1. Invest Armenia Ashot Khudgaryan, Investment Promotion Officer Development Foundation of Armenia 2015

2. Independence: 21 September 1991 Area:29,743 sq. km Population: 3.01 million Official Language:Armenian Working Language:English, Russian Membership in: UN, Eurasian Economic Union, Council of Europe, WTO, CIS, OSCE Highlights: Diaspora : 7mln 2 international airports: Zvartnots International Airport, Shirak International Airport Located at the crossroads of Europe and Asia Currency: Armenian Dram: 1AMD = 0.0021USD 9th safest country (2015 Gallup Law and Order Index ) Country Profile Source: ArmStat, GALLUP

3. 2014 Data Gross Domestic Product (USD billion) 10.8 Gross Domestic Product real growth, % 3.5 Inflation (year-end)3.0 Investment (USD million)839.7 incl. FDI (USD million)350.0 Exports FOB (USD million)1547.3 Imports CIF (USD million)4424.4 Macroeconomic Data 2014 GDP Breakdown Source: ArmStat

4. Export Structure by ProductsExport Structure by Countries Export volume – $1,518 bn. 2014 Export Statistics Source: ArmStat

5. Import Structure by ProductsImport Structure by Countries Import volume – $4,401 bn. 2014 Import Statistics Source: ArmStat

6. No.Country% 1Russian Federation73.54 2Germany5.66 3Uk4.03 4Lebanon3.43 5Luxembourg3.31 6Switzerland2.78 7France2.22 8Argentina1.92 9Ireland1.65 10Other1.46 FDI inflow in 2014 No.Sector% 1 Electricity, gas, steam and air supply 71.19 2Beverages7.41 3Telecommunication5.22 4Mining4.87 5Real Estate3.13 6Construction1.86 7IT1.84 8 Plant and animal breeding 1.37 9Accommodation0.93 10Other2.18 2014 FDI inflow : 349,986,300 USD Source: MinEconomy

7. Agriculture Watch Making, Jewelry & Diamonds IT & Innovation Tourism & Aviation Life Sciences Renewable Energy Key Sectors

8. Armenia in the EEU Rank in the World (1-best, 185 – worst) Ease of Doing Business (Doing Business by World Bank ) Economic Freedom (Heritage Foundation) Corruption Perception Index (Transparency International) Armenia355294 Kazakhstan4169126 Belarus44153119 Russia51143136 Kyrgyzstan6782136 Source: Doing Business, Heritage Foundation, Transparency International

9. FDI in Armenia

10. Land Purchase20-100$ per m 2 Land Rent50$ per m 2 annually Office Purchase700-3500$ per m 2 for a prime location Office RentStarting from 20$ per m 2 for a prime location Construction Costs300-500$ per m2 of construction Electricity Supply0.08 $ Kw/hr Water Supply0.35 $/m 3 Gas Supply 328.42$/1000m 3 (up to 10,000m 3 consumption per month) 276.98$/1000m 3 (over 10,000m 3 consumption per month) Main Business Cost Components Unskilled Worker Year Salary3000 USD Semi-skilled Worker Year Salary5100 USD Skilled Worker Year Salary9200 USD Source: ArmStat

11. Talented, creative, easily trainable and cost efficient workforce Developed infrastructures Developed banking system according to international standards 100% ownership allowed for foreign companies “Grandfather clause” for 5 years No restrictions on investment sectors No restrictions on remittances Free repatriation of profit Free currency exchange No restrictions on staff recruitment Foreign companies, registered in Armenia have the right to buy land Existence of 2 Free economic zones: high tech and jewelry and diamond processing Special incentive schemes for investment project 35 th in the world according to the “Ease of Doing Business” ranking* 52 nd in the world according to the “Economic Freedom” ranking* R&D expenses incurred during the reporting year are fully deductible from gross income Why Invest in Armenia

12. Armenia is a member of: WTO Eurasian Economic Union with Russia, Kazakhstan, Belarus and Kyrgyzstan, -> access to market of 182.1 million GSP regime with USA, Canada, Japan, Norway and Switzerland GSP+ regime with EU: 7,200 made in Armenia products can be exported to EU without customs duties. International Agreements: Free Trade Agreements with CIS countries: Ukraine, Moldova, Tajikistan, Turkmenistan and Georgia. MFN regime with all WTO members TIFA Agreement with the US Trade Regimes of Armenia

