TO FOREIGN INVESTORSAccording to the Decree of the President of the Republic of Uzbekistan #PP-2340“On measures for increasing the shares and importance of the private property inthe economy” dated from 28.04.2015, state shares in Charter capital of the JSC“Qizilqumcement” in amount of the 35,9% should be sold. You can find fullinformation on acquiring the stake of the shares in site of State Committee onprivatization, demonopolization and development of competition at www.gkk.uz.

Brief information about Company .

• JSC «Qizilqumsement»Name of the Company

• Cement manufacturingIndustry classification

• JSC “O’zqurilishmateriallari”Departmental affiliation

• 210103, city Navoi, Navoi-3Legal address

• Joint Stock CompanyForm of ownership

• General Meeting of ShareholdersSupreme management body

• 702 bln. 601 mln. 533 thousand sumsCharter capital

•State share – 35,9%•Share of JSC “O’zqurilishmateriallari” – 51,0%•Other shareholders – 13,1%

Structure of shareholdersas of 15.07.16

• 447 516 900 pcs.Stock's quantity

• 1 570 sumsNominal price

per 1 piece

• JSCB Hamkorbank, Tashkent city, Chilanzardistrict branch

• Bank account 2020 8000 3003 5623 6001• Bank code - 01108• Activity code- 16112• TIN - 200002878

Banking requisites

• 3 511 personsAverage number of workers

• 1 203,32 hectaresTotal area

• 1 trln. 68 bln. 122 mln. 604 thousand sumsAssets

• 814 bln. 265 mln. 807 thousand sumsSales

• 10 bln. 44 mln. 471 thousand sumsNet profit

Organization of production of JSC «Qizilqumsement»1. The company is equipped with three production lines for the production ofclinker.2. The main technological equipment of the plant:

Cone crusher coarse crushing KKD 1000/150 (2 pieces), capacity of1000 tons of crushed rock mass, each; Hammer crusher secondary crusher SMC-97A (4 pieces), 500 tons ofshredded rock mass per hour each; Raw Mill sized 4,2h10 meters, with an air passing separator (8 units)capacity - 120 tons of raw material mixture in an hour each; The rotary kiln sized 6.4 / 7,0h95 meters from the cyclone pre-heater(2 pcs.), Capacity - 3 000 tons of clinker per day each; The rotary kiln size 4,5h97,5 meters from the calciner reactor (1 unit.)Capacity of 3000 tons of clinker per day; Cement mill sized 4,0h13,5 meters (7 pcs.) capacity of 80 tons ofcement per hour each.

Preparingtherawmeal Grinding Cementclinkerproduction

3. The main source of raw materials:Carbonate resources - Limestone of Karmana minefield - own quarry.

Industrialstocksfor 01.01.2016 - 129.0 milliontons

Aluminous raw materials - shale deposits of Karmana - own quarry. Industrialstocks for 01.01.2016 - 78.0 million tons.

The ferrous raw materials - Diabase piroxenite of Tillyatag minefield - ownquarry. Industrialstocksfor 01.01.2016 - 32.0 milliontons.

Dross - Industrial waste of "Uzmetkombinat", purchased raw materials.

4. Mineraladditivesusedinthecement:Diabasepyroxenite – ofTillyatagfield;Gypsum - gypsum deposits of Karnab, Samarkand region. Industrial stocks for

1.1.2016 comprised 4.7 million tons.Ashes - industrial waste of Angren TPP, purchased raw materials.

The history of development of the Company

Date Event Name AnnualCapacity

1977 ICommission of technologicalline for cementproduction

1milliontons

1978 IICommission of technologicalline for cementproduction

1milliontons

1989 III Commission oftechnological line for cementproduction

1 milliontons

1996,1998,2006

Commissioningofproductionlines №1,2,3forcementpackaging

750thousand

tons

2002 Mastering the production of refractory fireclayproducts 2500 t.

2004 Development of crushed stone production240

thousandtons

2006 Mastering the production of polypropylene bags 16.5 millionunits

2007 FillingofLPGincylindersincars2008 Mastering the production of welding electrodes 100 t.2011 Mastering the production of cement slate 60 mln.u.p.

2015 Mastering the production of additives and buildingquicklime

thousandtonnes

2016 Mastering the production of modern reinforcedconcrete products

162thousand m2

InfrastructureAuxiliary production

Energy:

The elevator service, Compressor plant, Electrical Repair Shop,Electrical-technical Laboratory, Supply shop, "Communication" workshop,Workshop of water supply and sewage system.

Mechanical:

Mechanical repair shop, Repair parts, Planning for the production ofconveyor rollers, Shop for the production of welding electrodes.

Testing and measuring:

Automation of process control systems, central laboratory andtechnical control department, Laboratory of non-destructive testing, automation ofenterprise management systems.

Construction:

Department of capital construction, repair and construction site, Landimprovement and consumer goods, road repair and construction site.

Social assets:

Dispensary, numberofbeds - 76 seats; HealthService; HealthCamp"Shaboda", numberofbeds - 300 beds; Plotbyoperatingandtheeconomicservices;Intensivegardenwithoverallof 100 hectaresatNurataneighborhood, Navoi;IntensivefishbreedingfarmonhealthylifestylezoneofLakeAidarkulinNurataFarmsforproductionofmeatandmilk.

Vehicle Equipment of the CompanyTransportationfacilities:Roads - 34 km.The total number of equipment - 313 units, including: trucks - 101 units,. special purpose machinery - 24 units,. buses, vansandcars - 78 units. tractors and trailers - 110 units.Railway economy:27 access roads with the length of 28.2 km.The total number of equipment - 10 units, of which: Locomotives TEM 2 series - units, railway cranes - 2 units, 3 cariages.

Human resources of the CompanyThe company is staffed with employees in accordance with the approved

"limits on labor" and "staffing". Renewing the staff is carried out via youngprofessionals replacing the veterans of production (workers who reached theretirement age) and the natural departure of employees. Appointment in MFI isbased on the requirements of the job descriptions and availability of vacancies.

The number of employees at the company ensures the implementation of thedevelopment strategy adopted by the company.

Personnelstructure, Level of their education

Based on the development and modernization plans for the years 2016-2020biennium, the main strategic objective of the personnel policy can be formulated asfollows: Achieving high labor productivity is the main condition for theintensification of production.to achieves high productivity - the maincondition for the intensification of production.

Quality Management SystemJSC «Qizilqumsement» has been running Quality Management System since

2004, and it operates according to requirements of international standard ISO9001-2000.

Workers81%

Specialists4%

Management

4%

Productionpersonnel

4%

Technicalpersonnel

7%

Secondaryspecial39%

Higher19%

Secondary42%

Personnel trainingTraining and teaching at

the shops of the Company(more than 240 people per

year)

Work with colleges (1college)

Training and re-training at theeducational centers of the

Republic (near 160 people peryear)

In 2005, the International Accredited Certification Authority TÜVCERTconducted the audit certification of the Company with the positive result and gavethe Certificate of Quality, testifying to the introduction of the QMS.

In 2014 it carried out a re-certification audit by the certification bodywith PEC Ltd. «SERT MANAGEMENT» with demand of UzDST 9001: 2009 /ISO 9001: 2008 and received a certificate with registration number TIC 15 10074910 from 12.10.2015.

In 2015, work began on the development and implementation of healthmanagement system and occupational safety (the OZ and OBT) in accordance withthe requirements of OHSAS 18001: 2007, as well as the introduction of anenvironmental management system (hereinafter SEM) in accordance with ISO14001: 2004.

In the process, required procedures have been developed to manage theelements of management systems OZiOBT and EMS, as well as work has beencarried out on the integration of certain types of procedural documents to theexisting documents on quality management system. The first internal audit of threestandards was conducted.

In April 2016 the certification audit was conducted by the certification bodyLLC with PEC «SERTMANAGEMENT» for integrated management systems(hereinafter IMS), including the quality management system (ISO 9001: 2008),industrial safety and occupational health and safety management system (OHSAS18001: 2007) and environmental management system (ISO 14001: 2004). At theconclusion of a positive outcome of the external audit a certificate shall be issuedconfirming the introduction of ISM.

Currently, according to the requirements of the ISM, the Company iscarrying out internal audits to solve strategic tasks and to analyze customersatisfaction, the administration is providing timely results of the analysis in orderto maintain the action of ISM.

ProductionofmainproductsJSC "Qizilqumsement" is a leader in the production of cement in Central

Asia, and today the company carries out production of cement by "dry" methodmore than ten brands and types of cement.

Name of product Standards Brands Application area

Portland cement

GOST 10178-85

PC 500D0

It is used for generalconstruction purposes

PC 500D5PC 400D0

Portland cementwithout additives,

normalized

PC 400-D5PC 400-D20

PC 400-D0-NPC 500-D0-N

Sulfate-resistantPortland cement

GOST 22266-94 SSPTS 400 D0

Used in the constructionof hydraulic structures,

exposed to sulfate-containing waters.

Portland cement withadditive composition

UzDSt 2830:2014 PC 400 - KD 20 It is used for general

construction purposes

Portland backfillcement GOST 1581-96 PTC I - 100

It is used for cementingoil, gas and special

wells.Portland cement for

the production ofasbestos cement

products

UzDSt 913-98 OCA

It is used for theproduction of asbestos-

cement corrugatedsheets (slate) and pipes.

Being a leader in cement production in the Republic, according to the resultsof 2015, the share of the Company among cement plants in Uzbekistan amountedto 41.8 percent.

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2012 2013 2014 2015Total in Republic 6782,5 6990 7270,2 8339,6JSC "Qizilqumsement" 3282 3334 3430 3490

6782,5 6990 7270,2

8339,6

3282 3334 3430 3490th

ousa

nd to

ns

Cement production since the plant start-up (tons)

143 599604 783626 507

925 1731 050 100

1 411 8001 696 970

1 769 1201 894 000

1 976 0002 048 500

2 162 0002 733 500

2 901 0002 717 600

2 664 0002 346 000

1 860 0001 220 0001 254 500

1 435 0001 450 0001 475 100

1 287 5001 501 000

1 617 0001 888 888

2 325 7882 507 777

2 683 7772 600 777

3 048 8883 145 1113 155 5003 165 000

3 282 0003 334 000

3 450 0003 490 000

197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015

Terms of delivery and packagingOn JSC «Qizilqumsement» shipment of the main type of cement production

is carried out in two ways – in bulk and packaged.

The company has 24 cement silo (storage) with a total capacity of 105 000tons. Shipment of cement produced mainly by railway cars (87%), as well as byroad vehicles (13%).

