ONE OF THE BIGGEST VERTICALLY INTEGRATED POULTRY AGRIBUSINESS AND INVESTMENT PROJECT IN THE EUROPEAN

1
MOSSELPROM

• ONE OF THE BIGGEST VERTICALLY INTEGRATED POULTRY
  AGRIBUSINESS AND INVESTMENT PROJECT IN THE
  EUROPEAN AND RUSSIAN AGRICULTURE
• THE PRODUCTION OUTPUT INCREASED BY 100 IN ONE
  YEAR FROM 15 THOUSAND TONS IN 2004 TO 30
  THOUSAND TONS IN 2005. PRODUCTIVE CAPACITY IN
  2006 45 THOUSAND TONS
• POULTRY BRAND MOSSELPROM HAS BECOME WELL
  RECOGNIZED ON THE MARKET OF HIGH-QUALITY DOMESTIC
  PRODUCTS, ACCESSIBLE SOURCE OF PROTEIN FOR
  CITIZENS OF THE CITY OF MOSCOW AND THE MOSCOW
  REGION

www.mosselprom.ru/engl
2
Mission

• Poultry agribusiness MOSSELPROM is one of the
  largest in Europe and one of the biggest
  investment projects in the Russian agriculture.
• Mission of our poultry agribusiness is
• to DEVELOP the domestic broiler poultry
  industry,
• to PROVIDE the citizens of Moscow and Moscow
  Region with high-quality poultry meat,
• to CREATE the nation-wide trade mark
  MOSSELPROM a symbol of top-quality goods.
• Proceeding from key performance indicators,
  MOSSELPROM establishes itself as a leader not
  only in domestic poultry industry, it also finds
  itself among best poultry plants of Europe. Thus,
  the main integral index of effectiveness EPEF of
  the broiler production has reached 330 points. A
  daily average gain of 55 grams is yet another
  outstanding achievement in the Russian poultry
  industry, corresponding to the best Western
  poultry plants.

3
Structure

• Structurally MOSSELPROM consists of CJSC
  Mosselprom which is aimed at broiler production
  and OJSC Ozherelevsky Feed-Milling Plant. LLC
  Mosselprom Finance is an affiliated company of
  CJSC Mosselprom.
• CJSC Mosselprom is a vertically integrated
  poultry complex which is located in
  Domodedovskiy, Ramenskiy and Kashirsiy Areas of
  Moscow Region and in Uzlovskoi Area of Tula
  Region. MOSSELPROM, which is equipped with the
  latest technological equipment of the recognized
  Dutch and German manufacturers, includes a
  hatchery with an annual capacity of 50 million
  hatching eggs and broiler farms. There are 126
  poultry houses on the territory of the broiler
  farms and a poultry processing plant of an hourly
  production capacity being 6000 birds.
• Ranked as the leading feed milling production
  facility in Moscow Region, OJSC Ozherelevsky
  Feed-Milling Plant manufactures a wide range of
  high-quality commercial mixed feed for poultry,
  cattle and hogs. Beside ensuring the feed
  independence and safety for MOSSELPROM,
  completely supplying its needs, the feed-milling
  plant supplies its products to numerous customers
  of the agricultural market as well. The
  feed-milling plant conducts an active annual
  grain buy campaign using its own grain elevator
  for the storage of wheat, barley, soybean meal
  and other raw materials. The storage of
  raw-material stock enables to keep under control
  the costs not only of the commercial mixed feed
  but meat products of MOSSELPROM for a whole year.

4
Location of Mosselprom

• Mosselproms objects are located along M4 highway
  on the territory of Moscow Region and Tula
• Domodedovskiy district of Moscow region
• 3 broiler farms (12 broiler houses in each)
• Hatchery (50 mln eggs per year)
• 3 parental farms (project)
• Kashirskiy Area of Moscow Region
• Ozherelevsky Feed-Milling Plant (120,000 tons of
  feed)
• Rameskiy district of Moscow region (Konstantinovo
  Poultry Factory)
• 3 broiler farms (12 broiler houses in each)
• 1 farm of remontant cubs (project)
• Tula region (Uzlovskaya Poultry Factory)
• 3 broiler farms (12 broiler houses in each)
• Slaughter House (6000 birds per hour) with fast
  freezing tunnels

5
Financial Outcome

• A new domestic brand MOSSELPROM has been launched
  into the orbit of a highly-competitive market
  within the least possible time. It achieved a 20
  times increase of the monthly production volume
  from 117 tons in December 2003 up to 2450 tonsin
  December 2005.
• The MOSSELPROM brand has become easily
  recognizable on the market. There is a group of
  regular customers, and our poultry products have
  become known as the most qualitative domestic
  poultry. From February 2005 the demand has
  exceeded the production volume.

6
Leadership in Key Production Indicators
MOSSSELPROM strengthened its leadership position
in the domestic poultry industry in 2005.
According to the production figures for weight
gains, feed conversion rate and EPEF, the
poultry agribusiness has reached not only
premier places in Russia but keeps pace with the
worlds leading manufacturers.
For reference daily average weight gain in
domestic poultry plants is 35 45 g., feed
conversion rate 2.2 -2.3 kg, whereas in Europe
it is 53 57 g. and 1.65 1.75 kg. Average EPEF
throughout Europe 225-250. () EPEF integral
index of effectiveness for broiler growing. It is
used to express comparison of results at
different poultry plants.
7
Key Indicators Graphs
8
Technological Superiority

• Poultry Agribusiness Mosselprom is a brand-new
  production. Located in ecologically safe natural
  zones of the Moscow region. The enterprises of
  Mosselprom have implemented the latest know -
  how in making ecologically clean products in line
  with environmental protection.
• Poultry meat of MOSSELPROM and a wide range of
  semi-products, i.e., fillet, rounds, hearts,
  gizzards, liver and more than 20 products are
  vacuum-packed in colorful bags reading the
  company logo.

MOSSELPROM uses the latest high-tech equipment of
a leading Dutch company Stork to produce
high-quality poultry meat. Holland is known to be
an international leader in the production of the
equipment for the poultry industry. The equipment
helps to preserve all the useful properties of
poultry meat, its tender flavor and gives a
remarkable appearance to the whole variety of the
products.
9
Partners

• MOSSELPROM builds mutually beneficial business
  with well-known Russian banks and insurance
  companies which help to create and develop the
  best poultry enterprise of the country.

Vneshtorgbank is one of the leading universal
banks of Russia and the largest one in terms of
authorized capital. 185th on The Banker's Top
1000 Banks of the world. Presently, the
Government of the Russian Federation is the major
shareholder with its share accounting for 99.9
Rosgosstrakh is the largest Russian insurer
offering classic lines of insurance cover in
terms of the size of its corporate network,
assets and revenues. Market surveys show that
Russian citizens regard Rosgosstrakh as the most
reliable insurance partner in the market.
The undisputed leader of the Russian banking
industry with the market shares of 62 in
deposits, 50 in retail lending, 32 in
commercial lending, 29 in aggregate assets of
the Russian banking sector. The largest bank in
Central and Eastern Europe, and 152d on The
Banker's Top 1000 Banks of the world.