1. 2012 Investment project of OSB production in Buj of Kostroma region

2. Project description 2 Project target is construction of OSB production plant in Buj (Kostroma region) with annual capacity of 400 thousand cub. m using modern technologies and equipment. Planning period is 8 years. Start of production is scheduled for the 1 st quarter of the third year, reaching for the production capacities – for the 6 th year of project realization. Investment project production plan involves production of board with thickness from 6 to 40 mm of basic format of 1 250*2 500 mm. Annual volume of raw materials consumption is 440 thousand m 3 for the capacity of 200 thousand m 3 and 880 thousand m 3 for the capacity of 400 thousand m 3. Raw materials are partially prepared at the own timber production, partially – are purchased from indirect logging enterprises. Project value - 5 470 000 thousand RUR (excluding VAT) Financial sources: - 20 % of own funds; - 80 % of borrowed funds.

3. - favourable investment climate; - advantageous geographical location; - availability of transit transport network; - low level of social conflicts. Location 3

4. Production capacity – 400 m 3 of boards per year Total number of workers - 366 Average salary – от 26,7 тыс. рублей Payback period – 6 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

5. Indicator With privileges, thousand roubles Without privileges, thousand roubles Revenue (excluding VAT)22 733 409,60 Paid for suppliers and employees8 830 309,37 EBITDA13 903 100,23 Depreciation2 639 334,11 Paid taxes2 041 628,772 552 550,75 Interests on loans1 735 167,78 Net profit7 486 969,586 976 047,60 NPV 2 058 529,70 1 748 544,45 IRR, % 23,9521,88 Project economic efficiency during planning period Project efficiency indicators 5

6. Indicator With privileges, thousand roubles Without privileges, thousand roubles Federal budget, including1 831 822,81 823 450,71 VAT 1 649 049,52 Profit tax 182 773,28174 401,19 Regional budget, including1 665 819,792 185 113,89 Profit tax 1 468 921,21 569 610,71 PIT 63 999,0 Property tax 132 899,59551 504,18 Municipal budget, including45 428,2 PIT 27 428,2 Land tax 18 000 Social payments239 034,67 Total 3 782 105,464 293 027,47 Project budgetary efficiency Project efficiency indicators 6