«Severodonetsk-agro» (Ltd.) Building a Complex of Pork Meat Production on Industrial Basis Av. Gvardeysky,40-a, ap. 1, t. Severodonetsk, Lugansk Region, - презентация

1 «Severodonetsk-agro» (Ltd.) Building a Complex of Pork Meat Production on Industrial Basis Av. Gvardeysky,40-a, ap. 1, t. Severodonetsk, Lugansk Region, 93400

2 Main Idea and Tasks of Project Project provides for organization of large marketable production by using modern technologies of intensive pig-fattening by means of: –preparation of buildings for organization of production workshops; –purchase, delivery and assembly of equipment; –purchase of the main animal flock/herd; –launch of complex operation.

3 Management of Project Our team is a professional collective of workers improving their qualifications; Our partners are leading consulting structures in the field of agricultural production.

4 Market Segment The most part of hog livestock is kept in small agrofarms and personal peasant farms. During the last 20 years hog livestock in Lugansk region lessened 4.3 times. Up to the beginning of 2010 it composes

5 Our Competitive Advantages: forming of industrial type of production which allows to overrun on terms of fattening the current producers; selling the production predominantly in the form of semicarcass («prices are considerably higher than by live weight».

6 Variants of Project Development Indecis Optimistic Realistic Pessimistic Volume of output, kg Price of unit, hr Volume of sales (hr) Gross expenditure (material), hr Gross revenue, hr Wage payment fund, hr Other expenses, hr Revenue, hr

7 Business Model Seat of production activity is the territory of settlement Malonikolayevka, Antracite district, Lugansk region. There has been formed sufficient potential for livestock production development including the named animal husbandry complex. Production premises of the enterprise have all necessary parameters for livestock breeding and creation of necessary labour conditions for workers. The experience of work in animal husbandry allows to form a professional collective of enterprise workers.

8 Indecis of Project Efficiency IndexMeaning Investment size (total value), hr Discount rate, % 7 Period of payback PB, month 48 Discounted period of payback DPB, (months) 48 Average revenue rate ARR, % 41,21 Net present value NPV, hr Discounted profitability index- DPI 2,79 Internal revenue rate IRR, % 32,22 * Period of integral indecis calculation 10 years

9 Necessity in Financing and Graph of Investment Use Год Поток дохода от инвестиций, грн. Окупаемость проекта в текущем годунарастающим итогом 1-й не происходит 2-й не происходит 3-й не происходит 4-й происходит 5-й происходит 6-й происходит 7-й происходит 8-й происходит 9-й происходит 10-й происходит

10 Factors of Risk Main technological risks: 1.Purchase of ill and low-productive livestock. 2.Insufficient qualification of zoovet specialists in matters of carrying hunting synchronizing and artificial insemination of pigs. 3.Non-correspondence of buildings reconstruction to the technological demands. 4.Non perfect technological equipment. 5.Insufficient quality of forage components. 6.Emerging of infectious diseases. 7.Shortage of fodder. 8.Theft of livestock.

11 Measures on Prevention of Technological Risks 1.Покупку поголовья проводить в надежных племенных хозяйствах. 2.Специалистов подбирать на конкурсной основе. Пользоваться услугами ведущих консультантов. 3.Составить график проведения реконструкции помещений и монтажа технологического оборудования. 4.Технологическое оборудование покупать у представителей ведущих отечественных и зарубежных компаний, специализирующихся на изготовлении оборудования для разведения и выращивания свиней. 5.Использовать препараты с наивысшими показателями кормовых компонентов. 6.Для предотвращения возникновения инфекционных заболеваний провести первичный карантин поголовья с последующим применением плановых обработок поголовья ветеринарными препаратами. 7.Наладить партнерские отношения с производителями фуража и зерновой продукции. Создать страховой запас фуражного зерна. 8.Для обеспечения сохранности поголовья использовать ограждения вокруг всего комплекса и трехсменное дежурство охраны.

12 Proposals to Investor Coming out of business is one of key elements of project concept. The model of coming out of business will be presented as combined variants and special schemes of financing.