Kaluga region Investment profile

1. Kaluga region Investment profile 2010

2. Content • Kaluga Region Profile • Kaluga Region Development Strategy • Advantages for investors

3. Advantageous geographic location EU Russia Kazakhstan China Mongolia Population density, residents per km² < < ~20 mln. residents in 150 km vicinity from Kaluga Region

4. Kaluga region: key facts Manufacturing and transport – main parts of GRP Significant growth of wealth since 2005 Key facts Structure of Gross Regional Product, 2009 Monthly average salary, $ Share of population below poverty line, %

5. Foreign investments Foreign investments volume in the Kaluga region, bln. $

6. Industrial parks Industrial parks key facts Industrial parks location • Total area for industrial construction – 2 615 hectares • Allocated area as of June 2009 – 1200 hectares • Planned amount of new jobs: 26 000 • Planned amount of direct investments till 2012 – 6,5 bln $ • Total Kaluga Region spending for industrial parks development – • 330 mln $ • Infrastructure: • natural gas • electric power • water supply • sewage capacity • 6 mln. tons of freight traffic annually Vorsino A-park Grabtsevo Obninsk Detchino Kaluga Kaluga-Yug Rosva Lemkon Private Industrial Park

7. They’ve already chosen us! 7

8. Number of industrial parks successful examples Company Industrial park Investments Period Manufacturing

9. Federal Government highly appreciates Kaluga Region’s economy success “Kaluga Region is a very good example how to set up newindustrial centers, actively implement state-of-the-art technologies .... from scratch” “There is no doubt that Kaluga is a very good example of collaboration with investors” “Kaluga Region government make everything possible forinvestors’ convenience” Vladimir Putin, Prime Minister of Russian Federation (2009)

10. Content • Kaluga Region Profile • Kaluga Region Development Strategy • Advantages for investors

11. The basis of the economic policy of the region: cluster’s forming Bio-technologies and pharmaceutics cluster Nuclear medicine cluster Auto cluster Creation of the nuclear medicine center in Obninsk.

12. The Stages of auto-cluster’s development in Kaluga Region R&D 1 • Develop network of Research & Development centers with automotive focus Distribution OEM • Become major auto components logistics center in Russia 5 • Become №2automobile manufacturing region in Russia till 2015 4 Components • Become №1 auto components cluster in Russia 2 3 • Set leading in Central Russia training center for professionals with automotive focus

13. Content • Kaluga Region Profile • Kaluga Region Development Strategy • Advantages for investors

14. There are 5 reasons why to invest in Kaluga Region Good location and transport infrastructure Advanced labor market Proactive philosophy for investors support Active investments support Policy Great team of professionals 1 2 “What gives us confidence in our strategy feasibility?” “Why leading companies invest in Kaluga Region?” 3 4 5

15. Good location and transport infrastructure • Well developed highway network • Kiev highway (connection with Ukraine) • Kaluga highway (connection with Belarus) • Big Concrete Ring (Moscow region) • Well developed railway network • Big Moscow Ring Railway Road • Railway road between Moscow and Kiev • Network of container terminals under active development • Proximity to Moscow region • Good connection with Central Federal Area Regions • Concentrated production facilities in industrial park areas Moscow Region Vorsino Railway station Obninsk Railway station Kaluga Region Perspektivnaya Railway station Vorotynsk Railway station Container terminals (both active and under construction) Logistic centers Coverage area Highways c Railway lines Main logistics centers Moscow economic region Area for container terminal construction Kaluga region border

16. Advanced labor market Proximity of Moscow region Developed network of educational institutions Population of adjacent to Kaluga regions • In 28 institutes of higher education • 39 000 students • In 26 specialized secondary education centers • 14 000 students • Training center for professionals with automotive focus • ~2 000 professionals get training annually ~17 000 000 residents live in adjacent Moscow Region

17. Investors support system

18. Active investments support policy Resources and approach Tax preferences • Industrial parks – clear productfor investors • “Step ahead”approach in engineering and logistics infrastructure development • Support through regional development organizations: Kaluga Region Development Corporation and Agency of Regional Development • Federal resource: Investment Fund, Vneshekonombank • «А-Park» -new possibilities for small and medium-sized enterprisesof the automotive industry and logistic companies Scale of investments, bln. RUR 0% property tax period, years (2,2% w/o preferences) 15.5% profit tax period, years (20% w/o preferences)

19. Contact information • Government Authorities of the Kaluga Region • Administration of the Governor of the Kaluga Region • Tel: +7 4842 778431, Fax: +7 4842 531309 • Web: http://www.admobl.kaluga.ru • Kaluga Regional Government Office (Moscow) (Official connections) under the Government of Russian Federation • Tel/fax: +7 499 2416636 • E-mail: predstav@adm.kaluga.ru • Regional Development Agency for Kaluga Region (Investment projects) • under the Ministry for Economic Development Tel: +7 4842 762700, Fax: +7 4842 762701 ext. 18 • E-mail: rda@kaluga.ru Web: http://arrko.ru/en/ • Kaluga Region Development Corporation (Industrial parks) • under the Ministry for Economic Development Tel/fax: +7 4842 790410 • E-mail: kalugacorp@gmail.com Web: http://invest.kaluga.ru/en/