“COVAL & CO” CANNERY Cantemir town, MD Tel/Fax: +( ) Cell: + ( Speaker: Nicolae Coval – General Manager, co-owner “Coval & Co” LLC

“Coval & Co” LLC (1)  Year of founding: September 2006  Private ownership: 100%  Company value: 12 million MDL (app. 1 million USD)  50 full-time employees, 150 seasonal workers  Production capacity: 20,000 tons of fruits & vegetables per season  Production area - 2,7 ha, including: - warehouse – 6, 000 m 2 - production facility – 864 m 2 Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Comparative advantages (2)  Favorable climate area: abundant supply of raw materials  Average temperatures: by C higher as compared to Central and Northern Moldova  Sugar content: by 2-3% higher than the country average Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Comparative advantages (3)  Plant located nearby Chisinau-Cahul highway, 120 km to Chisinau  4 km to the border with European Union: Custom point Prut 1 Cantemir - Falciu Romania  Provided access to railways: 3 km to the railway station– Prut 2  Labor force with relevant technical expertise  Large volumes of raw materials available in the region allow the production of high quality products without concentrates and preservatives Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Major business activities (4)  Purchase of raw materials (fruits & vegetables) from small and medium size farms; agricultural enterprises  Processing of fruits and vegetables into:  Fruit and vegetables juices obtained via direct processing  Preserved fruits  Canned vegetables  Sale of canned foodstuffs on the domestic and external markets Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Technical endowment (5)  Direct processing line of fruits and vegetables via sterilization (up to 20,000 jars of 0,5 l to1 l/shift)  Production line of preserved fruits and marinades via pasteurization (up to 15,000 twist-off jars of 0,3 l to 1,5l/shift)  Equipment for the production of jams & jellies  Autonomous boiler-house with the capacity of 4t of steam/hour  Own water supply system (artesian well)  Power transformer with the capacity of 250 KWA Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Product line (6) Figure 1: Product portfolio in 2007, % Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Product line (7) Preserved peaches Preserved sour cherries Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Product line (8) Preserved pearsPreserved plums Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Product line (9) Cucumbers and tomatoes mixCanned cucumbers Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Output markets (10) Figure 2: Major markets in 2008, % Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Development goals (11)  Aseptic production of fruit purees (“bag-in-box” )  Development of new products in order to extend the production season (winter-spring)  Diversification of output markets– European Union  Establishment of sustainable business partnerships with counterparts from EU and CIS  Introduction of ISO quality assurance and food safety system Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

Investment projects (12) Since only 30 % of the production capacity is currently under use, the following investments are required: 1. Aseptic production line “bag-in-box”:  purees: peach, apricot, apple, plum, carrot Investment project value: 500,000 USD 2.Production line:  concentrated apple juice  fruit & vegetable pastes Investment project value: 1,000,000 USD Vienna Economic Forum “Invest in Moldova, invest in the Region”, February 20-21, 2008

THANK YOU!