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Skolkovo TechnopolisConcept

06.10.10

www.i-gorod.com

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Create conditions to develop innovation in priority industries and its furthercommercialization: space and telecom, medical equipment and pharmaceuticals,energy efficiency, information and nuclear technology

Technopolis Goal

Skolkovo is to become an innovation hub that will stimulate innovative entrepreneurship and disseminate entrepreneurial culture across the country to integrate Russia into the global economy:

• Creating globally competitive products and services based on cutting-edge research;

• Establishing global innovative companies in Russia;

• Fostering advancement of human capital in Russia by attracting foreign specialists and creating conditions for local innovative talent development.

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Skolkovo national foundation governance• Non-profit-making Organization “Fund for Development of the

Center for Elaboration and Commercialization of New Technologies” is in charge of the Skolkovo project – the Management Company

• Supervised by the Board of Trustees is chaired by President Dmitriy Medvedev

• The Fund’s board is a supreme body of management co-chaired by Mr. Victor Vekselberg and Mr. Craig Barrett joined by the top global as well as Russian business

• The Fund’s Advisory Scientific Board is represented by 25 leading Russian and international scientists co-chaired by Nobel laureates DRS. Jores Alferov and Roger Cornberg

• President, Mr. Viktor Vekselberg is in charge of ongoing affairs

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MEMBERS OF THE FUND’S BOARD • VICTOR F. VEKSELBERG CO-CHAIRMAN OF FUND’S BOARD, FUND’S PRESIDENT• CRAIG R. BARRETT CO-CHAIRMAN OF FUND’S BOARD• VAGIT Y. ALEKPEROV, PRESIDENT OF OIL COMPANY LUKOIL• ANATOLY A. ALEXANDROV, RECTOR OF THE BAUMAN MOSCOW STATE TECHNICAL

UNIVERSITY • ALEXANDER (SASHA) V. GALITSKY, MANAGING PARTNER, ALMAZ CAPITAL PARTNERS• MIKHAIL V. KOVALCHUK DIRECTOR OF THE RUSSIAN SCIENCE CENTER ‘KURCHATOV

INSTITUTE’• ANATOLY B. CHUBAIS CEO, CHAIRMAN OF THE BOARD OF DIRECTORS, THE RUSSIAN

CORPORATION OF NANOTECHNOLOGIES (RUSNANO)• VLADIMIR V. RASHEVSKY, DIRECTOR GENERAL, CHAIRMAN OF THE MANAGING BOARD

OF OJSC ‘SUEC’ • MARTIN BOUYGUES, CHAIRMAN AND CEO, BOUYGUES• PETER LÖSCHER, PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SIEMENS AG• RATAN N. TATA, CHAIRMAN OF TATA SONS• ESKO AHO, EXECUTIVE VICE PRESIDENT, NOKIA • JOHN T. CHAMBERS, CHAIRMAN AND CHIEF EXECUTIVE OFFICER, CISCO• ERIC SCHMIDT, CEO, GOOGLE INC.

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Skolkovo national foundation governance

Non-profit-making Organization

“Fund for Development of the Center

for Elaboration and Commercialization of

New Technologies”

Subsidiary company (construction)

Subsidiary company (property administration)

Subsidiary company (innovation governance)

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Mandate of Skolkovo Fund to act as a management company

This Mandate is developed according to the directive of the President of the Russian Federation №446-rp of 2 July 2010.

The Fund has the following authorities:

• Developing the territory of Center; • Attracting Russian and foreign Participants;• Managing assets of Center;• Establishing the learning and research system in Center;• Facilitating development and R&D activities of Center;• Providing support for commercialization system of Center scientific

achievements;• Providing information support for Center activities.

Research and Education Center

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Skolkovo Institute of Technology

Skolkovo OpenTech

•Located in Skolkovo•Set of graduate schools•International students

•Functions on several sites•Set of lectures, seminars, courses, summer schools•Russian students

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The SIT envisions a capacity of approximately 250 research teaching fellows and 1,000 students. The first class is expected to graduate in 2017.

The process of establishing SIT includes:

• Creating interdisciplinary research and engineering centers;• Attracting the best graduates from leading Russian and foreign universities for masters

programs;• Developing partnerships between laboratories of universities with industry and leading

research and educational centers.

Objectives are:

• Shaping ecosystem fostering innovations;• Producing cutting edge research;• Preparing technological entrepreneurs and professionals for the ecosystem and

resident corporations;• Establishing conditions for spill-over of best practices into the national innovation

system.

Skolkovo Institute of Technologies

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Skolkovo Extraterritorial Structure Launch - The exterritorial hub

• will connect local and remote ideas, money, talent resources and joint activities without physical boundaries

• will be implemented on the base of best “cloud computing” practice and the set of required services to support

• will open opportunity to:– Launch off-site: research, start-ups, education and

entrepreneurship programs, incubators, etc.– To tap and commercialize Russian research and promote

research results and expand over the world

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Skolkovo model

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Shared centers, Including “Skolkovo

Cloud”

Multifunctionalstate center

Business incubators and Venture Capital

Developed Communication and

Business infrastructure

Living quarters

Kindergartens and schoolsHospital and

outpatient clinic

Sports and healthfacilities

Modern office, residential and

infrastructure environments for innovation

Innovative buildings and social services

Services (legal, businessconsulting, etc.)

