One of the largest meat-processing

factories in Ukraine

Investment teaser December 2019

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 Privacy statement

This confidential document (hereinafter referred to as the “Document”) was prepared by Investment Venture Group, LLC (hereinafter referred to as “InVenture”)
in order to provide information on the Investment offer of Ternopil Meat Processing Plant to a limited circle of potential investors.

This document and its contents are confidential and may not be copied, reproduced, distributed or transferred to another person without the prior written
consent of InVenture. If the recipient of the Document decides not to invest in this Investment Offer, he agrees and undertakes to return the InVenture
Document immediately after such a decision is made.

Despite the fact that this Document has been prepared with the greatest possible thoroughness, InVenture does not represent or warrant, either directly or
indirectly, its accuracy and completeness. The Present Document contains opinions and evaluations that reflected the views of the owner and InVenture
company at the time of preparation of the information and which may be changed subsequently and cannot be used in any official or other documents. The
Document may contain some assumptions regarding future events. Such estimates or forecasts are subjective opinions and, in turn, can be both true and false.

The only purpose of this Document is to provide background information necessary for the recipient to form a general idea of the Investment Offer and its
investment attractiveness.

The Document cannot be the basis for making an investment decision, credit or any other assessment and should not be regarded as an InVenture
recommendation to invest.

No persons other than those specified in this Document are authorized to provide any information or make any statements regarding the Investment Offer. If
such information is provided or statements are made, they are in no way related to the InVenture position.

This Document is not either any confirmation of the owner’s obligations to accept investments, or is any form of advertising.

InVenture reserves the right to negotiate with one or more potential investors at any time and enter into agreements without prior notice to other participants.

All inquiries, requests for additional information or any other contact should be sent to InVenture. In no circumstances should direct contacts with the owner of
the Investment Offer, its managers, employees, agents or clients be made.

By admitting this Document, the recipient confirms the agreement with the conditions presented above.

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 Global Meat Market FAO Meat Price Indices 2000-2019 (11 months) / 2000-2004 yy - 100%

250,0
While meat consumption remains relatively stable in developed
countries, in developing countries, meat consumption per capita has 200,0
doubled since 1980. Population and per capita income growth, along
with changes in preferences for consumption of certain types of 150,0
food lead to an increase demand for livestock products.
100,0
According to FAO forecasts, the meat production on a global scale
50,0
should double by 2050 due to mainly developing countries.
0,0
At the same time, global meat production will decline for the first

5/2002

2/2004

11/2005

8/2007
1/2000
8/2000
3/2001
10/2001

12/2002
7/2003

9/2004
4/2005

6/2006
1/2007

3/2008
10/2008
5/2009
12/2009
7/2010
2/2011
9/2011
4/2012
11/2012
6/2013
1/2014
8/2014
3/2015
10/2015
5/2016
12/2016
7/2017
2/2018
9/2018
4/2019
11/2019
time in more than two decades following 2019. The decline is due to
the expected reduction in pork production in China, which accounts
for almost half of world production, at least 20%. This in turn was the
result of an outbreak of African swine fever.

In the long term, favorable conditions will develop in the global meat Meat Production and International Trade for the Main Countries 2018-2019
market. By 2028, as the population grows from 7.4 billion to 8.1
Production Import Export Consumption
billion, meat consumption will increase from 34.7 kg to 35.1 kg per
2018 2019 (f) 2018 2019 (f) 2018 2019 (f) 2018 2019 (f)
capita.
China 6 456 6 866 2 017 2 608 63 59 8 430 9 415
India 2 534 2 549 - - 1 445 1 510 1 089 1 039
The dominant types of meat in the consumer market will remain the Indonesia 568 570 208 262 - 1 775 831
most affordable and easy-to-cook poultry and pork. Iran 506 527 159 152 3 3 662 676
Japan 475 475 842 856 5 6 1 300 1 321
The most noticeable growth rates of meat production are expected Korea 279 289 524 578 4 4 792 865
in China. By 2028, the added volume of meat products in the PRC Malaysia 51 52 201 204 9 9 243 247
Pakistan 1 898 1 919 1 1 48 52 1 851 1 868
will constitute about 9 million tons annually. For comparison, in the
Philippines 309 307 175 184 3 5 481 487
USA this indicator will approach 6 million tons, and in Brazil - up to 4 Egypt 827 846 269 1 096 1 130
286 1 1
million tons. South Africa 996 950 21 20 53 46 964 924
Mexico 1 983 2 024 225 222 274 318 1 934 1 928
In the near future, the Chinese market will open for pork producers. Argentina 3 050 3 160 18 20 524 749 2 544 2 431
These expectations are based on the growing difference in pork Brazil 9 900 10 307 45 34 1 989 2 194 7 955 8 147
prices in the PRC and in foreign markets. In October 2019, quotes Chile 201 208 296 342 12 23 485 527
reached a record high of 53.8 yuan ($ 7.7) per kilogram, which is 188% Colombia 768 622 6 8 24 22 751 608
Uruguay 596 571 22 32 415 411 202 192
more than in October 2018.
Canada 1 265 1 330 259 232 467 531 1 049 1 038
USA 12 254 12 291 1 306 1 321 1 490 1 481 12 068 12 126
The larger the price gap, the more likely the increase in meat EU 8 006 7 934 336 323 384 416 7 958 7 841
imports to China and the increase of investments in the meat Russia 1 664 1 686 462 410 46 48 2 080 2 048
industry in other countries. Ukraine 363 334 3 3 50 48 316 289
Australia 2 306 2 315 14 14 1 514 1 541 805 788
New Zealand 658 672 12 13 575 589 96 96
World 71 273 72 199 9 994 10 591 10 450 11 074 70 827 71 717

