AS ASTAR ARTA Energy ergy efficiency iency and bioenergy energy - PowerPoint PPT Presentation

AS ASTAR ARTA Energy ergy efficiency iency and bioenergy energy oppor ortunit tunities ies

AS ASTAR ARTA A hist story ry and busi siness ness st struct ucture ure 2 The Group’s history The Group’s assets locatio ion • 1993 1993 - foundation of the Group Vinny nnytsa region ion Khmel elny nytsky region ion • 1996 1996 - started agricultural business • Zhdaniv anivsky sug ugar ar plant nt • Narkev evychi i suga gar plant nt 3.500 tonnes/day 6.600 tonnes/day • 1999 1999 - first sugar plant in Poltava region • 2003 2003 – 2005 2005 - four additional sugar plants • 2006 2006 - Astarta’ IPO on Warsaw Stock Kharkiv Exchange region Poltava region • 2007 2007 - the Group actively expands by Kyiv acquiring new agricultural companies and increasing the area of agricultural land in Vinnytsya region lease Khmelnytskyi region • 2008 2008 - sugar plant and farming assets in Western Ukraine • 2009 2009 - consolidation of production assets ASTARTA's business units into integrated business units Globino processing plant Head office Bioenergyplant • 2011 2011 - two sugar plants and agri-assets in Kharkiv region Poltav ava a regio ion Kharkiv iv region on • 2012 • Kobely lyak aky suga gar plant • Globyno no suga gar plant nt 2012 - initiated soybean processing and • Novoivaniv anivsky suga gar plant nt 8.000 tonnes/day 6.000 tonnes/day biogas generation projects 2.500 tonnes/day • Yaresky suga gar plant nt • Veselo lopodils lsky suga gar plant nt • Savins nsky suga gar plant nt 4.500 tonnes/day 3.000 tonnes/day • 2013 2013 - sugar plant in Poltava region, 3.500 tonnes/day • Novoorzhy zhytsa suga gar plant nt commissioning of soybean processing and 6.500 tonnes/day biogas plants *ASTARTA ‘s business unit usually combines: agricultural land under cultivation, grain storage facilities, machinery and transportation vehicles, sugar plant, forage factory, and cattle farms

AS ASTAR ARTA A ma mark rket et posi sition ion and busi siness ness mo model el 3 ASTAR ARTA business ess mode del Leading ading integ egrat ated d agri-indu industria strial l produce oducer Beet pulp Wastes • One of the largest agriproducers in Ukraine Biogas • 245 ths ha under management, 100% cultivated ICULTURE • About 760 ths tonnes of grain and oil crops and Fertilizers Biomass 2.1 million tonnes of sugar beet harvested in 2013 Methane AGRICU • Up to 400 ths tonnes of grain storage facilities Soybean Sugar beet Sugar Soybean • More than 3000 units of agricultural equipment in Agriculture production Processing operation; own transport fleet of 700+ trucks, GPS Husks (as precision farming operations Fertilisers fuel) Products: Products: Sugar Oil Pulp Feed Fertilizers • The largest and cost-efficient sugar producer, 25% Meal ION RODUCTION Molasses Husks share in Ukraine in 2013 • Sugar output 305 ths tonnes in 2013 campaign Cattle farmi ming R PRO • Nine sugar plants, daily processing capacity Soybean meal Pulp exceeding 43.5 ths tonnes of sugar beet SUGAR Products: • High self-sufficiency in beet production and sugar Milk Meat storage Gross oss Revenue e and d EBIT ITDA A break eakdo down, wn, 2013 Other Dairy Dairy 3% 14% 11% MING • The biggest Ukrainian public producer of milk with Y FARMIN 3% share in industrialized milk production Sugar Agriculture production • Integrated player with own fodder production and 57% 29% Agriculture Revenue ue EBITDA high milk yields 26% IRY DAIR • Total cattle headcount of 31 ths Sugar production • 91 ths tonnes of milk produced in 2013 60% Gross revenue excludes intersegment revenue of sugar beet at cost of EUR 116 million EBITDA includes IFRS revaluation of biological assets (IAS 41)

