DEUTSCHE KABEL AG TASCHKENT (DKG)

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On successful activities of «Falk Porsche Technik GmbH» in Uzbekistan DEUTSCHE KABEL AG TASCHKENT (DKG) November 2015, Tashkent

History and development of the Company 1949 2000 2005 2016 Elaboration of cable products, Steel ropes, new cables as per DIN / EN Standards, Delivery to Europe German market development 2004 2011 Steel wire, Steel Strips for cotton bales, Steel reinforcement В500С, Pre-stressed wire, Metal-ware, Eco-panels, Net constructions Production of geo-textile and synthetic ropes from PET bottles Establishment of cable factory in Tashkent to cover needs of the Ministry of Defense, USSR Establishment of Uzbek-German JV Deutsche Kabel AG Taschkent (DKG) Implementation of ISO 9001:2000 Engineering of oxygen free copper casting as per EN 13602 standards Membership in VDE, OA Receiving of СЕ mark 2017 Deusche Pfand systeme Modernization of cable production, Integration and export to the European market 1949 1999 2004 2007 2010 2012 2016 2

Sales and Export volume increment dynamics, Engineering of new products 1998 2000 2002 2011 1998 Traditional nomenclature New products 3

(Engineering of new production) DEUTSCHE KABEL AG TASCHKENT Power lines, shield wire and self-insulated wires Steel wire and steel wire products Oxygen free copper casting as per VDE standard Import replacement up to USD 40 mln. since 2011 Annual currency savings Up to 10 mln.usd Export potential exceeding 100 mln. USD/per year Steel reinforcement B500С as per DIN 488 standard 3 D panels Net constructions for waterworks 10% raw material saving Production capacity 350 sq.m per year Currency savings Over 15 mln.usd 4

DEUTSCHE KABEL AG TASCHKENT Economic impact of Steel strap production for the needs of «Uzpahtasanoat» (Cotton industry) Th.tons 20000 15000 10000 5000 0 2005 2006 2007 2009 2014 --- Import --- DKG Steel strips are produced as per DIN 17223 standard Patent FAP 00227 dd 23.03.2005 Currency savings in amount of 8,4 mln.usd per year Produced as per European technology 5

Steel wire production - Economic impact 40000 35000 30000 25000 20000 35316,5 26700 29671 20771 15000 10000 10933 12756 12657 5000 0 2769 2006 г. 2007 г. 2008 г. 6460 In tons In Thousand USD Import contents of DKG As per customs statistics, import volume was reduced from $ 26,7 to 19,1 (making 7,6 mln.usd composing 28,5%) due to engineering of new production 6

Production and supply of products vide tenders Предлагаемая модель системы депозита и сбора global market VL-500 кv Talimarjan PP Sogdiana substation Supply of cable and steel products as per DIN standard, including for solar collectors Production of PET straps, Geo-textile and synthetic thread Предлагаемая модель системы депозита и from PET Bottles сбора Ecological engineer solution on the basis of new construction materials Предлагаемая модель системы депозита и сбора In collaboration with the Ministry of Economics of Germany (GIZ) 7

Condition of PET Bottles recycling in Uzbekistan PET granules and preforms 32,9 th.tons per year for amount of $36,4 mln. Production of high quality Cotton type synthetic fiber 8

Raw materials Copper Own copper casting Developed infrastructure Local raw material base Preis / Kosten Price Financial resources Almalyk mining and smelting enterprise, Uzbekistan Qualified man power Available energy resources For achievement of aimed tasks and engineering of new high technological products 9

Low-cost and stable electro-energy Own copper casting Developed infrastructure Local raw material base Price Financial resources Qualified man-power Available energy resource 1 кwt/h = 6 Cents (167,40/2692) (5 times cheaper than in Germany) Energy independence No emergency shutdowns 10

Qualified man-power Own copper casting Developed infrastructure Local rawmaterial base Price Financial resources Available energy resources Qualified manpower - Average salary of a specialist is lower than in Europe - 100% of population has secondary education - Permanent qualification - Own education center - Сollaboration with Tashkent State Technical University and Tashkent College of Information Technologies 11

Support by the Government of Uzbekistan. Own copper casting Modern technologies Дешевое сырье Финансовые Encouragements in ресурсы the country Цена Low-cost man-power Дavailable energy resources - Privileges under the Programme of localization - Privileged crediting - First hand raw material - Other privileges - Encouragement of export oriented and import-replacing production Products made in Uzbekistan are not subject to import taxes in CIS countries 12

State Programme of Production Localization. Implementation of investment programmes. DEUTSCHE KABEL AG TASCHKENT DKG participates in State Programme of localization since 2006. Over 20 projects implemented under the Programme; For the last 5 years : - Localized products sales volume made over 305,0 billion soums; - Economic impact from import replacement over 63 billion soums; Company has availed noticeable privileges from the Government for efficient implementation of these programmes. Assets, availed from the Programme of Localization are directed into enhancement of production and purchase of raw material. In 2015 expected volume of localized production would make 43 billion soums. For the last 5 years implemented investment projects exceeded 150 mln.usd; 13

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