Source: Meat Market Review 2019, FAO

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 Internal Meat Market and Meat Products in Ukraine Output of meat products in Ukraine, thsd.t

Output of meat products in Ukraine, thsd.t

Meat Export and Import of Ukraine, thousand USD

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 About the meat-processing factory Location

The first mention Ternopil Meat Processing Plant was in 1909.
During the Soviet Union, this factory was one of the three largest
enterprises in the country and the most prominent suppliers and
exporters of cattle meat. Capacity of the enterprise allowed to
slaughter up to 1 500 cattle or 3 000 pigs per day.
Location: Ukraine, Ternopil region, Ternopil district, Ostriv village, Promyslova str, 1
Distance:
• to the center of Ternopil – 10 km
• to the border with Poland - 196 km, Romania - 214 km, Slovakia - 358 km, Hungary - 361

In 2014, the owner of the enterprise was changed and it became a km, Belarus - 330 km
structural unit of the agricultural holding Agroprodservice, after
which a complex, large-scale reconstruction of the meat-
processing factory began, with a change of the main focus on the
production of pork meat and pork meat products.

The company resumed operations in 2016. At the moment, part of

the production is at the commissioning phase.

Today, the following workshops of Ternopil Meat Processing Plant

are already operating:
• Canning department
• Summer sausage department
• Cooked smoked sausage department
• Meat boning department
• Pork, cattle and chicken slaughter department
• Semi-finished products freezing department
• Chilled meat department

Meat-processing plant is engaged in producing and selling pork,

cattle, and poultry meat and meat products: sausage products,
semi-finished meat products, canned goods.

The enterprise has a full production cycle: from slaughtering

cattle, carcasses processing, production of meat and various meat
products, to selling through its own retail network “Meat Studio".

Ternopil Meat Processing Plant is a revival of the legendary brand!

The meat processing factory’s capacity and access to the region's

raw products base make it an attractive investment offer in terms
of developing an export-oriented enterprise to meet the
increased demand for pork in China, as well as exports of meat,
cattle and chicken meat products.

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 Property

▪ Land area: 15.3443 ha

▪ Land cadastral number: 6125286400: 01: 001: 0723

▪ Designated purpose: for full property complex maintenance

▪ Address: Ukraine, Ternopil region, Ternopil district, Ostriv village, Promyslova str, 1
Land plot
(production) ▪ Extract of the State Land Cadastre of a land plot, № НВ-6100874062014 from
24.04.14, and Decision №773 from 14.07.2015

▪ Lease agreement with the local council until 28.04.2042

▪ Rental charge - 6% of normative monetary value.

▪ Distance from residential premises: from 1.5 to 2 km (according to the norms)

▪ Land area: 5.5 ha

▪ Land cadastral number: 6125286400: 02: 001: 1204

▪ Designated purpose: for placement and operation of the main, ancillary and
auxiliary buildings and structures of the enterprises of processing, machine-
Land plot
building and other industries.
(treatment plants)
▪ Address: Ukraine, Ternopil region, Ternopil district, Ostriv village, Chernivetska
str, 2

▪ Extract of the State Land Cadastre of a land plot, № НВ-6100893652014 from

24.04.14, and Decision №774 from 14.07.2015

▪ Lease agreement with the local council until 28.04.2042

▪ Rental charge - 3% of normative monetary value.

