avg cis agricultural opportunity fund

AVG Capital Partners

General overview

©2014 AVG Capital Partners

ГК «Фабрика овощей»: Industrial production of high quality greenhouse vegetables on a country-wide scale (already launched greenhouses on total area of 40,6 ha in 4 Russian regions)

ООО «БМК»: One of the largest pig meat producers in Bashkortostan Republic

Large-scale irrigated farming of soy beans and corn in Stavropol Region

Debt restructuring of one of the largest Russian country-wide agricultural holdings with current land bank of 365 th. ha (with potential for further farmland expansion)

Razgulay Group

AVG OVERVIEW

• AVG Capital Partners was established in 2007 and is a Russia-based private equity fund with strong focus on investing in Russian agricultural industry at all stages of the value chain (from primary agriculture and meat production activities to deep processing of basic ag crops and production of finished goods)

• AVG’s current investment portfolio exceeds 200 USD’mln of private equity investments (net of debt capital)

AVG Capital Partners description

AVG’s portfolio

ProAgroTech

Vegetables Factory

BMK

• Russian agriculture industry has substantial growth potential (incl. imports substitution and establishing of unique manufacturing)

• Strong and experienced top- and operating management teams including independent international advisors and experts

• Established relations with the largest lending institutions in Russia

• Strong cooperation with government authorities (both federal and regional)

• AVG’s portfolio companies are socially important, especially at the local level (total headcount exceeds 11 th. people)

• AVG’s portfolio companies operate in over 15 Russian regions, some of which experiencing high level of unemployment and low levels of per capita incomes

• AVG Capital Partners regularly participates in various charity events (Vmeste s Toboy Charity Fund, in particular)

AVG advantages

Social responsibility

Strictly confidential 2


LLC “BMK” – industrial production of pork in Bashkortostan Republic

• 3 modern pork production plants with reproduction and fattening areas with the total capacity of 42 th. tn of pork in live weight annually (the first and the second pig complexes were put into operation in August 2013 and in March 2014, commissioning of the third pig complex is scheduled for August 2014)

• Total project investment is 209 USD’mln (184 USD’mln already invested)

• The project for construction of 2 pork complexes with the capacity of 28 th. tn and a fodder plant is currently being considered (the total investment is estimated at approx. 189 USD’mln)

LLC “Vegetables Factory” is a large-scale player in the market of greenhouse vegetables

• 4 greenhouses with the total area of 40.6 ha

• Greenhouses in Tula, Rostov, Chelyabinsk and Novgorod regions

• Year-round production of fresh and environmentally clean vegetables of 20.6 th. tn (including cucumbers, tomatoes and greeneries)

• Total investment of 220 USD’mln (160 USD’mln already invested)

AVG PORTFOLIO OVERVIEW (1/2)

Country-wide industrial production of greenhouse vegetables (Vegetables Factory Group LLC)

Industrial production of pork in Bashkortostan Republic (Bashkir Meat Co. LLC)

• LLC Vegetables Factory is a management company of the project

• AVG Capital Partners owns 99% equity stake

• LLC Tavros is a management company of the project

• AVG Capital Partners owns 100% equity stake



ProAgroTech Project involves industrial production of soy and corn with the use of modern irrigation system on the total target area of up to 33.6 th. ha (further expansion potential of up to 50 th. ha) in Stavropol Region

• Target production of up to 44 th. tn of soy, 73 th. tn of corn, 65 th. tn of wheat and other products

• The total project investment estimated at 144 USD’mln (25 USD’mln already invested)

• Project for construction of capacities for deep soy processing is being considered (investments to total 100 USD’mln)

• Razgulay Group OJSC is one of the largest Russia’s vertically integrated agricultural holdings

• The total land assets of the Group exceed 365 th. ha of agricultural land (with further expansion potential)

• The Group’s strategic business segments include rice (28% market share in Russia in 2013), sugar (9% market share in Russia in 2013) and grains divisions

• Construction of a modern biotechnological facility for the production of biodegradable plastics (PLA) on the basis of agricultural waste products (e.g. straw)

• Product mix will include polylactic acid / PLA (75 th. tn) and ammonium sulfate (65 th. tn)

• The total investment needs estimated at 540 USD’mln

AVG PORTFOLIO OVERVIEW (2/2)

Restructuring and turnaround management of Razgulay Group

• AVG Capital Partners is the controlling stakeholder of the Group (24.96% equity stake)

Production of biodegradable plastics (PLA)

Irrigated farming of grains and oilseeds in Stavropol Region

• AVG Capital Partners holds 51% equity stake, 49% stake is owned by North Caucasus Development Corporation (MoU with Korea Rural Development Corporation was signed)



Geography of AVG Operations

Key growth drivers

Significant scalability potential in the Eastern and Far East regions of Russia

Rostov-on-Don

Chelyabinsk

Veliky Novgorod

Tula

Moscow

Ufa

Stavropol

greenhouses

soy processing

pork meat production

OVERVIEW OF OPERATIONS

Strictly confidential

• Strong AG fundamentals and growth potential (growing demand for basic AG products and high quality / organic / non-GMO food products)

• Existing large-scale farming operations of AVG to provide significant synergy potential for new investment opportunities

• Strong and experienced professional management / operational teams of AVG to ensure high efficiency of business operations

• Strong relations with federal / regional government authorities and large Russian banks (e.g. access to LT subsidized debt at 5-6% p.a.)

• Use of state-of-the-art AG technologies and know-how to ensure high efficiency of business operations

• Long-term strategy aimed at increasing operating profitability and value for shareholders

5


AVG’S ADVANTAGES

DIVERSIFIED INVESTMENT PORTFOLIO

Investments in both new and existing business in a variety of high yield segments of Russian agriculture and at progressing stages of value-added – from acquisition of land assets, agricultural plants and meat production to complex processing of agricultural products (including agricultural waste) and production of finished goods for the end consumers

Integration / synergies potential of new projects with the existing business of AVG

Significant expansion and economies of scale potential in Russia (especially in Urals, Siberia and the Far East of Russia)

Wide geographic reach of the existing portfolio assets and projects

Long-term strategy implementation to grow the fund’s NAV

Access to the flow of new attractive investment cases and situations

ESTABLISHED RELATIONS WITH THE AUTHORITIES AND THE LARGEST PRIVATE AND STATE-OWNED BANKS IN RUSSIA

Access to debt funding at an effective rate of 6-7% p.a. (taking into account the subsidizing of interest rate by the government)

Application of state support instruments available for new investment projects (subsidies for a range of capital and operating expenditures)

