#1Republic of Tatarstan INVEST TATARSTAN Tida Tatarstan Investment Development Agency#2Why invest in Tatarstan? Tatarstan is Developed market World-class infrastructure Tax preferences Highly-qualified employees Open dialogue with government Tatarstan Investment Development Agency Tida#3Who are Tatarstan's investors today? • 1A ranking from Expert RA (maximum potential, minimal risk) • Most attractive region in Russia for Investment (Russo-German chamber of commerce, 2012) • Best region for doing business (Forbes, 2011) Foreign Investment (mln USD) Foreign Investment by country (2013) Foreign Investment Foreign Direct Investment Turkey 24,5% Germany 22,0% USA 18,8% 894 Netherlands 15,8% 857 736 UK 11,6% 577 Cyprus 3,5% 408 France 12,2% Seychelles 0.6% 99 Czech Rep. 0,5% Other 2011 2012 2013 0,5% Tatarstan Investment Development Agency Tida#4Can I get a large market? 7 of 11 largest cities in Russia and more than 50% of country's population lie within 1000 km of Tatarstan Nizhny Novgorod Moscow 1000 km Yelabuga Perm Yekaterinburg Kazan Naberezhnye Chelny Nizhnekamsk Tatarstan Almetyevsk Samara Chelyabinsk Ufa Tatarstan Investment Development Agency Tida#5Can I export & import? • Russia's ascension to World Trade Organization opening new possibilities 50% of Tatarstan's industrial output is sold as exports (90% of export is to WTO countries) Tatarstan Export Corporation Established in 2013 Tatarstan's foreign trade turnover (bln USD) Export composition by product (2013) ■Import Export 5.0 3.3 3.8 Crude oil Oil products Machinery & transport 44,5% 31,9% 8,1% 2.6 vehicles Synthetic rubber 6,6% 21.9 21.3 Plastics & plastic 22.1 2,1% products 17 Tires 10,7% Other 6,1% 2010 2011 2012 2013 Tatarstan Investment Development Agency Tida#6Ford Motor Company In 2012 FORD MOTOR COMPANY started production in Tatarstan. • $800 mln. invested 2500 jobs created The plant produces Ford Explorer, Ford Kuga, Ford Transit, Ford Tourneo Custom. In 2013 FORD MOTOR COMPANY sold more than 106,000 cars in Russia. Ford "Tatarstan is one of the most effective examples of public- private partnership that I have ever come across in the world." Alan Mulally General Director Ford Motor Company Russia Tatarstan Ford Tatarstan Investment Development Agency Tida#7Why invest in Tatarstan? Tatarstan is Developed market World-class infrastructure Tax preferences Highly-qualified employees Open dialogue with government Tatarstan Investment Development Agency Tida#8Can I get access to my clients? Strategic location enhanced with developed logistics system • • 2 international airports 5 navigable ports • 32,900 km of roads • 1,889 km of railway • 3 A-class logistic complexes Tet'ushy ₹ Kazan Bulgar Yelabuga Nizhnekamsk Chistopol Naberezhnye Chelny Almetyevsk Tatarstan Investment Development Agency Tida#9Any future transport opportunity? Interregional Multimodal Logistic Center in Sviyazhsk Total area 193 Ha Private investors $ 280 mln. Total investments $ 550 mln. • Rail-road terminal with warehouses and container yard River port with a water-truck terminal . Access tracks and roads Loading and unloading areas • Service facilities Tatarstan Investment Development Agency Tida#10Hayat Holding kastamonu HAYAT ESTIGE ASAS VTCASEINEGED FORSYNOUS UND TRADE In 2014 KASTAMONU ENTEGRE, a subsidiary of HAYAT HOLDING, started manufacturing of MDF panels in Tatarstan. . $300 mln. invested • 235 jobs created • 475, 000 cubic meters of MDF panels 20 million square meters of flooring per year "There was no country around the world where we were provided such opportunities. and support as we got in Tatarstan." Yahya Kigili President, Hayat Holding Tatarstan Investment Development Agency kastam Tida#11Where can I set up my business? Range of industrial, business, and high tech parks make entering hassle-free M Polymers processing, metals, engineering, building materials TECHNOPOLIS HIMGRAD it Two high tech IT parks Small scale chemistry and polymer conversions park RUSEZ® Special Economic Zones ИННОВАЦИОННЫЙ TEX HOПAPK ИДЕЯ R&D, nanotechnology center Zelenodolsk Kazan Chistopol SMART CITY KAZAN High technology, medicine, education, tourism INNOPOLIS High technology & IT Agro-Industrial Park Agricultural products processing, storage and sale Yelabuga Nizhnekamsk