June 2018

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AIRPORT

L V I V J A G E L L O N

Airdrome services ● Parking ● Ground handling ● Aviation security

INDUSTRIAL PARK J A G E L L O N C I T Y

Office space and land for rent ● Utilities supply ● Security

AIRCRAFT CONVERSION

PROGRESSTECH CONVERSION CENTER

Conversion of passenger aircraft іnto freighters ● Aircraft painting

● Turn-key Engineering for conversions

PILOT TRAINING CENTER A V I A T O R

Pilot school (PPL, CPL) with simulators ● Aircraft distribution services

MRO

JAGELLON TECHNIQUE

Maintenance and repair of GA aircraft

● Storage of business aviation fleet

FREIGHT AIR CARRIER

J A G E L L O N A I R E X P R E S S

Express cargo and mail deliveries across Ukraine and within CEE region

FREIGHT AIR CARRIER I -CARGO EXPRESS

International e-commerce goods deliveries by air

CARGO & LOGISTICS CENTER J A G E L L O N C A R G O

Cargo handling and storage ● Customs clearance ● Multi-modal logistics

L'VIV

Gorodok

Yavoriv

Е40 Е40

М11 М11

Е40

28 Przemysl Н13

Н13

Н13

М11

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28

Krakovets Korczowa

Shegyni Medyka

Е40

Neighborhood with EU and location within two roads to/from the EU

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Unique and innovative type of the "aviation cluster" project for Ukraine

Strategic location in only 55 km from the EU/Polish border and 30km West from Lviv. EU-Ukraine Association agreement and visa free regime and the transcontinental New Silk Road project between China and Europe via Ukraine

Comprehensive approach in respect of aeronautical services with modern aircraft, equipment and ground infrastructure

Promising trends at the international and domestic markets for general aviation and growing demand for express deliveries of mail and cargo, including strong e-commerce demand

Conversion of passenger aircraft into freighters – a perfect alternative to purchase of the new cargo planes and significant cost reduction for air cargo

Partnership enlargement among Black Sea countries: an opportunity to enlarge the aviation cluster towards Georgia, Turkey etc

Tourism and Business attractiveness of Lviv and the Western Ukraine: a proper location for investments in the high-tech industries

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Phase 2: 2020-2025 Phase 3: 2024-2030 3

2018 2020 2022 2024 2026 2028 2030

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1

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2

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3

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CLUSTER SEGMENTS

AIRPORT

L V I V J A G E L L O N

Airdrome services ● Parking ● Ground handling ● Aviation security

FREIGHT AIR CARRIER

J A G E L L O N A I R E X P R E S S

Express cargo and mail deliveries across Ukraine and within CEE region

FREIGHT AIR CARRIER I -CARGO EXPRESS

International e-commerce goods deliveries by air

CARGO & LOGISTICS CENTER

J A G E L L O N C A R G O

Cargo handling and storage ● Customs clearance ● Multi-modal logistics

MRO

JAGELLON TECHNIQUE

Maintenance and repair of GA aircraft

● Storage of business aviation fleet

AIRCRAFT CONVERSION

PROGRESSTECH CONVERSION CENTER

Conversion of passenger aircraft іnto freighters ● Aircraft painting

● Turn-key Engineering for conversions

PILOT TRAINING CENTER A V I A T O R

Pilot school (PPL, CPL) with simulators ● Aircraft distribution services

INDUSTRIAL PARK JAGELLON CITY

Office space and land for rent ● Utilities supply ● Security

Phase 1: 2017-2023 1 2

MRO Jagellon Technique and business aviation storage

Hangars for GA aircraft

Pilot Training Center AVIATOR &VIP-terminal for buziness aviation

Cargo & Logistics Center

Jagellon Cargo

Areas for Industrial Park Jagellon City

Runway extension areas

Aircraft Conversion Facility PROGRESSTECH Conversion Center

Runway extension areas

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Cherliany village

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I N V E S T M E N T S – P H AS E 1 CAPEX, MUSD Share

Airport Lviv Jagellon $30,676.4 38.6%

Airdrome (runway 2500 х 45м with reinforced side

strips 2 х 7,5 м, equipment etc) $28,069.3 35.3%

Infrastructure for business aviation $2,607.1 3.3%

MRO Jagellon Technique for GA $5,914.2 7.4%

Freight air carrier Jagellon Air Express $24,800.0 31.2%

Cargo & Logistics Center Jagellon Cargo $6,173.7 7.8%

Pilot Training Center AVIATOR with simulators $5,444.7 6.9%

Total required CAPEX $73,000.4 91.9%

Other possible expenditures (force major reserve) $6,477.2 8.1%

TOTAL REQUIRED FINANCING $79,477.6 100%

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I N V E S T M E N T S – P H AS E 2 CAPEX, MUSD Share

Airport Lviv Jagellon – runway extension $25,000.0 17.9%

Airdrome (runway extension to 3200m etc) $20,000.0

Systems and equipment $5,000.0

Aircraft Conversion Facility for В737NG

PROGRESSTECH Conversion Center $30,000.0 21.4%

Hangars, maintenance shops and offices $18,000.0

Equipment for conversion and painting of aircraft $10,000.0

Engineering solutions for hangars and conversions $2,000.0

Freight Air Carrier i-Cargo Express $60,000.0 42.9%

Purchase of used 5 х В737NG and other start-up costs $50,000.0

Conversion of aircraft into freighters $10,000.0

Pilot Training Center AVIATOR – extension

(purchase of simulators for В737NG/MAX etc) $15,000.0 10.7%

Total required CAPEX $130,000.0 92.9%

Other possible expenditures (force major reserve) $10,000.0 7.1%

TOTAL REQUIRED FINANCING $140,000.0 100%

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I N V E S T M E N T S – P H AS E 3 CAPEX, MUSD Share

Airport Lviv Jagellon – capacity extension $25,000.0 13.5%

Airdrome (high speed taxi ways etc) $20,000.0

Systems and equipment $5,000.0

Aircraft Conversion Facility for В777 / B747

PROGRESSTECH Conversion Center $60,000.0 32.4%

Hangar with maintenance shops and offices $45,000.0

Equipment for conversion and painting of aircraft $10,000.0

Engineering solutions for hangars and conversions $5,000.0

Freight Air Carrier Jagellon Air Express - upgrade $20,000.0 10.8%

Purchase & conversion of aircraft (3 x ATR42) etc $20,000.0

Freight Air Carrier i-Cargo Express - upgrade $70,000.0 37.8%

Purchase of used 2 х 747 and other start-up costs $50,000.0

Conversion of aircraft into freighters $20,000.0

Total required CAPEX $175,000.0 94.5%

Other possible expenditures (force major reserve) $10,000.0 5.4%

TOTAL REQUIRED FINANCING $185,000.0 100%