KSG Agro and Bioenergy Association of Ukraine Had Press-Lunch Dedicated to the Biofuel Introduction on November 29

The Chairman of the management board of the Bioenergy Association of Ukraine Georgiy Geletuha and the leading Ukrainian mass media representatives, elaborating on the issues of energy industry and the agriculture, joined the lunch. Among them there were the journalists of the Agroexpert title, the UNIAN, Ukrinform, Ukrainski Novyny Hubs portal, Agraveri, Agroportal information agencies and many others.
During the press-lunch the participants had a well-reasoned and interesting discussion on one of the most urgent for Ukrainian economy issues – the implementation of renewable fuels. The key answers from the journalists were related to the economic effect from the use of biofuel, its advantages as compared with the traditional energy sources – gas and coal, the capabilities of such agro-holdings as the KSG Agro to construct new boiler facilities and supply pellets for them.
As CEO Sergey Mazin reported during the press-lunch, the KSG Agro holding has put forward an initiative of partnership of local communities and businesses for the reconstruction of boiler facilities of the state-financed sector – providing a re-equipment from gas to biologically renewable fuel – pellets. He appealed for the joint efforts of the businessmen and the local authorities across the country in modernization of the boiler facilities. And, as a result, the costs for the state-financed consumers heat supply would be reduced, as well as the Ukraine’s dependency on coal and Russian gas.

“According to the Chairman of the management board of the Bioenergy Association of Ukraine (BAU) Georgiy Geletuha, the introduction of bio-fuel heating technologies by the KSG Agro agro-holding company is in the Ukraine’s and international trends of gradual substitution of traditional fuel by the bio-fuel. “Now the substitution by the bio-fuel accounts for 42% per year, and during the period from 2012 to 2015 it increased fourfold, – BAU Head comments, – We are sure that the corresponding legislative regulations passed by the state would allow increase these figures and engage businesses and agricultural and industrial sector in the use of bio-fuel. A positive example of such an increase is the activity of the KSG Agro holding”.

01.12.2016

Internet chat with investors: the discussion of the financial results of KSG Agro, current situation and prospects of the Group

On November 23, in Warsaw, the KSG Agro investors had an on-line chat. A member of the KSG Agro management board, Sergey Mazin, answered the investors’ questions. The participants of the chat were discussing the financial results of the KSG Agro activity, the current situation and the prospects of the Group. You may find details on the website of the Private Investors Association in Poland at
http://www.sii.org.pl/11049/aktualnosci/czat-inwestorski/czat-inwestorski-omowienie-wynikow-finansowych-ksg-agro-biezacej-sytuacji-w-grupie-oraz-perspektyw.html#ak11049
As well as on our website https://www.ksgagro.com/investor/prs/Czat_23_listopada.pdf

On our website you can also read the questions and the answers, which were discussed off-line due to the lack of time
https://www.ksgagro.com/investor/prs/PYTANIA_BEZ_ODPOWIEDZ_23_listopada.pdf

01.12.2016

For the first 9 months of 2016, KSG Agro’s share in exports of live pigs from Ukraine amounted to 26%

During the first 9 months of 2016, KSG Agro Holding exported live pigs to Georgia in the amount of USD522,000. At the same time, total exports of live pigs from Ukraine for 9 months of 2016 amounted, according to the State Fiscal Service of Ukraine, to USD2,019,000. Given that 100% of the supply of live pigs from Ukraine for three quarters of 2016 was carried out to Georgia, the share of KSG Agro in total exports in value terms in the first 9 months of 2016 amounted to 26%.

During the same period, Ukraine exported 1,741 tons of live pigs. At the same time, the share of KSG Agro Holding amounted to 400 tons of live pigs, or 23% of the live weight of the total exports of the country for this product category.

04.11.2016

KSG Agro Holding continued its program of introducing biomass heat boilers in Dnepropetrovsk region, increasing the amount of heat production from 3000 kW to 3450 kW.

Under the KSG Agro new program implemented in partnership with local councils of Dnepropetrovsk region the first boiler in a secondary school in the village of Novopokrovka of Solonyansky district of Dnepropetrovsk region was commissioned.

The new boiler is working on fuel pellets from waste sunflower seeds, a biological fuel that is significantly cheaper than traditional fuels. As a result, the savings compared to the previously used boiler will be at least 20%, and the quality of the supplied heat will increase by 30%.
“Our Holding has a serious experience in the use of fuel pellets, which we use to heat our factories, for example, a pig farm in the village Niva Trudovaya, – says Sergey Kasyanov, KSG Agro Chairman of the Board of Directors. – Our experience shows that the use of pellets helps achieve significant savings. For example, the energy efficiency of the old boiler house in Novopokrovka was 45%, and the new boiler provides 85% efficiency. Pellets will come for the school boiler room from our own holding’s pellet production”.
Construction of the boiler house in Novopokrovskaya School totaled UAH 1 million. It was carried out at the expense of KSG Agro agricultural holding, without the involvement of budget resources. Heat, supplied to the school, will be paid for by the rural council. Heat cost will be determined by the tariffs approved by NERC.

boiler-room
boiler-room
boiler-room

21.10.2016

KSG Agro and Kreston GCG held a seminar on the interpretation of public agricultural companies’ reporting according to IFRS standards

On October 11, 2016, the city of Kiev welcomed the seminar “IFRS: how to interpret the reports of
public agricultural companies, whose shares are traded on foreign stock exchanges”. The event was
organized by the agricultural holding KSG Agro and Kreston GCG auditing company.

