ochi SWorld By Korston Group Sochi-World - Scope SOCHI OLYMPIC DEVELOPMENT Sport Complexes Hotel & Convention Entertainment Infrastructure Olympic Village Sochi 2014 Winter Olympic Sochi-World Sport Complexes
Hotel & Convention Entertainment Infrastructure Sochi-World Worldwide Tourist Destination Olympic Village Sochi-World - Timeline 2010-2013 Planning Sochi 2014 Winter Olympic Sochi World Worldwide Tourist Destination
SOCHI OLYMPIC DEVELOPMENT IOC Compliances General Management Sochi-World Logistics Sustainability Long Term Feasibility Support (Hotels, Resort) General Management Sochi-World Goals Mission Create Sochi-World as a world wide Exhibition, Convention and Leisure Tourism Destination Supporting Sport events beyond 2014 Winter Olympics
Protection asset value Return on investment Sochi-World Goals - Vision Became the Leading European Convention Exhibition, Sport and Entertainment Destination: 10 Top International / European Sport Events per year. Host National Sport Events and Championships 35 World Exhibition per year. Total 3 million visitors. One million Convention delegates per year. One million Room nights. Sochi-World Goals SWOT Analysis STREANGTH All year destination Winter sport & summer sport destination Established VIP and official vacation destination OPORTUNITIES
Russians favor for an own top truism destination Russia growing outgoing tourism market Olympic Games helps to create international brand WEAKNESS Unstable weather Underdeveloped City and regional infrastructure THREATS Too far from European center Visa regime Instability in the Caucasus Region Sochi-World Goals SWOT Analysis STREANGTH All year destination Duty Free Zone Winter sport & summer sport destination Established VIP and official vacation
destination OPORTUNITIES Russians favor for an own top truism destination Russia growing outgoing tourism market Olympic Games helps to create international brand Single Management Company WEAKNESS Unstable weather Underdeveloped destination City and regional infrastructure Integrated Infrastructure Gaming Zone THREATS Too far from European center Visa regime Instability in the Caucasus Region
Visa Free Zone Sochi-World Strategy Integrate infrastructure Single management company Duty Free status Visa Free regime Gaming zone Strategy Integrate Infrastructure Olympic Area Sport Stadiums, Circus Resort Area I Hotels (3*): 2100 rooms, family entertainment (Aqua park, Amusement Park, Shopping)
Resort Area II Hotels (4*, 5*) 2400 rooms, Convention space (20000 m2) & Exhibition Center (40000 m2) , SPA, Shopping, Casinos Common Infrastructure Internal transportation system CO2 emission free Supporting services: laundry, central warehouse, etc Engineering systems (autonomy): electro-generation, boiler, etc Strategy Integrate Infrastructure Resort Area II Olympic Area Resort Area I Strategy Single Management Company Manages all the facilities and staff Runs the hotels, convention, exhibition and entertainment Supports sport events Commercializes the facilities Operates (hotel, entertainment, convention) Rents facilities (shopping, sport) Marketing (promotes and advertize)
Provides Security and Safety and Regimes Ensures technical and engineering work Sochi-World Strategy Duty Free Status Applies to all Sochi-World territory Entitles retail selling only (no wholesale) Has a similar regime as in international airports Custom controls in the accesses Possibility of including or excluding the Olympic Area from the free zone Sochi-World Strategy Visa Free Status Applies to all Sochi-World territory Migration check-points at all accesses Foreign citizens can come without visa direct from Airport transit area by special transfer Russian and CIS citizens go in and out with internal or external passport Foreign citizens with visas can come or go according to their visa statuses Russian Consular officer on duty on the territory Possibility of including or excluding the Olympic and Resort I Areas from the free zone
Strategy Gaming zone Gaming zone to be crated in part of SochiWorld territory Excludes Olympic and Resort I Areas All gaming operated by Sochi-World Management Company Compliances with law 18 y. o. Possibility of exclude compulsive gamers by court order. Strategy complex approach Strategy Impact in Image Impact in Visitor Count Impact in Revenue
