INHABITANTS KOMSOMOLETS AGROCOMPANY A new player among leaders of the Russian agricultural industry Presentation for investors A fast-track expansion strategy for cultivating 300,000 hectares March 2019 Contents Summary 2-7 Business overview 8-20 Rapeseed production 21-27 Market 28-32 Strategy 33-37 Financial model 38-50 Appendix: financial status 51-59 STRICTLY CONFIDENTIAL VINCERE CAPITAL 1 Investment opportunity summary STRICTLY CONFIDENTIAL VINCERE CAPITAL 2 mln rub EBITDA 2018 Producer and exporter of 190 33%+ margin rapeseed in the Russian Far East c/ha crop yield achieved Index Value 25+ (pilot fields) High-quality of produced Oil content 46,9% rapeseed Erucic acid 0% Oil admixture 2% mln rub of equity investment Impurities 0,4% 386 in 2014-2018 Moisture 7% 90 units of sowing, harvesting and other Chernyshevsky district ths ha 112 land-bank in a long-term machinery 30,2 Sretensky district lease ths ha Shilkinsky district 11 ths ha 1,8 Uletovsky district ths ha . Highly effective top-management team 17,6 Krasnokamensky district and crop production experts (agronomists, ths ha technologists and engineers) 51,1 ths ha . Proven technology of rapeseed cultivation Zabaikalsk Mongolia China . KEY DATA Arable land Komsomolts was established in 2014 by brothers Valery and Ivan Nagel on the base ths ha of state-owned “Breeding farm “Komsomolets” and is the largest in the Russian Far East producer and exporter of rapeseed to China with a 15% share (>21 ths tons) according to the results of 2018 agricultural year 163 Komsomolets is a rapidly developing company which generates profit from the very first year. Shareholders fully reinvest profit for further development 101 The land-bank amounts to 112,000 ha, which is leased by Komsomolets for 49 years. 3 3 50 The procedure of signing lease agreements for additional 125,000 ha is underway 2 17 17 30 1 4 11 15 14 The total size of arable land in Zabaikalskiy region is 1,4 mln hectares. Up to 2020 2015 2016 2017 2018 2019П 2024П 2029П Komsomolets will additionally acquire long-term lease-rights for 60,000+ ha of most Rapeseed Other fertile land and this allow Komsomolets to become one of the largest agro-producers in Russia with 300,000 ha land-bank Rapeseed production . DIRECT ACCESS TO THE LARGEST MARKET ths tons 3,0 The total harvest of oilseeds is exported to China, the world largest consumer (18.5 2,5 2,5 mln tons) and importer (4.7 mln tons in 2017) of rapeseed 2,5 1,7 2,0 Purchase contracts are signed with 3 largest wholesale companies in North China 1,6 1,5 1,3 1,2 1,5 . UNIQUE TRANSPORT ACCESSIBILITY 125 The transport route from the Company warehouses to the border with China at 1,0 Zabaikalsk boundary railway check point does not exceed 400 km. Loading of the 75 23 0,5 finished product is implemented from the Company railway siding at Chernyshevsk 14 21 5 station, which is the hub for grain delivered by trucks 1 0,0 2015 2016 2017 2018 2019П 2024П 2029П . HIGH QUALITY OF PRODUCT Rapeseed Yield t/ha In China rapeseed is processed to produce oil consumed for food similarly with olive oil in western countries Total revenue The use of rapeseed in food industry stipulates high requirements for quality of raw mln rub material, and rapeseed from Zabaikalskiy region ideally meets them (highest oil content, zero content of erucic acid, minimal level of contaminants and moisture) 10 869 . PROSPECTS OF GROWTH 1 065 5 476 To cultivate available land bank in the size of 300,000 hectares by 2030 32 102 308 596 To apply a successful experience of pilot fields for the entire arable land and achieve 2015 2016 2017 2018 2019П 2024П 2029П rapeseed yield of 2.5 tons/ hectare in 2024 To sign contracts with processing companies Total EBITDA (without planned subsidies) To develop processing facility for production of high-margin products mln rub Without considering 55% 56% 65% 33 mln rub of To attract a long-term and low-cost financing from Far East Development Fund for 55% received subsidies 40% construction of an elevator 32% 32% 45% 22% 35% To become an anchor resident of the advanced special economic zone 6 075 25% “Chernyshevsk” to be established in the framework of integration of Zabaikalskiy 3 036 15% 0% 346 193 5% region into the Russian Far East 23 123 -5% STRICTLY CONFIDENTIAL 2015 2016 2017 2018 VINCERE2019П 