PROFESSIONAL TEAM WITH A STRONG AND SUCCESSFUL TRACK RECORD

The fund’s team includes over 15 professionals with a track record in doing agricultural investment projects

The fund has over 200 USD’mln under management

6


Russian AG market overview and key drivers

Greenhouse vegetable production

Pork meat production

Soy production and deep processing

Production of biodegradable plastics

Razgulay Group

AVG fund overview

CONTENT



Key drivers / strengths of Russian AG market


Availability of AG land resources in Russia, offering vast expansion opportunities

1

Availability of water resources in Russia, considering that most AG nations (especially in Asia) are to face significant water shortages / limitations in the mid- and long-term perspective

3

• Russia occupies 1/6 of the World’s surface and, globally, is a Top-3 country in terms of arable land (total area of 122 mln. ha)

Land resources in Russia are significantly undervalued compared to most developed and yet developing AG countries, this already offering significant investment opportunities from land appreciation (i.e. even w/o returns from farming operations)

2

• For example, farmland in Stavropol is currently valued more than 3-4 times lower compared to similar farmlands in USA (e.g. Nebraska state)

• Russia possesses more than 9% of the world’s fresh water and offers significant expansion opportunities for irrigated farming

For example, Stavropol region is rich in water resources and, moreover, benefits from existing irrigation infrastructure installed during the Soviet Era (currently not used at full capacity; modernization of water infrastructure is needed and to be financed by the Russian Government)

Investment attractiveness of Russian AG market largely stems from the following key factors:

Moreover, attractiveness of Russian AG market becomes even more obvious considering the following global trends:

Active government support (e.g. up to 50% of CAPEX on irrigation equipment is subsidized) and access to LT and subsidized debt at an effective interest rate of 6-7% p.a. to significantly boost equity returns

4

• On the one hand, constantly growing global population along with improving living standards boost demand for high quality and protein rich food / basic AG products, whereas…

• …on the other hand, limited nature of water and land resources significantly limits further supply growth potential

Russian AG industry has vast expansion opportunities through the use of modern, state-of-the-art technologies and know-how, which is already widespread in developed AG countries, e.g. irrigated vs. non-irrigated farming

5

8


10.9 12.7

9.7 9.0

14.1 11.7

6.9 8.4

5.1

7.2 6.4

8.2 8.5

5.2

(7.8)

4.5 4.3 3.4

(9)

(6)

(3)

0

3

6

9

12

15

18

2004 2005 2006 2007 2008 2009 2010 2011 2012

%

Inflation, consumer prices (annual %) GDP growth (annual %)

Source: World Bank Source: World Bank

RUSSIAN MACROECONOMIC INDICATOTRS

8th largest economy in the world, 2012


Outstanding GDP per capita development

Low level of government debt Source: World Bank

GDP growth and inflation development

16.2

8.2

6.0

3.4 2.6 2.5 2.3 2.0 2.0 1.9 1.8

0

3

6

9

12

15

18

US

Ch

ina

Jap

an

Ge

rman

y

Fran

ce UK

Bra

zil

Ru

ssia

Ital

y

Ind

ia

Can

ada

USD' trln

Source: World Bank

4,109 5,337

6,947

9,146

11,700

8,616

10,710

13,284

14,037

0

4,000

8,000

12,000

16,000

2004 2005 2006 2007 2008 2009 2010 2011 2012

USD' CAGR 2004-2012: 19.2%

16.7

9.9

7.2 6.5

8.7 9.1 9.3 9.4

0

3

6

9

12

15

18

2005 2006 2007 2008 2009 2010 2011 2012

% of GDP

9


29 33 38 49 62 50 51 71 66 -30%

-20%

-10%

0%

10%

20%

30%

40%

50%

0

20

40

60

80

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

USD' blnAgricultural Industry, Russia

Global growth, % (right)

Russian growth, % (right)

Source: World Bank Source: FAO

RUSSIAN AGRICULTURE IN GLOBAL CUT

6th largest agricultural supplier in the world, 2012


Agricultural growth in Russia exceeds the global average

Top-11 soybeans supplier with growth potential Source: World Bank

Top-5 wheat supplier, 2012

Source: World Bank

In 2004-2012 CAGR in Russia of 10.9% vs. 7.6% globally 830

302

127 100 86 66 63 53 46 45

0

300

600

900

Ch

ina

Ind

ia

Ind

on

esi

a

Bra

zil

Nig

eri

a

Ru

ssia

Turk

ey

Pak

ista

n

Fran

ce

Thai

lan

d

USD' bln

20.1

22.4

23.5

27.0

29.9

37.7

40.3

61.8

94.9

120.6

0 50 100 150

Turkey

Germany

Pakistan

Canada

Australia

Russia

France

US

India

China

mln tons

1.8

2.4

2.4

3.0

4.9

8.4

11.5

12.8

40.1

65.8

82.1

0 20 40 60 80 100

Russia

Bolivia

Ukraine

Uruguay

Canada

Paraguay

India

China

Argentina

Brazil

US

mln tons

10


48

72

107

112

122

157

160

0 50 100 150 200

Australia

Brazil

EU

China

Russia

India

USA

Source: OECD Source: Food and Agricultural Organization

RUSSIAN AGRICULTURAL COMMODITIES MARKET

Country rank in the world by products (2012)


Cereals, oilseeds and sugar prices development

Protein food prices development Source: OECD

Arable land, million ha

0

100

200

300

400

500

600

700

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022

USD/t Wheat Coarse grains Rice

Oilseeds Raw sugar

0

1,000

2,000

3,000

4,000

5,000

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022

USD/t Poultry meat Beef

Pigmeat Whole milk powder

Fish

Source: FAOSTAT

#5

#1

#3

#1

Sugar beet (45,0 mln. tons)

Potatoes (29,5 mln. tons)

Wheat (37,7 mln. tons)

Barley (13,9 mln. tons)

11


Agricultural operations in Russia have high potential for efficiency improvement (new technologies and improved production techniques):

40000- 60000

8000 - 16000

6000 - 8000

4000 - 8000

4000 - 6000

1500 - 2500

500 - 1000

0 20000 40000 60000

Netherlands

Germany

Brazil

France

USA

Poland

Russia

5,7 5,0 4,7

3,7 3,0

2,6 2,5 1,8 1,6

0

1

2

3

4

5

6

EU 2

7

USA

Ch

ina

Ukr

ain

e

Wo

rld

s

Po

lan

d

Can

ada

Ru

ssia

Au

stra

lia

LAND APPRECIATION AND YIELDS IMPROVEMENT

Wheat yield in Russia, tons/ha Wheat yield by country, tons/ha

Average land price by country for similar crop structure, $/ha

Russian Agricultural land bank is substantially undervalued as compared to most developed countries:

