Investment project (idea start – up) Deep processing products from agricultural raw materials produced in Ukraine 1

2 Ukraine is one of the world’s leaders in grain production.Its export potential accounts for almost half of the available resources of grain and leguminous cultures 2 Balance of grain and leguminous cultures (including grain products), thous. tons Year Production Stock changes at the year-end Import Total resources Export Spendings on seeding Spendings on nutririon Losses Non-food recycling Spendings of grain for consumptionr Consumption of bread products (1 kg/person) 124,9123,5115,4111,7111,3110,4109,4

3 The worldwide market of deep processing of grain products in 2013 is estimated of about 22.8 mlrd USD (more than 31 mln. tons) ProductTotal import, USDTotal import, kgTotal export, USDTotal export, kg Wheat gluten Bran, sharps Citric acid Lysine Starch Wheat starch Lactic acid Modified starch Glucose, fructose, fructose syrup Total

4 Grain can be produced into a wide range of deep processing products Grain: bran, molasses, flour Flour: gluten, starch, modified starches Starch: syrup, alcohol, organic acids (citric acid, cuccinic acid, lactic acid) Syrups: glucose, aminoacids (lysin etc.), glucose-fructose syrups

5 Nowadays the production of a biodegradable plastic, which can be produced from lactic acid or succinic acid, is highly developping. Biodegradable plastic market is growing, since it displaces non-biodegradable plastic 5 World’s production of bioplastics by region in 2010 (in percentage) The growth of production of bioplastics (in thousands. tons) Biodegradable plastics are made from natural material as well as from fossil hydrocarbons

6 Import market of deep processing products in Ukraine exceeds 137 million USD (2013) Export market of deep processing products in Ukraine exceeds 193 million USD (2013) Product Export from Ukraine 2013, mln UAH Bran Glucose (20%) Starch Citric acid Glucose (20-50%) Modified starch Lysine Lactic acid30123 Fructose 50%110 Fructose00 Клейковина00 Gluten00 Total Export 2013 Product Import to Ukraine 2013, mln UAH Import to Ukraine 2013, mln tons Modified starch Lysine Glucose (20%) Citric acid Fructose Lactic acid Gluten Wheat starch Fructose (50%) Glucose (20-50%) Bran Total Import 2013

7 Ukraine is among the five countries-leaders (5th place) on bran export and is the third largest wheat bran exporter in the world ExporterTotal amount, USDTotal amount, kg Argentina USA Germany France Ukraine Leading countries in export of cereals bran in 2013 ExporterTotal amount, USDTotal amount, kg Indonesia Germany Ukraine France Russian Federation Leading countries in export of wheat bran in 2013

8 Statements from the deep processing of grain analysis ● Analysis of Ukraine domestic market shows that the inner demand for modified starches, lysine, glucose and fructose is not satisfied. ● Location of deep processing production in Ukraine has an advantage due to the presence of various agricultural raw materials and cheap labor. ● Analysis of the global market shows that there is a growing demand for biodegradable plastic. ● As Ukraine is one of the leading exporters of bran and it imports the goods and end- use products based on bran, it has the opportunity to create its own production of finished products based on bran, which can be claimed not only domestically but also in the global market. ● The most interesting and highly profitable deep processing products include organic acids and amino acids obtained by using specific strains of microorganisms. The nutrient environment for their production may be not only a syrup, but also, for example, molasses. Ukraine is an agricultural country with great potential, so it is possible to build a strong enterprise for deep processing of various raw materials: oil, milk, meat, poultry, wool, etc.

9 Benefits for potentional investors ●Investments in construction of the plant ranges from 60 mln USD (depending on the configuration and products) ●The return on investment occurs in approximately 5 years ●IRR is not less than 20% ●Palma Group may act as a reliable local partner for foreign investors

10 Благодарим за внимание! Инвестиционно – девелоперская компания «ТИТУЛ» Президент компании Тельман Аббасов Тел Сайт: