NIBULON has become a successful and well-known company despite all obstacles which Ukraine, like other emerging countries, has faced in 23 years of its independence. Despite a difficult and unstable economic situation in the country, the company has invested more than USD 1.6 billion in order to solve principle tasks to strengthen the Ukrainian economy.

We are proud of NIBULON being a shining example of a successful business which is built upon principles of social justice and ecological reasonability. The company’s principles are to use resources in the optimal way, use natural and energy saving technologies, create qualitative and environmentally friendly products and to minimize waste.

The goals on which NIBULON’s stable development is based are to develop society and business harmoniously and to preserve cultural heritage and natural resources of our earth for future generations. Today NIBULON is reviving Ukrainian navigation and shipbuilding in order to reduce expenses for transportation and to improve the environmental conditions. NIBULON’s activities promote the improvement of Ukraine’s food potential and make Ukraine an exporter of high-quality agricultural commodities. This is confirmed by the Ukrainian leadership position in the world grain market.

We are deeply sure that our country has a priceless potential – rich natural resources and fertile land. Ukrainians are hard-working and talented people. This is the very wealth to be protected and preserved for the sake of a successful future in Ukraine.

Oleksiy Vadaturskyy, Founder, Majority Owner, General Director of NIBULON, Hero of Ukraine, Laureate of the Ukrainian State Prize for Architecture

3 NIBULON

4 5 STRATEGIC GOALS

NIBULON is a leading Ukrainian investor, agricultural producer and exporter. In 23 years of activity, NIBULON has invested more than USD 1.6 billion in Ukraine’s economy. Today NIBULON has a vertically integrated business structure that includes 43 production branches in twelve regions of Ukraine. We set ourselves a super-task – not just to create profitable business but to change the Ukrainian agriculture considerably, to make our country a serious player in the world food market. Today NIBULON is involved not only in agriculture but also in shipbuilding and navigation; the company is a pioneer in implementing new approaches to agrarian logistics in Ukraine. The company plans to increase cultivation and exports of agricultural commodities, improve its own logistics infrastructure and to develop livestock sector, in particular its own trade mark «Bystryts’ki Kovbasy».

1. Creating Unique Logistics System

Since 2009, NIBULON has been successfully implementing an investment program to revive navigation along the Dnipro and the Southern Bug, re- opening them as transport waterways.

As part of the investment program, the company has constructed modern and high-tech transshipment terminals and elevator complexes with the total elevator capacity of 1.7 million tons.

NIBULON confirms is status as a pioneer in the implementation of new approaches to agrarian logistics in Ukraine, controlling the agricultural commodity supply from the producer to the final consumer around the world. 2. Reviving Shipbuilding and Navigation

As part of the investment program, the company has constructed and purchased cargo fleet (28 non-self-propelled vessels, the so-called «elevator on water», 9 tugs, St. Mykolai unique self-propelled floating crane, plus a milling dredger), having become the first agrarian company in Ukraine that constructs vessels at its own NIBULON shipbuilding and repair yard.

This project means more than just the ordinary performance of business tasks for NIBULON. It has revived the water transport capabilities of the Dnipro River, the most important navigation artery of the country, along which very little cargo was shipped until recently. The river’s potential is great both within Ukraine and for the whole of Europe. Today NIBULON is pushing back boundaries and developing river and sea agrarian logistics.

Ensuring World Food Security Highly-skilled specialists and the use of advanced technologies enabled the company not just to NIBULON supplies agricultural commodities to 64 countries around the world (from Mexico to Japan). The company’s participate actively in the international tenders for activities have contributed to the increase of the Ukrainian agricultural commodity supply held by governmental food potential in the world. This is testified by leading and non-governmental organizations but to become positions of Ukraine in grain exports. NIBULON closed the 2013/14 marketing year with sales of more than 4.5 million the only Ukrainian company that supplies food tons. This ensured that NIBULON maintained its leadership of wheat to starving people as part of the UN World grain and oilseeds exports in Ukraine. Food Program.

6 7 Export Map

ARCTIC OCEAN ARCTIC OCEAN

Greenland

USA ICELAND

SWEDEN FINLAND RUSSIA NORWAY

ESTONIA CANADA LATVIA Moscow DENMARK LITHUANIA NETHERLANDS IRELAND GREAT POLAND BELARUS BRITAIN GERMANY BELGIUM Kyiv Astana CZECH UKRAINE REPUBLIC SLOVAKIA KAZAKHSTAN FRANCE AUSTRIA MOLDOVA SWITZERLAND HUNGARY MONGOLIA Ottawa SLOVENIA RUMANIA CROATIA

BOSNIA AND HERZEGOVINA ITALY SERBIA PACIFIC OCEAN BULGARIA GEORGIA MACEDONIA UZBEKISTAN UNITED STATES OF KIRGIZSTAN ARMENIA AZERBAIJAN NORTH KOREA PACIFIC OCEAN AMERICA Washington PORTUGAL SPAIN TURKEY TURKMENISTAN ATLANTIC OCEAN GREECE ТАДЖИКИСТАН JAPAN SYRIA CHINA SOUTH KOREA TUNISIA LEBANON IRAN IRAQ AFGHANISTAN MOROCCO ISRAEL JORDAN KUWAIT ALGERIA PAKISTAN NEPAL LIBYA EGYPT Delhi MEXICO SAUDI UAE BANGLADESH CUBA ARABIA INDIA OMAN VIETNAM Mexico City MYANMAR MAURITANIA LAOS

NIGER GUATEMALA MALI ERITREA THAILAND HONDURAS CHAD SUDAN YEMEN SENEGAL

NICARAGUA BURKINA CAMBODIA FASO DJIBOUTI PHILIPPINES GUINEA BENIN NIGERIA COSTA RICA SOMALIA Sierra TOGO PANAMA Leone GHANA VENEZUELA COTE D'IVORE CENTRAL AFRICAN REPUBLIC ETHIOPIA SRI LANKA GUYANA LIBERIA SURINAM COLOMBIA GUIANA CAMEROON UGANDA MALAYSIA CONGO KENYA GABON ECUADOR RUANDA INDONESIA DEMOCRATIC PAPUA REPUBLIC OF THE CONGO PACIFIC OCEAN TANZANIA NEW GUINEA

PERU BRAZIL INDIAN OCEAN ATLANTIC OCEAN ANGOLA MOZAMBIQUE ZAMBIA Brasilia

BOLIVIA MADAGASCAR

ZIMBABWE

PACIFIC OCEAN NAMIBIA BOTSWANA PARAGUAY AUSTRALIA

SOUTH AFRICA URUGUAY Canberra CHILE ARGENTINA NEW ZEALAND

Tasmania

COUNTRIES TO WHICH NIBULON EXPORTS GRAIN CROPS COUNTRIES TO WHICH NIBULON EXPORTED GRAIN CROPS IN 2013-2014

8 9 5. Producing Natural and Environmentally Friendly Livestock Products

The livestock sector is one of the most important sectors in the agriculture, existing from times immemorial. This type of activity is very important for NIBULON taking into consideration its full-fledged multiple development. NIBULON’s animal husbandry is concentrated in 8 branches in Vinnytsya, Zhytomyr, Mykolayiv and Khmelnytskyi regions.

The company’s specialists are constantly searching for ways to develop and modernize the sector, in particular to improve animal nutrition (fodder that meets nutrition standards for certain period). The balanced ration ensures high productivity of animals at minimal fodder expenses.

NIBULON’s sausage and meat products with fine classical taste are produced under «Bystryts’ki Kovbasy» In addition to production effect, the livestock sector has a trade mark. When producing sausage products, significant social effect. In order to develop the sector, the 4. Improving Quality Standards to Produce Agricultural Commodities NIBULON uses meat of its own production which company created quality is controlled by the company at all stages: Annually, NIBULON’s highly-skilled employees ensure that high-quality yields of grain and oil crops (350-400 thousand from the growth of grain crops and the fattening of tons) are harvested on 81.5 thousand ha of leased agricultural land, by modernizing production process, using advanced animals to the production process in the modern meat- new workplaces agrarian technologies and forming sown areas according to the main trends in the world grain market. At present processing workshop. Natural and environmentally 450 NIBULON’s activities influence the structure of sown areas in Ukraine in whole and open world markets to sell Ukrainian friendly products are produced according to the in the regions. products. The company’s specialists prevent the depletion or poor quality of soil when grain production is increased. approved traditional recipes in compliance with DSTU 4435:2005, DSTU 4436:2005 and DSTU 4591:2006 at NIBULON’s production facilities.