• In addition to a strong and favorable macroeconomic Agricultural environment in Russia, the undervalued land assets along with the improvement in operation efficiency adds to the overall investment attractiveness of Russian agriculture market, offering potential investors high return low risk investment opportunities

• In Russia, average agricultural land price (free hold) ranges from 325 to 2500 USD per hectare, that is, substantially lower compared to most developed countries (refer to table to the right):

Stavropol region: 1 – 2,2k USD per ha (compared to an average of 6,4k per ha in Nebraska, USA)

Krasnodar region: 1 – 2,5k USD per ha (compared to an average of 14-17k per ha in Iowa and Illinois, USA)

Orel region: 0.4 – 0.7k USD per ha

Kursk region: 0.5 – 0.8k USD per ha

Source: www.ukbinfinam.ru


1,6

2,1 2,1 1,7

2,0 1,9 1,9 2,1 2,4 2,3

1,9 2,3

1,8

0,0

0,5

1,0

1,5

2,0

2,5

3,0

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

t/ha

Source: FAO

12


• Russian AG companies are substantially undervalued compared to foreign peers and have a significant growth potential

• Russian public AG companies are traded with a 19-43% discount to developed / emerging markets on EV/EBITDA basis (December 2013 data)

RUSSIAN COMPANIES ARE UNDERVALUED

Source: Bloomberg, December 2013

2013 2014F 2015F 2013 2014F 2015F 2013 2014F 2015F

Developed MarketsTyson Foods US 33.4 11,470 12,766 0.4x 0.4x 0.3x 6.7x 6.0x 5.9x 14.1x 11.8x 11.4x

Sanderson Farms US 67.1 1,545 1,570 0.6x 0.6x 0.6x 5.7x 5.3x 4.5x 11.3x 10.5x 9.5x

L.D.C. France 153.4 1,251 1,319 0.3x 0.3x 0.3x 5.6x 4.9x 4.7x 15.0x 14.1x 12.5x

HKScan Finland 4.9 268 881 0.3x 0.3x 0.3x 6.4x 5.8x 5.4x 16.0x 9.5x 7.6x

Atria Finland 10.9 308 778 0.4x 0.4x 0.4x 7.1x 6.1x 5.7x 16.4x 9.5x 8.3x

Hormel Foods US 45.9 12,112 11,928 1.4x 1.3x 1.3x 13.1x 11.3x 10.5x 23.4x 19.9x 18.0x

Nippon Meat Packers Japan 15.9 3,636 4,487 0.4x 0.4x 0.4x 9.1x 8.7x 7.9x 25.1x 21.7x 19.2x

Pilgrim's Pride US 16.5 4,271 4,856 0.6x 0.6x 0.6x 6.1x 6.3x 7.5x 8.1x 9.4x 14.3x

Campofrio Spain 10.0 1,026 1,663 0.6x 0.6x 0.6x 8.2x 7.2x 6.5x 35.9x 20.5x 14.6x

Median 0.4x 0.4x 0.4x 6.7x 6.1x 5.9x 16.0x 11.8x 12.5x

Mean 0.6x 0.5x 0.5x 7.6x 6.8x 6.5x 18.4x 14.1x 12.8x

Emerging MarketsMHP Ukraine 16.5 1,738 2,939 2.0x 1.7x 1.5x 6.8x 5.6x 5.0x 8.0x 5.8x 4.7x

BRF Brazil 20.6 17,997 21,153 1.6x 1.4x 1.2x 13.0x 10.5x 8.7x 26.4x 19.2x 14.9x

China Yurun Food Group China 0.7 1,295 2,049 0.6x 0.5x 0.4x 22.4x 11.7x 9.0x - 24.0x 11.0x

Charoen Porkphand Foods Thailand 0.9 6,616 11,896 1.0x 0.9x 0.8x 29.5x 14.8x 11.7x - 17.9x 12.3x

Universal Robina Philippines 2.7 5,913 5,762 3.1x 2.8x 2.4x 18.4x 15.7x 14.4x 27.9x 24.4x 21.8x

Astral Foods South Africa 10.1 426 454 0.5x 0.5x 0.5x 11.5x 7.0x 5.6x - 13.4x 9.9x

GFPT Public Thailand 0.3 386 458 0.9x 0.8x 0.7x 7.4x 6.8x 6.8x 10.0x 9.0x 7.9x

Marfing Alimentos Brazil 1.7 888 4,000 0.5x 0.4x 0.4x 5.5x 5.5x 5.4x - 13.3x 7.2x

Industrias Bachoco Mexico 3.3 1,994 1,582 0.5x 0.5x - 4.7x 5.7x 5.5x 9.0x 11.4x -

Chuying Agro-Pastora Group China 1.8 1,547 1,909 6.2x 3.9x 2.8x - 14.2x 8.6x - 17.1x 12.7x

Banvit Bandirma Vitaminli Turkey 1.3 132 393 0.5x 0.4x 0.4x 6.3x 5.5x 4.5x - 7.8x 6.7x

Shangdong Minhe Animal China 1.5 465 461 2.2x 1.4x 1.3x - 13.1x 9.2x - 19.3x 13.1x


Mean 1.6x 1.3x 1.1x 12.6x 9.7x 7.9x 16.3x 15.2x 11.1x

Russian Agricultura; Companies Cherkizovo Russia 11.0 722 1,650 1.0x 0.9x 0.9x 8.6x 6.2x 6.1x 10.2x 5.3x 5.4x

Rusagro Russia 6.5 767 1,209 0.9x 0.8x 0.8x 4.6x 3.7x 3.6x 6.9x 4.1x 3.3x


Mean 1.0x 0.9x 0.9x 6.6x 5.0x 4.9x 8.6x 4.7x 4.4x

Premium / (dicsount) to developed markets 137.5% 112.5% 112.5% -1.5% -19.0% -17.8% -46.6% -60.2% -65.2%

Premium / (discount) to emerging markets 0.0% 0.0% 6.3% -30.2% -43.4% -37.0% -14.5% -69.2% -60.5%

EV/EBITDA P/ECompany Country Price, USD M'Cap, USD'mln EV, USD'mln

EV/Sales








Razgulay Group

AVG fund overview

CONTENT



GENERAL OVERVIEW

Rostov-on-Don Chelyabinsk

V.Novgorod

Tula

Moscow

Greenhouses Location

• “Vegetable Factory” is a Russian large-scale greenhouse vegetables’ producer with diversified product mix, year round production capacity and access to key regional markets

