1. Privatization in Uzbekistan
Mr. DAVRON A. KHIDOYATOV
Chairman
State Competition Committee
Republic of Uzbekistan

2. BILATERAL RELATIONS February 1992 –diplomatic relations established
Uzbek-British Trade and Industry Council initiated as an effective mechanism of trade-economic relations
2002 – International Westminster University opens in Tashkent
A number of projects implemented with British partners (exploration and extraction of hydrocarbons and polymetallic ores, tobacco, pharmaceutical industry and etc.)
437 companies with British capital are operating in various sectors of Uzbek economy
More than 100 companies with British capital registered in Uzbekistan (mining, production of food and drinks, tobacco products, building materials, light industry, telecom services, agricultural processing, leasing, consulting, insurance services etc.)
Consistent development of cultural and humanitarian cooperation, including educational sphere 2

3. PRIVATIZATION TRENDS IN UZBEKISTAN (2011-2015)

4. PRIVATIZATION IN UZBEKISTAN
Uzbekistan was the first in CIS to introduce the notion of “private property” in its legislation (Law “On ownership” adopted in 1990)
Revision of the results of privatization is not allowed by law
Uzbekistan takes gradual approach to privatization (adopts biannual privatization programs)
Privatization is a principal economic policy in Uzbekistan applied to boost private sector
BRIEF STATS ON PRIVATIZATION IN UZBEKISTAN:
Housing fund – fully privatized by 1993
More than 31,000 legal entities transferred to private ownership
New class of owners evolved = over 1,0 mln shareholders
State remains the owner only in strategic sectors: mineral resources, natural monopolies and socially important entities (less than 500 companies overall) 1

5. WHY INVEST IN UZBEKISTAN
8% GDP growth each year over the last decade
progressive infrastructure and qualified labor
lowest costs of running a business in Central Asia
60+ Universities, 300K+ degree holders per year
GLOBAL BRANDS
PROVEN BY
SAVVY INVESTOR’S BEST CHOICE
57th in global prosperity index by Legatum Institute
in the top 10 of “doing business” reforms
among top-5 fastest growing economies in the world
16 points up in 2015 Doing business report
success stories by global brands , operating in Uzbekistan
abundant resource base (global top 10 reserves in minerals and more)
favorable investment climate
tax incentives and other preferences 2

6. WHY INVEST IN UZBEKISTAN Indicators of the banking sector
2015
Capital adequacy ratio
On average 23,6% (Central bank requirement 10%, and Basel recommendation – 8%)
Liquidity ratio
On average 64,5% (two times more than int’l requirement)
Non-performing loans
Less than 1,0% (of total loans volume)
Real GDP growth rates (%, YOY) 3

7. OTHER PRIVELEGES AND PREFERENCES1
Infrastructure connection costs are covered by the State for Investment Projects worth more than USD 50 mln where Foreign Investor holds at least 50% 2
Certain facilities are sold for “zero” price on terms of undertaking investment liabilities 3
Payment period prolonged up to 24 months when state-owned assets are privatized 4
If payment is made within 1 month, Investor is granted with a 9% discount 5
Assets can be sold in parts at the investor’s request

8. LATEST DEVELOPMENTS IN CORPORATE GOVERNANCE IN UZBEKISTAN
КОРПОРАТИВНОЕ УПРАВЛЕНИЕ
Corporate governance Code adopted by SOEs in 2016;
Development strategies for medium and long term periods are to be approved by SOEs with focus on market efficiency, profitability, dividend yield and etc;
Evaluation of management’s performance based on KPI in every SOE;
Competitive member selection for SOE boards, audit committees and other governing bodies;
Transition of joint-stock companies to IFRS and International Auditing Standards;
Promoting the application of ICT when holding corporate actions (SMS and notification of shareholders, automated vote counting, videoconferencing, etc.);
Ongoing independent monitoring of compliance with Corporate Governance Code and KPI results

9. open for investment FEATURED INVESTMENT PROPOSALS IPAK “SHARK”
and more
Electrical
Engineering
Industry
Services
Constructions sphere
Chemical
Industry
IPAK “SHARK”
JSC “NavoiAzot”
JV LLC «Ipak Yo’li – Turizm Invest»
JSC “Kokand Superphosphate Plant”
JSC «ONIX»
JSC “FerganaAzot”
JSC «CHIRCHIC ELECTRIC TRANSFORMER PLANT»
JSC “URGENCH EXCAVATOR” 8

