Increase in ag investments through M&A Bohdan Chomiak, UkrAgroConsult

Global Trends

Ernst & Young Q update indicates that total deals had fallen to 165 and value fell to $24 Billion

Global Trends

Euro-Denominated Corporate IG Volume: This chart shows the number of deals and the volume in USD billions for Euro-denominated corporate IG bonds from the 1st quarter of 2008 up to and including the 3rd quarter of 2012.

Ukraine – The Dark Side BuySell O/N3546 1W W M Overnight Cost of Money % SOURCE: NBU Return on assets, % Return on equity, % Credit growth %71%74%0%1%9%1% Commercial Bank Performance Month over Month Change in Reserves $BN SOURCE: NBU

Agriculture – Grows Economy - Crawls SOURCE: STATE STATISTICS COMMITTEE Ukraine – Goes with the Force

Ukraine – Key Growth Drivers ● Equity Offerings to June $1.5 billion ● Debt – Corporate Bonds and Borrowings - $3.5 billion THE PRIMARY DRIVER IS PROFIT

Ukraine – Use of Funds

Ukraine – Investment Impact Growth of labor productivity 1990 = 100% TOTAL CROP PRODUCTION ANIMAL PRODUCTION

Ukraine – Investment Impact Creation of Global Competitors Hatchery Breeder Farm Grain Storage Facility Farms for Young Laying Hens Feed Mill Egg Processing Plant Farms Laying Hens Retail Chains Branded Points of Sale Wholesale Export Direct Sales Export Sunflower Seed Crushing Quality Cold Pressed Oil (B2B) Heating Fuel

Ukraine – Two Jeddai Knights MERGER MASTER ACQUISTION MASTER

Ukraine - Merger and Acquisition Opportunity Pork Sector Kyiv – 20% of Ukraine’s Total Consumption No dominant player

Ukraine – Merger and Acquisition or COOPERATION 3. Invest into logistical capability (Elevators, Port facility etc) 2. I consolidation stage - up to 300 th. ha. (mid sized farms [25-75 th. ha. each]) 5.Leading international agro company 5-STEP STRATEGY 1. Create and lead first agricultural Co-op 4. II consolidation stage to boost total land bank up to 500-1,000 th. ha. (small farms and leading farms [ 75 th. ha.]) Absolute leader producer of agricultural commodities in Ukraine and CIS Source:Lapersa vision Small- and midsized farmers can gain access to modern and efficient agricultural machinery, EU know-how, infrastructure (including storage and port facilities) and better margins by simply Co-operating.

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