• AVG Capital Partners owns 99.09% in the project

• Currently commissioned greenhouses with a total area of 40.6 ha:

– 6.2 ha in Novgorod region - production launched in December of 2012

– 8.8 ha in Chelyabinsk region - production launched in February of 2013

– 9.1 ha in Tula region - production launched in April of 2013

– 16.6 ha in Rostov region - production launched in May of 2013

• Current production capacity of 4 greenhouses is 20.6 th. tons of vegetables annually (target level of 26 th. tons)

• AVG currently considers the construction of a new 16.6 ha greenhouse complex in the Stavropol region (total investment of 45 USD’mln)

Scaling potential



KEY PROJECT CHARACTERISTICS

• Total project investments are 220 USD’mln (160 USD’mln already invested), of which:

‒ 20% of equity financing

‒ 80% are subsidized long-term debt (effective rate is 2-3%)

• Investment performance of project appeal:

‒ target EBITDA margin of 50 - 55%

‒ target project IRR of 20-21%

‒ simple payback period of 6-7 years

Investment and financial performance

• Professional operating and management team with many years of experience in running greenhouse businesses

• Value-driven long-term strategy, aimed at improvement in operating and financial performance

• State-of-the-art greenhouse technologies to ensure high quality of products and year-round production capacity

• Favorable macroeconomic conditions, including potential for import substitution along with constantly growing demand for vegetables

• Vast expansion potential across Russia and the CIS

• Favorable location and a wide geographical presence providing access to key regional sales markets and distribution centers

Key strengths

• Production of 4 greenhouses totals 20.6 th. tons of vegetables at 40.6 ha, of which:

‒ cucumbers’ proportion may vary from 59% to 75%

‒ tomatoes’ proportion may vary from 17% to 33%

‒ other products (greens, peppers etc.) may vary from 8% to 13%

• Average crop yields for cucumbers and tomatoes :

– 60 and 100 kg/m2 for cucumbers with /without lighting

– 55 kg/m2 for tomatoes

Production volume and structure

cogeneration units CHP

Contour heating system

Small-growing technology

Shading system

Evaporating humidification

Assimilative illumination

Drip watering

Suspended trays

microclimate AMS

The technologies used



RUSSIAN MARKET TRENDS

• Commercial production of greenhouse vegetables, along with high operating margins, also benefits from strong and obvious market fundamentals:

• constantly growing local demand for fresh vegetables, given relatively limited local supply and high share of imports (especially in spring and winter seasons)

• growth potential for vegetables’ per capita consumption in Russia up to the recommended standards / level of Western European countries: from current 105 kg/person to 150 kg/person annually

• local greenhouse vegetable production accounts for a mere of 1.6% of global production, offering vast opportunities for further growth

• local greenhouse industry is to a large extent represented by out of date and inefficient facilities, which (even with the upgrade) may not effectively compete with modern greenhouse complexes, in terms of both production efficiency and product quality

• relatively high entry barriers into the market due to the high capital intensity of production

• absence of greenhouse players with federal-scale approach (in terms of geographical scope)

Greenhouses areas, th. ha (2012) Consumption of vegetables Dynamics in RF, kg


150 150 150 150 150 150 150

91 94 100 103 101 103 105

0

50

100

150

200

2006 2007 2008 2009 2010 2011 2012

kg per capita

Recommended rate per capita, kgActual consumption per capita, kg

Source: Teplitsy Rossii Source: AKMI Research

80

52

35

20

10

6.3

2.1

0 20 40 60 80 100

China

Spain

Turkey

Italy

Netherlands

Poland

Russia

th./ha

17







Razgulay Group

AVG fund overview

CONTENT



GENERAL OVERVIEW

Location of pig farms

• Investment in “Tavros”, a large vertically integrated pork producer in the Ural region of Russia (Republic of Bashkortostan)

• AVG owns 100% of shares in the project

• 3 modern pig complexes in Buzdyaksky and Chishminsky districts of Bashkortostan Republic have already been commissioned / are at the final construction stage:

‒ 3 pig complexes for 15 th. sows (Dan Bred genetics), including rearing and fattening zones

‒ annual production capacity of 42 th. tons of meat in live weight

• AVG Capital Partners currently considers investing in:

‒ greenfield construction of additional 2 pig complexes and 1 pig feed mill in Bashkortostan (Buzdyaksk district)

2 pig complexes for 10 th. sows with a target production capacity of 28 th. tons of meat in live weight

feed mill capacity of 230 th. tons of feed and grain storage capacity of 90 th. tons of grain

‒ greenfield construction / acquisition of a meat processing facility with a slaughterhouse in Bashkortostan

Ufa

Project location

Target market of the project



PROJECT KEY CHARACTERISTICS

• Total project costs are estimated at 398 USD’mln, including:

‒ 3 pig complexes: 209 USD’mln (184 USD’mln already invested)

‒ 2 pig complexes and 1 feed mill: 189 USD’mln

• Key financial results of the consolidated project (5 pig complexes and a feed mill) for 2017:

‒ revenue at the level of 140 USD’mln

‒ EBITDA of 66 USD’mln

‒ EBITDA margin of 47%

Investment and financial performance

• Professional management and operational team with many years of experience in realizing pork production projects

• Value-driven long-term strategy, aimed at improvement in operational and financial efficiency of operations

• Modern equipment and state-of-the-art technologies

• Strong macro-fundamentals and favorable business location (relatively low competition along with regional pork meat deficit)

Key strengths

• Annual production of 5 pig complexes (25 th. sows) is around 70 th. tons of meat in live weight

• Structure of pig complex:

Market structure and production volume

State-of-the-art equipment and genetics

Project schedule

2013 – 2014 year 2015 year

• Construction of 3 additional pig complexes (42 th. tons of meat annually)

• Construction of 2 additional pig complexes (add. production 28 th. tons of meat annually and a feed mill (230 th. tons of feed annually)

70 th. tons of meat annually

Feeding zone Feeding zone

Breeding blanket



RUSSIAN MARKET TRENDS

• Major trends in the Russian market of pork production:

‒ constantly growing demand for pork (driven by rising living standards and corresponding dietary changes in favor of protein-rich food)

‒ significant growth potential for meat per capita consumption in Russia, up to the recommended standards / level of Western European countries - more than two-fold increase from current 19 to 40 kg/person per year

