Pharmaceutical production – SyrupWorld Co.

Introduction

The purpose of the valuation is a market value appraisal as of current date of the production machinery andequipment owned by a pharmaceutical company SyrupWorld Co. The market value of the line has to beanalyzed under the “in continued use” premise, purpose of valuation is financial reporting.

The subject plant produces 2 sorts of syrups and mistures, and it’s annual net production capacity is about 6thousand tonnes of syrup regardless of the sort, which amounts to 119.8 mln 50ml vials.

The plant is operated two 8-hour shifts a day, 5 days a week. The third shift is for the mandatory regularmaintenance and repair. Once a year the plant is fully stopped for 10-day annual maintenance and repair.

High-level scheme of the production process (core equipment only) is shown below.

The plant has some history and is a mix of new and older equipment. You have been provided with certainbasic information on the subject assets which is outlined in the following table (core assets). Book values areprovided as of valuation date.

Type of equipment Gross bookvalue, rubles

Net bookvalue, rubles

Commencementyear Capacity data

Mixer #1 7,342,045 4,405,227 2007 3 tonnes working volume,1.1 tonnes/h

Mixer #2 5,283,452 0 19883 tonnes working volume,0.8 tonnes/h

Intermediary Storage Tank #1 3,516,360 2,461,452 2005 4 tonnesIntermediary Storage Tank #2 6,408,811 5,539,713 2010 3 tonnesIntermediary Storage Tank #3 3,117,450 1,714,598 2002 3 tonnesVial Filling Line #1 8,600,000 1,720,000 2003 200 pieces/minVial Filling Line #2 12,500,000 8,750,000 2008 160 pieces/minVial Filling Line #3 11,000,000 7,700,000 2008 160 pieces/min

M #2

VFL #1

VFL #2

VFL #3

Packingand

palletizing

M #1

IST#1

IST#2

IST#3

Type of equipment Gross bookvalue, rubles

Net bookvalue, rubles

Commencementyear Capacity data

Packaging robot withpalletizer 7,500,000 6,750,000 2010 200 pallets/day

CIP washer 5,000,000 2,500,000 2006 corresponds to the coreequipment in place

Technological pumps 1,245,000 533,571 2007 corresponds to the processTechnological piping 1,000,000 428,571 2007 corresponds to the processWater preparation 1,475,003 1,032,502 2008 corresponds to the processElectrical networks 2,000,000 1,200,000 2005 corresponds to the processMonitoring and testingequipment 2,000,000 857,143 2007 corresponds to the process

Storage racks 5,000,000 2,000,000 2005 n/a

Lift trucks 4,000,000 3,000,000 2006, 2007,2008, 2009

Four 2-tonne JungheinrichEFG 220 trucks

After visiting the plant, having discussions with the respective personnel and working with appropriatedocumentation, you have identified the following points to consider:

Inventorynumber Asset name Country of origin Notes and comments

ME0001 Syrup mixer #1 GermanyMixing device was damaged recently and needs tobe changed. New mixing device cost is estimated

to be 1,500,000 rubles, including installation.

ME0002 Syrup mixer #2 Germany

There’s an overcapacity in regard to this mixer;instead of 3 tonnes, a 2.1-tonnes mixer would fit

the process best. Notwithstanding the long serviceof this mixer to date, it was well-maintained, and

technical specialists give 3 more years for thismixer to serve.

ME0003 Interim storage tank #1 France

All the three tanks may be replaced with two tanksof equivalent total capacity without negative

impact on operations, product mix, changeovertime etc.

ME0004 Interim storage tank #2 France dittoME0005 Interim storage tank #3 France ditto

ME0006 Vial filling line #1 Italy

Older line; changeover issues - newer lines provide20% improvement compared to older ones.

Associated annual loss amounts to 1,200,000rubles and it will take 4 years to fix the issue

(redesign the workscheme)

ME0007 Vial filling line #2 Italy

Filling lines #2 and #3 were bought together;according to the information from accountants, allinstallation and commissioning costs for both lines

were accumulated at line #2

ME0008 Vial filling line #3 ItalyAlso, applicable custom duties (capitalized) for

lines #2 and #3 changed from 7% to 3% since thepurchase date

ME0009Packaging robotcombined with palletizer USA No special comments

ME0011 CIP washing station Italy No special comments

Inventorynumber Asset name Country of origin Notes and comments

ME0013 Technological pumps ItalyAccording to overhaul/replacement history,

diminishing value depreciation profile is applicablebest (with residual value of 5%)

