AGRICULTURE. AGRO HOLDING «KHLIBODAR»

KEY FACTS: Agro holding “Khlibodar” is a vertically integrated structure, which includes holding company LLCKhlibodar, grain market operator LLC Krupyaniy Dim and pig production complex PE Presto Capital; Agro holding “Khlibodar” has been operating on the market for 21 years, since 1991, resulting in a positive reputation with end product buyers, traders and a network of loyal farmer customers in a 100 km radius; Storage capacity for agricultural products reaches 35 thousand tons, annual turnover reaches 100 thousand tons; Cereals production plant capacity is measured at 10 thousand tons per annum; 6000 pigs sales capacity per annum. 2

3 LLC Khlibodar LLC Krupyaniy Dim PE Presto Capital Markets: 1.Sale of milled cereals; 2.Sale of feeds; 3.Sale of other products and services; 4.Sale of storage services; 5.Grain and oilseed trading Market: 1.Wholesale livestock marketing; 2.Wholesale meat and meat products marketing. Providing goods and services; Paying for goods and services. 1. Lease of the elevator, cereals production plant equipment, office; 2. Payment for the leased property; 3. Office lease; 4. Payment for the office lease; 5. Supply of feed; 6. Payment for feed; HOLDING STRUCTURE

4 GEOGRAPHY Location: Kirovohrad, Ukraine Location: central region of Ukraine, Kirovograd, Kirovograd region; Elevator and plant for production of cereals are located 1 km away from each other. The distance between pig production complex, elevator and plant is 18 kilometers. Transport expenses are minimized due to location of the three firms.

5 BUSINESS MODEL Major share of the revenues is allocated on LLC “Krunyaniy Dim”. 53% of revenue resulted from sale of agricultural products, 22% originate from sales of the cereals, 14% comprise revenues from elevator (storage) services and 11% are revenues from other sources. According to the forecast the revenues from resale and sale of cereals will grow in the future periods.

6 OPERATIONAL INCOME Presto-capital income consists specifically from sale of pigs. There is a plan to increase sales by 75% to UAH 5,0 M per annum by reaching planned volume of 180 heads in sales per month (110 to as of making this presentation). M, UAH2011 F2012 F Total for the periodStructure, % From sales of ag. products49,453,3 582,656% From services13,111,3 126,212% From sales of cereals20,222,9 248,924% Sales of feed4,22,40,8 13,51% Sales (other)5,10,6 11,31% Sales of pigs (Presto )2,52,95,1 50,95% Other services (Khlebodar)1,41,3 14,51% Total income95,994,795, ,9100%

7 ELEVATOR. KRUPYANOY DOM Main component of the production capacities of the group is grain storage and processing elevator in Kirovograd. Elevator capacity allows for simultaneous storage of 35 thousand tons of agricultural products and drying of tons. Elevator is equipped with modern communication system, has automobile and railroad connections. Elevator equipment allows for simultaneous loading and unloading processes in the following volumes: Loading capacity from vehicle – tons/24hours; Loading capacity from railroad – tons/24hours; Loading capacity to the vehicle – tons/24hours; Loading capacity to the railroad – 10 wagons/24 hours ( t). Sketch (structure) of the elevator

8 CEREALS PRODUCTION PLANT Cereals production plant is a part of the production capacities of the group. It is located in Kirovograd, at 0,55 ha of land with the total area of 2,309.3 m 2. Plant is equipped with all of the facilities (gas, water, central heating). Cereals production plant includes: 1.Administrative building (3 stories) – square meters; 2.Storage facilities – square meters; 3.Garage – square meters; Location of the production capacities in Kirovohrad А – location of elevator and cereals plant (Kirovohrad) B – location of the pig production complex (village Pokrovskoye) А

9 PIG PRODUCTION COMPLEX LTD. “PRESTO-CAPITAL” Pig production complex is located at 2,9 ha of land, the area formerly used for breeding cattle. Complex consists of three industrial barns, used for storing pigs. Name of the firmCity Demand, units / week Ltd. KombitradeZhitomir2100 Ltd. AlanDnepropetrovsk120 PE. VKIKSvetlovodsk120 BoynyaSvetlovodsk36 Ltd. Kremenchug Myaso Kremenchug60 BoynyaNikolaev60 Ltd. Myasoproduct Kirovograd Kirovograd60 Total2,556

10 KEY FINANCIAL INDICATORS M UAH 2011Ф2012П Revenues Expenses ЕBITDA Amortization Financial expenses Income tax Net profit/loss EBITDA margin 15.5%13.8%14.3% NetIncomeMargin 7.1%4.3%4.4%4.6% 4.7% 10.6%11.2% 11.3%11.6%

11 POTENTIAL EFFECT FROM INVESTMENT Based on growing demand for company’s products, specifically pigs, company plans further development of its pig farm complex by attracting additional investments specifically for this activity. Therefore at this stage of the development capital expenses for increasing pig count, storage capacity and modernization, are evaluated and approximately 19.4 M UAH. Based on data available, economic effect of such measure will be as follows: Income Statement, M UAH Revenues95,994,796,897,197,497,799,3102,1 Costs81,081,681,7 ЕBITDA14,913,015,215,415,716,017,620,4 Amortization1,81,7 1,6 0,40,0 Financial expense6,15,86,3 0,0 Income tax0,11,41,71,6 1,73,33,9 Net income/loss6,84,15,45,96,16,413,916,5 EBITDA margin15,5%13,8%15,6%15,9%16,1%16,4%17,7% Net Income Margin7,1%4,3%5,6%6,1%6,3%6,6%14,0%

12 Contacts Tyupa Viktor Ivanovych Director Tel: Yulia Koptseva Manager Tel: Antonina Kabanets Manager Tel: Adress Agroholding KHLIBODAR 11, Inzheneriv av., Kirovohrad, 25014, Ukraine Phone/fax