EastUkrAgro 2011

www.eastukragro.com Copyright © 2010 EastUkrAgro Public Ltd.

Crops Pork

Commercial Swine Production

Nucleus Pig

Breeding

2

Danish

Technology

Nucleus

Breeding

10

Years in

Business

EXTRA VALUE DUE TO HIGHER

PROLIFICACY

EXTRA VALUE DUE TO HIGHER DAILY

GAIN AND BETTER FEED EFFICIENCY

EXTRA VALUE DUE TO HIGHER MEAT

PERCENTAGE

3

Alexander

Kurochkin (20%)

Dmitry Divulskiy(51%)

Dmitry Cherkaskiy (19%)

Alexander Skripnik (10%)

KHLEBNOE, LLC LAN, LLC100% 100%

4

2002

2003

2005 2008

2010

2011Year of establishment Lan, LLC

Crop production (3,300 ha of land)

Complete renewal of agricultural

machinery

Year of establishment Khlebnoe, LLC

Livestock breeding (140 sows)

Launching of bio-gas and fodder plant

projects. Commercial swine production

Launching of modern slaughter house

Introduction of Danish technologies

Launching of the NewConnect Project

5

17,9

40,8

Ukraine EU-27 averaged

64,7

55,8

55,3

53,1

40,9

37,7

36,0

34,7

34,0

31,3

30,0

28,5

24,6

18,1

17,9

16,4

13,2

10,2

9,2

33,0

Denmark

Spain

Hong Kong

Germany

Hungary

Poland

Sweden

France

China

Singapore

Canada

United States

United Kingdom

Australia

Ukraine

Japan

Russia

Mexico

Brazil

Weighted average

Global pork consumption per capita, kg

Source: USDA Census of Agriculture Source: Ukrainian State Statistics Committee

570

200

Production Imports

Source: USDA Census of Agriculture

Pork market 2010

ths tons

Pork consumption

per capita 2010, kg

6

Improved animal health and productivity through

heightened biosecurity

Adopting a market focused approach and engaging in

strategic partnerships

Continue development of selective breeding

technologies in order to increase productivity

Drive to increase pig herd up to 50,000 heads

According to the strategy EastUkrAgro Public LTD plans to become the most

modern nucleus pig farm in eastern Ukraine with the aim to maintain progressive

pig-breeding technologies in order to achieve maximum return on investments

EastUkrAgro’s operation is flexible enough to adapt to changing market

requirements

7

FODDER PRODUCTION

FACILITIES

SOWING

FARROWING

WEANING GROWING

FATTENING

CROP FARM

3,300 Ha

CROPS

ENERGY

CARCASS PORK MEAT

SWINE

NUCLEUS PIGS

BIO-FERTILISERS

FODDER

BIO-GAS PLANT

NUCLEUS

BREEDING CENTER

SLAUGHTER

HOUSE

MAJOR

UNIT

8

Works 2010 2011 2012 2013 2014III IV I II III IV I II III IV I II III IV I II III IV

LAN LLC

Modernization of piggery

Dry sow house for 265 units

Increasing of piggery capacities

100% of production capacity

New pig-breeding complex


Construction of new piggery


Biogas plant

Works, equipment


Fodder production

Works, equipment


Agricultural machinery

KHLEBNOE LLC

Modernization of farrowing house


100% of production capacity 9

Development of a new pig-breeding

complex for 2000 farrowing units

Expansion in pigsties for growing and

fattening pigs

Meet with hygience standards and food

safety

Increase in productivity by 15-20%

Improving the quality of production

Increase in commercial swine output

up to 50,000 heads annually

10

Biogas plant is capable to receive up to 150 tons

per day of liquid pig manure with 94-95%

humidity

Biogas plant will produce 3715 m3/day of biogas

with 55% methane content. The station will

produce 395 kW of heat power

The wastage of the biogas plant is the high-

value product bio-fertilizer. 14 tons per day of

solid bio-fertilizer (humidity 70%) and 130 tons

per day of liquid fertilizer (humidity 99%)

Balanced bio fertilizers crop yields can increased

up to 30-50%

11

Acquisition of new agricultural machinery and bio-fertilizer injector equipment Development of the modern fodder

production facilities to produce combined fodder to feed own pigs To increase internal consumption of

crops up to 100% till 2012 To increase land bank under

cultivation from 3,300 ha up to 4,000 ha

12

SLAUGHTER

HOUSE

SOWING

FARROWING

WEANING GROWING

FATTENING

CROP FARM

4,000 Ha

FODDER PRODUCTION

FACILITIES

CROPS

ENERGY

CARCASS PORK MEAT

SWINE

NUCLEUS PIGS

BIO-FERTILISERS

FODDER

BIO-GAS PLANT

NUCLEUS

BREEDING CENTERMAJOR

UNIT

13

0,33

2,00

1,13

Bio-gas Plant Fodder Production Facilities New Pig-Breeding Complex

0,35

2,6

5,89

14

2011 2015 +%

15

16%

35%

49%

2010

11%

78%

11%

2015E

9%

41%

6%

44%

2011E

Selective breeding

Pork

Commercial swine

Byproduct

Crops

During 2011-2012 the

Company plans to make

expansion in the

segment of added-value

product and to decrease

external sales of

harvested crops

16

2 5512 834

4 308

6 348

10 332

944 956

2 152

3 401

6 565

522 368

1 151

2 381

5 546

2011E 2012E 2013E 2014E 2015E

Sales EBITDA Net income *USD thousand

17

1

2

3

4

56

18

Dmitry Divulskiy

51%

Alexander Kurochkin

20%

Dmitry Cherkaskiy

19%

Alexander Skripnik

10%

Dmitry Divulskiy

41%

Alexander Kurochkin

16%

Dmitry Cherkaskiy

15%

Alexander Skripnik

8%

Others20%

Before the private

offering on NewConnect

After the private offering

on NewConnect

19

AVANTAZH CAPITAL Investment Group, LLC

9 Trinklera Street, 61023, Kharkov, Ukraine

t/f +380 /57/ 700 44 14, 751 76 20

www.avantazh-capital.com

[email protected]

Authorised Adviser of

EastUkrAgro Public LTDEastUkrAgro Public Limited

15, Agiou Pavlou Street, Ledra House,

1105 Agios Andreas, Nicosia, Cyprus

29 Kotlova Street, 61052, Kharkov, Ukraine

t/f +380 /57/ 762 34 68

www.eastukragro.com

[email protected]

20