Packaging of cement is carried out by three Mӧllers production lines with anannual capacity of 750 tons. The cement is packed into 50 kg, 40 kg, andpolypropylene (or) in paper bags, as well as in «BigBag».

Shipment of produced goods is carried out via exchange tickets, under directcontracts, and through company stores under the terms of 100% prepayment.

PRODUCTIONOFOTHERPRODUCTSThe company, along with the modernization of cement production,

implements diversification of production in stages in order to expand the range ofproducts, and to achieve stable growth in industrial production and increase inexport volumes.

At present, JSC «Qizilqumsement» manufactures a wide range of buildingmaterials for commercial purposes and for personal consumption of non-coreactivities:

CementSlate

In May 2011, the first production line of cement slate was commissionedwith a project capacity of 30,000 t.u.p. per year (GOST 30340-95). In September2011, second production line of slate was commissioned with a project capacity of30,000 t.u.p. It is widely known roofingmaterial throughout the world.

In addition, the slate has a lowthermal conductivity, high frost resistance,resistance to adverse environmentaleffects. It is a fireproof material which has

been used for several decades, and can be easily machined and mechanicallytreated.

Rubblefromdenserocks

The first line for the production of crushed stone is set in 2004 (GOST 8267-93). Currently, there are four lines for the production of crushed stone with a totalcapacity of 240 tons per year.

Rubble from dense rocks SCHPS is grained inorganic particulate materialobtained by crushing rocks, passing among extracted overburden and host rocks orrejects from mining Companies, followed by sieving the crushed product.

The advantages of such rock and their rubble are strength, frost resistance, waterresistance. All these qualities are indispensable in the construction.

Weldingelectrodes

Welding electrodes with basic coating of UONII-13/55 are designed forwelding of critical constructions made from carbon and low-alloy steels, when themetal welds have increased requirements for ductility and toughness. It isrecommended, particularly for welding structures operating at low temperatures (-40 C). ThecoreoftheSV-08 wireSv-08AGOST 2246-70. Diameters of electrodesproduced comprise 2.0; 2.5; 3.0; 4.0 and 5.0 mm. Capacity comprises up to 100tons per year.

Refractory fireclay bricks

In 2002, the station was put into operation for the production of refractoryfireclay products of PV brand with a project capacity of 2.5 tons per year. Productsof this site are made on the basis of local raw materials.

The main purpose of our productsincludes the protection and use as liningsin steelmaking furnaces.

Faction from 40 mm to 70 mm

Faction from 20 mm to 40 mm

Faction from 5 mm to 20 mm

Faction from 5 mm to 10 mm

Ready-mixed concrete and concrete products

Concrete is composed of a mixture of cement, aggregates and water ofdifferent sizes. In JSC "Qizilqumsement" the following types of concrete solutionis produced: M100, M200, M300, BSG-15 P1F-150 W-4. The project capacityconstitutes 22.0 thousand tons per year. Sand and gravel used in concrete must beclean, because dirt reduces its strengthMaterialsarewellwashed, ifnecessary. Thebrand of cement which allows you to obtain the necessary strength of concreteshould be used. Watershouldalsobeclean.Theconcretemassmaybeofdifferentconsistencies (density). Stiff (likewetearth),whenlaying, requiresastrongseal; plastic (moredenseandrelativelymovable)requireslesscompaction; cast - amovingmass, almostgravityfillsouttheform.

Also, the Company produces the following products from cement andconcrete: masonry blocks, slabs for pavement, concrete foundation blocks of FBStype.

Manufacturing of additives and construction quicklime

In February 2015, a rotary kiln with pre-heater of the size 2,5h55,42 m, witha capacity of 37 000 tons of lime per year started operating.

Also, JSC "Qizilqumsement" produces polypropylene bags and LPGcylinders filled with oxygen and gas for their own needs.

Sales of products of JSC «Qizilqumsement» (on the side) (thousand sums)

Name 2012 2013 2014 2015Cement 535562371 73846914 820837760 678343485Clinker Portland - 5654247 1761923 -Gypsum stone - 192622 416246 22736Packing services 14028161 20521665 21065547 34567536Slate 18488508 27127498 25003697 38304668Crushed stone 2387581 625377 1125133 1152527Sand 16665 683 34737 177270Concrete - 151023 389737 270740Slag stone 55293 85808 127875 122562Firebrick 15718 21973 11740 62006Electrodes - - - -Diabase pyroxenite - - - 1738357Building lime 3642590PBS 19661Oxygen cylinders 3379

n total 570554297 790228809 870774395 758427516

Analysis of competitive environmentIn recent years, JSC «Qizilqumsement» demonstrated stable operation and

showed good production and financial results, confirming its status as one of theleaders of the construction industry of Uzbekistan.

Overview of cement industryCement is a basic material used in the construction, reconstruction of

buildings, construction of new industrial plants and infrastructure. Cement production

According to JSC "Uzstroymaterialy" cement production constitutes about76% of the structure of production of building materials.