Innovations

Small and medium-sized companies

Start-Ups

Skolkovo Institute of technologies(Scientists

and students, Research teams)Corporate

R&D centres

Innovative technology

Innovative products

New businesses

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Technopolis Layout Approaches

Low-rise building area

High-rise building area (barrier from Highway and Moscow urban development areas)

Medium-rise building area

Downtown

Base industry areas

Total population: 14.000Total employment: 11.000

The Technopolis to be connected with Moscow by Minskoye, Skolkovskoye and Borovskoye motorways and Smolensk and Kiev railways. Vnukovo airport is situated near (23 km), 54 km to Domodedovo airport, 36 km to Sheremetyevo airport.

All building spaces will be in the Fund’s property and will be leased out.

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What do we expect from a major partner?

• Establish R&D Center and laboratories;• Provide access and support to R&D facilities, laboratories and start-

up companies;• Contribute a significant monetary or research equipment donation

into research centers;• Support Skolkovo educational programs;• Provide a performance guarantee with regard to 25 years lease of

the real estate property or invest in such real estate development;• Introduce Skolkovo related KPIs into internal management

evaluation system.

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Our major partnersMassachusetts Institute of Technology (MIT) –the contract was signed

• educational and research programs in collaboration with leading universities and research centers;

• creation of a network of joint research laboratories;• foundation of a new academic center.

Boeing – the memorandum of understanding was signed• establishment of an office of the Moscow Boeing Center for the

design of modern civil aircraft (in collaboration with Russian companies Progresstech and Luxoft) based at the Center.Cisco - the memorandum of understanding was signed

• establishment of a research center based at the Center;• investments in Russian projects aimed at developing innovations and

creating the conditions for entrepreneurial activities;• First-time implementation of Cisco's latest concept of Smart +

Internet-Connected City in Russia to increase the level of communication within communities.

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Our major partnersSiemens - the memorandum of understanding was signed

• creation of a Siemens research and development center;• cooperation with the project in R&D in such areas as energy

efficiency, materials and software development, and transport infrastructure of the Center;

• support of education programs and start-up business incubators.Kurchatov Institute Russian Research Center - the memorandum of understanding was signed

• Kurchatov Institute will supply its scientific base for research activity of Participants of the project before completion of building Center infrastructure and later on.

• The memorandum of understanding was signed with leading Russian universities.

COMPARISON OF TAX REGIMES AND OTHER INCENTIVES ENSURED

FOR SKOLKOVO PROJECT PARTICIPANTS

According to the Federal Law on

Skolkovo Innovation Center

(the President Dmitri Medvedev signed a bill into law on September, 28th 2010)

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No. Legal regime For Project Participants For “ordinary” business entities (other than project participant)

1. Value added tax (VAT) Exemption from VAT obligations for ten years (upon condition of non-exceedance of profit over RUR 300 million as from the beginning of the year following the year when the amount of proceeds exceeded one billion rubles)

10 - 18%

2. Income tax Zero income tax rate (upon condition of non-exceedance of profit over RUR 300 million as from the beginning of the year following the year when the amount of proceeds exceeded one billion rubles)

20%

3. Property tax Tax exemption not exceeding 2.2%

4. Insurance premium rates

- RF Pension Fund 14% 20% in the year 2010 26% from the year 2011

- Social Insurance Fund 0% 2.9%

- Federal Compulsory Medical Insurance Fund

0% 1.1% in the year 2010 2.1% from the year 2011

- Territorial Compulsory Medical Insurance Funds

0% 2% in the year 2010 3% from the year 2011

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No. Legal regime For Project Participants For “ordinary” business entities (other than project participant)

5. Tax accounting as prescribed for the simplified tax system mandatory to maintain in complete form

6. Bookkeeping Possibility to maintain records under simplified system with yearly proceeds not exceeding one billion rubles.

mandatory to maintain in complete form

7. Customs duties Refund of import customs duties and VAT expenses paid during import to the RF customs territory.

Payment of complete amount of customs duties plus 10-20% VAT with no option of subsequent refund.

8. Technical regulations Possibility to comply selectively with technical standards and regulations of the RF and customs union participants or, in certain cases, member-states of the Organization of Economic Co-operation and Development.

Mandatory compliance with technical regulations of the RF and customs union participants.

9. Ensuring sanitary and epidemiological security

Possibility to comply selectively with technical standards and regulations of the RF and customs union participants or, in certain cases, member-states of the Organization of Economic Co-operation and Development.

Mandatory compliance with technical regulations of the RF and customs union participants.