RUSNANO: Interaction with business in the field of semiconductors and equipment

Anatoly Chubais, CEO Russian Corporation of Nanotechnologies (RUSNANO)

Industry Strategy Symposium (ISS Europe) 2009

1-3 February 2009 ISS Europe 2009 - Dresden, Germany1

Russian Corporation of Nanotechnologies(RUSNANO)

Charter capital: ~ €3 bln

Mission: to provide the state policy in the field of nanotechnologiesApplication task: commercialization of nanoindustry projects and innovations

Areas of financing:fabrication of nanoproducts scientific forecasting and road maps, standardization, certification, safety in nanoindustryeducation, popularization

Founded in 2007

1-3 February 2009 Anatoly Chubais, RUSNANO2

ISS Europe 2009

Entry expertise

<1%<

Advisory Board

SupervisoryBoard

Financing decision

RUSNANO book value of assets, %

From application to Investment Project

Internal technicaland scientific expertise

Technicaland scientific Board

Internal investmentexpertise

Investment policy committee

Application

3 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

RUSNANO’s key services in financing

Financing up to 90% of a project’s investment program

Ownership participation — no more than 50% minus 1 share

Participation time — up to 10 years

Credit interest rate — from 13%

Financing projects at early stage and stage of expansion

4 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

Investments in 2008—2015(including investments from RUSNANO’s profit and off-budget funds)

480

560

680

690

680

740

820

890

Total: € 5.63 bln

5 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

Support for co-investors Pool of project investors – part of exit strategy

2009Pool of 10—15 co-investors for projects (total annual commitment of €1—3 bln) with priority for RUSNANO’s share redemption

RUSNANO exits investment projects for the Pool benefit

From 2010 to 2011

6 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

Support for co-investors

Financial support

Basic term — location in

Russia

Corporate: RUSNANO’s minority share in all projectsCredit:Long-term andcomparatively cheap moneyFriendly exit strategy:Not to maximize profit but to offset the costs

Non-financial support

Infrastructural: Technical and investment expertise, certification, foresight and road maps

Managerial:Scheduled work with the project company, investment spending supervision in the interests ofall shareholdersAdministrative:Shielding from the red tape and corruption, assistance in marketing

7 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

RUSNANO’s strategic goals towards 2015

17.7

21.4 3.9

4.6

PRODUCTION EXPORT

These goals are commensurate with current volumes of the entire Russian innovation industry

Key quantitative indicator:sales of russian nanoindustry production —

Key quality indicator:export of russian nanoindustry production —

20062008 (estd) 2006

2008 (estd)

€ bln € bln

6

4

2

0

30

20

10

0

€20.6 bln

€4.1 bln

of innovation goods, works and services in Russia

8 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

The production of semiconductorsis one of RUSNANO’s investment priorities

9 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

RUSNANO and semiconductor business:

~ 200

~ 3

RUSNANO

A lot for the domestic market:52% of all state financing for current nanotechnology programs in

Russia

€3 bln — a lot or a little?

€ bln250

200

150

100

50

0

Initial opportunities

Very little compared with global semiconductor market:

~ 38

Global semiconductorrevenue in 2008

Worldwide spending onsemiconductor R&D in 2008

10 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

RUSNANO and semiconductor business:

Restriction: relatively modest financial capacity

Additional benefits:

Positioning

Priority to highly profitable projectswith a relatively low capital-output ratio

Financial support Non-financial support

11 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

RUSNANO and semiconductor business:

Total: 15 applications with a sum of €1.1 bln

Co-investors

Applications in process

RUSNANO €760mln

€340mln

12 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

Semiconductors Investment Projects

13 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

LED

Products: LED chips, LED lamps and illumination systems, comparable with the world’s best analogs (efficiency 100 lm/W, lifetime 50 000 hours, wattage 10 W)

Aim: high-technology processing unit for LED lighting systems based on GaN semiconductor chips

Investment: Total — €76.7 mln, RUSNANO — €40.6 mlnEstimated revenue in 2013: €137.3 mln

Chip production and sales,millions of units

Lamps production, millions of units

For the lamps themselves | Sales

716

3548

1538

5372

0.1

0.5

2.9

3.9

1.3

2009

2010

2011

2012

2013

2009

2010

2011

2012

2013

14012010080604020

5

4

3

2

1

14 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

Photovoltaic systems based on 3-cascade heterostructures

Products: HCPV modules based on photovoltaic elements with heterostructures. Efficiency (37— 45%) nominal capacity (0.2, 0.5, 1, 3, 6 KW)

Aim: production facility and marketing for new generation HCPV modules with Fresnel lenses and tracking systems

Sales of surface-mounted photovoltaic modules in Russia in 2015 —~ €28 mlnInvestment: Total — €241 mln, RUSNANO — €107 mlnEstimated revenue in 2015: €291.8 mln

pilot and commercial manufacturing will be launched production volume — 120+ MW solar modules capacity per annum

Front surface of photovoltaic element

HCPV module proposed for production

15 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

Solar elements in gallium arsenide (GaAs)

Products: 3-cascade SE and solar panels in gallium arsenide, comparable in terms of effectiveness (27—29%) and specific power (350 W/m2) with the world’s best analogs

Aim: processing unit of multicascade heterostructural solar elements (SE) and solar panels based on A3B5 semiconductor materials

The cost of solar panels on the Russian market in 2013 ~€0.08 mln/m2

Investmant: total — €37.2 mln, RUSNANO — €14.3 mln

Estimated revenue in 2013: €34.3 mln

Production lines for heterostructural multicascade solar elements will be set up, according to the processing of germanic plastins and a section for automated assembly batteriesProduction volume — more than 304 m2 of solar batteries per year

16 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

Polycrystalline silicon

Application:

Aim: Large-scale polycrystalline silicon and monosilane manufacturing complex for solar energy and electronic industry

Electronic-quality polysilicon — for chip productionSolar-quality polysilicon — for photoconverter productionMonosilane — for production of thin-film photoconverters in solar energy and LCD displays

Estimated production volumes:polysilicons (of electronic and solar quality) — 3 800 tonnes per annummonosilanes with a capacity of up to 200 tonnes per annum

RUSNANO investment: €103 mlnEstimated revenue in 2014: €330 mln

17 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009

Prospects for the international cooperation: New types of nanoscale heterostructures for LEDs, solar elements, changeover switches, converters and other elements

Nanoelectronics and nanophotonics

Processing units for nanostructured objects (quantum outlets and wires, solid and columnar structures among others) and mechanisms for effective sensors and biomarking in medicine, monitoring surroundings and the parameters of technological processesJoint production of optimized technological equipment

Production of materials for semiconductor industry (sublayers, reactionary gases etc.)

Joint infrastructural objects for safeguard production (design centers, R&D centers)Establishing of international standards for new materials and facilities in semiconductor electronicsJoint business conferences and workshops

18 1-3 February 2009 Anatoly Chubais, RUSNANO

ISS Europe 2009