Dynamics of cement production in the Republic of Uzbekistan, (thousandtons)

Name 2008 2009 2010 2011 2012 2013 2014 2015

JSC «Qizilqumsement» 3048,9 3145,1 3155,5 3165,0 3282,0 3334,0 3450,0 3 490

JSC"Akhangarancement" 1839,1 1774,2 1701,3 1651,0 1533,7 1620,1 1700,5 1 770

JSC "Kuvasaycement" 932,0 1037,9 1055,9 1065,1 1042,2 1030, 1039,1 1 080,5

JSC "Bekabadcement" 815,4 893,5 881,2 817,0 924,6 1005,9 1000,2 1 400,3

JV "Ferganatsement" - - - - 20,0 64,3 80,5 88,5

Jizzakh cement factory 155,12 374,4

Total 6 635,4 6 850,6 6 793,8 6 698,1 6 802,5 7 054,3 7 425,4 7 829,2

Source: JSC "Uzstroymaterialy"Cement production has increased over the years 2002-2014 from 3.7 mln.

tons to 7.8 million tons in 2015. It is projected that cement production inUzbekistan will grow annually by an average of 3.5% and, in 2019, it will reach8.9 million tons.

In subsequent years, there was a moderate increase in production volumes asa result of the execution of the "State Program of industrial development ofUzbekistan for 2011-2015.".

To this date, the bulk of cement production is distributed among fourexisting plants: «Qizilqumsement» JSC (42%), the AO "Akhangarancement"(21%), JSC "Kuvasaycement" (13%) and JSC "Bekabadcement" (17%).

JSC «Qizilqumsement» started in 1977 in NavoiyManufacturing ofcement is carried by dry method, and overall manufacturing power amountsto 3,430 million tons per year. JSC "Akhangarancement" began its activity in 1961 in Tashkent .Cement production method et, with manufacturing capacity of 1.7 milliontons annually. Since 2006, the company has been a part of Russian"Eurocement group" JSC "Kuvasaycement" was established in 1932 in Fergana region.Factory production is performed by wet process, manufacturing powerconstitutes about 1.1 million tons per year. Since 2006, the company hasbeen part of “United Cement Group”, the largest cement company in CentralAsia. JSC "Bekabadcement" began its activity in 1929 in Tashkent.Method of cement production - wet. Its manufacturing power amounted to0.8 million tons per year. Since 2006, the company has been part of the“United Cement Group” holding.In 2013-2014 new cement plants JV "Ferganacement" and Jizzakh cement

plant entered started its activity, the method of production - dry, capacity 0.15million tons and 0.75 million tons per year, respectively.

1. JSC «Qizilqumsement»

2. JSC «Akhangarancement"

3. JSC "Quvasoycement"

4. JSC "Bekabadcement"

5. JV"Fergana cement."

6. Jizzakh cement plant;

Consumption of cement

The increase in demand for cement came against the backdrop of thedynamic development of the construction industry in the country and inneighboring countries.

The development of the construction market was influenced by the followinggovernment programs and regulations:

­ Resolution "On the acceleration of infrastructure development, transport andcommunications construction in 2011-2015";

­ Program "On the priorities of industrial development of the country in 2011-2015,";

­ "Program for the construction of individual housing on standard projects inrural areas."In the framework of the performing the plan of modernization of the

industrial sector of the economy, were established Special Economic Zones (SEZ)

"Jizzakh" (2013) "Angren" (2012), and "Navoi" (2008), which contributed to thegrowth of the construction industry.

The volume of construction in the Republic of Uzbekistan (bln. sums)

Source State Committee of the Republic of Uzbekistan on statistics.

The largest amount of construction in monetary terms came from thefollowing regions: Tashkent, Bukhara, Kashkadarya, and Samarkand region,located in the south and the east of Uzbekistan.About 25% of the total volumeofconstruction accounted for only in the city of Tashkent.

The main suppliers of cement in the central part (including markets inTashkent and Tashkent region) are JSC "Ahangarancement" and JSC"Bekabadcement», JSC «Qizilqumsement» sold in this market 227.6 thousand tonsof cement in 2015, by creating competition abovementioned market players.

Located close to the center of Uzbekistan, the Company JSC«Qizilqumsement» is the main supplier of cement to the south and west parts of thecountry, where there are no companies producing cement.

Total of 3 268.1 thousand tons of cement were sold in 2015 in the Republic,and the main market was in Kashkadarya region.The share in deliveries of cementby the company to this region in 2015 amounted 22.91%.To the major consumersof cements - the Bukhara region (13.83%), Navoi region (13.45%), Surkhandaryaregion (13.43%), Samarkand region (13,28%), Company has delivered 2 513.7thousand tons of cement in total.

Fergana Valley is located in eastern Uzbekistan, which includes Fergana,Andijan and Namangan regions.Almost all cement consumption in this region iscovered by "Quvasoycement".

The order of realization of cement

According to the Resolution of the Cabinet of Ministers dated from February5, 2004 №57 "On further introduction of market mechanisms of realization ofhighly liquid types of products and raw materials,"cement production and

2734 3576

7067 8246 950511754

15219

20060

41%31%

98%

17% 15%24% 29% 32%

0%

20%

40%

60%

80%

100%

120%

0

5000

10000

15000

20000

25000

2007 2008 2009 2010 2011 2012 2013 2014Construction, in bln. Sums Growth rate, in%

demand balance for the coming year were approved annuallyby the Order ofthe Cabinet Ministers of the Republic of Uzbekistan.

The balance of production and consumption of cement volumes are allocatedto each business entity, ensuring almost 100% of sales of products.

