#1wwwwwww TITANIUM VALLEY SPECIAL ECONOMIC ZONE SPECIALISM: METALS fDi FREE ZONES OF THE YEAR 2017 fDi FREE ZONES OF THE YEAR 2017 COMMENDED FOR: NEW INVESTMENTS#2Ural Boeing MANUFACTURING SPECIAL ECONOMIC ZONES рання за титановая долина» Special economic zones in Russia are a large-scale project, aimed at development of Russian regions by attracting direct Russian and foreign investments in high-tech industries and import-substituting manufacturing. PROTECTING INVESTOR'S RIGHTS SPECIAL ECONOMIC ZONES IN RUSSIA SEZ-state project, aimed at development of Russian regions Platform <<Salda>>> Murmansk Nizhniy Tagil Direct investments in high-tech industries and import-substituting manufacturing. Legal status with tax and customs preferences 49 years-life-span of preferences (since SEZ's foundation date) 30% reduction of investor's expenses FL No 116-guarantee of investor>>s protection (Federal law No 116 from 22.07.2005) up to 120 days - registration of documents, «one-stop-shop» administrative treatment 0 euro - · connection to engineering infrastructure St. Petersburg Moglino Dubna Kaluga Zavidovo Zelenograd Lipetsk Stupino Innopolis Alabuga Togliatti QUlyanovsk North Caucasus Tourism Cluster Titanium Valley Tomsk Ekaterinburg Turquoise Katun Altai Valley 180 km Verkhnyaya Salda Platform Uktus>> Koltsovo airport 1#3A SVERDLOVSK REGION - ONE OF THE MOST ECONOMICALLY AND INDUSTRIALLY DEVELOPED REGIONS OF RUSSIA TOP 8 regions by GRP in 2017 Gross regional product by subjects of Russian Federation (Gross added value in basic prices, bln euros) MOSCOW 14 300 SAINT PETERSBURG 3 742 MOSCOW REGION 3 565 KHANTY-MANSIYSK 3 031 AUTONOMOUS DISTRICT KRASNODAR REGION 2016 SVERDLOVSK REGION 1 978 YAMALO-NENETS 1 964 AUTONOMOUS DISTRICT PROCESSING INDUSTRY IN SVERDLOVSK REGION IN 2017,% 82,8% 9,3% 8,2% 5,1% share of processing 4,8% 4,4% 2,8% 2,4% 2,2% 2% 6,6% industries in the overall structure of the region's industry 52,2% metallurgical production manufacturing of other transport vehicles and equipment manufacturing of finished metal products, except machinery and equipment food production production of other non-metallic mineral products production of chemicals and chemical products production of machinery and equipment not included in other groups repair and installation of machinery and equipment manufacturing of computers, electronic and optical products manufacturing of electrical equipment Other Volume of shipped goods of own manufacturing, of executed works and services by own forces of organizations of Sverdlovsk area (data by Sverdlovskstat) REPUBLIC OF TATARSTAN 1938 Sourse: Rosstat *Gross regional product - is a difference between release of goods and services and intermediate consumption, GRP is calculated in current basic and market prices (nominal gross regional product), as well as in comparable prices (real gross regional product) 35,8% 0% OF INDUSTRIAL PRODUCTION OF URAL FEDERAL DISTRICT IS PRODUCED IN SVERDLOVSK REGION (ACCORDING TO ROSSTAT IN 2017) 6,9 MLN DOLLARS - VOLUME OF EXPORTS FROM THE SVERDLOVSK REGION IN 2017 $3,7 MLN DOLLARS – VOLUME OF IMPORTS TO THE SVERDLOVSK REGION IN 2017 2#4SPECIAL ECONOMIC ZONE «TITANIUM VALLEY>> We create the best conditions for industrial enterprises at the border of Europe and Asia 1 out of 9 special economic zones of industrial-production type in Russia The only SEZ of industrial-production type which operates within Ural, Siberia and Far East 2 platforms: Platform «Salda» (2010), Greenfield type. Platform «Uktus» (2018), Brownfield type 345 mln euros- volume of investments declared by residents* 75 mln euros volume of investments made by residents* 133 1,5 r - amount of created jobs* mln euros - amount of taxes paid Mission of SEZ «Titanium Valley>>> PRIORITY SECTORS OF INDUSTRY Aircraft construction