JSC “Concern AVEC and Co” General information  JSC “Concern AVEC and Co” was found in 1994 and currently it is one of the largest and stable companies in Ukraine  JSC “Concern AVEC and Co” holds leading positions in various branches of economy and is constantly mastering new markets and businesses  The total number of employees is over  Yearly volume of commercial operations is $ 150 mln

Alexander Feldman private production and commercial company “AVEC” was found President of JSC “Concern AVEC and Co”, a dynamically developing production and commercial company creation and running one of the largest charity organizations in Kharkiv – Kharkiv municipal charity foundation “AVEC” member of Kharkiv city Parliament honored with golden order of Nicolas the Miracle maker “for multiplication of good on Earth” С 1999 –The president of Alliance of national and cultural associations of Ukraine 2000 – awarded with “Christmas 2000” award, prize winner of rating contest “Kharkiv citizen of the century” С 2001 – President of Kharkiv united Jewish community Member of Parliament of Ukraine, member of Parliament committee on problems of retired, veterans and handicapped 2003 – awarded with special medal of French republic “For fidelity in human rights protection” 2005 – owner of the premium "Person of year 2004 " in nomination the Charity program of the Year" Honorary president

Main Businesses of AVEC Investment projects in commercial real estate Agricultural and production projects Markets and shopping centers management

JSC “Concern AVEC and Co”:  Large amount of trading space in Kharkiv region  7,6% of retail trade turnover of all large non-grocery markets in Ukraine  2,9% of all retail traders in Ukraine are tenants of AVEC Other Businesses of AVEC:  Various investment projects  Regional development  Logistics and transportation – AVEC- Sonora company  Media-business  Finance  Charity JSC “Concern AVEC and Co”

Shopping centers management The Central Konniy Novosaltovskiy Barabashova Shopping centers and markets Sumskoy

Whole-sale and retail “Barabashova” trade center is the Europe largest trade object. It is a unique “city inside the city” with its own streets, blocks, buildings, districts and infrastructure. Markets management Example of “Barabashova” trade center Barabashova trade center:  Total area – over sq.m.  Over shops and kiosks  Over visitors on weekdays and over visitors on weekends  Proposition of non-agricultural goods – «Everything from a needle up to a car”  Wide proposition of the goods of local producers  Operates 6 days a week + 2 whole-sale night trade sessions each week  Constant development

Markets management Markets of AVEC  Total area – sq.m.  Is located 5 minutes from downtown Kharkiv  Main groups of goods: groceries, clothes and shoes, household chemicals, goods for sport and recreation, animal market  thousand visitors on weekends “The Central Market”: “Sumskoy market”:  Total area – sq.m.,  Is located in historic downtown Kharkiv  Main groups of goods: agricultural products, flowers “Konniy market”:  Total area – sq.m.  Main wholesale agricultural market in the city  Up to 36 thousand visitors on weekends “Novosaltovskiy market”:  Total area – sq.m.  Is located in the largest residential district of the city  Main groups of goods: foodstuff, building materials, clothes  thousand visitors per day

International thoroughfares in Ukraine and Kharkiv Kharkiv region

Kharkiv region is located on the intersection of a number of important international and national transportation arteries. The region stands on the lines that connect West and East (Europe and Russia, Eastern countries) and North and South (Moscow and Crimea). A number of automobile and rail roads connect the region to Donbass, Crimea, Caucasus, ports of Black and Azov seas. Kharkiv region is the largest and best developed region among its neighbors. It is a traditional trade and terminal region. This is one of the reasons why Kharkiv is a traditional trade city. Regional location A powerful production and trade system of agricultural products needs a powerful professional logistic base. However it is missing: Wholesale distribution of agricultural products in Kharkiv region is chaotic, consists of a large number of small-size old warehouses whose location is random. The distribution system is far from being on the up-to- date level while the demand for professional agricultural terminal is more than high.

ResumeResume It is obvious that there is a serious need for professional distribution system for agricultural products in Kharkiv region. When created, such system will efficiently integrate into economy of Kharkiv region and the regions of Eastern Ukraine thus becoming the main terminal in the East of the country JSC “Concern AVEC and Co” has two large size land lots on the circular road of Kharkiv that have perfect transportation accessibility and fit to be used for creation of logistic terminals of inter-regional scale Object #1 with the overall area of sq.m. consists of 3 land lots that are located on the circular road on the North-East of Kharkiv near Kharkiv biggest Saltovka district Object #2 with the total area of sq.m. stands on the intersection of Moskovskiy ave. and the circular road near Rogan’ industrial district on the South-East of Kharkiv An important point is that AVEC has both experience and the potential to realize the agricultural terminal project of such size In perspective, the model of the distribution center in Kharkiv may be used to create a few other objects of such type in other regions of the country so that it becomes a national-level efficient unified system of agricultural products distribution

Headline FINANCIALSHeadline FINANCIALS –Expected investment –25 ha – 40 ha 1 ST Phase –2 nd phase ha reserve for logistics / distributionfor logistics / distribution –Trading space: Halls – ca. 40,000 m 2Halls – ca. 40,000 m 2 Truck sales - 50,000 – 75,000 m 2Truck sales - 50,000 – 75,000 m 2 –TOTAL INVESTMENT: around $30 mln. Headline FINANCIALSHeadline FINANCIALS –Expected investment –25 ha – 40 ha 1 ST Phase –2 nd phase ha reserve for logistics / distributionfor logistics / distribution –Trading space: Halls – ca. 40,000 m 2Halls – ca. 40,000 m 2 Truck sales - 50,000 – 75,000 m 2Truck sales - 50,000 – 75,000 m 2 –TOTAL INVESTMENT: around $30 mln.

OwnershipOwnership Need strong private investorNeed strong private investor Have very good relations with Town and OblastHave very good relations with Town and Oblast Need to develop a ‘model’ where oblast or town could be part owner of site or infrastructureNeed to develop a ‘model’ where oblast or town could be part owner of site or infrastructure The operator should be privateThe operator should be private Access for FarmersAccess for Farmers Some space or boxes could be ‘reserved’ for farmersSome space or boxes could be ‘reserved’ for farmers (this already happens at existing bazaars operated by AVEC)(this already happens at existing bazaars operated by AVEC) Can consider some participation by traders / farmersCan consider some participation by traders / farmers Need strong private investorNeed strong private investor Have very good relations with Town and OblastHave very good relations with Town and Oblast Need to develop a ‘model’ where oblast or town could be part owner of site or infrastructureNeed to develop a ‘model’ where oblast or town could be part owner of site or infrastructure The operator should be privateThe operator should be private Access for FarmersAccess for Farmers Some space or boxes could be ‘reserved’ for farmersSome space or boxes could be ‘reserved’ for farmers (this already happens at existing bazaars operated by AVEC)(this already happens at existing bazaars operated by AVEC) Can consider some participation by traders / farmersCan consider some participation by traders / farmers