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www.svarog-agro.com

Key performance

indicators

2017

2003 2016

ACREAGE 4,000 ha 80,000 ha

PERSONNEL 200 employees 4,500 employees

GEOGRAPHY Khmelnytskyi region

Khmelnytskyi region Chernivtsi region Zhytomyr region

INFRASTRUCTURE Shepetivka Sugar-Mill JSC

• Shepetivka Sugar-Mill JSC • Grain, legume, oil and special

(niche) crops • Seed material production (seed

plant) • Dairy and meat livestock farming • Horticulture • Products processing and storage • Modern MTSs • Agricultural machinery and

equipment production • IT Projects • NFC juices production • Fruit and berry juice concentrates

production • Corporate Social Responsibility,

Charitable Foundation

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The agricultural department was established on the basis of Shepetivka Sugar-Mill JSC to fulfill sugar production needs with its own raw material

New business directions — dairy and meat livestock farming, MTS

Svarog-2006 Corporation was officially registered on December, 27. The company incorporated 6 farms in Khmelnytskyi region

Acquisition of farms in Chernivtsi region. New business direction — horticulture

Strengthening of the Company's positions and territorial expansion. Rebranding of the Corporation. New name — Svarog West Group

Intensive development of existing business directions

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Development of the export program for own products. Production and recording processes automation on «1C 8» platform

Launching of Company’s legal restructuring and international audit, adoption of IFRS (in partnership with Deloitte company)

The Corporation becomes Ukrainian leader in terms of yield indicators. Business expansion in Khmelnytskyi region

The most powerful in Western Ukraine seed plant, modern fruit storage, juice production line are set into operation

The Company's business activity expands in Zhytomyr region. Storage facilities are increased. The second line of fruit storage with the capacity of 2.5 thousand tons is set into operation. Seed production is intensively developing. New business direction — agricultural machinery and equipment production

Special (niche) crops production and processing program starts on a commercial scale. Svarog is a Ukrainian leader in terms of wheat, sugar beet and soybean yields, reaching 5% of Ukrainian soybean production market. On-line automated company management system is created

According to «Forbes Ukraine» Svarog West Group topped the list of most efficient agricompanies of Ukraine. Corporation received certificate for exporting to China and became the first Ukrainian partner of the European Association «Danube Soya», which is focused on promoting non-GM soybean production. A new processing line for pumpkin seeds is set up. Leadership in winter wheat crop yield is maintained

Corporation for two consecutive years now leads the list of the most efficient agricompanies of Ukraine according to the «Landlord» magazine. It has kept its leadership positions on the yield of main crops. The Corporation has got the award for agronomic effectiveness «Obzhynky-2016» («Harvest-2016») in nomination «Wheat». Svarog West Group is actively investing into innovative developments in IT and biotechnology. The Corporation initiated revival and development of cooperative movement, supports the activity of the First National Agricultural Cooperative

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Geographic location

Professional team

Effective implementation of agricultural technologies

Modern material and technical facilities

Diversification of production

Socially responsible business operations

Clear legal structure

High reputation of the Company

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INDUSTRIAL FACILITIES

LAND AREAS CLUSTERS

Khmelnytskyi region

Shepetivka

Slavuta

Starokostyantyniv

KHMELNYTSKYI

Chernivtsi region

Kamyanets-Podilsky

Kitsman area

Sokyryany area

Novoushitskiy area

Kelmenetsky area

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Seed plant

Livestock farms

MTSs

Elevators

Controlled atmosphere fruitstorages

Vegetable storages

Dairy farms

Agricultural Machinery and Equipment Plant

Chernivtsi

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Seed farms

Seed plant

Elevators

Organic production

Leading Inventory producers

Export

Stud farms

In-house fodder base

Modern dairy farms

Waste products are used in

organic segment of crop farming

Nursery garden

Controlled atmosphere fruit

storages

Weather station

Sorting line

NFC juices production

Export

Modern MTSs

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CROP FARMING

Geography: Khmelnytskyi, Chernivtsi and Zhytomyr regions

Land bank:

80,000 ha Incl. 22,000 ha of

organic land (2017)

Niche crops: spelt, beans, mustard, pumpkin, oil flax, buckwheat, medicinal herbs