The seminar was attended by over 10 journalists from the leading Ukrainian media, writing on
agricultural topics. Among them there were representatives of the following agencies: Interfax-Ukraine,
Ukrinform and Ukrainian News, and websites: APK-Inform, Agroexpert, Agroportal, Agraveri, ProAgro,
and others.

“By conducting a seminar on the reports of public agricultural companies, we once again want to
emphasize the importance of open and transparent dialogue with the media, which we stick to from the
outset of our agricultural holding’s existence, – said KSG Agro General Director Sergey Mazin, – We thank
the journalists for their attention to the activities and financial performance of our agricultural holding.

We are confident that after this workshop it will be easier for the journalists to evaluate reporting of
companies independently.

“I am pleased to note that among the Ukrainian agricultural companies we have agricultural holdings,
which give the exact and correct use of the IFRS standards the biggest priority, – says Andrei Popov, a
partner at the auditing company Kreston GCG, – Holding the seminar together with KSG Agro we aimed
to help journalists interpret the statements correctly, highlighted Popov.

During the seminar, Sergey Mazin and director of the quality control department of Kreston GCG
auditing company Ruslan Izmailov told about the features of IFRS application in the preparation of the
financial statements of agricultural companies using the example of KSG Agro reporting. The speakers
also answered numerous questions from the journalists.

DOSSIER

KSG Agro is one of the leading agricultural holdings in Ukraine, the European group of innovative
vertically integrated companies. Holding’s shares are listed on the Warsaw Stock Exchange. KSG Agro’s
main activity is farming, agricultural and pork production.

Kreston GCG is the Ukrainian representative of the international audit network Kreston International,
one of the world’s leading organizations in the field of audit and consulting services. More than 21 000
specialists and support staff in the Kreston International network serve private and public companies,
public sector enterprises, financial institutions, multinational corporations and non-profit organizations
in 108 countries.

Press-service of KSG Agro

Contact: Sergei Viktorov (tel 067-509- 17-27.) E-mail: pr@ksgagro.com

12.10.2016

KSG Agro has successfully completed the spring fieldwork

About 16 thousand hectares of cultivated crops are planted.

Significant rainfall has produced a favorable effect on winter and spring crops. To protect plants against diseases, the Company has applied additional treatment with fungicides.

Taking into account winter crops, the following cultures are sown on the fields of the Group:

  • Sunflower – 15.8 thousand hectares.
  • Wheat – 6.6 thousand hectares.
  • Barley – 2.7 thousand hectares.
  • Corn – 0.4 thousand hectares.
  • Rape – 0.8 thousand hectares.
  • Other crops (including fallow) – 6.8 thousand hectares.
03.06.2016

KSG Agro Holding held a press trip for the journalists of the leading Ukrainian mass media

The theme of the tour, which took place in Apostolovo district of Dnepropetrovsk region, was about the successful anti-crisis strategies of agricultural enterprises using the example of the leading holding’s companies.

The press tour was attended by 12 representatives of the leading Ukrainian print and electronic media. In particular, these were the journalists, editors and columnists from the following news agencies and magazines: Ukrainian News, Ukrіnform, APK-Inform, Landlord, Prybutkove Svynarstvo, Tvarynnytstvo sogodnі and Zerno, as well as agricultural websites: Latifundist, Agroportal, Agroexpert, ProAgro and Agraveri.

During the press tour, the participants paid a visit to the Apostolovo branch of KSG Dnepr, where they inspected fields sown with wheat and sunflower, while in the village of Niva Trudovaya they visited the LLC Rantye’s pig-breeding complex.

“We are grateful to the media for their significant interest in KSG Agro, – says Sergey Mazin, Director General of the holding, – Our holding has always respected the principles of open and transparent policy of our activities coverage. We appreciate our journalists’ long-term effective information partnership that we intend to maintain and develop comprehensively”.

30.05.2016

KSG Agro and Ukrsotsbank (Unicredit Group) have successfully completed the process of loan restructuring

The third and final phase of the loan restructuring was carried out in accordance with the agreement (memorandum) to restructure loans with Ukrsotsbank signed in July 2015. In accordance with this document, the amount of approximately US $ 0.7 million of the debt was repaid during this third stage.
As previously reported, the first phase was completed in July 2015, and the second phase of the credit debt restructuring program from KSG Agro in favor of Ukrsotsbank in September 2015.

25.05.2016

KSG Agro has received permission to export pork to Georgia

KSG Agro’s pig-breeding business has successfully passed the test of Georgian National Ministry of Agriculture’s Food Agency and received permission for the supply of pork in Georgia. A pilot contract is concluded with the Georgian company “Baraka”. The first delivery is scheduled until the end of June this year.

18.05.2016

KSG Agro signed letters of intent related to the restructuring of the debt

The Board of Directors of KSG Agro S.A. (the “Company”) is pleased to notify that the Company signed a preliminary letter of intent (LoI) with the International Creditors (including the ECAs, banks and international suppliers) related to the restructuring of the total debt in the amount of USD 20 mln.
Some of the major points contained in the mentioned LoI are:
i) the remittance of goodwill payments to the International Creditors amounting to 1% of each out- standing principal amount and;
ii) a step-up repayment structure of ten years starting from 2016. The principal amounts under the mentioned plan will thus increase after the first four years of debt service.
As of today the Company has made the goodwill payments in full. The lawyers of the parties will start working on legal documents related to the debt restructuring agreement soon.

01.04.2016