kpmg services for agricultural companies

2018

KPMG IN RUSSIA AND THE CIS

kpmg.ru

KPMG services for agricultural companies

Megatrends of global agricultural production Free competition with global economy industry urges every sector to change and evolve. Such changes provide both challenges and opportunities enabling the business to identify, prepare to and capitalize industrial shifts in a timely and more effective manner as compared to competitors. Agricultural industry is no exception. Major sectoral changes alter rural lifestyle, economic structure and state policy. These changes are often called magatrends as they are built on the overlapping of multiple trends including adjacent sectors. Trends can be economic, geopolitical, social, technological, and so on. KPMG analyzed main drivers of global agriculture and identified nine megatrends that will define the world’s agricultural landscape for future decades.

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© 2018 KPMG. All rights reserved.


Increase of population is a key factor of growth in world agricultural supply and demand. Based on current growth indicators, by 2050, the world’s total population will rise by 2.3–2.4 billion amounting to 10 billion people. A greater growth will be seen in emerging countries with relatively low GDP and food consumption level that is currently insufficient to ensure a productive and healthy life. Proceeding from indicators for 2015, world food demand will grow by 60-70% by 2050. This estimate is based on a population growth forecast (70% food demand growth) and income growth forecast (30% food growth) based on dietary allowance of 2770 kcals per person. It should be noted that about 1/3 of the world population consumes 1840 kcal meals.

Based on OECD statistics, an average global income (GDP per capita) is 14,000 USD per person per annum. It is expected to grow to 22,000 by 2030 and to 28,000 by 2040. Currently the fastest income growth is seen in China, India and Indonesia. Following the growth of health and welfare, the population of these countries will choose products in accordance with western consumption patterns which include a greater share of grain and pulse crops, sugar, vegetables, fruit, nuts, meat and fresh dairy products. Total energy value of consumed food will presumably grow from 2619 kcal to 3000 kcal per person per day.

According to FAO, half of the world’s population lives in cities, by 2030 urban population will become an absolute majority. Active urbanization of the population and a global shift in consumer preferences to healthy, fresh and safe food, green production and social responsibility create demand for special agricultural products and production, whether it is organic agricultural produce or high fiber food, allowing tracing all production stages – from the «field» to an end user.

Growing demand for basic agricultural products 1

Urbanization and growth of middle class2



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Today agricultural industry actively uses computer-based production modeling and big data analysis systems. In the future, agricultural producers will use data from satellites, drones, sensors, weather stations and agricultural equipment sensors (Internet of Things). New technologies will allow agricultural producers to exchange data with other producers, equipment suppliers and buyers, and provide necessary analytical support to improve performance and reduce costs. The agricultural robot will take a part of agricultural production, product processing and packaging processes. End-to-end tracking systems will increase transparency and improve end users’ trust in agricultural products. Experts believe that developed countries adopt new technologies at such a speed that we will hardly even recognize the agricultural production process after 2025. In the USA, for example, independent digital data of agricultural production is recognized as additional assets and considered for purposes of business valuation.

Agricultural product processing will use nanotechnologies, enzymatic processes and 3D food printing. Marketing and distribution of agricultural products will also undergo drastic changes – about 50% of customers in China buy food online at least once every three months. In the USA, this value amounts to 10%.

Until recently, global agricultural production growth was mainly due to the intensification of agricultural technologies, including efficient use of production facilities, protection of agricultural products, improved breeding and genetic material, and advanced management practices. Use of fertilizers became the main factor that allowed developing countries to double crop productivity after the so-called Green Revolution.