«Reasoning and careful planning at each stage of your business activities are incredible. Your agribusiness impresses with its high world standards; it is a precise and reasoning system that ensures efficiency at every stage. Today the agriculture is a driver of the Ukrainian economy. Ukraine is rich with black earth, and farmers are skillful. Ukraine has a huge potential to develop the sector, by creating an attractive investment climate and supporting agrarian companies. Thus, the role of your country should be increased around the world as well as in the world markets. In addition, NIBULON has been playing a great role in ensuring world food security for a long time». The Counselor for Economic Issues of the U.S. Embassy to Ukraine David Meale (10.06.2013)

10 11 Map of NIBULON’s Branches

12 13 COMPANY STRUCTURE AWARDS

FOR THE FIRST TIME IN HISTORY, THE UKRAINIAN REPRESENTATIVE - NIBULON’S GENERAL DIRECTOR, HERO OF UKRAINE OLEKSIY VADATURSKYY BECAME A NOMINEE FOR THE PRESTIGIOUS WORLD FOOD PRIZE. IT IS AN ANALOGUE OF THE NOBEL PRIZE IN THE AGRARIAN SECTOR TO BE AWARDED FOR PROMINENT ACHIEVEMENTS IN THE AGRICULTURE DEVELOPMENT NOT ONLY IN A SEPARATE COUNTRY BUT ALSO WORLDWIDE AS A WHOLE. GENERAL DIRECTOR

DEPUTIES GENERAL DIRECTOR, CHIEF ACCOUNTANT, TECHNICAL DIRECTOR, DIRECTOR OF THE TRANSSHIPMENT TERMINAL, DIRECTOR OF THE SHIPPING COMPANY, DIRECTOR OF NIBULON SHIPBUILDING AND REPAIR YARD According to the rating of NIBULON won the All-Ukrainian According to the rating «GVardiya transparency and consistency in rating «Prompt taxpayers in of managers -2012», Oleksiy corporate social responsibility -2013 Ukraine-2012» among large Vadaturskyy was acknowledged held by the All-Ukrainian rating agricultural companies as the most successful manager in magazine GVardiya, NIBULON is HEADS OF DEPARTMENTS IN ranked in first place among all Ukraine NIBULON'S CENTRAL OFFICE Ukrainian agrarian companies

DIRECTORS OF SEPARATE STRUCTURAL SUBDIVISIONS –BRANCHES

NIBULON is a laureate under the categories NIBULON won the annual city Kyiv Regional State Administration «Person of the year on water transport», program «Citizen of the year – acknowledged Oleksiy Vadaturskyy «New terminal», «Absolute growth», 2012» under the category «Charity» as the sponsor of the year in the «Golden berth», «Fleet renovation» (Deputy General Director of region Structure of NIBULON’s leading bodies by gender, persons according to the 6th and 7th National Personnel Larysa Buryk received the Maritime Rating of Ukraine award) Levels Men Women

Deputies General Director, chief accountant, technical director, director of the transshipment terminal, director of the shipping company, director of NIBULON 15 3 shipbuilding and repair yard

Heads of departments in NIBULON’s central office 28 13

NIBULON received the Certificate Mykolayiv Regional Job Center NIBULON received the Honorary Directors of separate structural subdivisions-branches 37 1 of Honor from the International and Petro Mohyla Black Sea State Diploma for a significant Maritime Fumigation Organization University acknowledged NIBULON contribution to the development for the best arrangement of the as the best employer in the region of social responsibility and active marine fumigation of grain cargoes exported from Ukraine in the participation in the forum «Best Structure of NIBULON’s leading bodies by age, persons 2012/13 marketing year social projects of Ukraine» Levels Under 35 Above 35

Deputies General Director, chief accountant, technical director, director of the transshipment terminal, director of the shipping company, director of NIBULON 3 18 shipbuilding and repair yard

Heads of departments in NIBULON’s central office 18 23 NIBULON’s success in the NIBULON won 169th place in the NIBULON was awarded the Honorary agricultural production, logistics rating «500 largest companies Diploma of the Committee on and exports was acknowledged in Central and Eastern Europe» Entrepreneurship, Regulatory Directors of separate structural subdivisions-branches 15 23 by the expert council according (Deloitte international auditing and and Antimonopoly Policy of the to the rating of domestic agrarian consulting company) Verkhovna Rada of Ukraine for a companies «Agrarian Elite of personal contribution to the Ukrainian Ukraine» (The Ukrainian Farmer economy (Leonid Mykhaylov, a head of magazine) under the category department of metrology and automated «Export growth» systems of weight measurement, 14 received the award) 15 COOPERATION WITH STAKEHOLDERS NIBULON’s Strength

Openness, transparency: an agricultural producer or any other person concerned has an opportunity to become familiar with the current prices for agricultural commodities or calculate them with the help of a special program «discount calculator» provided on NIBULON’s website. An agricultural producer is not only a product supplier but also a full partner of the foreign economic activity;

professionalism, progressiveness: NIBULON’s laboratories are equipped with modern technological and laboratory equipment supplied by the leading manufacturers and are certified according to the requirements of both national and international standards. The laboratory specialists regularly undergo training both in Ukraine and abroad;

efficiency, high productivity and quality: the company’s specialists implemented new technical decisions to improve the drying of agricultural commodities, namely the usage of energy saving technologies. The innovations enabled NIBULON not only to reduce natural gas consumption when processing and storing grain crops but also to improve product quality and conserve nature.

NIBULON is modernizing itself to become better

In September 2013, NIBULON has updated its corporate website. We want every visitor to receive maximum information, to follow NIBULON’s news; to get to know investment and social projects, to familiarize themselves with agrarian issues, in particular the cultivation and exports of agricultural commodities, the development of navigation and shipbuilding sectors, etc. Every website visitor can be in touch with the domestic and world grain markets.

NIBULON’s stakeholders are partners and investors, clients and suppliers, employees and community. The company cooperates with them by holding meetings, round tables, conferences, introductory excursions at the terminal, etc. as well as by means of NIBULON’s corporate website, regional and all-Ukrainian printed press (newspapers, magazines, Cooperation with NIBULON’s Employees Internet sources), regional and all-Ukrainian TV- channels, depending on the significance of an event and according to the Ukrainian legislation. In 2013-2014, the specialists of NIBULON’s information and organization department started an image project «I work at NIBULON’s website contains the sections, such as «Feedback with stakeholders» and «Information for stakeholders» in NIBULON» taking into consideration that social component of NIBULON’s stable development is person-oriented. NIBULON order to satisfy the requirements and interests of the stakeholders. ensures harmonious development for employees and provides opportunities to participate in the processes of the company’s activities. NIBULON’s employees participated in the project. The information was published on NIBULON’s website as well Membership in the associations, national and international In 2012-2013, the company created separate sections as in the regional and all-Ukrainian printed press. The project had both internal effect, such as creation of single corporate public organizations: on its corporate website, covering different aspects culture, work motivation, well-coordinated work, equality of opportunities for each employee, and external one, such as high of environmental and social components of stable - European Business Association development, namely «Corporate social responsibility» professional and cultural level of the employees to influence the company’s image positively. - American Chamber of Commerce and «Investment activity». - American-Ukrainian Business Council - Ukrainian Grain Association NIBULON provides people with information as to its Efficient Record Keeping - Ukrainian Agrarian Confederation activities in order to avoid information vacuum and information crisis. In case of false information, we - Association of Taxpayers of Ukraine In 2013, the company started to implement a new Electronic Document Management System. This innovation system covers quickly respond to it, by publishing a well-reasoned - Federation of Employers of Ukraine denial on NIBULON’s corporate website, in the regional the company’s operation as a whole. It enables NIBULON to increase labour efficiency, reduce paper workflow and to improve - Ukrainian Union of Industrialists and Entrepreneurs and all-Ukrainian printed press as well as on Internet document storage as well as control over documentation execution. - GAFTA under the category «Trader» sources.

16 17 RESPONSIBILITY FOR QUALITY

Annually, NIBULON is visited by official foreign delegations, representatives of the leading companies, pupils, students and teachers from both Ukrainian and foreign educational institutions In order to ensure product quality, NIBULON equips its laboratories with the world’s best equipment. NIBULON is proud of its production and technological laboratory at the transshipment terminal in Mykolayiv city. It is one of the most up-to-date three-storied laboratory and administrative building in Ukraine, being equipped (according to the highest world standards) with laboratory and research equipment to measure quality, to perform scientific research with grain, NIBULON’s own processed products and other food products. This laboratory is unique and not only in Ukraine.

NIBULON’s laboratory was: The Counselor for Economic Issues of the U.S. Embassy to Ukraine The Ambassador Extraordinary and Plenipotentiary of the David Meale and the Diplomat of the Economic Department Republic of Korea to Ukraine Kim Eun Joong and Head of Daewoo • certified to carry out measurements in compliance with the certification sector of SE «Mykolayiv Regional Center of Christopher Greller (June 10, 2013) International Corp. Representative Office in Ukraine Choi Ha Young. Standardization, Metrology and Certification»; (June 20, 2013) • accredited by the Ukrainian National Accreditation Agency to carry out physical, chemical, molecular and genetic tests of grain, leguminous plants and oilseeds; • acknowledged by the Grain and Feed Trade Association (GAFTA) for the right to perform grain measurements and to determine mycotoxins content.

NIBULON is certified according to RBSA international requirements for the right to sell products with calculated and minimal emissions of greenhouse gasses. NIBULON successfully underwent certification for compliance with ISCCEU requirements, as acknowledged by the European Parliament and the members of the European Society. According to SGS inspection company and other international certified surveyor organizations, NIBULON’s production and technological, chemical-technological laboratories are of the highest level, being leaders both in Ukraine and abroad. The transshipment terminal successfully underwent certification for compliance with the requirements of the standard ISO 22000:2005 «Food safety management systems. Requirements for any organization in the food chain». The laboratory successfully participates in the international inter-laboratory FAPAS and GEMMA tests as well as in rounds The representative of the United Arab Emirates Faris Mohammed The official delegation of Karlovac Country (županija) of the Al Mazrouei and his assistants Ali Mohammed Al Mazrouei and Republic of Croatia (October 23, 2013) of inter-laboratory comparison of measurement results according to the program «Physical and chemical indices of grain Shaban Tofik Marwan (August 12, 2013) quality» coordinated by the SE «Ukrmetrteststandart».