Titanium products Ti manufacturing OF OOOH Components and equipment for metallurgy and machinery engineering Woodworking Atif Medical equipment production Construction materials production *as of 01.01.2018 3#5PRIVILEGES FOR INVESTORS OF «TITANIUM VALLEY>>> PREFERENTIAL CUSTOMS AND TAX TREATMENT Special economic zone «Titanium valley» - is a territory with a special legal status, customs and tax preferences, and ready-to-use industrial, commercial and social infrastructure. TAX CORPORATE INCOME PROPERTY LAND TRANSPORT IMPORT DUTIES CUSTOMS VAT (ON IMPORTED GOODS) 20% 2,2% 1,5% RUSSIA From X% depends on engine power From 5% 5% From to 20% From 10% to 18% 2%* 0% 0% 0% 0% 0% TITANIUM VALLEY 2% - within 10 years from profit receipt 7% from the 11th to the 15th year of profit receipt 15,5% from the 16th year of profit receipt - 4#6ILLUSTRATION OF TAX PREFERENCES USE FOR RESIDENTS OF SEZ «TITANIUM VALLEY>>> 30 million euros Revenue per year (planned) 8 million euros 700 000 euros In SEZ In Russia «Titanium Valley>> ENTERPRISE EXAMPLE MACHINERY ENGINEERING PLANT 30 million euros - volume of investments 10 ha plot area Capital investments Payroll budget per year Taxes/ contributions ENTERPRISE EXAMPLE PLANT FOR PRODUCTION OF METAL CUTTING TOOLS 2 million euros - volume of investments 2 ha plot area Capital investments Revenue per year (planned) Payroll budget per year Taxes/ contributions 2 million euros 0,5 million euros 40 000 euros In SEZ «Titanium Valley>> In Russia Tax rate Tax sum Tax rate Tax sum Tax rate Tax sum Tax rate Tax sum Income tax 3% Property tax 0% 40 000 euros 0 euros 20% 320 000 euros 2,2% Insurance contri- 30% 210 000 euros 30% 170 000 euros 210 000 euros butions/payroll tax Income tax Property tax Insurance contri- butions/payroll tax 3% 3 000 euros 20% 20 000 euros 0% 0 euros 2,2% 11 300 euros 30% 12 000 euros 30% 12 000 euros Customs VAT 0% 0 euros 5-20% 70 000 euros* * Customs VAT 0% 0 euros 5-20% 5 400 euros* Total 250 000 euros 770 000 euros Total 15 000 euros 48 700 euros *for machine at the cost of 400 000 euros 520 000 EUROS A YEAR tax savings for resident of SEZ <<Titanium Valley>> *for machine at the cost of 30 000 euros 33 700 EUROS A YEAR tax savings for resident of SEZ «Titanium Valley>> 5#7REQUIREMENTS FOR INVESTORS II-V Danger class HOW TO BECOME A RESIDENT STEPS NECESSARY TO OBTAIN STATUS OF RESIDENT Approval of Project passport with management of SEZ «Titanium Valley>> 10 days 1 Registration of legal entity Industrial production 2 in the territory of Verkhnyaya Salda urban district Up to 10 days High-tech production 3 Business plan development 30-45 days and approval - 30-45 days Verification of documents package er From 1,7 million Euros - capital investments 4 600 000 Euro- capital investments to be done during first three years of project implementation 7 Receiving a Certificate of Resident in the Ministry of Investments and Development of Sverdlovsk region, filing an application for Expert Council 5 Expert Council Signing of a tripartite Agreement on execution of industrial and production activities 6 in the territory of SEZ 1 day during 3 days from the date of EC 5 days during 13 days from the date of signing the Agreement on execution of industrial and production activities 6#8PLATFORM SALDA». INFRASTRUCTURE. Customs checkpoint арасына тигеновая долина» ТАМОЖНЯ CUSTOMS Substation «Titan» 110/10 kV Customs inspection point Waste treatment facilities 7#9PLATFORM «SALDA». RESIDENTS' PRODUCTION FACILITIES. Production facilities of Ural Boeing Manufacturing Ural Bocing MANUFACTURING Production facilities of Tooling production Minicut Production facilities of Zibus Production project «STOD-Ural»> 8#10SEZ «TITANIUM VALLEY» PLATFORM <<SALDA>>> YEAR OF FOUNDATION - 2010 LAND AREA – 295,4 H - TYPE - GREENFIELD