Based on various evaluations given to the holding by various ratings agencies we would like to provide our consolidated overview of the company’s
performance over the recent marketing year as well as certain forecasts for the incoming one. Based on company’s operations there are various
risks that might face in the upcoming year. Due to the fact that Ukrainian government has already been marked with implementation of restrictions
on various aspects of companies’ operations (namely grain export quotas in 2010 and export duties in 2011) company will most likely have to deal
account for these risks when planning its activities.

Nevertheless overall performance of the company in 2011 gives solid foundation for future growth and improvement. Net sales of the company
adjusted for gains from revaluation of biological assets totaled to USD 205 M (Source: S&P). EBITDA totaled to USD 143 M, yielding a margin of
70%. Company intends further increasing its land bank, doubling its size to 480 000 hectares by 2014. According to various sources company’s
sales will continue growing from 15-30% annually. Mriya has shown negative cash flow for the marketing year of 2011 with an outflow of USD 6 M.
We expect the company to finance the negative cash flow from the USD 250 M issued in March of the previous year. Company is also expected to
finance its capital expenditures from short-term debt. Good relationship of the company with International Finance Corporation and European Bank
for Reconstruction and Development will be beneficial for company’s liquidity

AgroInvest comment: We see Mriya with a great potential for growth and expansion in the foreign markets. The main issue that company will face
lies in instability of Ukrainian policymaking system and unexpected regulations imposed that might interfere with company’s reliability in the eyes of
foreign partners.
 

AgroInvest