#1ECONOMY POTENTIAL AND STRATEGIC PROJECTS OF THE SAMARA REGION#2livinsk THE SAMARA REGION ON THE MAP OF RUSSIA Territory 53,600 Urban population sq km Population 3,171,400 80% Average age 39.9 GRP $27.8bn Kostroma Tver NIZNIY NOVGOROD MOSCOW Kaluga Tula Ryazan Yoshkar-Ola Saransk Disk Kursk Lipezk Tambov 1,000 km Voronez Penza Cheboksary 500 km Saratov KAZAN Ulianovsk Izevsk PERM M EKATERINBUNG UFA SAMARA Orenburg CHELYABINSK Tumen ® Kurgan#3TRANSPORT POTENTIAL * RAILWAY Electrified double-track railway mainline «Sysran Zhigulevskoe More - Samara» passes through Togliatti and comes to the transsiberian International transport corridor M5, M32 Federal highways «Moscow-Chelyabinsk», «Kazakhstan» RIVER PORT Port is located in the transport corridor «North-South» and is able to accommodate and to process ships of «river-sea» class KURUMOCH INTERNATIONAL AEROPORT Located 40 kilometers away from Samara and 60 kilometers away from Togliatti TOLIATTY ZIGULYOVSK⚫ OTRADNY OKTYABRSK OKINEL SYZRAN SAMARA NOVOKUYBYSHEVSK CHAPAEVSK NEFTEGORSKO LOGISTICAL COSTS per kilometer amount € 0.75 to compare to € 1.32 in Europe POKHVISTNEVO#4RATINGS OF THE SAMARA REGION INTERNATIONAL NATIONAL 8th place on investment opportunities (according to the *Expert RA>>) ruAA+ credit rating by the Standard&Poors national scale Aa1.ru long-term by the Moody's Interfax national scale BB+ credit rating by the Standard&Poors international scale 6th place on the UN human potential indexB Ba1/Stable according to the Moody's investment service#5INDUSTRIAL POTENTIAL of the SAMARA REGION 4.8 3.3 4.8 16.3 6.8 x 12.7 Electric power production 4.8% Metallurgy 6.8% Electric power, natural gas and water production 12.7% Other industries 8.2% Foods industry 10.8% Chemical industry 9.3% 8.2 Transportation meanings production 23.0% Petrochemical industry 4.8% 23.0 10.8 Rubber and plastic production 3.3% Mining 16.3% 9.3#6OUR COMPANIES PRODUCE 10% of Russian oil-products 20% of synthetic ammonia and bearings Hi 50% of linoleum 60% of cars#7CLUSTER POLICY as a BASEMENT of the REGIONAL DEVELOPMENT AUTOMOTIVE AUTO COMPONENT AIRSPACE CHEMICAL CLUSTER CLUSTER CLUSTER CLUSTER IT CLUSTER#8AUTOMOTIVE CLUSTER RENAULT-NISSAN ALLIANCE C AVTOVAZ RENAULT NISSAN THERE ARE CONCENTRATED IN THE AUTOMOTIVE CLUSTER 40% of regional industry 40% of regional employee 65% of industrial fixed assets LADA Kalina#9THE BIGGEST CAR PRODUCTION REGIONS IN THE WORLD AND THE PLACE OF SAMARA REGION AMONG THEM Michigan, USA Ile-de-France, France Baden-Wurttemberg, Germany Turin, Italy Northern Rhein and Westphalia, Germany Samara Region :0 $500 700 680 1100 1000 1576 1500 1000 1500 Thousand a year#10AUTO COMPONENT CLUSTER of the SAMARA REGION 強 60% More than 60% of Russian auto components are manufactured in the Samara region Over 100 companies, among them उ AVTOVAZ TENNECO CORNING DELPHI Automotive Automotive Bystems CIMOS ZKS mero wheels KUKA Johnson Controls Eberspächer GM ए GM-AVTOVAZ THE BATTERY EXPERTS ✔ VARTA BOSCH Valeo faurecia MAHLE SANOh NORMA GROUP Ⓒ FEDERAL MOGUL#11AIRSPACE CLUSTER TSSKB-PROGRESS scientific-industrial space center JSC AVIACOR aircraft factory#12AIRSPACE CLUSTER Liquid fuel rocket Aviation engines Gas-turbine engines power plants x- 1 FTY-2500#13SPACE TECHNOLOGIES Biom-M Resource-F2 Resource-DK Full spectral range