SCM GROUP PUBLIC REPORT 2011

Agriculture. HarvEast Holding
HarvEast Holding was created in 2011. HarvEast planned
structure is an entity jointly controlled by SCM Group and
Smart Group, to manage the agricultural assets, which previously
belonged to the Ilyich Steel Plant in Mariupol, earlier
integrated into Metinvest Group. HarvEast manages the agricultural
assets in Donetsk, Zaporozhye, Cherkassy, and Zhitomir
Oblasts, as well as in Crimea.
Investments
The total volume of investment in 2011 amounted to $8.9m
(excluding M&A).
The main part of investment funds in 2011 was used to purchase
cultivation, tillage, and seeding machinery; as well as
transportation and supporting equipment.
15 HarvEast Holding was created in 2011.
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HarvEast Holding's main focus areas include:
• crops (growing wheat, sunflower, barley, perennial
herbs, and corn);
• dairy farming;
• mixed fodder production and growing seeds.
The total area of the Holding's cultivated land amounts to
220,000 hectares (Donetsk Oblast – 170,000 hectares, Zaporozhye
Oblast – 20,000 hectares, Cherkassy and Zhitomir
Oblasts – 10,000 hectares, Crimea – 20,000 hectares).
The total number of employees – 9,431 people.
HarvEast Holding's financial indicators15 Indicators, $, m 2011 2010 Dynamics, %
Assets 250 n/a n/a
Sales volume 91 n/a n/a
Net profit (loss) 2 n/a n/a
EBITDA 15 n/a n/a
Focus points of the year
In 2011, HarvEast Holding harvested 428,000 tonnes
of grain and fodder crops.
The total volumes of crops harvested were as follows: wheat
– 256,700 tonnes, sunflower – 80,200 tonnes, barley –
53,500 tonnes, corn – 20,800 tonnes.
The Holding's dairy farms produced approximately 57,000
tonnes of milk. The volume of meat produced was 8,800
tonnes in live weight.
The Holding also produced 5,600 tonnes of flour, 2,400
tonnes of bread, and 56,200 tonnes of mixed fodder.