Investment Industrial Company «Translogistik», Llc. · Investment Industrial Company...

Investment Industrial Company «Translogistik», Llc.

Approved

Anatoly Svechinskiy

Founder & Director

BP developed 2015 year

BUSINESS PLAN

INVESTMENT PROJECT Construction of a new innovative

«Sugar plant processing capacity of 12 thousand tons of sugar beet and 1,5 thousand tons raw cane sugar per day».

In the territory of regional Industrial park in Novoaleksandrovsk City, North Caucasus Federal District,

Stavropol Region – the Russian Federation.

Business plan developed 2015 year © Copyright Investment Industrial Company «Translogistik», (Llc.)

Construction of a new innovative Sugar Plant in the territory regional Industrial park in Novoaleksandrovsk City, North Caucasus Federal District, Stavropol Region, Russian Federation стр. 2

CONTENTS

page page PRIVACY POLICY

SUMMARY

OPERATIONAL PLAN

This business plan was developed by ALEX & ANNA

with the international standard UNIDO (United Nations

Industrial Development Organization) contains

information describing the financial-economic,

organizational, legal and marketing aspects of the

project.

The information provided in this Business plan is

confidential and is the property of Investment Industrial

Company «Translogistik», Llc.

This document is intended only for persons granted

with the consent of the information owner.

Transfer, copying or disclosure of the information

containing in the Business plan without the written

consent of the owner is prohibited.

DESIGNER & CORPORATE IDENTITY

Description of the project 3 Production & Sales 21

Financial indicators of the project 4 Resources & Energy 22

INITIATOR OF THE PROJECT Cost price 23

General Information 5 MANAGEMENT

Research & Development 6 Organizational structure 24

PRODUCTS Personnel plan 25

Sugar industry of the Russian Federation 7 FINANCIAL PLAN

Commercial products and application area 8 General information – Taxes 26

Technological scheme 9 Investments – Credit 27

Technological process 10 Performance indicators 28

CONJUNCTURAL ANALYSIS

RISK ASSESSMENT

Industry 11 SWOT–analysis 29

STEP-analysis of the market of sugar industries 12 Risk analysis 30

Sugar beet production in the EU 13 Break-Even Analysis 31

Beet sugar production in Russia 14 Expert Conclusion 32

MARKETING & SALES

APPENDIX

Description of the market 15 APP. Scheme of project financing 33

Promotion & Marketing system 16 APP. Debt Service 34

INVESTMENT PLAN

Concept of sugar plant

Cost structure

Suppliers & Contractors

Scheme participants of the project

17

18

19

20

APP. Revenue & Current costs

APP. Accumulated profit

APP. Budget efficiency

APP. Cash flows (chart)

APP. Cash flows APP. Profit – Loss

35

36

37

38

39-54 55-70

APP. Balance 71-86 APP. Raw materials for production 87-88



SUMMARY. DESCRIPTION OF THE PROJECT

PROJECT GOAL: The creation of innovative new enterprises for processing of sugar beet 12 thousand tons of cane raw sugar 1.5 thousand tons a day and generate profit from the produced product is white sugar sand and related products beet sugar production (molasses and dry granulated pulp).

THE PRODUCTION POTENTIAL PRODUCTS CHARACTERISTICS

The process is based year-round production of white sugar from sugar beet processing in The design capacity of the plant allows to produce the finished product:

the period from 15 August to 15 December (123 days) and processing of cane raw sugar from - sugar (GOST R 53396-2009): 433,016 tons per year (1 kg / 50 kg / 1000 kg (big bag));

15 March to 30 July (139 days). - molasses (GOST P 52304-2005, GOST R 54902-2012): 62,168 tons a year;

Repairs on the enterprise will be carried out in the period from 16 December to 14 March - dry pelletized pulp (GOST 13456-82): 66,420 tonnes per year;

and the month of August (103 days). For the production of finished products need: 1,476,000 The sugar industry enjoys the support of the government of the Russian Federation, since

tons of sugar beet and 208,500 tonnes of cane-sugar. sugar is a basic part of human nutrition.

BASIC PARAMETERS:

The sales of white sugar sand and associated products of sugar production (molasses and granulated beet pulp) are defined in the internal market of the Russian Federation.

Construction of a sugar plant in the territory of regional industrial Park in the city of Novoaleksandrovsk, Novoaleksandrovsk District, Stavropol Region, the Russian Federation has

a favorable logistical location within a radius of 70 km near the areas of sowing of sugar beet (Novoalexandrovsky District).

The main suppliers of sugar beet will be the farmers of the Stavropol Region. Importer of raw cane sugar from Brazil will be a Russian subsidiary of the company «Cargill», which,

of course, performs the most stringent requirements in terms of delivery DDP (Incoterms 2010).

The sugar plant will meet all European standards with all the recommendations of the global manufacturers of process equipment and environmental impacts.

Not burdened land 146,300 sq. m. (146.3 Hectares), located in the municipal property of administration of Novoaleksandrovsky of the area, provided transportation routes and

necessary communications: gas, water supply, heat supply, power supply.

For the project: it is necessary to pass the examination (Basic Design, Detail Design), to carry out the construction of buildings and structures, CHP (thermoelectric plant), o make

the purchase of imported technological equipment from global manufacturer TECHNOEXPORT, a.s. (SAFICHEM GROUP) is certified according to international standards DIN EN ISO

9001 and environmental safety ISO 14000, to perform Assembly and commissioning works, to introduce the company in operation.

The investment phase of the project (grace-period) 3.6 years (42 months) – expertise of the project (3 months), delivery of equipment, installation and commissioning (33 months),

personnel training and commissioning of the object and the designed indicators (6 months).

PROJECT COST: 13,040,214,400 ₽ (€ 232,000,000)

The cost of the Export Contract Value (ECV): 11,051,029,000 ₽ (€ 196,610,000) in the form of Bank credit (period of 8 years / 96 months) at 9 % per annum with a grace period of

3.6 years (42 months). Interest payments variable semi-annual installments starting from the first half-year (6 months), the repayment of the principal indebtedness on the loan

equal semi-annual installments starting from the seventh half-year (42 months). Equity (payment of VAT): 1,989,185,400 ₽ (€ 35,390,000)

Economic efficiency of the project is characterized by the following key indicators:

* The payback period – PB will be: 73 months (6,1 year)

* Internal rate of return project IRR (internal rate of return) is 48,58 %, NPV (net present value) – 5,855,527,670 ₽ (€ 99,246,000)



SUMMARY. FINANCIAL INDICATORS OF THE PROJECT

thousand ₽ 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year TOTAL INTEGRAL PARAMETERS

Export Buyer's Credit 3,504,122 3,477,104 4,069,803 11,051,029 discounted rate = rd 20 %

Equity (payment VAT) 630,741 625,879 732,565 1,989,185 payback period – PB (73 mounts) 6,1 year

Revenue (including VAT) ЕРС/ЕРСМ ЕРС/ЕРСМ ЕРС/ЕРСМ 10,328,409 14,754,868 14,754,868 14,754,868 14,754,868 69,347,881 rate of return – ARR 25,10 %

Current Costs 3,504,122 3,477,104 4,069,804 6,834,548 9,763,639 9,763,639 9,763,639 9,763,639 56,940,134 net present value – NPV 5,855,527 thousand ₽

Payment of Interest 39,523 97,923 156,606 944,863 745,944 547,026 348,107 149,189 3,029,181 profitability index – PI 3,73

Payment of the Loan 2,210,206 2,210,206 2,210,206 2,210,206 2,210,206 11,051,030 rate of return – IRR 48,58 %

Cash Balance 591,218 527,956 575,958 338,792 2,035,079 2,233,997 2,432,916 2,631,834 11,367,750 rate of return – MIRR 32,61 %

REVENUE & CURRENT COSTS, ₽ ACCUMULATED PROFIT, ₽ CASH FLOWS, ₽

16 000 000 000

14 000 000 000

12 000 000 000

10 000 000 000

8 000 000 000

6 000 000 000

4 000 000 000

2 000 000 000

-

Investment Phase Starting Point

732 564 720

625 878 720

630 741 960

1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year

10 000 000 000

8 000 000 000

6 000 000 000

4 000 000 000

2 000 000 000

0

-2 000 000 000

-4 000 000 000

-6 000 000 000

-8 000 000 000

-10 000 000 000

-12 000 000 000

Investment Phase

Starting Point PB

7 357 095 773

15 000 000 000

10 000 000 000

5 000 000 000

0

-5 000 000 000

-10 000 000 000

production costs current costs equity revenue

profit before tax net profit cumulative net profit

cash inflow cash outflow free cash

BUDGET EFFICIENCY, ₽ DEBT SERVICE, ₽ VOLUME PRODUCTION

7E+09

6E+09

5E+09

6 509 587 898 12 000 000 000

10 000 000 000

8 000 000 000

11 051 029 000

8 840 823 200

300 000

structure of production, tons per year

255 791

4E+09

3E+09

2E+09

1E+09

6 000 000 000

4 000 000 000

2 000 000 000

0

6 981 226 000

3 504 122 000

6 630 617 400

4 420 411 600

2 210 205 800

0 0

250 000

200 000

150 000

100 000

50 000

177 225

59 040

3 128

66 420

0 -2 000 000 000

-4 000 000 000

1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 0

total amount of tax payments

accumulated balance income/expenditure budgets of all levels

flow of credit payment of the loan

payment of interest outstanding balance



Anatoly Svechinskiy Legal & Actual address:

Tel.: +7 988 094 94 94 (cell phone) 13 Momotov Street, Temizhbekskiy Village

Email: [email protected] Novoaleksandrovskiy District, Stavropol Region, 356018

Russain Federation

INITIATOR OF THE PROJECT. GENERAL INFORMATION

Name:

Type of organization:

Form of organization:

The founder of the company:

CEO, general manager:

The tax authority (TIN):

Current account:

Bank:

Investment Industrial Company «Translogistik» – the company is registered 15.10.2012 years (dislocation of the company in the Russian Federation,

Stavropol Region, North Caucasus Federal District)

The limited liability company (Llc.)

Private

Anatoly Svechinskiy (100 % shares of the Share capital)

Anatoly Svechinskiy, acts on the basis of the Charter

2635815634

40702810156000000253 (₽)

Joint Stock Company ALFA-BANK, in the Branch «Stavropol»

COMPANY – (SPV – special purpose vehicle) LOCATION MAP

On the basis of legislation on investment activity and allocation of production on-site on-

site RIP (Regional Industrial Park) in the city of Novoaleksandrovsk, Novoaleksandrovsk

district, Stavropol Region, Russia.

Management of the company in October 2012 we created a new company, limited liability

company Investment industrial company «Translogistik» – special purpose company SPV

(special purpose vehicle), with a varying set of participants, which acts as a Borrower to the

Bank lender.

The purpose of the company – the investment project: Construction of a new innovative

«Sugar plant processing capacity of 12 thousand tons of sugar beets and 1,5 thousand tons

raw cane sugar per day» with the support of the State Government of the Administration of

the Stavropol Region, Russian Federation.

DIRECTOR & PROJECT MANAGER CONTACT

Novoaleksandrovsk

mailto:[email protected]



INITIATOR OF THE PROJECT. RESEARCH & DEVELOPMENT

A FEATURE OF SUGAR PRODUCTION

In 2017 (I – quarter) Investment Industrial Company «Translogistik» plans to start work on the construction of a sugar plant in the territory of RIP in the city of Novoaleksandrovsk.

In 2020 (I – quarter) planned commissioning of the enterprise (Novoaleksandrovskiy Sugar Plant) in operation. The innovative feature of the new sugar factory with a capacity of 12

thousand tons of beet processing and 1.5 thousand tons of raw cane sugar per day – is a compact arrangement of all production departments, power plants and warehouses.

Activities aimed at improving the stability of sugar production outlined in the document «Development Strategy of food and processing industry of the Russian Federation for the period

till 2020» (approved by order of the Government of the Russian Federation from April 17, 2012 No. 559-p) and the branch target program «Development of sugar beet subcomplex Russia

for the period 2013-2015». Integrated development of the sugar industry with the development of the main directions of agricultural production (development of raw material base –

production of sugar beet) provide for the transition of the sugar industry towards resource-saving technologies that provide waste-free production and with minimal impact on the

environment.

The main systemic problems of the sugar industry and the indicators of its development:

In the framework of the state program of the Russian Federation for the period 2013-2020 it is planned to increase production: sugar beet – up to 42 million tonnes, of sugar from sugar

beet – up to 5.4 million tons. This will require attracting investments from 2013 to 2020 on the development of the sugar industry in the amount 136,7 billion rubles.

By 2020 it is envisaged to increase the share of Russian production (including carryover stocks): sugar – to 96.7 % of the total (the share of sugar produced from sugar beet in total

production will amount to 91.5 %).

Activities aimed at reducing harmful emissions into the environment and the protection of surface and groundwater from pollution, reducing the cost of river and artesian water for

technological needs, are foreseen in the reconstruction, technical modernisation of sugar plants and new construction. The introduction of recycled water systems for wastewater treatment

at the enterprises of the sugar industry would release land occupied by water treatment facilities.

EXPOSURE TO PRODUCTS FROM SUGAR PLANTS ON THE ENVIRONMENT

Despite the fact that the production activity of sugar plants has adverse effects on the environment.

The TECHNOEXPORT, a.s. (SAFICHEM GROUP) offers the most innovative technologies related to the production of sugar and related products sugar production (molasses and granulated

beet pulp), which does not have a dangerous impact on the environment for the reconstruction and construction of new sugar plants.

Industrial premises are characterized by the presence of large and heavy equipment, developed system of pipelines, valves and other communications. The technological process of sugar

production is accompanied by significant heat dissipation and hence optimal temperature and humidity conditions in production areas and provides General exhaust ventilation and local

supply of fresh air to work areas. The processes associated with the release of dust and gas, sealed – apply dust and resolvelocal.

THE MAIN DOCUMENTS REGULATING THE ACTIVITY OF THE ENTERPRISE

The location of production in the first place are governed by Sanitary Rules and Norms (SRN). This document lists the regulations on the minimum distance of hazardous industries from

the line of residential development and other businesses. Standards for design for fire safety of production are collected in «Departmental instructions on fire-fighting design of plants,

buildings and structures of Russian sugar industry».

The company has selected construction site that meets all the necessary requirements for placement of production. The process of construction and design are regulated by the Construction Norms and Rules (SRN). All equipment and storage tanks are certified by the structures of Rosgortehnadzora.



PRODUCTS. SUGAR INDUSTRY OF THE RUSSIAN FEDERATION

Sugar is a unique product necessary for human life, and important strategic raw materials. One of the most traded food commodities in the world market, which is produced and consumed in virtually all countries of the world.