10. Offered Stocks Package: 49 percent
FEATURED PROPOSAL
Number 1 manufacturer of mineral fertilizers in Uzbekistan and the Central Asia
JSC “NavoiAzot”
Offered Stocks Package: 49 percent
Characteristics
Data
Type of Activity
Production of Mineral Fertilizers, Chemical Agents, Small-Capacity Chemistry
Number of Personnel
persons
Territory
895,6 hectares
Net Revenues
$ 252,7 million
Production Capacity
ammonia (550 thous. tons), nitric acid (870 thous. tons), ammonia nitrate thous. tons (950 thous. tons), other fertilizers (200 thous. tons), chemical agents (52 thous. tons), and other chemical products (102 thous. tons)
Market Share
80 percent
According to the Investment Program, during 2015 – 2019 at JSC “NavoiAzot” implementation of projects for the total amount of $1,8 billion is planned 9

11. Offered Stocks Package: 75 percent
FEATURED PROPOSAL
Leading manufacturer of glass items in Uzbekistan and the Central Asia. Located in Fergana region
Offered Stocks Package: 75 percent
Characteristics
Data
Type of Activity
Output of Glass Items
Number of Personnel
2097 persons
Territory
50,6 hectares
Net Revenues
$ 60,5 million
Production Capacity
130 thous. tons
Market Share
99 percent 11

12. Offered Stocks Package: 36 percent
FEATURED PROPOSAL
Leading manufacturer of cement in Uzbekistan and the Central Asia. Located in Navoiy Region
Offered Stocks Package: 36 percent
Characteristics
Data
Type of Activity
Production of Cement
Number of Personnel
3 497 persons
Territory
1,3 thous. hectares
Net Revenues
$ 397,5 million
Production Capacity
tons
Market Share
55 percent 12

13. Offered Stocks Package: 63,1 percent
FEATURED PROPOSAL
One of the largest banks in Uzbekistan, located in Tashkent City, possesses the developed affiliated branches in the Regions
Offered Stocks Package: 63,1 percent
Characteristics
Data
Type of Activity
Banking Activity
Number of Personnel
70 persons
Territory
2,9 hectares
Net Revenues
$ 62,3 million
Attainments
Awarded by positive rating score by “Moody’s”, “Standard & Poor’s” and other Agencies
Net income
Over $8.7 mln 15

14. Offered Stocks Package: 47,6 percent
FEATURED PROPOSAL
One of the banks in Uzbekistan, located in Tashkent City, possesses the developed affiliated branches in the regions
Offered Stocks Package: 47,6 percent
Characteristics
Data
Number of employees
1010
Total assets
$ million
Net Revenues
$ 57.8 million
Net Income
over $ 7.4 million
Attainments
Awarded by positive rating score by “Moody’s” and other Agencies 16

15. Offered Stocks Package: 29.9 percent
FEATURED PROPOSAL
The largest Business Center of Uzbekistan, located in the center of Tashkent City
Offered Stocks Package: 29.9 percent
Characteristics
Data
Type of Activity
Lease of Office and other room spaces
Number of Personnel
70 persons
Territory
3,6 hectares
Space under the roof
8,2 thous. sq. ms
Net Revenues
$ 5,4 million
Occupancy rate
85 percent 17

16. JV LLC «Ipak Yo’li – Turizm Invest»
FEATURED PROPOSAL
JV LLC «Ipak Yo’li – Turizm Invest»
One of the best hotels of Uzbekistan, located in the center of Tashkent City
Offered Stocks Package: 39 percent
Characteristics
Data
Type of Activity
Hotel services
Territory
11.8 thous. sq. ms
Office and rooms area
20 thous. sq.m.
Number of rooms
206
Net Revenues
$ 6.1 million
206, including 100 standard, 98 semi-suits, 2 suits and 1 Presidential Suit, 5 apartments
Infrastructure
Restaurant, café, confectioner's shop, four conference-halls, banquet hall for 750 seats 18

17. Angren Logistika Markazi
FEATURED PROPOSAL
Angren Logistika Markazi
One of the largest logistics hubs of Uzbekistan, located in Tashkent Region
Offered Stocks Package: 49 percent
Characteristics
Data
Type of Activity
Loading-unloading, transportation and forwarding services
Number of Personnel
1604 persons
Territory
36.9 hectares
Net Revenues
$ 30,2 million
Market Share
100 percent 14

18. ADDITIONAL INFO ON PRIVATISATION ASSETS 20

19. ADDITIONAL INFO ON THE ASSETS OFFERED FOR SALE 21

20. Thank you for your kind attention!
55, Uzbekistan Avenue, Tashkent, Republic of Uzbekistan,
Tel:( )
Fax:  ( )