The nature of your success

Financial due diligence of a large Russian producer of chicken and pork meat, to support decision making by the Group’s management The key goals of the project included: identifying the key risks inherent within the company’s operations, providing recommendations to reduce risks within potential transaction, analysing the historical performance and financial position of the company, and calculating the key indicators of the company’s financial performance and position required for the potential transaction. After performing the due diligence, we presented a report containing our analysis on the key areas of the review.

Due diligence of a pork producer for Charoen Pokphand Foods PCL We undertook a due diligence investigation of a Russian producer of pork in order to identify the company’s key risks and to analyse its financial position. Following the completion of the financial due diligence exercise, we presented a report noting the key risks identified during the process, recommendations for their mitigation, and analysis of the company’s financial position and historical performance.

Transaction support for a producer and seller of pork and grain in the Russian far eastWe undertook a due diligence exercise of a large Russian producer of pork and grain in the Russian far east as a part of pre-sales preparation. The key goals of the project included: identifying the key risks inherent in the company’s operations, providing recommendations to reduce risks prior to potential transaction, assessing the quality of financial information and the accounting system, preparing consolidated statements for presentation to potential investors, analysing the historical performance and financial position of the company, and calculating the key indicators of the company’s performance and financial position before a potential transaction.

Establishment of IFRS function, including transition to IFRS, at Damate Group The main objective of the project was to transition the business to the independent preparation of IFRS consolidated financial statements from 2013. The project yielded the following results:a) effective transition to IFRS b) preparation of IFRS consolidated financial statements for 2013 within the provision of training

to specialistsc) establishment of a process for preparing IFRS financial statements (from the collection of data

to the issue of statements) and an active IFRS functiond) development of a methodological platform (toolkit) for the future preparation of IFRS

consolidated statements.

Preparation of documentation on transfer pricing rules for an International Grain Company As a part of the project, we undertook functional-risk analysis and benchmarking research with the aim of justifying the level of prices of controlled transactions.

Some projects we have implemented in the agricultural sector

Examination of the use of trademarks in the operations of companies in an international agricultural industry group As a part of the project we explored the existing ownership structure and collection of payments for the use of trademarks. In addition, we prepared a list of companies with the right to use the trademarks, along with justification. We assessed the tax risks associated with license payments and provided recommendations for how to minimise their effects.

Analysis of the counterparty database for a large infrastructure and trade company in Russia, which is also among the top five Russian grain exporters The objectives of the project were to identify potential conflicts of interest and to determine the highest risk counterparties. We also analysed the business interests of minority shareholders and directors of the company as part of the project. Data from approximately 10,000 counterparties and over 3,500 of the company’s employees was analysed. A number of conflicts of interest were discovered as a result of the analysis, which showed the relationships between key employees and suppliers. We also put together a risk profile of counterparties in the database, which highlighted counterparties that might expose the company to potential tax, reputational and other risks. Finally, we discovered entities in which minority shareholders of the company may have business interests unrelated to the operations of the company. This makes it possible to identify potential routes for leaks of insider information to competing organisations.

Feasibility study of the creation of an SSC from the financial function of the largest producer of meat products in Russia, one of the three leaders on the chicken meat, pork and meat processing markets and the largest producer of animal feed in the country As part of the project, we undertook the following work: an analysis of the group’s strategic goals, development of a comprehensive operational model for the SSC in line with the long-term development plans of the company, preparation of a list of services and processes to be transferred to the SSC, calculation of the target personnel numbers for the SSC, preparation of a proposed organisational structure for the SSC, analysis of the optimal location of the SSC, and calculation of the economic effects of implementing the plans for an SSC.Due diligence exercise assessing the assets and liabilities of one of the largest infrastructure and trade companies in Russia, which is also one of the five leading Russian grain exporters As a part of the project, we performed a stocktake of inventories, property, plant and equipment and examined settlements with debtors and creditors. We analysed the company’s contracts for additional financial, tax and legal risks. Following the review, we prepared inventory sheets and presented a report on the outcome of our activities.

Due diligence exercise assessing the inventories of one of the largest poultry farms in Russia As a part of the project, in cooperation with representatives from the investor, we undertook a stocktake of inventories, including finished goods and grain on an elevator. After the review, we prepared inventory sheets and presented a report containing the main findings of the project.

Comparison of the IFRS accounting policies of the largest agricultural holding companies in Russia and Ukraine The objective of the project was to compare IFRS accounting policies, discover the key differences and assess the potential effects of those differences on reported EBITDA and operating profit of the companies.

Development of a strategy for the creation of an agricultural industry cluster in a Russian regionWe carried out the following under the project:a) analysis of the resource potential of the regionb) detailed analysis of the markets for heavily processed grain, milk and meat productsc) development of a target portfolio of productsd) development of a target business model and alternative technology options for project

implementatione) design of a business plan and financial model.

Development of a strategy for entry onto the agricultural products and services markets for a large international group We carried out the following under the project:a) analysis of the grain business in Kazakhstanb) analysis of infrastructure for the storage and transport of grainc) definition of the most effective business modeld) preparation of a list of farmse) more than 50 interviews with farm representativesf) definition of the best strategy for market entry.

Feasibility study for a project to establish a large group for the production of turkey meatWe carried out the following under the project: a) assessment of internal demand for turkey meat in the B2C, B2B and B2G channelsb) analysis of export potentialc) analysis of current supply and potential for the development of national outputd) design of a supply/demand balance modele) analysis of key success factors and competitive advantages of the client company.

Feasibility study of a project for the production of rabbit meat We carried out the following under the project: a) identification of equipment for the potential production of rabbit meatb) due diligence of the rabbit meat market as a whole and by separate productsc) analysis of internal demand for rabbit meatd) analysis of the current supply of rabbit meat on the Russian market and plans of producers to expand capacity/create new capacitye) analysis of factors limiting growth of rabbit meat production in Russia.

Development of a diversification strategy for a spirit manufacturer (advanced processing of grain)We carried out the following under the project: a) review of opportunities to diversify horizontally and verticallyb) selection of most promising areas for diversificationc) detailed analysis of diversification opportunities for each of the promising areasd) analysis of the markets for supporting products formed during the implementation of priority

areas.