HA DISTANCE TO EKATERINBURG - 180 KM TO NIZHNIY TAGIL - 35 KM - PRIORITY SECTORS: Titanium products manufacturing ⚫ Components and equipment for metallurgy and machinery engineering ⚫ Construction materials production Medical equipment production • Woodworking ANCHOR RESIDENT URAL BOEING MANUFACTURING The territory of the SEZ «Titanium Valley» is located in direct proximity to the <<VSMPO-Avisma» corporation, the world leader in production and processing of titanium alloys. Company is a key supplier for Boeing, Airbus, Goodrich, Embraer, General Electric. Ural Boeing Manufacturing, a joint venture of VSMPO-Avisma and Boeing that carries out processing of titanium stampings for aviation purposes, is also located next to SEZ <<Titanium Valley». Ural Boeing MANUFACTURING Ural Booing YPARKPAN S 9#11MAP OF PLATFORM SALDA>> Railroad «Nizhniy Tagil - Alapaevsk≫ <<Titanium≫ power station, power supply up to 40 MW STOD OBJECTS OF INTERNAL INFRASTRUCTURE Gas Power supply EVRAZ VLADISLAV TETYUKHIN STREET 2,8 HA 5,5 HA SINARA- TRANSPORT MACHINES 3,6 HA MICROMET 1,9 HA OPTIMISTS STREET ZIBUS TOOLING PRODUCTION MINICUT 5 HA STEP 1,6 HA 10,4 HA 2,9 HA INFERKOM- URAL NORD BAZALT FIGEAK AERO «Titan» power station, 110 kV, 10 MW Drinking water supply MARTIN CLAPROT STREET Industrial and fire-working water supply Sewage systems LAND PLOT STATUS Boiler facility 0,9 HA URAL BOEING MANUFACTURING 5,4 HA 0,9 HA 4,2 HA Security checkpoint V.TETYUKHIN STREET 2,8 HA 0,9 HA OAK On hold Waste treatment facilities Info pavilion Parking Designed Constructed ■In operation Main entrance Highway «Nizhniy Tagil - Nizhnyaya Salda>> BOEING КОРПОРАЦИЯ Авсмпо VG ZIBUS IG АВИСМА Minicut International 10#12ANCHOR RESIDENTS OF PLATFORMS «SALDA», «UKTUS>> Ural Boeing Manufacturing Ural Boeing Manufacturing. Entrance to administrative complex UralBoeing MANUFACTURING Ural Works of Civil Aviation. Aircraft assembly shop Construction of «UWCA» aircraft assembly shop АО «Уральский узга титановая долина 11 РУСГРАД#13MORE ABOUT INVESTOR'S PROJECTS «URAL BOEING MANUFACTURING>>> Machining of stampings made of titanium alloys and used for aviation purposes. «ZIBUS»> Production of medical instruments and implants for neurosurgery with the use of titanium alloys. <<STOD>> High-technology woodworking enterprise. Production of LVL-bars and OSP-slabs. <<TOOLING PRODUCTION MINICUT≫ Production of cutting instrument Minicut, re-sharpening of end mills for machining titanium, stainless and structural steels, composite materials «MICROMET Production of powder from titanium alloys and products produced by additive manufacturing. <<<STEP>>> Manufacturing of modular transforming substations. «NORDBAZALT>>> Production of basalt composite and engineering center for basalt technologies development. «RUSMED>>> Manufacturing of disposable three-component medical syringes 12 22#14SEZ «TITANIUM VALLEY» PLATFORM «UKTUS»> YEAR OF FOUNDATION - 2018 LAND AREA - 95,7 H HA TYPE - BROWNFIELD DISTANCE TO EKATERINBURG - 15 KM ADVANTAGES PRIORITY SECTORS Production of structural elements for aircraft construction Assembly of subunits for aircraft construction High-tech production Runway on the border with the SEZ (within «Uktus»> airport) 18 International airport «Koltsovo» is in 18 km KM to the SEZ Ready-to-use production premises of different size ANCHOR RESIDENT - URAL WORKS OF CIVIL AVIATION UWCA project is a center of aviation cluster, evolving in the platform «Uktus». Production of aviation vehicles: plane «L-410», plane «Diamond DA42T», «Bell 407GXP» helicopters, Airbus helicopters, unmanned aircrafts «Forpost» Vera 1353#15MAP OF PLATFORM «UKTUS>>> OBJECTS OF INTERNAL INFRASTRUCTURE 1,83 HA EXISTING DESIGNED Gas Power supply 2,14 HA Drinking water supply Industrial and fire-working water supply 3,23 HA Sewage