Nowadays, many agricultural countries face restrictions in further increase in productivity and difficulties in supplying water to land development systems. As a result, a further growth in productivity will be expected mainly due to the development of breeding technologies that will allow using fewer resources to increase production. The world needs Gene Revolution, and in general we can say that we have progressed in that field, as post-transcriptional modification and apomixis processes improve and accelerate cloning and allow editing of breeding material, thus

Technological digitalization of agricultural production

3

Biotechnology as a growth factor 4

4 KPMG services for agricultural companies


The global land area is 13.2 bln hectares, with 12% (1.6 bln hectares) used for agricultural production, 28% and 35% occupied by forests and pastures respectively. The growth of cultivated lands in the last 50 years by 159 mil hectares is due to the use of land development systems. The area of lands fed by rainfall decreased insignificantly, some lands are idle due to soil degradation, others – because of construction activities. In the last 30 years, the disposed lands are valuated at 135 mil hectares. Since 1960, food production has almost tripled requiring only another 12% of lands for development. However, the price is quite high, as intensive use of land resulted in degradation of soil, water and biological resource. 25% of global land tilled today are degraded or will become such quite soon. In addition to moderate degradation of soil, the total hectares of deteriorated land will reach one third of world’s cultivated soil, affecting the life of 1.5 bln people.

According the FAO, total reserves of fertile land amount to 4.2 bln hectares mainly including lands of Latin America and Africa (under the Sahara). But these lands either demand additional costs to start crop rotation or located a long way from target sales markets inter alia due to lack of necessary infrastructure. Countries with high and growing demand for agricultural products have reached maximum utilization of the soil potential, and the situation is further aggravated by reduction of available water resources. According to FAO estimates, the developing countries have potential of providing about 120 mil hectares of land for crop rotation. FAO experts also believe that land loss in developed countries will amount to 50 mil hectares, with net forecast growth of 70 mil hectares. This area is not enough to satisfy a growing demand for agricultural products that will increase by 60–70% by 2050 as estimated by experts.

Limitation of land resources5

creating preconditions to speed up the scientific processes in breeding and genetics, boosting the production of new variety of plants and hybrids, and new breeds.

Moreover, genetic improvements will not automatically imply the creation of genetically modified organisms (GMO). New technologies such as genetic editing will allow favorable mutations in an organism – a traditional selection method, while DNA sequencing will help determine and improve genotype of plants and animals.

5KPMG services for agricultural companies


Consumption level of biodiesel and bioethanol depends entirely on regulating measures taken by the governments of developed nations and particular developing countries as regards the domestic energy market. The use of biofuel is driven by the state’s objectives to ensure energy independence, reduce carbon dioxide emissions and create additional income for agricultural producers. Most governmental resolutions set a mandatory mixing rate for conventional fuel (gasoline, diesel) and bioethanol or biodiesel. In the USA, 16% of harvested maize go for biofuel production, while Brazil uses 54% of sugar cane and 9 mil tons of vegetable oil to produce biofuel. According to estimates, in the next decade, the demand for grain, sugar cane and vegetable oil for biofuel production will grow by 12%, 28% and 14% respectively.

Evolution of agricultural production systems is characterized by greater integration between agricultural subsectors. Emerging complex and diversified agroindustrial chains imply qualitative and quantitative changes in the distribution of profitability between subsectors. More effective distribution led to the creation of production facilities based on a large scale agricultural production in parallel with minor agricultural producers and farmers operating with government support. Major agricultural producers accumulate a growing proportion of production and distributing facilities or even retail capacities. In general, such vertical integration is established at a national level, however, large international agricultural chains have started to emerge. Globalization in agriculture implies that the companies have to be big enough to compete on the global stage. With this in mind, the trend to consolidation of agricultural business will continue.

Globalization also affects suppliers of agricultural means of production, for example, seed and fertilizer suppliers, who also strive for consolidation at the global level, creating additional risks as regards the dependence on a limited number of suppliers for agricultural producers.

Sovereign wealth funds of some countries purchase agricultural assets of other states to ensure their food supply security by controlling necessary natural resources. This is also a part of an agricultural globalization trend.

Growth of biofuel consumption6

Globalization7



As of 2016 average global air temperature increased by 0.85°C as compared to 1880. Global warming has changed conventional weather patterns causing a growing number of extreme climatic events, such as drought or flood. Global warming forecast is far from being positive: in 2016–2035, the air temperature is expected to rise by 0.3–0.7°C. All the above in its turn will increase the risks for agricultural business including return on investment risks.