operative scanning of the earth surface Номина Soyuz-ST Soyuz-FG Soyuz-2#14INTERNATIONAL SPACE COOPERATION Nan satellites development cooperation International Soyuz-Kourou project cooperation (France Guiana) in Earth scanning from deep space EADS iPartnership with NASA in rocket engines development and testing Partnership with EASA in Galileo satellite system GALILEO development#15POTENTIAL MARKET FOR ENGINEERING CENTER CUSTOMERS Peak loads, new projects Areas of Work Adaptation, translation, localization X Research, development, engineering, training, collective use of equipment 30% 70% Avtovaz-Renault-Nissan, GM-Avtovaz 2+ other regions (VW, BMW, Fiat, KIA) 80% 20% Tier 1 suppliers and integrators (Faurecia, Bosch, Magna, Valeo...) > 15 OWN CAPACITIES AND COMPETENCES 20- 30% 70-80% Tier 2, 3, 4 suppliers > 100#16SCIENTIFIC ENGINEERING CENTER "FACTORY OF THE FUTURE" FOR COMPANIES PARTICIPATING IN CLUSTERS OF SAMARA REGION Competitive production with high added value Smart Factory Intellectual production Virtual Factory Digital Factory Lean production Rational efficient production Quality management High performance Agile Configurable Equipment Precision microelectronic equipment Optimal production planning Poka-yoke Indicative management#17PETROCHEMICAL CLUSTER Cooperation with leading national and foreign companies: UK ROSNEFT OIL COMPANY LUKOIL DSM C THE LINDE GROUP Export to more than 100 countries over than $$2bn annually SANORS fi KuibyshevAzot JOINT-STOCK COMPANY K A Togliattiazot PETROFER INDUSTRIAL OILS AND CHEMICALS ThyssenKrupp#18IT - CLUSTER «<Sergey Korolev» supercomputer Cooperation with leading world IT-companies SIEMENS ORACLE intel +1|1,1|1, Microsoft CISCO. NetCracker Delcam NetCracker <epam> Transforming the Service Layer™ SAP IBM#19INVESTMENT POLICY Tax preferences for investors Special benefits for projects of EUR 2.5M+ class State-private partnership Selection of projects by the inter-branch expert Council#20MECHANISMS OF THE STATE SUPPORT For projects costing more than 650 million rubles: INFORMATION AND ORGANIZATIONAL SUPPORT: The conclusion of an investment memorandum Appointment of supervisor Consulting PREFERENTIAL TAXATION: 0% property tax up to 5 years BUDGET SUBSIDIES STATE GUARANTEES 13.5% of income tax up to 5 years#21PREFERENCES FOR INVESTORS in MONOINDUSTRY CITIES Oktyabrsk, Chapaevsk, Pokhvistnevo PREFERENTIAL TAXATION 0% property tax up to 7 years 13.5% of income tax SUBSIDIES TO CREATE NEW JOBS € 2,000 per one job#22STATE SUPPORT SYSTEM Advanced regional legislation ●Investment laws Tax laws and rules (property tax, profit tax) The law on state-private partnership Transparent status of land property ● Investment sites picking ● Assistance in engineering survey ● Construction permits assistance Utilities connection assistance Administrative support ◆ General supervising on projects Appointment of the curator (regional governmental officer) Personal supervision by the regional Governor#23OUR PARTNERS Netherland France Germany Switzerland Austria Denmark Bulgaria Italy UK USA Slovenia Portuguese Sweden Spain Greece Ireland Serbia DENMARK Inmeco Group APS VB Autobatterie Kuka METO Group WUERTH Holding NETHERLANDS Siemens Provimi Holding Oriflame Eastem Europe B.V. Mamott International Rehau VKT Trading Lapp Holding DU ROMEX Bos Man