Investor Presentation March 2012. 1 Disclaimer By attending this presentation, you agree to be bound...

Investor Presentation

March 2012

2

Disclaimer

By attending this presentation, you agree to be bound by the foregoing limitations.

This presentation has been prepared by OJSC Cherkizovo Group (the "Company") solely for use in connection with the presentation to investors of the Company’s annual financial and production results and is not made in contemplation of any offering of any of the Company’s securities. This presentation is strictly confidential to the recipient and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, by any medium or for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, or any offer to underwrite or otherwise acquire any securities in the Company, nor shall it or any part of it nor the fact of its distribution or communication form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto.

The information contained in this presentation has not been independently verified. The information included in this presentation is subject to updating, completion, revision and amendment and such information may change materially. No person, including the Company, is under any obligation to update or keep current the information contained in the presentation and any opinions expressed in relation thereto are subject to change without notice. Accordingly, no representation or warranty or undertaking, express or implied, is given by or on behalf of the Company or any of its respective members, directors, officers or employees or any other person as to, and no reliance should be placed on, the accuracy, completeness or fairness of the information or opinions contained herein. None of the Company or any of its respective members, directors, officers or employees nor any other person accepts any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or otherwise arising in connection therewith.

This presentation includes forward-looking statements that reflect the Company's intentions, beliefs or current expectations. Forward-looking statements involve all matters that are not historical fact. The Company has tried to identify those forward-looking statements by using the words "may", "will", "would", "should", "expect", "intend", "estimate", "anticipate", "project", "believe", "seek", "plan", "predict", "continue" and similar expressions or their negatives. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the presentation. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company's actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, general economic conditions in Russia, the European Union, the United States and elsewhere, and the Company's ability to respond to trends in its industry. Additional factors could cause actual results, performance or achievements of the Company to differ materially. The Company and each of its directors, officers, employees and advisors assume no obligation or undertaking to release any update of or revisions to any forward-looking statements in this presentation and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.

This presentation is made to and directed only at persons in Member States of the European Economic Area who are qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive (2003/7/EC) ("Qualified Investors"). In addition, this presentation is made to and directed at (i) persons outside the United Kingdom, (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), (iii) high net worth individuals, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (such persons, "Relevant Persons"). Any person who is not a Relevant Person should not act or rely on this presentation or any of its contents.

This presentation is not an offer of securities for sale in the United States. The Company has not registered and does not intend to register any of its securities in the United States or to conduct a public offering of any securities in the United States. Any of the Company’s securities may not be offered or sold in the United States absent registration or pursuant to an exemption from, or transaction not subject to, the registration requirements of the Securities Act of 1933 (the "Securities Act"). You understand that this presentation is not directed at persons located in the United States other than “qualified institutional buyers” (“QIBs”) as defined in Rule 144A (“Rule 144A”) under the Securities Act. You acknowledge that you are a QIB in the United States or that you are not located in the United States.

Neither this presentation nor any copy of it may be taken or transmitted into Australia, Canada or Japan or to any persons or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of Australian, Canadian or Japanese securities law. The distribution of this presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. The Company has not registered and does not intend to register any of its securities under the applicable securities laws of Australia, Canada or Japan, and, subject to certain exceptions, none of the Company’s securities may be offered or sold within Australia, Canada, or Japan or to any national, resident or citizen of Australia, Canada or Japan.

3

Cherkizovo Group – The Integrated Meat Producer

FY2011 Sales: $1,472.9m

FY2011 EBITDA: $245.5m

Market Position

Key Products

Key Brands

Production Facilities

Meat ProcessingFY2011 Total sales: $635.4mFY2011 EBITDA: $41.7m

• #2 in Russia

• Sausages, salamis, fresh retail-format meat, ready-to-cook products

• 7 plants• Total capacity (t.p.a):

145,270***

* Sellable product, as of 2011** Live weight, as of 2011*** Prepared products, as of 2011

Source: Poultry Union of Russia, Pork Union of Russia, Meat Union of Russia, Company’s Financials

PorkFY2011 Total sales: $270.5mFY2011 EBITDA: $109.5m

• #3 in Russia

• Live pigs, pork carcasses, fresh pork cuts

• 10 farms• Total capacity (t.p.a):