Belgorod Region (9 plants) Location Sugar Plants Braynsk Region (1 plant)

in the Russian Federation by Federal Districts Voronezh Region (9 plants) Kursk Region (9 plants)

Lipetsk Region (6 plants)

Orel Region (4 plants)

Ryazan' Region (1 plant)

Tambov Region (5 plants)

Tula Region (1 plant)

Krasnodar Region (16 plants)

Stavropol Krai (1 plant) Republic of Bashkortostan (4 plants)

Karachay-Cherkess Republic (1 plant) Republic of Mordovia (1 plant)

Chechen Republic (1 plant) Nizhny Novgorod Region (1 plants) Altai Krai (3 plants) Primorsky Krai (1 plant) Penza Region (3 plants) Republic of Tatarstan (3 plants)

The location of the construction of a new Ul'yanovsk Region (1 plant)

Sugar Plant – Investment Industrial Saratov Region (1 plant)

Company «Translogistik», (Llc.)

Novoaleksandrovsk, Stavropol Region



PRODUCTS. COMMODITY HARDWARE PRODUCTS & APPLICATION AREA

SUGAR (main product)

(GOST R 53396-2009) – 1 kg / 50 kg / 1,000 kg (Big bag)

MOLASSES (related products)

(GOST R 52304-2005, GOST R 54902-2012)

PULP DRY, GRANUAL

(related products) (GOST 13456-82)

Sugar - domestic name sucrose. Cane and beet sugar

(sugar) – is an important bulk food product.

Neutral sugar called sucrose, refers to carbohydrates that

are considered valuable nutrients that provide the body with

the necessary energy.

Sugar is an important structural component of the vast

majority of confectionery products and fruit products (the

product obtained by boiling fruit pulp with sugar).

Sugar is a filler mass and provides a texture of dairy

desserts, ice cream, spreads and other products, like fruit,

and fat-based, and also acts as a preservative agent for

various products from fruits and berries - jams, jams, jellies.

Molasses (beet molasses) – is a valuable by-product of

sugar production is used as raw material for ethanol

production, food acids, baker's yeast and forage as well as a

feed additive in livestock.

Is a thick opaque fluid from brown to dark-brown color,

with a smell peculiar to sugar beet molasses, with a sweet

taste with bitter aftertaste, has complete solubility in hot

and cold water. In the production of food and non-food

products without molasses, it is impossible to manufacture a

full-fledged bakery yeast, feed for animals, feed proteins,

ethanol and products of the pharmaceutical industry.

Granular dry pulp – natural feed for farm animals

produced from sugar beet pulp, the method of drying at a

high temperature, ground into flour, followed by granulation

into granules (pellets).

In combination with other feeds dry sugar beet pulp can

replace in cattle diets up to 50 % barley or oats, providing

greater muscle mass gain or milk production.

Dry beet pulp is well digested, not only cattle, but other

species of farm animals.

In pure dry form is not recommended for animal feeding

because of its porosity and moisture absorption, which can

lead to some health problems of livestock.



PRODUCTS. TECHNOLOGICAL SCHEME

SCHEMATIC DIAGRAM OF PRODUCTION OF SUGAR PRODUCTS

Limestone

СаСО3 (burning)

Water

Са (НO2)

СО2

Sulphur

dioxide, SO2

Sugar beet

The supply of beet to the factory

and separation of coarse impurities

Wash beets

Thinning beet chips

Desugarization chips

diffusion method

Cleaning the lime juice and

carbon dioxide

(preliming, defecation,

saturation)

Filtration

Sulfitation

(discoloration)

Thickening juice

evaporation plant

Desugared chips

(pulp)

Filter cake,

fertilizer

Syrup

Finished product

(granulated sugar)

Sugar drying

Massecuite

centrifugation

Crystallization in

vacuum pans

Molasses industrial raw materials



PRODUCTS. TECHNOLOGICAL PROCESS

SUGAR PRODUCTION FROM SUGAR BEET

Sugar beet arrives at the plant on a flow conveyor which can be set to trap for separating light and heavy impurities. With the help of Svetlanas beet is fed into solomono, where it is

washed from land. The washed beets to the Elevator rises to a height of about 20 m to the automatic weights, to continue to move by gravity and thereby reduce the number of conveying

mechanisms. Weighted beets and then grinding into chips is fed to beet slicer.

The resulting chip is sent in a diffusion apparatus in which the release of the sugar from the chips by diffusion. Obtained in a diffusion device the diffusion juice of black color, containing

about 13 % sugar and switched to juice non, entered the clearing.

At first it was treated with lime (milk of lime). The process is called defecation, treatment when a significant portion of nasarov, primarily organic precipitates. Detekovany juice is then

treated with CO2 (saturation gas).

Process CO2 is called carbonation. In the process of carbonation produces calcium carbonate (CaCO3), which adsorbs non and deposited as sediment.

The precipitate was separated by filtration. The filtrate, the so-called saturation of the juice contains about 13 % sugar and has a light yellow color.

Saturation the juice is treated with SO2 (sulpicius) to reduce the chromaticity, and then concentrated in an evaporation plant to obtain a syrup containing about 60 % sugar. From the

syrup in the vacuum apparatus is carried out the crystallization of sugar, getting the magma, a mixture comprising about 50 % of crystal sugar and 50 % sugar solution.

Massecuite is sent to a centrifuge where it was isolated from crystalline sugars and sugar solution obtained ( molasses).

When probelivanii sugar water, a two run-off. The crystalline sugar dried in a dryer to obtain sugar.

To extract the sugar from swelling again boiled in a vacuum apparatus, receiving massecuite II. By separating the massecuite II centrifuge get brown sugar molasses I and II.

II and boiled molasses obtained massecuite III, which is obtained in the separation II brown sugar and molasses.

Brown sugar is dissolved (claire) and subjected to recrystallization in a vacuum apparatus in order to obtain a high quality sugar. Molasses contains approximately 50 % sugar and further

desugarization not exposed, is used as a raw material for the production of alcohol, yeast, citric acid, lactic acid and other food as well as feed for animals.

Byproducts of sugar production is designed chips (pulp) and filtration the precipitate. Desugared in the chips contains 0.3 to 0.5 percent sugar. It is subjected to pressing to the content of

about 20 % solids and used as animal feed. The filtration residue is used as fertilizer.

__ Modern innovative technology of the new plant for the production of sugar sand and related products of sugar industry (molasses and

granulated dry pulp) will be able to offer end customers quality products that meet the relevant standards of the Economic association of

German sugar industry (WVZ), technology process will optimize costs and increase profitability.



CONJUNCTURAL ANALYSIS. INDUSTRY

PLANT FOR THE PRODUCTION OF SUGAR – REFERS TO SUGAR INDUSTRY

The production of sugar is known since ancient times, the birthplace of the sugar — India. In Europe, sugar was known to the Romans. Brown sugar particles prepared from the juice of

sugar cane and imported to Europe from India. Egypt, a province of the Roman Empire, was the intermediary in the trade with India. Later sugar cane appeared in Sicily and in southern

Spain, but with the fall of the Roman Empire, this tradition was lost. In the period from VIII-X centuries, the Arabs invented the refining of sugar.

In 1490 Columbus carried sugarcane from the Canary Islands to Santo Domingo (Haiti) and from this time the culture of

sugar cane in the West Indies and Central America began to develop rapidly. Colonial sugar sand started to cover the total

demand for it in Europe, in which, since the XVI century, there were refineries for purification. Until the XIX century, sugar

has long remained a luxury item.

In 1747 Andreas Margrave published in the memoirs of the Berlin Academy of Sciences his observations about the

possibility to extract the sugar from the roots of beetroots (beta alba) and indicated procedures. The first factory for

extracting sugar from zvekovica belongs to the Margrave's student Franz Carl the sugar beet. After a series of setbacks in the

production of beet sugar, Franz Carl Achard in 1794, addressed to Prussian king Friedrich Wilhelm III with a request for

privileges to fabricate beet sugar, and some benefits. This request was rejected, but in 1799 the government allowed sugar

beet to produce experiences in Berlin when the experiments yielded favorable results, he was given a loan of 50,000 thalers

for the purchase of the estate Cunern in Schleswig, in 1801, Europe was built the first beet-sugar factory. In 1806 Napoleon

issued a decree on land distribution for the cultivation of sokolovici (establishment of factory schools), were given prizes for

maintaining the continental system and independence from English imports.

In 1828 he worked in France 103 of the plant and produce up to 5 million kg of sugar. The event, produced in France, then moved to Germany and other European countries.

The history of sugar in Russia begins around the XI—XII centuries. When sugar was first brought, trying it was only the Prince and his court. Russia's first "sugar house" was opened by

Peter I in the early eighteenth century, raw sugar was imported from abroad. 14 March 1718 on this very day Pyotr Alexeyevich Romanov (Peter the great) issued an edict about beginning of

construction of the first sugar factory on the territory of the Russian state. In 1719 by the Moscow merchant Pavel Westbam built the first sugar factory, the further development of the

Russian sugar industry is indebted to the family of the counts of counts Bobrinsky. In 1897 in Russia were 236 plants, capacity of which amounted to 45 million pounds per year.

The true heyday of the sugar industry in Russia (former USSR) fell in the second half of the twentieth century (since 1960).

Due to the rapid development of the sugar industry in the former USSR for 318 plants processed about 700 tons of beets per day, worked 14 independent plants, plants 12 branches

existed in beet sugar factories. In the period of 90th years, the sugar production and sown area of sugar beet was almost halved.

Since 1999, the Russian sugar industry gradually began to revive. With 2011 rapidly developing the production of sugar beet, increased crops and yields, for the Russian manufacturers of sugar opened up some opportunities for export of finished products.

Source: Wikipedia



CONJUNCTURAL ANALYSIS. STEP-analysis

structure of world sugar production, %

Australia 3 %

Pakistan 3 %

Russia

3 % Mexico

3 %

USA

Other

23 %

China

7 %

Brazil

21 %

EU

India

17 %

4 % Thailand

6 % 10 %

structure of exports of raw sugar, %

Guatemala

3 % Other

Salvador 10 %

3 %

Cuba Brazil

32 % 52 %

Sugar industry of the Russian Federation includes 82 of the plant, of which 62 are processed beet sugar

factory with a total capacity of 275 tons per day. The production capacity of existing sugar factories allow to

process up to 120 days per year sugar beet and up to 180 days raw sugar.

Most sugar plants in Russia (the former USSR), were built since 1960 with the delivery of technological

equipment from the former Czechoslovakia.

In the structure of sugar production by type of raw material most part is beet sugar (about 60 %), from

imported raw materials (raw cane sugar) to be about 40 %.

In the Russian sugar refineries processed a day to 29 million sugar beet (produced 4.2 million tons of sugar),

processed 10 million tons of raw sugar (to produce 9.6 million tons of raw sugar). Related products sugar

industry produces over 1 million tons of molasses, 20 million tons of raw bagasse and up to 450 thousand tons

of dried beet pulp.

The actual capacity utilization of existing sugar factories at the present time does not exceed 50 %.

The annual demand of the Russian Federation in the Sahara is 5.4-5.6 million tonnes.

Resources product observed sugar production in the volume of 3.2-3.3 million tons and imports of raw sugar

in the amount of 2.2-2.3 million tons. The main consumer of sugar in Russia is the population (about 60 %),

enterprises of food industry (about 30 %), HoReCa (about 10 %).

Source: rossahar

WORLD MARKET SUGAR INDUSTRY

Food industry is one of the most sustainable industries with market changes in the market, as the demand for

products of this sector has the constancy and stability. There are dozens of highly profitable food production and one of them is the production of sugar.

Sugar plants are the largest in the food industry, consumers of drinking water (1 tonne to account for 10.5

m3 of wastewater). The five «sugar powers» producers of sugar are Brazil, India, EU, China, Thailand accounted for 61 % of world

production. The main exporter of raw sugar, Brazil (52 %), the second largest exporter Cuba (32 %), small

amounts of raw sugar (3 %) purchased from El Salvador and Guatemala. Russia actively buys raw sugar for the

countries of Latin America. At 31 March 2015, trading session on the new York commodity exchange ICE the may contact for raw sugar, a

decrease of 14 points from the previous session, closed at the level of 11.99 cents/lb (US$ 264 for ton / CBR set

the rate of the US dollar in the amount of 58,4643 ₽). On the world market continues to have a surplus (excess of exports over imports) of raw sugar.



CONJUNCTURAL ANALYSIS. SUGAR BEET PRODUCTION IN THE EU

6 %

7 %

8 %

12 %

structure of sugar production in the EU, %

3 % 3 %

5 %

30 %

26 %

France

Germany

Poland

UK

Holland

Belgium

Italy

Spain

Austria

Beet growing areas

Sugar plants in EU countries

Plants in the EU for the production of bioetalona

However, the sugar industry retains an important economic value – as a partner for numerous small

businesses in the EU. In total, taking into account direct and indirect employment, the sugar industry brings

together approximately 180,000 employees. Today, about 80 % of sugar production is concentrated in 9 major

countries of the 28 member States of the European Union.

Sugar beets – is one of the key raw materials for bioethanol production in the EU.

In 2008, about 1,35 billion liters of bioethanol were produced from sugar beet, half of which was used as

fuel, and half in traditional purposes (in the manufacture of beverages, chemical and pharmaceutical industries).

Currently in the EU there are 21 plants for the production of bioethanol, located in France, Germany, the

Czech Republic, Austria, Belgium, the Netherlands, Poland and the UK.

Source: CIBE, CEFS & European Commission

Sugar beet production in the EU is based on a market organisation, known as the common market

organization of the sugar industry. Common organization of the markets (Common Market Organization) exist

for 26 products or groups of products and cover 90 % of the total agricultural production. General organization,

as guaranteed common prices are the main mechanisms of the Common Agrarian Policy of EU (CAP EU).

In 2006 the General organization of the sugar market was completely reformed, leading to a significant

reduction of sugar production within the EU. The goal is to leave the industry only those producers who are able

to withstand international competition and without the current government subsidies. The rules governing

European sugar industry, has not changed since the 60-ies. Due to high state subsidies and guaranteed

purchase prices of domestic sugar prices in the EU are about three times higher than world.

The goal of the reform was to reduce by 36 % the purchase price of sugar. This change in policy ensured a

more easy and profitable entry to the EU markets for developing economies.

Before the reform, more than 300,000 farmers in the EU grew sugar beet on average size farm of about 7 Hectares. Today, around 170,000 farmers grow sugar beet on average size farm of about 9 Hectares.

After the reform was fully discontinued production of sugar beet in 5 EU countries: Bulgaria, Ireland, Latvia,

Portugal and Slovenia.

In the period from 2000 to 2008 was closed 130 plants and decreased the number of employees in this

sector, the fall in this indicator was 69 %. 236 from the existing plants at the moment in the EU works 106.

The restructuring process has been radical.



SUGAR PRODUCTION IN THE STAVROPOL REGION

Agriculture in Stavropol region is the main economic sector and one of the most technologically complex

and capital-intensive industries in which the region annually achieve impressive results. Novoaleksandrovskaya

district – the country's largest producer of agricultural products.