Watermanagement B.V. FRANCE Renault Danone Auchan Tarkett Sommer Siciete Generale Leroy Merlen GERMANY Henkel Bayer KROHNE SLOVENIA Helios AGEP SWITZERLAND Nestle EM Finance S.A. Transrail AG LAveo Electro AG UK DELCAM International Kingficher Group Majenta Corporation WT Henley Nordco, Inc. Transchemical Overseas Limited Marvel Lifesciences AUSTRIA DUOL TPV Rus Alpla Raffaisenbank Doppelman SERBIA Johnson Controls Automotive Sinteza Invest Group A.D. USA PepsiCo Coca-Cola Alcoa Hess Corporation-Samara-Nafta General Motors Delphi Automotive Systems Coming Incorporated ADS Plastic Tenneco Automotive Group Triumph Development FINCA International Citibank SWEDEN IKEA IRELAND Pennygold Trading Supplies GREECE Moravan Safety Belts A.S. ST-Yolding S.R.O. SPAIN UEB Union Explosivos PORTUGUESE Amorim & Irmaos Corc ITALY Pietro Barbaro A.O. Ansaldo Industria S.p.a. Cooperativa Ceramica d'Imola S.R.L Sefin S.p.a. Autocomponent Engineering S.R.I. BULGARIA IKR Babolna#24ECONOMIC COOPERATION BETWEEN SAMARA REGION & JAPAN (MLN. USD) 51.4 40.4 26.3 19.5 6.5 14.9 87.0 -- 90 80 69.7 70.0 70 60 50.0 44.9 50 40 30 | 20 -- 10 - 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012#25MAIN IMPORTS Description of Goods Industrial equipment Hard-copy books, newspapers, etc. Optical instruments and devices Land transport means, their parts and accessories Ferrous metals Knitted fabric (hand- and machine-knit) Electric machines and equipment Tool-ware, accessories, knife products of basic metals 2010 2011 2012 30025.5 39987.7 17514.2 229.9 15.7 4840,3 1141.4 3748.1 20191,9 134.0 1146.4 20053,0 1185.6 5338.4 1683,7 44.0 340.2 1865,9 | 2367.5 7787.9 2701.7 4661,9 11315.4 10032,4 | |#26COOPERATION WITH JAPANESE COMPANIES IN SAMARA REGION x Makita KOMATSU NISSAN SANOH Company MOTOR COMPANY 7 TOYOTA TSUSHO CORPORATION JETRO J since 1997 ROTOBO Connecting Markets Japan External Trade Organization 社団法人 ロシアNIS貿易会 Japan Association for Trade with Russia & NIS Японская ассоциация по торговле с Россией и новыми независимыми государствами since 2003#27POSSIBLE FIELDS OF COOPERATION Telecommunication & IT technologies Equipment & instruments production Autocomponents production • Consumer electronics Energy sector Health service & medical equipment Culture#28SPECIAL ECONOMIC ZONE IN SAMARA REGION JSC «AvtoVAZ» 660 ha AREA OF SEZ J SEZ TOGUATTI AVTOVAZ H 436 ha - Residents' industrial zone 143 ha - Engineering and transportation infrastructure zone#29Project characteristics TECHNO PARK «ZHIGULY VALLEY» I Project cost 100 mln. euro Square of technopark 55 500 Sq.M. 250 servers More than 3 500 working places 38 agreements with potential residents, as for august 2012 32 projects are approved#30<<ZHIGULI PEARL>> TOURIST-RECREATIONAL COMPLEX Area is situated in «SAMARSKAYA LUKA>> national park Territory 182.33 ha Project cost € 120 mlm#31INFRASTRUCTURE FOR FOOTBALL CUP 2018 New stadium with infrastructure New hotels Fast rail (TGV) «Samara-Moscow>> Training base Building & reconstructing roads on the way from airport to stadium Fast rail (TGV) «Samara-Kurumoch- Togliatti»#32RECONSTRUCTION OF KURUMOCH INTERNATIONAL AIRPORT» terminal hotel 4* parking zone business center pedestrian gallery lounge bus station train station#33WELCOME TO THE LAND OF SAMARA! 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