UKRAGROCOM & HERMES-TRADING

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THE GROUP OF COMPANIES

Presentation

Contents
1. 2. 3. 4. Our way to success key milestones Strategy Strong advantage ability to multiply current success Fields of the groups operations 4.1. Farming 4.2. Agribusiness 4.2.1. Elevators totals 4.2.2. Svitlovodskyi river terminal 4.2.3. Sharivskyi elevator 4.3. Animal husbandry 4.3.1. Dairy farm Petrykivske Moloko 4.4. Sugar manufacturing P.S. Geography Contacts 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

9. 10. 11.

Key milestones
The history of UkrAgroCom LLC began from Holovkivske LLC that was cultivating 5 000 ha of land in Holovkivka, Oleksandriiarea, Kirovohrad region.

2013- Land bank - 75 000 ha of seminal agricultural lands in Oleksandriiskyi, Petrivskyi, Znamianskyi, Svitlovodskyi 2012 and Novoukrainskyi district of Kirovohradska region, and in Piatyhatskyi district of Dnipropetrivska region.

TOP-25 of the most powerful agricultural groups of companies in Ukraine. TOP-10 of biggest grain traders in Ukraine. Huge national-scale projects realized: dairy farm Petrykivske moloko (for 5 000 heads of cattle), Svitlovodsk River Terminal (94 000 t) and Sharivskyi elevator (81 000 t). Modernization of elevators. Total storage capacities: 353 000 t. First direct European financing received.

2012- Land bank - 65 500 ha. Foundation of a trade company in Switzerland. Modernization and increase of 2009 elevators storage capacities up to 170 000 t: elevator UkrAgroCom (53 000 t), Korolivske HPP (47 000 t)
and HP Dobronadiivske (70 000 t). Grain trading desk increased up to 500 000 t per year.

2008 Landbank: 36 000 ha. Construction of the third elevator from scratch HPP Dobronadiivske (35 000 t),

furnished with equipment from world leading manufacturers: GSI (USA) and Bhler (Switzerland/Germany). Total storage capacities: 115 000 t.

2007- First audit year. Acquisition of the sugar plant with processing capacities of 3000 t of sugar beets per day. End 2004 of the reconstruction of the pig farm and introduction of Dutch growing technologies. Modernization of

elevators with equipment from American and European manufacturers (GSI, Bhler). Total storage capacities: 80 000 t.

2003 Acquisition of the second elevator - Korolivske HPP (12 000 t). Total storage capacities - 24 000 t. 2002 Foundation of Hermes-Trading LLC. Director - Yurii Skichko. Launch of export trade. First trade agreements and 2001 2000
representation. Acquisition of the first elevator - UkrAgroCom (12 000 t). Conduction of the first foreign contract with Kun S.A. in Ukraine. It was the beginning of a quality change in farming to intensive and highly accurate technologies. Foundation of UkrAgroCom LLC. General director - Anatolii Kuzmenko. Land bank - 14 000 ha. 3

Strategy

1. EXPANSION Expansion of farming land bank up to 120 000 ha. ~6 000 ha of farm land under sugar beets to procure 100% of feedstock for sugar processing. ~3 000 ha of farm land under feedstock crops for meat & dairy herb to secure feedstock supplies. Focus on cutting the edge operational excellence.

2. INFRASTRUCTURE Further development of modern storage capacities in line with the farming and trading strategy. Acquisition of farming machinery & equipment following the expansion of operations. Construction/acquisition of cattle-farm buildings following the organic growth of the herd.

3. EFFICIENCY Maximization of returns per ha by using powerful largescale machinery, min-till technology. Machinery idle time reduction. Increase of throughput of storage capacities, increase of grain trading volumes by up to 1 000 000 tons per annum. Energy saving technology for sugar processing.

Key selling points

Profitability & outstanding operational excellence on Ukraines & global competitive market.

Integrated business model enables locking the value from related businesses to minimize risks and maximize returns. Direct access to exports mitigates exposure to currency risks.

Experienced with specialized practical and theoretical knowledge, obtained in leading agricultural institutes, open-minded, result oriented & highly motivated management team w/ equity interests and systematic approach to the business capable to multiple current success .

Scalability of business improves operational leverage of the business and reduce costs.

Established, well-managed, post-CAPEX business as an ideal platform to expand Operations.

Strategic location. High concentration of the operations in the black soil region of Ukraine. Short leg to Ukraines deep-water ports improves profitability of trading division.

Sugar beets processing and dairy & meat production provides a natural hedge against volatile soft commodities prices as used as feedstock for the production of value-added Products. Integrated and balanced business model adds much to quality of earnings with stable margins.

Fields of operations

1. Farming 2. Agribusiness 3. Animal husbandry 4. Sugar production

UkrAgroCom LLC Hermes-Trading LLC UkrAgroCom LLC UkrAgroCom LLC

UkrAgroCom: Farming

13 years of farming experience with proved track record, profitability & operational excellence. 70 000 ha of fully arable land bank in black soil belt of Ukraine (Kirovohrad region). High concentration of farmland adds much to efficient farming operations (maximum distance between extreme locations does not exceed 180 km). Main crops are: wheat, corn, barley, sunflower, rapeseed, pea, sugar beet etc. Existing park of new & modern (EU/US produced) farming machinery & equipment capable to service up to 80 000 ha of farmland (John Deere, Case, Class etc). 100% self sufficiency in farming equipment & storage facilities minimizes costs base and secures output.
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Hermes-Trading: Agribusiness

More than 500 000 t of trading volumes in 2011-2012. Aiming at 1 000 000 of annual trades in the near future. 353 000 t of total storage capacities. In 2012-2013 the company invested UAH 300 mln in construction of Svitlovodskyi River Terminal (94 000 t) and Sharivskyi elevator (81 000 t). Total amount invested in elevator infrastructure more than USD 90 mln. Wide network of partners and clients all over the country and worldwide including Cargill, Toepfer, CHS, Kernel, Nibulon etc. High-profile multilingual team of professionals united under one strategy and desire of the company to grow. Established long-term relations with financial institutions: Universal Bank, Ukrsibbank, BNP, UniCredit, OTP, Deutsche Bank Ukraine, Landesbank and Sberbank of Russia.