‒ significant share of imports (up to 23% in 2012)

‒ relatively high entry barriers into the market due to the high capital intensity of production

‒ local pork supply is highly fragmented and characterized by a large share (more than 30%) of technologically outdated production facilities and smallholders, which are unable to effectively compete with modern pig complexes

‒ 3 major Russian market players (Miratorg, Agro-Belogorye and Cherkizovo) control not more than 24% of the local market

‒ active government support (being the key driver for the industry over the last 5-7 years)

• The following mechanisms to ensure long-term stability and overall attractiveness of the pork industry:

– active government support through favorable customs and tariff regulation and direct OPEX and CAPEX subsidies

– vertical integration of business operations, e.g. through investment in acquisition / new construction of meat processing facilities (incl. a slaughterhouse) and a feed mill

– active use of financial and/or insurance instruments to hedge against volatility of prices for basic agricultural products








Razgulay Group

AVG fund overview

CONTENT



Project description

• Project involves 2 phases:

– Phase 1: installation of modern irrigation equipment for soybean and corn cultivation on a total area of 33.6 th. ha (expandable to 50 th. ha)

– Phase 2: construction of a modern soybean deep processing plant with capacity of 161 th. tons per year (production of soy concentrate, meal and oil)

• Phase 1 (irrigated farming on total area of 33.6 th. ha) is carried out on the basis of the existing operations of LLC “Izobiliye“ farm (currently managed 6,5 th. ha)

Geography of operations

• Currently agreed investment structure assumes a joint venture between AVG (51% stake) and NCDC (49% stake):

Financial structure

51% stake 49% stake

PROJECT GENERAL INFORMATION

Status and nearest events

• Business plan for Phase 1 and 2 has been prepared

• Engineering and design works for Phase 1 have been finished

• Irrigation equipment for Phase has been partially prepaid

• Construction works have already been initiated (irrigation system installed on 2 th. ha in 2013)

• AVG acquired 100% equity stake in LLC “Izobiliye” in 4Q 2013

Stavropol

Moscow

Krasnodar

Elista Astrahan

Rostov-on-Don

Volgograd

Village Obilnoe, 80 km from Mineralnie Vodi

The project involves the development of non-GMO soybean cultivation and processing operations based on the already existing operations of AVG’s portfolio company LLC “Izobiliye”



1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015

Phase 1

Phase 2

Installation of irrigation equipment and machinery

Acquisition of additional land (18,5 th. ha)*

Project timeline (preliminary)

Construction of processing facility with capacity of 161 th. tons

Overview of the existing operations

• The existing farm operations are carried out by LLC “Izobiliye” located in Stavropol region, some 200 km to the south-east from the city of Stavropol

• Key operational and financial results are as follows:

– 6,5 th. ha of land under management

– current crop rotation includes soy, corn, oilseeds and wheat

– forecast revenues of approx. 12 USD’mln in 2014 Stavropol

Moscow

Krasnodar

Elista Astrakhan

Rostov-on-Don

Volgograd

Map of Russia - area of interest

Obilnoye village, 80 km from Mineralniye Vody

Construction of storage facilities (60 th. tons)

Expandable to 33.6 th. ha

* First Phase of the Project could be scaled up to 50 k ha

OVERVIEW OF LLC “IZOBILIYE” AND PROJECT TIMELINE



Product portfolio

• A product portfolio will include the following key products:

– Soybeans (annual production of 44 th. tons) - Phase 1

– Corn (annual production of 73 th. tons) - Phase 1

– Wheat (annual production of 65 th. tons) - Phase 1

– Soy products, including soy meal, soy oil and soy protein isolates (annual processing capacity of 161 th. tons of soybeans) - Phase 2

• Flexibility of soybean processing technology allows modifications to product portfolio to match constantly changing market demand

Soy meal Soy oil

Isolate

Soybeans

Flour Dairy prod’s

Milk, tofu…

Soy products Applications

Soy oil Cooking oils, base for printing inks and oil paints

Soy meal Livestock feed (up to 98% of total use)

Isolate Food ingredient (meat products, sausages etc.)

Key use of soy products

A simplified soy processing map

• Russia imports up to 100% of soy proteins

Canada's leading consulting company specializing in agronomy

The world’s most reputable engineering companies in the field of design of soybean processing plants

One of the largest global law firms

Project consultants and engineering companies

Brown & Co’s specialist agricultural business consultancy department advises farmers, landowners and business managers

Ferrostaal is a global provider of industrial services in plant construction and engineering

PRODUCT PORTFOLIO



Phase 1 - Key investment ratios (stand-alone)

• Total investment of 144 USD’mln, of which:

• NPV of 97 USD’mln (at 15% discount rate)

• Project IRR of over 30%

• Discounted PBP of 6.1 years

• Total investment of 100 USD’mln

• NPV of 110 USD’mln (at 12% discount rate)

• Project IRR of over 30%

• Discounted PBP of 7.5 years

Phase 2 - Key investment ratios (stand-alone)

IPO M&A

Key exit options - IPO and/or M&A

The financing structure assumes equity and debt financing with a target Debt to Equity ratio of approx. 50% / 50% (D/E of 65%/35% may also be considered)

The above investment results do not take into account government subsidies, including interest rate subsidies (2/3 of interest rate) and compensation for 50% of irrigation equipment capex)

KEY INVESTMENT RESULTS (PRELIMINARY)



126,9

269,4

118,4

210

0

50

100

150

200

250

300

1995 2012

Global production Global consumption

• Global soy production and processing has more than doubled since 1995 (284 mln. tons in 2013 vs. 127 mln. tons in 1995)

USA (90 mln. tons or 32% of total market), Brazil (87.5 mln. tons or 31%) and Argentina (54 mln. tons or 19%) are the key producers and exporters of soybeans and soy products worldwide

China remains the largest consumer of soybean crop and soy products worldwide. Import accounts for over 70% of the Chinese consumption, with local production to reach its full capacity in the mid-term

Up to 83% of global soybean crop is processed into soy meal (70% of total production) and oil (17%), the remaining part is attributed to retail consumers (17% respectively)

Soy industry has high growth potential in the future and will be largely driven by rising food market resulting from constantly rising world population and changes in food diets (due to increasing personal income)

