Company Presentation Novorossiysk Grain Plant Moscow 17 November 2015
Disclaimer These materials are being supplied to you solely for your information and for use at a presentation by Public Joint Stoсk Сomрanу “Novorossiysk Grain Plant” (the “Company” or “NGP”) . These materials may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, by any medium or for any purpose. These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, or any offer to underwrite or otherwise acquire any securities of the Company, or any inducement to enter into investment activity in any jurisdiction nor shall they or any part of them nor the fact of their distribution or communication form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. These materials includes forward-looking statements that reflect the Company's intentions, beliefs or current expectations. Forward-looking statements involve all matters that are not historical fact. The Company has tried to identify those forward-looking statements by using the words "may", "will", "would", "should", "expect", "intend", "estimate", "anticipate", "project", "believe", "seek", "plan", "predict", "continue" and similar expressions or their negatives. Such statements are made on the basis of assumptions and expectations which, although the Company believes them to be reasonable at this time, may prove to be erroneous. These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company's actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, general economic conditions and political and social developments in Russia, the European Union, the United States and elsewhere, and trends in, and the Company's ability to respond to trends in, its industry and in the markets in which it and its subsidiaries operate or plan to operate; the Company’s business and growth strategies; planned acquisitions or development projects, or any other projects in the Company’s investment pipeline; the Company’s expansion into other geographic regions or market segments; the effects of legislation, regulation, bureaucracy or taxation on the Company’s business; and the Company’s anticipated future revenues, capital expenditures and financial resources. Additional factors could cause actual results, performance or achievements to differ materially. The Company, its subsidiaries and each of its and their directors, officers, employees, affiliates and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in these materials and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation. By attending this presentation or by accepting any copy of the materials presented, you are taken to have represented and warranted that you agree to be bound by the foregoing limitations. 2
Company’s history – more than 120 years of consistent growth 2007 – 2010 Terminal’s modernization (1) : − Installation of two NEUERO ship loaders with total productivity of As of 1H 2015, the Company holds 1980 – 1984 1,800t per hour the leading position among its − Conveyor gallery expansion to competitors – the deep-sea ports in To satisfy the USSR’s need in grain, increase ship loading productivity to the South Federal District (SFD) (2) necessary infrastructure was build to 1,600t per hour facilitate import: − grain elevator №2 for loading grain into rail wagons with storage capacity of 44kt − two grain receiving machines Buhler brand were installed 1928 – 1930 Construction of grain conveyor gallery from storage facilities to 1994 – 1996 berth with productivity of 400t per hour Start of a new era of the Russian grain export, reconstruction of all equipment used for grain import to facilitate export 1882 – 1893 Construction of Novorossiysk 1943 – 1958 silo barn-elevator 1943-1950 – recovery of the Terminal after the − the largest in Europe, Great Patriotic War, construction of two mills the second largest in the world with total storage 1956-1958 – growth of export operations caused capacity of 49kt the construction of: The necessity to build the − new grain elevator №1 with storage capacity facilities was explained by the of 100kt state’s economic needs − grain conveyor gallery to berth with productivity of 1,000t per hour Notes: (1) In 2003, mill equipment was completely replaced by Italian equipment of OCRIM brand with total productivity of 150t per day 3 (2) By grain transshipment volume
NGP – the leading deep-sea grain terminal in Russia Summary overview Strategic location Public Sto с k С om р an у “Novorossiysk Plant” Joint Grain (the Russia “Company” or “NGP”) is the largest deep-sea terminal located on the Ukraine Black Sea coast in Krasnodar region NGP’s key business segments include: Romania − Novorossiysk grain transshipment Black Sea − trading (mainly resale of grain) Bulgaria Georgia − own production Main export destinations include the Middle East (mainly Egypt, Saudi Turkey Arabia, Iran, Libya, among others) NGP was the leading Russian grain terminal in 1H15 Unique asset base Port Taman Terminal (1) Shareholder 11% NGP NGP Port Tuapse 30% NGT NCSP Handling terminal Production facilities Infrastructure 15% 2 elevators with total Milling plant with daily Transportation facility Delo Group KSK capacity of 140kt productivity of 150t Power facility TCSP UCL Holding 3 grain loaders Finished products Mechanical facilities storage facilities with 19% Auto and railway grain Other infrastructure total capacity of 3,810t TGTC Glencore, Kernel receiving equipment objects 26% Conveyor gallery Port Novorossiysk (74%) Source: Company data Source: IKAR Notes: (1) NGT – “Novorossiysk Grain Terminal” , KSK – “Kombinat “Stroykomplekt” , TCSP – “Tuapse Commercial Sea Port” , TGTC – “Taman Grain Terminal Complex”; (2) JSC “OZK” is controlled 4 by the Russian Federation (50% + 1 share) and Summa Group (50% - 1 share); (3) Controlled by Ziyavudin Magomedov
Section 1 NGP – unique investment opportunity 5
Key investment highlights Significant market growth potential and demand increase on NGP’s services Experienced and highly professional The leading deep-sea grain management team terminal in Russia Diversified business model resilient to Clear business development strategy market fluctuations Dynamically growing business with high performance results 6
Significant market growth potential and demand increase on NGP’s services World population growth and global grain consumption… …inevitably stimulate growth in grain harvest in Russia… Grain consumption (1) World population Growth: 13 mt 9.2 2,670 115 113 7.0 110 1,976 107 bn ppl 104 mt mt 102 2014/15А 2015A 2050F 2030F 2015F 2016F 2017F 2018F 2019F 2020F Source: International Grains Council, Company’s annual report 2014 Source: Rosstat, Ministry of Agriculture, Ministry of Economic Development …to facilitate accelerated growth in grain export due to limited reserves …which increases demand for NGP’s services, inter alia as a result in the rest of the world… of unique expertise Growth: 58% Located in the deep-sea port with the possibility to serve vessels 42.2 with carrying capacity of over 70kt 38.9 35.4 32.3 29.4 26.7 Ability to work with a wide range of crops mt Increased throughput from railway, ensuring acceptance of the whole grain volume in one terminal Provision of trade loans to exporting companies 2015F 2017F 2019F 2021F 2023F 2025F Source: International Grains Council Notes: (1) Including wheat and feed grain 7
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