Hermes-Trading: Agribusiness - Elevators 1

SVITLOVODSK RIVER TERMINAL

94 000 t

SHARIVSKE LLC

81 000 t

HPP DOBRONADIIVSKYI LLC

70 500 t

UKRAGROCOM LLC

60 000 t

KOROLIVSKYI HPP LLC

47 200 t

Hermes-Trading: Elevators Svitlovodsk River Terminal

Svitlovodskyi river terminal will become a leading elevator complex of the group of companies with total storage capacities of 94 000 t; receipt 5 000 t per day; processing and drying 4 400 t per day; dispatch on railway 4 000 t per day, shipment on water transport 5 000 t per day. Berth length 240 m. Simultaneous mooring of two vessels. Equipment provided by GSI (USA), Bhler (Switzerland/Germany), Telestack (Great Britain), Mykolaivpromservis" (Mykolaiv), Vahovymiruvalni systemy" (Dnipropetrovsk). Total area of the enterprise is 8,9 ha. Total investments UAH 160 million.
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Hermes-Trading: Elevators Sharivskyi Elevator

Sharivskyi elevator is a modern elevator complex of the group of companies with total simultaneous storage capacities of 81 000 t of grains; receipt - 5 000 t per day; processing and drying 4 000 t per day; dispatch on railway transport - 2 000 t per day. Equipment manufactured by GSI (USA), Bhler (Switzerland/Germany), Mykolaivpromservis" (Mykolaiv), Vahovymiruvalni Systemy" (Dnipropetrivsk). Total area of the enterprise - 3 ha. Total investments UAH 140 million.
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UkrAgroCom: Animal husbandry

The Company views meat & milk production as a value accretive extension to feedstock output, which allows to maximize returns per ha of farm land cropped. The Company is investing USD 30 mln in developing its milk production capacities in 2012 2013 and is building a brand new modern dairy farm Petrykivske Moloko for 5 000 heads of holstein cattle. Total number of cattle heads excluding heads at the new dairy farm: 3 500. Total: 8 500 heads. Also, 11 500 pigs. The Company shows first-class quality standards of cattle treatment providing it with all the necessary care and equipment needed.
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UkrAgroCom: Livestock sector Dairy farm Petrykivske Moloko

The dairy farm Petrykivske Moloko is being realized by the group of companies UkrAgroCom and Hermes-Trading and will become the most powerful dairy farm for 5 000 heads of holstein cattle in Kirovohradska region and one of the leading ones in Ukraine. Total capacities - 70 t of milk per day, i.e. 25 000 t of milk per year. Total area 56 ha. General designer is Tavriiaprombud LLC. General contractor is Khersonska vyrobnycho-budivelna kompaniia LLC. Total investments USD 30 million. One of the important advantages will be milk production According to the standards of children nutrition.
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UkrAgroCom: Sugar production

The Company acquired Oleksandriiskyi sugar plant in 2007. Its processing capacities today are 4 000 tons of sugar beets per day. It is value accretive acquisition as it allows to generate additional EBITDA per ha of farmland compared to usual crops with relatively low extra CAPEX. The Company uses 100% of its own sugar beets to produce sugar for its own Ukrainian sugar market securing solid protection in regards to Ukraines possible accession to trading organizations. Ukraines sugar industry has consolidated and fully recovered since 2006 sugar overproduction both in terms of domestic sugar prices and production volumes.

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P.S.
Proved operational profitability over the past 13 years! UkrAgroCom uses no-till cultivation technology, which is the most balanced option in cost/quality/yield relationship. Soil mapping & GPS navigation. Own storage facilities satisfy 100% of the Groups storage requirements. Thus own infrastructure and equipment enabled UkrAgroCom to minimize OpEx and secure agricultural produce. UkrAgroCom works with leading international and Ukrainian producers of seeding material. Crop structure is based on the following principles: crop rotation requirements with focus on maximum use of available farm land resources; expected crop profitability; efficient use of machinery & equipment through adjacent large-scale operations; risk-averse portfolio of winter and spring crops; 100% feedstock procurement of own milk & meat production as well as sugar processing. Farming operations procure feedstock for sugar processing and livestock breeding operations. Currency risks are mitigated through currency matching in revenue & liabilities sides. The Groups generated (US$ denominated) revenues are used for servicing/ repayment of US$ denominated facilities, while export UAH denominated revenues are used for local currency facilities.

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Geography

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Contacts

UKRAGROCOM LLC
Kirovohrad region, Holovkivka village, 1, Zhovtneva str. Tel.: +38 (05235) 6-27-21 Fax.: +38 (05235) 6-27-21 E-mail: uac_office@ukr.net

HERMES-TRADING LLC
Kyiv, 32-B, Shchorsa Str., office 1020, 3rd floor Tel.: +38 (044) 220-04-40 Fax.: +38 (044) 220-04-44 E-mail: office@hermes-trading.com.ua

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