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National export and investment agency “KAZNEX INVEST” JSC Ministry for investment and development of the Republic of Kazakhstan Acquisition and greenfield investment opportunities in vegetables processing and other food processing industries in Kazakhstan Vast farmland areas Agriculture with a potential to increase efficiency Market potential for processed food Significant market consolidation potential Acquisition and greenfield investment opportunities with the range of 0,5 – 400 mln. USD January 2016 This Presentation does not constitute an offer or invitation to the public in any jurisdiction to purchase any shares or assets of any Company, and does not constitute or form any part of any offer or invitation to purchase shares, nor shall it or any part of it form the basis of, or be relied upon, in any way in connection with any contract or investment decision relating to any shares. Information contained herein should be treated as confidential. Copying or distributing without prior written consent from Kaznex Invest is prohibited. CONFIDENTIAL Confidential 1 Agenda 1. Executive summary and basic information 2. Acquisition and greenfield investment opportunities CONFIDENTIAL 2 Executive summary Kazakhstan is a dynamically developing economy with favorable demographics and low public debt Kazakhstan is the largest economy in Central Asia. The country has got vast oil reserves, deposits of metals and robust agricultural potential with lands suitable for both livestock and grain production. Kazakhstan dynamic economic growth Executive summary Growing demand in regional and domestic markets for higher value and quality food products of packaged food, branded products and retail private labels is an outcome of Kazakhstan’s growing economy and increasing disposable incomes; Kazakhstan has a potential of a springboard for expanding into the entire Central Asian, Caucasus, China and India regions with combined GDP of more that USD 16 trillion, acting as an agricultural hub for the macro region; Attractiveness of the end-consumer market as Kazakhstan represents a relatively large mid-income market with GDP per capita of USD 12,950 in 2014 corresponds to that of most of the benchmark countries. Kazakh potential in agriculture Strong potential for the development of agribusiness in Kazakhstan due to country’s considerable land resources, as Kazakhstan has the world’s 12th largest arable land area, and fifth in the world in terms of pastureland of 182.2 million hectares, but it uses only about 30% of the pastures; Kazakhstan plays an important role in ensuring food security in Central Asia. Taking into account the interaction within the Organization of the Islamic food security, the possibilities of Kazakhstan in this area will increase significantly; Agricultural development program “Agribusinesses 2020” includes state support directed at small, medium and large farms to improve their effectiveness and develop the sector as a broad level; The special program of Plan of the Nations “100 Steps” is being implemented to address the problem of livestock forage and crop production as well as specifically highlights importance to improve the quality of the meat and dairy goods. Summary of projects Capex Vegetable required crops Others Summary of projects 400 m USD 21 100 m USD 17 20 14 16 10 m USD 8 23 1 m USD 13 Page number Greenfield Brownfield 9 10 15 18 19 22 CONFIDENTIAL 3 Kazakhstan’s economy and basic market data Kazakhstan is a dynamically developing economy with favorable demographics and low public debt Kazakhstan is the largest economy in Central Asia. The country has got vast oil reserves, deposits of metals and robust agricultural potential with lands suitable for both livestock and grain production. Kazakhstan’s economy Economic growth Since 2000 Kazakhstan’s economy has been growing dynamically (among the world’s fastest developing countries) Average GDP growth rate of 7.7% in years 20002014. GDP increase has been driven by favorable market prices for Kazakhstan’s leading exports – oil, metals and grain. GDP growth rate (%) 9.8 13.5 9.8 9.6 9.3 9.7 10.7 8.9 2000 2002 2004 2006 5.0 1.2 2008 2010 6.0 4.3 2012 2014 USD/KZT 190 170 150 130 110 KZT devaluation KZT devaluation 2006 Demographics 2008 2010 