Graduating from the university, we did not even dream of working for such a large company with its unique laboratory. Prestigious job is usually offered to experienced people. My colleagues and I got a job at NIBULON after graduation. I appreciate my team; a lot of experienced highly-skilled employees and young active people work here. This allows us to improve ourselves constantly.

Chemical research engineer of the production and technological laboratory at the transshipment terminal Teachers and students from Kherson State University Representatives from Agritel International, Agro KMR and Dijon Ganna Nazarova (June 18, 2014) Cereales (France) (May 31, 2013)

18 19 ENVIRONMENTAL ASPECTS

20 21 From 2009 to 2014, NIBULON spent Today NIBULON is a successful example of an environmentally conscious business in Ukraine. The Water environmental considerations of the construction of more than UAH 125 million NIBULON’s river terminals and elevator complexes, 1. NIBULON’s production branches use water mostly from wells in addition to creating advantages in terms of to protect the environment and to support the ecological (autonomous water consumption). The company has a total of logistics and production, impact positively on the budgets of all levels of government. 45 wells. Taking into account that underground water is a mineral local ecology. wealth of national value, since 2010 the company has been In its multi-aspect activities, NIBULON constantly keeps one of its main principles of successful business, the preservation studying subsoil. NIBULON obtained 19 permits to use subsoil for of the environment and an active approach to environment protection problems. The company implements its own geological study, including research and industrial development environmental standards, which aim to promote environmentally friendly and responsible business. of underground water. From 2010 to 2014, NIBULON spent UAH 2.801 million for these purposes. The company is taking measures to protect underground water from pollution, in particular The site selection to construct elevators is often accompanied by an environmental monitoring (to discover red-listed plants and the arrangement of a strict sanitary regime area with railing, animals) carried out by scientists from Kherson State University, Poltava V.G. Korolenko State Pedagogical University, Poltava landscaping and without any activities within this area. Regional Organization of the Ukrainian Nature Conservation Community. From 2009 to 2014, the company allocated UAH 72,280 for monitoring. 2. The company pays particular attention to the sewage water treatment technology, as water is discharged in reservoirs by NIBULON’s chemical-technological laboratory filtrating through the soil at the branches. Sewage water does not monitors the environment condition where Energy contain any chemical admixtures. In order to treat domestic water, NIBULON’s branches operate. The laboratory is the company uses a method of complete biological treatment permitted to monitor atmospheric air by 31 indices, aquatic environment by 40 indices, soil and bottom NIBULON actively searches for innovative energy-saving technologies to dry grain crops. The company widely uses provided by Biotal treatment facilities. The rainwater sewage sediment by 17 indices. MATHEWS (the USA) and Cimbria Unigrain (Denmark) grain dryers at its elevator complexes and transshipment system directs rain wastewater to a precipitation tank and then terminals. The company installed 42 grain dryers in total (including 11 ones of UAH 4,290,756 as part of the energy- to an Oleopator separator (Czech Republic) to remove possible oil saving measure), equipped with controlled gas burners produced by Promgazaparat Engineering Centre Ltd. (Ukraine). products. This ensured maximum efficiency of gas burning at all levels of working temperature and allowed NIBULON to reduce In order to implement innovative technologies that protects water environment from pollution, the company tested a gas consumption by 10 % per one ton of grain. Thus, the emissions of combustion products were reduced, namely sewage water treatment technology (Potential-4 Company), using BRAVO treatment facilities. The biological treatment carbon monoxide emission was reduced 7-8 times as much and nitric oxide – twice. method is equipped with an ultrafiltration membrane bioreactor by MITSUBISHI RAYON. This method is widely used in Europe. The company installed BRAVO treatment facilities at 5 branches constructed in 2010-2012. The company’s engineers with the participation of Ukrainian scientists and equipment producers continue to research and test grain dryers in order to improve the efficiency and environmental safety of drying. NIBULON improves not only the technology of domestic wastewater treatment but the technology of surface water (rainwater, melt water) treatment, by using FLOKFIL treatment facilities (Potential-4 Company). Biological methods are used to treat rainwater.

We are constantly improving ourselves and The return water treatment is reagentless. NIBULON uses Econadin environmentally friendly and non-toxic absorbent in implementing innovations, as our main task is to order to oxidize oil products containing in rainwater, melt water and wash water. The sediment from treatment facilities reduce energy resources consumption on condition is environmentally friendly and can be used to fertilize plants. that the required volume of production and quality is maintained. Thus, for example, these days we have For the efficient operation of treatment facilities, the company finances after-sales service performed by the author of been working in order to implement LED illumination Potential-4 technology on a contractual basis. From 2010 to 2014, the company spent UAH 155.4 thousand for after-sales at NIBULON’s facilities. This variant is money saving, service. Domestic and rain sewage water can be used for watering lawns after treatment. safety and reasonable. According to our calculations, it allows us to reduce electric energy consumption 6-8 3. NIBULON was one of the first companies to support the All-Ukrainian event «STOP PHOSPHATE», and since 2012 it has times as much. been using phosphate-free detergents. Power engineer Andriy Nertyk 4. Taking into consideration that the company constructs its transshipment terminals along the rivers, it strictly complies with the water protection regime established for coastal protection belts.

22 23 5. When constructing its fleet, NIBULON pays particular attention to an environmental component. NBL non-self- Transport propelled vessels have hatch-covers for complete watertightness in order to keep cargo wholeness and to prevent cargo fall into the water in any conditions even emergency ones. NIBULON type tugs and St. Mykolai floating crane were In order to transport grain crops, NIBULON purchased 56 heavy tonnage trucks, namely MAN (Germany), DAF (the constructed according to the requirements of the International Convention for the Prevention of Pollution from Ships (Marpol 73/78) on the basis of which the Shipping Register of Ukraine issued the International Certifications for the Netherlands) and Scania (Sweden). Their engines emit toxic agents that meet Euro-3 standards. NIBULON’s chemical- Prevention of Pollution by Oil, Wastewater, Garbage. St. Mykolai technical capabilities allow it to minimize the impact technological laboratory, according to its certification sector, regularly measures exhaust smoke emission for compliance of transshipment operations on the environment and water. Its boom reach enables the crane to lower the grab into a with the current legislative statements of Ukraine. In order to reduce the impact of traffic flows on the environment, hold and open it at a height of not more than 1 m above the ceiling or the cargo previously loaded. The grab jaws are grain carriers follow routes that are agreed in coordination with the relevant local authorities. coupled tightly, and canopies are placed on both sides in the area of grab operation, thereby preventing cargo spill into the water.

6. The dredging is always accompanied by an environmental monitoring. The monitoring measures the impact of activities on surface water quality and conditions of aquatic life (presence of heavy metals, organochlorine pesticides, radiological pollution). A number of institutions carry out monitoring on a contract basis, namely the Institute of Fishery of the National Academy of Agrarian Sciences of Ukraine (Ichthyological part), Mykolayiv Branch of Soils Protection Institute of Ukraine, O.M. Marzeev Institute of Hygiene and Medical Ecology of the Ministry of Health of Ukraine, AVIA Scientific and Production Association, NIBULON’s chemical-technological laboratory. From 2009 to 2014, the company allocated UAH 127,435 for monitoring. According to the monitoring results, the company carries out compensatory measures and makes decisions as to further handling of bottom soil.

Reproducing Living Resources

In addition to reviving the existing waterways (as part of NIBULON’s unique investment project started in 2009), the company is conducting measures to prevent the depletion of natural resources.

Fish stocking is one of such methods. Thus, in October and November 2014, NIBULON (as the performer who reproduces living resources) financed and the special commissions (representatives of territorial bodies of fishery conservation, environmental inspections, local administrations) supervised the next stage of fish stocking. Emissions and Waste As part of compensatory measures in the waterways of cargo berths at «Vitove» «Gradyz’k» and «Kamyanka- Dniprovs’ka» branches, the company stocked the Kakhovka and the Kremenchuk Reservoirs with more than 5 1. Closed technology to transport grain cargoes with double cover: a conveyer belt is protected by ducts; technological equipment is installed in closed structures – galleries and operating tower. The closed technology to unload cargo – the tons of fish seed (herbivorous fishes) of UAH 84,187.13. According to the project to dredge the designed bottom unloading points for road and railway transport are equipped with sectional gates to ensure that volley of dust emission of the operational water area of cargo berth at the transshipment terminal of «Pereyaslavs’ka» branch, NIBULON is localized. stocked the Kaniv Reservoir and the branch water area. The company released 4,770 units of silver carp (400 g on average) along the water approach to the terminal (almost 13 km). NIBULON spent UAH 25,803.25 for compensatory 2. The collection of grain dust emitted during technological processes connected with grain pouring: unloading of measures. road and railway transport, transportation by transporters and noria, cleaning and shipment on road, railway and river transport. The air polluted by dust moves through air pipeline systems and treated by the dust-trapping facilities before emitted into the atmosphere. The above-mentioned systems, called «aspiration» ones, are automatically interconnected At all stages of the implementation of its investment project (since 2009), the company compensated losses of UAH with technological equipment and turn on when technological process starts. 199 aspiration systems equipped with 1,391,528 caused to fishery, including UAH 800,528 was paid to the local budgets where NIBULON carries out its dust-trapping equipment maintain technological processes to pour grain. NIBULON’s environmental department and activities; UAH 591 thousand was spent for fish stocking in the Dnipro, the Kakhovka, the Kaniv, the Kremenchuk chemical-technological laboratory control the efficiency of dust-trapping equipment and sources of pollutant emissions. Reservoirs with above 33 tons of fish seed (silver carps and carps). 3. The dusty air located in the dust-trapping equipment of the highest world level is treated by: - Simatek and Cimbria Unigrain filters (Denmark); - Schmidt-Seeger filters (Germany). The given equipment is so efficient that it reduces dust concentration from 6,000 mg/m³ at the inlet to 20 mg/m³ at the outlet (the Ukrainian standard is 50 mg/m³). During 2014 NIBULON spent UAH 6.75 million for maintenance of aspiration systems.