2024ПCAPITAL 2029П 4 Investment highlights (1/2) ths ha . The last chance to build from scratch a great success story in the Russian agriculture. The potential land-bank expansion lands in all the rest regions are allocated and it is practically impossible to gather them into a 300 single massif without purchasing the existing players with an extra pay . Zabaikalskiy region has stayed in the background of investors’ attention for a long time, and this allowed the Company to gather single massifs of most fertile lands in the region . At present the Company has lease-rights for 112,000 ha, by 30/09/2019 it will have acquired lease-rights for another 125,000 ha. The Company is now searching for another 60,000- 70,000 ha of best land in close to the Company available land-bank. The raised capital will be used to finance the investment program for 2019-2020, which will Self-sustainable allow to cultivate 50,000 ha of idle lands . Business marginality will show and reinvest profits in the amount ensuring a further organic equity story growth without attraction of new equity-investments (only reinvestment of profits and bank loans) . In 5 years the Company will launch its IPO on Singapore or Hong Kong Exchange, for which IPO in 2024 a holding structure in the relevant jurisdiction will be created . The Company EV in 2024 at the current multiples (EV/EBITDA 8-10х) will make up 24.3-30.4 billion rubles Company Country Mcap, $M EV, $M Revenue EBITDA EV/Revenue EV/EBITDA 2017A 2018F 2019F 2017A 2018F 2019F 2017A 2018F 2019F 2017A 2018F 2019F WILMAR INTERNATIONAL LTD SINGAPORE 14 490 35 543 45 463 44 085 43 085 2 185 2 124 2 217 0,78x 0,81x 0,82x 16,27x 16,73x 16,03x KUALA LUMPUR KEPONG BHD MALAYSIA 6 213 7 106 3 236 2 941 3 444 560 500 525 2,20x 2,42x 2,06x 12,69x 14,23x 13,53x GOLDEN AGRI-RESOURCES LTD SINGAPORE 2 369 5 216 6 052 6 585 7 619 802 687 419 0,86x 0,79x 0,68x 6,51x 7,60x 12,44x UNITED PLANTATIONS BHD MALAYSIA 1 336 1 158 383 302 312 160 129 119 3,02x 3,83x 3,71x 7,23x 8,97x 9,72x BUMITAMA AGRI LTD INDONESIA 812 1 233 376 392 486 138 144 188 3,28x 3,14x 2,54x 8,92x 8,57x 6,57x SAWIT SUMBERMAS SARANA TBK P INDONESIA 786 1 014 201 189 221 104 101 99 5,05x 5,35x 4,59x 9,75x 10,03x 10,26x BUNGE LTD USA 8 189 16 438 60 991 61 347 57 161 1 066 1 769 1 537 0,27x 0,27x 0,29x 15,42x 9,29x 10,69x ARCHER-DANIELS-MIDLAND CO USA 25 358 32 328 65 204 67 286 67 633 3 561 3 760 3 840 0,50x 0,48x 0,48x 9,08x 8,60x 8,42x KWS SAAT SE GERMANY 1 971 2 083 1 275 1 274 1 302 222 203 211 1,63x 1,63x 1,60x 9,38x 10,27x 9,89x GRAINCORP LTD-A AUSTRALIA 1 509 2 180 3 235 2 685 3 265 206 163 225 0,67x 0,81x 0,67x 10,60x 13,41x 9,68x CHINA AGRI-INDUSTRIES HLDGS HK 1 919 4 006 12 974 13 991 15 408 478 516 617 0,31x 0,29x 0,26x 8,39x 7,76x 6,50x SLC AGRICOLA SA BRAZIL 1 168 1 526 671 750 816 187 202 230 2,28x 2,04x 1,87x 8,16x 7,54x 6,62x Mean value 1,74x 1,82x 1,63x 10,20x 10,25x 10,03x Median 1,25x 1,22x 1,21x 9,23x 9,13x 9,81x STRICTLY CONFIDENTIAL VINCERE CAPITAL 5 Investment highlights (2/2) cash-in . The attracted equity-investment will be fully used for Company development, the founders’ 100% partial withdrawal from business is not considered billion rub . From 2021 the Company will start paying dividends to its shareholders of dividends payable . The Company will be able to pay dividends due to achieving sustainability based on net profit 37+ and balanced attraction of working capital and investment loans for 2021-2031. Over just 4 years the Company has developed a strong credit reputation (partner banks: Bankable story Sberbank and Rosselkhozbank) . The Company was the first in the Far Eastern Federal District who in September 2017 issued 1-year bonds for middle market companies for 30 mln rub. The bonds were successfully paid off. New 3-year bonds were issued in August 2018 for 40 mln rub . In 2019 the Company for the first time will prepare IFRS statements for 2018 Western management . By 2020 IFRS statements standards will be introduced both in the process of management standards accounting and annual financial reporting . In future on the base of crop farming the Company will organize mixed feed manufacture to Vertical integration develop its stock-raising profile . Historically the Company has a status of a purebred establishment, breeding Australian merinos with fine wools.