#1ANNEX 1 AEB CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 Association of European Businesses#2AEB CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 CJSC Ferrero Russia CEO Igor Vasilievich Nemchenko Date of the investment project 2008-launch of the investment project factory in Vladimir Region. 1 June 2018 launch of the new investment project. Amount of investments From 2008 till 2018 - over 250 mln EUR. Within new investment agreement with regional administration from 2018 till 2021 will be invested about 1,4 bln RUR. Location CJSC Ferrero Russia Legal address: 601211, Vladimir region, Sobinsky district, Vorsha village, confectionery Ferrero Postal address: 8, 2nd Brest str., Moscow, 125047, Fl. 11-12 Brief information about the investment project Ferrero continues to actively invest in its Russian production, primarily to further expand the export capabilities of the factory. Thus, in 2017-2018, Ferrero Russia invested 631.7 million rubles (8.77 mil- lion euros) in the development of production. And for the first quarter of 2019 "Ferrero Russia" the amount of investment amounted to 210,1 mln rubles. In total, in framework of the Protocol on the conditions of investment in the development of production capacities of the confectionery factory JSC "Ferrero Russia" from June 1, 2018 until 2021, the company will invest in the amount of 1.4 billion rubles. Association of European Businesses 2#3CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 QUAR DAIMLER KAMAZ RUS CEO Andreas Deuschle Date of the investment project New Cabin plant stone foundation took place March 09, 2016 in Naberezhnye Chelny. This date became the official start of Cabin plant project. Amount of investments More than 200 mln EUR (14 bln RUR) Location Legal and postal address of DAIMLER KAMAZ RUS: 47, Proizvodstvenniy proezd, Naberezhnye Chelny, Republic of Tatarstan, 423800, Russian Federation. Cabin plant address: Industrial and municipal area, Autosborochny proezd, 5A (or 52), Naberezhnye Chelny, Republic of Tatarstan, 423800, Russian Federation. Brief information about the investment project New DK RUS plant aimed to produce cabin frames for trucks was opened May 27, 2019 in Naberezhnye Chelny. The square of the plant is over 60 thousand square meters. New plant is fully equipped by robotechnics (more than 120 robots at production lines), high-tech developments and industry solutions. Logistics area, body shop, paint shop, power center, and offices are situated as well at the territory of the plant. Association AEB of European Businesses Then he 3#4CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 AEB Association of European Businesses Mercedes-Benz Manufacturing Rus 000 CEO Axel Bense Date of the investment project On 17 February 2017 the SIC to produce Mercedes-Benz passenger vehi- cles was signed. The beginning of construction - 20 June 2017. On 7 March 2017 the Conclusion on the compliance of the constructed fa- cility with the requirements of technical regulations and project documen- tation was received from State Department Gosstroynadzor of Moscow Region. On 22 March 2019 the operational permit was received from the Ministry of Residential Policies. The Opening of the plant - 3 April 2019. Amount of investments 250 mln EUR Location 141595, Moscow region, Solnechnogorsky district, Lozhki village, Territory of Esipovo Industrial park, property 1, Russia Brief information about the investment project Car production volumes - about 20 thousand cars per year. The number of created working spaces is more than 1000. Produced models - sedan E-class, further is planned production of SUV's. "Flexible Assembling" and technologies "Industry 4.0" make an opportunity to produce multiple car platforms on a single line. 4#5CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 Merck CEO Matthias Wernicke Full cycle production launch 12 December 2018 MERCK HEVENDE KAHECTBO Location Kirov Brief information about the investment project Merck, a leading science and technology company, operates across healthcare, life science and performance materials. Merck operates in Russia since 1898. Today Merck in Russia has almost 400 employees. Lately, the company intro- duced a new local development strategy. Currently Merck's key focus is tech- nology transfer in partnership with leading local pharmaceutical companies to ensure better access to Merck medicines. Merck medicines are in demand for the treatment of neurological, endocrine, cardiovascular, cancer and other diseases. We are also working on the emergence in Russia of new unique tech- nological (life science) solutions for research, production and quality control of finished products. On 12 December 2018 at the Nanolek plant in the Kirov region, Merck launched a full cycle production of the medicine against diabetes type 2. This manufacturing will become one of the largest in terms of produc- tion of medicines against diabetes type 2 for Merck in the world after France and Greece. It is planned to reach full manufacturing capacity in this produc- tion in the next 2 years to fully comply with the need of the Russian patients in the produced medicine. Today in Russia there are modern production sites that meet all international requirements, but their capacity is not always fully used. This determined the choice of the way to transfer technology and create new jobs for local specialists, rather than to invest in the construction of new plants. "The key vector of the development of the German company Merck in Russia is technology transfer and localization of production of highly demanded medicines," said Matthias Wernicke, Director of Merck Biopharma in Russia and CIS. - Today, we are proud to announce the launch of a full cycle production line of our products for the treatment of prediabetes and diabetes type 2". AEB Association of European Businesses MORCK HEMELIC Occ 5#6CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 AEB Novo Nordisk LLC 19 CENTRA is Kampas How Зид SARY CEO Lars Fruergaard Jorgensen Date of the investment project 2015 Opening of the Factory. 