INFORMATION ABOUT THE INVESTMENT PROJECT

“The production engineering of the reducer gear drive high pressure fuel pump for

complete set of JSC “KAMAZ” motor vehicles

The purpose of the project - production of the reducer gear drive TNVD.

Required investment –5 854.8 thousand $;

Project implementation period – 2013-2015.

Project milestonesdeadlines

Determination of equipment suppliersApril 2013

Design of tooling for the manufacture of reducer gear drive high pressure fuel pump (TNVD)

June2013

Technical documentation development for manufacturing reducer gear drive high pressure fuel pump

October 2013

Providing materials, moulding and componentsNovember

2013

Manufacturing tooling for mass production of the reducer gear drive high pressure fuel pump

November 2013

Buying equipment (commissioning work on manufacturing operations)December

2013

Start of productionJanuary

2014

Full productionJanuary

2015

Investment project implementation period

Analysis of domestic and foreign markets

OJSC "KAMAZ“ is currently the absolute leader in the segment of trucks with gross weight from 3 tons in the Russian Federation possessing market share in the low - cost segment - 70%.

In 2012 they sold 40,190 vehicles, of which more than 32 thousand items were sold in Russia.

According to various estimates no more than 5% of Russian enterprises producing automotive components are compliant with ISO/TS-16949, which establishes specific requirements for quality management systems for suppliers of the automotive industry as well as other requirements for the quality and organization of production.

Opened joint-stock company "Borisov plant "Autogydrousilitel" is a specialized enterprise that produces steering gears, hydraulic boosters, cylinders and others components of automobile chassis for wide range of cars (from light vehicles to heavy lorries).

The company provides complete set of car assembly conveyors of the largest automobile plants in Belarus, Russia and Ukraine, including: JSC "MAZ", P/A "MTZ", OJSC "GAZ", OJSC "UAZ", JSC "PAZ", OJSC "KAMAZ", JSC "AZ Ural" , HC "AvtoKrAZ" etc.

Product distribution on the main markets

Republic of Belarus25,3%

Far abroad0,2%

CIS countries

74,5%

Secondary market22,4%

KAMAZ29,2%

GAZ7,3%

URAL2,6%PAZ

5,0%KAVZ0,3%

LIAZ0,2%

МАZ14,3%

МТZ9,9%

UAZ7,5%

Other plants0,8%

KRAZ0,4%

Sales pattern of output among main consumers,%

The largest share in the total supply of products turned out by the plant belongs to Russia - 72.4%. Realization in Belarus is about 25.3%.

Priority growth area for "Borisov plant" Autogydrousilitel“, JSC is the implementation of various projects which aim at creating high-performance enterprise with high production standards and modern technology and equipment.

Potential competitor of JSC "Borisov plant" Autogydrousilitel“ in complete set of “KAMAZ“ motor vehicles with the reducer gear drive high pressure fuel pump is "Murommash", OJSC (Russian Federation). Price of reducer gear drive of "Murommash", OJSC is 8 734.8 rubles. RF, the price of "Borisov plant" Autogydrousilitel“ (agreed price with OJSC" KAMAZ") is 8 215 rubles RF.

The developing technology for production of the reducer gear drive high pressure fuel pump provides many alternatives for its using. In case of reasons arising beyond the control of JSC "Borisov plant" Autogydrousilitel“ slump in sales of the reducer gear drive high pressure fuel pump the above-mentioned technology will allow to produce other components demanded in the domestic and foreign markets. In the manufacture of other automotive components the mean level of value added per worker will be 16.8 thousand dollars in 2015 .

Selected financial results of JSC "Borisov plant" Autogydrousilitel "

Indicator names units2012 г. 2011 г.

The reporting period

For the same period last year

Receipts from marketing goods, services products, works million rubles 714775 354580

Cost of sales products, works, services, management expenses, distribution costs

million rubles 662251 314431

Profit (loss) before tax, total million rubles 18906 18207

Including: sales income (works, service) million rubles52524

40149

Including: other income and current operating expenses million rubles -16144 -5791

Including : Profit (loss ) from investments, financial and other activities

million rubles -17474 -16151

income tax; changes in deferred tax assets, changes in deferred tax liabilities: other taxes and fees, calculated from the profit

million rubles 2516 2863

Net profit million rubles 16390 15344

Non current receivables million rubles - -

Fixed liabilities million rubles 44181 1743

Average number of listed employees people 3930 3912

Economic indicator units

As a result of

investment project

expectedin 2014

expectedin 2015

Sales proceeds per employee

million rubles 890,5 1113,1

thousands of U.S. dollars

104,3 130,3

Gross value added per employee

million rubles 504,5 631,1

thousands of U.S. dollars

59,1 73,9

Growth rate of labor productivity GVA (at current prices)

% 213,9 125,1

Balance of foreign trade thousands of U.S. dollars

2 607,0 5 214,0

Activities of the project

Share of export shipments

Requirement of "KAMAZ" in a new production of "Borisov plant" Autogydrousilitel "- the gear head TNVD is caused by the introduction in Russian Federation standards" Euro-4 ", what led to the development in "KAMAZ-Diesel“ fundamentally new power unit - gear head TNVD designed for use in standards "Euro-4" and "Euro-5". Its implementation will lead to a more complete and efficient combustion of the mixture with the lowest emissions and increase power with less fuel consumption and noise levels.

Requirement of "KAMAZ" in gear head TNVD in 2015 will be 25 000. The share of production of JSC "Borisov plant "Autogydrousilitel“ in the total amount of gear head TNVD will be 80%. The share of exports of the gear head TNVD manufactured by JSC "Borisov plant" Autogydrousilitel "is 100%.

NameTotal value , rub.

RF

including

domestic foreign

Metal roll 467,5 0 467,5

Cast iron and luminum castings

1 229 0 1 229

Bearings 302,8 0 302,8

Metal wares 102 22,4 79,6

Total 2 101,3 22,4 2 078,9

Ramp up local content

Composition of gear head TNVD 740.90-1111005-10

Price of gear head TNVD 740.90-1111005-10 is 8 215 rub. RF.Ramp up local content is 57%.

We invite investors for cooperation in field of making co producing

of the reducer gear drive TNVD

For all question please call: Chief engineer -1st Deputy of General Director

Michail Muraveinikov tel. (+375-177) 76-03-24; Deputy of General Director – Commercial Director

Yuri Komadei tel. (+375-177) 76-27-11; Deputy of General Director – Economic Director

Yuri Komadei tel. (+375-177) 76-44-93.