Special Economic Zone Alabuga for industrial production Naberezhnye Chelny MACTEP ОАО КАМСКИЙ ИНДУСТРИАЛЬНЫЙ ПАРК Machine building INDUSTRIAL PARK IDCHELNY Industrial Park "Chistopol❞ Kamskiye Polyany Industrial Park Polymers conversion Tatarstan Investment Development Agency Tida#12Haier In 2015 HAIER will start producing refrigerators in Kama Industrial Park MASTER. Investments: $ 60 mln. Jobs: 400 "From the first moment upon arrival to Tatarstan, you`ll realize that government are interested in the development of the region. There are highly-skilled employees, no administrative barriers and clear system of tax preferences." Lyudmila Romanova CEO, Haier Russia Haier Tatarstan Investment Development Agency Tida#13Why invest in Tatarstan? Tatarstan is Developed market World-class infrastructure Tax preferences Highly-qualified employees Open dialogue with government Tatarstan Investment Development Agency Tida#14Which tax preferences can I get? • ● • • Special economic zone for industrial production "Alabuga" 44 residents 4500 job created 1.14 billion USD Already invested 2000 ha. (2005) + 2000 new ha. Range of preferences • Corporate tax 20% 2% • Transport tax 0.3-3.8 USD 0 USD per Horsepower • Land Tax 1.5% 0% Property Tax 2.2% 0% • Free customs zone • Ambitions goals: 120 residents, 12.4 billion USD invested by 2020 Tatarstan Investment Development Agency Tida#15More tax preferences? Special Economic Zone Innopolis for High Technology (2012) SEZ land split between two priority projects in Greater Kazan area • 192 ha. In Innopolis 102 ha. In Kazan Smart City Range of preferences 20% 13.5% -30% 14% INNOPOLIS 0.3-3.8 USD 0 USD per Horsepower • Corporate tax • Social insurance contributions • Transport tax • Land Tax . Property Tax Single window for residents • Free customs zone 1.5% 0% 2.2% 0% Kazan SMART CITY KAZAN Tatarstan Investment Development Agency Tida#16Rockwool ROCKWOOL In 2012 ROCKWOOL constructed mineral wool producing plant in the Special Economic Zone "Alabuga" • $150 mln. invested • 270 jobs created • Largest mineral wool producing plant in the world The production output is 110,000 tons per year "I have never in my life met any administration anywhere in the world that is so business-oriented and professional towards its investors." Elko van Heel President, Rockwool Int. Tatarstan Investment Development Agency Tida#17Why invest in Tatarstan? Tatarstan is Developed market World-class infrastructure Tax preferences Highly-qualified employees Open dialogue with government Tatarstan Investment Development Agency Tida#18What about workforce? Crucial role of HR in economic prosperity of Tatarstan • • • • 2,050,876 economically active population 4.1% unemployment rate ~230,000 students 26,012 RUB (622 USD) average monthly salary Tatarstan Investment Development Agency Tida#19Kiekert In 2014 KIEKERT started manufacturing of door handle latches in Tatarstan. • $20 mln. invested 60 jobs created kiekert "We are very happy with our decision to localize here. We encourage you to look at Tatarstan! The Tatarstan Investment Development Agency (TIDA) has provided support beyond our expectations" Juergen Peulen Vice President, Kiekert kiekert Tatarstan Investment Development Agency Tida#20Why invest in Tatarstan? Tatarstan is Developed market World-class infrastructure Tax preferences Highly-qualified employees Open dialogue with government Tatarstan Investment Development Agency Tida#21Who can support me? Tatarstan Investment Development Agency - One Stop Center for Investment Tida Tatarstan Investment Development Agency · • • Providing information and statistics Facilitating site selection process and determining project requirements Supporting the entry and establishment of foreign business in Tatarstan • Promoting public-private partnership Tatarstan Investment Development Agency Tida#22"We encourage you to look at Tatarstan!" - Juergen Peulen #InvestInTatarstan Juergen Peulen Vice President KIEKERT Ford kiekert ROCKWOOL® Marriott AIR LIQUIDE Honeywell HAYAT Hygiene Technologies Smarter Systems for Cleaning DAIMLER SARIAⓇ 3M SIEMENS ibis Wienerberger HOTELS flydubai Cummins Haier du kastamonu ESTIGE SAVE CASINGURED FORESTRYNASTRADE YOKOGAWA FUJITSU Tatarstan Investment Development Agency Tida