The potential for The potential for development of the electro development of the electro

technical industry and technical industry and manufacturing of manufacturing of

electronics and electrical electronics and electrical appliances.appliances.

• Presenter: Salimov Ravshan RihsitullaevichPresenter: Salimov Ravshan RihsitullaevichDeputy Chairman of the “Uzeltechprom” Deputy Chairman of the “Uzeltechprom” associationassociation..

The Uzbekistan association of The Uzbekistan association of radio, electronics, electro technical radio, electronics, electro technical

and instrumentation plants and instrumentation plants “Uzeltechsanoat”“Uzeltechsanoat”

13, Movaraunnahr str, Tashkent, Uzbekistan, 70004713, Movaraunnahr str, Tashkent, Uzbekistan, 700047Tel: (+99871) 1333631,Tel: (+99871) 1333631,1333628, 1333628, Fax: (+99871) Fax: (+99871)

13336311333631

• The “Uzeltechsanoat” association was The “Uzeltechsanoat” association was established in 1994 as a result of established in 1994 as a result of reorganization of the state concern of radio, reorganization of the state concern of radio, electronics, electro technical and electronics, electro technical and instrumentation plants instrumentation plants “RADIOELECTRONTEHPRIBOR” in accordance “RADIOELECTRONTEHPRIBOR” in accordance with the decision of the founders, decision of with the decision of the founders, decision of the Cabinet of Ministers of Uzbekistan No.144 the Cabinet of Ministers of Uzbekistan No.144 dated 17 of march, 1994 and the decree of the dated 17 of march, 1994 and the decree of the President No. UP-745 dated 21 of January, President No. UP-745 dated 21 of January, 1994 “On further deepening of economic 1994 “On further deepening of economic reforms, providing protection of the private reforms, providing protection of the private property and development of property and development of entrepreneurship”.entrepreneurship”.

The new structure and list of members was The new structure and list of members was authorized by the decision of the founders authorized by the decision of the founders and decision of the Cabinet of Ministers of and decision of the Cabinet of Ministers of Uzbekistan No. 205 dated 30 April, 2004 “On Uzbekistan No. 205 dated 30 April, 2004 “On improving the activity of The Uzbekistan improving the activity of The Uzbekistan association of radio, electronics, electro association of radio, electronics, electro technical and instrumentation plants technical and instrumentation plants “Uzeltechsanoat”“Uzeltechsanoat”

The structure of the shareholders’ capital The structure of the shareholders’ capital of the member joint-stock companies of of the member joint-stock companies of

“Uzeltechsanoat” Association“Uzeltechsanoat” Association

At present

33,8%

21,2%

45,00%

state owned sharedshares of foreign investorsother shareholder's share

After the implementation of the stateprivatization program for 2005-2006

40,20%0.30%

59,50%

The numbers for The numbers for 1.01.061.01.06 and and 1.01.07 1.01.07 are are forecasted based on the program of privatization for forecasted based on the program of privatization for 2005 – 2006.2005 – 2006.

44,7%

30,5%

34,3%

0,3%4,7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2003 2004 2005 2006 2007

years

Sat

et o

wne

d sh

ares

per

cent

age

Distribution of the member Distribution of the member companies of “Uzeltechsanoat” companies of “Uzeltechsanoat”

association based on the association based on the ownership formsownership forms

Percentage of the companies with foreign investments – 45%

3,00%

47,00%

8,00%

42,00%

Joint Stock Companies

State owned Companies

Limited Liability Companies

Other

Products, manufactured by the member companies of “Uzeltechsanoat” association.

58.40%58.40%

12,10%

4,10%4,80

4,50%

16,10

cable and wire products

electronics and computers

low voltage equipment

power transformators

refrigerators, elevators

Cable and wire products JSC JV “Deutsche Kabel AG Tashkent”, JSC JV “UZKABEL”, JSC JV“ Andijankabel”

Low voltage equipmentJSC JV “Uzeltectroapparat", JSC “Rele I Avtomatika”JV LLC «Elga-Asia», JV LLC

«Tashelectroapparat»

Electronics, telecommunication equipment and computers JSC “FOTON”, JSC “ALGORITM”,

LLC “Elekor”, JSC “ONIKS” RI “Microelectronics,

SPC «Qvark», SPB «FOTON», LLC RТО VТ, JSC «KINAP», JV «TS-

Technology»,

“Uzeltechsanoat” AssociationDistribution of the manufactured goods by companies

Power transformers and electro technical equipment JSC “Transformator”, JSC “Uzelectroterm” JSC

“Electromash”

JV LLC «UMT-Radio»JV LLC «SMG-ONIKS»

JV «UZGLASZAYDEN»

Service companiesLLC “Electroremont», JSC “ANZIS”, LLC “Computer

– Spectr”, LLC “Electronika”, LLC “Electrota’mir”, LLC “Saben”Refrigerators, elevators

JSC “SINO”, JSC “Samarkand elevator plant”

Dynamics of the production volumes inDynamics of the production volumes in 2000-2002000-20077

0

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007

BLN SUM

20.529.9 39.8

63.180.9

156.2

220

Dynamics of the export volumes in Dynamics of the export volumes in 2003-200 2003-20077

0

10

20

30

40

50

60

2003 2004 2005 2006 2007

TotalJV

In mln USD

20.7

10.8

29.4

16.8

30.4 28.8

58.5

55.3

60 57

Export markets

Composition of the exportComposition of the export

High and low voltage equipment

23,3%

Others; 1,0%

Electronics; 15,1%

Cable and wire 68.3%

Tendencies in development of the Tendencies in development of the consumer electronics and electrical consumer electronics and electrical

appliances market in Uzbekistanappliances market in Uzbekistan

• Existence of the material resources Existence of the material resources and qualified laborand qualified labor, , attractive for attractive for investments inflowinvestments inflow;;

• Favorable investment climate and Favorable investment climate and macroeconomic conditions macroeconomic conditions for for attraction of investmentsattraction of investments;;

• Real consumer demand for Real consumer demand for electronics and electrical applianceselectronics and electrical appliances..