ME0014 Technological piping Various suppliersfrom Europe

Correspond to the process; typically is 12% of thecore equipment cost as new

ME0015 Water preparation Russia No special comments

ME0016 Electrical networks Various suppliersfrom Europe

Correspond to the process; typically is 7% of thecore equipment cost as new

ME0017 Monitoring and testingequipment Germany Correspond to the process; typically is 10% of the

core equipment cost as newME0018 Storage racks Russia No specific comments

various Lift trucks Germany Jungheinrich EFG 220 lift trucks used; there is anactive secondary market for these assets

Additional input data

By performing certain additional analysis, you have found out that the best market estimate of WACC forthe subject company would be 15%, and that end-of year convention for cash flows would be reasonable.

You have also analyzed normal useful lives and eventually come up with the following estimates:

Asset or asset class Normal Useful Life (NUL)expectations

Mixers 15Process storage tanks 25Filling lines 22Packaging equipment 12CIP washer 12Technological pumps 12Piping 10Water preparation 12Electrical networks 15Monitoring and testing equipment 7Storage racks 10Lift trucks 10

After making research on applicable pricing trends with respect to different geographies and type ofequipment, you have identified the following indices to consider:

Country oforigin Assets Source and

URL Index group

Germany,Italy, France

European,except pipingand electrical

networks

Eurostathttp://epp.eurostat.ec.europa.eu/portal/page/portal/short_term_business_stati

stics/data/database

Non-domestic output price index -euro area / Manufacture of machinery

for food, beverage and tobaccoprocessing

Germany,Italy, France

Piping andelectricalnetworks

Eurostat-- //--

Non-domestic output price index -euro area / MIG - Capital goods

UnitedStates ofAmerica

Produced inUSA

Bureau of Labor Statisticshttp://www.bls.gov/ppi/#tables

Machinery and equipment / Packing,packaging and bottling machinery

RussiaProduced in

Russia

Rosstathttp://www.gks.ru/dbscripts/cbsd/DBIn

et.cgi

Индексы цен производителей повидам экономической деятельности

/ Производство прочегооборудования общего назначения

In the course of your analysis, you are required to do the following:

1. Decide what valuation approach or approaches would serve best for each asset/asset class.2. Research on particular statistics and indices and develop price trends; implement trending

procedure for the subject assets within the Cost approach framework.3. Implement direct cost calculations for those assets that are not marketable and for which trending

is not the best procedure for cost new estimation.4. Calculate all types of depreciation and obsolescence applicable to the subject assets.5. Perform research on prices for marketable assets and do calculations within the Market approach

framework using market-derived curves.6. Based on the initial information and results of your calculations, conclude on the value of the

subject assets and outline questions that may be subject to further discussion.

SOLUTION

You start your valuation analysis with deciding on valuation approaches and methods that seem to be mostappropriate to use in respect to the subject assets under given circumstances:

Asset name or category Notes and comments

MixersCost approach, consider replacement cost new and curable

physical depreciation elements; linear depreciation as a generalapproach

Interim storage tanks Cost approach, consider replacement cost new; lineardepreciation as a general approach

Vial filling linesCost approach, indirect method with additional analysis of costscapitalized in the books; consider functional obsolescence; linear

depreciationPackaging robot combined with palletizer Cost approach with indirect method; linear depreciationCIP washing station Cost approach with indirect method; linear depreciationTechnological pumps Cost approach, indirect method; diminishing value calculations

Technological piping Cost approach; direct cost from RCN analysis for the coreequipment; linear depreciation profile

Water preparation Cost approach with indirect method; linear depreciation

Electrical networks Cost approach; direct cost from RCN analysis for the coreequipment; linear depreciation profile

Monitoring and testing equipment Cost approach; direct cost from RCN analysis for the coreequipment; linear depreciation profile

Storage racks Cost approach with indirect method; linear depreciationLift trucks Market approach with development of a market curve

Indirect method – trending procedure

There are items of machinery and equipment which were imported from abroad. In order to performtrending procedure correctly, we need to take into account both country of origin price trends as well ascurrency exchange dynamics.