Main directions of realization of cement according to the approvedbalance sheet include:

Exporting; supplyforstateneeds, includingspecialcustomersatregulatedprices; supplyofmanufacturingofproductsundertheapprovalforstateordersatregulatedprices; volumesforownneedsoftheCompanyat productioncosts; volume of product sales on the commodity exchange and auctions atmarket prices based on demand; deliveries to consumers based on the direct contracts at averageexchange price quotes announced on the last day.Resolution of the Cabinet of Ministers from December 3, 2014 № 904-F

approved cement production and consumption balance for 2015, in accordance ofwhich JSC «Qizilqumsement» will establish parameters of cement sales in theamount of 3 449.6 thousand tons.Throughout the year 2015, the Company hasactually shipped 3 552.1 thousand tons, the balance of the forecast has beenfulfilled by 103.0%, the growth rate has amounted 102.9% of the correspondingperiod of 2014.

Structure of cement deliveries of JSC “Qizilqumsement”for the year2015

Exporting cement

MainexternalmarketsforrealizationoftheUzbekcementfor 2007 – 2013wereKazakhstan, TurkmenistanandKyrgyzstan. In 2014KazakhstanbecamemainimporterofmanufacturedUzbekcement.Demand for cementsignificantly decreased for the period of 2007-2014 (from 878,5 thousand tons to43 thousand tons) due to the import substitution measures by increasing owncement production and rise in price of the cement from Uzbekistan.

Producing cement is mostly directed to the internal market demand whichforms approximately 98% of the production volume, and taking into account hightransportation costs the product becomes less competitive in export. I.e. price ofdelivery of the 1 ton of cement to the southern regions of the Kazakhstan is nearly23 US dollars, when average price of the cement is 48 US dollars, and the price forthe cement in Kazakhstan’s exchange has been varying in 57 US dollars.

Due to the start of manufacturing of cement in Kyrgyzstan, purchasing ofbuilding materials from Uzbekistan has been dropped from 2011.

Decreasing the export of cement to Turkmenistan is connected withintroducing customs duty in amount of 100% for importing cement in order tostimulate local manufacturers.

In accordance with the Decree of the President of the Republic ofUzbekistan #PP-1731 “On additional measures for strengthening the exportercompanies and widening the export of competitive products”, Company is allowedto sign contracts in foreign currency for delivering of cement within the territory ofUzbekistan (equated to the export contracts). Only for 2015 within the territory ofthe country delivered 284,0 thousand tons of cement to the amount of 17,7 mln. USdollars.

through exchange64,7%

by averagequoting price

4,9%

by regulated price21,3%

for personal needs1,2%

for foreign currency8,0%

Pricing

According to the “Instruction on special regime of realization of strategictypes of material-technical resources” dated from February 5, 2004, selling of thecement is performed through 2 methods:

Realization through commodity exchanges on the basis of exchangequotation prices;

Realization through direct contracts on the basis of average exchangequotation prices and in cases of realization of products for State needs –through regulated prices. Development prospects

Accordingtotheworldindexes, describingthedegreeofindustrydevelopment,thelevelofconsumptionofcementpercapita. Asfortheendof 2014,consumptionofcementpercapitain Uzbekistan it was 234 kg. For comparison:cement consumption in Czech Republic, Poland, Egypt is in a level of 200-400 kgper capita, in Germany, Italy, Spain – in a level of 400-800 kg per person.

Accordingtothedataanalysis projections of research agency BMI(BusinessMonitorInternational), average annual growth rate of constructionindustry of the Republic of Uzbekistan for 2015-2024 shall be 4,6% annually.

Development of construction industry shall be determined by construction offollowing new industrial facilities:

Construction of Gas Processing Plant complex and improvement of Kandimdeposit groups in the framework of Production Sharing Agreement withcapital investment in amount of 2662,0 thousand US dollars;

ConstructionoftwoCombinedCyclePlantsin Takhiatash Thermal PowerPlant, one in Navoi Thermal Power Plantand Solar Power Plant inSamarkand with total volume of investment in 1521,3 thousand US dollars;

11 93914 041

16 43419 234

22 61627 038

32 325

38 644

46 199

4,11%4,61%

4,04%

5,55%

0%

1%

2%

3%

4%

5%

6%

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

2016 2017 2018 2019 2020 2021 2022 2023 2024

Construction industry, bln.sums Real growth rate, %

Constructionofcomplexonmanufacturingpolyvinylchloride, causticsoda andmethanol, manufacturing of nitric acid, and also construction of plant onmanufacturing ammonia and urea on the base of JSC “NavoiAzot”, with atotal value of 1759,7 thousand dollars.Ingeneral,theprogramprovides realization of 846 investment projects on

modernizing, technical and technological renewal of manufacturing in total amountof 40 billions 809 millions of US dollars.

Advertisement is one of the main components of the marketing and directedto transfer the quality characteristics of the product to the customers’needsязыкпокупателя.

Maingoalandtaskoftheadvertisingmeasuresofourcompanyfor 2016-2020istoincrease the demand and stimulate sales of cement and other products.

Main directions of the advertisement measures of the Company are:- Participation in international, regional, republican specialized exhibitions;- Improvement of marketable condition of our goods;- Improvement of the web-site of the company;- Placing advertisements in periodical mass-media.

Advantages of the Company

Widespectrumofmanufacturingproductionforvarious use. Quality of manufacturing production. Huge sales market of the production. Strong position in internal market. Presenceofbrandstoresforsellingproducts. Available conditions for realization and delivery. Presence of own big infrastructure. Maintenanceandintegritykeepingof quality in accordance with International

standards ISO 9001:2008. Strong financial stability and growth of economic indicators.

Program of organizat ional measures on technical re -equipment and automatizat ion of manufacturing .

