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Investments in Social Projects and Tax Deductions of Continental Farmers Group in 2020 About the Company

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Investments in Social Projects and Tax Deductions of Continental Farmers Group in 2020 About the Company INVESTMENTS IN SOCIAL PROJECTS AND TAX DEDUCTIONS OF CONTINENTAL FARMERS GROUP IN 2020 ABOUT THE COMPANY Continental Farmers Group is an agricultural company with foreign investments that practices advanced agricultural production methods, uses modern equipment and abides by the principles of social responsibility and a transparent conduct of business. The land bank of the agricultural holding company An approved social program than envisions support is 195 thousand hectares. The Company operates to settlements in the regions of the agricultural in five Western Ukrainian regions: Ternopil, company’s presence helps implement projects Khmelnytskyi, Chernivtsi, Ivano-Frankivsk and Lviv in different fields: medicine, infrastructure, education, regions. The Continental Farmers Group’s assets beautification, culture, sports, spirituality, environment include four large elevator facilities and three drying protection etc. The Continental Farmers Group’s social and grain facilities with a total capacity of 420 tons, budget is formulated so that UAH 130 per each hectare modern potato storage facilities, the two grain plants of land tilled by the Company is paid additionally located in the Ternopil and Lviv regions as well as its to lease payments. The Continental Farmers Group’s own starch factory. social policy aims to develop regions and establish a reliable partnership with communities. Now the Continental Farmers Group is an amalgamated agricultural holding company that The Continental Farmers Group actively supports has been operating as a single business since 2019 cooperative movement and encourages that was established through a merger of two the establishment of agricultural associations. powerful agricultural companies that had been leaders The Company has already helped 32 cooperatives in the domestic agricultural sector, the MRIYA that pursue berry-growing, beekeeping, dairy Agroholding (since 1992) and CFG (Continental farming and other activities as their primary business. Farmers Group) (since 2006). Cooperation support is an important mission of the Continental Farmers Group that helps develop The Continental Farmers Group is one of the largest Ukrainian villages, create additional jobs and sources taxpayers in the agricultural sector of the Western of income for the residents. Ukraine. Conscientious payment of taxes provides revenue to local and the state budget and helps The unchangeable values of the Continental sustain the economic development of regions. Farmers Group are its professional production The Company has created approximately two activities, the maintenance of hight business thousand jobs while paying official and competitive standards, transparency, and honest partnership with salaries to its employees. communities and responsible use of natural resources. 2 MESSAGE FROM THE CEO Dear colleagues and partners! The Continental Farmers Group strives to be not just a successful and effective business but also a reliable partner to local communities, in whose territory it operates. This is why corporate responsibility, close cooperation with the communities, transparency and honest relationships are a priority to our team. The document that you are reading now is a detailed and transparent report about the taxes paid in 2020 as well as the Continental Farmers Group’s implemented social projects. It is a pleasure to me to note that, in 2020, the amount of tax deductions to all-level budgets increased by UAH 253.2 million, as compared to 2019, and is UAH 923.3 million. The amount of investment that the Company allocated the last year for the social support to communities was UAH 30.8 million. Therefore, the Continental Farmers Group consistently upholds its social responsibility, openness and transparency with regard to its most important partners, the shareholders and the State. The last year, the whole world faced the challenge of COVID-19. We learned to live and work in a new manner and, at the same time, provided intense help to communities and medical personnel. The pandemic Despite the global COVID-19 challenges, Continental is our common problem that we can counteract only Farmers Group has kept in mind the mundane needs together. Therefore, from the start of the spread and problems of communities. The social budget funds of the disease in Ukraine, the Company has were allocated for the implementation of projects been supporting hospitals and rural health posts in the fields of beautification, spirituality, infrastructure, in the territories of its presence providing medical culture and for supporting and developing personnel with medical equipment and