In most countries, the agricultural industry receives active support from the government. Free trade is possible if the exporting countries liberalize the agricultural sector. With that, WTO agreements are likely to cease being a liberalization driver as previous negotiations on changing the WTO global trade system have reached deadlock. Free trade agreements between countries or regions may replace WTO agreements. But this depends on a targeted diplomatic activities of a state.

In general, forecast on the development of global agriculture is quite optimistic. Strong growth drivers are in place for higher demand for agricultural products and its derivatives. Increase in income in Asia will change consumers’ preferences resulting in greater consumption of protein food and niche markets of premium food becoming mainstream. New technologies will create preconditions to reduce agricultural production costs, improve quality of products, mitigate risks and enhance efficiency of logistic chains. Consumers will become pickier and will select product manufacturers depending on the information about product origin and its benefits to health. Being a challenge to many agricultural producers, such changes in consumers’ demand will also provide a lot of opportunities.

Russia has potential to become a leader in global agricultural markets. Being number one in exporting wheat and corn, Russia continues to boost exports. If the Russian government and agricultural producers treat domestic agricultural industry as part of a global competitive market building and supporting agricultural business in their global competition for customers, Russia will have a strong opportunity to become a world’s agricultural leader.

Climate change8

Restricted global trade9




Introduction

Vitaly SheremetHead of Agribusiness, KPMG in Russia and the CIS

Russia has the potential to become of one of the strongest agricultural leaders globally. As of today, this potential has not been fully realised, however, steps taken to support and enhance competitiveness of agricultural companies signal that the state has a strong interest in this sector.

Over the recent years, KPMG in Russia and worldwide has been paying special attention to strengthening relations with agricultural producers. For these purposes, a dedicated team was set up to cooperate with agricultural companies that is capable of contributing its Russian and global sectoral experience to relations with our clients. Feedback provided by our clients indicates that industry-related experience is a significant competitive advantage of our team.

In this brochure, you will find information about our agricultural team and learn how KPMG can help you. We will use our best endeavours to deal with your challenges and contribute to the success of the agricultural sector in Russia and the CIS.



Contents:

– Audit

– Tax and legal

– Advisory

KPMG global agriculture practice12 KPMG in Russia and the CIS13 KPMG services for various lines of business14

KPMG publications 22

Corporate social responsibility23


KPMG strategy

KPMG seeks to maintain it’s leading position in rendering audit and advisory services to agricultural companies globally. Our aim is to provide high quality services by continuously sharing experiences and knowledge between our global teams and by improving the best practices and practical strategies that assist our clients in achieving their goals.

KPMG in Russia established the group to work with agricultural companies that belongs to a larger KPMG global agriculture group. The group comprises partners and managers, who are in charge of collaborating with agricultural companies in various lines of business. This ensures close ties between specialists from various functions and creates a comfortable environment for preparing efficient complex solutions to resolve problems that agricultural companies are facing today.

KPMG’s major global clients that receive our audit and advisory services include: Forfarmers B.V. (Netherlands), Bunge (USA), Fonterra Co-Operative Group (New Zealand), Olam (Singapore), Tyson Foods (USA), Monsanto and many others.

Examples of agricultural companies that are KPMG’s clients in Russia and the CIS:

– Agricultural Company Don

– Agro-Gard

– AgroKubanResurs

– AgroTerra

– AFG National Agro Holding

– Aston

– Avangard-Agro

– Belaya Ptica

– Cherkizovo

– Charoen Pokphand Foods

– Norebo

– Rusagro

– Solnechnye produkty (Sunny products)

Our aim is to provide high quality services

by continously sharing experiences

and knowledge between our global

teams and by improving the best

practices and practical strategies that assist

our clients in achieving their goals.


