1. Hans Christian Jacobsen Recent developments in Agribusiness in EBRD Rome 2005

2. Agribusiness in EBRD in 2004 Total EBRD commitments in 2004: €4.133bn Including €701m in the Agribusiness sector Record number of Agribusiness Projects: 53 In 18 out of 26 countries of operations Co-financing: €343m (including unfunded risk participation)

3. EBRD & Agribusiness: Annual Investments To date: EUR 3.25 bn invested in over 220 projects Growing annual commitments EBRD annual investments in Agribusiness (million €)

4. EBRD & Agribusiness: Sector Distribution

5. EBRD & Agribusiness: Country Distribution

6. Selected investments in 2004 Retail Getro Second largest retailer in Croatia. Two projects financed by EBRD €25 million (2002) & € 35 million (2004) Modern distribution and retail improves price transparency, competition and quality standards throughout the Croatian food chain. The projects offer reliable market outlets to farmers and local agro-processing enterprises

7. Retail in Agribusiness in 2004 Retail continues to be a strategic focus for the agribusiness sector. Strong linkages throughout the food chain Promotes quality improvement Promotes competitiveness Offers better, cheaper products to consumers Other retail transactions in 2004 included: Cora, Boliari, Migros and Getro

8. Selected investments in 2004 Early Transition Countries: M-Pro Largest dairy company in Azerbaijan US$ 5.7 million debt and equity financing Improving corporate governance through EBRD 25% equity stake and seat on the board. Contribution to backward linkages through improving the standards of milk collection through additional tanks and premium payments to farmers for better quality milk. Development of higher hygienic and quality standards through greater range of consistently packaged and presented dairy products for the consumer.

9. ETC in Agribusiness in 2004 Early Transition Countries have been and continue to be priority countries for the Bank. New instruments have been developed Additional resources have been allocated, including Technical Cooperation Other ETC projects in 2004 included: Iberia Refreshments and Teliani Valley wine in Georgia, Trans Oil in Moldova and Berad-Agro in Uzbekistan

10. Selected investments in 2004 Commodity Financing: Evrotek USD 10 m participation in USD 20 million working capital loan arranged by HVB Ukraine Evrotek -one of leading Ukrainian edible oil companies, dynamic and fast growing Facility is secured on the warehouse receipts, a newly established instrument actively promoted by EBRD Financing is for procurement of the sunflower seeds for further processing (STOZHAR brand).

11. Commodity Financing in Agribusiness in 2004 Commodity financing continues to play an important role Grain Receipt law is now in place in main agriculture countries (Kazakhstan, Ukraine, Romania, Poland, but not Russia yet) Role of the Bank is changing – more risk sharing with local banks – more direct cooperation with large local traders/processors Other examples of commodity financing projects in 2004 included: Regional Commodity Programme, ATF, BTA and Bank Caspian in Kazakhstan, Aval and Toepfer in Ukraine

12. Selected investments in 2004 working with local entrepreneurs - Marbo EUR 10 m long-term debt One of Serbian success stories in the agribusiness sector Works with potato growers Constant capacity increase which leads to increased demand of quality potatoes Growing quantities of potatoes purchased and produced – over 25k t in 2004

13. Local Enterprise and Agribusiness in 2004 Local businesses represent growing investment opportunities. Companies become more transparent with improved corporate governance They have a performance track record Integrity remains an issue to consider carefully Other transactions with local enterprises in 2004 included: Frikom, Fresh & Co, Boliari, Evrotek, Cherkizovsky & Lenta

14. Conclusion Bank is moving East Working role with local businesses but higher risks Finding different ways to continue to provide liquidity to farmers Emphasis on retail starting to pay off Still a long way to go……..

15. How to contact the EBRD Hans Christian Jacobsen Director, Agribusiness Tel: +44 207 338 6669 E-mail: jacobseH@ebrd.com