91,400**

• #2 in Russia

PoultryFY2011 Total sales: $691.5mFY2011 EBITDA: $110.9m

• Chilled/frozen poultry

• 7 clusters• Total capacity (t.p.a):

260,200 *

Overview of Results

17%

18%18%

13%

14%

12%

0,0

1000,0

2000,0

3000,0

4000,0

5000,0

6000,0

7000,0

8000,0

2006 2007 2008 2009 2010 2011

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

EBITDA, RUR mln EBITDA margin, %

5

Key Highlights of FY2011

Revenues increased 24% to $1,472.9 mln (20% in RUR)

Adjusted EBITDA* increased 12% to $245.5 mln (9% in RUR)

Adjusted EBITDA* margin was 17%

Gross profit increased 14% to $369.3 mln (10% in RUR)

Group gross margin was 25%

Net income increased 2% to $147.8 mln (decreased 1% in RUR)

Net debt was $719.2 mln

The effective cost of debt was 2,0%.

In the Penza poultry cluster: commenced the poultry breeding facility “Komarovka”, with a combined capacity of almost 1.1 million broilers; launched a large incubation facility with an annual capacity of 105 mln eggs; launched slaughtering facility with an hourly capacity of 8,000 heads

In the Bryansk poultry cluster: commenced a second line at the poultry breeding facility with a combined capacity of almost 880,000 broilers; launched a large incubation facility with an annual capacity of 43 mln eggs (increase to 66 mln eggs in 1Q2012)

In the pork segment by launching the breeding sites we started production at our three new greenfield farms in Tambov, Voronezh and Lipetsk

In the meat processing segment we launched reconstructed Kaliningrad plant

Cherkizovo has acquired and integrated Mosselprom - a diversified vertically-integrated agro-industrial company

Cherkizovo has started construction of the Elets agroindustrial complex in Lipetsk

OPERATIONAL DEVELOPMENTSOPERATIONAL DEVELOPMENTS

EBITDA and EBITDA Margin Evolution, 2006-2011, RUR mln

EBITDA and EBITDA Margin Evolution, 2006-2011, RUR mlnSOLID FINANCIAL RESULTS

SOLID FINANCIAL RESULTS

Source: Management estimates, Company reports CAGR growth is calculated between 2006 to 2011

51%

27%

53%

CAGR +30%*

15%

1967,12997,0

3786,4

5782,9

6641,6

7214,1

9%

6

0

20

40

60

80

100

120

140

160

180

2010 2011

0

50

100

150

200

250

300

2010 2011

0200

400600

8001 000

1 2001 400

1 600

2010 2011

Meat Processing Poultry Pork

Group Performance

Gross Profit, US$ mln

EBITDA, US$ mln

EBITDA Margin, %

Source: Management estimates, Company reports

Total Sales, US$ mln 1,188.2

323.8

Gross Margin, % 27%

218.5

18%

Net Income, US$ mln 144.4

Net Income margin % 12%

1,472.9

369.3

25%

245.5

17%

147.8

10%

Total Group Sales, US$ mlnTotal Group Sales, US$ mln

EBITDA and EBITDA margin, US$ mln, %EBITDA and EBITDA margin, US$ mln, %

Net Income, US$ mlnNet Income, US$ mln

Total sales increased 24% in US$ terms and 20% in RUR terms reflecting solid organic volume growth

Gross profit increased 14% in US$ terms and 10% in RUR terms; gross margin was 25%

Operating expenses as percentage of sales increased to 14% EBITDA increased 12% in US$ terms and 9% in RUR terms,

EBITDA margin was at 17% Net income increased 2% in US$ terms and decreased 1% in

RUR terms. Net income margin was 10%

24%

14%

12%

2%

1,188.2

1,472.9

42%

40%

18%

40%

43%

17%245.5

45%

16% 16%

42%

42%

218.5

144.4 147.8

45%51%

48% 44%

39%

18%

17%

7% 6%

US$/RUR rate 29.3930.37

2010 2011 % change

4Q2010 4Q2011

320.5

80.5

25%

50.3

16%

28.6

9%

392.5

98.8

25%

65.5

17%

39.3

10%

% change

22%

23%

30%

37%

* EBITDA was adjusted for two non-cash one-off items - the impairment of a non-significant subsidiary in the amount of US$3.4 million, as well as for the write-off of uncollectable fodder subsidies in the amount of US$4.8 million