24 25 SAFE UTILIZATION Green Lungs of Ukraine NIBULON joined an environmental initiative to collect and utilize used batteries. As part of the given program, a lot of companies, educational and state institutions within Ukraine open centers to take used storage batteries in order to transport The construction of roads, facilities, structures must be accompanied by planting of greenery in order to improve the and utilize them safely. The program aims to increase environmental awareness of people and to familiarize them with the EU environmental condition. environmental standards. Compensatory measures (in particular, greenery) at places where NIBULON constructs its elevators and terminals are NIBULON joined the environmental initiative, having placed special safe containers at its facilities in Mykolayiv city. During one of the ways to implement NIBULON’s environmental standard. From 2009 to 2014, the company initiated planting 2014 the company’s employees collected 30 kg of used batteries that were transferred to the SE «Argentum» (Lviv) for utilization. While conducting its agribusiness, NIBULON is constantly guided by modern European «green» standards and techniques, of more than 23 thousand units of green plantations of almost UAH 705.2 thousand, including above 22 thousand trees allocates money to protect the environment, implements energy saving technologies. The employees themselves create and (more than UAH 678 thousand) were planted instead of damaged ones caused by construction in Poltava, Zaporizhzhya, maintain NIBULON’s environmental culture. Thus, the participation in the program is a logical continuation of environmental Kherson and Mykolayiv regions. initiatives and an example of responsible business. For example, when NIBULON constructed its transshipment terminal in Kozatske town (Kherson region), the company planted greenery of more than UAH 16 thousand – 840 young plants: acacia, oak tree, birch, ramson, candle tree, juniper, 4. NIBULON reduced grain fall height (aspiration waste) by installing Cimbria Moduflex (Denmark) telescopic units on arborvitae, pine tree, mulberry tree, chestnut tree and others. NIBULON planted young trees in the memorial park as well shipment points. This allows to avoid dust formation when grain is shipped on road and railway transport. NIBULON as in the territory of kindergarten and school. In addition to the branch team, the employees of Kozatske village council, installed 80 units of such equipment at its elevator complexes. inhabitants and pupils joined a peculiar «community working day». 5. When choosing equipment for shipment of grain cargoes on river and sea transport, NIBULON aims to minimize the impact of shipments on the environment. In April 2012, the company planted 12,188 units of planting stock (UAH 100 thousand) in Shostakove village (Mykolayiv region) and looked after it during three years. The first year after planting, 3,276 units of planting stock took root; thus, in The company chose two types of gears according to these criteria: October 2013, the company additionally planted 8,912 units of two-year young plants of black walnut (more than UAH - Telestak shiploader (Great Britain) is equipped with a telescopic hose with dust protection skirt at the outlet. The structure 112 thousand in total). allows gain to run freely on the bottom of the hold or the pile previously loaded, thereby ensuring minimal grain drop height and the absence of dust emission from a hold. The company installed them at all river terminals: From 2012 to 2014, the company paid almost UAH 551 thousand to SE «Mykolayiv forestry» for looking after planting - NEUERO Industrietechnik Melle SL 700 grain delivery units with a dust suppression system installed in: stock. a) aspiration system to suck excessive dusty air caused by cargo poured into the grain delivery unit; b) dust suppression nozzles at the pipe outlet where the speed of grain flow reduces before entering the hold. Consequently, dust quantity pouring from the pipe together with air reduces.

6. The company implemented a European approach to collect industrial waste separately in order to transfer it to licensed organizations for utilization or reutilization. Waste storage locations meet the sanitary and environmental standards.

7. According to the production processes in 2014, there were created 25 types of waste (47,292 tons). Temporal waste is stored at places that meet their hazard class. During 2014 the company transferred 180 tons of waste for utilization; sold 1,215 tons of waste (UAH 1.920 million) as secondary raw materials, including 750 tons of scrap metal; used 42,846 tons of waste for own needs (including 42,834 tons of dung as organic fertilizers); placed 3,020 tons at disposal tips.

On April 22-25, 2013, NIBULON participated in the International Environmental Forum «Environment 2013».

26 27 NIBULON’S TEAM

28 29 ENSURING EQUAL OPPORTUNITIES NIBULON is a responsible employer. Nearly 4,500 employees work at the company.

In 2013-2014, NIBULON kept mastering new areas of activities. The company created new services and departments; thus, the number of employees increased. 30% The implementation of the investment program enabled is a level of increase in employees at the company NIBULON to create about 900 workplaces (at the end of (Mykolayiv city) for the last two years. 2014) in the Ukrainian regions.

Accounting number of employees in 2014, persons

Number of Total Region structural divisions employees

Vinnytsya region 2 244

Zhytomyr region 4 458

Zaporizhzhya region 1 82

Kyiv region 2 180

Lugansk region 6 250

A key concept in the company’s activities, announced by NIBULON’s General Director Oleksiy Vadaturskyy, is to Mykolayiv region 7 1,803 create new workplaces in Mykolayiv and regions of Ukraine proportionally to the expansion of activity areas, and on conditions that the company will keep high levels of wages. Poltava region 8 637

Summy region 1 25 Structure of employees by education, persons Structure of employees by gender, persons Kharkiv region 1 27

Higher education, 32% Kherson region 1 94 Men, 65% Undergraduate and basic higher education, 21% Khmelnytskyi region 3 328 Women, 35% Vocational –technical and Cherkasy region 4 327 secondary education, 43%

30 31 PAYMENTS AND BENEFITS

of newly created Everybody knows that NIBULON is one of a few workplaces employers, employing graduates from higher 95% educational institutions without working are taken by employees from among local population that is experience. Larysa Buryk, NIBULON’s deputy provided by the social partnership agreements signed between general director of personnel, says the youth the company and local authorities of a settlement where NIBULON constructs its facilities. is our hope and pride. She notes that we must support them and help in case of failures so that young specialists may achieve career growth.

NIBULON’s personnel management system aims to form personnel reserve to meet the demands for top and middle managers. The company has a program to select and train young specialists. After graduation, they undergo a multilevel training and are directed to NIBULON’s new branches as managers. The reserve is formed purposefully both for the existing job list and over the prospects in order to ensure flexibility and reliability of management. Taking into account market conditions, employees must be initiative, creative, and be able to find new solutions in unstable and difficult business activities.

Structure of leading positions, %

Position Local population Directed to work in the region

Central office According to the Collective Agreement signed between NIBULON’s owners and employees, all the employees (regardless Managers 95 5 of collective agreement terms, type of employment) are provided with the following payments and benefits:

Specialists 90 10 1. In addition to 24 calendar days of leave, NIBULON’s employees have 4 calendar days of additional leave because of work Workers 70 30 intensity and 7 calendar days of additional annual leave depending on labour type:

Branches • employees with irregular working days; • shift workers; Managers 20 80 • employees with flexible working hours; Specialists 50 50 • work under a rotation system.

Workers 95 5 2. Taking into account the achievements of employees and financial situation at the company, NIBULON establishes additional guarantees, compensations and benefits:

• one-time material assistance in case of marriage, child birth, funeral of employees or their close relatives, treatment of employees; On December 10, 2013, as part of the Employer Forum, NIBULON was acknowledged as one of the best employers in Mykolayiv • interest-free loans (provided to employees with a guarantee to return them). region. The teams of «Bashtans’ka», «Snigurivs’ka», RE «Lidiyivs’ke» branches and AK «Vradiyivs’kyy» (Mykolayiv region) were acknowledged for their significant contribution to the social and economic development of the region, fruitful cooperation in the implementation of state employment policy.

32 33 PROFESSIONAL TRAINING AND EDUCATION 3. In order to protect its employees socially and to control prices hike for own products as well as for catering in the cafeteria at the transshipment terminal and at the branches, the company does not use trade margins and made some products cheaper.

4. The company pays compensations and benefits in the amount provided by the current legislation, when employees have business trips or move to work in other regions.

The mandatory state pension insurance provided for by the current legislation standards is in force at the company.

NIBULON creates comfortable conditions so that employees may work after retirement age; thus, most employees continue working. Pension is not an obstacle to employ people at NIBULON. As of 01.01.2015, pensioners comprise 9,5% of the total number of employees.

The company supports the disabled: employees with systemic diseases have usual working conditions, and physically disabled people have special conditions created by NIBULON – from the development of individual job or working description to the equipment of individual working places and the establishment of an individual timetable. NIBULON can also sign an agreement with employee for out-work, but most disabled people want to work with their colleagues, as they feel themselves useful being among people.

On retiring, the pensioners are in touch with the company. NIBULON invites them for official events, congratulates them on holidays and supports them with money.

