is caused by the introduction in Russian Federation standards" Euro-4 ", what led to the development in "KAMAZ-Diesel“ fundamentally new power unit - gear head TNVD designed for use in standards "Euro-4" and "Euro- 5". Its implementation will lead to a more complete and efficient combustion of the mixture with the lowest emissions and increase power with less fuel consumption and noise levels. Requirement of "KAMAZ" in gear head TNVD in 2015 will be The share of production of JSC "Borisov plant "Autogydrousilitel“ in the total amount of gear head TNVD will be 80%. The share of exports of the gear head TNVD manufactured by JSC "Borisov plant" Autogydrousilitel "is 100%.

Name Total value, rub. RF including domesticforeign Metal roll467,50 Cast iron and luminum castings Bearings302,80 Metal wares10222,479,6 Total2 101,322,42 078,9 Ramp up local content Composition of gear head TNVD Price of gear head TNVD is rub. RF. Ramp up local content is 57%.

We invite investors for cooperation in field of making co producing of the reducer gear drive TNVD For all question please call:  Chief engineer -1st Deputy of General Director Michail Muraveinikov tel. ( ) ;  Deputy of General Director – Commercial Director Yuri Komadei tel. ( ) ;  Deputy of General Director – Economic Director Yuri Komadei tel. ( )