JSC “Qizilqumsement”actively performing investment projects directed totechnology modernization and technical re-equipment of the manufacturing in thecompany in order to increase the competitiveness of the products in local andforeign markets through increasing the quality of the product and minimizing itscost price.

Main projects on finished construction.

Modernizingthecement grinding, construction of new cement mill #7 (withclinker silo).

Price of the project - 2 bln. 600 mln. sums.Price of the project- 3 bln. 648,2 mln. sums.Power of cement mill – 80 tons/per hour.Cement production for 2015– 221 465 tons of cement.

Modernizing the technological line on production of clinker (from mining tomilling plant).

Capital investments amount - 13 bln. 258,2 mln. sums.

Construction of technological line on manufacturing of limePrice of the project– 11 bln. 682,7 mln. sums.Price of the project- 13 bln. 254 mln. sums.Manufacturingpower– 37 800 tons per annum.Productionoflimefor 2015– 20 522,2 tons of construction lime.

AccordingtotheOrderofthePresidentoftheRepublicofUzbekistandated fromMarch 4, 2015, #UP-4707 “On Program of measures on structural transformation,modernization and diversification of the production for 2015-2019 years”, JSC“Qizilqumsement”performing realization of following projects:

Automated system of batching and feeding raw meal to cyclonic preheaterof circulating roasting clinker oven №1,2,3;

Purchasing equipment, which does not need installation, including quarryequipment for main type of the activity of the plant.

Investment programs of the Company for 2016-2020 years.

Name of the project Implementationperiod Expected result

Modernizing thetechnological line onproduction of clinker (frommining to milling plant) 2nd

phase.Budget of the project –216,2 bln.sum.Sourceoffinancing:Loans– 16,4 mln. USdollars;Own funds –166,2 bln.sum.

2016-2020

- providingoptimumregimeandnon-stopworkoftechnologicalequipment;- minimizing operating cost and fuel and energyresources during production of cement.

Purchasing equipment,which does not needinstallation, includingquarry equipment for main

2016 -2020 - upgradingobsoletefixed assets of the company;

type of the activity of theplantBudget of the project–78,5bln.sum.Sourceoffinancing:Own funds–78,5 bln.sum.Constructionofwarehouseforlime with total capacity of120 thousand tons withinstallation of modernstackers.Budget of the project–16,8bln.sum.Sourceoffinancing:Loans – 4,5 mln.US dollars;Own funds –3,3 bln.sum.

2016-2018г.

- increasing the uniformity of the preliminary rawmaterial during production of cement;- perfectionofthequalityofmanufacturingclinkerand cement respectively.

Construction of 4th

technological line onmanufacturing cementthrough reconstruction andmodernization of presentmanufacturing facilitiesBudget of the project–276bln.sum.

2017-2025г.

- increasing the volume of production of cement to1500 thousand tons per annum;-decreasingthespecificconsumptionoffuelandenergyper ton of cement by introducing modern energy-efficient equipment

Financing this projects shall be performed by net profit and accumulatedamortization of the Company and also by loans, particularly from the means ofInternational Association of Development.

Realization of abovementioned projects will affect in providing stable workof the technological equipment, increasing the volume of the manufacturing,minimizing the energy consumption and perfection of the quality of the product.

FINANCIALHIGHLIGHTS

KeysforstrategicaldevelopmentoftheJoint-StockCompanyisstablefinancialposition, which guarantees gradual modernizationof present facilities and introduce new ones.ThiswilleffectonincreasingtheprofitabilityofthesharesoftheCompanyandgrowth ofits market value.

Below you can find financial analysis of the JSC “Qizilqumsement”forprevious years of activity.

Assets of the Company

mln. sums

AssetsoftheCompanyasof01.01.2016, increased in 6,7% in comparison with01.01.2015. Thisisconnectedwithactivity of the company directed to renovate itsfixed assets – present manufacturing facilities.

WhereascurrentassetsoftheJSC"Qizilqumsement" constantly growing, whichshows the positive trend in the activity of the company and provides increasing thecapacity of the manufacturing finished products.

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

20122013

20142015

606 761

847 7591 001 079 1 068 123

Sources of own fundsmln. sum

Manufacturing productsin present price

Revenue from sellinggoods, products, works

and services

Export of ownproduction

734,1 bln. sum 104,5%*

814,3 bln.sum 108,1%* $18,8 mln. 110,2%

*

2012 2013 2014 2015

346 080

447 516 447 516

702 602

93 9

32

114

192

139

516

155

985

137 767225 935

323 196

10 577

Charter capital Reserve funds Undistributed profits

449,2

572,0

805,0877,3

734,1

2011 2012 2013 2014 2015

446,8

563,2

825,1

919,2

814,3

2011 2012 2013 2014 2015

23,7 24,8

11,6 10,7

18,8

2011 2012 2013 2014 2015

Grossprofitfrom sales Profit before taxation Net profit

302,6 bln. sum 109,5% 125,7 bln. sum 105,6%

* 10,0 bln. sum 157,1%*

*Percentagerationisshownto the Business plan data.

Financialpositionis the most significant index of the business activity andreliability of the Company. Itisdeterminedbyownsequity,sourceoffinancingandfinancial results of the activity of the Company.

AnalysisofthefinancialpositionoftheJSC"Qizilqumsement"havebeenperformedonresultsof2011-2015,by indicators of the financial reports,which is the main financial document of the Company.