The company implements the program to select and prepare young specialists, aimed at forming personnel reserve and training top managers from among young specialists that got a job after graduation and obtained the required experience under the direction of experienced employees who can train them and share experience. On training completion, NIBULON offers young specialists to work (and to live) in another regions, holding a leading position. NIBULON pays travelling expenses and compensates cost for accommodation rented, partially compensates expenses for catering. If an employee has been holding a leading position for 5 years and wants to keep working in the selected region, the company repurchases accommodation there.

On October 10, 2013, NIBULON’s personnel department organized training on personnel records management and labour legislation compliance for the employees being responsible for human resources records management at the On March 01, 2013, Mykolayiv Regional Employment Center and Petro Mohyla Black Sea State University acknowledged the branches. «The training aims to share experience, to discuss problem issues», stresses Larysa Buryk, NIBULON’s deputy best employers in the region. NIBULON received the Honorary Gratitude «Best Employer». general director of personnel.

34 35 The personnel training policy enables the company to single out specialists being able to work efficiently in difficult A collective training is organized by highly-skilled specialists from the central office for the employees at the branches. conditions and to form the team who will develop and support such a corporate culture in order to balance present and This training is used for advanced study of job peculiarities in specific production situations according to the types of professions, by using specific equipment, etc. The training includes practical work integrated into the theoretical course future needs of the company. of lectures and seminars.

NIBULON created different programs and projects that provide exposure to non-routine tasks and frequent changes in responsibilities in order to train the best professionals.

One of NIBULON’s working principles is to improve skills of its specialists by means of regular trainings. On June 25-27, 2014, NIBULON held practical training The training programs are developed for NIBULON’s courses on the inspection of grain cargoes and analyses of grain product qualitative indices at its transshipment specialists; they include both lectures and practical terminal in Mykolayiv city. Employees from the production work. The team training is a mutually beneficial and technological laboratory and quality specialists process resulting in NIBULON’s improvement due to from the Jordanian Ministry of Agriculture took part in highly-skilled employees. the event. The specialists from both countries had an opportunity to familiarize themselves with standards and to research technologies to measure grain product quality, to share experience and to discuss topical issues.

An off-site training enables a specialist to be trained by third-party lecturers and experts. NIBULON directs its specialists to: NIBULON implements different forms of professional training. • lectures and seminars aimed at familiarizing with innovations caused by changes in the legislation; the head of the An on-site individual training involves an employee in the production process, stimulates different production structural subdivision determines whether it is necessary or not to participate in; situations peculiar to the given job/profession directly on-site. This training includes instructions and traineeship. Each • educational institutions licensed for teaching activity and for the right to issue the national certificates; structural subdivision uses this type of training, as it has the following advantages:

• involvement in the production processes; • private training centres certified by the international organizations to check knowledge on quality system and to retrain; • practical experience; for example, NIBULON annually directs its laboratory specialists to reaffirm the company’s right to sell products in the • visualization; world markets. • training consistency.

As part of the training programs, trainings and «The current labour market is characterized by seminars, NIBULON’s specialists regularly visit foreign specialization weakening: a specialist has to master companies in France (EURALIS Semens, Teknoma, related professions, knowledge, skills, in particular R.A.G.T.), Germany (Bayer, BASF), Belgium (Syngenta), to know laws and jurisprudence, foreign languages, the USA (NUSEED), etc. standardized software. Every specialist must improve his qualification and expand his interests». Thus, from June 10 to 15, 2013, Oleksandr Gayday, NIBULON’s regional director of production, participated Head of economic analysis and planning department in a specialized tour within Great Britain, being a part Yevgen Didyk of the delegation of agrarians from Ukraine.

36 37 EMPLOYEE HEALTH AND SAFETY

38 39 INDUSTRIAL SECURITY The heads of structural subdivisions, labour protection specialists and other NIBULON’s officers periodically (once per three years) undergo training to check labour protection knowledge in the training and methodical centers of NIBULON adheres to a principle of life and health priority to the production activity results. the State Service of Mining Supervision and Industrial Security of Ukraine as well as at the company.

NIBULON’s labour protection department is implementing the given policy according to the current Ukrainian legislation. NIBULON regularly carries out partial (full) technical certification of hoisting apparatuses and gears, elevators, The company’s separate structural subdivision created in 2009 aims to ensure that legal, organizational and technical, fire-fighting lifting platform, shiploading pipes, vessels under pressure as well as maintenance of technological sanitary and hygienic, social and economic, treatment and preventive measures aiming at preventing accidents and transport, etc. occupational diseases during labour activity are performed. During working hours, the company assists its specialists at the branches in preparing documentation and advises NIBULON’s policy in the labour protection sector is them on labour protection issues. built upon the principles of life and health priority to the company’s production results and the multiple solution of problem labour protection tasks.

Thus, every year the company develops and implements «Multiple measures to achieve standards of security, labour hygiene and production environment; to improve labour protection level; to prevent occupational accidents, diseases and fires at the company».

In 2013-2014, NIBULON’s fire-fighting teams participated in the contests of nonmilitary fire-fighting units in Kyiv region. In 2013, the teams of «Pereyaslavs’ka» and «Denyhivs’ka» branches achieved prize-winning places, and in 2014 won first «People are unprotected before different factors connected place. In addition to participating in the contests, in order to practice common actions of the fire-fighting guard with with their occupational activity. Industrial accidents and the State Emergency Service of Ukraine, NIBULON carried out tactical and special trainings to extinguish an imaginary occupational diseases connected with a human factor fire. And in July 2014, NIBULON participated in a regional seminar on abidance by the fire safety rules during harvesting, often appear worldwide, but not at NIBULON with a organized by the Department of the State Emergency Service of Ukraine in Poltava region. labour culture. Human’s life and health are of great value here».

Head of labour protection service Sergiy Savinets In 2014, the company obtained a total of 37 expert opinions, in particular according to the results of the expert examination in order to obtain a permit and according to the results of partial or full equipment maintenance. The company obtained a total of 21 permits to carry out hazardous work and to operate hazardous equipment at «Artemivs’ka», «Gradyz’k», «Maryanivs’ka», «Novoodes’ka», «Kremenchuts’ka», «Chygyryn» branches (works, equipment); RE «Lidiyivs’ke», «Mriya» and «Troyits’ka» branches (autocrane, hoisting gears); «Pivdennyy Bug» branch (pesticides); NIBULON shipbuilding and repair yard (operation of hoisting gears); NIBULON’s production and technological and chemical-technological laboratories (the use of hazardous substances (chemical substances); and at NIBULON (steeplejacking). The company annually organizes training on labour protection issues for its employees working in hazardous conditions. In 2014, more than 1,500 employees being involved in electric welding and gas-flame works, gas dangerous work, The company organized and carried out work to examine foreign equipment for compliance with normative and maintenance of gas gears, wood processing with fire-protective mixtures and substances, work at height underwent legal labour protection statements acting in the Ukrainian territory (VOLVO front loaders). labour protection training.

40 41 HEALTH OF EMPLOYEES PREVENTIVE MEASURES

Annually, the company organizes and conducts medical examinations of its employees working in hazardous conditions, persons under 21 years old and drivers. In 2014, more than 1.7 thousand employees underwent medical examination. The company regularly certifies workplaces by labour conditions so that factors of the production environment Thus, in 2014, the company organized and carried out medical examination for 371 persons working in hazardous and labour character may comply with labour security standards at the company. conditions and persons under 21 years old (NIBULON’s central office and transshipment terminal for shipment of grain and oil crops in Mykolayiv city). According to the normative documentation requirements, NIBULON organizes introductory labour protection instructions for new employees and contractors working for NIBULON. In 2014, the company conducted more In order to provide medical assistance in time in case of accidents, the company opened «Health Protection Point» than 700 introductory instructions at the transshipment terminal for shipment of grain and oil crops (Mykolayiv working on a 24-hour basis at the transshipment terminal. The specialists regularly monitor availability and expiration city) as well as in the central office. date of medicine and first-aid kits.

In 2014, NIBULON adapted sanitary and service spaces of the personnel service building at NIBULON shipbuilding and NIBULON provided its structural subdivisions with all the required normative and legal labour protection standards, repair yard to the normative and legal labour protection standards (1st and 2nd floors of the personnel service building), magazines, instructions, posters and stands. thereby improving sanitary and domestic conditions for more than 150 shipyard employees.

«We have comfortable working conditions here like drivers The company’s management ensures qualitative of European companies-haulers. Every driver can see the catering. Each subdivision is supplied with advantages, driving NIBULON’s modern truck: a large environmentally-friendly products cultivated by cabin, an air conditioner and a refrigerator. You do not NIBULON, using leading techniques without chemical feel summer hot weather, sitting in the large comfortable additives. NIBULON has its own meat-processing and cool cabin». workshop to produce sausage products. The products are produced under «Bystryts’ki Kovbasy» trade mark. Driver Viktor Samarskyi

42 43 NIBULON’S EXPENDITURES FOR LABOUR PROTECTION IN 2014 «I got an opportunity to run modern equipment at «Kremenchuts’ka» branch. I appreciate NIBULON for not neglecting its employees and preserving the environment. Industrial Security The company allocates considerable funds to restrict the impact of production process on the environment, by installing up-to-date foreign equipment».

