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Investment in agriculture

Investment in agriculture. Bosnian Grahovo and Glamoč. Bosnia and Herzegovina. B&H market environment. Huge needs for imports of food – the value of annual imports approximately 2 billion KM Food exports only 200 million KM Huge potential for production placement on domestic market

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Investment in agriculture

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  1. Investment in agriculture Bosnian Grahovo and Glamoč BosniaandHerzegovina

  2. B&H market environment • Huge needs for imports of food – the value of annual imports approximately 2 billion KM • Food exports only 200 million KM • Huge potential for production placement on domestic market • A significant portion of imports are cereals and beef – B&H meets about 40% of its own production

  3. Geographical position • Agricultural land located in the municipality of Bosnian Grahovo and Glamoc – SE of Bosnia and Herzegovina • Great strategic position for export to the EU and further ship transport through Croatian seaports • Distance from: • Sarajevo – 122km, • seaport Split – 66 km, • seaport Ploče – 123 km Sarajevo Grahovo Glamoč Portof SPLIT Portof PLOČE

  4. Geographical conditions • Area of Glamocis ideal for production of seed and mercantile potatoes due to it’s altitude and climate (880-950 m) • Area of Grahovo is characterized by a milder climate and lower altitude (750 m), but also peat soil which contain more than 30% of humus – ideal for vegetables production • Precipitations evenly distributed throughout the year • Wealth of water resources • A network of irrigation canals exists

  5. About the Companies • PoljoprivrednikGlamoč, AgroprometGrahovo, MP-Energija • Established in 2010 • Core business – production of cereals and vegetables • Agricultural sector – characterized as non-cycle, stable and low risk in long term • The companies disposes with 1.551 ha of agricultural land in long term concession / lease in Bosnian Grahovo and Glamoc • More than 85% of agricultural land cultivated

  6. Assets • The most important asset of the company are long-term concessions of agricultural land – 1.551 ha • Investments in cultivating of land which was not in production • The companies use external services of machinery (outsource) for processing and cultivating land • In period from 2010-2013 invested 250.000 EUR in cultivating land and raising the soil capability

  7. The nature environment and resources • Agricultural lands located in the area of unspoiled nature and have great predisposition for organic production • The soil is rich with minerals, carbonates and humus which reduces production costs and increases quality and quantity

  8. Production • Suitable for production of seeds and mercantile cereals, vegetables • Significant government incentives for productions (more on next slide) • Less needs for pesticides to protect a production

  9. Government incentives structure

  10. Potentials • Long-term priority concession agreement – priority of extending the concession after expiration • The possibility of obtaining new concessions and increasing the production area • In addition to cereals production, the possibility of expanding on other agricultural segments such as cattle fattening, cow-calf, sheep, bees and honey, organic production of fruit and vegetables, medicinal and aromatic plants, etc. • Proximity of Croatian coast as tourist destination gives huge potential for placement of agricultural products • The Free Trade Agreement between B&H and Turkey

  11. Investment opportunity • The shareholder is willing to sell 100% stake in the companies • For further information about the companies and potential transaction please do not hesitate to contact: Mr. Marko Rašić marko.rasic@msan.hr +385 1 3654 911

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