1. Investment presentation Penza Region 1

2. Brief information about Penza region 2 2 2 Area: 43,3 thousand sq.km. The Penza region is located in the European part of Russia 625 km to the South-East of Moscow Population of Penza: 507 thousand people Population: 1.4 mln. people. Labor resources: 859 thousand people Penza Moscow St. Petersburg Finland Turkey Ukraine Belarus Spain France UK Ireland Germany Italy Poland Rumania Sweden Norway Bulgaria Kazakhstan Denmark

3. Transport accessibility 3 3 3 The territory of the region is crossed by more than 15 international air routes, and 5 domestic air routes. Direct flight Moscow-Penza 1 hour By train - 1 night trip Automobile transport routes : - federal highway М 5 «Moscow-Chelyabinsk»; - highway R 209 «Penza-Tambov»; - highway R 158 «Nizhny Novgorod – Saratov»; - Kuibyshev and South-Eastern Railways, providing communication with the regions of Russia and CIS countries; - International transport corridors (the Eurasian transport corridor, the Transsib, the North-South corridor, which is connected with transport corridor №9).

4. Mineral resources base of the Penza region 4 4 4 Минерально-сырьевая база Пензенской области Clays(brick-tile, ceramsite, high-melting) Diatomites Sands(building, quartz, glauconitic, molding) Concrete raw materials Peat(incl. peat therapeutic muds) Fresh underground water (including mineral water) Mineral colours Building stones Zeolite-containing rocks

5. Key economic development of the Penza region 5 Gross regional product, billion $ In the GRP structure the main part take industry – 28%, wholesale and retail trade – 16%, agriculture – 10%, construction – 7%.

6. 6 Industry: instrument-making industry and auto components Sale products geography In 2012 there were produced auto components at the amount of more than 50 million US dollars for home- produced cars and for car brands Renault и Nissan Industrial production The Penza instrument cluster produces a wide range of products, almost of all segments of the instrument- making industry More than 3 thousand enterprises 23% of all employees 40 % from taxes paid by region into consolidated budget of the Russian Federation 29% Gross Regional Product (2012) Medicine and healthcare service Petroleum chemistry Carbon extraction Telecommunication Software and computers Nuclear and space industry Railway and car industry Construction and housing and public utilities Machine-building industry Energy Sector Agriculture Defense Industry 6

7. Investment potential of the Penza region 7 Foreign investments, mln $ Investment attractiveness (according to Fitch Ratings) Long term ratings on national scale (2012г.) AA- Credit rating of the Penza region (2012г.) * according to Expert RA BB Estimate on ratings stable

8. 8 Investment attractiveness of the Penza region 8

9. Investment potential of the Penza region 9 Tax privileges on regional taxes: -Profit tax (reduced from 20% to 16%); -Property tax (reduced to 0%); -Transport tax (reduced to 0%). Preferences: -Compensation of Central Bank’s discount rate for credits and leasing; -Penza Region’s Governor Patronage Certificate; -Assistance with infrastructure provision. Possible partners: - Agro Holding; - Development Corporation; - Direct Investment Foundation

10. Perspective investment agricultural projects 10 Pig farm Location - Kamenskiy district Final product – pork Area – 916 ha Dairy farm Location – 3 possible sites Final product – milk, milk products Agro-industrial Park «Serdobsky» Area - 400 ha Food processing Advantages Developed infrastructure Qualified labour resources Housing for young specialists Government support

11. 11 Agricultural Academy Targeted educational programmes 4500 enrolled students 600 graduates every year Scientific Research Center Exchange programmes with universities in Germany, Italy, USA etc. Close cooperation with local companies High workforce capacity

12. Investment potential of the Penza region 12 TREIGmbH (Germany, production of controllers) TechnocellDecorGmbh (Germany, paper production –basis for facing materials) Wärtsilä (Finland, diesel production) Sucden (France, sugar production) Çalkan Group (Turkey, meat processing) Olam International (Singapore, dairy livestock breeding) Grain Company, (Sweden) TrigonArgi (Denmark, dairy livestock breeding) 46 enterprises with foreign investment capital work in the Penza region:

13. Thank you for attention! Government of the Penza region 75, Moskovskaya str., Penza, Russia, 440025 phone/fax: +7 (8412) 593131 e-mail: info@mipenza.ru www.penza.ru Penza Region Development Corporation 36a, Kuraeva Str., Penza, Russia, 440600 phone/fax: +7 (8412)680837 e-mail: info@krpo.ru www.krpo.ru You are welcome to Penza region! 13