Chief mechanic of «Kremenchuts’ka» branch Ivan Andrushchenko 4.61 117 107 25 2.3

million UAH thousand UAH thousand UAH thousand UAH thousand UAH for labour protection for partial (full) technical for expert conclusions for labour for equipment certification of hoisting and permits to carry out protection examination In order to prevent emergency situations and accidents in the gas supply facility, to perform a package of measures machines and gears, etc. hazardous work and training operate hazardous (technical maintenance and repair) so that the gas supply system may function normally and comply with the rules equipment of gas supply system security in Ukraine, 16 gas services function both at each elevator complex, transshipment terminal and NIBULON shipbuilding and repair yard with a total of 62 employees having undergone training on safe performance of gas dangerous work. Health Protection

In order to ensure safety and health protection at working places, to warn employees about the presence (probable presence) of risk or danger at workplace, to prevent traffic accidents and to organize appropriate road traffic, the company installed road traffic signs and health protection signs prohibiting dangerous actions at NIBULON shipbuilding and repair yard. The heads of relevant services and engineers develop and conduct measures to improve labour and living 2.91 conditions, to ensure uninterrupted production, to meet the labour legislation and execute management decisions 178.5 on these issues. 33.9

million UAH thousand UAH thousand UAH to improve sanitary and domestic for periodical medical for medicine (first aid kits) conditions in the service building at examinations because of expiry date thereof NIBULON shipbuilding and repair yard In order to operate electrical equipment safely, the according to the normative and legal company created its own electrotechnical laboratory. labour protection standards The electrotechnical laboratory regularly tests and Preventive Measures measures insulation resistance of distribution devices located inside and outside, cable lines, contact joints of busbars, ground loops, electric motors and electrically operated hand tools, and also tests high-voltage equipment. In order to perform tasks efficiently, the laboratory specialists are provided with the company’s cars. The laboratory also controls lightning protection 10.9 3.4 devices at all NIBULON’s branches, in particular before the storm.

thousand UAH thousand UAH to certify workplaces according for health protection signs and to labour conditions traffic signs

44 45 CHARITY

46 47 ASSISTANCE TO MEDICAL INSTITUTIONS RESULTS FROM NIBULON’S CHARITABLE ASSISTANCE TO MYKOLAYIV CITY CHILDREN’S HOSPITAL NO.2

In 2013, NIBULON continued its multiple program to reequip Mykolayiv city children’s hospital No.2. At present other Mykolayiv companies and sponsors have joined this program. On December 19, on St. Nicholas Day, NBULON presented Above 3,000 children 50 children the hospital with modern medical equipment intended for treating and examining little patients. The company has invested about UAH 700 thousand in total!

In 2014, NIBULON presented Mykolayiv city children’s hospital No.2 with an XS-5510 MICROmed monocular microscope to conduct routine and general researches as well as blood and urine researches in the diagnostic field. The company also presented a Biomed L 734-II portable four-reflected surgical light. It is characterized by a high level of illumination, low heat radiation, qualitative transfer of colours and shadowless effect. Due to NIBULON, the doctors received a Biomed 7E-B children’s suction unit. This device is necessary for patients being in coma or after surgery.

used an ultrasound inhaler were saved due to a resuscitation during the year and surgical monitor during the year

Monthly, about 180 children Daily, about 60 children

Annually, medical equipment presented by NIBULON helps treating of children (about 7,000 are treated by physiotherapy, magnetotherapy and undergo treatment in the surgery with a table and 70% persons) magnetophoresis equipment lamps presented by NIBULON

Daily, 10 children Daily, 15-20 researches

In 2013, Larysa Buryk, NIBULON’s deputy general director of personnel, won the annual city program «City dweller of the year - 2012» under the category «Charity».

use one of three new electrocardiographs are conducted by hematology and urine analyzers (each) 48 49 EDUCATIONAL LEVEL IMPROVEMENT Annually, the company assists the school. NIBULON changed the roof, conducted capital repairs in some One of the most important directions in the implementation of NIBULON’s standard program is to ensure appropriate classrooms. As part of the action «Hold your hand to a conditions to promote learning. The program is directed to the improvement of the educational and cultural level of first former», the company purchases school uniform, young Ukrainians. This program covers tens of schools in 12 regions of Ukraine. This assistance is constant and systematic bags and stationery for the first formers. The company and achieves the required results – an increase in children’s levels of scholarship. assists in repairing classrooms, purchasing firewood, diesel fuel for heating. NIBULON also ensures catering; children eat vegetables all the year round».

Liliya Bezina Director at Lidiyivka comprehensive secondary school Lidiyivka comprehensive secondary school (Domanivka district, Mykolayiv region)

Tens of schools in different regions of Ukraine are involved in NIBULON’s standard program. Educational institutions regularly receive assistance from the company: repairs, computers and household appliances, furniture, sports goods, educational textbooks, catering, etc. NIBULON presented Mykolayiv comprehensive secondary school with computer equipment of about UAH 70 thousand, assisted Mykolayiv kindergarten No.128 (UAH 100 thousand), purchased computer equipment of about UAH 55 thousand for Kaluga comprehensive secondary school and allocated UAH 40 thousand to Novoukrayinka comprehensive secondary school (Berezneguvate district, Mykolayiv region) to repair part In 2013-2014, three company-sponsored schools in Mykolayiv city (No.24, 51, 57) received modern high-quality multimedia equipment of about UAH 140 thousand: laptops, projectors, multimedia boards, multifunctional devices that of the roof. The company assisted in producing and installing plastic windows at Kozatske school (Kherson region), having will help pupils and teachers to prepare for the classes qualitatively. spent UAH 36 thousand, installed a ramp at Mykolayiv boarding-school No.3 (more than UAH 36 thousand), purchased computer equipment of more than UAH 27 thousand for Snigurivka comprehensive secondary school. NIBULON provides considerable assistance within social partnership agreements signed with local and village councils (see page 52).

In addition to assisting the company-sponsored schools, in 2013-2014, NIBULON implemented a number of charitable projects. In autumn 2014, the company organized the district, patriotic graffiti contests «United Ukraine» for the pupils of comprehensive educational institutions and clubs located in Mykolayiv region. This event not only united village In 2014, Mykolayiv school No.57 presented a book communities but also made towns and villages brighter and more beautiful, having enabled pupils to demonstrate their «A Sparrow of Azure Namyv District» published love to Ukraine. with the assistance of NIBULON. The book covers pedagogical experience of teachers and a 20-year management activity of Tetyana Blakytna, the school director. The school was acknowledged In 2013, NIBULON kept equipping four modern high- as the 1st degree laureate and received a golden tech laboratories of Odesa National Academy of Food medal in the 6th International Forum-Presentation Technologies, presented by the company on the New «Innovation in modern education» under the Year’s Eve. In addition, due to NIBULON, in 2014, the category «Formation of the patriotic personality as Academy’s roof was repaired. The cost of NIBULON’s a fundamental principle of educational work in the assistance comprised about UAH 450 thousand during educational institutions and public organizations». 2013-2014.

In addition, as part of the educational event «A In 2014, NIBULON also equipped a laboratory present to native school», in June 2014, the company of Mogyliv-Podilsk Technological and Economic purchased 20 sets of unique historical books of the College of Vinnytsya National Agrarian University series «the Day Newspaper Library» for Mykolayiv of Commodity Research of Grain and Processing. libraries and the company-sponsored schools in According to the students, this present is priceless. Mykolayiv city as well as in different regions of Now they can master new equipment in practice, and Ukraine. namely an INFRATEC 1241 grain analyzer, an Ohaus analytical balance (Pioneer series), plus a PCHP-3 device to measure falling number.

50 51 In 2013-2014, 148 (!) schools within Ukraine received sports goods of about UAH 155 thousand in total from NIBULON. NIBULON IS A PATRIOT OF UKRAINE These are gymnastics mats (to protect children from injuries during physical training), skipping ropes (one of the world’s most popular sports goods) and rackets to play badminton, volleyball nets and hula hoops. 2014 brought considerable changes in the lives of both Ukraine and its citizens. NIBULON’s General Director did not neglect the country situation. Since March 2014, NIBULON has been allocating considerable financial resources to support the Ukrainian military being in the ATO area as well as the battle-scarred, their families and displaced persons from the ATO area.

In this difficult time for Ukraine, NIBULON assists its mobilized employees and their families who face not only domestic problems but worry about their sons, husbands, fathers protecting integrity and independence of Ukraine. NIBULON assisted 113 employees who were mobilized to the Armed Forces of Ukraine in 2014. NIBULON allocates funds to: WATER SUPPLY SPORT DEVELOPMENT HOUSEHOLD APPLIANCES SUMMER SANITATION - the military directed to the ATO area; the company purchases military equipage: bullet-proof vests, uniform, NIBULON equipped inside NIBULON constructed sports NIBULON purchased a refrigerator NIBULON allocated funds to footwear, glasses, sleeping bags and other important things at war (please note that NIBULON purchases high- toilets and laid on water supply ground at Verbka comprehensive for Rachky comprehensive sanitate children from Svystunivka at Kalmykivka comprehensive secondary school (Kamaynets- secondary school (Chudniv district, comprehensive secondary school quality things, as health and life of our defenders depend on them); secondary school (Milove district, Podilskyi district, Khmelnytskyi Zhytomyr region) and a boiler for (Svatove district, Lugansk region), - the wounded; Lugansk region) and Parneva region) and purchased sports the school canteen (Vradiyivka Globyno district (Poltava region) comprehensive secondary school goods for its sponsored schools. district, Mykolayiv region). and Luzanivka village council - the relatives of employees who were mobilized (material assistance or products, etc.). (Bilovodsk district, Lugansk (Kamyanka district, Kherson region), purchased construction region). materials to repair a fresh water It should be noted that NIBULON assists not only its mobilized employees. The company supports the Ukrainian tank at Martynivka comprehensive secondary school (Voznesensk military and other people who need help. district, Mykolayiv region). ASSISTANCE TO EDUCATIONAL INSTITUTIONS AS PART OF SOCIAL PARTNERSHIP AGREEMENTS DURING 2013-2014 SCHOOL FURNITURE NEW YEAR’S PRESENTS NIBULON purchased school NIBULON purchased New Year’s furniture for Rudne-Gorodyshensk presents for its sponsored school comprehensive secondary school (Chudniv district, Zhytomyr region).