2012 2014 Age structure (ths) Population of 17.3 million in 2013 expected to increase to 18.7 million by 2020 Male Favorable age structure implies a steadily increasing demand for meat and agricultural products 90 - 94 75 - 79 60 - 64 45 - 49 30 - 34 15 - 19 0-4 Median population age is at 29 years (compared to 46 in Germany, 38 in Poland, 31 in Brazil) 900 Public debt Kazakhstan has been the first former Soviet republic to repay all of its debt to the IMF, 7 years ahead of schedule In 2014 Kazakhstan sold first overseas dollar bonds in 14 years, issuing USD 2.5bn of 10- and 30-year bonds 600 300 0 Female 0 300 600 900 Public debt (% of GDP) 15.5 11.4 8.1 The public debt of Kazakhstan since 2011 remains stable between 12-14% Basic information 7.5 7.3 3.3 2004 10.2 6.7 2006 5.9 13.8 12.6 13.2 12.1 6.7 2008 2010 2012 2014 Basic information Public debt Total area: 2,7 mln. km2 (9th largest in the world); Official language: Kazakh, Russian; Currency: Tenge (₸) KZT); Capital: Astana; Largest city: Almaty; Administrative division: 14 regions + 2 cities of republican significance; Membership in the organizations: UN, IMF, WB, OSCE, OIC, WTO. CONFIDENTIAL 4 Kazakhstan’s food processing industry Market data and value Market data and value For the period 2010-2014 gross production of the agriculture goods in Kazakhstan increased by 1,5 times 5 and reached 8 bln. USD in 2014. 4 Growth and investment attractiveness 3 Agro sector is becoming more competitive and 2 export-oriented. Since 2010 export of agriculture 1 commodities and processed products has 0 increased by 1,5 time and reached 2,6 bln. USD. Food processing total turnover for the year 2014 reached import and export indicators in the year 2015 were 2,9 and 1,1 bln. USD respectively Total turnover of food processing, bln.USD 2010 2.9 1 1.1 1.2 1.1 2011 2012 2013 2014 Total tunover FDI inflow to the sector increased by 2 times and reached 894,5 mln. USD in 2014, out of which FDI 250 into the food processing industry was about 219,4 200 mln. USD. 150 4.1 3.1 2.9 2.8 2.7 1.7 0.9 4.3 4 3.8 Import Export FDI to food processing, bln.USD 213.9 182.8 200 182.3 219.4 Currently there are about 1 689 enterprises of small 100 medium and large sizes operating in the sector of 50 food processing in the country 0 Local market provision with domestically produced main categories of goods was around 80%. 2010 2011 2012 2013 2014 Food processing production volume, bln.USD Average production capacity for companies in 7 subsectors of food processing was around 42%, varying from lowest 16,2% in vegetables processing to highest 66,2% in production of canned meat 6 4 3.7 4.5 4.7 2011 2012 5.6 5.2 2 As of 2014 overall food processing industry of the country increased by 2,9% and reached over 5,5 bln. USD. 0 2010 2013 2014 Agro strategy of Kazakhstan Agro strategy of Kazakhstan Strategy “Kazakhstan - 2050” 10 priority subsectors of To increase the level of state support for agriculture by 4,5 time by 2020; agriculture and food To increase the agro contribution to GDP of the country by 5 times by 2050. Strategy “Agrobusiness - 2020” Investment subsidies to subsectors of crop production and animal feedlots; Investment subsidies; Meat processing Production of fats Deep processing of grain Fruits and vegetables processing Confectionery Fish processing Lowering interest rate on credit lines and lease; Subsidies for purchase of raw materials for companies; Milk processing processing Exemption from income tax on income of smallholders; Processing of hides Sugar production Wool processing Subsidies for the paid VAT CONFIDENTIAL 5 Acquisition and greenfield investment opportunities Allocation of investment opportunities with regard to country’s regions Allocation of investment opportunities with regard to country’s regions Greenhouse complex on vegetables and flowers, crude grass fiber production opportunities exist in West Kazakhstan region Production of instant food in Special Economic Zone “Astana-new city” Atyrau and Mangystau regions - Fish products and caviar Kyzylorda vegetable production Confectionary and diary production is concentrated in Aktobe region East Kazakhstan characterized Jerusalem artichoke region crops is by Pavlodar region has developed innovative approach to raising tomatoes and cucumbers, production of canned