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MOSSELPROM

MOSSELPROM. ONE OF THE BIGGEST VERTICALLY INTEGRATED POULTRY AGRIBUSINESS AND INVESTMENT PROJECT IN THE EUROPEAN AND RUSSIAN AGRICULTURE

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MOSSELPROM

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

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

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

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

  5. Financial Outcome • A new domestic brand MOSSELPROM has been launched into the orbit of a highly-competitive market within the least possible time. It achieved a 16 times increase of the production volume: from117 tons in December 2003 up to 1954 tons in December 2004. • The MOSSELPROM brand has become easily recognizable on the market. There is a group of regular customers, and our poultry products have become known as the most qualitative domestic poultry.From February 2005 the demand has exceeded the production volume. www.mosselprom.ru/engl

  6. Leadership in Key Production Indicators For the first nine months of 2005 MOSSSELPROM strengthened its leadership position in the domestic poultry industry. According to the production figures for weight gains, feed conversion rate and EPEF, the poultry agribusiness has reached not only premier places in Russia but keeps pace with the world’s leading manufacturers. For reference: daily average weight gain in domestic poultry plants is 35 – 45 g., feed conversion rate – 2.2 -2.3 kg, whereas in Europe it is 53 – 57 g. and1.65 – 1.75kg. AverageEPEF throughout Europe : 225-250. (*) EPEF – integral index of effectiveness for broiler growing. It is used to express comparison of results at different poultry plants. www.mosselprom.ru/engl

  7. Key Indicators Graphs www.mosselprom.ru/engl

  8. Technological Superiority Poultry Agribusiness “Mosselprom” is a brand-new production. Located in ecologically safe natural zones of the Moscow region. The enterprises of “Mosselprom” have implemented the latest know - how in making ecologically clean products in line with environmental protection. Poultry meat of “MOSSELPROM” and a wide range of semi-products, i.e., fillet, rounds, hearts, gizzards, liver and more than 20 products are vacuum-packed in colorful bags reading the company logo. MOSSELPROM uses the latest high-tech equipment of a leading Dutch company “Stork“ to produce high-quality poultry meat. Holland is known to be an international leader in the production of the equipment for the poultry industry. The equipment helps to preserve all the useful properties of poultry meat, its tender flavor and gives a remarkable appearance to the whole variety of the products. www.mosselprom.ru/engl

  9. Partners MOSSELPROM builds mutually beneficial business with well-known Russian banks and insurance companies which help to create and develop the best poultry enterprise of the country. Vneshtorgbank is one of theleading universal banks of Russia and the largest one interms of authorized capital. 185th on The Banker's Top 1000 Banks of the world.Presently, the Government of the Russian Federation is the major shareholder with its share accounting for 99.9% Rosgosstrakh is the largest Russian insurer offering classic lines of insurance cover in terms of the size of its corporate network, assets and revenues. Market surveys show that Russian citizens regard Rosgosstrakh as the most reliable insurance partner in the market. The undisputed leader of the Russian banking industry with the market shares of 62% in deposits, 50% in retail lending, 32% in commercial lending, 29% in aggregate assets of the Russian banking sector. The largest bank in Central and Eastern Europe, and 152d on The Banker's Top 1000 Banks of the world. www.mosselprom.ru/engl

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