19 September 2018 - Launch of full cycle production (filling & formulation, except API), opening of the new FlexPen Assembly line. Amount of investments More than 8 bln RUR Location Kaluga region, Technopark "Grabtsevo" Brief information about the investment project Novo Nordisk plant since it's opening in 2015 has been an example of com- pany's successful investment in localization of manufacturing and Russian pharmaceutical industry modernization. Novo Nordisk production site com- plies with GMP standards, corporate standards and Russian pharmaceuti- cal regulation, advanced solutions in energy efficiency and environmental protection are applied at Novo Nordisk plant as well. More than 8 bln RUR were invested in the development of production site, about 300 jobs were created, total production area covers 13,000 m². High-tech Novo Nordisk plant in Russia produces on a full cycle basis modern insulin, which have no analogues in Russia.³ The plant uses the original API produced at the company's sites in Denmark. Production operations in Russia include aseptic production, formulation and filling of ready-made dosage forms in cartridg- es, as well as assembly and packaging of FlexPenⓇ pre-filled multidosage disposable pens. Association of European Businesses 60#7CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 Association AEB of European Businesses By launching full cycle insulin production in Russia, the company moves to the production of modern insulins in pre-filled disposable FlexPenⓇ. Pre- filled injection-pens, which account for more than 89% of the volume of insulin analogues 1,2 in Russia, are the most common type of insulin delivery devices worldwide¹,2. At the moment, Novo Nordisk is a Russian producer, which fully meets the objectives of localization of production, stipulated by the completed Phar- ma-2020 strategy and new Pharma-2030 strategy being developed by the Government. "We decided to localize production in Russia for many reasons, said Mike Doustdar, Novo Nordisk A/S Executive vice president, International Op- erations, in his interview to Rossiyskaya Gazeta (Nº225 (7688)). First, we are working in the country for which, unfortunately, diabetes is a big problem. In Russia, about 10 million people suffer from this disease, and half of them do not even know about it. Developing business in countries with burden of diabetes, we always indicate our willingness to work here for a long time. Of course, localization of production is the best evidence of such willingness. The second reason is that our company's intentions and commitments to support Russian patients clearly coincided with what the Russian Govern- ment expected from multi-national companies. This is primarily an interest in foreign direct investment, in response to which Government provides certain benefits, which was reflected in Pharma-2020 program. Therefore, from a competitive point of view, it was important for us to take advantage of this opportunity." 1. http://zakupki.gov.ru 2. IMS Health database, ATC Class 4, MAT Sep 2017 version 3. Письмо Минпромторга Nº32428/07 OT 27.05.2016 цикла инсулинов диск Калужская область HOBO Дил nova ЗАПУСК 7#8CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 AEB Association of European Businesses PPG PPG CEO Michael McGarry Date of the investment project Factory opening and start up in 2017/2018 - formal opening end 2017 but operational in 2018. Amount of investments 2,6 bln RUR Location Lipetsk Special Economic Zone Brief information about the investment project A state of the art, greenfield, multi-segment coatings facility. The first such new facility built by PPG in EMEA producing paints to supply 4 key markets in the Russian Federation: Automotive OEM localization (Renault/ Avtovaz, Toyota, Mercedes Benz, Great Wall), the industrial steel coil mar- ket (for construction applications), protective coatings for Oil and Gas and Infrastructure projects, Packaging Applications - food and beverage. Total production capacity of 25000 tpa and employing up to 250 people. The second plant operated by PPG in Russia. 