systems LAND PLOT STATUS On hold Designed Constructed ■In operation 4,05 HA 4,92 HA Runway 6,06 HA 3,4 HA UWCA (Ural Works of Civil Aviation) 0,46 HA 0,58 HA Air terminal 0,17 0,41 HA HA 4,0 HA 4,25 HA 0,98 HA RUSMED Boiler facility 0,67 HA 3,49 HA 2,25 HA 3,36 HA 3,08 HA 3,17 HA 3,33 HA 2,28 HA M5 Highway «Ekaterinburg - Aramil»> Entrance 2,25 HA 5,3 HA Entrance 14#16READY INDUSTRIAL INFRASTRUCTURE, PLATFORMS «SALDA»> AND <<UKTUS»> PROVIDED RESOURCES Platform <<Salda» Utility and drinking water supply 262,8 thousand m³/year Fire-fighting and industrial water supply 383,25 thousand m³/year Gas supply 175,2 mln m³/year Power supply 40 MW Platform <<Uktus» n Water supply 131,4 thousand m³/year Gas supply 43,8 mln m³/year Power supply 25 MW LAND PLOT WITH ALL NECESSARY COMMUNICATIONS Communication networks Railway transport ww Gas supply Platform «Salda>>> RENTAL LEASE From 256 euros/ha - to 512 euros/ha BUY-OUT 1790 euros/ha (7% of the cadastral value) Platform «Uktus»> Rental lease depends on volume of investments, industrial specialization, labor productivity of resident's enterprise Water supply Heat power Internal road network Power supply 15#17SVERDLOVSK REGION: LOCATION ADVANTAGES EKATERINBURG - 4 600 KM of railways are connected to industrial enterprises of the region EKATERINBURG IS A BIG TRANSPORT HUB, THAT CONNECTS EUROPEAN AND ASIAN PARTS OF THE COUNTRY IS A TRANSPORT HUB FOR LONG-DISTANCE RAILWAYS: Moscow- Beijing ●Moscow - Petropavlovsk • Moscow - Vladivostok (Trans-Siberian Railway) ●Moscow- Khabarovsk Paris Berlin Moscow 1667 kм Ural federal district R 500 KM access to 60% of the country's mineral resource base 95% of vanadium 70% of bauxites 70% of chrysolite asbestos 20% of iron ore 30,8 thousand km ength of highways in Sverdlovsk Region FEDERAL HIGHWAY M5 Ural - drive to Ekaterinburg REGIONAL HIGHWAYS: R242 20% of fire-clay Perm Ekaterinburg Syktyvkar Beijing DIRECTIONS OF RAILWAY COMMUNICATION FROM EKATERINBURG: ●Saint-Petersburg Tyumen ⚫ Kurgan • Perm R351 Tyumen - Ekaterinburg R354 Ekaterinburg - Shadrinsk — Kurgan Khanty-Mansiysk Izhevsk Perm SEZ «Titanium Valley>> Ekaterinburg Ufa 180 KM Sverdlovsk region R402 Tyumen • Khanty-Mansiysk • Novorossiysk • Novy Urengoy Chelyabinsk • Orenburg Kurgan Tyumen Yalutorovsk - Ishim - Omsk R404 Tyumen Tobolsk - Khanty-Mansiysk 16#18EKATERINBURG IS CITY No1 FOR BUSINESS AND INTERNATIONAL COMMUNICATIONS* BUSINESS CENTER AND A LARGE HUMAN RESOURCE HUB 1 501 652 population (as of 01.01.2018) 120 000 companies from different business sectors 193 large and medium-sized manufacturing enterprises 30 official representations of foreign states 40 educational institutions of higher professional education Ural Federal University named after the first President of Russia B.N.Yeltsin *No1 - Ekaterinburg in terms of business tourism and events potential among regional Russian cities (R&C 2017) УГМК UMMC INNOPROM INNOPROM YEAR Platform 1:25 for international events FIFA worldcup host city International industrial exhibition Innoprom AR KOLTSOVO Ekaterinburg International Airport International airport Koltsovo World brands of hospitality HYATT Hilton park inn கு Ekaterinburg EXPO/2025 FIFA WORLD CUP RUSSIA 2018 INNOPROM URAL AIRLINES or Radisson 17#19SVERDLOVSK REGION. LOGISTICS IN 2017* FREIGHT TRANSPORTATION AVIA 24,5 thousand tons of cargo shipped at the Koltsovo airport in 2017 Cooperation with 50 airlines, 120 flight directions RAILWAY 140 million tons of cargo is shipped at Sverdlovsk railway in 2017 (11% of all shipped cargo in Russia) 205,7 billion tariff ton-km cargo turnover in 2017 AUTOMOBILE 32,5 million tons of cargo is shipped in 2017 3,2 billion ton-km in 2017 *Data: Russian railways, Ministry of Economics of Sverdlovsk region, Federal air transport agency PASSENGER TRANSPORTATION AVIA 