13. The law “On Foreign Investments” provides guarantees for national treatment and non-discrimination for foreign investors. Bilateral Investment Treaties on Reciprocal Promotion and Protection of FDI with 41 countries – Argentina, Austria, Belarus, Belgium-Luxemburg, Bulgaria, Canada, China, Cyprus, Egypt, Finland, France, Georgia, Germany, Greece, India, Iran, Iraq, Israel, Italy, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Netherlands, Qatar, Romania, Russian Federation, Sweden, Switzerland, Syria, Tajikistan, Turkmenistan, Ukraine, UAE, United Kingdom of Great Britain and Northern Ireland, Uruguay, USA, Vietnam. Armenia has signed Double Taxation Treaties with 43 countries FDI Protection & International Treaties

14. Taxes VАТ20% Profit Tax20% Income Tax24.4% - 26%, after 4200$ - 36% Export Duty0% Simplified Taxation for SMEs Taxation -Armenia has the lowest tax rate of commercial profits in the CIS Armenia - 19.9%, World average – 40.8%, Europe average– 43.6%) -Tax privileges for IT start-ups -Tax exemptions for activities conducted at border zones.

15. Up to 30 % of profit tax reduction on the investment projects approved by the Government of RA, compensating the salaries of new jobs created for the current and 2 subsequent fiscal years. VAT payment at importation could be delayed for certain goods under specified codes: 1) for One year starting from the day of declaration of imported goods if their customs value is less than 70 million AMD 2) for Two years starting from the day of declaration of imported goods if their customs value is 70 million AMD or more 3) for Three years starting from the day of declaration of imported goods if their customs value is more than 300 million AMD. For other goods the importation cost of which exceeds 200 million AMD, VAT payment is delayed for three years. Tax Privileges

16. Tax privileges are granted to large exporters. Large exporters can be taxed at the following rates: - 5% profit tax, if the sum of the exported goods and services makes more than 40 billion AMD - 2% profit tax, if the sum of the exported goods and services makes more than 50 billion AMD If they satisfy all the following conditions: -Sum of exported goods and services, but no mineral materials, precious metals and stones or products subject to excise tax, must make a minimum of 40 billion AMD -The company must have no income from sales of products or providing services on the RA territory Tax Privileges

17. High-tech oriented FEZ for the following sectors: Electronics & Precision Engineering Alternative Energy Pharmaceutical industry & Biotechnology IT & Telecommunication Industrial Design Production & Export Section Industrial space - 55.799 sq m Office space - 10.908 sq m R&D Section R&D space – 27.060 sq m FEZ for Jewelry Sector Development Jewelry and watches production Diamond processing and cutting Other jewelry goods and accessories production Production/Office Section - 25.450 m 2 Diamond Cutting Section – 6000 m 2 Auxiliary Area – 10.000 m 2 Exhibition Halls – 10.180 m 2 0% Privileges: Profit tax Corporate income tax Value added tax Property tax Customs duty Free Economic Zones

18. Customs Customs duties exemptions for imports of technological equipment, raw material and material from a third country for exceptional use on the territory of EEU member state within the frameworks of investment project implementation in accordance with priority activities (sectors of economy) of EEU member states. Customs Duties Export Duty0% Import Duty 0% or 10% The full list of the EEC common customs rates approved by the Eurasian Economic Union can be found by this link. http://www.eurasiancommission.org/en/act/trade/catr/ett/Pages/default.aspx http://www.eurasiancommission.org/en/act/trade/catr/ett/Pages/default.aspx The full list of the EEC common customs rate exemptions for Armenia can be found by this link. http://www.eurasiancommission.org/ru/act/trade/catr/ttr/Documents/%D0%98%D 0%97%D0%AA%D0%AF%D0%A2%D0%98%D0%AF%20%D0%A0%D0%90%20%D0%B D%D0%B0%2017.01.2016.pdf

19. Reliable partner, who provides you: Aftercare Tailored Quality Information Assistance in Company Registration and Recruitment Business Connections in Armenia Liaising with Government Institutions Development Foundation of Armenia