vegetables; Zhambyl region – baby food production Almaty region is famous for its agricultural complexes Kostanay region – Greenhouses, Safflower oil production North Kazakhstan region – mushroom production and greenhouse facilities CONFIDENTIAL 6 Agenda 1. Executive summary and basic information 2. Acquisition and greenfield investment opportunities CONFIDENTIAL 7 Project information Establishing agricultural farm on Jerusalem Artichoke cultivation Project cost: USD 0-5 mln. Location: Eastern-Kazakhstan Region, Bistruha and Menovnoe villages Implementation period: 2016-2017 Project scope: Creation of a modern agriculture holding for breeding and deep processing of Jerusalem artichoke. Finished product: Jerusalem artichoke Production capacity: 25 000 tons of Jerusalem Artichoke in various forms Potential markets: Kazakhstan and CIS countries Provision of land and premises: The company owns 350 hectares of pasture land, building and farm machinery Required financing: USD 1,6 mln. Required investor type: ☑ Equity ☑ Debt Project initiator Company name Zelenstroy.kz LLP Year of establishment 2010 Presence on the market: 2015 Current operation: Agricultural complex on Jerusalem Artichoke cultivation ☐ Technology transfer ☐ Other Project profitability for the period of 5 years (in USD) Project profitability In USD thousands Year 1 Year 2 Year 3 Year 4 Year 5 89 508 40 894 48 614 89 051 33 748 55 303 96 500 36 345 60 155 101 773 40 975 60 797 108 134 43 705 64 428 1 469 4 289 4 995 3 839 2 966 9 033 36 133 6 552 26 208 7 196 28 786 7 357 29 428 8 043 32 170 Sales COGS EBITDA Interest, depreciation and other Taxes Net profit Project profitability Total 484 966 195 667 289 297 17 558 38 181 152 725 Project capex 1.6 mln USD Discount factor 8% Project NPV 1.25 mln USD Project ROI 14% Project IRR 36,5% Payback Period 3 years Contact Contact information Veronika Yun KAZNEX INVEST, JSC +7 7172 91 90 40 (int. 1124) E-mail: [email protected] Project initiator’s contacts: Zelenstroy.kz LLP Eastern-Kazakhstan Region, Bistruha and Menovnoe villages CONFIDENTIAL 8 Project information Construction of the plant on white mushroom (champignon) production Project cost: USD 0-5 mln. Location: North-Kazakhstan region, Petropavlovsk city Implementation period: 2016 Project scope: Construction of the plant on white mushroom (champignon) production with full production cycle of compost preparation, mushroom cultivation, with following processing. Finished product: white mushroom (champignon) Production capacity: 1 800 tones per year Potential markets: domestic market of Kazakhstan Provision of land and premises: initiator owns the land in the acreage of 3,97 ha, necessary for the production objects and availability of required infrastructure, as well as preliminary contract agreements with equipment suppliers. Required financing: USD 2,2 mln. Required investor type: ☑ Equity ☐ Debt Project initiator Company name «Gribnoi LLP Year of establishment 2014 Presence on the market: 2015 Current operation: Project initiators are building the infrastructure with own financing ☐ Technology transfer mir» ☐ Other Project profitability Project profitability for the period of 5 years (in th. USD) Indicator Year 2 Year 3 Year 4 Year 5 Revenue COGS Taxes Net profit 2 618 1 696 121 801 3 273 1 696 132 1 445 3 273 1 696 143 1 434 3 273 1 696 153 1 424 Project profitability Project capex USD 2,2 mln. Project NPV (7 years) USD 0,5 mln. Project IRR 33% Payback Period 2,2 years Payback Period disc. 5,3 years Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: «Gribnoi mir» LLP CONFIDENTIAL 9 Project information Establishment of the fish processing plant Project cost: USD 0-5 mln. Location: Mangistau region, Aktau city Implementation period: 2016 Project scope: construction of the fish processing plant on the production of the processed Caspian sea anchovies Finished product: Anchovies Production capacity: 1 500 tons of anchovies per annum Potential markets: local market of Kazakhstan, Russia Provision of land and premises: initiator is in a process of receiving land and premises required for further project implementation. Required financing: USD 1,5 mln. Required investor type: ☑ Equity ☑ Debt Project initiator Company name Mayor’s office of Mangistau region Year of establishment 2015 Presence on the