Based on Central Bank of Russia data (www.cbr.ru), we have calculated average exchange rates for allavailable years and subject currencies (straightforward average value without any smoothing), and came upwith the following numbers:

year Average xrate – EUR Average xrate – USD2000 25.9922 28.12872001 26.1296 29.17532002 29.6900 31.36082003 34.6817 30.67192004 35.8173 28.80802005 35.1636 28.31362006 34.1144 27.13552007 35.0297 25.55162008 36.4466 24.87402009 44.1987 31.76692010 40.2157 30.3765

2011 40.9038 29.39482012 39.8618 31.1079

In the process of developing price trends, we have decided to use half-year numbers for all years except2011 and end-of-year number for 2011 (exactly as of valuation date). Raw data take from various onlinedatabases (Eurostat, BLB, Rosstat) was summarized in the following table (raw data from Rosstat wasaligned to end-of-January 2002 base level).

GEOEuro area

(17countries)

Euro area(17

countries)Germany France Italy USA Russia

Tag MIG-CG FB&T FB&T FB&T FB&T PP&B PPI-M1999Q2 - - - 75.22 - - -2000Q2 98.54 - 97.11 74.07 - - -2001Q2 99.35 - 98.35 84.22 - - -2002Q2 100.36 97.48 99.38 84.37 97.40 190.10 101.742003Q2 100.50 99.66 101.62 97.93 97.90 191.30 112.042004Q2 100.17 99.48 99.94 96.24 99.47 197.00 123.732005Q2 99.95 99.91 99.70 - 100.10 200.20 135.732006Q2 99.96 102.86 104.50 - 101.53 204.60 148.512007Q2 99.89 107.15 107.64 - 106.43 206.80 174.392008Q2 100.04 114.92 108.20 - 122.40 221.70 212.462009Q2 101.05 114.46 110.77 - 118.60 228.40 231.732010Q2 101.20 114.39 109.63 - 119.57 232.70 247.382011Q2 102.07 115.91 111.50 - 120.34 237.80 257.692011Q4 102.37 117.72 112.20 - 122.94 242.40 258.812012Q2 103.42 118.65 113.16 - 123.80 245.60 261.93

Based on the above, Reproduction cost new for the subject assets within the indirect method of the Costapproach is derived as follows:

Asset Name Date On Countryof origin

CurrencyAveragexrate -

date on

Averagexrate -

val.date

Trendtag

SourceIndex

Value -date on

IndexValue -

val.dateSyrup mixer #1 2007 Germany EUR 35.0297 39.8618 FB&T Eurostat 107.64 113.16

Syrup mixer #2 1988 Germany EUR - 39.8618 FB&T Eurostat #N/A 113.16

Interim storage tank #1 2005 France EUR 35.1636 39.8618 FB&T Eurostat 99.91 118.65

Interim storage tank #2 2009 France EUR 40.2157 39.8618 FB&T Eurostat 114.39 118.65

Interim storage tank #3 2002 France EUR 29.6900 39.8618 FB&T Eurostat 97.48 118.65

Vial filling line #1 2003 Italy EUR 34.6817 39.8618 FB&T Eurostat 97.90 123.80

Vial filling line #2 2007 Italy EUR 36.4466 39.8618 FB&T Eurostat 122.40 123.80

Vial filling line #3 2007 Italy EUR 36.4466 39.8618 FB&T Eurostat 122.40 123.80Packaging robot combinedwith palletizer 2010 USA USD 30.3765 31.1079 PP&B BLS 232.70 245.60

CIP washer 2006 Italy EUR 34.1144 39.8618 FB&T Eurostat 101.53 123.80

Technological pumps 2007 Italy EUR 35.0297 39.8618 FB&T Eurostat 106.43 123.80

Technological piping 2007 Europe EUR 35.0297 39.8618 MIG-CG Eurostat 99.89 103.42

Water preparation 2008 Russia RUR - - PPI-M Rosstat 212.46 261.93

Electrical networks 2005 Europe EUR 35.1636 39.8618 MIG-CG Eurostat 99.95 103.42Monitoring and testingequipment