Since 1954, the cultivation of sugar beet and sugar production is the priority direction of development of the

Agroindustrial complex (AIC) in Stavropol region in Russia.

Quality indicators of harvest of beet in the region, as well as in Russia as a whole, above the national average

weight of beet root culture reaches 338 grams, and tops - 456 grams.

The average sugar content of sugar beet in the regions of Russia is 12.6 %. In the farms of the Lipetsk region,

Stavropol and Krasnodar regions the sugar content is higher than the average.

High grown sugar beet (19,95 %) determined the optimal yield of sugar – 17,33 % .

In the Stavropol region – sown approximately 2.0 million tons of sugar beet, share of novoalexandrovsky

district accounted for 45 %. In 2011, Novoaleksandrovsk District had a record harvest of around 1.0 million

tonnes of sugar beet. In 2014, it was planted with 10.6 thousand ha, the gross harvest amounted to 617,8

thousand tons. In 2015, large farmers planted 13.5 thousand hectares.

The construction of a new sugar plant producer’s sugar beet: Joint Stock Company «Urozhaynoe», Agrofirma

«Razdolny» are planning to increase the area of sowing of sugar beet from 13.5 thousand hectares to 18.0

thousand hectares and the gross harvest of 1.0 million tons to 1.5 million tons.

CONJUNCTURAL ANALYSIS. BEET SUGAR PRODUCTION IN RUSSIA

structure of regions of Russia

on areas under sugar beet, thousand/ha

160,0

140,0

120,0

100,0

80,0

60,0

40,0

20,0

0,0

146,4

100,5

85,5 80,8 80,5

68,1

55,1

48,3 46,2 45,1

147,5

5 000

4 500

4 000

3 500

3 000

2 500

2 000

1 500

1 000

500

0

structure of production capacity of sugar plants in the North

Caucasus Federal District, tons per day

4 700

3 750

1 300

Izobilnensky Sugar Plant Karachaevo-Circassian

Sugar Plant

Sugar Plant of the Chechen

Source: saharonline

In the Stavropol Region, the existing capacity Izobilnensky Sugar Plant is not able to accept for processing,

grown in the region of sugar beet in full, the plant is able to process up to 600 thousand tons of sugar beet per

season, the rest of the harvest is exported to the neighboring region – Krasnodar Region, the factories of which

give certain limits to the reception of sugar beet and often understate the price, it not only slows down the

process of harvesting sugar beet, but also reduces the profitability of agricultural producers of the district.

On the territory of the North Caucasus Federal District there are three sugar plants: Izobilnensky Sugar Plant

(Stavropol Region that is owned by the Russian food Prodimex Group), Karachaevo-Circassian Sugar Plant

(Karachay-Cherkess Republic, the owners of which is the largest national agricultural holding Razgulay), Sugar

Plant of the Chechen (Chechen Republic, which is owned by the Ministry of Agriculture).



Average prices of agricultural producers for sugar beet in 2014 amounted to 1,599 ₽ /t, that is 20.8 % higher

than in March 2013 and 10.8 % higher than in March 2012.

Average wholesale prices for beet sugar in Russia in 2014 amounted to 21.5 ₽ /kg., which is 0.8 % more than

in 2013. Retail sugar prices in 2014, virtually unchanged, the average price stood at 32.6 ₽ /kg.

Price of dry granulated beet pulp in 2014 averaged from 4,500 to 6,300 ₽ per ton depending on region. Sugar

beet pulp is especially popular in the feeding of cattle (cattle) in the regions, where many large sugar refineries:

Krasnodar Region, Voronezh Region, Lipetsk Region, Smolensk Region, Tambov Region, the Belgorod Region,

the Republic of Tatarstan and Penza Region.

In Russia the largest producers of sugar: Prodimex Group, Razgulay Group, Ros AGRO, Group Company’s

Dominant, and Sucden. The Government of the Russian Federation – the launch of several canned sugar

processing factories and build new sugar mills, thus, it is expected to solve the problem of power shortage

faced by the Russian sugar market.

MARKET SUGAR INDUSTRY IN RUSSIA

In the world the main indicator of the quality of white sugar are units of chroma or optical density (ICUMSA

units). The lower the chroma value, the more clean and white sugar. Ordinary white sugar in the EU is produced

with the index of 45 ICUMSA, refined 22,5 ICUMSA, Brazil ICUMSA 100 and 150. In Russia and CIS countries, quality requirements of sugar-sand regulates GOST 21-94, and to the sugar-

refined sugar GOST 22-94. And GOST 21-94 white sugar regulates the color in ICUMSA 104, and GOST 22-94

for refined sugar chromaticity does not regulate at all. A significant part of the Russian sugar factories not able

to produce the sugar is completely appropriate «softer» standard GOST 21-94. The only plant in Russia that

produces sugar color ICUMSA 25 – Dobrinsky Sugar Plant, plant can not cover the needs of the entire B2B

sector. Sugar mills are located in close proximity to raw materials, to the places of growing of sugar beet.

In Russia the regions are Central, southern, Volga, North Caucasian and Siberian Federal District in other

regions production is only possible on imported foreign raw materials (raw sugar). Currently in the structure of

sugar production in the Central Federal District (CFD), on the second place on volumes of production is the

Southern Federal District (SFD), in third place Volga Federal District (VFD).

MARKETING & SALES. DESCRIPTION OF THE MARKET

structure of sugar production by Federal Districts in Russia, % North Caucasus

Far East Siberian Ural 4 % Crimean

Volga

17 %

1 %

Northwest

0 %

4 % 0 % 0 %

South

19 %

Central

55 %

structure of the largest manufacturers of sugar in Russia, %

Prodimex Group

23 %

Other

39 %

Ros AGRO

11 %

Razgulay Group

12 %

Sucden

5 %

Group Company’s

Dominant

10 %

Source: Rosstat



MARKETING & SALES. PROMOTION & MARKETING SYSTEM

MARKETING SYSTEM & MAIN CUSTOMERS OF SUGAR PRODUCTS

Investment Industrial Company «Translogistik» is the region's plans to build a sugar factory with the use of new technologies, using the world experience. The concept in the organization

of acceptance of the sugar beet at the factory will consist in to make stocks of root vegetables (sugar beet). Sugar beets for processing at the plant will be supplied daily.

Delivery schedule will be agreed in advance with the beet-growing farms of the region. Control the supply of sugar beet to the factory will be carried out by own fleet of vehicles with the navigation and computer systems. The minimum amount of raw materials, bring to recycling as much as you want for one day.

Karachaevo-Circassian Sugar Plant

Power: 3,750 tons per day

Stavropol Region

Izobilnensky Sugar Plant


Sugar Plant of the Chechen


Karachaevo-Circassian Rebuplic

Kabardino-Balkar Republic

Republic North Ossetia Alania

The subjects of the North Caucasian Federal District

Russian Federation

Chechen Republic

Republic Ingushetia

Republic Dagestan

Marketing distribution system the company aims to establish direct and long-term agreements with Buyers.

Among the company's customers are large confectionary associations, small-scale enterprises and private entrepreneurs. Wholesale shipment of sugar from factory will be performed at

any favorable for the buyer basis. A well-established logistics scheme will enable the company to deliver sugar in the system «just in time», using railway and road transport.

Supply of raw materials – sugar beet to the factory will be supplied from local farmers (payment Bank transfer), delivery of raw cane sugar from Brazil would be assured through long-

term contracts with the Russian branch of Cargill (on DDP terms, frequency of delivery 30-45 days), the payment will be used: SBLC (Standby Letter of Credit), ARDLC (Auto Revolving Document Letter of Credit) served in company the Bank the creditor.

The construction of a new Sugar Plant

IIC Translogistik, (Llc.)

Capacity: 12,000 tons per day

Novoaleksandrovskiy Sugar Plant will be the largest Russian enterprise for the

production of white sugar with a design processing capacity of 12 thousand tons of sugar

beets or 1.5 tonnes of raw sugar per day.

The new plant will significantly increase sugar production in the region and to solve

the problem of shortage of capacities on processing of beet for local farmers.

With the release of the sugar plant at full capacity processing will grow by almost 1.5

times and the share of the Stavropol Region in the Russian sugar production will increase

by 4 %. The sugar refinery's capacity will allow to produce and sell in the B2B sector

sugar (with a chroma of not more than 20 ICUMSA), packed in polypropylene bags of 50

kg and 1,000 kg (big bags).

Along with the great packaging, the company will, to offer sugar in retail package in

packages of 1 kg of polypropylene and various types of paper under our own brand

«Sugar South». Additionally, the company will implement related products beet sugar

production (molasses and dry granulated pulp) in the domestic market of the Russian

Federation.

The production of finished products new Sugar Plant will meet all the parameters and

internal company quality standards sugar used major consumers: Coca-Cola, PepsiCo,

Mars, Nestle, Kraft Foods, Danone, Heineken, Wimm-bill-Dann, SladCo, brand: «Uslad».



INVESTMENT PLAN. CONCEPT OF SUGAR PLANT

A feature of the sugar plant with a capacity of 12 thousand tons of beet processing and 1,5

thousand tons of raw sugar per day is a compact placement of all production departments.

Conceptual design Dankov sugar plant involves the specification of the necessary facilities for receiving, processing, storage and dispatch of raw materials and products, firefighting

equipment, maintenance of facilities, construction of laboratory and administrative blocks, engineering structures, water supply and Sewerage, pumping stations, transmission lines and

electric substations, wastewater treatment systems, access roads, etc.

The General plan of the plant was developed with all the bindings to the land. Areas located along the railway tracks and mot or road (P-147).

Engineering-geological surveys indicate favorable conditions for industrial building sugar factory. On the territory of regional Industrial Park Novoaleksandrovsk is planned to build

pipelines high-pressure natural gas, sewer.

Created a high-tech enterprise will specialize in the production of sugar from sugar beets and raw cane sugar.

Training of personnel and commissioning of a sugar factory is planned for the beginning (I – quarter) 2020.

An important component of effective works of a sugar factory and reduce the cost of

production is the core of its energy – CHP (thermoelectric plant), which carries out a

combined generation of electricity and steam.

Integrated energy centre, formed by two boilers and two steam turbines that provides

electricity and process steam sugar plants.

The construction of new sugar plants on Greenfield project – from scratch

The construction of a sugar plant Greenfield project includes several different phases

of project planning, design and engineering services that precede the manufacture of

equipment and construction.

With the Czech company ALTI Trade s.r.o. terms of reference approved and carried out

pre-design works for engineering and design (FEED).

This process was carried out at an early stage, to obtain material and energy balances

(MEB), to be the technological diagram (PFD) and utility flow diagram (UFD).

This allowed to accurately determine the volumes of energy and consumption of sugar

plant (steam, electricity, water, air, sewage), to determine the parameters of the

individual equipment, to calculate the energy and construction loads, to prepare

drawings and engineering models, to optimize the pipeline system automation and

control of the sugar plants.



r

The need for capital 5,490,229,000 ₽ determined from the need to cover operating expenses in the

investment phase of the project (grace-period), as well as the normalized difference between current assets and

current liabilities, taking into account:

the extent of additional costs in the investment phase of the project;

settlements with tax offices and staff at the project investment stage;

payment of suppliers ' accounts in the investment phase of the project;

payment of interest on the investment phase of the project;

current reserve funds in the investment phase of the project;

INVESTMENT PLAN. COST STRUCTURE

STRUCTURE OF CAPITAL EXPENDITURES, ₽

External

Landscaping and Other expenses

Project work, engineering

networks

3 %

Purchase of raw

materials

12 %

gardening

1 %

and costs,

supervision

6 %

Imported

production

equipment

50 %

project expertise

3 %

Construction and

installation work

25 %

cost structure, %

structure of supplies, %

TECHNOEXPORT,

a.s. (Czech

Republic)

50,3 %

ALTI Trade s.r.o.

(Czech Republic)

49,7 %

COST EXPORT CONTRACT VALUE CONSTITUTE: 196,610,000 EUR of which:

The share of supplies and services Czech company ALTI Trade s.r.o. (owner MP INVEST, a.s.) (EPC/EPCM-

Contractor) will be: € 91,164,000 (49,7 %)

The share of supplies and services imported technological equipment Czech company TECHNOEXPORT,

a.s. (SAFICHEM GROUP) (manufacturer of equipment) will be: € 105,446,000 (50,3 %)

NAME OF THE WORKS 1 YEAR 2 YEAR 3 YEAR TOTAL

Design and estimate work, Expertise of DED 366,110 366,110

Construction and installation work 757,025 1,009,367 1,009,367 2,775,760

Imported production equipment 1,665,000 1,665,000 2,230,800 5,560,800

Purchase of raw materials 362,727 483,636 483,636 1,330,000

External engineering networks 85,623 114,164 114,164 313,950

Landscaping and gardening 56,800 26,900 83,700

Other expenses and costs, supervision 210,836 204,936 204,936 620,709

TOTAL, thousand ₽ 3,504,122 3,477,104 4,069,804 11,051,029

Share, % 31,7 31,5 36,8 100



ЕРС/ЕРСМ-CONTRACTOR MANUFACTURER & SUPPLIER O

ALTI Trade s.r.o. (owner MP INVEST, a.s.) TECHNOEXPORT, a.

Masná 1850/4 Třebohostická 3069/1

702 00 Ostrava 100 31 Praha 10

Czech Republic Czech Republic

Tel: +420 597 493 140 Tel: +420 261 305 1

Fax: +420 597 493 146 Fax.: +420 261 305 2

E-mail: [email protected] E-mail: info@technoexport

www.mpinvest.cz www.technoexport.

CONTACT CONTACT

Jiri Drozdek, Ing. Ing. Vladimír Placá

Founder & Director Commercial Director (sugar &

Tel: +420 777 919 842 (cell phone) Тел.: +420 602 248 050 (ce

E-mail: [email protected] E-mail: vladimir.placak@tech

F EQUIPMENT

s.

4

11

78

.cz

cz

k

breweries)

ll phone)

noexport.cz

INVESTMENT PLAN. SUPPLIERS & CONTRACTORS

BASIC FUNCTIONS BASIC FUNCTIONS

The choice of EPC/EPCM-Contractor carried out on the basis of practical experience of The company performs design, supply, installation and commissioning, using high-tech

the Czech company on the territory of CIS countries for the implementation of construction

and industrial projects.

equipment.

Czech company executes the investment project and accepts the risks of project The supply of equipment for 18 months on terms CIP (Carriage and Insurance Paid to).

management, from planning and until the delivery of ready object to the Customer – Parity at delivery (CIP): Novoaleksandrovsk City, North Caucasus Federal District,

Stavropol

Investment Industrial Company «Translogistik» (including the warranty).