135 directions, 5,3 million passengers In 2017 from Koltsovo airport TOP-10 of best airports of the world with passenger traffic up to 5 million people TOP-10 of best airports of the world according to World Airport Awards, Skytrax (Passenger's choice) Best airport of the macro-region of Russia and CIS, Best regional airport of the macro-region of Russia and CIS RAILWAY 30,7 million passengers are transported by Sverdlovsk railway in 2017 18#20INDUSTRIAL SPECIALIZATION OF THE REGION SVERDLOVSK REGION IS A KEY INDUSTRIAL REGION OF RUSSIA SHARE OF SVERDLOVSK REGION IN ALL-RUSSIAN PRODUCTION OF INDIVIDUAL PRODUCTS AND RAW MATERIALS* Ti 100% Titanium alloys A 70% mainline diesel locomotives of new generation A: 42% main electric locomotives 氢 35% metallurgical equipment VSMPO TMK AVISMA YгMK UMMC SINARA RUSAL A 90% drilling rigs 60% alumina 40% transformer steel 90% children incubators Data: Ministry of Industry and Science of Sverdlovsk Region Cu 33% blister copper Ural Locomotives EVRAZ 3TM УРАЛМАШ ОБОРУДОВАНЬ УРААМАШ РУССКАЯ МЕДНАЯ КОМПАНИЯ 51% universal electric motors from 37,5 W 40% freight wagons 28% oil and gas production equipment 25% steel pipes ДИНУР ОТКРЫТОЕ ПЕРВОУРАЛЬСКИЙ АКЦИОНЕРНОЕ ДИНАСОВЫЙ ОБЩЕСТВО ЗАВОД НЛМК YOM3 «МЕТАЛЛИСТ 19#21FOREIGN COMPANIES IN SVERDLOVSK REGION SALES TURNOVER OF COMPANIES WITH FOREIGN CAPITAL, BILLION EURO AMOUNT OF MIXED-CAPITAL COMPANIES (EXCEPT BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL COMPANIES)** AVERAGE NUMBER OF EMPLOYEES, THOUSAND PEOPLE" 10,66 693 COMPANIES THAT OPERATE WITHIN SVERDLOVSK REGION 109,7 Lhoist PRAXAIR HILONG Coca-Cola (GE) HBOSCH ABB SIEMENS B BAYER 長 Bayer AstraZeneca 2 Johnson-Johnson Mazak Технологии для воды BOEING ENVIROCHEMIE ● MAKINO Schneider Electric LOKUMA NOVARTIS According to Sverdlovskstat, * In 2017 **As of 01.01.2018 20 20#22HUMAN POTENTIAL (UNIVERSITIES) C 234 21 licensed universities with state accreditation: 17 state universities 4 non-state universities 5 branches of state federal universities (according to Russian educational supervision as of May, 2017) 6 branches of Ural Federal University ■Metallurgy ENGINEERING AND TECHNOLOGICAL SPECIALTIES, INCLUDING: Machine-building production ■Repair and assembling of aero crafts and vehicles Wood manufacturing Chemical technology ■Materials Science and Materials Technology ■Medical biochemistry and biophysics ■Mechatronics and Robotics ■ Nanotechnology and microsystem technology ■ Nuclear reactors and materials ■Construction and Metrology Data: according to Federal service for supervision in education and science as of 01.05.2018 21 221#23HUMAN RESOURCES POTENTIAL CITIES WITH PERSONNEL RESOURCES FOR SEZ << TITANIUM VALLEY>> SALARIES LEVEL IN SVERDLOVSK REGION IN ACCORDANCE TO INDUSTRIAL SECTOR, EURO / MONTH Metallurgical production 650 KRASNOURALSK 23 400 people - population SVOBODNYI 10 000 people - population NIZHNIY TAGIL 356 800 people - population 52% working-age population NIZHNYAYA SALDA 17 660 people - population VERKHNYAYA SALDA 45 100 people - population 55% working- age population NEVYANSK 41 100 people - population working-age population 40% ALAPAEVSK 43 400 people — population Manufacturing 625 of finished metal products Production 575 of machinery and equipment Manufacturing of transport 560 vehicles and equipment Production of chemicals 530 and chemical products EKATERINBURG Production 485 675 Euro average salary (large and medium-sized companies) 67% working-age population 1 501 600 people population of construction materials Production 475 of electrical equipment Woodworking 288 *(as of 01.01.2018) 222#24www.titanium-valley.com SEZ «Titanium Valley>> Russian Federation, 620075, Ekaterinburg, 51 Malysheva street, office 2102 Phones: +7 (343) 243 55 83 E-mail: welcome @titanium-valley.com