01.08. 2011

Togliatti

TOGLIATTI TOWNSHIP

1924-1946 – rural settlement, 6-9 thousand people; beginning of 1950s – 12 thousand people; 1966 – 90 thousand people

It is the largest Russian city not being the center of the constituent of the Russian Federation. Also, It is the 17th Russian city by population

Founded in 1737

3 isolated city districts: Avtozavodsky, Komsomolsky, Central

720.5 thousand citizens

TOGLIATTI TOWNSHIP

Construction of HPS

Stavropol–on-Volga

Togliatti

Togliatti is a three times-born city, as

they say

Stavropol was established as a fortress in 1737 by Vasily Tatishchev, the associate of the Russian emperor Peter I

In 1950, it became the center for construction of the Volga Hydroelectric Power Station (HPS) named after Lenin. Due to filling in the bed of the Kuibyshev Water Reservoir the city appeared anew on the left bank of the Volga River.

In 1964, the city was named Togliatti. In 1966, the construction of the Volga Automobile Plant, the largest car manufacturing plant in Russia, began.

Federal motorway M5

Moscow – Chelyabinsk runs through Togliatti,

Samara International

Airport is located in one-hour drive

away from the city center; there is an own river port serving the “river-sea” type

of vessels, a railroad, etc.

INFRASTRUCTURE OF THE REGION

DEMOGRAPHIC SITUATION

Togliatti Township population

719.5 thousand

people

Men46,1%

Women53,9%

Of the total number of citizens in Samara Region

22.4 %

Average age

38

EMPLOYMENT AND MANPOWER MARKET

The number of manpower

resources constitutes

approximately 492.6 thousand

people, its share in the total

amount of the population

is 68.3 %.

20,2

15,864

Working age – 64%

Above the working age – 20.2%

Below the working age - 15.8%

19,555.4 RUR

Average salary for January-April 1.03.2011

1.69%

Number of unemployed relative to employable

age population

7, 809 people

Number of unemployedregistered with GU Employment

Center as of 15.07.2011

SPORT

SPORTS in Togliatti

19 Municipal sports schools dealing with more than 55 kinds of sports

83 World and European Champions

11 Olympic and Deaflympic Champions and Prize Winners of Olympic and Deaflympic Games

16, 000 children, teenagers, young people going in for sports

In 1992, a team consisting only of Togliatti mountain-climbers, conquered Everest, the highest peak of the planet (8,848 meters) for the first time in the world

239 Different sports competitions held in Togliatti in which 70, 729 people took part

The world’s most massive tourist boating campaign is held in Togliatti – for 9 days more than 700 people are row-boating down the river (140 km)

EDUCATION

The educational system of the City of Togliatti is represented by the institutions of different types and forms, implementing programs of pre-school, supplementary and vocational education that meet the requirements of the community

149 pre-school educational entities

600 educational programs upon 10 profiles are implemented in the entities for supplementary education

85 municipal entities of general education

System of Education in Togliatti 46 entities for supplementary education

54 municipal pre-school entities render correction support to the handicapped children of pre-school age

168 Togliatti teachers were financially encouraged for high professional skills within 2006-2009 in accordance with the Decree of the RF President

HEALTH CARE

Health Care in Togliatti

Today, the Health Care Service is represented by the municipal health care institutions, public health care institutions, as well as by private doctor’s offices of various profiles.

Municipal medical and health care preventive

institutions:

8 City out-patient hospitals

5 City clinic hospitals

1 City infection Hospital

1 City Health Center

3 Dental clinics

2 Municipal health care institutions

CULTURE

Culture inTogliatti

Culture in Togliatti is a unique phenomenon for a young Russian city having an interesting history of 273 year duration.

35 places of worship and religious institutions

22 national and cultural centers

100 entities of culture and arts of different forms of property

17 arts educational entities including all phases for arts education from school up to universities (more than 7,000 people study)

120 architectural and sculptural memorials of culture

4 municipal museums (museums stocks amount more than 829, 000 units (documents, objects of ethnography, painting and sculpture)

3 professional theatres

6 creative unions of writers, artists and designers

TOURISM

Tourism in Togliatti

130,000 people visited Togliatti in 2009

460 exhibits are located in museum and park complex – OAO AVTOVAZ Technical Museum

37 large tourist events are annually held in the City of Togliatti

42 hotels are located in the City of Togliatti

Zhiguli Snow maiden lives at the foot of the Zhiguli Hills. Every year she welcomes All-Russia Grandfather Frost coming to visit from the City of Veliky Ustyug.

In 2011, it is planned to hold a World Touring Car Championship in Togliatti.

