Liudmyla GinnerJuly 2015

MAJOR CONSTRAINTS FOR THE INVESTMENT IN UKRAINIAN FARMLAND

LOCAL SPECIFICS• access to local authorities and good contacts with villages • agricultural knowledge: crop rotation and growth • local staffing, management, and control – multiple cases of fraud

SOLUTIONOn-going support of the long-term investment by the independent third party with • strong local expertise• network in formal and informal circles• experience in analysis of “arrangements” on siphoning off/theft of assets; reveal of shady

counteragents, non-standard business or financial transactions

SSC KIEVINVESTMENT CONSULTANCY

Independent investigation Technical due diligence of acquisition targets

Multipurpose marketing analysis Strategy verification and assessment

Structuring and composition of business plans Analysis and evaluation of competitors business models

Organization and structuring company`s financials according to international IFRS, GAAP standards Additional Services

for: private investors, investment funds, equity holdersour company guarantees 100% confidentiality and non-disclosure of information obtained in the course of

cooperation

In the course of a financial investigation our expertise enables to establish:

Objective picture of the company’s financial performance Accuracy of financial and management statements presented to the owner

Objective information on the condition of land bank, validity of leases and their registration in Urban Planning and Land Commission

Deals closed on knowingly disadvantageous terms to the personal benefit of staff Usage of budget and financing not as initially intended

Unauthorized payments Purchase of inexistent services

Overstated inputs prices and understated product prices

THE EXPERTISE: Liudmyla Ginner

30 years of experience in operational and financial areas on all levels from single-production units to large multi-national corporations;

strong network within state, non-governmental and private institutions;

unique on Ukrainian market;focused on successful long-term investment strategy;based on principles of honesty, responsibility and commitment to the

common value;Among the partners are SGRF, SSC, large private investors (non-

disclosed)*.

*references available upon request

WHY to INVEST in UKRAINIAN FARMLAND• 25% of the world “black soil” - 32.5 m ha of arable land• typical farm unit size of 5,000 ha+ (5 times the EU average) leads to economies of scale• Ukraine is world largest exporter of sunflower oil and one of the biggest exporters of corn, barley and wheat

FARMLAND IS AN ASSET THAN OVEPERFORMS ANY REAL ESTATE CLASS

Resource: Savills Research and publicly available data

population will reach 10bn till 2050farmland will be in deficit to feed increasing number of people

Resource: United Nations

GLOBAL FARMLAND PRICES

Resource: Bloomberg

Resource: World Bank

Resource: Fisher and Shan 2010

Ukraine could potentially boost its

grain production to

130-180M tons per annum or 3x

current production levels and

become the

world’s largest grain exporter

BEST REGIONS FOR FARMLAND IN UKRAINE

Resource: Ukrstat

• De-facto indefinite ban on sale of agricultural land:

• Moratorium specifies that it can’t be lifted “until the adoption of law on turnover of agricultural land but no earlier than 2016”.

• Average size of land plot is 4ha;

• All fields, except for those with state property, are divided into small plots, often with number of deceased owners;

• Average rent is $50 per hectare.

REGULATIONS

WE CAN HELP YOU TO USE THIS

OPPORTUNITY!

THANK YOULiudmyla Ginner lginner@gmail.com

Anastasia Gutsol anastasia.gutsol@gmail.com