Meat Processing Poultry Pork Meat Processing Poultry Pork

7

21% 16%

020406080

100120

2010 2011

0%

10%

20%

30%

EBITDA, US$ '000 (left axis) Division profit, US$ '000 (left axis)

EBITDA margin, % (right axis)

0

100

200

300

400

500

600

700

800

2010 2011

Poultry Division

Volume and Price** DynamicsVolume and Price** Dynamics Total Sales, US$ mln

Total Sales, US$ mln EBITDA and Division Profit, US$ mlnEBITDA and Division Profit, US$ mln

Prices increased by 5% to $2.48 per kg for 2011* (excl. VAT) and increased by 1% to 72.79 RUR per kg (excl. VAT)

Total sales increased 38% to US$691.5 mln Gross Profit increased 10% to US$160.4 mln, Gross Margin

was 23% In 2011 the segment accounted for a one-off direct subsidy of

405,0 mln RUR or US$13.8 which offset the cost of sales Operating expenses as a percentage of sales went down to

12% EBITDA increased 5% to US$110.9 mln, EBITDA margin

decreased to16% for 2011 Division profit decreased 3% to US$72.4 mln, division profit

margin was 11%


Total Sales, US$ mln 501.0

146.2

691.5

160.4

38%

EBITDA, US$ '000

Gross Margin, % 29%

105.6

EBITDA Margin, % 21%

74.6

Division profit margin %

23%

110.9*

16%

72.4

5%

Division profit US$ '000

Source: Management estimates, Company reports* Company’s selling price

185,620

38%

105.6

74.6

110.9

72.4501.0691.5

2010 2011 % change %change $US RUR

2010 2011 % change %change $US RURUS$/RUR rate

11%15%

10%

(3)%

34%

6%

2%

(6)%

29.3930.37

0

40

80

120

160

200

240

280

2010 2011

260,200194,100

34%

5%

$2.36

$2.48

* EBITDA was adjusted for the one-off non-cash item – a write-off of uncollectable fodder subsidies in the amount of US$2.9mln

8

194255

295 300 300

3355

60 60 60

227

20

110

2

0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012E 2013E 2014E 2015E

Organic growth Mosselprom Elets project

Investments to Drive Capacity and Efficiency Growth

Volume sales (thous. sellable weight tonnes) Volume sales (thous. sellable weight tonnes) Bryansk Cluster Capacity Increase OverviewBryansk Cluster Capacity Increase Overview

The project is expected to double production of the cluster to 75,000 live-weight tonnes be the end of 2012

Sites launched: additional breeding facilities and 1st line of the new hatchery with an annual capacity of 43 mln eggs

Sites to be launched in 2012: fodder factory with a storage capacity of 300 000 tonnes; additional bird houses facilities; 2nd line of the new hatchery to increase annual capacity to 66 mln eggs

Penza Cluster Capacity Increase OverviewPenza Cluster Capacity Increase Overview

The project is expected to double production of the cluster to 140,000 live-weight tonnes in 2013

Sites already launched: Incubation facility for 105 mln eggs per year, additional breeding facilities and a state-of-the art slaughtering facility of 8,000 units per hour

Sites to be launched in 2012: additional bird houses and a fodder factory with a storage capacity of 300 000 tonnes.