Upon results of 2010

As of results of first year-half of 2011

TogliattiSamara Region

TogliattiSamara Region

Industrial production index (to the previous year), %

137,2 115,6 135,7 115,3

Rate of unemployment growth (to the previous year), times

0,58 0,6 0,53 0,64

Number of officially unemployed people by the end of a year, thousand people

9,8 34,9 8,0 30,0

Official unemployment level, % 2,1 2 1,7 1,7

Real wages dynamics, % 102,4 103,9 114,8 103,8

SOCIAL AND ECONOMIC INDICATORS FOR TOGLIATTI TOWNSHIP

KEY INDICATORS FOR THE ECONOMY DEVELOPMENT IN 2008 – 2010

The world

financial and econonomic

crisis exerted negative

influence on the activities in Togliatti industrial complex

2009 2010 2011

Sales of the manufactured goods in billion rubles 175.5 254.6

First 5

months - 119.3

Index of industrial production, % 56.4 137.2

First 5

months- 135.7

Overall investments (into fixed assets) including all financing sources, billion rubles

11,5 10.4

First year quarter

–

2.5

Commissioning of residential buildings, in thousands of sq.m.

96 200 161 600First year-

half

36 200

MAIN ENTERPRISES OF MACHINE BUILDING AND CHEMICAL COMPLEX

The major enterprises of Russian machine building and chemical industries

represent the basis of the city’s economy: AVTOVAZ, GM -

AVTOVAZ, Togliattiazot,

KuibyshevAzot, AVTOVAZAGREGAT, TOGLIATTICAUCHUK,

TOGLIATTI TRANSFORMATOR

22,8

4,8

66,2

4,1 2,1

STRUCTURE OF MANUFACTURED PRODUCTS SALES

Chemical Production – 22.8 %

Production of electrical

equipment – 2.1 %

Production of vehicles and equipment – 66.2%

Production of foodstuffs

– 4.1 %

Other products – 4.8%

OAO AVTOVAZ IS THE LEADING ENTERPRISE IN TOGLIATTI TOWNSHIP

Рынок Тольятти, России, Экспорт

The automotive industry, including production of automotive components, remains the key sector in the economy of Togliatti

Since 1970, AVTOVAZ manufactured over 26.000.000 LADA vehicles and automotive assembly sets.  AVTOVAZ supplies its vehicles all over Russia, exports to Ukraine, Byelorussia, Kazakhstan, Azerbaijan, Uzbekistan, Georgia, Egypt, and the European countries. Today, LADA vehicles present 57% of the national motor vehicle fleet. More than 25% of the annual auto sales in the Russian market fall onto the brand of LADA.  AVTOVAZ is an equal-right partner of Renault-Nissan alliance.  According to the business plan of AVTOVAZ, 1.200.000 vehicles will be manufactured with the factory’s production capacities by the year 2020, under three brand names: LADA, Renault and Nissan – in total, 9 new models, built on unified platforms.

A Comprehensive Investments Planning (CIP) is implemented over the territory of Togliatti. It is targeted to form a strategy for the city development that provides for a number of priority guidelines for state and private capital investments.

COMPREHENSIVE INVESTMENTS PLANNING

CIP of Togliatti envisages 22

projects of different industrial profile,

scale and financing sources, as well as

implementation timeframes

3

21

5

4

Establishment of Special Economic Zone of tourist and

recreational type

Creation of Special Economic Zone of

industrial and production type

Other projects

Establishment of Togliatti industry and technology

Establishment of IT-Park “Zhigulyovskaya Valley”

Main projects

STRATEGIC PLAN FOR TOGLIATTI TOWNSHIP DEVELOPMENT UP TO 2020

Preservation and improvement of environment for vital activity

Pilot projects and international collaboration

Local self-government development

Development of people’s potential

Economic development on the basis of

diversification and promotion of

innovative economy

A Strategic Plan for Togliatti Township Development up to 2020 that provides for 5 focal areas, has been adopted and is being implemented in Togliatti:

EXPECTED RESULTS

Expected results upon the

implementation of the strategic plan up to 2020 (as compared

with 2010)

366,4 %

227 %

32 %

200 %

Investments into fixed capital

Industrial production index

Share of backbone enterprises in theindustrial production output

Number of small businesses

Main mechanisms for implementation of the Strategic Plan are provided for in the Program for comprehensive social and economic development of Togliatti Township up to 2020, as well as in a number of long-term and administrative targeted programs designed for the above mentioned areas of development

SPECIAL ECONOMIC ZONE OF INDUSTRIAL AND PRODUCTION TYPE

✍Federal Law “On Special Economic Zones in the Russian Federation No.116-FZ dated July 2, 2005.✍RF Government Decree dated August 12, 2010, No. 621 “ On creation of the special economic zone of industrial and production type in the territory of Samara