EPC – (engineering, procurement, construction);

EPCM – (engineering, procurement, construction, management);

Region, Russian Federation, according to «INCOTERMS-2010», under which the SELLER

(TECHNOEXPORT, a.s. (SAFICHEM GROUP)) is obliged to supply all new materials and

equipment within scope of supply.

Installation and commissioning within 12 months.


http://www.mpinvest.cz/




INVESTMENT PLAN. SCHEME PARTICIPANTS OF THE PROJECT

ORGANIZATIONAL CHART OF THE RELATIONSHIP OF PROJECT PARTICIPANTS

With all suppliers and subcontractors connected

conducted pre-contract negotiations and reached agreement on cooperation and signing of the contract,

the total amount of the contract (PROJECT CONTRACT): 232,000,000 EUR

Foreign Bank

Bank Lender

Financing Bank

ALTI Trade s.r.o.

EPC/EPCM Contractor

(Exporter)

ALTI Trade s.r.o.

Overall project supervision

Supervisor (Exporter)

The EPC/EPCM Contractor within the commercial contract

performs: management of engineering, supply, construction.

Provides financing Bank documents: - form KS-2 (the act of executed works);

- form KS-3 (invoice on cost of the executed works and expenses);

- form KS-29 (report on the consumption of materials in construction);

Russian or Foreign

Company

Contractor and Co- investor

(Importer or Exporter)

ZVU STROJÍRNY, a.s.

EKOL, spol. s r.o.

Manufacturer of the equipment,

Installation works (Exporter)

Russian or Foreign Company

Co- investor

in SPV – project company

TECHNOEXPORT, a.s.

(SAFICHEM GROUP

AG)

Equipment supplies

(Exporter) IIC Translogistik

Temizhbekskiy, Russia

SPV – project company (Borrower)

Buyer – Investor (Importer)

M-ProEnergo

Designer

(Importer)



RELATED PRODUCTS Quantity Price (VAT) Revenue (VAT)

tons per year ₽ / tons ₽ / year

Annual revenues will be: 14,754,868,455 ₽, of which 96 % will be achieved at the expense of sugar, which

are most in demand and related products beet sugar production 2 % molasses and 2 % of dry granulated pulp.

OPERATIONAL PLAN. PRODUCTION & SALES

molasses

(from raw sugar)

1 %

granulated dry pulp

12 %

structure of production, %

molasses

(from sugar beet)

10 %

sugar

(from sugar beets) 45 %

sugar

(from raw sugar)

32 %

molasses

(from sugar beet)

2 %

sugar

(from raw sugar)

39 %

revenue structure, %

molasses

(from raw sugar)

0 %

granulated dry pulp

2 %

sugar

(from sugar beets)

57 %

The production of sugar and related products sugar production (molasses and dry granulated pulp) is

scheduled to start production of pilot batches in the process commissioning of the main technological

equipment. Experience of manufacturer of process equipment shows that the output at 100 % design

technological capacity is achieved within 6 months after commissioning of the sugar plants.

Given the need for integrated debugging of the whole technological chain of production, logistics and sales

channels of finished products provides that, in the first year, starting 4 years after the commissioning of the

sugar plant, the level of production and sales will account for 70 % of the design parameters.

To ensure smooth download and smooth out seasonal fluctuations in the demand plans through the use of

long-term contracts for the supply of raw materials (sugar beet and raw cane sugar) and various means of

modern high-tech enterprise, allowing flexibility to respond to changing market conditions in the Russian

Federation.

MAIN PRODUCTS Quantity Price (VAT) Revenue (VAT)

tons per year ₽ / tons ₽ / year

Sugar (from sugar beets) 255,791 32,600 8,338,780,080

Sugar (from raw sugar) 177,225 32,600 5,777,532,000

TOTAL 433,016 14,116,315,080

Molasses (GOST R 52304-2005, from sugar beet) 59,040 5,250 309,960,000

Molasses (GOST R 54902-2012, from raw sugar) 3,128 5,250 16,419,375

TOTAL 62,168 326,379,375

Granulated dry pulp (GOST 13456-82) 66,420 4,700 312,174,000



OPERATIONAL PLAN. RESOURCES & ENERGY

The cost of energy to the implementation of the annual production program:

ENERGY Unit of

measure Consumption units / year

Price (VAT) ₽ / unit

Price (VAT) ₽ / year

Electricity from the power grid kWh 8,000,000 1,99 15,920,000

Electricity from its own CHP kWh 66,228,000 0,67 44,372,760

Heating from its own CHP Gcal/sq. m 530 1,153.11 611,148

Water supply cubic meters 4,651,500 24,33 113,170,995

Gas supply cubic meters 550,000 5,451 2,998,050,000

TOTAL, ₽ 3,172,124,903

The project envisages 100 % prepayment for energy, raw materials and additional costs (including VAT):

RAW MATERIALS Quantity

tons / year

Price (VAT) ₽ / tons

Price (VAT) ₽ / year

Sugar beet (GOST R 52647-2006) 1,476,000 1,599 2,360,124,000

Raw sugar (GOST R 52305-2005) - US$ 264 208,500 15,434 3,218,108,929

Limestone Technology (fraction 50-100) 113,600 1,040 118,144,000

Coking coal (GOST 4761-91) 166,500 4,400 732,600,000

NOTE: exchange rate US$ to ₽ CBR 31.05.15 – 58,4643 ₽ TOTAL, ₽ 6,428,976,929

For the life of the enterprise requires additional annual costs:

ADDITIONAL COSTS Price (VAT) Price (VAT) ₽ / month ₽ / year

Communication services (Utel is a universal carrier) 50,000 600,000

It-service 150,000 1,800,000

Administrative costs 800,000 9,600,000

Household expenses 475,000 5,700,000

Transport costs 437,500 5,250,000

The cost of advertising and marketing 225,000 2,700,000

Costs associated with the production and sale of products 3,147,500 37,770,000

TOTAL, ₽ 63,420,000

DECODING ADDITIONAL COST

Communication services (Utel is a universal carrier) and

according to the tariffs of telecommunications companies.

It-service – maintenance of engineering networks – system (fire

alarm systems), video surveillance, conditioning and monitoring

systems and access control, air-conditioning. Technical testing

and insurance in the respective organizations of Rostechnadzor.

Administrative costs – the cost of the annual meeting, the

remuneration to Directors entertainment expenses, property

insurance, repairs, security, utilities, legal and audit services.

Household expenses – household materials (trash bags, toilet

paper, brushes, cloth, Mops, gloves), uniforms for the staff and

technicians, the costs of unilateral plastic containers for

packaging of sugar sand (1 kg, 50 kg, 1000 kg (big bags)).

Transport costs – for the delivery of household materials, fuels

and lubricants (fuels and lubricants), the carriage of goods (raw

materials), freight, passing inspections fleet companies, delivery

of employees to the company.

The cost of advertising and marketing – positioning of the

company for the production and sale of hardware products will

be achieved through conducting public relation aims to develop

the local market.

Costs associated with the production and sale of products –

costs of maintenance and operation, repair and maintenance of

fixed assets and property, expenditure on compulsory insurance,

the costs associated with the manufacture (production), storage

products.



OPERATIONAL PLAN. COST PRICE

Costs associated

with the production

and sale of products

0 %

Transport costs

0 %

Gas supply

29 %

Loss of production

7 %

Salary of production

personnel

1 %

Raw materials

(sugar beet and raw

sugar)

54 %

Salaries of

administrative staff

51 %

Communication

services (Utel is a

universal carrier)

1 %

It-service

4 %

Administrative

costs

23 %

CALCULATE COST ELEMENTS

Water supply

1 %

Heating from СHP

0 %

Electricity from CHP

0 %

Electricity from

the power grid

0 %

Materials (coking

coal and limestone)

8 %

structure of direct costs, %

structure of indirect costs, %

The cost of

advertising and

marketing

7 %

Household

expenses

14 %

MAIN PRODUCTS Cost price, ₽ price per ton

Cost price, % from selling prices

Sugar (GOST R 53396-2009) 21,899 67,2 %

RELATED PRODUCTS Cost price, ₽ price per ton

Cost price, % from selling prices

Molasses (GOST R 52304-2005, GOST 54902-2012) 3,527 67,2 %

Granulated dry pulp (GOST 13456-82) 3,157 67,2 %

Total revenue for the period during production period 5 years (60 months) of operation Dankov Sugar

Plant for the period of the credit relationship will be: 69,347,881,744 ₽

during production period 5 years (60 months)

operation of sugar plant producing sugar and

related products sugar production (molasses

and dry granulated pulp)

The cost of raw materials will be:

30,216,191,570 ₽ (43,6 % from total revenue).

The cost of wages, along with deductions to

social funds will be: 465,852,156 ₽

(0,7 % from total revenue).

Energy costs: electricity, heat supply, water

supply, gas supply will be: 14,908,987,048 ₽


General running costs, including the cost of

ensuring the viability of the company will be:

direct costs 46,385,971,784 ₽

(66,9 % from total revenue);

indirect costs 227,840,640

₽ (0,3 % from total

revenue);

The annual loss in production would amount

to total amount: 694,972,406 ₽




MANAGEMENT. ORGANIZATIONAL STRUCTURE

The production cycle of modern high-tech sugar processing plant sugar beets and raw cane sugar and the production of finished products sugar and related products sugar production

(molasses and dry granulated pulp) includes: clock work with a duration of 24 hours a day (6,288 hours per year).

The main production of 262 working days per year (repairs will be: 103 days).

Director General – 1 persona

Chief Engineer – 1 persona

Deputy Chief Engineer

for Operation – 1 per.

Shift Supervisor – 3 per.

Working production – 24 per.

SI – 24 persons

Deputy Director on General

issues – 1 persona

Transport Department – 12 per.

Central

Deputy Director for Economics and

Finance – 1 persona

EPD – 12 per. Economist for

labor – 1 per.

Chief

Accountant – 1 per.

Engineer ecologist – 1 per.

depot – 24 per.

Medical station – 3 per.

Accounts

(expenditure) – 3 per.

Accounting

(general) – 3 per.

Secretary

Reception – 1 per.

Deputy Chief Engineer

of repair – 1 per. Canteen – 7 per.

AD – 9 per.

Personnel Department – 1 per.

Workshop for the repair

of buildings and

structures – 24 per.

Repair of power shop – 12 per. Chancellery – 8 per.

Plant for the production and sale of sugar and related products sugar production (molasses and dry granulated pulp) will serve 305 people, with

monthly charges in the wage bill (the wage Fund) will be: 6,310,000 ₽

Chief technologist – 1 per.

Sugar plant

item – 12 per.

Jurist – 2 per.

Electrical workshop – 6 per.

Laboratory – 3 per.

Capital structure Division – 3 per.

CHP – 72 per.

Engineer Labor Division,

Security Technology – 3 per.

Chief process

engineer – 3 per.

Mechanical

workshops – 12 per.

Security

Department – 8 per.

Chief of Staff of the CD &

Emergencies – 1 per.



MANAGEMENT. PERSONNEL PLAN

е

To ensure high quality of hardware products special attention was paid to

training the company's system of enterprise management in accordance with

Russian and international standards.

The implementation of this investment project will create additional new jobs

at the enterprise with high technical level for processing sugar beet and raw

sugar cane for the production and sale of sugar and related products sugar

production (molasses and dry granulated pulp).

Management body in the period of project implementation staffed from among

the managers of the company. Minimization of time of debugging of technological

processes is planned by highly qualified specialists of the Czech company ALTI

Trade s.r.o. (EPC/EPCM-Contractor) and Czech company TECHNOEXPORT, a.s.

(SAFICHEM GROUP AG) (Equipment supplier).

Production personnel training will be conducted by specialists (manufacturer of

process equipment) and is a mandatory criterion for performance of the contract

(ECV – Export Contract Value).

To staff the company's staff plans to invite the relevant experts. Problems with

the hiring of other personnel (workers, engineers and technical workers), taking

into account the situation of the labor market in Russia, the Stavropol Region is

not expected.

Average monthly salary in the company for the time worked, compensation

payments related to working conditions and regime of work, bonuses and

allowances, bonuses, lump sum incentive payments that have a systematic

character will be: 20,689 ₽

TOTAL 305 6,310,000

THE UNIT OF ENTERPRISE MANAGEMENT Number of person Salary ₽ / month wage Fund, ₽ Director General 1 70,000 70,000

Chief Engineer 1 40,000 40,000

Deputy Director on General issues 1 55,000 55,000

Deputy Director for Economics and Finance 1 50,000 50,000

Economic Planning Department (EPD) 12 35,000 420,000

Economist for labor 1 30,000 30,000

Secretary Reception 1 20,000 20,000

Personnel Department 1 15,000 15,000

Jurist 2 18,000 36,000

Chancellery 8 15,000 120,000

Chief of Staff of the Civil Defense & Emergencies 1 45,000 45,000

Security Department 8 25,000 200,000

Chief Accountant 1 55,000 55,000

Accounts (expenditure & general) 6 35,000 210,000

PRODUCTION PERSONNEL Deputy Chief Engineer for Operation 1 30,000 30,000

Laboratory 3 18,000 54,000

Shift Supervisor 3 22,000 66,000

Electrical workshop 6 20,000 120,000

SHOP Instrumentation (SI) 24 18,000 432,000

CHP (thermoelectric plant) 72 18,000 1,296,000

Engineer Labor Division, Security Technology 3 25,000 75,000

Engineer ecologist 1 30,000 30,000

Working production 24 25,000 600,000

Chief technologist 1 45,000 45,000

Chief process engineer 3 23,000 69,000

Deputy Chief Engineer of repair 1 25,000 25,000

Mechanical workshops 12 20,000 240,000

Workshop for the repair of buildings and structures 24 18,000 432,000

Repair of power shop 12 18,000 216,000

Sugar factory item 12 15,000 180,000

Transport Department 12 25,000 300,000

Central depot 24 15,000 360,000

Capital structure Division 3 18,000 54,000

Medical station 3 15,000 45,000

Canteen 7 20,000 140,000

Administrative Department (AD) 9 15,000 135,000



FINANCIAL PLAN. GENERAL INFORMATION – TAXES

Assumptions in the financial model:

Consider the lifetime of the project is 8 years (96 months)

The calculations were carried out at constant prices (₽) exchange rate € to ₽ CBR (04.2015) – 56,2079 Barrier rate (nominal annual 9 %) was determined taking into account the annual inflation of 15 % in the Russian Federation in January 2015

Structure of tax payments related to the entire crediting period

The construction of a new innovative «Sugar plant with processing capacity of 12 thousand tons of sugar beet

and 1.5 thousand tons of raw sugar per day» (Novoaleksandrovsk City, Stavropol Region, Russian Federation).

tax structure, %

Profit tax

51 %

VAT

44 %

Insurance

3 500 000 000

3 000 000 000

2 500 000 000

2 000 000 000

1 500 000 000

1 000 000 000

500 000 000

0

tax structure, ₽

2 847 288 502

109 968 156

236 648 828

3 315 682 412

Property tax

3 %

premiums

2 % VAT Insurance

premiums

Property tax Profit tax

VAT for purchased non-current (permanent) assets provided works and services in the amount of 1,989,185,400 ₽

(€ 35,390,000) presented to offset, and offset by tax on current activities.