REPAIR OF PREMISES WINDOW REPLACEMENT HEAT AND NIBULON repaired schools of Lantrativka NIBULON replaced and installed windows at Turchynivka POWER SUPPLY village council (Troyitsk district, Lugansk comprehensive secondary school and kindergarten (Chudnivka NIBULON repaired a heating main region), of Kozubivka village council district, Zhytomyr region), Babychivka comprehensive at Troyitsk classical school (Troyitsk (Domanivka district, Mykolayiv region) secondary school (Troyitsk district, Lugansk region), Dontsivka and of Kamyanka village council (Krolevets district, Lugansk region), purchased district, Summy region); Pyatkivka and comprehensive secondary school (Novopskov district, Lugansk firewood for Lidiyivka comprehensive Tyutyunnyky comprehensive secondary region), Lidiyivka comprehensive secondary school (Domanivka secondary school and kindergarten schools (Chudniv district, Zhytomyr district, Mykolayiv region), Novoegorivka comprehensive (Domanivka district, Mykolayiv region), region), Luzanivka comprehensive secondary school (Bashtanka district, Mykolayiv region), allocated funds to cover expenditures secondary school (Kamyanka district, Adamivka comprehensive secondary school (Vradiyivka district, for consumed electricity at Subotivka Cherkasy region). The company repaired Mykolayiv region), Denyhivka comprehensive secondary school comprehensive secondary school a school yard at Parneva comprehensive (Tetiyivka district, Kyiv region) and Vershaky comprehensive (Chygyryn district, Cherkasy region) secondary school (Bilovodsk district, secondary school (Chygyryn district, Cherkasy region). Lugansk region), an assembly hall at and electric heating at Lyubentsi school Martynivka comprehensive secondary (Kamyanka district, Cherkasy region). school (Voznesensk district, Mykolayiv region) as well as a gym at Mutyn comprehensive secondary school (Krolevets district, Summy region).

52 53 COOPERATION WITH THE COMMUNITY

In order to implement the state and regional programs of the ROADS STREET ILLUMINATION GAS SUPPLY VILLAGE COUNCILS social and economic development, to preserve and enrich NIBULON assisted in removing snow from NIBULON repaired power supply NIBULON constructed a supply NIBULON purchased office equipment the traditions of historical and cultural heritage, to maintain the village council territory at locations of network of street illumination for gas pipeline for Pyatkivka village for Mutyn village council (Krolevets the territorial community infrastructure, NIBULON actively the company’s operation; repaired a road Kozatske village council (Beryslav council (Chudniv district, Zhytomyr district, Summy region) and Adamivka surface in Rudnya-Gorodyshche village district, Kherson region) and region) and Stetsivka village village council (Vradiyivka district, participates in developing local communities. The company Mykolayiv region), purchased window initiates the signing of social partnership agreements with council (Chudnivka district, Zhytomyr also installed, repaired street council (Chygyryn district, Cherkasy frames and plates of profiled boarding village, settlement and city councils at locations of NIBULON’s region), Artemivka village council (Chutivka illumination for Krasnopillya region). for Yagidne village council (Kupaynka operation or where the company leases agricultural land. district), Romodan village (Myrgorod village council (Chudnivka district, district, Kharkiv region) and Striltsivka district, Poltava region), Lastovetska village Zhytomyr region), Mytun and village council (Milove district, Lugansk council (Kamyanets-Podilskyi district, Kaminka village councils (Krolevets region), completed construction of In 2014, NIBULON signed social partnership agreements with Khmelnytskyi region), Stetsivka and district, Summy region), Sokil treatment facilities (Kamyanka district, 88 city, village and settlement councils of UAH 1,949,819 Ivanovka village councils (Chygyryn district, and Hodorvets village councils Cherkasy region), purchased four heifers in total. Together with NIBULON, each village council Cherkasy region), Svatove town (Lugansk (Kamyanets-Podilskyi district, for Galaganivka, Ivanivka, Vershaky village councils (Chygyryn district, Cherkasy developed a budget of charitable assistance. Thus, as part region), Novosynyavka village council Khmelnytskyi region), Krasnopillya region), beautified settlements of of social partnership agreements, in 2013-2014, NIBULON (Starosynayavka district, Khmelnytskyi village council (Vradiyivka district, Pidpylypya village council (Kamyanets- provided the following assistance: the company allocated region), Shyroka Greblya village council Mykolayiv region), Romanivka and Podilskyi district, Khmelnytskyi region), UAH 118,160 to complete construction of water treatment (Khmelnytskyi district, Vinnytsya region), Velykokobzartsi village councils produced and mounted 3 bus stops for facilities in Kamyanka district (Cherkasy region), NIBULON Kamaynka-Dniprovska town council (Romanivka district, Zhytomyr Odradokamyanka village council (Beryslav (Zaporizhzhya region), Tetiyivka District region), Pervomaysk village district, Kherson region). allocated UAH 70 thousand to construct a supply gas pipeline State Administration (Kyiv region). council (Svatove district, Lugansk for Stetsivka village council (Chygyryn district, Cherkasy region), Topylivka, Melnykivka region), UAH 60 thousand to replace windows in the cultural and Galaganivka village councils In November 2014, members of the regional contest committee together centers of Velykoostrizhets village council (Khmilnytskyi (Chygyryn district, Cherkasy district, Vinnytsya region), UAH 50 thousand to repair the region). with the village head visited «Kozats’ka» branch as part of the regional kindergarten roof of Artemivka village council (Chutove contest «Best village and settlement council». district, Poltava region). In 2013-2014, the company assisted local communities beyond social partnership agreements. For example, NIBULON allocated the following amount of money at locations of its operation: WATER SUPPLY MEDICAL INSTITUTIONS NIBULON equipped the final fresh water treatment NIBULON maintained material and - more than UAH 491.4 thousand for Artemivka village point for Snigurivka town council (Mykolayiv region), council (Chutivka district, Poltava region) to repair roads; allocated funds both to Galaganivka village council technical basis in Svystuny village - more than UAH 326.68 thousand for Kozatske village council to construct wells and to Medvedivka village council outpatient’s department and kindergarten (Chygyryn district, Cherkasy region) to repair water ASSISTANCE TO LOCAL (Svatove district, Lugansk region), (Beryslav district, Kherson region) to repair street lighting and supply system, repaired shaft wells for Kyslivka allocated funds to repair maternity about UAH 140 thousand to repair road surface; village council (Kupyanka district, Kharkiv region), department in Kamyanka-Dniprovska - UAH 140 thousand for the Cathedral of Casperovka Icon purchased a water well pump for Topylivka village COMMUNITIES DURING central regional hospital (Zaporizhzya of the Mother of God of the Ukrainian Orthodox Church council (Chygyryn district, Cherkasy region) as well region). The company purchased an urine as for Mutyn village council (Krolevets district, Sumy analyzer for Nova Odesa central district (Mykolayiv), region), repaired a sewage pumping station in 2013-2014 - UAH 50 thousand for Tetiyivka Regional State Administration Romaniv village (Myrgorod district, Poltava region), hospital (Mykolayiv region), assisted in (Kyiv region) to repair roads; purchased a hydraulic accumulator for Vilnopillya creating medical and obstetric center in - UAH 42 thousand for Odradokamyanka village council village council (Ruzhyn district, Zhytomyr region), Tyutyunnyky village council (Chudniv (Beryslav district, Kherson region) to produce and install 3 purchased a well pump for Yevsug village council district, Zhytomyr region), purchased warm (Bilovodsk district, Lugansk region), allocated funds blankets for Kazankivka central district bus stops; to Dobrozhany village council (Vradiyivka district, hospital (Mykolayiv region) and windows - UAH 83.78 thousand for Kamyanka-Dniprovska town Mykolayiv region) to carry out water bacteriological for the outpatient’s department of council to repair road surface and UAH 60 thousand to repair analysis, renovated water supply in one of Nova Topylivka village council (Chygyryn district, Odesa micro-districts (Mykolayiv region). maternity department at Kamyanka-Dniprovska central Cherkasy region). district hospital (Zaporizhzya district).

