ASTARTA Energy efficiency and bioenergy opportunities

Khmelnytskyi region

Vinnytsya region

Poltava region

Kharkivregion

ASTARTA's business units

Globino processing plant

Bioenergy plant

Head office

Kyiv

2 ASTARTA history and business structure The Group’s assets location The Group’s history

• 1993 - foundation of the Group

• 1996 - started agricultural business

• 1999 - first sugar plant in Poltava region

• 2003 – 2005 - four additional sugar plants

• 2006 - Astarta’ IPO on Warsaw Stock

Exchange

• 2007 - the Group actively expands by

acquiring new agricultural companies and

increasing the area of agricultural land in

lease

• 2008 - sugar plant and farming assets in

Western Ukraine

• 2009 - consolidation of production assets

into integrated business units

• 2011 - two sugar plants and agri-assets in

Kharkiv region

• 2012 - initiated soybean processing and

biogas generation projects

• 2013 - sugar plant in Poltava region,

commissioning of soybean processing and

biogas plants

Khmelnytsky region

• Narkevychi sugar plant

6.600 tonnes/day

Vinnytsa region

• Zhdanivsky sugar plant

3.500 tonnes/day

• Kobelyaky sugar plant

8.000 tonnes/day

• Yaresky sugar plant

4.500 tonnes/day

• Novoorzhytsa sugar plant

6.500 tonnes/day

• Globyno sugar plant

6.000 tonnes/day

• Veselopodilsky sugar plant

3.000 tonnes/day

Kharkiv region

• Novoivanivsky sugar plant

2.500 tonnes/day

• Savinsky sugar plant

3.500 tonnes/day

Poltava region

*ASTARTA ‘s business unit usually combines: agricultural land under cultivation, grain storage facilities, machinery and transportation vehicles, sugar plant, forage factory, and cattle farms

Sugar

production

60%

Agriculture

26%

Dairy

11%

Other

3%

Sugar

production

29%

Agriculture

57%

Dairy

14%

Cattle farming

Sugar

production Agriculture

Products:

Milk

Meat

Products:

Oil

Meal

Husks

Sugar beet

Fertilisers

Biogas

Soybean

ProcessingHusks (as

fuel)

Wastes

Methane

Soybean mealPulp

Beet pulp

Soybean

Feed

Products:

Sugar

Pulp

Molasses

BiomassFertilizers

Fertilizers

Gross Revenue and EBITDA breakdown, 2013

• One of the largest agriproducers in Ukraine

• 245 ths ha under management, 100% cultivated

• About 760 ths tonnes of grain and oil crops and 2.1 million tonnes of sugar beet harvested in 2013

• Up to 400 ths tonnes of grain storage facilities

• More than 3000 units of agricultural equipment in operation; own transport fleet of 700+ trucks, GPS precision farming operations

• The biggest Ukrainian public producer of milk with 3% share in industrialized milk production

• Integrated player with own fodder production and high milk yields

• Total cattle headcount of 31 ths

• 91 ths tonnes of milk produced in 2013

3 ASTARTA market position and business model

ASTARTA business model Leading integrated agri-industrial producer

• The largest and cost-efficient sugar producer, 25% share in Ukraine in 2013

• Sugar output 305 ths tonnes in 2013 campaign

• Nine sugar plants, daily processing capacity exceeding 43.5 ths tonnes of sugar beet

• High self-sufficiency in beet production and sugar storage

AG

RIC

ULT

UR

E

SU

GA

R P

RO

DU

CTIO

N

DA

IRY

FA

RM

ING

Gross revenue excludes intersegment revenue of sugar beet at cost of EUR 116 million

EBITDA includes IFRS revaluation of biological assets (IAS 41)

Revenue EBITDA

Industrial vs. direct consumption of sugar in Ukraine

4 Ukrainian sugar market overview

Players in the sugar market, volume

Sugar production in Ukraine

Key considerations

(million tonnes)

• Ukraine has high quality land and favorable climate conditions for sugar beet farming

• Market characterised by continuously increasing share of industrial consumption

• Upon WTO accession, Ukraine had agreed to a quota of 270 ths. tonnes of raw sugar to be imported under a 2% tariff rate. Imported sugar above this level is charged with a 50% tariff

• In 2013/2014 marketing year ASTARTA will sell record high amount of sugar – about 370 ths. tonnes

Source: Ukrtsukor, Company data

Source: Ukrtsukor, Company data

Source: Ukrtsukor, Company estimations

2012 2013

ASTARTA; 19%

Ukrlandfarming;

9%

Mriya; 8%

Ukrprominvest;

7%

Kernel; 5%Radekhov-

tsukor; 5%

Other; 47%

ASTARTA; 26%

Radekhov-

tsukor; 15%

Ukrprominvest;

