Agro-industrial complex KAZAKH INVEST Construction of a plant for the production of Investment proposal pectin in the “Taldykorgan” industrial zone August 2020 Agro-industrial complex Project description: Market prerequisites: Construction of a plant for the production of pectin and dry Absence of similar production in Kazakhstan. The absence of granulated feed from beet pulp (waste from the processing direct competitors on the market will make it possible to of sugar beet) based on the new practical technology for gain a large market share and implement an import extracting pectin from beet pulp (new practical way). substitution strategy. Location: Plentiful raw materials. The production volume of beet pulp Taldykorgan city, "Taldykorgan" industrial zone. in the Almaty Oblast alone reaches 150,000 tons annually. Initiator: This Project will require 30,000 tons of beet pulp annually. Green Technology Partners LLP. Project innovativeness. A new technology has been Commercial products and capacities: developed for extracting pectin from beet pulp, which is pectin - 600 tons per year, more economical than technologies for extracting pectin granulated dry feed – 6,000 tons per year. from citruses and apples. The developers of the technology Manufacturing process: registered their rights to the technology in accordance with raw materials washing - sorting and disintegration - the requirements of copyright laws in Kazakhstan. extraction (extraction of pectin by heating the mixture) - Registration has also been done in 167 countries around cooling extraction - filtration - precipitation of pectin - the world. When structuring the transaction, exclusive liquid extraction of pectin – extraction of dry pectin into rights to the technology will be transferred by the authors powder. to the Project Initiator on a long-term or perpetual basis. Key investment indicators Project profitability 14,000 35% 45% 41% 35% 38% 35% Indicator Results 12,000 40% Investment amount, US$ thous. 13,300 10,000 35% 8,000 30% Project NPV, US$ thous. 9,090 6,000 25% 4,000 20% IRR, % 19.7% US$ thous. 2,000 15% 10,784 10,784 11,719 12,476 13,271 EBITDA margin, % 37.3% 9,959 0 10% Payback period, years 7.1 Year 4 Year 7 Year 10 Year 13 Year 16 Renevue, US$ thous. EBITDA margin, % Discounted payback period, years 10.9 Project location: Pectin production line Spray dryer industrial zone «Taldykorgan» and equipment Cooling tower and pumps Nur-Sultan Mono-pump Sorting Steam Industrial zone conveyor belt boiler «Taldykorgan» Air Vibrating Mono-pump Screen compressor Washing machine Mono- Filtration tak pump Heat exchanger KAZAKH INVEST Expansion of a modern pig farm to a Investment proposal capacity of 500,000 heads August 2020 Agro-Industrial complex Project idea: Prerequisites for the Project implementation The project envisages an expansion of an existing pig farm Food base. The pig farm is located in the center of the grain from a capacity of 50,000 heads to 500,000 heads. Project region of Kazakhstan, rich in cultivated wheat, rapeseed, implementation will create around 240 additional jobs. and soy. Availability of high-quality and inexpensive feed is Project location: one of the key conditions for pig farming and gives a Taiynsha district of North Kazakhstan oblast significant competitive advantage. EMC Agro LLP purchases Project Initiator: feed from the sister companies Aziaagrofud JSC and Bio EMC Agro LLP Operations LLP (5 km from the pig farm). Production capacity: Export to China. Over the past 5 years, China's pork imports 51 thousand tons of finished products (2026), of which have increased 2.6 times and amounted to 2 million tonnes meat on bone is 68%, sausage products - 24% and offal - in 2019. It is expected that this indicator will grow due to 8%. 86% of the total volume of finished products comes from slaughtering of pigs and 14% – from cattle. the decline in the volume of domestic pork production. Sales market: According to the agricultural survey 2020-2029 of the The company plans to export 70% of its manufactured Ministry of agriculture of the People's Republic of China, it goods to China and sell the rest on the domestic market is expected that in 2020 pork production will decrease to through distribution networks. 39 million tons (-9.2% by 2019) due to the African swine Production process: fever in China (hereinafter-ASF) and COVID-19. It is planned An economically justified technological scheme for to include EMC Agro LLP in the Register of The General organizing pig breeding is considered to be a process with a Customs Administration of the People's Republic of China complete production cycle, including the reproduction of as a potential pork exporter to China. piglets, nursery and feeding until the stage of commodity Availability of the necessary infrastructure and qualification items. This mechanism provides a steady reproduction and The Initiator manages a modern pig farm, has a land plot formation of the herd, as well as the flow rate and with all engineering and technical communications. The pig uniformity of the arrival of young stock for fattening. complex, where technological processes are automated, Investment attractiveness of the Project includes: reproductive farm, artificial insemination station, Indicator Results growing and fattening farm, meat processing plant, own Investment amount, US$ veterinary service, and equipped laboratory. 