2007 Germany EUR 35.0297 39.8618 FB&T Eurostat 107.64 113.16

Storage racks 2005 Russia RUR - - PPI-M Rosstat 135.73 261.93

Lift trucks various Germany EUR - 39.8618 - - - -

Asset NameGross bookvalue, as of

reporting date

xratetrendfactor

pricetrendfactor

finaltrendfactor

RCN indirect

Syrup mixer #1 7,342,045 1.138 1.051 1.196 8,783,281

Syrup mixer #2 5,283,452 n/a n/a n/a n/a

Interim storage tank #1 4,922,904 1.134 1.188 1.346 6,627,408

Interim storage tank #2 5,831,277 0.991 1.037 1.028 5,995,213

Interim storage tank #3 3,117,450 1.343 1.217 1.634 5,094,463

Vial filling line #1 8,600,000 1.149 1.265 1.453 12,499,508

Vial filling line #2 12,500,000 1.094 1.011 1.106 13,827,674

Vial filling line #3 11,000,000 1.094 1.011 1.106 12,168,353

Packaging robot combined with palletizer 7,500,000 1.024 1.055 1.081 8,106,366

CIP washer 5,000,000 1.168 1.219 1.425 7,123,861

Technological pumps 1,245,000 1.138 1.163 1.324 1,647,959

Technological piping 1,000,000 1.138 1.035 1.178 1,178,157

Water preparation 1,475,003 1.000 1.233 1.233 1,818,429

Electrical networks 2,000,000 1.134 1.035 1.173 2,345,931

Monitoring and testing equipment 2,000,000 1.138 1.051 1.196 2,392,598

Storage racks 5,000,000 1.000 1.930 1.930 9,649,117

Lift trucks 4,000,000 n/a n/a n/a n/a

Note that not possible to apply indirect method to all of the assets, some items do have this number.

Direct method – cost-to-capacity, replacement vs.reproduction considerations and adjustments

There is a number of Replacement cost new considerations that arise from known information regardingthe subject equipment:

1. Syrup mixer #2.

This mixer is quite old and we were not able to estimate its cost as new by using indirect method. We willtake our Syrup mixer #1 as a modern equivalent and build cost new estimate for M#2 on this basis via cost-to-capacity method:

Applicable cost-to-capacity factor: 0.66Replacement cost for M#2: 8,783,281 (via indirect method) * (2.1/3)^0.66 = 6,940,991 rubles

2. Interim storage tanks.

Replacing three tanks with two:

Total working volume: 4+3+3 = 10 tonnesRequired working volume per tank: 5 tonnesRCN for a 3-tonne tank (IST#2): 5,995,213 rublesApplicable cost-to-capacity factor: 0.66Replacement cost for a 4-tonne tank: 5,995,213 * (5/3)^0.66 = 8,398,946 rublesTotal cost to be distributed over 3inventory items: 8,398,946 * 2 = 16,797,891 (two tanks required)

Proportion of costs to be distributed: #1/#2/#3 as 1.209/1/1 or 0.377/0.312/0.312 (using cost-to-capacity)Replacement cost new for tanks: #1 – 6,328,956 rubles; #2 and #3 – 5,234,468 rubles each

3. Vial filling lines

Vial filling lines can be valued via indirect method; however, certain reallocation of costs needs to beconducted.

Estimated RCN – VFL #2 13,827,674 rublesEstimated RCN – VFL #3 12,168,353 rublesInstallation and commissioning costs: 1,659,321 rublesI&CC per line: 829,660 rublesRemoving 7% out of VFL #3 cost: 11,372,292 rublesAdding 3% to VFL #3 cost: 11,713,461 rublesAdding I&CC and arriving at RCN directfor VFL #3 (and FVL #2 as they are thesame):

12,543,122 rubles

4. Piping, electrical networks, monitoring and testing equipment

Replacement cost new for these items would stem from RCNs for the core equipment:

RCN for the core equipment (mixers,storage tanks, filling lines, CIP washer,packaging):

85,338,142 rubles

Piping – 12%: 10,240,577 rublesElectrical networks – 7%: 5,973,670 rublesMonitoring and testing equipment –10%: 8,533,814 rubles

Determining depreciation

1. General Age/Life.

General equation used with the age/life analysis is the following: NUL = EA + RUL, where NUL is expectationof total life for a given asset in the beginning of its life (Normal Useful Life); EA – effective age (in contrast tochronological age); RUL = remaining useful life.

We have already identified NULs for the subject equipment; we also know that RUL estimation for the oldermixer is 3 years. This seems to be the only asset where effective age differs from chronological age.

