The State Finance Institution for Innovations Investor presentation

The State Finance Institution for Innovations Investor presentation «Innovation distinguishes between a leader and follower» Steve Jobs

SFII The SFII is the only governmental body, that involves credit resources in strategic industries of Ukraine’s economy. It is guided by: The Law of Ukraine of 18. 09. 1991 № 1560 -XII On Investment Activity The Law of Ukraine of 04. 07. 2002 № 40 - IV On Investment Activity The Cabinet Ministers of Ukraine 15. 06. 2000 № 979 “The issues of the State Finance Institution for Innovations ” (Charter SFII) The order of the State Agency for Investments and Innovations of 23. 10. 2008 № 88 “On approval of the procedure of the formation and the use of the State innovation financial institution. ”

SFII is non-banking financial institutions. Direct subordination to the Government – the Cabinet of Ministers of Ukraine. Multifunctional Financial Institution Significant experience in financing investment and innovative projects High reliability: governmental guarantees for attracting investment

The institutional capacities of the Institution. The financial support for economic entities. Attracting domestic and foreign investment The financing of marketing and scientific and technological research. Financing of project works. Crediting. Equity participation. Leasing Other

Experience Industry distribution of supported SFII projects through the provision of loans and leasing. The total financing up to 200 million dollars. Extractive industry and quarrying; 1 Wholesale and retail trade; vehicle repair Building construction Agriculture, forestry and fisheries ; 3 Production of vehicles ; 3 Military-industrial complex; 7 Metallurgical production ; 8 Real estate operations; 1 The production of the main pharmaceuticals ; 2 Food production; 8 Computer production, production of electronic and optical products; 4 transport, storage facilities, post and courier delivery ; 1

Examples of projects The completion of the first stage development of the Odessa gas field on the shelf of the Black Sea. “Chornomornaftogaz” The project includes: The acceleration of the beginning of the production of natural gas from Odessa and gas field on the shelf of the Black Sea in the technological solutions. Credit funds: $40, 000

Examples of projects The power plant “Energy 1” is located in Brovary. Feasibility study and calculation of investment performance into construction of an autonomous source of energy on the Powder metallurgy Plant. “Trade House” “Ukrainian powder materials. ’ The project includes : The construction and commissioning of small power generation using the cogeneration technologies Credit funds: $598, 293

Examples of projects The adoption of biofuel production which is based on the agricultural enterprises. Agricultural company “Pivden Hlib” The project includes : the creation of a full cycle of biodiesel production using the modern technologies; improving the efficiency of its own production of technical crop (sunflower, mustard) Credit funds : $2, 123, 986

Examples of projects Mass production of wheel units of aircrafts AN 140 AN 148100 A. M. Makarov Southern Machine-Building Plant The project includes: production of wheel units of aircrafts “Аn”; to ensure the enterprises of aircraft in Ukraine and other countries by reliable wheel units. Credit funds: $13, 097, 600

Examples of projects “Introduction of the cogeneration powersaving settings “Heat power complex" Motor Sich” “Motor Sich” The project includes : Manufacturing and launching into operation the cogeneration complex which is developed on the basis of Motor Sich of gas turbine power EH 6000 for combined heat of electrical and thermal energy. Credit funds : $4, 060, 000

Examples of projects The introduction of energy-saving technologies(“dry” cement production) at Ivano-Frankivsk Cement “Ivano-Frankivsk Cement” The project includes : The minimization of embodied energy for the production and the reduction of its cost; the reconstruction of the enterprise with the introduction of energy-saving technologies in the form of transfer the “dry” method of production that will reduce energy consumption of the enterprise to 40, 8% Credit funds: $1, 696, 800

The areas for investment projects The projects in the most investment-attractive and powerful industries of Ukrainian economy: Energy efficiency and energy conservation Agriculture Aviation and space field IT and telecommunication The large engineering

Industrial parks: territory for effective investment

FDI attraction tools - Ukraine Industrial parks § 14 industrial parks (4 working) in 11 regions of Ukraine § 500 hectares of free space for production placement

Industrial parks on the map of Ukraine

Industrial parks: specifics § Land plot has to be of industrial purpose § Area of industrial park has to be not less than 15 hectares and not more than 700 hectares § Industrial parks may be established on the lands of state, municipal or private property § IP is created for a period of at least 30 years

Legal framework § § § § The Law of Ukraine “On Industrial Parks” The Resolution of the Cabinet of Ministers of Ukraine The procedure for the decision to include the industrial park in the Register of industrial parks. The approval sequence of the list of equipment, facilities and accessories, the materials that are not produced in Ukraine are exempt from tax duty. The charge of the Ministry of Economic Development and Trade. The standard agreement on the establishment and functioning of the industrial park The order about the Register of the industrial parks.

Why we need to invest the industrial park? - The arrangement of infrastructure – out of the funds of the state and local budgets. - Privileges and preferences Ø The exemption from payment of the share participation in the development of infrastructure of the human settlements (up to 10% of the cost of construction project) Ø It shall be exempt from imposition of a duty of equipment and outfit that are not produced in Ukraine, smuggled by initiators, management companies and members of the industrial park. Ø The management companies will not pay the rent during three years at the time the treaty was concluded.

We believe that a better future is possible for Ukraine and Ukraine can be competitive in the global market. Thank you for your attention and invite you for cooperation.