The total amount paid in tax collections in tax and financial management, over the lifetime of the project (7 years, 84 months)

for the period of the credit relationship with a starting point (Starting Point) of funding will be: 6,509,587,898 ₽

In connection with the law of the Stavropol Region dated

01.10.2007 No. 55-KZ «About investment activity in the

Stavropol Region» Participants of regional industrial parks

granted state support in the form of reduction and

exemption from taxation.

VAT (value added tax) – rate of 18 %

From operating activities payments to budget will amount

to: 2,847,288,502 ₽ (4,1 % from total revenue).

Insurance premiums (unified social tax) – rate of 30.9 %

Payouts will be: 109,968,156 ₽ (0,2 % from total revenue).

Profit tax – rate of 20 % (reduced to a rate of 15.5 % for 7

years). Payouts will be: 3,315,682,412 ₽


Property tax – rate is 2.2 % (tax exemption for 7 years).

Payouts will be: 236,648,828 ₽ (0,3 % from total revenue).



FINANCIAL PLAN. INVESTMENTS – CREDIT

Targeted investments (credit) in high quality assets and a highly profitable project: The construction of a new innovative «Sugar plant with processing capacity of 12 thousand tons of

sugar beet and 1.5 thousand tons of raw sugar per day» of the territory of regional Industrial park (Novoaleksandrovsk City, Stavropol Region, Russian Federation).

cost project: (cost project): 13,040,214,400 ₽ (€ 232,000,000)

cost Export Contract Value (ECV): 11,051,029,000 ₽ (€ 196,610,000) in the form of a Bank loan at 9 % per annum with grace period of 3.6 years (42 months)

- interest payments variable semi-annual installments starting from the first half-year (6 months)

- repayment of the principal indebtedness on the loan equal semi-annual installments starting from the seventh half-year (42 months) equity capital (payment of VAT on works (services) and the acquired non-current (permanent) assets): 1,989,185,400 ₽ (€ 35,390,000)

THE PARAMETERS OF THE LINE OF CREDIT LOAN TERM 8 YEARS (96 MONTHS)

The provision of indirect export loan from a Foreign Bank (Financing Bank) for a period of not less than 96

months payment of insurance premium (Export Credit Agency), is included in the cost of credit.

Insurance Premium (Export Credit Agency) within 9 % of the amount of funding.

The expected rate of funding not more than 6M EURIBOR + 3,5 per annum, commitment fee 1 % per annum

arrangement fee 1 % (flat) one. The use of funds, export credit in accordance with the investment plan approved

by the financing Bank (Bank Lender).

As an instrument of realization of the project requires a documentary letter of credit (UCP 600).

The investment phase of the project (Grace period) is 3.6 years (42 months).

10 000 000 000

8 000 000 000

6 000 000 000

4 000 000 000

2 000 000 000

0

-2 000 000 000

-4 000 000 000

-6 000 000 000

-8 000 000 000

-10 000 000 000

-12 000 000 000

Investment Phase

Starting Point

7 357 095 773

Pay-Back Period - PB

The repayment of the loan starting from the Starting Point semi-annual installments, interest payments

variable semi-annual installments starting from the first half-year (6 months) by Agreement between the Bank

financing of (Bank Lender) and Investment Industrial Company «Translogistik», (Llc.)


Repayment of the investment loan for the income obtained during sugar beet processing and raw sugar

production and sales sugar sand (chroma no higher than 20 ICUMSA), and related products beet sugar production

(molasses, granulated dry sugar beet pulp).

12 000 000 000

10 000 000 000

8 000 000 000

6 000 000 000

11 051 029 000

6 981 226 000

4 069 803 000

Starting Point

8 840 823 200

6 630 617 400

Collateral: as collateral in favor of: property rights to land, proprietary process equipment, the property of the

company created within the project, as well as the guarantee of Founders and Director of Investment Industrial

Company «Translogistik», (Llc.) (Novoaleksandrovsk City, Stavropol Region, Russian Federation) for the full

3 504 122 000

4 000 000 000 3 504 122 000

2 000 000 000

0

4 420 411 600

2 210 205 800

0 0

amount of the loan and interest.

We offer a Foreign Bank (Financing Bank) participation in the operational management of our company.

Contract Cession (assignment requirements) – Borrower (assignor) in which concedes the requirement

(receivables) to the Bank creditor as security for the repayment of the loan and interest.

-2 000 000 000

-4 000 000 000

1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year

flow of credit payment of the loan

payment of interest outstanding balance

3 477 104 000



FINANCIAL PLAN. PERFORMANCE INDICATORS

Funding for the project is a separate economic unit (Special Purpose Vehicle – SPV), whose revenues are the sole source of repayment of credit funds and assets only pledge payments.

The basis of project financing are cash flow, which ensures the sufficiency of funds to pay operating costs and to repay the loan for the entire period of continuing credit relationship.

Commercial effectiveness and financial sustainability of the project is characterized by the following indicators.

NOTE: EPC – Engineering, procurement and construction (engineering, procurement and deliveries)

PLANNED INDICATORS PROJECT, ₽

1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year TOTAL, ₽

Export Buyer's Credit 3,504,122,000 3,477,104,000 4,069,803,000 11,051,029,000

Equity (payment VAT) 630,741,960 625,878,720 732,564,720 1,989,185,400

Revenue (VAT) 10,328,407,920 14,754,868,456 14,754,868,456 14,754,868,456 14,754,868,456 69,347,881,744

Current Costs 3,504,122,000 3,477,104,000 4,069,804,000 6,834,547,526 9,763,639,334 9,763,639,334 9,763,639,334 9,763,639,334 56,940,134,862

Payment of Interest 39,522,721 97,923,091 156,606,196 944,862,980 745,944,458 547,025,936 348,107,414 149,188,892 3,029,181,686

Payment of the Loan 2,210,205,800 2,210,205,800 2,210,205,800 2,210,205,800 2,210,205,800 11,051,029,000

Cash Balance 591,219,239 527,955,629 575,957,524 338,791,615 2,035,078,865 2,233,997,387 2,432,915,909 2,631,834,431 11,367,750,597

production Plant, % ЕРC/ЕРCМ ЕРC/ЕРCМ ЕРC/ЕРCМ 70 100 100 100 100

Planned levels of profitability consistent with the achievements of leaders in

the industry the sugar industry in the market of sugar beet processing and raw

sugar production and sales sugar and related products sugar production

(molasses and dry granulated pulp), the values of liquidity ratios solvency

indicate sufficient financial reliability of the project.

Integral parameters of the investment project are calculated at the

discounted rate of 20 % (barrier annual rate of 9 %).

The calculation period of integral indices – 8 years (96 months).

Comprehensive evaluation on integral parameters suggests that project:

The construction of a new innovative «Sugar plant with processing capacity of 12 thousand tons of sugar beet and 1.5 thousand tons of raw sugar per day»

of the territory of regional Industrial park (Novoaleksandrovsk City, Stavropol Region, Russian Federation) has a high degree of investment attractiveness.

INTEGRAL PARAMETERS OF PROJECT

The discount rate rd = 20 %

The payback period – PB, (73 mouths) 6,1 year

The discounted payback period – DPB, (76 months) 6,4 years

The average rate of return– ARR 25,10 %

Net present value – NPV 5,855,527 thousand ₽

Profitability index – PI 3,73

Internal rate of return – IRR 48,58 %

Modified internal rate of return – MIRR 32,61 %



RISK ASSESSMENT. SWOT–analysis

Threatening factors of the market and the fulfillment of its obligations arising

circumstances that Investment Industrial Company «Translogistik» could not be foreseen

or prevented, such as war, natural disasters (flood, fire, earthquake), social conflicts

(national strikes, civil wars), as well as the adoption of normative and legislative acts,

making it very difficult, restricting or prohibiting the activities of the company.

Stavropol Region is a politically stable region of the Russian Federation.

(Investment rating on liabilities in foreign currency: long-term and short-term rating of

«B+», outlook stable).

In the ranking of investment attractiveness of the Russian Federation, Stavropol Region

holds the 1st place among the regions of the North Caucasus Federal district in Russia in

the nomination «minimal investment risk».

The construction of a new innovative «Sugar plant with processing capacity of 12

thousand tons of sugar beet and 1.5 thousand tons of raw sugar per day» of the territory

of regional Industrial park (Novoaleksandrovsk City, Stavropol Region, Russian

Federation) in Novoaleksandrovsk City, Stavropol Region – is a major focus of the

company in the field of business development in the region when state support by the

Administration of the Stavropol Region, Russian Federation.

Limitation of financing of the investment project: The construction of a new innovative

«Sugar plant with processing capacity of 12 thousand tons of sugar beet and 1.5 thousand

tons of raw sugar per day» of the territory of regional Industrial park (Novoaleksandrovsk

City, Stavropol Region, Russian Federation) at the expense of own funds of the company.

Availability of land with infrastructure for building new innovative «Sugar plants with

processing capacity of 12 thousand tons of sugar beet and 1.5 thousand tons of raw sugar

per day» of the territory of regional Industrial park (Novoaleksandrovsk City, Stavropol

Region, Russian Federation). The location of the sugar factory covers an optimal

geographic location in the region near the main producers of sugar beet.

Availability of skilled workers and specialists in the sugar industry.

Low level of costs for materials and labor.

The engagement of highly-qualified Czech company ALTI Trade s.r.o. (Czech Republic)

as the EPC/EPCM – Contractor for delivery of technological equipment from the world

leader TECHNOEXPORT, a.s. (SAFICHEM GROUP).

THE COMPANY'S STRENGTHS WEAKNESSES OF THE COMPANY

FAVORABLE FACTORS OF MARKET THREATENING FACTORS OF THE MARKET



COMMODITY RISKS

The company's revenues, cash flows and profitability largely depend on the conditions

of formation of the internal market in the field of sugar industry, as well as prices for

finished products.

Sustainable effective demand for sugar and related products sugar production

(molasses and dry granulated pulp) from the Russian buyers.

The risks of formation of prices for raw materials in the process of production of

finished metal products can not be reduced by the company.

The most significant impact on the company's operations Investment Industrial

Company «Translogistik» may have a change of credit policy of the creditor (financing

Bank), raising interest rates and changing the terms of the loan required to Finance the

investment project.

Under adverse conditions in the sphere of banking services on the investment phase of

the project, the company does not have significant reserves to ensure the ongoing stable

operation.

LEGAL RISKS ASSOCIATED WITH THE ACTIVITY

Legal risks connected with activity of the company Investment Industrial Company

«Translogistik», can not affect the operation of the company.

In case of occurrence of such risks, the company intends to act depending on the

situation in strict accordance with the legislation of the Russian Federation.

Internal risk factors have been minimised through careful study of the concept of the

project, the relations established with potential Customers for sales of finished goods:

sugar and related products sugar production (molasses and dry granulated pulp).

Due to the fact that at the present time not over the reform of the legislation of the

Russian Federation on taxes and fees, there is a risk of adding to or modifying the

provisions of the Tax code that can lead to an increase in the tax burden and,

consequently, to changes in the outcome indicators of economic activity of the

Investment Industrial Company «Translogistik» , including a decrease in assets and net

income.

The level of political and macroeconomic risks in the Russian Federation is quite high

for all investment projects.

The construction of a new innovative «Sugar plant with processing capacity of 12

thousand tons of sugar beet and 1.5 thousand tons of raw sugar per day» of the territory

of regional Industrial park (Novoaleksandrovsk City, Stavropol Region, Russian Federation

– has risk category 4).

RISK ASSESSMENT. RISK ANALYSIS

FINANCIAL RISKS

LEGAL & TERRITORIAL RISKS



RISK ASSESSMENT. BREAK-EVEN ANALYSIS

The main factor that can potentially affect the financial indicators of the investment project:

a reduction of revenue, reduction of prices for sugar and related products sugar production (molasses and granulated beet pulp) on 33,8 % increasing the current (operational) costs

stock of financial strength

Analysis of the influence of price level on sugar and related products sugar production (molasses and dry granulated pulp) indicates the presence of the project a sufficient safety

factor, due to the accumulation of funds.

8E+09

7E+09

6E+09

5E+09

4E+09

3E+09

2E+09

1E+09

0

-1E+09

Investment Phase

1 h/y 2 h/y

3 h/y

revenue

4 h/y

5 h/y 6 h/y

variable costs

Starting Point

7 h/y 8 h/y

fixed costs

9 h/y

10 h/y 11 h/y

net profit

12 h/y

13 h/y 14 h/y

break-even point

15 h/y

16 h/y

h/y – half-year

The break-even point is at the level of 66.2 % of the planned volume of processing sugar beet and raw cane sugar

and the production and sale of finished goods: sugar and related products (molasses and granulated beet pulp).



RISK ASSESSMENT. EXPERT CONCLUSION

NET CAPITAL THE SOURCE DATA FOR THE PROJECT FOR THE CREDITING PERIOD

By the end of the credit line, Investment Industrial Company «Translogistik» shall possess PROJECT TITLE: The construction of a new innovative «Sugar plant with processing capacity

sufficient net assets to continue further self-employment and profit. of 12 thousand tons of sugar beet and 1.5 thousand tons of raw sugar per day» of the

territory of regional Industrial park (Novoaleksandrovsk City, Stavropol Region, and RF).