284

Global production by country, mln. tons Production and processing, mln. tons

0

5

10

15

20

25

30

35

USA China Argentina Brazil

1990 2000 2010

Soybean cultivation area, mln. ha

Of which 70% accounts for soy meal production, 17% for soy oil production

Cultivation area in China remains relatively stable

GLOBAL MARKET HIGHLIGHTS


89,5; 32%

87,5; 31%

54; 19%

12,2; 4%

40,8; 14%USA

Brazil

Argentina

China

Other

27


342

686

1 222

17561 880

421

720

1206 1229

1487

0

500

1000

1500

2000

2000 2005 2010 2011 2012

t/ha

Production, th. tonnes Cultivation area, th. ha

746 944

1 222

1 756 1 880

1 479

1 856 1 653

1 780

1 536

0

500

1 000

1 500

2 000

2008 2009 2010 2011 2012

t/ha

Production Consumption

Domestic soy production has experienced substantial growth over the last decade, largely driven by local meat production (soy meal being one of key ingredients for livestock feed)

Nevertheless, local soybean producers may not keep up with constantly rising demand, this resulting in high import share, especially, for soy isolates and concentrates, where import share may amount to 100%

Soybean cultivation area is largely concentrated in the Russian Far East (70% contribution to local production), whereas soybean processing capacities, on the contrary, are located in the European part of Russia

The remaining soybean production (30%) is concentrated in the Southern and Central parts of Russia (e.g. Krasnodar region), production volumes of these regions to grow in the mid- and long-term

Local soybean production is forecast at 5 mln. tons in 2015, i.e., roughly three times growth compared to 1,8 mln. tons produced in 2011

Soybeans are largely imported from Latin America

Soy production (k, tons) and cultivation area in Russia (th. ha) Soy consumption and production in Russia, k tons

RUSSIAN SOY MARKET


Source: Rosstat Source: Rosstat

CAGR ‘00-’12: 15%

CAGR ’00-’12: 11%

CAGR ‘08-’12: 26% CAGR ’08-’12: 1%

28


Key factors Brief description

1. Favorable location • proximity to key markets, both the domestic and export markets • availability of transport infrastructure, including close railroad connection and access to sea ports

2. Good climate: • high and unique quality of soybeans • relatively high crop yields (up to 3 tons/ha for soybeans without irrigation equipment, that is) • lower CAPEX requirements

3. Strong government support: • access to subsidized debt at an effective interest rate of 5-7% • subsidized capital expenditures (50% of irrigation equipment related costs) • favorable tax and customs regulation

4. Strong team of professionals:

• existing investments into various agriculture sub-industries (from crop and meat production to distribution of consumer products)

• proven Russian and International track record of the team members • good relations with the largest state banks and state authorities

5. Strong fundamentals worldwide and in Russia:

• positive long- and mid-term analyst’s forecasts for food and Agriculture commodity prices • rising demand for key Agriculture commodities along with limited supply growth potential (especially

worldwide, this tendency to lead to food deficits over the long-term) • changes in diets in favor of food with higher protein content • at a time of constantly growing concerns over future economic stability worldwide, Russian Agricultural

industry is viewed as a “quiet harbor” offering relatively low-risk investment opportunities

6. Cultivation of non-GMO soya • non-GMO soybeans is a premium product and it’s sold upside to the GMO soybeans • Ability to have a fully traceable ‘identity preserved’ production system

• The key growth drivers inclulde (1) favorable geographical location, (2) strong LT fundamentals and (3) strong government support (e.g. customs, tax and legal regulation aimed at import substitution)

KEY STRENGTHS AND VALUE DRIVERS








Razgulay Group

AVG fund overview

CONTENT



GENERAL OVERVIEW

• Construction of the first unique high technology facility for production of biodegradable plastics (PLA or polylactic acid) on the basis of renewable resources in Russia

• The project location is in Bashkortostan Republic

• At the first stage of the project grains will be used as the primary raw materials, which will further be replaced with wastes from agricultural activity (straw)

• The total investment needs estimated at 540 USD’mln (excluding the subsidies)

• The project is scheduled to be done in 2014-2018 including research, development and trials

General project overview

• The annual production capacity will total from 75 to 100 th. tons

• The projects main products:

- polylactic acid / PLA (75 th. tons) and

- ammonium sulphate (65 th. tons)

• Annual straw consumption is expected at 285 th. tons

• Areas of PLA application and usage: packaging, hygiene, textiles, construction materials etc.

Production capacity

31


PROJECT’S OBJECTIVES

To establish a biotechnological production unique on both Russian and international scale by using the expertise of foreign partners and applying the domestic developments in genetic engineering and biotechnologies

1

To utilize the second generation raw materials (not applicable to use in food industry unlike the first generation raw materials) should enable to establish a zero-waste agricultural production cycle and should have a positive effect for the Russian agricultural market development

2

To have a positive environmental impact (complete composting, reduction of CO2 emission, in particular) and to generate a an environmentally friendly image of the country

3

To improve the development of Russia’s economy in general and agriculture in particular by bringing new lands into the production cycle and by establishing of the new unique production

4

To comply with the government’s policy and initiatives to develop Russia’s biotechnological industry (The Complex Program for Development of Biotechnologies in Russia to 2020, in particular)

5

32


TECHNOLOGIES AND AREAS OF APPLICATION OF PLA

Fibers, threads, non-woven materials, hygiene

Household goods, cosmetics, packaging, bottles, holders

Industrial plastics

Potential areas of PLA application in Russia

Starch, cellulose Carbohydrates

(incl. sugar C5/C6) Organic acids

Biodegradable plastics (PLA, PBS)

Gluten / Lignin Fertilizers

(ammonium sulphate)

Production stages of biodegradable plastics

33


674 675 791

5,185

342 486604

1000

1,016

1,1611,395

6,185

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2010 2011 2012 2017П

th. tonnes

non-biodegradable biodegradable

Global biopolymers production development PLA production and consumption outlook

CAGR 45,9%

CAGR 20,4%

CAGR 35,1%

BIOPOLYMERS MARKET

• Substantial export potential of biopolymers with high value-added relative to agricultural raw materials

• Abundant scientific and labour staffing, availability of raw materials

• Government’s support of the industry (adoption of The Complex Development Program for Biotechnologies till 2020, industry’s development roadmap)

• Positive expectations of agricultural raw materials production volumes are an additional driver that ensure the development of biopolymers industry

Polymers production development in Russia

CAGR 10,8%

Global biopolymers market development

Russia’s biopolymers market outlook

620820

18501920

120 152253 321

590

1,000

0

500

1,000

1,500

2,000

2,500

2010 2012

th. tonnes

PP PE PSV PSV PETF

150 250

800

100550

3,000

0

500

1000

1500

2000

2500

3000

3500

2010 2015П 2020П

th. tonnes

global PLA production capacities expected PLA consumption

34







Razgulay Group

AVG fund overview

CONTENT


©2014 AVG Capital Partners Strictly confidential

• Rice division: Top-1 (28% market share)