8#9CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 Scania Rus 33 AEB Association of European Businesses CEO Wojciech Rowinski, Managing Director Scania Rus LLC Ino Moberg, Managing Director Scania Peter LLC Date of the investment project July 2018 Location St. Petersburg Brief information about the investment project Scania has launched a batch production of new generation trucks using complete knock-down (CKD) technology at its plant in Saint Petersburg. For the first time in the history of the Swedish automotive company a Russian plant has become a "homeplace" for a launch of CKD technology assembly of a new generation trucks. At all stages of the project on supply of trucks to the conveyor line and launch of production process the special- ists from Russia worked together with their colleagues from Sweden. The Russian experience will be used when launching CKD assembly of a new generation trucks at Scania's plants all over the world. To implement a project at the plant in Saint Petersburg equipment was upgraded, new methods in programming and quality control were intro- duced, technological operations for installation of self-dumping trucks adds-on on chassis were improved, employees were trained. Thanks to better aerodynamics, new technological solutions for improving of safety and control as well as modern heating systems and maintenance of microclimate, the vehicles are perfectly suitable for specific road and climate conditions of various regions of Russia. There are models working on diesel as well as on gas-engine fuel. Another important advantage of Scania's new generation equipment is the fact that it features FMS fleet management system, allowing to optimize operation and maintenance of vehicles to reduce operation costs. SCANIA SCANIA 0200 SCANM 0#10CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 Servier, GSK/ViiV Healthcare V SERVIER AEB Association of European Businesses CEO Jérôme GAVET, Managing Director of Servier Group for Russia and EAEU Xavier MORELON, General Manager of pharmaceutical plant "Servier RUS" Oleg DUBYANSKIY, General Director, GlaxoSmithKline Date of the investment project 25 April 2019 Location Moscow Brief information about the investment project On 25 April 2019 local manufacturing of the innovative anti- HIV drug was launched in Moscow at Servier RUS produc- tion site in partnership with GSK/ViiV Healthcare. This part- nership for contract manufacturing is significant for the local market - it will improve access of the drug to people. Project progress The decision on the need to manufacture the drug locally in Russia was made in 2015, less than a year after the regis- tration. The agreement between the drug's developer ViiV Healthcare and Servier, which has its own pharmaceutical plant in Russia (Servier RUS plant), was signed in May 2016. The design of the localization project involves the one-stage start of production of a full cycle (production of a finished dosage form) without intermediate steps, such as secondary packaging. In September 2016, the first pilot and registration series of the drug were produced at Servier RUS production complex located in New Moscow. During 2017, ViiV Healthcare and GSK (Great Britain) and Sh- ionogi (Japan) production sites, which were included in the technology transfer process, were inspected and received Russian GMP certificates. In 2018, a pharmaceutical substance was registered in Rus- sia, and Servier pharmaceutical plant was approved (regis- tered) by the Ministry of Health of the Russian Federation as the Russian production site for the drug. In the same year, within the framework of the St. Petersburg International Eco- nomic Forum, GSK and Servier signed a final agreement on the launch of full-scale manufacturing in Russia. The agreement on production is for a period of 5 years with plans to extend. The flexible scope of the production plan provided by the agreement will satisfy the demand for this drug in Russia. In 2019, a high-tech line for the drug's production, which has no analogues in Russia, was installed at the Servier RUS plant. Servier is one of the active participants in the current state pilot labeling project for drugs, and the new equipment fully complies with Russian regulatory requirements. The official opening ceremony of the production line took place on April 25, 2019. The implementation of the agreement will ensure the avail- ability of a key innovative drug for the treatment of HIV infec- tion produced in Russia, which will contribute to achieving the goals of combating the spread of HIV infection, as well as contribute to the development of the Russian pharmaceutical industry and the innovative potential of Moscow. 10#11CASE STUDIES: INVESTMENT PROJECTS IN 2018-2019 TOTAL TOTAL VOSTOK LLC STAL CEO Fabien Voisin Date of the investment project 15 October 2019 Amount of investments 3 bln RUR Location Vorsino, Kaluga region Brief information about the investment project Moscow, 15 October 2018 - Total has inaugurated its new state-of-the-art lubricants oil blending plant, strategically located in the Kaluga region of the Russian Federation. The grand opening ceremony took place today, Oc- tober 15th, in the presence of Anatoly Artamonov, Governor of the Kaluga Region, and Patrick Pouyanné, Chairman and CEO of Total. This blending and production plant will allow Total to localize the production of its top-tier lubricants for the Russian market. With an investment equivalent to 50 mln USD, this facility has been designed to produce initially 40,000 tons of au- tomotive and industrial lubricants per year, with a scale-up option to bring this capacity up to 70,000 tons per year. The plant is equipped with a fully automated blending system and ultramodern filling lines. Covering an area of 7 hectares of the Vorsino industrial park in the Kaluga region, this facility opens less than two years after the start of construction. Its operations are creating 50 new working positions onsite. AEB Association of European Businesses OPENING CEREMONY OF TOTAL VOSTOK BING PLANT/OCTOBER 15, 2018 11