All age/life calculations may be summarized as follows:

Asset Name DateOn

NUL RUL(linear)

RUL(manual)

RUL(final)

Physicaldepreciation -

percentageSyrup mixer #1 2007 15 10 10 33%Syrup mixer #2 1988 15 -9 3 3 80%Interim storage tank #1 2005 25 18 18 28%Interim storage tank #2 2010 25 23 23 8%Interim storage tank #3 2002 25 15 15 40%Vial filling line #1 2003 22 13 13 41%Vial filling line #2 2008 22 18 18 18%Vial filling line #3 2008 22 18 18 18%Packaging robot combined with palletizer 2010 12 10 10 17%CIP washer 2006 12 6 6 50%Technological pumps 2007 12 7 7 71%*Technological piping 2007 12 7 7 42%Water preparation 2008 12 8 8 33%Electrical networks 2005 15 8 8 47%Monitoring and testing equipment 2007 7 2 2 71%Storage racks 2005 10 3 3 70%Lift trucks various 10 - - -

2. Curable physical depreciation.

Syrup mixer #1 needs new mixing device – this is curable part of physical depreciation:

New mixing device cost: 1,500,000 rublesRCN of new mixer: 8,783,281 rubles

RCN of M #1 less physical depreciation:7,283,281 rubles – this number is subject to adjustments according toage/life percentage as shown above

3. Excess operating costs.

Assessing excess operating costs for one of the filling lines (VFL #1) - it will take 4 years to fix the issue(redesign the workscheme):

Annual changeover loss: 1,200,000 rublesDiscount rate - WACC: 15%Remaining useful life: 4 years (from age/life)Cash flows: year 2013 2014 2015 2016

loss 1,200,000 1,200,000 1,200,000 1,200,000discountrate 15% 15% 15% 15%

discountfactor 0.870 0.756 0.658 0.572

discountedloss 1,043,478 907,372 789,019 686,104

Accumulated loss – functionalobsolescence: 3,425,974 rubles

4. Diminishing value.

Diminishing value depreciation is calculated according to the following equation:

DV (%) = Residual Value ^ (Age/NUL), where Residual Value represents value of a given item as a portion ofits cost new in the end of its useful life (when Age=NUL). For the subject pumps, calculations are as follows:

Residual value 5% of Replacement cost newAge 5 yearsNUL 12 yearsDV (%) 5% ^ (5/12) = 0.29, or 29%Physical depreciation (%) 1 – DV = 0.71, or 71%

Conclusion on the Cost approach application

All calculations summarizing application of the Cost approach are summarized in the following table.

Asset NameRCN

indirect RCN direct RCN finalPhysical

depreciation -"direct dollar"

Physicaldepreciation- percentage

Functionalobsolescence -"direct dollar"

Market value – Costapproach (before

economic obsolescence)Syrup mixer #1 8,783,281 - 8,783,281 (1,500,000) 33% 4,856,000

Syrup mixer #2 n/a 6,940,991 6,940,991 80% 1,388,198

Interim storage tank #1 6,627,408 6,328,956 6,328,956 28% 4,556,848

Interim storage tank #2 5,995,213 5,234,468 5,234,468 8% 4,815,710

Interim storage tank #3 5,094,463 5,234,468 5,234,468 40% 3,140,681

Vial filling line #1 12,499,508 - 12,499,508 41% 3,425,974 3,960,099

Vial filling line #2 13,827,674 12,543,122 12,543,122 18% 10,262,554

Vial filling line #3 12,168,353 12,543,122 12,543,122 18% 10,262,554

Packaging robot combinedwith palletizer 8,106,366 - 8,106,366 17% 6,755,305

CIP washer 7,123,861 - 7,123,861 50% 3,561,930

Technological pumps 1,647,959 - 1,647,959 71%* 472,989

Technological piping 1,178,157 10,240,577 10,240,577 42% 5,973,670

Water preparation 1,818,429 5,973,670 5,973,670 33% 3,982,447

Electrical networks 2,345,931 - 2,345,931 47% 1,251,163

Monitoring and testingequipment 2,392,598 8,533,814 8,533,814

71% 2,438,233

Storage racks 9,649,117 - 9,649,117 70% 2,894,735

Lift trucks n/a - - - See Market Approach

Market approach

In order to gather information on the subject lift trucks, you decided to use Supralift web site(http://213.198.74.170) containing a lot of secondary-market data, and searched for used EFG 220 truckslocated in Russia. As a result of this research, you have produced the following table containing raw data forthe analysis:

