Ilim Group is the leading Russian pulp and paper company in terms of output volume, financial stability, corporate governance efficiency and technology. International Paper, the world's largest company in the pulp and paper industry, is a strategic partner of Ilim Group. Ilim Group is headquartered in St. Petersburg. The Company is managed by an international Board of Directors. Assets The Company's business assets located in the Leningrad, Arkhangelsk and Irkutsk Oblasts are the largest mills in the Russian forest products sector, producing more than 65% of Russian market pulp and over 25% of board. The Company's total annual pulp and paper output exceeds 2.6 million tons. Ilim Group includes the mills in Koryazhma (Arkhangelsk Oblast), Bratsk and Ust-Ilimsk (Irkutsk Oblast), corrugated board plant in Leningrad Region and the logging operations in Koryazhma and in the Bratsk and Ust-Ilimsk Districts. Strategy The strategic focus of Ilim Group is to shift from producing semi-finished goods to manufacturing higher added value products (paper and packaging), which is fully in line with the government priorities in the forestry sector. Ilim Group is the major investor in the Russian forest products sector. The total cost of the Company's investment projects currently underway exceeds USD 1.5 billion. Ilim Group is the biggest investor of forest industry in Russia. Total amount of currently implementing investment program is over 1,5 billion dollars. As a part of this global program named Ilim-2014 2 large-scale projects is being carried out – Big Bratsk and Big Koryazhma. Within the implementation of the Big Bratsk investment project, Ilim Group constructed and launched new modern softwood line with the capacity of 720,000 tons of pulp per year. Within the implementation of the Big Koryazhma project a new papermaking machine was built Key benefits established leading positions in Russia and China, two most dynamically evolving global consumer markets; large and geographically accessible production assets; extensive and renewable resources; dedicated team of professionals 1 Priorities The development priorities of Ilim Group are: needs of the customers and buyers, technologies furnishing manufacturing advantage, efficiency, people development, mitigation of adverse environmental impact, industrial safety, social responsibility, shareholder value. 2