implements. The the cooperative movement. The plans for the next Continental Farmers Group bought means of personal year include the continued improvement protection and sanitation not only for the medical of our production facilities, the observance of the high personnel but also for postal workers and social workers business standards and the provision of a reliable whose work envisions numerous contacts with people. support to our shareholders. Sincerely, Georg v. Nolcken, Company CEO 3 TAX DEDUCTIONS, UAH 2020 574,355,128 108,943 Ternopil region Other 96,323,992 129,570,279 Lviv region Khmelnytskyi region 73,319,629 Chernivtsi region 49,649,644 Ivano-Frankivsk region Total 923,327,615 150,980,002 87,223,671 39,236,019 Local budgets District budgets Region budget 524,083,862 121,798,431 The State Budget The Pension Fund 4 INVESTMENTS IN SOCIAL PROJECTS, UAH 2020 1,147,851 Targeted assistance 1,710,894 171,507 Sports Armed Forces 667,321 1,735,336 Community Needs Beautification 2,518,167 2,095,034 Education Spirituality 10,165,118 6,388,646 Medicine Infrastructure 698,124 3,564,053 Total Culture Cooperatives 30,862,051 1,888,130 8,098,923 13,259,569 Ivano-Frankivsk region Lviv region Ternopil region 4,911,658 2,703,771 Khmelnytskyi region Chernivtsi region 5 CENTRALIZED PROJECTS Smart garden The project has been launched to encourage the young generation to independently grow agricultural crops. The last year, it was implemented in three villages of the Ternopil region. Eight teenagers joined the initiative and demonstrated very good results, having grown the first harvest in their lives. Cooperative volunteering The Company employees improve infrastructure facilities owned by the communities and help beautify them. The following was organized at the six settlements. Wheeled clinic Using a mobile clinic, a professional medical examination was performed of over 500 patients in the Ternopil and Khmelnytskyi regions. Linden Marathon As part of the annual activity to preserve natural diversity and support beekeeping, 4,000 linden trees were planted at 10 locations in the Ternopil, Khmelnytsk and Ivano-Frankivsk regions. Corporate Social Responsibility Map To ensure openness of the Continental Farmers Group’s corporate social responsibility projects, the special tool was implemented. The map provides an opportunity to view online the social investments and tax deductions of the Company in an region, district or village council as well as obtain contact information of local communication managers. Plast Support continues for the Plast National Scout Organization of Ukraine. In particular, support has been provided to develop the chapters at Starokonstyantyniv, Chortkiv, Shumsk, Pidvolochysk, Khorostkiv, Mykolayiv, and Halych An Easter Rainbow project has been implemented in an online format. 6 COVID-19 COUNTERACTION Total allocated were: UAH 8,598,595 Protective outerwear suits Gloves Masks 1,717 pcs. 159,050 pairs 122,519 pcs. Face protector plates Oxygen concentrators Lung ventilation equipment 778 pcs. 38 pcs. 2 pcs. Electronic thermometers Tonometers Phonendoscope 276 pcs. 65 pcs. 65 pcs. Respirators Contactless thermometers Sanitizer 962 liters 14,658 pcs. 122 pcs. of sanitation equipment for rooms and 6,727 liters of hand 7 TERNOPIL REGION 8 TERNOPIL REGION The most important social projects implemented in the territory of the Ternopil region in 2020 were the following: • Purchase of oxygen concentrators and pyrometers for medical institutions of Berezhany, Borshchiv, Husiatyn, Zbarazh, Zboriv, Kozova, Monastyryska, Pidvolochysk, Pidhaitsi, Ternopil, Chortkiv and Shumsk districts as well as sets of personal protection gear and means of sanitation for medical personnel and social workers in the region. Financial support was provided to create additional beds for COVID-19 patients at the pulmonary department of the Ternopil University Hospital (UAH 4.1 million). • Renovations have been performed of the recreation center in the village of Panasivka of the Pidvolochysk district (UAH 183.5 thousand) and of the village hall in the village of Mala Luka of the Husiatyn district (UAH 188.3 thousand). • Road pavement was improved in the villages of Viliya (Shumsk district), Chernykhiv (Zboriv district), Vasylkivtsi (Husiatyn district), and Vynyatyntsi (Zalishchyky district). • The church was renovated in the village of Kalynivka of the Zboriv district, the village of Zastavtsi of the Monastyryska district, the village of Vaha of the Pidhaitsi district, installing the church roof in the village of Novosilky of the Zalishchyky district, strengthening the wall near the church at the village of Vyniatkyntsi. • Installing a gaming facility for the pupils of the training and education institution in the village of Bryshky of the Kozova district (UAH 26.8 thousand). • Renovation of the children’s department at the district hospital of the town of Shumsk (UAH 98
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