13%

Mriya; 7%

Svitanok; 6%

Other; 33%

25%

30%

35%

40%

45%

50%

55%

60%

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08

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09

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20

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2,0

2,6

1,91,6

1,31,5

2,3 2,2

1,2

0,0

0,5

1,0

1,5

2,0

2,5

3,0

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05

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Bioenergy plant

Waste-to-energy opportunities

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• The processing capacity is 1 200 tonnes of beet pulp per day

• Daily capacity for biogas production upto 150 000 м³

• Biogas is replacing up to 50 % of natural gas used by sugar plant

• Production of 250 tonnes fertilizers per day

• Positive environmental effect due to closed cycle of production, reduction of natural gas

consumption

6 Bioethanol project at ASTARTA

• ASTARTA's potential synergetic model for

Globino foresees combination of Sugar

factory + Biogas factory + Bioethanol factory

• Biogas factory to utilize 100 % of wastes from

Sugar and Bioethanol factories

Key features:

• Own feedstock – beets, sugar juice, green

syrup, molasses

• Distillery waste utilization by methanization

facility

• Modern distilling technology with lower

energy consumption (proposed by Maguine)

• Cheaper source of energy – biogas from beet

pulp methanization

• Product: Component Motor Fuel Alternative

• Daily production: 10 000 dal (80 т)

• Daily molasses consumption 335 т

• Daily biogas consumption 30 500 m3

• Working days 330

Key technical parameters for bioethanol project

Bio-organic projects of ASTARTA

• Soybean inoculants, liquid:

• Stubble destructants

• Biological fungicides

• Probiotics

7 Way forward Key features:

• Pulp is processing 90-100 days of sugar production campaign

• Complex will be utilizing wastes 230 days out of sugar campaign and produce biogas for local needs -

built oil extraction plant and future bioethanol plant.

• Sugar beet pulp, beets peaces, leafs, corn harvest leftovers, bioethanol distillery stillage, pretreated

wood chips (R@D stage) can be used as raw material for biogas complex out of sugar season

• Strategic development options are:

the construction of bioethanol plant to fulfill the synergy with sugar plant and biogas facility

Construction of second biogas pipeline to oil extracting factory and biogas driven cogeneration units

installation

•Project CAPEX is approximately 25 – 30 million EURO

2014 Synergy

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9

Waste water cleaning

Water pond

molasses, green syrup

SUGAR BIOETHANOL

soya beans

be

ets

Soya oil,

protein feed

(no GMO)

2015 Synergy 9

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Present R@D directions of the company

Fast growing poplar as a source of cellulosic biomass

C6 + C5 sugars

Second generation bioethanol

Depolymerized organics

BIOGAS

Cutted and branches cleaned

trees

Raw material for paper

production

Wood wastes, bark and branches

Syngas, Furness oil

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Green goals and targets of Astarta

1) Reduction of natural gas, coal, lime and water consumption per ton of processed

beets at company’s factories.

2) Replacing natural gas with green biogas at company’s factories - 50% at Globino

sugar factory season of 2014 and 80% replacement at oil extracting factory in

Globino starting 2015.

3) Production of green electricity, steam and heat at company’s factories.

4) Replacement of mineral fertilizers with green fertilizer after anaerobic process.

5) Lower the water consumption balance by returning cleaned water back in to the

lake.

6) Consider biogas as source of energy for green electricity, heat and steam

production in bioethanol factory of first generation.

7) Waste utilization in anaerobic reactors and usage of biogas for heat and

electricity production gives any factory green points and half step up in

generation.

8) Earning a CO2 quotes, by consuming volumes of it, while growing poplar.

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Directions of cooperation between FAO, EBRD

and ASTARTA

ASTARTA’s cooperation with FAO and EBRD 12

•Accessing quality expertise

•Exchange experience

•Participation in round tables, conferences

•Training programs for specialists

•Financing programs

Managing ecological risks

Corporate social responsibility

Addressing social problems

• ASTARTA is an active member of the UN Global Compact:

• In January 2008, ASTARTA joined the Global Compact of the United Nations

• By signing this Compact, our Company committed itself to adhere to, support, and implement basic values in the areas of human rights protection, employment, environment protection, and fighting corruption as part of its operations

• The Company develops social infrastructure in those areas where its enterprises operate, and is concerned with improving the wellbeing of the community:

• In 2009, we initiated signing Social Responsibility Agreements with the municipalities where our production assets are located

• Under these agreements, the Company committed to assist those municipalities in developing their social programs and public infrastructure

• ASTARTA implements energy efficiency programs aimed to cut natural gas consumption at its sugar mills

• The programs’ realization is to provide the following results:

• decrease in sugar prime cost by means of efficiency increase

• quality improvements by means of application of more advanced production technologies and

• decrease in pollutants and emission of green-house gases into atmosphere

• As Ukraine is an active member of the Kyoto Protocol, the Company signed an agreement with the Multilateral Carbon Credit Fund (MCCF) established by the EBRD and the EIB, to sell carbon credits

• The agreement, which covers the carbon credits generated during the period between 2008 through 2012, is the first deal of the MCCF in Ukraine

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THANK YOU FOR ATTENTION!

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