2012

Investment project of integrated house-building factory construction in Chyukhloma

municipal district

Current project involves integrated house-building factory creation in Chyukhloma municipal district.

Enterprise’s project capacity is 180 000 m2,it is achieved by working in two shifts by 8 hours each one 250 days a year.

Main type of products is complete sets of wooden houses made by frame-panel-timber squared technologies.

Main application of complete sets is dwelling-houses construction.

Project’s value is 909 616 thousand roubles (excluding VAT).

Financial sources:- 30 % of own funds;- 70 % of borrowed funds.

Payback period – 6 years

Realization period – 8 years

Annual consumption of raw materials - 175 000 m3.

2

Project description

Production plan

3

№ ProductMeasurement

1st year

2nd year3rd

year4th

year5th

year6th

year7th

year8th

year

1 House-complete sets m2 - 30000 65000 75000 90000 105000 115000 180000

2Round timber

productsm3 - 46470 39435 37425 34410 31395 29385 16320

3 Sawn materials m2 - 54215 46008 43663 40145 36628 34283 19040

Realization plan

ProductMeasurement

1st year

2nd year

3rd year

4th year

5th year

6th year

7th year

8th year

House-complete sets

thousand

RUR0 570000 1296750 1496250 1795500 2094750 2294250 3591000

Round timber products

thousand

RUR0 92940 84390,9 80089,5 73637,4 67185,3 62883,9 34924,8

Sawn materialsthousa

nd RUR

0 325290 295368,2 280313,3 257731 235148,6 220093,7 122237

Totalthousand RUR

0 988230 1676509 1856653 2126868 2397084 2577228 3748162

Enterprise leases a land plot for cutting area and independently procures raw materials in order to ensure the interrupted work.

Project description

Total project value is 909 616 thousand roubles (excluding VAT), including 30% of own funds, 70% of borrowed funds. It is planned to get a credit at 12% per annum for 8 years.

For production organization it is necessary to acquire and build fixed assets, such as equipment, vehicles, buildings. All costs for fixed assets acquisition are planned for the first year of planning period. The depreciation is charged on a straight-line method.

4

Investments

Indicator thousand RUR

Working places organization 2300

Unforeseen expenses 88000

Project works 30000

Finished products warehouse construction 15000

Administrative building construction 5000

Ground construction 50000

Construction of building for the sawmill 27000

Boiler house construction 3000

Construction of workshop for house-building 55998

Aspiration system acquisition 20000

Acquisition of vehicles 30000

Acquisition of internal transport 8000

Acquisition of logging equipment 186319

Acquisition of equipment for the sawmill 98498

Acquisition of drying chambers and boiler equipment 110000

Acquisition of house-building equipment 178001

Acquisition of a land plot (10 ha) 2500Total 909616

Project description

5

Number of personnel

№ Staff unitMeasurement 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year

1 Leaders persons 2 4 6 6 6 6 6 6

2Administrative

personnelpersons 12 40 40 40 40 40 40

3Production personnel

persons 59 104 154 154 154 154 154

Total persons 2 75 150 200 200 200 200 200

By the fourth year of work, when it is the maximum personnel, average monthly salary will be 27 273,75 roubles.

Number of personnel

6

Infrastructure

For the organization of production the land plot of 10 ha is required.

First year of investment project realization involves construction of industrial objects, in the second year the enterprise will start to produce house-complete sets.

Water supply is planned to carry out by new wells, that will be created at the land plot.

The need for electricity is 8 000 000 kW*h per year.

Social efficiency indicators:

1. New working places – 200 workers:

share of production personnel - 77%,share of administrative personnel - 20 %,share of management - 3 %.

2. Average salary – 27 000 roubles.

Kostroma region administration is ready to provide the most favoured nation treatment for the investment project in part of exemption from payment of the following taxes payable to the regional budget during the payback period:

- exemption from payment of property tax;- reduction of the rate of profit tax from 18% to 13,5%.

7

Economic, social and budgetary efficiency indicators

Economic, social and budgetary efficiency indicators

IndicatorWith privileges,

thousand roublesWithout privileges, thousand roubles

Revenue (excluding VAT) 15 370 733,3 15 370 733,3

Paid for suppliers and employees 11 131 236,6 11 131 236,6

EBITDA 4 239 496,7 4 239 496,7

Depreciation 491 396,9 491 396,9

Paid taxes 718 264,1 763 690,9

Interests on loans 873 231,2 873 231,2

Net profit 2 156 604,5 2 111 174,7

NPV 793 393,23 759 316,82

IRR, % 36,68 35,04

Economic efficiency indicators with/without privileges during the whole planning period:

8

Budgetary efficiency during the whole planning period:

9

Economic, social and budgetary efficiency indicators

IndicatorWith privileges,

thousand roublesWithout privileges, thousand roubles

Federal budget, including 2 820 645,0 2 819 511,4

VAT 2 766 732,0 2 766 732,0

Profit tax 53 913 52 779,4

Regional budget, including 543 013 589 573,2

Profit tax 485 217 475 014,9

PIT 33 948,5 33 948,5

Property tax 23 847,6 80 610,1

Municipal budget, including 26 549,3 26 549,3

PIT 14 549,3 14 549,3

Land tax 12 000 12 000

Social payments143 286,5 143 286,5

Total 3 533 493,8 3 578 920,4