198,0

307,3

502,2 507,7

302,6

2011 2012 2013 2014 2015

137,4

250,4

426,3401,3

125,7

2011 2012 2013 2014 2015

65,4

137,8

225,9

176,1

10.0

2011 2012 2013 2014 2015

JSC "QIZILQUMSEMENT" for year 2015.№

Name of indicators Unit2015 2014

Growthratio (%)п/п

Businessplan

In Fact % In Fact

1 Production of cement thou.tons 3 430,0 3 490,0 101,7 3 430,0 101,72 Production of clinker thou.tons 2 780,0 2 905,7 104,5 2 950,0 98,5

3 Manufacturing slatessheet 2 000 000 2 000 650 100,0 1 573 980 127,1

т.у.п. 40 600 40 613,3 100,0 31 581,2 128,6

4 Production of lime t. 26 000 20 522 78,9 0

5 Cement delivered TOTAL thou.tons 3 430,0 3 552,1 103,6 3 411,1 104,1

6 Goods manufacturedin present price mln. sum 703 320,5 734 138,9 104,5 877 290,3 82,8

7 GM with comparative price (1.01.15) mln. sum 365 390,7 373 134,4 102,1 359 154,6 103,9

8GM in physical terms thou.tons 538,0 575,2 106,9 536,0 107,3

In retail price mln. sum 132 038,4 141 366,8 107,1 131 118,5 107,8

9 Export thou.tons 236,0 284 120,3 147,8 192,1

thou. USD 17 132,1 17 677,8 103,2 10 672,6 165,610 Total number of workers Persons 3 589 3 511 97,8 3 406 103,1

11 Including PPP Persons 3 253 3 169 97,4 3 078 103

12 Depositing ferrous scrap Kg 17 000 17 580,97 103,4 15 979,12 110,0

12 Depositing scrap metal t. 2 890,0 3 169,0 113,4 3 061,4 103,5

13Specific consumption of natural gas forproduction of clinker

kg.p.t./t 153 142,3 93,0 145,3 97,9

14Specific consumption of energy forproduction of cement

kVt*h/t 162,7 148,6 91,3 149,8 99,2

15 Capital investments mln. sum 78 700 147 670,9 187,6 157 478,7 93,8

Performance of financial highlights of Business plan ofJSC "QIZILQUMSEMENT" for year 2015.

№ Name of positions 2015 2014 Growthrate (%)Business plan fact % fact

1 Net gain from realization 753 320 525 814 265 807 108,1 919 177 096 88,62 Manufacturing cost 477 121 171 511 701 107 107,20 411 470 384 124,43 Gross profit from realization 276 199 354 302 564 699 109,5 507 706 712 59,6

4

Costoftheperiod, including: 171 629 495 188 692 115 109,9 130 528 550 144,6- realization cost 27 307 965 29 031 908 106,3 23 412 741 124,0- administrative cost 24 096 119 27 574 655 114,4 20 679 384 133,3- other operational cost 120 225 411 132 085 552 109,9 86 436 425 152,8

5 Other profits from main type ofactivity 5 200 000 7 900 915 151,9 7 353 600 107,4

6 Profit from main type of activity 109 769 859 121 773 500 110,9 384 531 762 31,7

7

Financial activity results total: 9 192 880 3 995 461 43,5 16 776 297 23,8

including dividends - -4 811 222 -Interest rate results 10 992 880 11 905 213 108,3 7 194 611 165,5Others (exchange difference) -1 800 000 -3 098 530 172,1 -3 418 315 90,6

8 Profitfromeconomic activity beforetax 118 962 739 125 768 961 105,7 401 308 058 31,3

9 Income tax10 Excess profit tax 112 569 450 115 607 352 102,7 225 166 557 51,311 Infrastructure tax12 Net profit 6 393 289 10 161 609 158,9 176 141 501 5,8

Horizontal analysis of the balance of JSC «Qizilqumsement» for 2015

Name of position2015

Beginning of the year End of the yearthousand sum thousand sum %

I. Fixed assets1.1 Fixed assets and intangible assets 275 949 193 371 356 148 134,61.2. Other fixed assets 152 094 376 88 319 504 58,1

Total for Section I 428 043 569 459 675 652 107,4II. Current assets

2.1 Stock 298 019 252 280 224 723 94,02.2 Receivables 57 373 268 177 114 350 308,72.3 Short-term financial deposits 198 861 431 128 504 318 0,02.4 Money means 26 694 944 22 241 996 83,32.5 Other current assets 272 869 68 545 25,1

Total for Section II 581 221 764 608 153 932 104,6ASSETS 1 009 265 333 1 067 829 584 105,8

IV. Capital reserves4.1 Charter capital 447 516 900 702 601 533 157,04.2 Added and reserve capital 148 190 710 156 578 004 105,74.3 Directed receipts 923 304 0 0,04.4 undistributed profits 323 349 653 10 694 456 3,3

Total for Section IV 919 980 567 869 873 992 94,6V Long term liabilities 9 769 175 12 051 123 123,4VI. Sort-term liabilities

6.1 Loans 29 121 856 80 314 170 275,86.2 Accounts payable 50 393 733 105 590 297 209,5

Total for Section VI 79 515 589 185 904 467 233,8LIABILITIES 1 009 265 331 1 067 829 582 105,8

