INVESTMENT PROJECT “Modernization of Poultry Complex LLC «Agro Holding “Yurma” The Chuvash Republic INVESTMENT PROJECT “Modernization of Poultry Complex LLC «Agro Holding “Yurma” The Chuvash Republic 1

2 AGRO HOLDING “YURMA” It is a dynamically developing company with closed cycle of production. With its volume of production, “YURMA” is rated among the largest agricultural enterprises of Privolzhsky Federal District. Company's major competitive advantage is manufacturing environmentally friendly products of high quality.

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Agro Holding “Yurma” is a type of diversified company which is engaged in plant-growing, production of combined feeds, poultry, cattle breeding, processing of and selling agricultural products. Annual volume of production in monetary terms comprises the amount exceeding 2 billion rubles. Strategic goal of company is further expansion of its segment within the market of agricultural and food products. Company mission: revival and development of agriculture in Russia owing to highly efficient and competent investment policy. 4 About Company

The project is designed for the purposes of increasing production of poultry goods to satisfy the needs of population in products of domestic manufacturers and achieving the goals of Food Security Doctrine. Modernization of poultry slaughter and processing departments, reconstruction of poultry house are implied. Main tasks: - strengthening the industrial and technical base by renovating and constructing new units, installing modern technological equipment; - increasing productive poultry population; - improving quality of products and competitiveness; - decreasing costs of unit production by increasing the productivity of labour and rationing of material costs. The project is designed for the purposes of increasing production of poultry goods to satisfy the needs of population in products of domestic manufacturers and achieving the goals of Food Security Doctrine. Modernization of poultry slaughter and processing departments, reconstruction of poultry house are implied. Main tasks: - strengthening the industrial and technical base by renovating and constructing new units, installing modern technological equipment; - increasing productive poultry population; - improving quality of products and competitiveness; - decreasing costs of unit production by increasing the productivity of labour and rationing of material costs. Investment Project of Poultry Complex Modernization LLC “Agro Holding “Yurma” of the Republic Chuvash Goals and Tasks 5

Parameters Investment Project of Poultry Complex Modernization LLC “Agro Holding “Yurma” of the Republic Chuvash Cost of project 5,808 million rubles. Sold (2007 – May 2013, fact) - building, reconstruction of poultry houses on Lapsarsky site: 411 million rubles; - reconstruction of slaughter department on Lapsarskaya site: 600 million rubles; - technically reequipping the feed production department in Alatyrsky district: 800 million rubles; - reconstruction of pig farm “Yuzhny” of Batyrevsky district: 750 million rubles; - acquisition of agricultural lands of ha and agricultural mechanisms: 250 million rubles. -TOTAL 2,811 million rubles. Projected sales ( July 2013 — 2020, plan) Projected sales ( July 2013 — 2020, plan) - building the production site (20 poultry houses for breeding): 680 million rubles; - additional construction (2 poultry houses for breeding, 4 poultry houses for breeders and hatchery):185 million rubles; -introducing the deep processing department, finished products warehouse, elevator for grain storage, technological wastes processing and the polygon for composting: 609 million rubles; -construction and maintanence works for reconstruction of pig slaughter department and the reconstruction of pig slaughter department equipped with fridge: 523 million rubles; -reconstruction of poultry houses on Cheboksarskaya site: 1,000 million rubles. -TOTAL 2,997 million rubles. 6

Social Effect: -creation of additional jobs (250 workplaces) with wages higher than average monthly wage of employees employed in agriculture, hunting and forest industry of the Chuvash Republic is implied by project; -improvement of workplace conditions and welfare of employees; - providing population with high quality end products. Budget Effect: - According to the project, tax payments for the project implementation period of are implied to be 654 million rubles, including company's tax payments of 167 million rubles, insurance deductions for social needs of 332 million rubles, income tax on individuals of 155 million rubles. - the sum of subsidies to be received by LLC «Agro Holding «Yurma» will be 532 million rubles. Budget effect is positive. Social Effect: -creation of additional jobs (250 workplaces) with wages higher than average monthly wage of employees employed in agriculture, hunting and forest industry of the Chuvash Republic is implied by project; -improvement of workplace conditions and welfare of employees; - providing population with high quality end products. Budget Effect: - According to the project, tax payments for the project implementation period of are implied to be 654 million rubles, including company's tax payments of 167 million rubles, insurance deductions for social needs of 332 million rubles, income tax on individuals of 155 million rubles. - the sum of subsidies to be received by LLC «Agro Holding «Yurma» will be 532 million rubles. Budget effect is positive. Investment Project of Poultry Complex Modernization LLC “Agro Holding “Yurma” of the Republic Chuvash 7

Structure of “Agro Holding “Yurma” Poultry Complex Agro Holding “Yurma” Pig Breeding Complex LLC “Yuzhny” Trade Network “Yurma” Agricultural Enterprise “Uljanovsk – Agro” Investment Project of Poultry Complex Modernization LLC “Agro Holding “Yurma” of the Republic Chuvash 8 Plant producing combined feeds in Alatyr town

9 AGRO HOLDING “YURMA” 31 Lugovaya street, Lapsary village, Cheboksarsky district, the Chuvash Republic, Russia phone/fax: (8352) ,