KPMG global agriculture practice


KPMG in Russia and the CIS


– Russia

– Belarus

– Azerbaijan

– Armenia

– Georgia

– Kazakhstan

– Kyrgyzstan

– Ukraine

– Uzbekistan

FIRST AUDIT FIRM IN RUS

SIA*


27 years in RussiaMore than 4,500

specialistsCIS:

9 countries 24 offices

Lvov

Kiev

Rostov-on-Don

TbilisiYerevan

Baku

Atyrau

Astana

Almaty

Bishkek

St. Petersburg

Minsk Moscow

Nizhny Novgorod

Yekaterinburg

Ufa

Perm

Krasnoyarsk

Novosibirsk

KazanVoronezh

Vladivostok

Yuzhno-Sakhalinsk

* RA Expert, Largest Audit Groups and Networks by Audit Revenue ranking, 2016

Tashkent


KPMG services for various lines of business

— Audit of financial statements prepared in accordance with international financial reporting standards (IFRS, US GAAP)

— Audit of financial statements prepared in accordance with Russian accounting principles (RAP)

— Audit Based Services — Accounting Advisory Services

Tax — Corporate & Business Tax — International Tax — Transfer Pricing — Indirect Tax — Technologies in Tax — Corporate Tax Compliance in Russia and abroad

— Tax Audit — Personal Taxation and HR Consulting

KPMG Law — Transaction support — Legal Support for IPOs, Restructuring — Dispute Resolution — Legal Due Diligence — Antitrust Compliance — Corporate Registration and Restructuring

— Drafting and implementation of Employee Incentive Plans

Tax and legal

Advisory

Deal Advisory — Transaction Services — Lead M&A Advisory — Valuations — Financing — Restructuring — Integration & Separation

Risk Consulting — Financial Risk Management — Forensic

— Corporate Governance & Sustainability

— Internal Audit, Risk & Compliance Services

Management consulting — Finance & Treasury Management

— IT Advisory — Operational Excellence — Strategy

Audit

To meet the expectations of our international clients, KPMG have created National Desks (Japanese, Korean, Italian, German, Turkish, Iranian, Chinese and Russia-Singapore Desks) with the purpose of serving our clients around the globe.


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15

AuditAn independent audit of the financialstatements increasesthere liability of information prepared by the company for itsinvestors, lenders and other interested parties pursuant to the applicable laws.

KPMG Advisory not only gives its clients reasonable assurance that their financial statements contain no material misstatements but also provides its opinion on certain matters that fall outside the scope of an ordinary auditor’s report.

As of today, IFRS financial statements audited by KPMG are a must-have for interaction with international and Russian partners when discussing various forms of financing any current or future projects.

KPMG services include:

Audit:– Audit of financial statements.

Internal audit:– Independent assessment of the internal audit function

– Creation of the efficient internal audit function.

Corporate governance:– Improving the system to manage sustainable development,

corporate social responsibility and environmental protection.

– Improving the corporate risk management system.

– Increasing the efficiency of investor relations and upgrading the credit rating.

– Preparation of annual reports and sustainable development reports.

Selected projects:

Avangard-Agro

IFRS audit

2012−2016

AgroTerra

IFRS audit

2012−2016

Agro-Gard

IFRS audit

2012−2015

AgroKuban Resurs

IFRS audit

2007−2015

Aston

IFRS audit

2007−2016

Charoen Pokphand Foods

IFRS audit

2007−2016

Belaya Ptica

IFRS audit

2015−2016

AFG NationalAgro Holding

IFRS audit

2014−2015

© 2018 KPMG. All rights reserved.© 2018 KPMG. All rights reserved.