Source: Company, Management estimates* Expected increase in 2015 compared to 2010 levels* For 2011 Mosselprom volumes are consolidated from 13 May 2011

194

260

310

+34%

+19%

+142%*

357 380

470

+15%

+6%

+23%

9

41%41%

0

20

40

60

80

100

120

2010 2011

0%

15%

30%

45%

EBITDA, US$mln (left axis) Division profit, US$mln (left axis)


0

50

100

150

200

250

300

2010 2011

0

20

40

60

80

100

2010 2011

91,40087,650

4%

15%$2.37$2.72

Pork Division

Source: Company* Company’s selling price

Volume and Price* DynamicsVolume and Price* Dynamics

Total Sales, US$ mlnTotal Sales, US$ mln EBITDA and Division Profit, US$ mln

EBITDA and Division Profit, US$ mln

Prices increased by 15% to $2.72 per kg in 2011* (excl. VAT) and by 11% to 80.04 RUR per kg (excl. VAT)

Total sales increased 22% to US$270.5 mln Gross Profit increased 20% to US$107.6 mln; Gross Margin

was 40% In 2011 the segment accounted for a one-off direct subsidy of

176.4 mln RUR or US$6.0 mln which offset the cost of sales Operating expenses as a percentage of sales were 8% EBITDA increased 22% to US$109.5 mln; EBITDA Margin was

41% Division profit increased by 19% to $US82.6 mln, division profit

margin was 31%

90.0

69.4

109.5

270.5222.2

22%

2010 2011 % change %change $US RUR

2010 2011 % change %change $US RURUS$/RUR rate



90.0

270.5

107.6

22%

20%

EBITDA, US$ '000

Gross Margin, %

90.0

EBITDA Margin, %


40%

109.5*

41%

82.6

22%


41%

41%

19%69.4

31% 31%

18%

16%

18%

15%

29.3930.37

82.6

* EBITDA was adjusted for the one-off non-cash item – a write-off of uncollectable fodder subsidies in the amount of US$2.0mln

10

76,5

37,5 37,5

12,5 12,5

81,0108,0 110,0 110,0

71,6

34,5

6,111,2 14,4

23,3

25,0 25,0 25,0

5,4

12,5

9,8

0

20

40

60

80

100

120

140

160

180

200

2010 2011 2012E 2013E 2014E 2015E

Existing farms Greenfield farms Acquired farms Orelselprom

Cherkizovo Consolidates the Russian Meat Market

Volume sales (thous. live-weight tonnes) Volume sales (thous. live-weight tonnes) Acquisition of new farms in Lipetsk and Penza Acquisition of new farms in Lipetsk and Penza

In November 2010 Cherkizovo acquired two greenfield pork complexes:

- Located in Penza and Lipetsk regions best-in-class integrated multi-site complexes, each complex includes breeding, rearing and fattening facilities

Transaction price of $100mln including $80mln of subsidized debt (effective interest is appr. 3%) represents cost of construction

Cost and scale synergies due to proximity of new farms to existing Cherkizovo’s facilities

Efficient deployment of capex, as all essential construction is completed in Lipetsk and Penza

Greenfield construction represents significant efficiency gains

* Increase in 2015 compared to 2010 levels

Source: Company, Management estimates

Greenfield construction in Tambov, Voronezh and LipetskGreenfield construction in Tambov, Voronezh and Lipetsk

Cherkizovo is constructing greenfields in Tambov, Voronezh and Lipetsk regions

Sites will represent best-in-class integrated multi-site complexes, with breeding, rearing and fattening facilities

Investment consideration of appr. $160mm, of which appr. 20% will be funded by the Group, and the remaining 80% by bank loans

Breeding facilities at all three sites were launched in 2011 Sites are expected to reach their full capacity by the end of

2013

87,7

+111%*

+4%

+32%

+50%

+3%

91,4

120.2

180,0+ 185,0 185,0+

11

7%7%

0

10

20

30

40

50

2010 2011

0%

2%

4%

6%

8%

10%

EBITDA, US$mln (left axis) Division profit, US$mln (left axis)


0

100

200

300

400

500

600

700

2010 2011

0

20

40

60

80

100

120

140

160

2010 2011

Meat Processing Division

Source: Company* The company selling price

Volume and Price* DynamicsVolume and Price* Dynamics

Total Sales, US$ mlnTotal Sales, US$ mln

EBITDA and Division Profit, US$ mlnEBITDA and Division Profit, US$ mln

Prices increased by 17% to $4.55 per kg for 2011* (excl. VAT) and increased by 13% to 133.65 RUR per kg

Total sales increased 20% to US$635.4 mln Gross Profit increased 20% to US$104.8 mln; Gross

