JSC “Concern AVEC and Co” General information JSC “Concern AVEC and Co” was found in 1994 and currently it is one of the largest and stable companies.

JSC “Concern AVEC and Co”JSC “Concern AVEC and Co”General informationGeneral information

JSC “Concern AVEC and Co” was found in 1994 and currently it is one of the largest and stable companies in Ukraine

JSC “Concern AVEC and Co” holds leading positions in various branches of economy and is constantly mastering new markets and businesses

The total number of employees is over 3 000

Yearly volume of commercial operations is $ 150 mln

Alexander FeldmanAlexander Feldman1991 - private production and commercial company “AVEC” was found

1994 - President of JSC “Concern AVEC and Co”, a dynamically developing production and commercial company

1997 - creation and running one of the largest charity organizations in Kharkiv – Kharkiv municipal charity foundation “AVEC”

1998 - 2002 - member of Kharkiv city Parliament

1999 - honored with golden order of Nicolas the Miracle maker “for multiplication of good on Earth”

С 1999 –The president of Alliance of national and cultural associations of Ukraine

2000 – awarded with “Christmas 2000” award, prize winner of rating contest “Kharkiv citizen of the century”

С 2001 – President of Kharkiv united Jewish community

2002 - Member of Parliament of Ukraine, member of Parliament committee on problems of retired, veterans and handicapped

2003 – awarded with special medal of French republic “For fidelity in human rights protection”

2005 – owner of the premium "Person of year 2004 " in nomination the Charity program of the Year"

Honorary presidentHonorary president

Main Businesses of AVEC Main Businesses of AVEC

Investment projects in

commercial real estate

Agricultural and production

projects

Markets and shopping centers

management

JSC “Concern AVEC and Co”:

Large amount of trading space in Kharkiv region

7,6% of retail trade turnover of all large non-grocery markets in Ukraine

2,9% of all retail traders in Ukraine are tenants of AVEC

Other Businesses of AVEC:

Various investment projects

Regional development

Logistics and transportation – AVEC-Sonora company

Media-business

Finance

Charity

JSC “Concern AVEC and Co” JSC “Concern AVEC and Co”

JSC “Concern AVEC and Co”JSC “Concern AVEC and Co”Shopping centers managementShopping centers management

The Central

KonniyNovosaltovskiy

Barabashova

Shopping centers and markets

Sumskoy

Whole-sale and retail “Barabashova” trade center is the Europe largest trade object.

It is a unique “city inside the city” with its own streets, blocks, buildings, districts and infrastructure.

Markets managementMarkets managementExample of “Barabashova” trade Example of “Barabashova” trade

centercenter

Barabashova trade center:

Total area – over 600 000 sq.m.

Over 28 000 shops and kiosks

Over 100 000 visitors on weekdays and over 200 000 visitors on weekends

Proposition of non-agricultural goods – «Everything from a needle up to a car”

Wide proposition of the goods of local producers

Operates 6 days a week + 2 whole-sale night trade sessions each week

Constant development

Markets managementMarkets managementMarkets of AVECMarkets of AVEC

Total area – 60 000 sq.m. Is located 5 minutes from downtown Kharkiv Main groups of goods: groceries, clothes and shoes, household chemicals, goods for sport and recreation, animal market 35-40 thousand visitors on weekends

“The Central Market”:

“Sumskoy market”: Total area – 7 600 sq.m., Is located in historic downtown Kharkiv Main groups of goods: agricultural products, flowers

“Konniy market”: Total area – 44 600 sq.m. Main wholesale agricultural market in the city Up to 36 thousand visitors on weekends

“Novosaltovskiy market”: Total area – 20 900 sq.m. Is located in the largest residential district of the city Main groups of goods: foodstuff, building materials, clothes 10-18 thousand visitors per day

International thoroughfaresInternational thoroughfaresin Ukraine and Kharkivin Ukraine and Kharkiv

Kharkiv region

Kharkiv region is located on the intersection of a number of important international and national transportation arteries. The region stands on the lines that connect West and East (Europe and Russia, Eastern countries) and North and South (Moscow and Crimea). A number of automobile and rail roads connect the region to Donbass, Crimea, Caucasus, ports of Black and Azov seas.

