Industrial park DEGA-Chelyabinsk

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1 Industrial park DEGA-Chelyabinsk

2 About the company DEGA Development is engaged in the development of innovative industrial and business parks, which are characterized by a holistic approach and decentralized infrastructure and utility supply. The main philosophy of the company is to set new standards in the industrial park development sphere in Russia through a concept based on sustainability, bringing economic and environmental aspects in line with each other and offer the customer a comprehensive service package that enables it to concentrate on its core business. Our philosophy that an investment in Russia has to be predictable, transparent, and cost efficient!

3 DEGA in figures 12 years of experience 9 industrial parks across Russia 44 renowned residents 1,6 bln attracted direct investment 6500 jobs created m2 build-up area

4 Our residents

5 Services Development Development of stand-alone logistics, retail and industrial facilities Location studies Innovative surface design and development planning - greenfield / brownfield

6 Services Power & heat solutions Planning and turnkey construction, procurement Build-Own -Operate (BOO) solutions Feasibility studies industrial capacity 2-70 MW ( EPC) In this segment, we work exclusively with the German power company E.ON SA Содержание

7 Services Construction Project Содержание Stage P Сonstruction documents Permissions Turn-key construction Installation Commissioning Pre-project Project Permissions Project realization stages (10-14 months) I II III IV General construction Design & engineering Installation Project management and supervision Permissions and commissioning

8 Services Industrial parks Concept Strategic customer mix Integration of social, commercial and recreational objects Road access / transport infrastructure Decentralized infrastructure Efficient CHP for power / heat Содержание Private well / water distribution system Own feces and rain water purification and sewerage Own networks (underground) and paved roads Operating company Round-the-clock security for the entire park Facility & Property Management Catering Exterior and interior cleaning HR Services Rental of office and meeting rooms

9 Business Model Our business model is developed to minimize major risks either for the operator or for the investor in Industrial park: Development risks: Experience of Dega Group provides the investor with all the necessary construction documents in time. Содержание Business risks: Our system of vertical and horizontal integration helps the operators to reduce logistics and waste utilization costs. Political risks: Industrial park construction by Dega is strongly supported by the government on regional and Federal level, and is included in subsidy program.

10 Industrial park DEGA-Chelyabinsk

11 Location

12 General information about park Total area Total floor space for rent/for sale Main focus 73 ha 55 ha Agroindustrial complex, light industry, construction, light engineering, pharmaceuticals Electricity supply 19 MW Gas supply 15 Mio m3/hour Number of jobs > 1000 Water supply Labor force access Government support Web-site Autonomous water supply More than people Federal and regional SME support programmes and constituent unit of investment activities

13 Development Master plan

14 Location Benefits Unique geographic location o The largest logistics hub is located in close proximity to the park, which lets the residents of the industrial park DEGA-Chelyabinsk to: deliver goods to China during 10 days send goods to other Asian-Oceanian countries and throughout Russia Resources o o o o Cost of electricity is one of the lowest in the country: for enterprise companies - 2,52-3,54 RUB/kW-h High natural resource potential of the region: monopolist in Russia on extraction and processing graphite, magnesite, talc, metallurgical dolomitemore more than 300 deposits of iron and copper-zinc ores, gold, refractory raw materials, graphite and quartz Cheap and high-qualified work force Budget-friendly land plots with utilities

15 Location Benefits Market o Consumer market capacity people o A huge transport and logistics hub is located in this region, which provides the residents of the industrial park DEGA-Chelyabinsk with the access to the markets of Kazakhstan, China and other Asian- Oceanian countries Enterprise businesses as the prospective clients o Metallurgical companies (ОАО " Magnitogorsk Steel Factory ", ОАО Chelyabinsk Steel Factory ", ОАО Chelyabinsk tube rolling plant ") Goods and services needed: production equipment, electrical products, software engineering

16 Location Benefits Enterprise businesses as the prospective clients o Energy companies (NOVATEK - Chelyabinsk, ОАО Fortum and etc.) Goods and services needed: process equipment service, construction contracts, software. o Engineering concerns (Chelyabinsk tractor plant - Uraltrak, Zlatoust engineering plant and etc.) Goods and services needed: components, metal, processing equipment, software.

17 Location Benefits Enterprise businesses as the prospective clients o Food manufacturers (Makfa, Uvelka, Ariant, SITNO, Soyuzpischeprom, The backery name Grigorovich and etc.) Goods and services needed: raw materials, production equipment, manufacturing and maintenance of hardware, package, software

18 Government support Tax rate on property 0% for 6 consecutive tax periods Tax rate on profit To 13.5% for 6 consecutive tax periods If the organization is a participant in a regional investment project, the rate may be reduced to 10% Preferential ratio, when calculating the rent of land 0,001

19 Clusters of Industrial park Agro-industrial cluster The policy of import substitution and technological progress, as well as constant food needs are basic factors and it gives rise for attracting investments in food industry and agricultural. Existing residents : Processing and storage compleх for vegetables Planned for allocation: Vegetable processing companies Greenhouse farms Meat processing companies Dairy producers FMCG retailers Packaging manufacturers

20 Clusters of Industrial park Cluster of light industry Light industry cluster was created in Dega-Chelyabinsk in order to meet growing demand in the region, as well as for the organization and for export supplies. Existing residents : Cord factory Planned for allocation: Textile companies; Footwear manufacturing companies; Producers of paints for fabrics.

21 Clusters of Industrial park Cluster of light engineering The Chelyabinsk region has its own metallurgical base, that contributes to development of the light engineering cluster in the industrial park DEGA-Chelyabinsk. There are also large manufacturers of agricultural machinery, which require an additional service. Planned for allocation: Manufacturing of electrotechnical devices Manufacturing of technological equipment Agricultural machinery repair companies

22 Clusters of Industrial park Pharmaceutical cluster Within the framework of import substitution policy the need for domestic medicines is growing, that offers the possibilities for allocation of the pharmaceutical cluster in the industrial park DEGA- Chelyabinsk. Planned for allocation: Manufacturing of medications Supplier of equipment for laboratories and clinics Manufacturing of fine organic synthesis products and active pharmaceutical ingredients Manufacturing of medications, medical accessories and equipment for dentistry

23 Clusters of Industrial park Construction cluster There is an active construction of residential and industrial buildings in the Chelyabinsk region, that forms a stable demand for building materials and special equipment. Existing residents: Automatic gate manufacturing Planned for allocation: Suppliers of construction machinery Suppliers of building equipment Design departments Suppliers of sensors and detectors Manufacturers of plastic windows

24 FRIBOURG Avenue de Beauregard , Fribourg, Switzerland Tel/Fax: info@dega-ag.com MOSCOW Prospect Mira 119, bld Мoscow, Russia Tel: / info@dega-ag.com 24

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