Main crops: sunflower, wheat, soybean (food and feed) , sugar beet, corn

Total harvest of main crops in 2016:

253,000 tons

Crop production storage:

9 grain storage facilities

with a total capacity of

350,000 tons

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2014 2013 2015 2012 2011 2010 2008 2009

70,000 ha

55,000 ha 53,000 ha

51,000 ha

80,000 ha

2016

CROP FARMING

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SOYBEAN

CORN

WHEAT

OTHER CROPS

25.0 %

18.0 %

25,0 %

32.0 %

24.0 %

19.0 %

22.0 %

35.0 %

40.0 %

30.0 %

16.0 %

14.0 %

46.4 %

10.6 %

16.4%

22.6 %

2011 2012 2013 2014

SPECIAL (NICHE) CROPS

65 ths ha

69 ths ha

4 %

2015

46 %

25 %

19 %

10 %

2016

80 ths ha

80 ths ha

80 ths ha

80 ths ha

SUNFLOWER 22 %

17 %

24 %

11 %

15 %

CROP FARMING

SEED

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A new processing line for pumpkin seeds – 15 tons of seeds per day

CROP FARMING

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July

August

September

October

November

December

January

February

March April May June July Augus

t September

October

November

December

Soybean

Land preparation

Fertilizing

Planting

Plant protection

Harvesting

Wheat

Land preparation

Fertilizing

Planting

Plant protection

Harvesting

Spelt

Land preparation

Fertilizing

Planting

Plant protection

Harvesting

MAIN CROPS

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July August Septem

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November

December

January Februar

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September

October Novemb

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Corn

Land preparation

Fertilizing

Planting

Plant protection

Harvesting

Sugar beet

Land preparation

Fertilizing

Planting

Plant protection

Harvesting

MAIN CROPS

January February March April May June July August September October November December

Beans

Land preparation

Fertilizing

Planting

Plant protection

Harvesting

Pumpkin

Land preparation

Fertilizing

Planting

Plant protection

Harvesting

Flax

Land preparation

Fertilizing

Planting

Plant protection

Harvesting

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Total plant area

Production premises area

140,000

m2

62,500 m2 Test run

3.4 MW

Capacity of electrical network

Drinking water

1,000 m3

2 km

Siding rail

SERVICE SECTOR

MTS

Own MTS service that consists of 4 regional subdivisions and has all

the required infrastructure

Company’s technical personnel annually undergoes

trainings on the plants of the

manufacturers

Self-propelled agricultural machinery fleet

over 500 units

85% – machinery from

the international manufacturers with a period of operation in the company of no more than 5 years

New project is launched in 2013: manufacturing of modern agricultural machinery, equipment, and information technologies

on the basis of Agricultural Machinery and Equipment Plant

SERVICE SECTOR

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Storage facilities are located in the area of developed transportation infrastructure (railway, highway) and arable land clusters

Argentine grain storage

technology (silo bags)

helps increase the storage

capacity up to

500 ths tons

9 certified storage

facilities with a storage capacity of

350 ths tons*

Certificated and accredited laboratories of cereal receiving stations

*Storage facilities were certified for export to China

SERVICE SECTOR

Fully equipped with latest machinery: color sorting machine, grain sizer and

sorters etc.

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Flour production plant Capacity of 500 tons/day

Buckwheat production plant Highest capacity in

Europe - 360

tons/day

Feed factory

240 tons/day

Wheat germ processing factory

Products and services: • wheat and spelt flour • spelt grits • semolina and

buckwheat • split peas polished • dietary supplements of

wheat germ – «Oil», «Hlyukorn», «flakes»

• feed for all farm animals, fish and poultry

• storage and processing of grain

Founded in 1910

Location: Bila Tserkva, Kyiv region

COLLECTIVE ENTERPRISE «BILOTSERKIVKHLIBOPRODUCT»

The plant capacity:

3,900 tons

of sugar beet per day

During the years of 2009-2014 the company's investment amounted to

about 70 million UAH

Geographic location: Starokostyantyniv, Khmelnytskyi region

Modernized enterprise which takes the leading place among sugar producers and is one of the largest sugar producers in Western region

LIMITED LIABILITY COMPANY «STAROKOSTYANTYNIVSUGAR»

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Products: • White sugar • Sugar beet molasses • Beet pulp (fresh,

fermented, granulated)