Key business segments of the Group

• 2 rice plants and 3 farms located in Krasnodar region

• Annual processing capacity of 320 th. tons of raw rice

• Rice irrigation system includes more than 18 th. ha of land

• 10 sugar plants

• Annual processing capacity of 4.8 mln. tons of sugar beet, sugar production of 577 th. tons (2012)

• Sugar division:

Top-4 (9% market share)

• Grain division: • 11 granaries with the capacity of 2.4 mln. tons

• 3 cereals plants and 6 flour mills and 1 milk canning plant

• Land bank: • Land under control: 365 th. ha, incl. 119 th. ha of free-hold land and leased land of 246 th. ha

• Cultivated land (2013): approx. 268 th. ha

Revenue and EBITDA development Cultivated land area by crop in 2013 (th. ha)

840.5 770.3

574.9

711.2

9%

19%

9%

13%

0%

5%

10%

15%

20%

0

300

600

900

2009 2010 2011 2012

USD' mln

76.629%

54.821%

35.013%

27.310%

18.37%

15.06%

6.92%

3112% Wheat

Sugar beet

Barley

Fallow

Soybeans

Rice

Sunflower

Other

• Razgulay Group is currently undergoing a restructuring of its debt portfolio, this to improve its financial performance and allow for the expansion of business operations in the future (operating cash flows to finance the expansion CAPEX, instead of interest)

• Debt portfolio of the Group is to be repaid in discount promissory notes, which are to be acquired either for debt or equity contribution

Razgulay Group: general overview (1/2)

36

©2014 AVG Capital Partners Strictly confidential

Sugar beet production and yields Rice production and yields Wheat production and yields

Sugar production Rice production

1405

856

16071819 1912

33.5

19.9

34.8 36.039.4

0

5

10

15

20

25

30

35

40

45

0

500

1000

1500

2000

2500

2009 2010 2011 2012 2013

tn/hath. tn

Sugar beet production Sugar beet yield (rhs)

119 113

99 93 79

6.4 6.4

6.16.1

6.2

6.0

6.0

6.1

6.1

6.2

6.2

6.3

6.3

6.4

6.4

6.5

0

20

40

60

80

100

120

140

2009 2010 2011 2012 2013

tn/hath. tn

Rice production Rice yield (rhs)

397325 308

200263

3.8

2.9 3.0

2.5

3.7

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

50

100

150

200

250

300

350

400

450

2009 2010 2011 2012 2013

tn/hath. tn

Wheat production Wheat yield (rhs)

Razgulay Group: operating results (2/2)

439388

536 577

0

100

200

300

400

500

600

700

2009 2010 2011 2012

th. tn

146 146122

151

0

20

40

60

80

100

120

140

160

2009 2010 2011 2012

th. tn

37

©2014 AVG Capital Partners 38

RAZGULAY GROUP – Geography of operations

• Sugar operations are performed in Orlov, Krsasnodar, Kursk, Cherkessk regions and Bashkiriya

• Grain operations are performed in all indicated regions except Orelv and Belgorod regions

• Rice processing operations are performed in Krasnodar region

Areas of operations: • Altai Territory • Belgorod Region • Voronezh Region • Ivanovo Region • Karachaievo-Circassian Republic • Krasnodar Region • Kursk Region • Omsk Region • Orenburg Region • Orel region • Moscow Region • Republic of Bashkortostan • Tatarstan Republic • Rostov Region • Stavropolsky kray

Operations of Razgulay

Moscow

Omsk

Barnaul

Ufa

Orenburg

Kazan

Stavropol Cherkessk

Krasnodar

Kursk

Belgorod

Orel Ivanovo

Rostov

• More than 465 th. ha of land under control across Russia, including fertile Black Earth region

• Existing operations in 15 regions of Russia, predominantly in the Central part

Land optimization with close-end funds Disposal of elevators

General information

• Kursk, Belgorod, Orel, Rostov and Krasnodar regions together form the so-called Central Black Earth region, which is famous for its fertile soil offering high yields

Voronezh


Russia’s sugar market


• Domestic sugar market is consolidated by approx. 30 producers, where Top-7 producers account for 69% of domestic production

• Local sugar consumption remains stable with 6 mln. tons p.a., of which local production accounts for 88% and the remaining part largely represented by imports from Latin America

• Local prices for beet sugar remain stable (above 600 USD/tn in 2013 – 2014) and are driven by positive long-term forecast for global sugar prices

• Razgulay is the Top-3 sugar exporter in Russia (14% share in total exports)

Local sugar prices and exports development Key sugar exporters in 2012 (volume), Razgulay is the Top-3

Key highlights Domestic sugar production development

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

th. tons

production raw sugar imports sugar importsSource: USDA

Source: USDA, Rosstat, Ministry of agriculture

200 34 17 275 275 275 300 300 300

413 463

627 653 670 676 704 718 732

0

50

100

150

200

250

300

350

0

200

400

600

800

2008 2009 2010 2011 2012 2013 2014 2015 2016

th.tonsUSD/t

exports (right scale) sugar price

Source: Rosstat, Razgulay

40%

17%14%

9%

6%

3%3%

8%Prodimex

Sucden

Razgulay

Rusagro

Dominant Trading

Kuban

Rosselkhozbank

Other

39







Razgulay Group

AVG fund overview

CONTENT



Fund type Closed-end

Fund currency USD

Fund residence The Cayman Islands

Investment geography RF and CIS

Investment focus

Primary agriculture

Deep processing of AG products

Land assets

Infrastructure and logistics

Share of one investment no more than 30% of the assets under

management

Minimum investment amount

$1 mln.