market: 2015 Current operation: This is a greenfield project, therefore no operations are currently undertaken ☐ Technology transfer ☐ Other Project profitability Project profitability for the period of 7 years (in th. USD) Indicator Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Revenue COGS Taxes Net profit 2 070 501 47 1 569 2 280 690 47,7 1 590 2 510 701 54,2 1 809 2 760 716 61,3 2 044 3 040 738 69,1 2 302 3 340 763 77,3 2 577 Project profitability Project capex USD 1,5 mln. Project NPV (7 years) USD 2,6 mln. Project IRR 12 % PI 2,4 Payback Period 1,2years Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: Mayor’s office of Mangistau region CONFIDENTIAL 1 0 Project information Establishment of the modern factory on production of instant food in Special Economic Zone Project cost: USD 10-15 mln. Location: Astana city, Special Economic Zone “Astana – new city” Implementation period: 2016-2018 Project scope: Establishment of the modern factory on production of instant food in Special Economic Zone. Among the main division of the factory will be instant noodles, confectionery, spices, instant tea and coffee, etc. Finished product: Instant noodles, confectionery, spices, instant tea and coffee Production capacity: 18,2 thousand of tons annually Potential markets: local market of Kazakhstan, Eurasian union, and China Provision of land and premises: Availability of land and premises required for the project as well as documentation for the required infrastructure of electricity and water. Availability of contract agreements with technology and equipment suppliers Required financing: USD 14,3 mln. Required investor type: ☑ Equity ☑ Debt Project initiator Company name Kazbrand LLP Year of establishment 2001 Presence on the market: 2001 Current operation: Production and export of wheat and flour from Kazakhstan to neighboring countries ☑ Technology transfer ☐ Other Project profitability Project profitability Project profitability Project capex USD 9,82 mln. Project IRR 31,8% Project NPV USD 24,7 mln. Payback Period 3,2 years As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: Kazbrand LLP CONFIDENTIAL 1 1 Project information Construction of the factory on crude grass fiber production with annual capacity of 14 400 tons per annum Project cost: USD 20-30 mln. Location: West-Kazakhstan region, Daryinsk village Implementation period: 2016 Project scope: Establishment of the modern factory on crude grass fiber production made of bulrush, sunflower footstalk and other agricultural crops Finished product: crude grass fiber Production capacity: 14,4 thousand of tons annually Potential markets: local market of Kazakhstan Provision of land and premises: Availability of land and premises required for the project as well as documentation for the required infrastructure of electricity and water. Availability of contract agreements with technology and equipment suppliers. The technology for fiber production had been developed as well as testing was successfully performed. Required financing: USD 21 mln. Required investor type: ☑ Equity ☑ Debt Project initiator Company name Sarmin SP Year of establishment 2011 Presence on the market: 2011 Current operation: Production tests of crude grass fiber ☑ Technology transfer ☐ Other Project profitability Project profitability Project profitability Project capex USD 21 mln. Project IRR 15,7% Project NPV USD 19 mln. Payback Period 3,7 years As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: Sarmin SP CONFIDENTIAL 1 2 Project information Construction of greenhouse complex on organic tomatoes cultivation Project cost: USD 30-40 mln. Location: North-Kazakhstan region, Petropavlovsk city Implementation period: 2016 Project scope: Establishment of the modern factory on greenhouse complex on organic tomatoes cultivation. Finished product: Fresh organic tomatoes Production capacity: 7 thousand of tons annually Potential markets: local market of Kazakhstan, Russia Provision of land and premises: Availability of land and premises required for the project as well as documentation for the required infrastructure of electricity and water. Availability of contract agreements with technology and equipment suppliers Required financing: USD 32,5 mln. Required investor type: ☑ Equity ☑ Debt Project initiator Company name «Greencor» LLP Year of establishment 2011 Presence on the market: 2011 Current operation: Production and export of fresh organic tomatoes ☑ Technology transfer ☐ Other Project profitability Project profitability Project profitability Project capex USD 32,5 mln. Project IRR 22% Project NPV USD 10,1 mln. Payback Period 5 years As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: «Greencor» LLP CONFIDENTIAL 1 3 Project information Construction of Greenhouse Complex with annual capacity of 300 tones Project cost: USD 2 - 3mln. Location: Kostanai region, Lisakovsk town Implementation period: 2013-2016 Project scope: Construction of greenhouse complex to raise quality vegetable products Production of high quality, competitive and export oriented product Provide Kostanai region oblast with quality products Finished product: Vegetable crops – tomatoes and cucumbers Production capacity: 300-500 tones of crops per year Potential markets: Kostanai region, Kazakhstan and CIS countries Provision of land and premises: The company owns land spot for the construction of the greenhouse with the necessary infrastructure facilities Required financing: USD 2,4 mln. Required investor type: ☑ Equity ☑ Debt Project initiator Company name Green Island Kazakhstan LLC Year of establishment 2013 Presence on the market: 2015 Current operation: Greenhouse complex that raise vegetables with the highest quality ☑ Technology transfer ☑ Other Project profitability for the period of 7 years (in th. USD) Project profitability Project profitability Project capex USD 2,4 mln. Project NPV (7 years) USD 1,9 mln. Project IRR 34% Payback Period 3,9 years Payback Period disc. 4,3 years As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: «Green Island Kazakhstan» LLP CONFIDENTIAL 1 4 Project information Construction of a Plant to Produce Safflower Oil Project cost: USD 0-5 mln. Location: Kostanai region, Zhitikara village (Industrial Zone of Zhitikara) Implementation period: 2016-2022 (6 years) Project scope: Construction of a plant that will produce the safflower oil with the cold pressing method Finished product: Safflower Oil and Oil Meal (processed safflower oil) Production capacity: 240,6 tones of Safflower Oil; 433,1 tones of Oil Meal per annum Potential markets: Local market; Russia Federation and China Provision of land and premises: The initiator owns 2 hectares of land in the industrial zone of Zhitikara Required financing: USD 0,9 mln. Required investor type: ☑ Equity ☐ Debt Project initiator Company name “Kaz-IR Agro” LLC Year of establishment 2009 Presence on the market: 2009 Developed brand: “Safloria” Current operation: Economic feasibility study is being developed. Business plan is ready. ☐ Technology transfer ☐ Other Project profitability Project profitability Project capex Project profitability Project profitability 1,1 mln USD Project ROE 18 % Project IRR 18 % 5,5 years Payback Period As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: Zhambyl Region, Shu District, Birlik village CONFIDENTIAL 1 5 Project information Modernization of existing confectionery factory Project cost: USD 15-20 mln. Location: Aktobe region, Aktobe city Implementation period: 2016-2017 Project scope: Modernization of the existing plant through establishment of the modernly-automized factory of the production of the wide assortment of confectionery products. Finished product: Confectionery products Production capacity: 10 000 tons annually Potential markets: local market of Kazakhstan, Russia Provision of land and premises: existing factory established in 1971, availability of additional land of 7,8 ha with all necessary infrastructure Required financing: USD 20 mln. Required investor type: ☑ Equity ☑ Debt Project initiator Company name Aktobe confectionery factory Year of establishment 1971 Presence on the market: 1971 Current operation: Production of confectionery products ☐ Technology transfer ☐ Other Project profitability Project profitability Project profitability Project capex USD 20 mln. Project profitabilityProject IRR 26% As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: Aktobe confectionery factory CONFIDENTIAL 1 6 Project information Construction of Greenhouse Complex in the Kostanay Region Project cost: USD 50-70 mln. Location: Kostanai region, Kostanai city Implementation