NPV (Net Present Value) of Investment Industrial Company «Translogistik» will be: SCALE: semi-annual

5,855,527,670 ₽ (€ 99,246,000) REVENUE: finished products – sugar and related products sugar production (molasses and

dry granulated pulp) for a period of 5 years (60 months) will be: 69,347,881,744 ₽

VARIABLE COSTS: 45,692,376,360 ₽

FIXED COSTS: 196,728,502 ₽

Over the crediting period (8 years, 96 months) Investment Industrial Company «Translogistik» produces and sells sugar and related products sugar production (molasses and dry

granulated pulp), totaling: 69,347,881 thousand ₽ of which:

sugar (GOST R 53396-2009) totaling: 66,346,680 thousand ₽ (433,016 tons)

molasses (GOST P 52304-2005, GOST R 54902-2012) totaling: 1,533,983 thousand ₽ (62,168 tons)

granulated dry sugar beet pulp (GOST 13456-82) totaling: 1,467,217 thousand ₽ (66,420 tonnes)

TOTAL REVENUE FOR THE CREDITING PERIOD 8 YEARS (96 MONTHS) CONCLUSION

revenue breakdown for 8 years (the crediting period), thousand ₽

granulated dry pulp 1 467 217

molasses (from raw sugar) 77 171

The low level of fixed costs from total costs and relatively high stock of financial strength

of the Investment Industrial Company «Translogistik» determine the average value of the

operating lever. This means that the increase in revenue under the current structure the

production and sale of sugar and related products sugar production (molasses and dry

granulated pulp) will give the company increased retained earnings.

molasses (from sugar beet) 1 456 812

sugar (from raw sugar) 27 154 414

sugar (from sugar beets) 39 192 266

Production and sale of sugar and related products sugar production (molasses and

granulated beet pulp) is above the break-even point. This means that the company's

activities associated with the processing of sugar beet and raw cane sugar production and

sales of finished goods: sugar and related products sugar production (molasses and

granulated beet pulp) in the sugar market makes a profit. 0 10 000 000 20 000 000 30 000 000 40 000 000 50 000 000



APP. SCHEME OF PROJECT FINANCING

The construction of a new innovative «Sugar plant with processing capacity of 12 thousand tons of sugar beet and 1.5 thousand tons of raw sugar per day» of the territory of regional

Industrial park (Novoaleksandrovsk City, Stavropol Region, and Russian Federation). This scheme of loan enables the Russian Investment Industrial Company «Translogistik» (Llc.) extending

the duration of funding (from 2 to 8.5 years) at favorable interest rates through targeted long-term loan (8 years / 96 months) from financing Foreign Bank (Bank Lender) under the guarantee of Export Credit Agency (ECA). Form of financing – documentary letter of credit (UCP 600) a period of validity to 36 months.

LONG-TERM LOAN

loan term: 8 years (96 months)

loan amount: € 196,610,000

interest rate: 9 % per annum

repayment of loan and interest: by half-year

insurance of export buyer credit: D

SCHEME OF PROJECT FINANCING

Subsidiary Bank Interbank Russian Credit the

Acts as Loan agreement Bank agreement the debtor Entry debt loan (Borrower) Entry debt loan

Loan Investment Industrial Company

Foreign repayment «Translogistik», (Llc.)

Bank Buyer – Investor Acts on the

implementation of Commercial Financing Bank construction works contract

Russian Company (Bank Lender)

Construction and (Importer) ECA ALTI Trade s.r.o. installation works,

Insurance Payment ЕРСМ-contractor commissioning

coverage on Ostrava Czech Company the Russian Czech Republic Documents for the (Exporter)

Bank shipment of goods Insurance Company

(Export Credit Agency) Czech Company

(Exporter) Payment TECHNOEXPORT, a.s. (SAFICHEM GROUP) Supplier and manufacturer of equipment

Ostrava, Czech Republic



APP. DEBT SERVICE (₽)

1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year TOTAL

Interest payments 39,522,721 97,923,091 156,606,196 944,862,980 745,944,458 547,025,936 348,107,414 149,188,892 3,029,181,686

Payment of the loan 2,210,205,800 2,210,205,800 2,210,205,800 2,210,205,800 2,210,205,800 11,051,029,000

12 000 000 000

Investment Phase 11 051 029 000 Starting Point Interest payments variable payments with 6 months (1 year, 1 half-year)

10 000 000 000 9 829 778 000 9 945 926 100

Payment of the loan in equal installments with 42 months (3 years, 7 half-year)

8 840 823 200

8 000 000 000 7 735 720 300

6 981 226 000 6 630 617 400

6 000 000 000 6 075 174 000

5 525 514 500

4 420 411 600

4 000 000 000 3 504 122 000

2 848 552 000 3 315 308 700 2 571 052 000

2 000 000 00 1 765 570 000 1 738 552 000 2 210 205 800

0 1 765 570 000 1 221 251 000

906 052 000

-447 566 675 -348 107 414 -248 648 153 -149 188 892 1 105 102 900

0 -497 296 305 -397 837 044 -298 377 783 -198 918 522 0 0

1 h/y 2 h/y 3 h/y 4 h/y 5 h/y 6 h/y 7 h/y 8 h/y 9 h/y 10 h/y 11 h/y 12 h/y 13 h/y 14 h/y 15 h/y 16 h/y 17 h/y -13 241 783 -45 563 843 -73 723 403 -99 459 261

-2 000 000 000 -26 280 938 -52 359 248 -82 882 793

-49 729 631

payment by half-year - 1 105 102 900

flow of credit payment of the loan payment of interest outstanding balance

h/y – half-year

The performance of the project for the entire period of the credit relationship with the beginning starting point of financin g



APP. REVENUE & CURRENT COSTS (₽)

8 000 000 000

7 000 000 000

6 000 000 000

5 000 000 000

4 000 000 000

3 000 000 000

2 000 000 000

1 000 000 000

-

Investment Phase

Production costs in the investment phase are

related to the construction of hardware of the

plant (engineering, procurement and deliveries).

312 939 360

317 802 600

219 825 360

163 089 360 512 739 360

462 789 360

1 h/y 2 h/y 3 h/y 4 h/y 5 h/y 6 h/y

production costs

Starting Point

7 h/y 8 h/y

current costs

9 h/y

10 h/y

equity

11 h/y

12 h/y

revenue

13 h/y

14 h/y

15 h/y

16 h/y

h/y – half-year

The performance of the project for the entire period of the credit relationship with the beginning starting point of financing



APP. ACCUMULATED PROFIT (₽)

10 000 000 000

Investment Phase Starting Point Pay-Back Period - PB

8 000 000 000 7 357 095 773

6 000 000 000

5 459 534 421

4 000 000 000 3 601 756 769

1 681 500 661

2 000 000 000

0

-196 733 909

1 h/y 2 h/y 3 h/y 4 h/y 5 h/y 6 h/y 7 h/y 8 h/y 9 h/y 10 h/y 11 h/y 12 h/y 13 h/y 14 h/y 15 h/y 16 h/y

-2 000 000 000 -2 032 946 940

-1 461 009 183 -2 912 902 761

-4 000 000 000 -3 827 138 435 -5 066 729 244

-6 000 000 000 -5 862 051 132 -5 579 308 391

-7 289 456 809

-8 000 000 000 -8 271 587 175

-8 343 687 474

-10 000 000 000 -9 355 896 608

-12 000 000 000


h/y – half-year




APP. BUDGET EFFICIENCY (₽)

7E+09

Investment Phase Starting Point 6 509 587 898

6E+09

5 513 945 415

5E+09

4 525 705 999

4E+09

3 769 270 512

3E+09 3 020 543 117

2 279 523 815

2E+09

1 546 212 606 995 642 483

1E+09 733 311 209 748 727 395 988 239 416

966 966 918 741 019 302 756 435 487

395 429 32 571 537 595 579 245 688 3

193 860 616 201 568 707

0 193 860 616

1 h/y 2 h/y 3 h/y 4 h/y 5 h/y 6 h/y 7 h/y 8 h/y 9 h/y 10 h/y 11 h/y 12 h/y 13 h/y 14 h/y 15 h/y 16 h/y

total amount of tax payments accumulated balance income/expenditure budgets of all levels

h/y – half-year




APP. CASH FLOWS (₽)

15 000 000 000

10 323 825 097 11 127 109 135 11 367 687 619

9 688 627 211 10 704 456 347 9 985 215 386

10 000 000 000 8 928 800 619

9 287 703 146

6 766 442 586

6 859 336 352

5 000 000 000 4 480 466 228 3 749 674 907

4 273 158 443 3 625 060 599

2 356 052 177 2 999 267 185 2 946 390 869 3 990 253 396

2 083 372 600 2 077 586 116 1 695 132 392 1 551 366 391

2 311 192 983 3 327 022 119

591 219 239 1 119 174 868

1 910 268 918 2 607 781 158

304 560 817 1 008 444 756 1 558 190 825 1 602 238 626

0

1 h/y 2 h/y 3 h/y 4 h/y 5 h/y 6 h/y 7 h/y 8 h/y 9 h/y 10 h/y 11 h/y 12 h/y 13 h/y 14 h/y 15 h/y 16 h/y -958 411 248 -1 304 134 793

-1 764 832 938

-1 778 811 783 -2 616 615 843 -2 922 275 403

-5 000 000 000

-5 215 076 195

-5 257 097 726

-7 018 531 700 -7 080 846 054 -6 996 802 978 -7 136 855 739

-6 976 510 163 -7 038 824 516 -6 954 781 441 -7 094 529 175

-10 000 000 000

cash inflow cash outflow free cash

h/y – half-year





1 year / 1 h/y – half-year 1 month 2 month 3 month 4 month 5 month 6 month

Proceeds from sales

The cost of materials and components

Costs for incentive wages

Total direct costs

Total costs

Personnel costs

Total fixed costs

Investments in short term securities

Income on short-term securities

Other income

Other payments

Taxes

Cash flow from operating activities

Costs for the acquisition of assets 1 224 588 000 43 978 000 43 978 000 151 009 000 151 009 000 151 009 000

Other costs of the preparatory period

Proceeds from the sale of assets

Acquisition of ownership rights (shares)

Sale of property rights

Income from investment activities

Cash flow from investing activities -1 224 588 000 -43 978 000 -43 978 000 -151 009 000 -151 009 000 -151 009 000

Equity capital (payment of VAT) 220 425 840 7 916 040 7 916 040 27 181 620 27 181 620 27 181 440

Export Buyer's Credit (long-term loan) 1 224 588 000 43 978 000 43 978 000 151 009 000 151 009 000 151 009 000

The payment of the loan

Interest payments on the loan 13 241 783

Lease payments

The payment of dividends

Cash flow from financing activities 1 445 013 840 51 894 040 51 894 040 178 190 620 178 190 620 164 948 657

Cash balance at beginning of period 220 425 840 228 341 880 236 257 920 263 439 540 290 621 160

Cash balance at end of period 220 425 840 228 341 880 236 257 920 263 439 540 290 621 160 304 560 817




1 year / 2 h/y – half-year

Proceeds from sales



Total direct costs

Total costs

Personnel costs

Total fixed costs



Other income

Other payments

Taxes


7 month 8 month 9 month 10 month 11 month 12 month

Costs for the acquisition of assets 983 509 000 151 009 000 151 009 000 151 009 000 151 009 000 151 009 000






Cash flow from investing activities -983 509 000 -151 009 000 -151 009 000 -151 009 000 -151 009 000 -151 009 000


Export Buyer's Credit (long-term loan) 983 509 000 151 009 000 151 009 000 151 009 000 151 009 000 151 009 000



Lease payments



Cash balance at beginning of period 304 560 817 481 592 437 508 774 057 535 955 677 563 137 297 590 318 917

Cash balance at end of period 481 592 437 508 774 057 535 955 677 563 137 297 590 318 917 591 219 239





Proceeds from sales



Total direct costs

Total costs

Personnel costs

Total fixed costs



Other income

Other payments

Taxes














Lease payments



Cash balance at beginning of period 591 219 239 918 100 859 945 282 479 972 464 099 999 645 719 1 026 827 339

Cash balance at end of period 918 100 859 945 282 479 972 464 099 999 645 719 1 026 827 339 1 008 444 756





Proceeds from sales



Total direct costs

Total costs

Personnel costs

Total fixed costs



Other income

Other payments

Taxes



Costs for the acquisition of assets 151 009 000 151 009 000 151 009 000 151 009 000 151 009 000 151 009 000











Lease payments


Cash flow from financing activities 178 190 620 178 190 620 178 190 620 178 190 620 178 190 620 125 831 012

Cash balance at beginning of period 1 008 444 756 1 035 626 376 1 062 807 996 1 089 989 616 1 117 171 236 1 144 352 856

Cash balance at end of period 1 035 626 376 1 062 807 996 1 089 989 616 1 117 171 236 1 144 352 856 1 119 174 868





Proceeds from sales



Total direct costs

Total costs

Personnel costs

Total fixed costs



Other income

Other payments

Taxes














Lease payments









Proceeds from sales



Total direct costs

Total costs

Personnel costs

Total fixed costs



Other income

Other payments

Taxes


Costs for the acquisition of assets

31 month

153 792 000

32 month

153 792 000

33 month

153 792 000

34 month

434 692 000

35 month

167 992 000

36 month

157 192 000











Lease payments


Cash flow from financing activities 181 474 560 181 474 560 181 474 560 512 936 560 198 230 560 102 602 767







Proceeds from sales 860 700 660 860 700 660 860 700 660 860 700 660 860 700 660 860 700 660

The cost of materials and components 375 023 654 375 023 654 375 023 654 375 023 654 375 023 654 375 023 655

Costs for incentive wages 3 460 800 3 460 800 3 460 800 3 460 800 3 460 800 3 460 800

Total direct costs 378 484 454 378 484 454 378 484 454 378 484 454 378 484 454 378 484 455

Total costs 197 365 663 197 365 663 197 365 663 197 365 663 197 365 663 197 365 665

Personnel costs 956 200 956 200 956 200 956 200 956 200 956 200

Total fixed costs 198 321 863 198 321 863 198 321 863 198 321 863 198 321 863 198 321 865



Other income

Other payments

Taxes 1 364 853 1 364 853 94 200 602 1 364 853 1 364 853 94 200 602



282 529 490 282 529 490 189 693 741 282 529 490 282 529 490 189 693 738






Cash flow from investing activities

Equity capital (payment of VAT)

Export Buyer's Credit (long-term loan)

The payment of the loan 1 105 102 900


Lease payments


Cash flow from financing activities -1 602 399 205







Proceeds from sales 860 700 660 860 700 660 860 700 660 860 700 660 860 700 660 860 700 660




Total costs 197 365 663 197 365 663 197 365 663 197 365 663 197 365 663 197 365 673

Personnel costs 956 200 956 200 956 200 956 200 956 200 956 200




Other income

Other payments

Taxes 1 364 853 1 364 853 98 054 648 1 364 853 1 364 853 98 054 647

Cash flow from operating activities 282 529 490 282 529 490 185 839 695 282 529 490 282 529 490 185 839 685












Lease payments









Proceeds from sales 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 373




Total costs 281 950 950 281 950 950 281 950 950 281 950 950 281 950 950 281 950 950

Personnel costs 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000




Other income

Other payments

Taxes 1 949 790 1 949 790 281 869 218 1 949 790 1 949 790 281 869 217













Lease payments













Total costs 281 950 950 281 950 950 281 950 950 281 950 950 281 950 950 281 950 946

Personnel costs 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000




Other income

Other payments

Taxes 1 949 790 1 949 790 285 723 264 1 949 790 1 949 790 285 723 264













Lease payments













Total costs 281 950 950 281 950 950 281 950 950 281 950 950 281 950 950 281 950 946

Personnel costs 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000




Other income

Other payments

Taxes 1 949 790 1 949 790 362 756 025 1 949 790 1 949 790 362 756 024













Lease payments













Total costs 281 950 950 281 950 950 281 950 950 281 950 950 281 950 950 281 950 947

Personnel costs 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000




Other income

Other payments

Taxes 1 949 790 1 949 790 366 610 071 1 949 790 1 949 790 366 610 071













Lease payments













Total costs 281 950 950 281 950 950 281 950 950 281 950 950 281 950 950 281 950 947