Tax consultingThanks to the existing tax planning capabilities, KPMG renders services to its clients related to the development of business structures and strategies for minimizing tax expenses, including:

– Development and implementation of tax-effective contractual and operational structures (including in light of applying the 0% income tax and unified agricultural tax rate)

– Identification and assessment of tax risks (due diligence) of agricultural producers

– Development of a technical position in respect of disputable/non-statutory tax matters

– Tax inspection support, development of a defense position and representation of clients in tax disputes on pre-trial and trial phases

– Analysis and preparation of transfer pricing documentation


– Indirect taxation

– International taxation

– Tax and accounting support

– Tax dispute resolution

– M&A advice

– Transfer pricing

– HR management and taxation of individuals

Selected projects:

Syngenta

alysis for transfer pricing purposes and preparation

of a reporting package

Norebo Holding

Analysis for transfer pricing purposes and

preparation of a reporting package

Aviagen

Advice on tax matters, representation of clients in discussing disputable

issues with tax authorities

Major Russian agricultural holding

companyAnalysis for transfer pricing purposes and preparation

of a reporting package

Charoen Pokphand Foods

Restoration of bookkeeping and tax accountting,

verification of accuracy of assessing tax liabilities,

development of RAS and tax accounting policies,

assistance in configuring the SAP system

AFK Sistema

Tax due diligence of more than 20 agricultural

producers, drafting tax guarantees in respect of

transactions


company

Client representation in a dispute with tax

authorities


company

Advice on transfer pricing issues, preparation of

documents and drafting notices



Legal servicesKPMG experience in implementing agricultural projects allows increasing the efficiency of business management, mitigating any risks related to acquisition of assets and applying legally appropriate methods for investor protection. Our legal experience includes:

– Analyzing a legal status of over 450 thousand hectares of agricultural land (including issues of privatization, land allocation according to individual shares, re-classification of agricultural land, lease, etc.)

– Drafting sale and purchase agreements in respect of shares of agricultural producers subject to the nature of the business (preparing a list of warranties and conditions precedent for avoiding legal risks identified in respect of agricultural land, calculating the purchase price of an asset subject to agricultural production parameters and confirmed land bank)

– Developing the corporate governance structure of a major agricultural holding company


– Due diligence of assets

– Full legal support of transactions both locally and globally (acquisition of companies and assets, JV establishment, disposal of non-core assets)

– Legal support of business restructurings

– Development and assistance in implementing efficient corporate governance schemes

– Representation in disputes

Selected projects:

AFK Sistema

Legal due diligence and advice as of conditions of transactions for acquiring 18 agricultural companies

AFK Sistema

Full transactional support in acquiring an agricultural

group, legal support of closing, verification of

fulfillment of conditions precedent

AFK Sistema

Preparation of employment agreements with the management of agricultural companies based on remu- neration

linked to agricultural production performance

Russkaya zemlya (Russian land)

Due diligenceand drafting transaction all documents for acquiring an agricultural

producer

AgroTerra

Legal structuring of a group of companies engaged

in agricultural production, analysis and structuring of operational activities and

corporate governance

KrasnodarAgro (Steppe Group )

Legal services

Drafting a scheme for acquisition of agricultural

land

Private investor

Transactional support in acquiring an agroholding

from the Bank of Moscow

Investment fund

Legal due diligence of the Mistral group


Deal AdvisoryThe corporate finance department of KPMG in Russia and the CIS unites over 80 professionals. It is accredited by the global corporate finance department of KPMG, which confirms our extensive experience in closing transactions.

Support of other KPMG offices makes it possible for us to advise our clients on corporate deals all over the world. The global KPMG practice unites more than 2,700 professionals in 50 countries around the world.

We help companies that suffer financial problems, their investors, lenders and other interested parties in developing and implementing efficient and realistic plans of debt restructuring, key management decision-making, finance raising, etc.


– Assistance in raising finance

– Assistance in management decision-making

– Entry into new markets / vertical integration

– Optimization and increasing the efficiency of the operating business

– Transaction services

– Debt restructuring services

– Business restructuring services

Selected projects:

International investor

Financial, legal and tax due diligence of one of the leading Russian rice

manufacturers


companyLegal structuring of a group of companies

engaged in agricultural production, analysis and structuring of operational

activities

AFK Sistema

Financial, legal and tax due diligence of several agricultural companies,

legal support of acquisitions


companyDevelopment of the efficient operational and management

structure


company

Verification and confirmation of valuation results in respect of fixed

assets and biological assets of agricultural companies


company

Verification and confirmation of

impairment test results for IFRS reporting purposes


company

Verification and confirmation of

impairment test results for IFRS reporting purposes


company

Valuation of a share in the charter capital for IFRS investment accounting

purposes




Advice on fraud and corruptionrisk management issuesFraud and corruption risk management should be smoothly incorporated into the corporate culture. However, the business environment in Russia and the CIS is complex, and management standards do not get sufficient attention.