Plant for the production of white granulated sugar of 2, 3 and 4 grades in accordance with the requirements of DSTU 4623:2006 White Sugar Over recent 6 years the company increased its performance by 18% to

3,419 tons

of processed sugar beet per day Sugar content in raw material is

17,4%

Products: • white sugar • molasses • beet pulp, fresh and fermented

Geographic location: Shepetivka, Khmelnytskyi region

New development strategy:

• complex technical re-equipment

• new technologies familiarization, cost saving

• full automation • introduction of energy

saving technologies

LIMITED LABILITY COMPANY TH «SHEPETIVKA SUGAR»

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Key business direction: production of bakery goods and confectionery, customized production of loafs and cakes

In 2013, the bakery began to implement an integrated food quality and safety management system, developed in accordance with the requirements of international quality standards ISO 9001 and food safety standards ISO 22000 (Food Safety Certification 22000)

Products: • breadstuffs • rolls and buns • confectionery • frozen pastry

Founded

in 2001

Geographic location: Krasyliv, Khmelnytskyi region

LIMITED LIABILITY COMPANY «AGROKRAI» (TM «MAMYN KHLIB»)

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CROP SALES PA

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SEEDS, FERTILIZERS AND CROP PROTECTION PRODUCTS

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AGRICULTURAL MACHINERY AND EQUIPMENT

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Geography:

Khmelnytskyi, Chernivtsi and Zhytomyr regions

Strategic direction – dairy farming

Pedigree cattle includes three Ukrainian high-production cattle breeds, one of which is unique and is bred

exclusively in Svarog's livestock complexes

Livestock farms are almost completely supplied by own fodder base

Milk yield per one cow is

19-20

liters per 24 hours

Cattle herd:

12,000 heads

Dairy farms are certified as special raw material resources base for production of baby food

LIVESTOCK FARMING

LIVESTOCK FARMING

2009

2010

2011

2012

2013

2014

ths heads

ths heads

ths heads

ths heads

ths heads

ths heads

2015 ths heads

2016

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LIVESTOCK FARMING

YOUNG CATTLE DAIRY COWS CATTLE FATTENING

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LIVESTOCK FARMING

2008

2009

2010 2011

2012

2013

2014

2015

2016

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2008

2009

2010

2012

2013

2014

2015

Annual milk production yields:

2009

2010

2011 2012

2013

2014

2015

Milk yield per one cow:

2016

2016

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LIVESTOCK PRODUCTS REALIZATION PA

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Geography:

Sokyriany and Khotyn districts of Chernivtsi region

Orchards acreage:

505 ha

Storage of production:

3 modern controlled atmosphere

fruit storages with total capacity of

8,700 tons

Main orchard crops:

apples, pears, stone

fruits, berries

Seedlings: Supplied with

planting material from its own

nursery garden

Production: Juice production line with capacity of

500 l/hour

Total harvest of apples in 2016:

16,200 tons

HORTICULTURE

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January February March April May June July August September October November December

Apple Protection against

mice and hare

Tree pruning

Tying up trees

Side dressing (NPK)

Application of disease

prevention products and pesticide (in

4-7 days) Foliar feeding

Application of growth-regulating

chemical

Application of herbicide in near

wellbore Harvesting of summer

apples Apple sales

Harvesting of autumn and

winter apples

Apple storage

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January February March April May June July August September October November December

Pear

Protection against mice and hare

Tree pruning

Tying up trees

Side dressing (NPK)

Application of disease

prevention products and

pesticide

(in 4-7 days)