Existing conditions in the industry for Existing conditions in the industry for development of consumer electronics and development of consumer electronics and

electrical appliances manufacturingelectrical appliances manufacturing

• Well developed manufacturing potential and qualified laborWell developed manufacturing potential and qualified labor. . Partially realized investment capacitiesPartially realized investment capacities. . The shares of the companies, well adapted for consumer The shares of the companies, well adapted for consumer goods manufacturing are put on sale.goods manufacturing are put on sale.

• The state shares of cable and low voltage equipment The state shares of cable and low voltage equipment manufacturing companies are already sold to foreign manufacturing companies are already sold to foreign investors.investors.

• Consumer electronics and electrical appliances market for the Consumer electronics and electrical appliances market for the locally made products is not fully occupied.locally made products is not fully occupied.

• The government of Uzbekistan is offering wide range of The government of Uzbekistan is offering wide range of benefits and preferences for the investor in manufacturing of benefits and preferences for the investor in manufacturing of consumer goods and parts for them. consumer goods and parts for them.

“Uzeltechsanoat” associationShare of the consumer goods in the production

2006

22.10%

77.90%

Consumer goods Non consumer goods

Forecast for 2008

55.00%

45.00%

Perspectives of the development of the Perspectives of the development of the industryindustry

• During the next three years, it is planned to implement During the next three years, it is planned to implement several large scale projects, many of them are included several large scale projects, many of them are included in the state programs, such as Localization program, in the state programs, such as Localization program, State investment program, Privatization programState investment program, Privatization program, , programs for cooperation with other countries and programs for cooperation with other countries and others.others.

• The priority in implementation is given not only to The priority in implementation is given not only to projects of establishing new companies, but also the projects of establishing new companies, but also the projects of improving the existing companies, after the projects of improving the existing companies, after the purchase of shares by foreign investors.purchase of shares by foreign investors.

JSCJSC “ALGORITM”“ALGORITM”

• 45,4%45,4% of the company’s shares are offered for sale to of the company’s shares are offered for sale to the foreign investor as part of the state privatization the foreign investor as part of the state privatization programprogram. . Investment obligations will be used for Investment obligations will be used for technical technical development of the companydevelopment of the company. .

• Modernization of production will allow for Modernization of production will allow for manufacturing of printed circuit boards and electronic manufacturing of printed circuit boards and electronic modules based on them, that can be used for modules based on them, that can be used for manufacturing electronics and electrical products, manufacturing electronics and electrical products, including electricity consumption meters, computer including electricity consumption meters, computer parts and home electronics.parts and home electronics.

JSCJSC « «FotonFoton»»

• 76% 76% of the company’s shares are offered for sale to of the company’s shares are offered for sale to the foreign investor, under a condition of additional the foreign investor, under a condition of additional investments, that would be used for the modernization investments, that would be used for the modernization of production facilities and production of of production facilities and production of semiconductorssemiconductors..

• It is planned to start manufacturing of DVD players It is planned to start manufacturing of DVD players and home entertainment systems.and home entertainment systems. Technological Technological equipment will be purchased with proceeds from the equipment will be purchased with proceeds from the loan of EXIMBANK of China.loan of EXIMBANK of China.

JSCJSC “ONIKS”“ONIKS”

• 54,92%54,92% of the company’s shares are offered for sale of the company’s shares are offered for sale to the foreign investor, with additional investment to the foreign investor, with additional investment obligationsobligations. . The investments should be used for The investments should be used for technical modernization of the crystal manufacturing technical modernization of the crystal manufacturing and establishment of new production facilities for the and establishment of new production facilities for the manufacturing of electrical appliances.manufacturing of electrical appliances.

• The company’s management has prepared an The company’s management has prepared an investment project for organizing a manufacturing of investment project for organizing a manufacturing of luminescent lampsluminescent lamps ((there is no such production in the there is no such production in the regionregion) ) and manufacturing of products based on and manufacturing of products based on fiberglass rowing, which is planned to be fiberglass rowing, which is planned to be manufactured manufactured starting fromstarting from 2006 2006 at “Uzglaszeiden” at “Uzglaszeiden” JV.JV.

Fiberglass mesh for the construction industry

Fiberglass cloth for electrical and thermal insulation

Fiberglass tapes for electrical and thermal insulation

Non woven felt for thermal and noise insulation

Fiberglass cloth, tape and mesh with high quartz content for thermal insulation and filtering of

aluminum cast

Fiberglass productsFiberglass products

JSCJSC « «SinoSino»»

• 88,8%88,8% of the company’s shares are offered for sale to of the company’s shares are offered for sale to the foreign investor by the end of 2007, under a the foreign investor by the end of 2007, under a condition of additional investments, that would be condition of additional investments, that would be used for the modernization of production facilities and used for the modernization of production facilities and purchase of new equipmentpurchase of new equipment. .

• The implementation of the project for installation of The implementation of the project for installation of modern high-tech machinery, will allow for production modern high-tech machinery, will allow for production of freezers, refrigerators and air conditioners with high of freezers, refrigerators and air conditioners with high level of localization.level of localization.

““UZELTECHSANOAT”UZELTECHSANOAT”

““UZELTECHSANOAT” association UZELTECHSANOAT” association invites potential partners to fruitful invites potential partners to fruitful

cooperation and welcomes new cooperation and welcomes new offersoffers