Assetname

Capacity,kg Height Manufac-

ture datePrice

(excl.VAT)Curren-

cyEUR /RUR Age

Price(excl.VAT),

rublesEFG 220 2000 3000 2001 460,660 RUB 40.904 10 460,660EFG 220 2000 3300 2002 12,300 EURO 40.904 9 503,117EFG 220 2000 3100 2002 12,300 EURO 40.904 9 503,117EFG 220 2000 4500 2004 16,700 EURO 40.904 7 683,093EFG 220 2000 3600 2004 14,100 EURO 40.904 7 576,744EFG 220 2000 4500 2004 15,400 EURO 40.904 7 629,919EFG 220 2000 3000 2004 14,100 EURO 40.904 7 576,744EFG 220 2000 4350 2005 16,200 EURO 40.904 6 662,642EFG 220 2000 5000 2005 17,200 EURO 40.904 6 703,545EFG 220 2000 4800 2005 16,200 EURO 40.904 6 662,642EFG 220 2000 3300 2005 16,950 EURO 40.904 6 693,319EFG 220 2000 6000 2005 18,450 EURO 40.904 6 754,675EFG 220 2000 3000 2005 13,900 EURO 40.904 6 568,563EFG 220 2000 3600 2005 14,900 EURO 40.904 6 609,467EFG 220 2000 5000 2006 18,450 EURO 40.904 5 754,675EFG 220 2000 4350 2006 18,450 EURO 40.904 5 754,675EFG 220 2000 5750 2008 21,800 EURO 40.904 3 891,703EFG 220 2000 4500 2008 21,800 EURO 40.904 3 891,703EFG 220 2000 3000 2010 19,653 EURO 40.904 1 803,868

For the purposes our your analysis, you have made the following assumptions: the only key parameter thatdrives a lift truck’s value is its model and lifting capacity (EFG 220, 2 tonnes), and all other differences incomparables may be treated as negligeable; there is no apparent outliers in the comparables, so you take allthe data from the table for the analysis. As a next step, you plot the data on a graph (price vs. age) andselect a trend line that fits best.

Using derived trend parameters (general equation is y=A*exp(lambda*x), so in our case A=1,095,320.3596and lambda=-0.07597, and x is Age), we estimate market value for the subject lift trucks. Results are shownbelow.

Asset name Capacity,kg Height Manufacture

date Age MV, rubles MV, rubles(rounded)

EFG 220 #1 2000 3000 2006 2006 6 659,519EFG 220 #2 2000 3000 2007 2007 5 712,451EFG 220 #3 2000 3000 2008 2008 4 769,631EFG 220 #4 2000 3000 2009 2009 3 831,400

Total market value for the subject lift trucks: 2,973,000 rubles.

External obsolescence considerations

This is one of questions that needs to be investigated further; no adjustments are required within this casestudy.

y = 1,095,320.35960e-0.07597x

R² = 0.78839

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

1,000,000

0 2 4 6 8 10 12

Price (excl.VAT), rubles

Price (excl.VAT),rubles

Expon. (Price(excl.VAT), rubles)

Conclusion of the case study

Asset class Asset Name Gross bookvalue, as ofreporting

date

Net bookvalue, as ofreporting

date

Date On MarketValue final(rounded)

ME_Core Syrup mixer #1 7,342,045 4,405,227 2007 4,856,000ME_Core Syrup mixer #2 5,283,452 0 1988 1,388,000ME_Core Interim storage tank #1 4,922,904 3,446,033 2005 4,557,000ME_Core Interim storage tank #2 5,831,277 5,539,713 2010 4,816,000ME_Core Interim storage tank #3 3,117,450 1,714,598 2002 3,141,000ME_Core Vial filling line #1 8,600,000 1,720,000 2003 3,960,000ME_Core Vial filling line #2 12,500,000 8,750,000 2008 10,263,000ME_Core Vial filling line #3 11,000,000 7,700,000 2008 10,263,000

ME_Core

Packaging robotcombined withpalletizer 7,500,000 6,750,000 2010 6,755,000

ME_Core CIP washer 5,000,000 2,500,000 2006 3,562,000ME_Support Technological pumps 1,245,000 533,571 2007 473,000ME_Support Technological piping 1,000,000 428,571 2007 5,974,000ME_Support Water preparation 1,475,003 1,032,502 2008 3,982,000ME_Support Electrical networks 2,000,000 1,200,000 2005 1,251,000

ME_SupportMonitoring and testingequipment 2,000,000 857,143 2007 2,438,000

ME_Support Storage racks 5,000,000 2,000,000 2005 2,895,000ME_Support Lift trucks 4,000,000 3,000,000 various 2,973,000

87,817,131 51,577,358 73,547,000

Total Market value of fixed assets is 74 million RUB (rounded)