Ukraini ainian an su sugar ar ma mark rket et over ervie view 4 Key con onsid sider eratio ations Player ers in the sugar ar market, , volum lume 2012 2012 2013 2013 ASTARTA; 19% ASTARTA; 26% • Ukraine has high quality land and favorable climate conditions for sugar beet farming Other; 33% • Market characterised by continuously increasing Ukrlandfarming; share of industrial consumption 9% • Upon WTO accession, Ukraine had agreed to a quota of 270 ths. tonnes of raw sugar to be Mriya; 8% Radekhov- imported under a 2% tariff rate. Imported sugar tsukor; 15% above this level is charged with a 50% tariff Ukrprominvest; Svitanok; 6% 7% Other; 47% • In 2013/2014 marketing year ASTARTA will sell Kernel; 5% Radekhov- Mriya; 7% Ukrprominvest; record high amount of sugar – about 370 ths. tsukor; 5% 13% tonnes Source: Ukrtsukor, Company data Sugar ar prod oductio ion in Ukraine aine Industria strial vs. . direc ect t con onsu sumption tion of sugar ar in Ukraine aine (million tonnes) 60% 3,0 55% 2,5 50% 2,0 45% 1,5 40% 2,6 2,3 2,2 2,0 1,0 35% 1,9 1,6 1,5 1,3 1,2 30% 0,5 25% 0,0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Ukrtsukor, Company data Source: Ukrtsukor, Company estimations

Bioene energy rgy plant nt 5 Wast ste-to to-ener ergy oppor ortuniti ities es • The processing cessing capacity y is s 1 200 tonnes nes of beet et pulp p per day • Daily y capacity ty for biogas as produ ducti tion on upto 150 000 м³ • Biogas as is replaci cing up to 50 % of natura ural gas used d by sugar r plant nt • Producti uction n of 250 0 tonnes nes ferti tilize zers s per day • Positi tive environm onmental ental effect ct due to closed d cycle of productio duction, , reducti ction n of natura ural gas consum sumpti ption

Bioeth ethanol anol proje ject ct at AS ASTAR ARTA 6 Key techn hnica ical l param ameter ers for bioe oethan hanol ol proj ojec ect • ASTARTA's potential synergetic model for Globino foresees combination of Sugar r Product: oduct: Componen onent t Mot otor or Fuel l Alter ernat ativ ive • factory fa y + B Biogas as fa factor ory y + Bioetha ethano nol fa factor ory • Daily ly produc oductio ion: : 10 000 dal ( 80 т ) • Biogas factory to utilize 100 % of wastes from • Daily ly molass lasses s con onsu sumption tion 335 т Sugar and Bioethanol factories • Daily ly biogas ogas con onsu sumption tion 30 500 m 3 Key features: tures: • Working ing days s 3 330 • Own feedstock – beets, sugar juice, green syrup, molasses Bio-or organ anic ic proj ojec ects s of ASTAR ARTA • Distillery waste utilization by methanization • Soybea ean inoc ocula lants, ts, liquid id: facility • Stubb bble le destructant structants • Modern distilling technology with lower • Biolo ologica ical fungic icid ides es energy consumption (proposed by Maguine) • Probio obiotic ics • Cheaper source of energy – biogas from beet pulp methanization

Way fo y forward ard 7 Key features: tures: • Pulp is processing 90 90-100 00 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 25 – 30 million n EURO

2014 14 Synergy ergy 8

9 2015 Synergy molasses, green syrup Water pond Waste water SUGAR cleaning BIOETHANOL beets Soya oil, protein feed (no GMO) soya beans 9

10 Present R@D directions of the company Fast growing poplar as a source of cellulosic biomass mechanical Enzymatic hydrolysis catalytic pyrolysis treatment fast Cutted and Wood wastes, Depolymerized C6 + C5 sugars branches cleaned bark and organics trees branches Second Raw material Syngas, BIOGAS generation for paper Furness oil bioethanol production 10

11 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. 11