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 Property
Main buildings and structures of the meat processing plant

Usable area (production, warehouses, offices)

▪ Total area of the property (buildings and Total area,
Buildings and structures
sq.m, Reconstructed area, Unreconstructed area,
structures): 73 190 sq.m.
sq.m. sq.m.
Buildings and ▪ Area of reconstructed premises: 32 213 sq.m. 1. Office building 6 257 5 803 455
structures
▪ Non-reconstructed / mothballed premises area: 2. Industrial premises 25 473 14 275 11 198
40 975 sq.m. 3. Repair shop 2 790 - 2 789
4. Warehouse № 1 69 - 69
5. Warehouse № 2 236 - 236
▪ Electricity. Total Power - 10,000 kW. Substations
6. Water pumping station 534 - 534
- 7 units. The contract was signed by 31.12.2019 7. Autoweight 285 285 -
with automatic prolonging 8. Unsheltered warehouse - - -
9. Warehouses 94 - 94
▪ Gas. Moderate pressure
10. Old slaughterhouse building 10 303 200 10 103
▪ Water supply. 21 artesian boreholes 11. Warehouse № 2 420 - 420
▪ Sewerage. Self-absorbing pits. 12. Treatment plants (two floors and basement) 543 543 -
13. Pre-slaughter handling 7 829 7 829 -
▪ Heating. Main boiler room - 3 tons of steam per
14. Poultry slaughterhouse 1 243 1 243 -
year (3 boilers x 1000 kg steam per year). Poultry 15. Autoweigt, sanitary inspection center 285 285 -
Utilities slaughterhouse boiler room - 0,15 tons of steam 16. Sewerage pump station 76 - 76
per year. Gas boiler room for office and gas forced 17. Boiler rooms 1 502 - 1 502
heaters in other housings. 18. Substation 203 - 202
19. Hostel 375 239 136
▪ Perimeter fence.
20. “Meat Studio” shop 642 642 -
▪ Security in the office building. 21. Check point №4 5 5 -
22. Water tank 864 864 -
▪ Entrance. Paved entrance to the property and
23. Water tower 9 - 9
paved area.
24. Car parking - - -
25. Warehouse № 3 266 - 266
26. Auxiliary premises (including compressor room) 3 032 - 3 032
27. Sewage facility, Chernivetska str. 9 854 - 9 854
TOTAL 73 190 32 213 40 975
% 44% 56%
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 The layout of the buildings and structures of the meat processing plant

1. Office building
2. Industrial premises
3. Repair shop
4. Warehouse № 1
5. Warehouse № 2
6. Water pumping station
7. Autoweight
8. Unsheltered warehouse
9. Warehouses
10. Old slaughterhouse building
11. Warehouse № 2
12. Treatment plants
13. Pre-slaughter handling
14. Poultry slaughterhouse
15. Autoweigt, sanitary inspection
16. Sewerage pump station
17. Boiler rooms
18. Substation
19. Hostel
20. “Meat Studio” shop
21. Check point №4
22. Water tank
23. Water tower
24. Car parking
25. Warehouse № 3

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 Meat processing factory capacity

Name of the workshop
Production capacity, per
Slaughter department (pigs)
Slaughter department
(cattle)
Slaughter department
(chickens)
Sausage making
department
Canning department
Meat boning department
Productive capacity of
refrigerating rooms
Productive capacity of
cooling rooms
Permitting documents:
Current capacity process Maximum production
utilization (in tonnes or %), capacity, per day (when
• Operating permit for pig
day
per day investing in reconstruction) slaughter
• Operating permit for the
52,8 t / 480 heads 13,86 t / 126 heads 330 t / 3 000 heads production of meat products
• Operating permit for the
4 t / 10 heads 0,4 t / 1 head 540 t / 1 500 heads
production of semi-finished
45,6 t / 15200 heads 45,6 t / 15200 heads - meat products
• The veterinary-sanitary
1,44 t 1,19 t 15 t laboratory verification and
validation certificate
3,84 t 0,79 t 7,9 t
• Operating permit for cattle
30,24 t 6,2 t 47,5 t slaughter
• Certificate of granting a GTIN in
no data no data 170 t the worldwide GS1 system
• Certificate on marks for goods
and services.
no data no data 110 t

no data no data 4200 t

Capacity of frozen meat
storage rooms

no data no data 200 t

Capacity of chilled meat
storage rooms

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 Trade marks (TMs)
Most products of Ternopil Meat
Processing Plant are sold under the
trade mark of the same name
“Ternopil Meat Processing Plant”.
The products refer to the middle
price segment.
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“Britvanka” - products of historical
brand, which are made according to
old Ukrainian recipes. Manual
processes, an individual approach to
each type of product are used
constantly. The products refer to the
elite price segment.
“Babusi Marusi”. A warm home “Svizhachok”. A product of the
product that is familiar and lower price segment which tastes
affordable for everyone. These are light and fresh to the customers.
delicious grandmother recipes. The
products refer to the middle plus
price segment
 Retail distribution network «Meat Studio»