Management company Avangard Asset Management

Fundraising term from 5 to 7 years

Investment period from 3 to 7 years

Target return (IRR) from 12 to 20% per annum

Exit strategy IPO / private placement

Sale to a strategic investor

Dividend policy Dividend payment from the 3rd year Fund

operation

Provision for losses 50% of the management company fees is in

reserve to cover potential investors losses

Administrator

Auditor

Lawyer

FUND PARAMETERS



Joint venture projects (investment in modernization of Group’s production facilities)

Synergy with Razgulay Group Greenhouses Meat production

Processing of basic AG products Infrastructure and logistics Land bank

Biofuels production

Grain, oilseeds and agricultural waste processing

Acquisition / expansion of land bank with a discount to fair market value

INVESTMENT OPPORTUNITIES

• AVG Capital Partners focuses on investments in a broad range of AG sectors in Russia and CIS with target rate of return (IRR) of 20-25%

• Key investment opportunities / projects currently being considered by AVG include the following:

Investments in already existing operations of AVG (scaling up) or new greenfield projects

Construction of storage facilities

Construction of freight terminals and transfer points

RAZGULAY GROUP


Investments in already existing operations of AVG (scaling up) or new greenfield projects

42


WIDE GEOGRAPHICAL COVERAGE

Central region

SFD

Ural region

Orel

Voronezh

Kursk

Belgorod

Rostov-on-Don

Stavropol Krasnodar

Ufa

Kazan

Orenburg

2

3

1

Specialization

Sugar production

Grain cultivation

Rice cultivation

Dairy

Poultry and pork

Greenhouses

1 2 3

• AVG follows a comprehensive, flexible approach to geography of business operations in the context of each business area:

‒ Central part of Russia and Southern Federal District are especially suitable for large scale AG operations due to favorable climatic conditions, highly fertile soil (e.g. so-called Black Earth region) and all necessary infrastructure in place

‒ Meat production facilities of AVG are located in the Ural region of Russia (Republic of Bashkortostan and Orenburg region), which is characterized by relatively low level of competition along with evident deficit of locally produced meat products

‒ AVG’s greenhouse facilities (e.g. Rostov, Tula and Chelyabinsk regions) are favorably located in terms of good climatic conditions (to achieve energy-efficiency (hence profitability) of operations) and direct access to key regional sales markets

Tula

Chelyabinsk



COOPERATION WITH STATE BANKS

AVG actively cooperates with major commercial and state banks when managing investment projects

AVG also closely cooperates with regional governmental authorities on the development of regional state initiatives and programs aimed to support regional AG markets

Subsidized debt financing can significantly improve profitability of AG operations and boost equity returns for investors (debt financing at an effective interest rate of 5-7% per annum, maximum debt to total capital ratio of 70-80%)

Federal and regional authorities and VEB support Successful history of relationships with major lenders in the agricultural sector



Rustem Mirgalimov Managing Partner

Since 2010 and March 2011: Chairman of the Board of Razgulay (also CEO of Razgulay from 2010 till March 2011)

Management of a diversified country-wide agricultural holding consisting of over 60 entities

2009 - currently: Managing Partner of AVG Capital Partners

Management of a Russia-based PE fund with a focus on AG industry

2007 – currently: Chairman of the Board of Avangard Asset Management

Establishing of hedge funds, marketing of ETF products in Russia

2006-2008: Member of Supervisory Board of the Russian National Association of Securities Markets Participants

2004-2007: Senior Executive and from 2004 Deputy Chairman of AK BARS Bank, a Top-20 Russian universal bank

Prior to AK BARS Bank, Mr. Mirgalimov was the CEO of Art-Finance, an investment company

2005: Chicago Business School, MBA

1997: Kazan State University, degree in law

1995: Kazan State Financial and Economic Institute, degree in finance

Dmitry Steinsapir Managing Partner

2010 - currently: Board member of Razgulay Group

Management of a diversified country-wide agricultural holding consisting of over 60 entities

2009 - currently: Managing Partner at AVG Capital Partners

Management of a Russia-based PE fund with a focus on AG industry

2006-2008: Member of Supervisory Board of the Russian National Association of Securities Markets Participants

2005 -2007: Board member of RTS, the leading Russian securities exchange.

Prior to AVG, led the investment division of AK BARS Bank, and was CEO of AK BARS Finance.

Prior to AK BARS, CEO of the Prospekt Brokerage, one of Russia’s first brokerages

Prior to Prospekt, senior management positions at Russian branches of ING Barings and ABN Amro

2006: Registered CPA

2005: Chicago Business School, MBA

1996: Moscow International Business School, MBA

AVG TEAM



CONTACT INFO

Disclaimer THIS DOCUMENT IS CONFIDENTIAL AND IS AVAILABLE ONLY TO POTENTIAL INVESTORS WHO ARE ADDRESSEES OUTSIDE OF THE UNITED STATES, AUSTRALIA, CANADA OR

JAPAN.

IMPORTANT: In accessing the document, you agree to be bound by the following terms and conditions, including any modifications to them any time you receive any information from us as a

result of such access. The document has been prepared solely in connection with the information purposes for certain institutional and professional investors of the securities described herein.

This document is not being made available to the public.

This document serves exclusively as background material introducing the AVG CIS Agricultural Opportunities Fund (the “Fund”).

Any potential investor should be aware that the value of the investment is subject to a variety of risks and may fall, as well as rise, and investors may not get back the amount invested.

This document is neither an offer to sell, nor a solicitation of any offer to buy shares in the Fund or interests in AVG Capital Partners in any jurisdiction.

NOTHING IN THIS DOCUMENT CONSTITUTES AN OFFER OF SECURITIES FOR SALE IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DO SO. THE SECURITIES THAT MAY BE

DESCRIBED HEREIN HAVE NOT BEEN, AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE‘‘SECURITIES ACT’’), OR THE SECURITIES

LAWS OF ANY STATE OF THE UNITED STATES OR OTHER JURISDICTION AND THE SECURITIES MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES (AS DEFINED IN

REGULATION S UNDER THE SECURITIES ACT), EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS

OF THE SECURITIES ACT AND APPLICABLE STATE OR LOCAL SECURITIES LAWS. THIS DOCUMENT IS NOT AN ADVERTISEMENT AND IT MAY NOT BE FORWARDED OR

DISTRIBUTED TO ANY PERSON AND MAY NOT BE REPRODUCED IN ANY MANNER WHATSOEVER. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS DOCUMENT

IN WHOLE OR IN PART IS UNAUTHORISED. FAILURE TO COMPLY WITH THIS DIRECTIVE MAY RESULT IN A VIOLATION OF THE SECURITIES ACT OR THE APPLICABLE LAWS OF

OTHER JURISDICTIONS

Rustem Mirgalimov

Managing Partner [email protected]

www.avgfund.com

Moscow office 107045, Russian Federation, Moscow, Pushkarev per.,7 Tel/Fax: +7 (495) 232 55 43

Dmitri Steinsapir

Managing Partner

[email protected]

www.avgfund.com

Cayman office P/o box 1344 20 Genesis Close Grand Cayman KY1-1108, Cayman Islands

Aleksey Drugov

Director

[email protected]

www.avgfund.com


http://www.avgfund.com/



avg cis agricultural opportunity fund

Economy & Finance