Integrated Infrastructure Sochi-World perceived as one Destination Increases total headcount, Maximizing multiple use Investment Savings Up to Increases up to 10%, 15% more Operating by 40% savings 5% Single Management
Stronger Promotion of the brand, by consolidating marketing resources Up to 25% more, by avoiding price dumping Impact in Cost Savings up to 10% by pooling resources Impact in
Profit Increases by 230% (reduces pay back period three times) Strategy exploiting opportunities Strategy Impact in Image Impact in Visitor Count Impact in Revenue Duty Free Zone Positive
associations modern special international Increase Local Up to 23% Up to 70% Visa Free Zone Positive associations visitor friendly international Increases International
Up to 30% Up to 50% Up to 80% Up to 300% Gaming Zone Impact in Cost Impact in Profit Sochi-World - Management Company proposal Korston Group is ready to form, finance and support the creation and operation of SochiWorld Management Company Korston Group Highlights
More than 1000 Rooms under management More than 20000 m2 Convention space 25 Restaurants 40000 m2 in Entertainment Center 100000 m2 Shopping Centers 600000 m2 Under development in Russian Regions Shareholder of Nizhny Novgorod Trade Fair Employees: 1500 (3500 before July 1st 2009) Korston Group Management Team AREA Anatoly Kuznetsov President (Russia) Lisandro Platzer Strategy (Argentina) Hans Stohs
Business (Austria) Development Clive Tilley Gaming (UK) Alain Bourdin Finances (France) Giordano Borri Operations (Italy) Yuriy Kosenko Security (Russia) Denis Monolenko Legal & (Russia) administration Years 30 15 40 20
30 20 30 5 Experience Entrepreneur: Hotel, Casino, Trade, Retail, Entertainment, Development, Construction Executive: MBA, Hotel Chains, Development, Casino, Strategy, Consultancy, IT Executive: Development, Hotel, Congress, Resorts, Over 30 openings in 19 countries. Entrepreneur: Gaming, Hospitality, Entertainment Executive: MBA, Finances, Banking, IT, Sport Executive: Hotelier, Resort, F&B Congress, Marketing, Sport, Leisure Major General (R), Security Services Legal Counsel, Corporate Governance, Property Rights, Investment Korston Group Key Factors Russian Company Transparency
Required experience In all the Areas International Comparable sizes of operations Readiness To deploy required manager team (7 days) To supply 300 million Rubles to the Management company (5 days) Schedule of Interaction Three Stages 2010-2013 Planning Sochi 2014 Winter Olympic Sochi World Worldwide Tourist Destination SOCHI 2014 OLYMPIC COMITEE IOC
Compliances General Management Sochi-World Management Company Logistics Sustainability Long Term Feasibility Support (Hotels, Catering) General Management Schedule of Interaction Stage II (Games 2014) Winter Games Sochi 2014 Russian Government Sport
Authorities Asset Owners SOCHI 2014 OLYMPIC COMITEE 2014 Winter Olympics Game Administration Accreditations Media Center Transportation Security & Safety Games Marketing Ticket Sales Olympic Village Management Infrastructure Management Korston Group Sochi-World
Management Company Hotel Management Logistics F&B Catering Schedule of Interaction Stage I (till 2013) 2010-2013 Planning Sport Authorities Russian Government Asset Owners Coordination Board Korston Group Sochi-World Management Company
Sochi-World Brand Concept SOCHI 2014 OLYMPIC COMITEE IOC Compliances 2014 Winter Olympics Requirements Olympic Objects Planning General Planner Sustainability Logistics Long Term Feasibility Hotels & Other Facilities Planners Sochi-World - Organization Structure Sochi World
Worldwide Tourist Destination Russian Government Korston Group Supervisory Board Asset Asset Owners Owners Sport Authorities Sochi-World Management Company Sochi-World Hotel &
Conventions Entertainment & Shopping Infrastructure & Security Sport Complexes Next Steps Government act Management company to be created Management agreement Korston immediately assisting with planning and project management