Margin was flat at 17% Operating expenses as a percentage of sales were flat at

12% EBITDA increased 13% to US$41.7 million; EBITDA

margin was 7% Division profit was US$15.3 mln, division profit margin

was 2%

529.4

635.4

20%

36.9

18.3

41.7

15.3

2010 2011 % change % change $US RUR

2010 2011 % change % change $US RURUS$/RUR rate



87.5

635.4

104.8

20%

20%

EBITDA, US$ '000

Gross Margin, % 17%

EBITDA Margin, % 7%

18.3


17%

41.7*

7%

15.3

13%


36.9

4% 2%

(16%)

16%

16%

9%

(19)%

29.3930.37

145,270141,550

3%

17%$3.89 $4.55

* EBITDA was adjusted for the one-off non-cash item – the impairment of a non-significant subsidiary in the amount of US$3.4 mln

12

0

40

80

120

160

200

240

2010 2011

Meat Processing Poultry Pork Grain

Capital Expenditures and Debt

Capital Expenditure, US$ mlnCapital Expenditure, US$ mln Total Debt, RUR mlnTotal Debt, RUR mln

Subsidized Non-subsidized

Debt/Equity*

2011

Interest coverage* ** 16.6x

23,154.1

Cost of Debt*

Net debt, RUR mln* 17,682.5

2010

2.5%

1.0x

2%

1.0x

13.7x

**Defined as EBITDA divided by interest expense

All Group Debt is in RUR, Cost of Debt for 2011 was 2%All Group Debt is in RUR, Cost of Debt for 2011 was 2%

88%

12%

93%

7%

85.2

79.8

4.8 10.8

92.6

109.3

173.7

212.80.1

Poultry: investments into capacity

Penza cluster:

slaughter facility: 8000 units/hour

incubation site: 105 mln eggs

poultry breeding facilities

Bryansk cluster1st line of the incubation site: 43 mln eggs poultry breeding facilities

Pork: investments into capacityLaunch of breeding facilities at three greenfield farms in Tambov, Voronezh, Lipetsk

Meat processing: capital maintenance Launch of the reconstructed plant in Kaliningrad (acquired in 2010)

0

5000

10000

15000

20000

25000

2010 2011 2011 Plan

19,759.9

24,063.5

28%

29%

72%

71%

0

5000

10000

15000

20000

25000

2010 2011 2011 Plan

Short-term

Long-term

Investment Highlights

14

Investment Highlights

1

2

3

4

6

7

5

8

Attractive market fundamentals

Well positioned to drive industry consolidation

Leading portfolio of brands

Best in class distribution network reaching a well-diversified customer base

Vertically integrated within the segments

Well-invested production assets

Favourable regulatory and tax environment

Attractive financial profile

Strong management team and corporate governance9

15

2006 2007 2008 2009 2010 2011E 2012E 2013E

20

24

28

32

36

40

Март2007

Август2007

Февраль2008

Август2008

Февраль2009

Август2009

Февраль2010

Август2010

Февраль2011

Август2011

Февраль2012

15151515

The Russian Economy is Re-bounding Towards its Historical Growth Path

Real GDP Growth (%)

1

Real Disposable Income Growth (%)*

Source: Rosstat, Broker estimates* Denotes real personal disposable income (% change pa)

Source: Rosstat, Broker estimates

RUB/USD FX

Source: Bloomberg

Avg. 28.59

Current: 29.66

Source: Bloomberg* Prices for Wheat (Cts/Bu), Soyabeans (C/Bushel), Barley (CAD/MT) and Corn (yellow)** Rebased to 100 at September 1, 2009

Commodities Price Performance (rebased to 100)*

March.07 Aug.08 Aug.09 Aug.10 March.12Aug.11

2006 2007 2008 2009 2010 2011E 2012E 2013E

8.2% 8.5%

5.2%

(7.8%)

4.3% 4.3% 4.0% 4.0%

10-13E Euro AreaCAGR: 1.5%

10-13E World CAGR: 3.1%

13.3%10.4%

2.7%

(2.0%)