period: 2016-2017 Project scope: Construction of greenhouse complex in the 25 hectare area to raise quality vegetable products with the use of modern technology. The main goal is to provide Kostanay region population with high quality vegetables all year round Finished product: Vegetable crops – all types Production capacity: 20 tones of vegetable products per year Potential markets: Kostanai region, and the border regions with Russian Federation Provision of land and premises: The initiators of the project are in search for a land with the ready to use infrastructure Required financing: USD 51,5 mln. Required investor type: ☑ Equity ☑ Debt Project initiator Company name Agricultural Complex “Churilovo” Year of establishment 2012 Presence on the market: 2012 Current operation: Financing issues are being solved; business plan and marketing plan is being developed by the initiators ☑ Technology transfer ☑ Other Project profitability Project profitability Project profitability As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: Agricultural Complex “Churilovo” CONFIDENTIAL 1 7 Project information The creation of pond basin complex for growing sturgeon fish to produce fish trade Project cost: USD 0-5 mln. Location: Atyrau Region; Algaly village Implementation period: 2016-2024 (8 years) Project scope: Creation of fish industry complex on a full cycle basis to breed fish products and caviar varieties Finished product: Fish products and caviar Production capacity: 100 tones of fish products (sturgeon) and 100 tones of fine-mesh fish Potential markets: Kazakhstan, Central Asia and Russian Federation Provision of land and premises: The initiator owns 150 hs of land, where 30 hectares is comprised of artificial lake that has been constructed in the Soviet times Required financing: USD 4,6 mln. Required investor type: Equity ☑ Debt Project initiator Company name “Guryevrybpr om” LLC Year of establishment 2015 Presence on the market: 2015 Current operation: Breeding of various types of fish, mainly sturgeon ☐ Technology transfer ☐ Other Project profitability Project profitability Project profitability As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: “Guryevrybprom” LLC CONFIDENTIAL 1 8 Project information Establishment of the greenhouse complex on vegetables and flowers cultivation Project cost: USD 0-5 mln. Location: West-Kazakhstan region, Terektinsky district, Poima village, industrial zone Implementation period: 2017-2018 Project scope: construction of the greenhouse complex on vegetables cultivation Finished product: fresh and organic vegetables Production capacity: 2 000 tons of vegetables, and 1 mln. units of flowers Potential markets: local market of Kazakhstan, Russia Provision of land and premises: initiator owns land acreage of 18 ha, availability of necessary for the production objects and availability of required infrastructure, as well as preliminary contract agreements with equipment suppliers. Project initiator Company name SEC Oral Year of establishment 2010 Presence on the market: 2010 Total assets: USD 5,3 mln. Current operation: Preparation and development of the project documentation Required financing: USD 3 mln. Required investor type: ☑ Equity ☐ Debt ☐ Technology transfer ☐ Other Project profitability Project profitability Project profitability As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: SEC Oral CONFIDENTIAL 1 9 Project information Establishment of the factory on the production of baby foods in closed package Project cost: USD 5-15mln. Location: Zhambyl region, Taraz city Implementation period: 2016-2017 Project scope: Establishment of the factory on the production of baby foods in closed package in wide assortment Finished product: baby foods in closed package in wide assortment Production capacity: 12 800 tones per year Potential markets: mainly domestic market of Kazakhstan Provision of land and premises: initiator owns the land and real estate necessary to build the factory. Project documentation is under development Required financing: USD 15 mln. Required investor type: ☑ Equity ☑ Debt Project initiator Company name Mayor’s office of Zhambyl region Year of establishment 2015 Presence on the market: 2015 Current operation: This is a greenfield project initiated by the government of the region ☐ Technology