Verticalanalysis of the balance of JSC«Qizilqumsement» foryear 2015

Name of position2015

Beginning of the year End of the yearthousand sum thousand sum %

I. Fixed assets1.1 Fixed assets and intangible assets 275 949 193 371 356 148 34,81.2. Other fixed assets 152 094 376 88 319 504 8,3

Total for Section I 428 043 569 459 675 652 43,0II. Current assets

2.1 Stock 298 019 252 280 224 723 26,22.2 Receivables 57 373 268 177 114 350 16,62.3 Short-term financial deposits 198 861 431 128 504 318 12,02.4 Money means 26 694 944 22 241 996 2,12.5 Other current assets 272 870 68 545 0,0

Total for Section II 581 221 765 608 153 932 57,0ASSETS 1 009 265 334 1 067 829 584 100,0

IV. Capital reserves4.1 Charter capital 447 516 900 702 601 533 65,84.2 Added and reserve capital 148 190 710 156 578 004 14,74.3 Directed receipts 923 304 0 0,04.4 Undistributed profits 323 349 653 10 694 456 1,0

Total for Section IV 919 980 567 869 873 992 81,5V Long term liabilities 9 769 175 12 051 123 1,1VI. Sort-term liabilities

6.1 Loans 29 121 856 80 314 170 7,56.2 Accounts payable 50 393 733 105 590 297 9,9

Total for Section VI 79 515 589 185 904 467 17,4LIABILITIES 1 009 265 331 1 067 829 582 100,0

Analysis of financial position of the Company for 2015.

№ Indicator Normative level 2015

1

Profitability of assets, Крр = Пудн / Аср, where:Пудн — profitbeforepayingincometax — (graph 5, line 240, orlosses – with minus symbol graph 6, line240 of the Form № 2 «Financial results report»);Аср — averagearithmeticalvalue of the assets, determining by formula:Аср= (А1 + А2) / 2, where:А1 — value of assets in the beginning of the period (graph 3 line 400 of the Form № 1 «Balancesheet»);А2 — value of assets in the end of the period(graph 4 line 400 of the Form № 1 «Balance sheet»).

not lessthan0,05

0,12

2

Financialindependencecoefficient, Ксс = П1 / (П2 – ДО), where:П1 — sourcesofownfunds(Chartercapital, Reservefund, added capital, undistributed capital and others),sum of Section I of Liabilities, line 480;П2 — liabilities, Section II of Liabilities, line 770;ДО — long-term liabilities (line 490 of Balance sheet).

not lessthan1,0

4,68

3

Turnoverofaccountspayable in days, Окрдн = Дп / (Вр / Кзср), where:Вр — netincomefromrealizationofproduct (works, services) inreportingperiod, sum.; line010, graph 5«Net income from realization of products (goods, works, services» Form № 2 «Financial resultsreport»;Дп — number of calendar days in the period;Кзср — average arithmetical value of the accounts payable(half of the sum of value in beginning andend of the period in line 601 «current accounts payable» Section II of Liabilities, Form № 1 «Balancesheet»).

- 59

4Turnover of receivables in days, Одздн = Дп / (Вр / Дзср), where:

Вр — netincomefromrealizationofproduct (works, services) inreportingperiod, sum.; line 010, graph 5 - 53

«Net income from realization of products (goods, works, services» Form № 2 «Financial resultsreport»Дп — number of calendar days in the period;Дзср — average arithmetical value of the accounts payable(half of the sum of value in beginning andend of the period in line 210 «Debtors, total » Section II of Assets, Form № 1 «Balance sheet»).

5

Coverageratio(solvency), Кпл = А2 / (П2 – ДО), where:А2 — currentassets (manufacturalreserves, manufacturedgoods, moneymeans, payables and others),

Section II of Assets, line 390;П2 — liabilities, Section II of Liabilities, line 770;

ДО — long term liabilities (line 490 of Balance sheet).

not lessthan0,2

3,27

FINANCIAL RESULTS OF THE COMPANY

Indicators2013 2014 2015(fact) (fact) (fact)

Gain from realization 825 131 767 919 177 096 814 265 807Manufacturing cost 322 960 323 411 470 384 511 701 107Income from realization 502 171 444 507 706 712 302 564 699Profitability to RC% 60,8 55,2 37,2Period cost– total, including: 100 365 600 130 438 506 188 815 818- realization cost 20 818 509 23 412 741 29 031 908- administrative cost 13 045 636 20 679 384 27 552 979- other operational cost,from them 66 501 455 86 346 381 132 230 931Other income from main activity 3 754 722 7 353 600 7 902 888Income from main activity 405 560 566 384 531 762 121 651 769Profitability from main activity tothe RC % 49,2 41,8 14,9Results of financial activity total: 20 746 896 16 776 296 4 000 053Including dividends -557620 480Results as interest 21 642 703 20 164 611 7 093 511Results from exchange difference -338 214 -3 418 315 -3 094 876Others 27 0 938Profit before tax 426 307 462 401 308 059 125 651 823Profitabilityin% to RC 51,6 43,7 15,4Income tax 7 220 487Excess profit tax 190 029 355 225 166 557 115 607 352Infrastructure tax 3 122 197Net profit 225 935 423 176 141 502 10 044 471Profitabilityin% to RC 27,4 19,2 1,2

Our contacts:

Navoi-3, Navoi region, Republic of Uzbekistantel:+99879 223-42-71,+99879 229-82-34, fax: +99879 223-05-66

info@qizilqumsement.uz, www.qizilqumsement.uz