Foliar feeding

Application of growth-regulating chemical

Application of herbicide in near wellbore

Pear harvesting

Pear storage

Pear sales

Wheat

Spelt (Dinkel) Wheat

Corn

Buckwheat Pumpkin Seeds

Dark Red Kidney Beans

White Navy Beans

Large White Beans

Soybeans Peas Black Turtle Beans

Merlot Small Red Beans

Flax Seed Baking Multiseed Mixed

Sunflower Seed White Sugar Milk Beef

Apple Juice Concentrate

Apples Pears

Walnuts

Wheat Flour

Spelt Flour

Beet Pulp Pellet

Straw Pellets & Hay Bales

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Wild Chamomile Berry Juice

Concentrate

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Spelt Wheat

Flax Seed Sunflower Seed Buckwheat

Hulless Pumpkin seed

Milk Thistle Fennel Wild Chamomile

Calendula Apple Juice

Concentrate Berry Juice

Concentrate

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LOCAL COMMUNITIES

«Selection» of its own

personnel

Cooperation with higher

educational

establishments

Advanced Training

Programs

Safety of labour

Crop rotation

Safety of production

Organic technologies

Charitable

Foundation

Education

Health care

Culture

Sports, Parasports

Immateriality

Infrastructure

Targeted social

assistance

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INTERACTION WITH LOCAL COMMUNITIES

2006 – 2010 – Social and Public Communications Department.

Social Investments Program «With People and for People».

Total sum of investments into social sphere: USD 2 mln I IstagIe

21 towns 309 villages

Since June 2010 – Strengthening Communities Charitable

Foundation as a mean of interaction with local communities and

social projects implementation.

stage

Total sum of direct investments in 2010-2016:

over *USD 5.4 mln (*at current USD/UAH rate)

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S 1. Use of high-quality fertilizers with low level of carbon footprint to

ensure the quality of plants treatment

2. Tailor made sowing technology for soybeans

3. Own designed and produced in partnership with European Company equipment to fulfill the new technology

4. Chemical analysis of soil for smart use of different chemicals and maintaining high quality of soil

5. Introduction of green energy projects: use of waste from crop farming to produce heat, electricity, organic fertilizers

6. Cultivation of crops with high energy potential

7. Application of organic fertilizers to reduce use of chemicals and increase quality of soil

8. Own developed IT software – Live AG

It is a research company engaged in: • Development and implementation of systems for conventional and organic

farming (cereals, oilseeds, medicinal herbs)

• Organization of seed science, the study of seed production and plant breeding (inlay, calibration)

• Study and application of new and perspective agricultural product varieties

• Creating formulas for seed and crop treatment in order to increase resistance to stressful situations

• Design of integrated eco-chemicals able to influence metabolism in the cells

• Study and implementation of the stubble decomposer (bacteria)

• Product/formulation registration

and patenting for the use in Ukraine and abroad

• One of the projects lies in the continuation of Soviet research on the development of morpho-regulators , which stimulate genes for the development of target organs:

– first results – the increase in wheat yields by 30%

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Research at soybean trial fields • Testing of soybean varieties (foreign selection) for the regions’ conditions • Influence of thousand-seed weight on growth energy, germination and soybean yield • Research on efficiency of applying various mineral fertilizing systems on yield and quality of soybeans • Efficiency of applying various protection systems (fungicides, herbicides, insecticides) on soybeans • Research on efficiency of applying growth regulators on productivity of soybeans • Research on efficiency of applying inoculation (various bacteria) on yield and quality of soybeans • Influence of seeding rate on yield and quality of soybeans • Research on soybeans sowing timing in the regions’ condition • Research on efficiency of applying biostimulators on soybean productivity • Use of mixes of regulators for seed treatment to improve the yield of soybeans

Company carries out own wide scale research to raise the efficiency of production and find the best varieties of seeds that will ensure high quality and rich harvest of crops. Company tests 100 varieties of soybeans and 90 varieties of wheat at specially dedicated land plots

Research at winter wheat trial fields • Testing of winter wheat varieties (foreign selection) for the regions’ conditions • Use of mixes of regulators for seed treatment to raise the yield of winter wheat • Influence of seeding rate on yield and quality of winter wheat • Influence of sowing timing in the regions’ condition

Laboratory research • Influence of seed damaging on sowing indicators • Influence of heterogeneous seeds on sowing indicators • Stillness of seeds during ripening depending on seed varieties • Research of factors that influence seed lifespan and longevity • Research of influence of various chemicals on seed energy and sprouting • Use of mixes of regulators for seed treatment to improve the development of root system

SEED TESTING

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MISSION Improvement of well-being and living standards of every farmer, providing them the opportunity to realize their potential and to preserve Ukrainian land

GOAL The revival of the villages through developing and implementing effective economic models, aimed at the production of high added value products by the small landowners with their further sale at market prices

FNAK indicators

4 regions

22 districts

300 villages

25 000 participants

ACTIVITIES OF FNAK

• Gathering of certain cultures and their primary processing

• Collecting and drying of fruits, vegetables, berries, seeds and mushrooms, etc.