Region”

•For first 5 years For profit tax of the businesses in industrial and production Special Economic Zones: - Fast-track procedure for recognition of R&D costs; - Accelerated depreciation;

Tax Description Rate

For Residents

Profit Tax*, in % 20 13.5

Property Tax*, % 2.2 0

Land Tax*, % 1.5 0

Transport Tax*, RUR 6 - 90 0

FREE CUSTOMS ZONE MODE: IMPORT DUTIES 0% VAT 0%

*Rate without VAT as of December 2010. Change of the tariff depends on consumption (number of hours).**Rate is effective within the territory of Stavropolsky District, Samara region.The values are indicated without VAT applicable within the territory of Stavropolsky District, Samara region, and are effective for December 2010

EUR /1000m366Natural gas (depends on tariffs)

Parameter Rate/ Tariff Unit

Land rent in SEZ**17771

EUR/haEUR/acre

Land value in SEZ**17 7257 090

EUR /haEUR/acre

Construction of a standard industrial building from 395

EUR /m2

Electrical power supply* (depends on tariffs) 50

EUR /MW-h

Water supply(including tariffs for drinking water and

industrial water)0.24

EUR /m3

Sewage water 0.22 EUR /m3

Drainage 0.099 EUR /m3

SPECIAL ECONOMIC ZONE OF INDUSTRIAL AND PRODUCTION TYPE

100% BUSINESS ENVIRONMENT

INFRASTRUCTURE

100% INDUSTRIAL INFRASTRUCTURE

IT-ПАРК «ЖИГУЛЁВСКАЯ ДОЛИНА»

ADVANTAGES OF RUNNING BUSINESS IN TOGLIATTI TOWNSHIP

Municipal and State Bodies Activity•Support and development of large, medium and small businesses.

•City authorities expressing interest and providing support in drawing in foreign businessmen to invest into the city.

Labor Resources• Well qualified and inexpensive manpower.

•High level of training and retraining of workers.•Cooperation with the educational institutions.

Infrastructure for running business•Highly developed infrastructure (M5 motorway, international airport , railroad,

river port, available power-generating capacities, etc.). •Available production sites, warehouse facilities, office premises.

•Unused land plots in the city area. •Lack of mass traffic jams.

Recreation industry•Infrastructure arranged for recreation (beaches, health care institutions, foreign TV

channels, restaurants, shopping malls, etc.). •Availability of personnel speaking foreign languages in restaurants, hotels.

The following main advantages of running business in Togliatti were

determined upon the results of an opinion poll held

among Togliatti-based foreign companies.

DEVELOPING BUSINESS IN TOGLIATTIDEVELOPING BUSINESS IN TOGLIATTI

Have you decided to

develop your business in

Russia?

Are you considering the idea to establish a new production

facility at the territory of

Togliatti Township?

We will offer you support

2. MEETINGS COORDINATION: The Department will assist you in preparation of the schedule for your stay in the City of Togliatti, meetings with the representatives of the local enterprises and authorities, will provide an interpreter/coordinator for the meetings

2. MEETINGS COORDINATION: The Department will assist you in preparation of the schedule for your stay in the City of Togliatti, meetings with the representatives of the local enterprises and authorities, will provide an interpreter/coordinator for the meetings

1. VISA SUPPORT: The Department will issue a letter of invitation for your Company representatives, to obtain a one-year visa

1. VISA SUPPORT: The Department will issue a letter of invitation for your Company representatives, to obtain a one-year visa

3. ACCOMODATION: The Department will assist you in making hotel reservation, and arrange your transfer from the airport.

3. ACCOMODATION: The Department will assist you in making hotel reservation, and arrange your transfer from the airport.

4. SEARCH OF THE SITE for your facility location: The Department will provide you with the city-largest data base regarding the availability of available private and municipal production facilities, warehouse and office premises

4. SEARCH OF THE SITE for your facility location: The Department will provide you with the city-largest data base regarding the availability of available private and municipal production facilities, warehouse and office premises

4. INFORMATION SUPPORT: The Department will make information available on the investor support programm in Togliatti, facilitated by the city and regional authorities, etc.

4. INFORMATION SUPPORT: The Department will make information available on the investor support programm in Togliatti, facilitated by the city and regional authorities, etc.

!

We will be happy to answer any further questions.Foreign Economic Relations Department and Territories Marketing,

Economics Development Division, Office of the Mayor, City of TogliattiRussia, Samara Region, 445020, City of Togliatti, 33, Belorusskaya St., office 501,

phone:(8482) 637 799, fax: (8482) 638 602

THANK YOU FOR YOUR

ATTENTION!