PRODUCTION OF BROILER HATCHING EGGS INVESTMENT PROJECT Incor, OOO Meshchovsk District

2 GOALS AND ADVANTAGES OF THE PROJECT PURPOSES COMPETITIVE POSITION Broiler crosses COBB Automated equipment Economically advantageous location of the production Absence of concurrence in Russia CREATIONINCREASEDECREASE of the domestic market of hatching eggs of the production of poultry of the flow of import hatching eggs SUBSTITUTION of import products by domestically produced ones

3 PROJECT DESCRIPTION INDUSTRIAL COMPLEX CONSTRUCTION CONSTRUCTION PERIOD Site for stockkeeping Central egg- handling plant Slaughterhouse, pit Logistics centre Commencement of construction The 1 st phase of the construction, ACW of the 2 nd and the 3 rd order Market launch, launch of the 2 nd and 3 rd order Terms of project realization, years

4 PROJECT FINANCIAL SUMMARY Volume of investment, million RUB Planned capacity, million items per a year Total revenue, million RUB Operating expenses, million RUB Pretax profit, million RUB Profit margin, % Pay-off period from the date of its launch, years Full cost recovery of the project, year

5 EXPENSES, THOUSAND RUB Feed additives Veterinary preparations Young breeders Materials, packages Electricity, gas, water Payroll with extra charge Selling expenses Executive expenses SUM TOTAL THOUSAND RUB

6 ASSORTMENT AND PRICE POLICY Hatching egg Commercial egg Powdered eggs Poultry (carcase, 1/2 carcase) Dates of product realization, daysSale price of production RUB per an item 4 RUB per an item 120 RUB per a kg 99 RUB per a kg Poultry (filet) RUB per a kg

7 SALES PLAN Hatching egg, thousand items Commercial egg, thousand items Poultry (carcase, 1 / 2 carcase), t Всего IN VOLUME TERMS Hatching egg Commercial egg Poultry Sum, net of VAT Всего Sum, inclusive of VAT 10 % IN MONETARY TERMS, THOUSAND RUB

8 SALES GEOGRAPHY Moscow THE DELIVERY IS PLANNED TO THE CFD AND TO THE STATES OF THE FORMER SOVIET UNION Tver Yaroslavl N. Novgorod Vladimir Kostroma Vologda Leningrad Novgorod Pskov Smolensk Bryansk Kaluga Kursk Tula Voronezh Tambov Saratov Samara Orenburg Kirov Kazakhstan

9 FINANCIAL RESULTS Investment amount, milliard RUB Net present value, million RUB Annual net profit, milliard RUB 6, ,3 Internal rate of return, % Average annual volume of sales, milliard RUB >2,5 Simple, years Discount, years PAYBACK PERIOD 79

10 RISKS AND RISK SENSITIVENESS Oversupply of hatching eggs on the Russian market RISKS Quarantine restrictions on the importation of breeding material Deficiency of qualified personnel Project insurance SOLUTIONS Training and professional development Loss of product quality Access to the market of the neighboring countries Implementation of quality management system

11 CONTACT INFORMATION 5, Vilonova Street, Kaluga, Russia, ph.: 8 (4842) , fax: 8 (4842) , Vilonova Street, Kaluga, Russia, the 4th floor ph.: 8 (4842) ,