Mature corporate governance implies much more than just risk management. It also encompasses the creation of clear control systems to prevent fraudulent or corruption practices as well as compliance with the effective laws and regulations – all these factors are advantageous for companies, as the management may have the most complete information possible on the actual state of affairs and respond to potential threats on a timely basis.


– Analysis and building up a fraud and corruption risk management system

– Investigation of cases of fraud (grain elevator fraud)

– RADAR and social media analysis

– Assistance in dispute resolution in legal proceedings

– Intellectual data analysis

Selected projects:

Guidance on optimizing the fraud risk

management systemfor a production process

Major agroindustrial

complexAnalysis of the fraud risk management system for

raw material flow and storage processes


complexAnalyzing the process of storing and using

phytosanitary products to identify areas of high

fraud risks

Major foreign agricultural

holding company

Investigation of embezzlement of

agricultural products by subsidiaries

Investment fund (investing in

agricultural assets)

Analysis of accounting information and title

documents for land plots to identify fraud indicators

Major international

agricultural holding company

Analysis of potential deployment of production

facilities in Russia

Agroindustrial company

Analysis of procurements and grain production

processes

Agricultural holding company

Internal audit of purchases from major

suppliers


complex


Management consultingWe view agribusiness in terms of a value creation chain. This approach helps identifying interrelations and finding the right solutions for vertically-integrated and multi-profile holding companies. In today’s Russia mono-production is a rarity. Agricultural production is often linked to one or even several of the following sectors: trading, logistics/infrastructure, retail, financial services.

Our experience helps us considering industry-related specifics of each client’s segment and combining conflicting interests of separate lines of business.

Value creation chain in the agricultural sector

– Seeds – Fertilizers – Agricultural equipment

– Crop farming – Meat products – Dairy products

– Grain – Oil – Meat – Milk

– Bakeries – Meat processing – Milk processing

– Hyper/supermarkets – Agricultural markets

– Major city dwellers

– Town dwellers – Villagers

Suppliers

Farmers/ agricultural companies

Traders

Processors

Retail trade

Customers

The value creation chain in the agricultural sector covers various businesses, ranging from suppliers of fertilizers and agricultural equipment to retailers that should be able to meet numerous needs of consumers in the long term.


© 2016 АО «КПМГ», компания, зарегистрированная в соответствии с законодательством Российской Федерации, член сети независимых фирм КПМГ, входящих в ассоциацию KPMG International Coopeфrative (“KPMG International”), зарегистрированную по законодательству Швейцарии. Все права защищены. © 2018 KPMG. All rights reserved.

Selected projects:

Development of the efficient operational and management structure

Major Russian agroindustrial

holding company

Setting up an integrated service

center

Major Russian dairy manufacturer

Development of the efficient operational,

holding and management structure

Leading Russian financial

institution

Procurement optimization


company

KPMG renders a vast range of services that are highly demanded by our clients and have a common purpose of increasing the business value and assisting shareholders and top managers in dealing with their key challenges.

Operational efficiency increase

Management Consulting

Headcount and organizational

structure optimization

Analysis of accounting and

reporting efficiencyFinance function transformation

Development of the costs control

system

Budgeting and business planning

KPI system development

Management accounts system

Development strategy build-up

Supply chain management

SSC creation


© 2018 KPMG. All rights reserved.© 2016 АО «КПМГ», компания, зарегистрированная в соответствии с законодательством Российской Федерации, член сети независимых фирм КПМГ, входящих в ассоциацию KPMG International Coopeфrative (“KPMG International”), зарегистрированную по законодательству Швейцарии. Все права защищены. © 2018 KPMG. All rights reserved.