Kharkiv region is the largest and best developed region among its neighbors. It is a traditional trade and terminal region. This is one of the reasons why Kharkiv is a traditional trade city.

Regional locationRegional locationRegional locationRegional location

A powerful production and trade system of agricultural products needs a powerful professional logistic base.

However it is missing:However it is missing:

Wholesale distribution of agricultural products in Kharkiv region is chaotic, consists of a large number of small-size old warehouses whose location is random.

The distribution system is far from being on the up-to-date level while the demand for professional agricultural terminal is more than high.

ResumeResumeResumeResume

It is obvious that there is a serious need for professional distribution system for agricultural products in Kharkiv region. When created, such system will efficiently integrate into economy of Kharkiv region and the regions of Eastern Ukraine thus becoming the main terminal in the East of the country

JSC “Concern AVEC and Co” has two large size land lots on the circular road of Kharkiv that have perfect transportation accessibility and fit to be used for creation of logistic terminals of inter-regional scale

Object #1 with the overall area of 2 800 000 sq.m. consists of 3 land lots that are located on the circular road on the North-East of Kharkiv near Kharkiv biggest Saltovka district

Object #2 with the total area of 18 193 600 sq.m. stands on the intersection of Moskovskiy ave. and the circular road near Rogan’ industrial district on the South-East of Kharkiv

An important point is that AVEC has both experience and the potential to realize the agricultural terminal project of such size

In perspective, the model of the distribution center in Kharkiv may be used to create a few other objects of such type in other regions of the country so that it becomes a national-level

efficient unified system of agricultural products distribution

• Headline FINANCIALSHeadline FINANCIALS

– Expected investment Expected investment – 25 ha – 40 ha 125 ha – 40 ha 1STST Phase Phase– 22ndnd phase - + 15-20 ha reserve phase - + 15-20 ha reserve

• for logistics / distributionfor logistics / distribution

– Trading space:Trading space:• Halls – ca. 40,000 mHalls – ca. 40,000 m22 • Truck sales - 50,000 – 75,000 mTruck sales - 50,000 – 75,000 m22

– TOTAL INVESTMENT: around $30 mln. TOTAL INVESTMENT: around $30 mln.

• Headline FINANCIALSHeadline FINANCIALS

– Expected investment Expected investment – 25 ha – 40 ha 125 ha – 40 ha 1STST Phase Phase– 22ndnd phase - + 15-20 ha reserve phase - + 15-20 ha reserve

• for logistics / distributionfor logistics / distribution

– Trading space:Trading space:• Halls – ca. 40,000 mHalls – ca. 40,000 m22 • Truck sales - 50,000 – 75,000 mTruck sales - 50,000 – 75,000 m22

– TOTAL INVESTMENT: around $30 mln. TOTAL INVESTMENT: around $30 mln.

OwnershipOwnershipOwnershipOwnership

• Need strong private investorNeed strong private investor• Have very good relations with Town and OblastHave very good relations with Town and Oblast• Need to develop a ‘model’ where oblast or town could be part Need to develop a ‘model’ where oblast or town could be part

owner of site or infrastructureowner of site or infrastructure• The operator should be privateThe operator should be private

• Access for FarmersAccess for Farmers• Some space or boxes could be ‘reserved’ for farmersSome space or boxes could be ‘reserved’ for farmers• (this already happens at existing bazaars operated by AVEC)(this already happens at existing bazaars operated by AVEC)• Can consider some participation by traders / farmersCan consider some participation by traders / farmers

• Need strong private investorNeed strong private investor• Have very good relations with Town and OblastHave very good relations with Town and Oblast• Need to develop a ‘model’ where oblast or town could be part Need to develop a ‘model’ where oblast or town could be part

owner of site or infrastructureowner of site or infrastructure• The operator should be privateThe operator should be private

• Access for FarmersAccess for Farmers• Some space or boxes could be ‘reserved’ for farmersSome space or boxes could be ‘reserved’ for farmers• (this already happens at existing bazaars operated by AVEC)(this already happens at existing bazaars operated by AVEC)• Can consider some participation by traders / farmersCan consider some participation by traders / farmers