2012 Investment project of wasteless timber processing production in Vokhma municipal district

Brief information about the project 2 Project target – the construction of the enterprise of the closed production cycle: timber harvesting – sawmilling – processing of wood waste. Wood harvesting is planned to be set in Vokhma and Oktyabrsky municipal districts of the Kostroma region. Planning period - 8 years. Start of production is scheduled for the first year of project realization. Production plan of the investment project includes the following products: coniferous edging board; boards; birch edging board; aspen edging board; deciduous sawlog; firewood; fuel granules. Project value – ,75 thousand roubles (excluding VAT) Financial sources: 100% of credit resources

Location 3 For project realization there is an investment site with objects of real estate and some equipment

Annual logging volume for project realization – m 3 Personnel – 150 workers Average salary – from 26 thousand roubles Payback period – 3 years 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%. Brief information about the project Project efficiency indicators 4

Indicator With privileges, thousand roubles Without privileges, thousand roubles Revenue (excluding VAT) ,72 Paid for suppliers and employees ,40 EBITDA ,32 Depreciation ,72 Paid taxes , ,85 Interests on loans ,17 Net profit , ,58 NPV , ,79 IRR, % 26,1525,14 Project economic efficiency Project efficiency indicators 5

Indicator With privileges, thousand roubles Without privileges, thousand roubles Federal budget, including , ,16 VAT ,4 Profit tax , ,76 Regional budget, including , ,2 Profit tax , ,88 PIT ,32 Property tax , Municipal budget, including18 734,69 PIT ,99 Land tax 937,7 Social payments ,5 Total , ,55 Project budgetary efficiency Project efficiency indicators 6