126,866 thousand Project's profitability Project NPV, US$ thousand 121,368 300 22.3% 25.0% 24.0% 24.5% 25.0% 30% 16.2% IRR, % 26.4% 200 14.4% 20% EBITDA margin, % 22% 100 10% Payback period, years 8.2 12 60 126 168 182 195 201 USD millionUSD 0 0% Discounted payback period, years 10.2 2020 2022 2024 2026 2028 2030 2031 Investment structure Revenue, USD million EBITDA margin, % Financing structure Construction and assembly work 53.2% $67.52 million Initiator equity 12% 20% Machinery and 12% ($15 million) 26% 7% equipment $33 million Participation of the Fund (KIDF or KCM) 7% ($9 million) $126.9 Initial working capital 8.1% $10.27 million Debt financing subject to collateral million 61% ($76.9 million) Participation of the Investor Primal biological assets 5.4% $6.86 million From 20% ($26 million) 61% The proposed financing structure is indicative, the final financing and Others 7.3% $9.21 million Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Full-cycle cattle fattening and meat processing Investment proposal and sale enterprise August 2020 Agricultural sector Project summary Prerequisites for Project implementation Increasing the production capacity of a full-cycle enterprise for Trade and logistics chain - To sell its products under its own brand fattening cattle, processing and selling cattle meat in Almaty Asyl ET, the Company has its chain of meat stores Asyl ET and its Oblast. own frozen meat distribution network MPS Distribution Under the project implementation in two locations it is planned (neighbourhood store). to: The Initiator is accredited for products distribution to China, • expand in Boleksaz village of Kegen district the existing feedlot Russia and the Middle East. capacity, and to provide own forage resources on a leased Company’s extensive material and technical base - The Company’s land plot; assets include large land plots for arable land and pastures, an • build in Koshmambet village of Karasay disctrict new feedlot, operating meat processing plant, a feedlot, a trading network of to increase the meat processing plant capacity. five stores, seeding equipment and a granary, which greatly Within the Project 192 jobs are expected to be created. simplifies the Project implementation. Proximity to potential clients - The location in the densely Project Initiator: populated Almaty Oblast gives an advantage in proximity to the Meat Processing and Service LLP sales markets of Almaty and Almaty Oblast with a population of Project location: 3.8 million people. Republic of Kazakhstan, Almaty Oblast In addition, the strategically convenient location of the region for cross-border trade with China will reduce transport costs when Marketed products and Project capacity: exporting products. 24,157 tons of meat annually since 2022. Within the Project is planned to produce: Project profitability • chilled beef carcasses. 200 000 16% Consumer markets: domestic market of the Republic of 13% 13% 12% 14% Kazakhstan and China market. 11% 11% Equipment suppliers: Jarvis Russia LLC, ScanRef Company LLC, 150 000 12% Agromanagement Kazakhstan LLP, Individual entrepreneur 10% Pesterev I.A. 100 000 8% Investment attractiveness of the Project 6% Indicator Results 50 000 4% US$ thousand 1% 2% 139,704 152,001 164,471 169,795 Investment, US$ thousand 35,508 127,978 0 0% Project NPV, US$ thousand 44,277 Year 1 Year 3 Year 5 Year 7 Year 9 PPP IRR, % 27.8 EBITDA margin, % 11 Sales, US$ thousand EBITDA margin, % Payback period, years 6.3 Discounted payback period, years 8.3 Financing structure Investment structure Initiator equity 8% 7% Construction and 20% 51% ($18 million) assembly work $7.1 million Debt financing subject to collateral $35,5 35% ($12.2 million) Machinery and million equipment 7% $2.4 million Participation of the Fund 35% 51% (KIDF or KCM) 7% ($2.6 million) Other expenses 24% $8.5 million Participation of the Investor from 8% ($2.7 million) Initial working $17.5 million The proposed financing structure is indicative, the final financing and capital 49% Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Greenhouse cultivation of strawberries Investment proposal August 2020 Agro-industrial sector Project idea: Prerequisites for implementation of the Project Construction of a greenhouse-type agro-industrial complex Priority investment project. Industrial cultivation of for the production of strawberries. Production will create strawberries is categorised under 01. Crop production - over 100 new permanent workplaces. growing other types of fruit trees, bushes and nuts, which is Project location: recognised as a priority investment project.