«Our terminal is the pride of our town. The citizens as well as guests visit this facility. The street where the road is located (leading to the branch and constructed by NIBULON) is called NIBULON Street. Mothers are fond of walking with VILLAGE HALLS AND CULTURAL CENTRES PRESCHOOL EDUCATIONAL INSTITUTIONS NIBULON repaired and replaced windows in the cultural centres of the following village NIBULON provided repairs and materials: Dobrozhanivka village council baby carriages there, as the road is plain without any holes. councils: Shulgynka village council (Starobilsk district, Lugansk region), Velyka Ostrozhets (Vradiyivka district, Mykolayiv region), Bereznyaynka and Vyshenkivka village and Bereznyanka village councils (Khmilnytskyi district, Vinnytsya region), Mysiyivka village councils (Khmilnytskyi district, Vinnytsya region), Sokil and Lastivtsi village councils The youth likes to ride motorcycles and bicycles there. Many council (Milove district, Lugansk region), Melnyky and Ivanivka village councils (Chygyryn (Kamyanets-Podilskyi district, Khmelnytskyi region), Kozubivka village council district, Cherkasy region), Luzanivka and Lubentsi village council (Kamyanka district, (Domanivka district, Mykolayiv region); changed windows: Kobzartsi village people walk here at night, when lamps illuminate the road». Cherkasy region), Kamyanka village council (Krolevets district, Sumy region); as well as council and Snigurivka town (Snigurivka district, Mykolayiv region), Globyno in the village halls of the following councils: Pryvorotya and Grynchuky village councils town council (Poltava region); purchased furniture, household appliances and (Kamyanets-Podilskyi district, Khmelnytskyi region), Striltsivka village council (Milove computer equipment: Frunze village council (Domanivka district, Mykolayiv district, Lugansk region), Vyshneve village council (Starobilsk district, Lugansk region). The region), Petropavlivka village council (Kupyany district, Kharkiv region), Novopskov «Gradyz’k» branch director company purchased musical equipment for the cultural centres of Pavlenkivka, Kozlivka and Dontsivka village councils Novopskov district, Lugansk region), Voznesensk and Kamyanka village councils (Novopskov district, Lugansk region), Velykotsk village village council (Zolotonosha district, Cherkasy region), Shustivtsi village council Oleksandr Mishyn council (Milove district, Lugansk region), Chervonodolynsk village council (Snigurivka (Kamyanets-Podilskyi district, Khmelnytskyi region), Lotskyno village council district, Mykolayiv region) as well as for Martynivka youth leisure center of Prybuzhany (Bashtanka district, Mykolayiv region), Mutyn village council (Krolevets district, village council (Voznesensk district, Mykolayiv region); purchased curtains for the cultural Sumy region) and Sokil village council (Kamyanets-Podilskyi district, Khmelnytskyi centre of Mozhnyakivka village council (Novopskov district, Lugansk region) and tennis region); repaired heating systems and purchased garbage cans for the kindergarten tables for institutions of Chervonodolynsk village council (Snigurivka district, Mykolayiv of Maryanivka village council (Grebinkivka district, Poltava region); repaired the region); ensured heating in the cultural centre of Topylivka village council (Chygyryn district, kindergarten roof of Artemivka village council (Chutove district, Poltava region); Cherkasy region); allocated funds to produce costumes for Tyutyunnyky village council ensured heating for the kindergarten of Pology-Yanenky village council (Pereyaslav- (Chudniv district, Zhytomyr region), to make design estimates and to repair a club of Khmelnytskyi district, Kyiv region). Tymonivka village council (Troyitsk district, Lugansk region). 54 55 * Detailed information on assistance to educational institutions is in the previous section GRI Content Index Compliance [email protected] with the UN www.nibulon.com GRI Global Indicators References Page Comment 3.6 Boundary of the report – – The report covers the Items Agreement activity of NIBULON Principles including all its 1. Strategy and Analysis branches 1.1 Statement from the Message from 1 3.7 State any specific – – Without limitations General Director. NIBULON’s General limitations on the scope Director O.O. or boundary of the Vadaturskyy report. 1.2 Description of key Message from 1, 6- 3.8 Basis for reporting – – Without other entities impacts, risks, and NIBULON’s General 11, another entities that can opportunities. Director O.O. 16-18, significantly affect Vadaturskyy.Charity 48-53 comparability from 2. Organizational Profile period to period 2.1 Name of the About us 6 3.9 Data measurement – – Financial and organization. techniques and the accounting data on 2.2 Primary brands, About us 6-11 bases of calculations. the basis of products, and/or NIBULON’s own services. statistics and 2.3 Operational structure of About us 12-14 analytics the organization 3.10 Explanation of the effect – – Without significant 2.4 Location of About us 12-13 of any re-statements of changes organization's information provided in headquarters and earlier reports offices 3.11 Significant changes About us 12-14 Without significant 2.5 Number of countries About us 8-9 from previous reporting changes where the organization periods in the scope, operates boundary, or 2.6 Nature of ownership About us 6 measurement methods and legal form. applied in the report. 2.7 Markets served About us 89 2.8 Scale of the reporting About us. Our team 89, 30 3.12 Table identifying the GRI 54-59 organization. location of the Standard content index 2.9 Significant changes – – No significant changes Disclosures in the during the reporting report. period regarding size, 4. Governance, Commitments, and Engagement structure, or ownership. 4.1 Governance structure of About us 14 2.10 Awards received in the About us 15 the organization. reporting period. 4.2 Indicate whether the – – The company’s General 3. Report Parameters Chair of the highest Director Oleksiy 3.1 Reporting period – – 2013 governance body is also Vadaturskyy is a 3.2 Date of most recent – – March 2013 an executive officer founder and owner of previous report. the company (80%) 3.3 Reporting cycle – – 1 year 4.3 The number of – – Impossible to use 3.4 Contact point for – – NIBULON’s information members of the highest questions regarding the and organization governance body that report or its contents. department are independent non- Tel.: +38 (0512) 580422 executive members.

56 57 4.4 Mechanisms for About us 16 ЕС6 Policy, practices, and About us 6 shareholders and proportion of spending employees to provide on locally-based recommendations or suppliers at significant direction to the highest locations of operation. governance body. ЕС7 Principle 6 Procedures for local Our team 32 4.8 Internally developed About us 17 hiring and proportion of statements of mission or senior management values, codes of conduct hired from the local and principles community at locations 4.9 Procedures of the About us 16-17 of significant operation. highest governance ЕС8 Development and About us. Charity 6-11, body for overseeing the impact of infrastructure 48-53 organization's investments and identification and services provided management of primarily for public economic, benefit through environmental, and commercial, in-kind, or social performance pro bono engagement. 4.12 Externally developed Environmental 26 ЕС9 Understanding and Charity 48-53 principles and other aspects of activity describing significant initiatives to which the indirect economic organization subscribes impacts, including the or endorses. extent of impacts. 4.13 Memberships in About us 16 ЕN5 Principles 8, 9 Energy saved due to – – In 2013, the company associations or conservation and spent by 320 national/international efficiency thousand advocacy organizations improvements. kilowatt/hour of 4.14 List of stakeholder About us 16 electric energy less groups engaged by the than during the organization. previous period 4.15 Basis for identification About us 16-17 ЕN6 Principles 8, 9 Initiatives to provide Environmental 23 and selection of energy-efficient or aspects of activities stakeholders with whom renewable energy to engage. based products and 4.16 Approaches to About us. Charity 16-17, services, and stakeholder 52-53 reductions in energy engagement. requirements as a 4.17 Key topics and concerns About us. Charity 16-17, result of these that have been raised 48-53 initiatives. through stakeholder ЕN8 Principle 8 Total water withdrawal – – - from wells – 313.1 engagement by source. thousand cubic 5. Management Approach and Performance Indicators meters, including ЕС3 Coverage of the Our team 34 given to people - organization's defined 120.5 thousand cubic benefit plan obligations. meters ЕС4 Significant financial NIBULON does not - from surface water assistance received from receive financial facilities – 11,579 government. assistance from the government cubic meters

58 59 ЕN14 Principle 8 Strategies, current Environmental 22-27 LA13 Principles 1, 6 Composition of About us. Our team 14, actions, and future aspects of activity governance bodies 31-32 plans for managing and breakdown of impacts on employees per biodiversity. category according to ЕN26 Principles Initiatives to mitigate Environmental 22-27 gender, age group, 7, 8, 9 environmental impacts aspects of activity minority group of products and membership, and services, and extent of other indicators of impact mitigation. diversity. ЕN30 Principles Total environmental – – Total environmental LA14 Principles 1, 6 Ratio of basic salary of About us. Our team 14, 31 7, 8, 9 protection expenditures in 2013– men to women by expenditures and UAH 7 million 962 investments by type. thousand employee category. 235, including capital HR4 Principles Total number of – – Discrimination is investment for the 1, 2, 6 incidents of absent environment discrimination and protection – UAH 1 actions taken. million 48 thousand HR6 Principles Operations identified – – There were no cases 111 1, 2, 5 as having significant of child labour LA1 Total workforce by Our team 30 risk for incidents of employment type, child labor, and employment contract, measures taken to and region. contribute to the LA3 Benefits provided to Our team 33-34 elimination of child full-time employees labor. that are not provided HR7 Principles Operations identified – – There were no cases to temporary or part- 1, 2, 4 as having significant of compulsory labour time employees, by risk for incidents of major operations. forced or compulsory LA4 Principles 1, 3 Percentage of – – All team employees covered by labor, and measures to collective bargaining contribute to the agreements. elimination of forced LA7 Principle 1 Rates of injury, – – Level of occupational or compulsory labor. occupational diseases, injuries is satisfied; HR9 Principles 1, 2 Total number of – – There were no cases lost days, and rate of total injuries – incidents of violations of violation absenteeism, and 1,2; professional involving rights of number of work- diseases are absent; indigenous people and related fatalities by rate of lost days – 11,4; actions taken. region. rate of absenteeism is SO1 Nature, scope, and Charity 22-27 not provided for by effectiveness of any the legislation programs and LA11 Programs for skills Our team 35-37 practices that assess management and lifelong learning that and manage the support the continued impacts of operations employability of on communities, employees and assist including entering, them in managing career endings. operating, and exiting.

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