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 Raw products base (Western Ukraine): pork

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 Raw products base (Western Ukraine): beef

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 Raw products base (Western Ukraine): poultry

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 The largest meat processing enterprises in Ukraine

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 Meat processing plant distribution network

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 Office and amenity building: exterior, hall

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 Office and amenity building: offices, canteen, infrastructure

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 Office and amenity building: laboratory

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 Administration and amenity building: sanitary check center and locker rooms

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 Water supply, drainage, treatment plants
At the meat processing plant, the production
process engages water extracted from 12
artesian boreholes from a depth of more than
50 m, which makes it impossible to come into
contact with the top layers of soils that
contain traces of human anthropogenic
influence.

As a result of the production cycle, industrial

effluents occur, which are pumped over with
the help of modern European-type treatment
equipment (EMI manufacturer).

Mechanical cleaning-out of coarse and fine

fractions is carried out.

After that, the water is chemically purified. The

degree of purification is 65-70%. The final
stage of the treatment plant operation is
biological water treatment.

Artesian water-wells

№ Depth Output
1 48 16,94
2 48 16
3 48 16
4 48 18
5 48 16
6 48 20
7 51 12
8 51 12
9 51 12
10 51 9
11 51 10
12 51 9

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 Canning department

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 Meat boning department

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 Semi-finished products department

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 Meat and sausage products department

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 Finished product packing department

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 Poultry slaughterhouse

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 Slaughterhouse, cooling and storage rooms: pork

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 Finished product warehouse

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 “Meat Studio” retail chain

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 Valuation
I. Buildings and structures (including reconstruction) II. Land plot with communications

Buildings and structures Area, sq.m. Cost, USD Land plot (long-term lease) 1 heactare

1. Office building 6 257 4 778 620 Long-term lease +

2. Industrial premises 25 473 8 873 250 Designated land purpose: industrial
3. Repair shop 2 790 836 700 purpose +
4. Warehouse № 1 69 10 305 Location (up to 10 km from the city of
5. Warehouse № 2 236 35 385 200,000+ inhabitants) +
6. Water pumping station 534 267 000 Communications
7. Autoweight 285 142 400 Electricity 1 МВт на 1 га
8. Unsheltered warehouse - 0 Railway access +
9. Warehouses 94 4 700 Gas access +
10. Old slaughterhouse building 10 303 3 090 900 Water supply (water well) +
11. Warehouse № 2 420 126 000 Water drainage system +
12. Treatment plants 543 217 200 Average market value per 1 ha, USD 200 000
13. Pre-slaughter handling 7 829 2 348 730 Total cost (15 hectares), USD 3 000 000
14. Poultry slaughterhouse 1 243 559 530
15. Autoweigt, sanitary inspection 285 199 500
16. Sewerage pump station 76 22 800 III. Equipment and Transport
17. Boiler rooms 1 502 300 460
18. Substation 203 60 600 Cost, USD
19. Hostel 375 122 800 Technical equipment 3 502 615
20. “Meat Studio” shop 642 513 600 Transport 1 000 000
21. Check point №4 5 2 000 Total 4 502 615
22. Water tank 864 172 800
23. Water tower 9 50 000
IV. Retail Chain
24. Car parking - -
25. Warehouse № 3 266 26 600
26. Auxiliary premises, including compressor room 3 032 909 600 Area, sq.m. Cost, USD
27. Sewage facility 9 854 985 440 Retail Shops, including: 3 916,5 1 617 597
28. 12 artesian boreholes - 360 000 Private ownership (2 shops) 601,5 457 200
TOTAL 73 190 25 016 920 In lease (54 shops) 3 315 1 160 397

Total Assets Value: 34 137 132 USD

for a 100% share of the Ternopil Meat Processing Plant
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 CONTACTS

Alexey Oleynikov
Managing partner Head Office
Tel: +380 67 713 65 71
E-mail: ao@inevnture.ua
Adress: 24 Starovokzalnaya St., Kiev, 03150, Ukraine
Tel/fax: +38 044 223 39 71
Tel m.: +38 097 772 72 92
E-mail: info@inventure.ua
Web: inventure.ua
Yuriy Bochkur-Krasnyansky
Media: inventure.com.ua
Partner
Tel: +380 67 408 68 87
E-mail: info@inventure.ua

Roman Kantarovsky
Partner
Tel: +380 66 322 61 44
E-mail: rk@inventure.ua

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