Personnel costs 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000




Other income

Other payments

Taxes 1 949 790 1 949 790 370 464 118 1 949 790 1 949 790 370 464 116













Lease payments













Total costs 281 950 950 281 950 950 281 950 950 281 950 950 281 950 950 281 950 947

Personnel costs 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000




Other income

Other payments

Taxes 1 949 790 1 949 790 374 318 163 1 949 790 1 949 790 374 318 163













Lease payments













Total costs 281 950 950 281 950 950 281 950 950 281 950 950 281 950 950 281 950 947

Personnel costs 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000




Other income

Other payments

Taxes 1 949 790 1 949 790 490 220 128 1 949 790 1 949 790 490 220 128

Cash flow from operating activities 403 613 553 403 613 553 -84 656 785 403 613 553 403 613 553 -84 656 777












Lease payments













Total costs 281 950 950 281 950 950 281 950 950 281 950 950 281 950 950 281 950 947

Personnel costs 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000 1 366 000




Other income

Other payments

Taxes 1 949 790 1 949 790 493 921 664 1 949 790 1 949 790 493 921 664

Cash flow from operating activities 403 613 553 403 613 553 -88 358 321 403 613 553 403 613 553 -88 358 313












Lease payments







APP. PROFIT – LOSS (₽)


Gross sales

Loss of production

Net sales

Materials and components

Piecework wages

Direct costs

Gross profit

Property tax

Administrative costs

Production costs 1 224 588 000 43 978 000 43 978 000 151 009 000 151 009 000 151 009 000

Marketing costs

Salary of administrative staff

Salary of the production personnel

Salary marketing personnel

Fixed costs 1 224 588 000 43 978 000 43 978 000 151 009 000 151 009 000 151 009 000

Interest on loans 13 241 783

Non-production costs 13 241 783


Other costs

Losses of the previous periods

Profit before tax -1 004 162 160 -36 061 960 -36 061 960 -123 827 380 -123 827 380 -137 068 343

Costs recognized in the income

Foreign exchange gains

Taxable profit -1 004 162 160 -36 061 960 -36 061 960 -123 827 380 -123 827 380 -137 068 343

Profit tax

Net income cumulative -1 004 162 160 -1 040 224 120 -1 076 286 080 -1 200 113 460 -1 323 940 840 -1 461 009 183






Gross sales

Loss of production

Net sales


Piecework wages

Direct costs

Gross profit

Property tax


Production costs 983 509 000 151 009 000 151 009 000 151 009 000 151 009 000 151 009 000

Marketing costs




Fixed costs 983 509 000 151 009 000 151 009 000 151 009 000 151 009 000 151 009 000




Other costs


Profit before tax -806 477 380 -123 827 380 -123 827 380 -123 827 380 -123 827 380 -150 108 678



Taxable profit -806 477 380 -123 827 380 -123 827 380 -123 827 380 -123 827 380 -150 108 678

Profit tax






Gross sales

Loss of production

Net sales


Piecework wages

Direct costs

Gross profit

Property tax



Marketing costs




Fixed costs 1 816 009 000 151 009 000 151 009 000 151 009 000 151 009 000 151 009 000




Other costs





Taxable profit -1 489 127 380 -123 827 380 -123 827 380 -123 827 380 -123 827 380 -169 391 583

Profit tax






Gross sales

Loss of production

Net sales


Piecework wages

Direct costs

Gross profit

Property tax



Marketing costs




Fixed costs 151 009 000 151 009 000 151 009 000 151 009 000 151 009 000 151 009 000




Other costs





Taxable profit -123 827 380 -123 827 380 -123 827 380 -123 827 380 -123 827 380 -176 186 988

Profit tax






Gross sales

Loss of production

Net sales


Piecework wages

Direct costs

Gross profit

Property tax



Marketing costs




Fixed costs 2 093 509 000 151 009 000 151 009 000 151 009 000 151 009 000 151 009 000




Other costs





Taxable profit -1 716 677 380 -123 827 380 -123 827 380 -123 827 380 -123 827 380 -197 551 143

Profit tax






Gross sales

Loss of production

Net sales


Piecework wages

Direct costs

Gross profit

Property tax



Marketing costs




Fixed costs 153 792 000 153 792 000 153 792 000 434 692 000 167 992 000 157 192 000




Other costs





Taxable profit -126 109 440 -126 109 440 -126 109 440 -356 447 440 -137 753 440 -211 780 233

Profit tax






Gross sales 860 700 660 860 700 660 860 700 660 860 700 660 860 700 660 860 700 660

Loss of production 8 625 544 8 625 544 8 625 544 8 625 544 8 625 544 8 625 544

Net sales 852 075 116 852 075 116 852 075 116 852 075 116 852 075 116 852 075 116

Materials and components 375 023 654 375 023 654 375 023 654 375 023 654 375 023 654 375 023 655

Piecework wages

Direct costs 375 023 654 375 023 654 375 023 654 375 023 654 375 023 654 375 023 655

Gross profit 477 051 462 477 051 462 477 051 462 477 051 462 477 051 462 477 051 461

Property tax

Administrative costs 1 190 000 1 190 000 1 190 000 1 190 000 1 190 000 1 190 000


Marketing costs

Salary of administrative staff 1 251 666 1 251 666 1 251 666 1 251 666 1 251 666 1 251 666

Salary of the production personnel 4 530 187 4 530 187 4 530 187 4 530 187 4 530 187 4 530 187


Fixed costs 194 521 973 194 521 973 194 521 973 194 521 973 194 521 973 194 521 973




Other costs


Profit before tax 282 529 489 282 529 489 282 529 489 282 529 489 282 529 489 -214 766 817


Foreign exchange gains 282 529 489

282 529 489

282 529 489

282 529 489

282 529 489

-214 766 817 Taxable profit

Profit tax 43 792 071 43 792 071 43 792 071 43 792 071 43 792 071 -33 288 857







Gross sales 860 700 660 860 700 660 860 700 660 860 700 660 860 700 660 860 700 660


Net sales 852 075 116 852 075 116 852 075 116 852 075 116 852 075 116 852 075 116


Piecework wages

Direct costs 375 023 654 375 023 654 375 023 654 375 023 654 375 023 654 375 023 655

Gross profit 477 051 462 477 051 462 477 051 462 477 051 462 477 051 462 477 051 461

Property tax



Marketing costs




Fixed costs 194 521 973 194 521 973 194 521 973 194 521 973 194 521 973 194 521 973




Other costs


Profit before tax 282 529 489 282 529 489 282 529 489 282 529 489 282 529 489 -165 037 187



Taxable profit 282 529 489 282 529 489 282 529 489 282 529 489 282 529 489 -165 037 187

Profit tax 43 792 071 43 792 071 43 792 071 43 792 071 43 792 071 -25 580 764






49 month 50 month 51 month 52 month 53 м month 54 month

Gross sales 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 373


Net sales 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 168


Piecework wages

Direct costs 535 748 078 535 748 078 535 748 078 535 748 078 535 748 078 535 748 075

Gross profit 681 502 087 681 502 087 681 502 087 681 502 087 681 502 087 681 502 093

Property tax



Marketing costs




Fixed costs 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534




Other costs


Profit before tax 403 613 553 403 613 553 403 613 553 403 613 553 403 613 553 5 776 515



Taxable profit 403 613 553 403 613 553 403 613 553 403 613 553 403 613 553 5 776 515

Profit tax 62 560 101 62 560 101 62 560 101 62 560 101 62 560 101 895 360






Gross sales 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 373


Net sales 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 168


Piecework wages

Direct costs 535 748 078 535 748 078 535 748 078 535 748 078 535 748 078 535 748 075

Gross profit 681 502 087 681 502 087 681 502 087 681 502 087 681 502 087 681 502 093

Property tax



Marketing costs




Fixed costs 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534




Other costs





Taxable profit 403 613 553 403 613 553 403 613 553 403 613 553 403 613 553 55 506 145

Profit tax 62 560 101 62 560 101 62 560 101 62 560 101 62 560 101 8 603 452






Gross sales 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 373


Net sales 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 168


Piecework wages

Direct costs 535 748 078 535 748 078 535 748 078 535 748 078 535 748 078 535 748 075

Gross profit 681 502 087 681 502 087 681 502 087 681 502 087 681 502 087 681 502 093

Property tax



Marketing costs




Fixed costs 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534




Other costs





Taxable profit 403 613 553 403 613 553 403 613 553 403 613 553 403 613 553 105 235 776

Profit tax 62 560 101 62 560 101 62 560 101 62 560 101 62 560 101 16 311 545






Gross sales 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 373


Net sales 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 168


Piecework wages

Direct costs 535 748 078 535 748 078 535 748 078 535 748 078 535 748 078 535 748 075

Gross profit 681 502 087 681 502 087 681 502 087 681 502 087 681 502 087 681 502 093

Property tax



Marketing costs




Fixed costs 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534




Other costs





Taxable profit 403 613 553 403 613 553 403 613 553 403 613 553 403 613 553 154 965 406

Profit tax 62 560 101 62 560 101 62 560 101 62 560 101 62 560 101 24 019 638

Net income cumulative -1 691 901 494 -1 350 848 042 -1 009 794 590 -668 741 137 -327 687 685 -196 741 917





Gross sales 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 373


Net sales 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 168


Piecework wages

Direct costs 535 748 078 535 748 078 535 748 078 535 748 078 535 748 078 535 748 075

Gross profit 681 502 087 681 502 087 681 502 087 681 502 087 681 502 087 681 502 093

Property tax



Marketing costs




Fixed costs 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534




Other costs





Taxable profit 403 613 553 403 613 553 403 613 553 403 613 553 403 613 553 204 695 037

Profit tax 62 560 101 62 560 101 62 560 101 62 560 101 62 560 101 31 727 731

Net income cumulative 144 311 535 485 364 987 826 418 440 1 167 471 892 1 508 525 344 1 681 492 651





Gross sales 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 373


Net sales 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 168


Piecework wages

Direct costs 535 748 078 535 748 078 535 748 078 535 748 078 535 748 078 535 748 075

Gross profit 681 502 087 681 502 087 681 502 087 681 502 087 681 502 087 681 502 093

Property tax



Marketing costs




Fixed costs 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534




Other costs





Taxable profit 403 613 553 403 613 553 403 613 553 403 613 553 403 613 553 254 424 667

Profit tax 62 560 101 62 560 101 62 560 101 62 560 101 62 560 101 39 435 823

Net income cumulative 2 022 546 103 2 363 599 555 2 704 653 007 3 045 706 460 3 386 759 912 3 601 748 756





Gross sales 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 373


Net sales 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 168


Piecework wages

Direct costs 535 748 078 535 748 078 535 748 078 535 748 078 535 748 078 535 748 075

Gross profit 681 502 087 681 502 087 681 502 087 681 502 087 681 502 087 681 502 093

Property tax



Marketing costs




Fixed costs 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534




Other costs





Taxable profit 403 613 553 403 613 553 403 613 553 403 613 553 403 613 553 304 154 298

Profit tax 80 722 711 80 722 711 80 722 711 80 722 711 80 722 711 60 830 860






Gross sales 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 371 1 229 572 373


Net sales 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 165 1 217 250 168


Piecework wages

Direct costs 535 748 078 535 748 078 535 748 078 535 748 078 535 748 078 535 748 075

Gross profit 681 502 087 681 502 087 681 502 087 681 502 087 681 502 087 681 502 093

Property tax



Marketing costs




Fixed costs 277 888 534 277 888 534 277 888 534 277 888 534 277 888 534 277 878 790




Other costs





Taxable profit 403 613 553 403 613 553 403 613 553 403 613 553 403 613 553 353 893 672

Profit tax 80 722 711 80 722 711 80 722 711 80 722 711 80 722 711 70 778 734




APP. BALANCE (₽)


Cash assets 1 989 185 000 1 989 185 000 1 989 185 000 1 989 185 000 1 989 185 000 1 975 943 217

Accounts receivable

Raw materials, materials and components

Work in progress

Finished goods inventory

Bank deposits and securities

Short-term prepaid expenses

Current assets 1 989 185 000 1 989 185 000 1 989 185 000 1 989 185 000 1 989 185 000 1 975 943 217

Fixed assets

Cost of fixed assets 1 224 588 000 1 268 566 000 1 312 544 000 1 463 553 000 1 614 562 000 1 765 571 000

Non-produced assets

Buildings and structures 392 088 000 436 066 000 480 044 000 631 053 000 782 062 000 933 071 000

Equipment 832 500 000 832 500 000 832 500 000 832 500 000 832 500 000 832 500 000

Prepaid expenses

Other assets

Investments in fixed assets

Investments in securities

Property in lease

TOTAL ASSET 3 213 773 000 3 257 751 000 3 301 729 000 3 452 738 000 3 603 747 000 3 741 514 217

Deferred tax payments

Export Buyer's Credit (long-term loan) 1 224 588 000 1 268 566 000 1 312 544 000 1 463 553 000 1 614 562 000 1 765 571 000

Accounts payable

Advances received

Current liabilities 1 224 588 000 1 268 566 000 1 312 544 000 1 463 553 000 1 614 562 000 1 765 571 000

Long-term loans

Preferred shares

Capital paid in excess of par value

Reserve funds

Retained earnings

Total capital 1 989 185 000 1 989 185 000 1 989 185 000 1 989 185 000 1 989 185 000 1 975 943 217

TOTAL LIABILITIES 3 213 773 000 3 257 751 000 3 301 729 000 3 452 738 000 3 603 747 000 3 741 514 217



APP. BALANCE (₽)


Cash assets 1 975 943 217 1 975 943 217 1 975 943 217 1 975 943 217 1 975 943 217 1 949 662 279

Accounts receivable


Work in progress




Current assets 1 975 943 217 1 975 943 217 1 975 943 217 1 975 943 217 1 975 943 217 1 949 662 279

Fixed assets


Non-produced assets

Buildings and structures 1 084 080 000 1 235 089 000 1 386 098 000 1 537 107 000 1 688 116 000 1 839 125 000

Equipment 1 665 000 000 1 665 000 000 1 665 000 000 1 665 000 000 1 665 000 000 1 665 000 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 4 725 023 217 4 876 032 217 5 027 041 217 5 178 050 217 5 329 059 217 5 453 787 279



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds

Retained earnings

Total capital 1 975 943 217 1 975 943 217 1 975 943 217 1 975 943 217 1 975 943 217 1 949 662 279




APP. BALANCE (₽)


Cash assets 1 949 662 279 1 949 662 279 1 949 662 279 1 949 662 279 1 949 662 279 1 904 098 436

Accounts receivable


Work in progress




Current assets 1 949 662 279 1 949 662 279 1 949 662 279 1 949 662 279 1 949 662 279 1 904 098 436