• Production of grain crops on profitable terms • Providing of cooperative members with seeds,

agronomic support and guaranteed purchase of harvest

• Development of livestock and poultry breeding

• Organic certification of lands and products

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Soybeans

Potato

Elderflower Thistle (seeds)

Spelt Wheat

Pumpkin seeds in shell

Pumpkin seeds without shell

White Kidney Bean

White Bean «Bandol»

Walnut kernels

Rosehip

Thistle (grass)

Cabbage

Melissa

White Bean «Bombochka»

Flax Seed

Buckwheat Peas Dark Red Beans

Australian Winter Pea

Birch leaves (dried) Birch Bud

Cattle Eggs Milk products

Apples

Beetroot Carrot Beef Meat

Linden Flower Linden Blossom

Hard cheese

Chicken

Cherry

Pears

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Raspberry Currant Strawberry

Duck Turkey Quail

• «Live AG» assumes:

strict following of crop rotation schemes

reduction of emissions and use of chemicals with new machinery and equipment

individual approach to the each field and application of fertilizers and minerals according to the soil analysis

combining technological operations in the tramline to preserve the structure of the soil and its surface

• «Live AG» has a broad functional that covers all aspects of activities in agricultural company and consists of several main blocks:

chief agronomist’s module

online field condition monitoring

inventories and services tracking system

system for sampling and soil analysis

transport movement control system

fuel consumption control system

Main mission of «Live AG» is on-line agricompany management system in real-time

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• The use of Live AG provided numerous benefits for the Company, simultaneously reducing the effect on the ecology:

Reduction of CO2 emissions

System of precise machinery handling

Increasing the speed of cultivation, which reduces fuel consumption

Fuel control system

Reduction of fuel consumption as a result of monitoring fuel flows between fueling tankers and machinery together with the fuel control sensors installed on machinery/equipment

GPS monitoring and control

Operational dispatch reduces machinery downtime

Reduction of losses in soil fertility

Implementation of innovative technology for soil cultivation

Reduction in quantity of soil cultivation operations saves fuel and partially eliminates losses in soil fertility

Improving the quality of soil using own mineral and organic fertilizers

Developing of new compost production methods (from the livestock mould, chicken manure, waste of crop farming)

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Reduction of fertilizers and chemicals use

System of aerophotography (online field condition control)

Forecasting and preventing plants diseases

Optimal and timely soil and/or foliar fertilizing

Strict definition of germination phases for planning the use of pesticides and fertilizers

Differentiated pesticides application at the critical points of the field

Laboratory analysis (soil, crops, mineral and organic fertilizers)

Saving 10-26% of fertilizers

Application of necessary fertilizers and chemicals based on agrochemical soil characteristics, field relief, and foliar crop diagnosis

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А3Tech activities:

– production of reliable, highly-efficient and functional equipment that perfectly fits for being used in soil-climatic conditions of Ukraine

– high efficiency of agricultural machinery operation combined with its short cost recovery period allows to optimize operation of both large and small farming enterprises

– usefulness, ease of operation, multi-functionality and innovative focus of newly created machinery enables to meet the requirements of both farmers and agriholdings

А3TECH IS YOUNG INNOVATIVE COMPANY THAT DEVELOPS AND PRODUCES UNIQUE CUSTOMIZED AGROMACHINERY BY MEANS OF CUTTING-EDGE

TECHNOLOGICAL SOLUTIONS

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A3 Tech has presented innovative production line of machinery tested at Svarog West Group fields: Prime Twin 3000 seed planter, Fighter cultivator, Hercules deep tiller and Comber spring-type harrow. This machinery enables to seed agricultural crops under the original technology developed by Svarog specialists. This technology allows reducing fuel and CPP consumption up to до 30%, while increasing crop yield up to 23-25% in comparison with traditional one

New unique production line of machinery for strip seeding of soybeans, corn, sugar-beet and sunflower has been developed:

Pneumatic precision drill PRIME TWIN 3000

Deep Tiller HERCULES Spring-tooth harrow COMBER

Inter-row tiller FIGHTER

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WELCOME TO

COOPERATION!

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