transfer ☐ Other Project profitability Project profitability Project profitability As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: Zhambyl Region, Taraz city CONFIDENTIAL 2 0 Project information Establishment of the canning plant on the production of processed (canned) vegetables, with preceding construction of vegetables warehouse Project cost: USD 300-400 mln. Location: Pavlodar region, Irtysh district, Kyzylzhar village Implementation period: 2016-2018 Project scope: the project assumes the expansion of existing 400 ha of pasture land, establishment of the canning pant on the production of processed (canned) vegetables and preceding construction of the vegetables warehouse. Finished product: canned vegetables Production capacity: total capacity of the warehouse is approximately 2 000 tons Potential markets: local market of Kazakhstan, Russia Provision of land and premises: initiator owns 400 ha of land, availability of the necessary infrastructure of electricity, water supply, as well as preliminary contract agreements with equipment suppliers Required financing: USD 350 mln. Required investor type: ☑ Equity ☐ Debt Project initiator Company name Mysl farm cooperative Year of establishment 1994 Presence on the market: 1994 Current operation: Cultivation of vegetables, such as tomatoes, cucumbers, white cabbage, eggplants, etc. ☐ Technology transfer ☐ Other Project profitability Project profitability for the period of 7 years (in th. USD) Project profitability Project profitability As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: Mysl farm cooperative Pavlodar region, Irtysh district, Kyzylzhar village CONFIDENTIAL 2 1 Project information Innovative approach to raising tomatoes and cucumbers Project cost: USD 0-5 mln. Location: Pavlodar region, Lebyajinskiy region, Yamishevo village Implementation period: 2016 Project scope: The greenhouse is built 1.5 meters above the ground. The inside of the greenhouse is made of polycarbonate materials that absorb heat easily. The inside temperature is controlled from the outside. Solar panels instituted on the outer side of the greenhouse, that will provide with energy all year round. On the adjacent to the greenhouse, a lab will be built that will be used for more in detail control the yield of crops. Samples will be analyzed at site too. Finished product: organically raised crops of tomatoes and cucumbers Production capacity: 30+ tones per year of crops Potential markets: mainly Pavlodar region and close by regions Provision of land and premises: initiator owns the land and real estate necessary to build the greenhouse Required financing: USD 1 mln. Required investor type: ☑ Equity ☐ Debt Project initiator Company name «Nektar» IE Year of establishment 2014 Presence on the market: 2015 Current operation: Project initiators are building the infrastructure with own financing ☐ Technology transfer ☐ Other Project profitability Project profitability Project profitability As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: «Nektar» IE Pavlodar region, Lebyajinskiy region, Yamishevo village CONFIDENTIAL 2 2 Project information Construction of industrial greenhouse complex Project cost: USD 0-5 mln. Location: Kyzylorda region, Kyzylorda city Implementation period: 2016-2017 Project scope: Construction of the industrial greenhouse complex of the territory of 5,7 ha Finished product: Vegetables of tomatoes and cucumbers Production capacity: 3 300 tons annually Potential markets: mainly Kyzylorda region and close by regions Provision of land and premises: initiator owns the land and real estate necessary to build the greenhouse Required financing: USD 1,8 mln. Required investor type: ☑ Equity ☐ Debt Project initiator Company name “Agroecoprodu ct” LLP Year of establishment 2015 Presence on the market: 2015 Current operation: This is a greenfield project, thus no operations a re currently undertakes ☐ Technology transfer ☐ Other Project profitability Project profitability Project profitability As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request Contact Contact information Veronika Yun Manager at Sectorial department on agriculture and food processing, KAZNEX INVEST, JSC Mob: +7 771 805 4083 E-mail: [email protected] Project initiator’s contacts: Boranbayev Farm cooperative CONFIDENTIAL 2 3