Fixed assets


Non-produced assets


Equipment 3 330 000 000 3 330 000 000 3 330 000 000 3 330 000 000 3 330 000 000 3 330 000 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 7 269 796 279 7 420 805 279 7 571 814 279 7 722 823 279 7 873 832 279 7 979 272 436



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds

Retained earnings

Total capital 1 949 662 279 1 949 662 279 1 949 662 279 1 949 662 279 1 949 662 279 1 904 098 436




APP. BALANCE (₽)


Cash assets 1 904 098 436 1 904 098 436 1 904 098 436 1 904 098 436 1 904 098 436 1 851 739 188

Accounts receivable


Work in progress




Current assets 1 904 098 436 1 904 098 436 1 904 098 436 1 904 098 436 1 904 098 436 1 851 739 188

Fixed assets


Non-produced assets


Equipment 3 330 000 000 3 330 000 000 3 330 000 000 3 330 000 000 3 330 000 000 3 330 000 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 8 130 281 436 8 281 290 436 8 432 299 436 8 583 308 436 8 734 317 436 8 832 965 188



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds

Retained earnings

Total capital 1 904 098 436 1 904 098 436 1 904 098 436 1 904 098 436 1 904 098 436 1 851 739 188




APP. BALANCE (₽)


Cash assets 1 851 739 188 1 851 739 188 1 851 739 188 1 851 739 188 1 851 739 188 1 778 015 785

Accounts receivable


Work in progress




Current assets 1 851 739 188 1 851 739 188 1 851 739 188 1 851 739 188 1 851 739 188 1 778 015 785

Fixed assets


Non-produced assets


Equipment 5 272 500 000 5 272 500 000 5 272 500 000 5 272 500 000 5 272 500 000 5 272 500 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 10 926 474 188 11 077 483 188 11 228 492 188 11 379 501 188 11 530 510 188 11 607 793 785



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds

Retained earnings

Total capital 1 851 739 188 1 851 739 188 1 851 739 188 1 851 739 188 1 851 739 188 1 778 015 785




APP. BALANCE (₽)


Cash assets 1 778 015 785 1 778 015 785 1 778 015 785 1 778 015 785 1 778 015 785 1 695 132 992

Accounts receivable


Work in progress




Current assets 1 778 015 785 1 778 015 785 1 778 015 785 1 778 015 785 1 778 015 785 1 695 132 992

Fixed assets


Non-produced assets


Equipment 5 272 500 000 5 272 500 000 5 272 500 000 5 550 000 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 11 761 585 785 11 915 377 785 12 069 169 785 12 503 861 785 12 671 853 785 12 746 161 992



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds

Retained earnings

Total capital 1 778 015 785 1 778 015 785 1 778 015 785 1 778 015 785 1 778 015 785 1 695 132 992




APP. BALANCE (₽)


Cash assets 1 977 661 882 2 260 191 372 2 449 885 113 2 732 414 603 3 014 944 093 1 602 238 626

Accounts receivable


Work in progress




Current assets 1 977 661 882 2 260 191 372 2 449 885 113 2 732 414 603 3 014 944 093 1 602 238 626

Fixed assets


Non-produced assets


Equipment 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 13 028 690 882 13 311 220 372 13 500 914 113 13 783 443 603 14 065 973 093 12 653 267 626



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds

Retained earnings 282 528 890 565 058 380 754 752 121 1 037 281 611 1 319 811 101 1 012 208 534

Total capital 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992




APP. BALANCE (₽)


Cash assets 1 884 768 116 2 167 297 606 2 353 137 301 2 635 666 791 2 918 196 281 1 551 366 391

Accounts receivable


Work in progress




Current assets 1 884 768 116 2 167 297 606 2 353 137 301 2 635 666 791 2 918 196 281 1 551 366 391

Fixed assets


Non-produced assets


Equipment 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 12 935 797 116 13 218 326 606 13 404 166 301 13 686 695 791 13 969 225 281 12 602 395 391



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds

Retained earnings 1 294 738 024 1 577 267 514 1 763 107 209 2 045 636 699 2 328 166 189 2 066 439 199

Total capital 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992




APP. BALANCE (₽)


Cash assets 1 954 979 944 2 358 593 497 2 482 287 622 2 885 901 175 3 289 514 731 1 910 268 918

Accounts receivable


Work in progress




Current assets 1 954 979 944 2 358 593 497 2 482 287 622 2 885 901 175 3 289 514 731 1 910 268 918

Fixed assets


Non-produced assets


Equipment 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 13 006 008 944 13 409 622 497 13 533 316 622 13 936 930 175 14 340 543 731 12 961 297 918



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds


Total capital 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992




APP. BALANCE (₽)


Cash assets 2 313 882 471 2 717 496 024 2 837 336 103 3 240 949 656 3 644 563 209 2 311 192 983

Accounts receivable


Work in progress




Current assets 2 313 882 471 2 717 496 024 2 837 336 103 3 240 949 656 3 644 563 209 2 311 192 983

Fixed assets


Non-produced assets


Equipment 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 13 364 911 471 13 768 525 024 13 888 365 103 14 291 978 656 14 695 592 209 13 362 221 983



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds


Total capital 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992




APP. BALANCE (₽)


Cash assets 2 714 806 536 3 118 420 089 3 161 227 407 3 564 840 960 3 968 454 513 2 607 781 158

Accounts receivable


Work in progress




Current assets 2 714 806 536 3 118 420 089 3 161 227 407 3 564 840 960 3 968 454 513 2 607 781 158

Fixed assets


Non-produced assets


Equipment 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 13 765 835 536 14 169 449 089 14 212 256 407 14 615 869 960 15 019 483 513 13 658 810 158



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds


Total capital 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992




APP. BALANCE (₽)


Cash assets 3 011 394 711 3 415 008 264 3 453 961 536 3 857 575 089 4 261 188 642 2 946 390 869

Accounts receivable


Work in progress




Current assets 3 011 394 711 3 415 008 264 3 453 961 536 3 857 575 089 4 261 188 642 2 946 390 869

Fixed assets


Non-produced assets


Equipment 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 14 062 423 711 14 466 037 264 14 504 990 536 14 908 604 089 15 312 217 642 13 997 419 869



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds


Total capital 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992




APP. BALANCE (₽)


Cash assets 3 350 004 422 3 753 617 975 3 788 717 200 4 192 330 753 4 595 944 306 3 327 022 119

Accounts receivable


Work in progress




Current assets 3 350 004 422 3 753 617 975 3 788 717 200 4 192 330 753 4 595 944 306 3 327 022 119

Fixed assets


Non-produced assets


Equipment 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 14 401 033 422 14 804 646 975 14 839 746 200 15 243 359 753 15 646 973 306 14 378 051 119



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds


Total capital 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992




APP. BALANCE (₽)


Cash assets 3 730 635 672 4 134 249 225 4 165 494 405 4 569 107 958 4 972 721 511 3 749 674 907

Accounts receivable


Work in progress




Current assets 3 730 635 672 4 134 249 225 4 165 494 405 4 569 107 958 4 972 721 511 3 749 674 907

Fixed assets


Non-produced assets


Equipment 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 14 781 664 672 15 185 278 225 15 216 523 405 15 620 136 958 16 023 750 511 14 800 703 907



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds


Total capital 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992




APP. BALANCE (₽)


Cash assets 4 153 288 460 4 556 902 013 4 472 245 228 4 875 858 781 5 279 472 334 3 990 253 396

Accounts receivable


Work in progress




Current assets 4 153 288 460 4 556 902 013 4 472 245 228 4 875 858 781 5 279 472 334 3 990 253 396

Fixed assets


Non-produced assets


Equipment 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 15 204 317 460 15 607 931 013 15 523 274 228 15 926 887 781 16 330 501 334 15 041 282 396



Accounts payable

Advances received


Long-term loans

Preferred shares


Reserve funds


Total capital 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992




APP. BALANCE (₽)


Cash assets 4 393 866 949 4 797 480 502 4 709 122 181 5 112 735 734 5 516 349 287 4 273 158 443

Accounts receivable


Work in progress




Current assets 4 393 866 949 4 797 480 502 4 709 122 181 5 112 735 734 5 516 349 287 4 273 158 443

Fixed assets


Non-produced assets


Equipment 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000 5 560 800 000

Prepaid expenses

Other assets



Property in lease

TOTAL ASSET 15 444 895 949 15 848 509 502 15 760 151 181 16 163 764 734 16 567 378 287 15 324 187 443


Export Buyer's Credit (long-term loan) 1 105 102 900 1 105 102 900 1 105 102 900 1 105 102 900 1 105 102 900

Accounts payable

Advances received

Current liabilities 1 105 102 900 1 105 102 900 1 105 102 900 1 105 102 900 1 105 102 900

Long-term loans

Preferred shares


Reserve funds


Total capital 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992 1 695 132 992




APP. SUGAR BEET – THE RAW MATERIAL FOR THE PRODUCTION

THE PRODUCTION OF SUGAR BEET

Sugar beet root originated in the XVII century as a result of selection from natural hybrids of leaf beet (chard) and beet root ciscosecurity feed type. In ancient Rome (formerly in Greece)

Swiss chard was common horticultural food and medicinal plant.

Wild beet found on the coast of the Mediterranean, Caspian and Black seas, the Caucasus and Asia Minor. Sucrose was detected in beet in 1747 Andreas the Margrave (Germany), and the

ability to obtain crystalline sugar from beet has been proven in 1799, a pupil of Margrave – Franz Karl sugar beet.

In 1801 in Germany built the first factory for the production of sugar from beets. In 1798 in Russia, a pharmacist of Moscow University of Bingham Johann Jakob conducted research and

made out of beet root sugar crystal. The cultivation of sugar beet processing for sugar in Russia began in the seventeenth century. The sugar beet roots at that time contained up to 7 % of sucrose. Sugar beet is mainly produced from mid August to November.

Globally, agriculture is sugar beet occupies a significant area. Her crops are 5,86 million Hectares.

The largest area of cultivation of sugar beet, are located in Ukraine, Russia, China, Poland, France, great Britain, Germany

and Italy. Sugar beet is cultivated in Belgium, Belarus, Japan, Hungary, Turkey, Georgia. In European countries, beet sugar

produce up to 80% of the total harvest in the world.

Sugar beet is a high yielding culture. The average yield of root crops in the world 34.3 t/ha, in the countries with high

culture of farming (France, Germany, Italy, Hungary, Sweden) collect up to 60 t/ha.

In the CIS high yields of beet roots get in Belarus and Ukraine. The average yield of sugar beet in Russia is 17.8 t/ha in

Krasnodar Krai, Kursk and Belgorod Regions to 30 t/ha.

Sown area of sugar beet in the Russian Federation is about 1.3 million hectares and the gross harvest of root vegetables –

24.5 m/t. the Main area of sugar beet is placed in the Central black earth economic region (Voronezh, Lipetsk, Kursk, Tambov,

Belgorod Regions), Krasnodar and Stavropol Krai, in the non-Chernozem zone, Western Siberia and the far East.

In the Russian Federation, sugar beet is one of the main industrial crops, giving carbohydrate-rich roots, from which they

obtain sugar. The sugar beet roots contain up to 20 % sucrose.

In the factory processing of sugar beet roots obtained from waste sugar beet pulp and molasses, of great economic

importance. In the dry substance of molasses (molasses) sugar contains about 50 %.

Treacle (molasses) is used for the manufacture of alcohol, food yeast, lactic and citric acids.

The bagasse (pressed sugar beet chips) contains dry substances of about 20 %. The pulp is a valuable feed for cattle in 100 kg of dry sugar beet pulp contains 80 feed units.

With a yield of beet 30 t/ha yield of 24 tons is bagasse Waste sugar beet production – defekacionnogo mud is used as fertilizer.

Waste resulting from the sugar beet (leaves, tops of heads, the tips of the roots), used for animal feed in fresh, silage and dried. The sugar beet roots contain two times more dry matter

than forage. When you harvest the crops of 30 t/ha of sugar beet with tops (15 t/ha) yields 10,500 feed units with 1 ha.

Source: Agronomy



WORLD PRODUCTION OF SUGAR CANE

APP. SUGAR CANE – THE RAW MATERIAL FOR THE PRODUCTION

This map identifies the location of the

production of sugar cane

Sugar cane – the most ancient of cultivated plants and the only plant from which sugar is produced in tropical Africa,

Oceania, many countries in Latin America and Asia.

In Europe only Spain and Portugal (island of Madeira) produce sugar from sugar cane.

On a global scale sugarcane (Saccharum officinarum L.) is a major source of sugar in the world.

Today the world production of this crop amounts to 1,450 million tons from 22 million hectares of land, the yield of

technical stems about 60 t/ha. In the world leading countries-producers of cane sugar are Brazil and India, accounted for about

60 % of the total world production of this crop.

The use of locally grown sugarcane in different countries. In India only 30 % of cane stalks processed to obtain white sugar,

51 % is used to produce Gur (natural evaporated cane juice), the rest is used as planting material for other purposes.

The rational use of sugar cane gives almost no waste. Refined sugar, raw sugar, sugar recentrifuging, sugar cane juice, syrup

and products made with sugar, all this finds a wide demand in the global market. In addition to its importance for the food

industry, sugar cane plays a significant role in biofuel industry. Brazil uses 48 % own-grown sugar cane for ethanol production

and the rest goes to the production of sugar. In Asia (India, China, Thailand, Philippines and Pakistan) developed ambitious

plans to use sugar cane as a biofuel for ethanol production. Raw sugar is produced from March until the end of July.

Nowadays the leading countries of the area of planting sugarcane: India, China, Egypt, côte d'ivoire, Tanzania, Madagascar, Cuba, Mexico, Brazil, Argentina, Colombia and Australia. In

recent years, some developing countries, such as côte d'ivoire, Benin, Togo, Tanzania, Sri Lanka started to cultivate sugar cane and stopped the import of sugar. The first attempts of

cultivation of sugarcane in the South of Russia was carried out at the end of the XVIII century. Later they were repeated many times, but were unsuccessful because sugar cane is the crop of

the tropics and subtropics. NOTE: Gur (jaggery) is a 100 % natural product (thickened sugar cane juice), with useful vitamins and microelements.

The birthplace of the culture of sugar cane is considered India (States of West Bengal and Bihar) and China. In these countries, has long cultivated different types of sugar cane.

In 327 BC Alexander the great reached India, his soldiers met with a beautiful cane, which «produced honey without the help of bees».

From India and China cane had spread to Persia and Egypt and later to Spain in the andalucía region (1150) and on the Islands off the West coast of Africa. Into the interior of Africa sugar

cane penetrated slowly. Spanish Explorer Christopher Columbus brought sugar cane to America during his second journey to Santo Domingo, where the cane was brought to Cuba in 1493.

The development of sugar industry in Latin America is closely linked to the development of slavery in 1516.

Source: Netafim

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