KPMG publications

Global agriculture page on KPMG’s website:

https://portal.ema.kworld.kpmg.com/Adv/GM/Pages/SubSectors/Agribusiness.aspx


© 2016 АО «КПМГ», компания, зарегистрированная в соответствии с законодательством Российской Федерации, член сети независимых фирм КПМГ, входящих в ассоциацию KPMG International Coopeфrative (“KPMG International”), зарегистрированную по законодательству Швейцарии. Все права защищены. © 2018 KPMG. All rights reserved.

Corporate social responsibility

Corporate social responsibility at KPMG is the very corporate value that largely determines our corporate culture.We follow principles of ethical conduct in our day-to-day work and recognize that business issues may be handled most efficiently only if everyone is involved and committed.Every time I pay a visit to a children’s hospital or a center for children with development disorders, sit on a jury of a contest of student projects or make decisions on KPMG environmental initiatives, I feel pride in our company and our people.At the same time, I understand that there is still so much to do.

Oleg Goshchansky Chairman and Managing Partner,


KPMG support provides 100 professionals of the Center for Curative Pedagogics - special-needs experts, speech therapists, psychologists, lawyers, experts in musical, physical and alternative therapy - with an opportunity to efficiently use their knowledge and experience. Thanks to their efforts, each year 1,300 handicapped children have a real chance to get prepared for school education and vocational training, find jobs and live decent lives. Such support means a chance for them to run a different life that is worth living.

Anna BitovaPresident,

Center for Curative Pedagogics

Projects that we are proud of:

– Support of programs launched by 18 socially-oriented service, institutional and environmental non-profit organizations.

– “Children in Hospitals” project. In collaboration with federal clinics, we repair playrooms and organize art therapy workshops for little patients.

– “People, not Things” project. In partnership with the best service non- profit organizations, we propose that our employees make social investments into the development of professional services for vulnerable children.

– Donor’s Days at KPMG. About 1,000 employees annually give blood for treatment of little patients from federal Moscow clinics.

– “Confident Start” project. Development of early intervention services in Russian regions.

– KPMG school for non-profit organizations. Professional development workshops and advice offered by the leading KPMG experts for non- profit organizations.

– Green initiatives. Enhancement of responsible environmental conduct among our employees (visits to animal shelters, Eco Lectures and other internal projects).

Our figures*

Volunteer hours

Employees’ donations

Corporate donations

2,071 1,598,600roubles

25,297,000roubles


As one of global leaders, KPMG is actively engaged in social responsibility activities.

* data for Russia for the 2017 financial year

© 2018 KPMG. All rights reserved.© 2016 АО «КПМГ», компания, зарегистрированная в соответствии с законодательством Российской Федерации, член сети независимых фирм КПМГ, входящих в ассоциацию KPMG International Coopeфrative (“KPMG International”), зарегистрированную по законодательству Швейцарии. Все права защищены. © 2018 KPMG. All rights reserved.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© 2018 KPMG. KPMG refers to JSC “KPMG”, “KPMG Tax and Advisory” LLC, companies incorporated under the Laws of the Russian Federation, and KPMG Limited, a company incorporated under The Companies (Guernsey) Law, as amended in 2008. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Contacts:RussiaVitaly SheremetPartner, Head of Agribusiness KPMG in Russia and the CIS Т: +7 495 937 4477E: [email protected]

kpmg.rukpmg.uakpmg.kzkpmg.az

UkraineAlexander GavrilyukPartner, Head of Agribusiness KPMG in UkraineТ: +38 044 490 5507E: [email protected]

KazakhstanAssel Khairova Managing Partner KPMG in Kazakhstan and Central AsiaТ: +7 727 298 0898E: [email protected]

AzerbaijanMurat Karakas Managing PartnerKPMG in Azerbaijan Т: +994 12 4048910 E: [email protected]

kpmg services for agricultural companies

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