5.1%

0.8%

5.0% 5.0%

70

90

110

130

150

170

190

210

230

250

Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12

Wheat Corn Soybean Q2 2012E Q4 2012E

196.7

169.6

170.2159.2

147.4142.9

Q2 2012 Q4 2012

Estimates**

16

2% 2% 2% 2%

38% 28% 25% 24%

27% 39% 39% 41%

33% 31% 34% 33%

2000 2009 2011 2015E

1616

6,9 9,4 10,1 12,8 18,223,6 24,4 26,1 31,0 35,8

70,1

35,8

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

E

2015

E

16

The Russian Meat Market is a Sizeable and Fast Growing Opportunity

Production Volume(mln tonnes)

1

Source: Russian Meat Union1 Meat prices in 2010 -2015 assumed to grow at CPI rate (EIU)

Significant growth of Russian economy and disposable income creates significant opportunities for the domestic meat market

Annual Per Capita Meat Consumption, kg (2011) Russian Meat Market evolution

Production value1 (US$ bn)

Shift in Russian Meat Market Structure (volume)1

Source: Russian Meat Union, FAPRI, Global Insight, World Bank Database

Source: Russian Meat Union1 Basing on internal consumption

Biological norm – 75 kg

Poultry

Beef

Pork

CAGR: 6.3%

CAGR: 21.3%

10993 83 76 65 78

50

70

90

110

USA Australia Canada EU Russia USSR(1988)

Source: Russian Meat Union

2016E

72

Mutton

4,4 4,4 4,6 4,9 4,9 4,9 5,1 5,6 6,2 6,69,2

7,1

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

8,4

2015

E

17

(1) * In volume terms (2011)(2) ** In volume terms (slaughter-weight, 2011)(3) *** In volume terms (live weight, 2011)(4) **** Management estimates

Source: National Pork Union of Russia, Company

Pork***

Well Positioned to Drive Industry Consolidation2

Fragmented market creates a platform for organic growth and consolidation

Source: Russian Poultry Union, Company

Poultry**Meat Processing*

Source: Meat Union Estimates, Company Estimates

Top 3 producers in US account for approx. 38% of the market****


Top 3 producers in US account for approx. 57% of the market ****

Top 3 producers in US account for approx. 57% of the market ****



Belaya Ptitsa2,9%

Lisko Broiler1,8%

Chelny Broiler1,7%

Alpi Holding1,6%

Prodo-Trade4,8%

Belgrankorm5,6%

Resurs5,8%

Severnaya poultry farm 5,9%

Cherkizovo Group10,1%

Prioskolie14,1%

Others45,7%

Others73,2%

Dymov1,0%

Ostankino5.9%

Tavr1,0%

Tsaritsino2,4%

Mikoms2,5%

Prodo4,2%

ABI Group4,4%

Cherkizovo5,4%

Others61,7%

Agro-Belogorie5,7%

Prodo3,8%

Rusagro3,4%

Agrarian Group3,3%

KoPitania3,2%

Eksima1,9%

Komos Group2,1%

APK Don1,8%

Miratorg7,7%

Cherkizovo Group5.4%

18

Poultry Meat Processing

LocalNational LocalNational

Premium

Medium

Low

# 1 in Moscow region

Leading Portfolio of Brands3

Powerful well-known brands– Cherkizovsky products enjoy very high levels

of brand recognition and customer loyalty in the Central Russia and Volga region

– Petelinka accounts for almost all of the Company’s chilled cut poultry sales

– Petelinka – #1 brand in Moscow and Moscow region

– Chicken Kingdom has very high customer loyalty throughout the Central Federal District of Russia

– During 2011 we added the high-profile Mosselprom brand to our portfolio

Strong portfolio of federal brands covering the entire price spectrum

19

Distribution and Storage Network

St. Petersburg

VologdaMoscow

Lipetsk

UlyanovskBelgorod

Rostov

Kazan

Ekaterinburg

Chelyabinsk

TambovPenza

Labinsk

Naro-Fominsk

Distribution and Storage Network

St. Petersburg

VologdaMoscow

Lipetsk

UlyanovskBelgorod

Rostov

Kazan

Ekaterinburg

Chelyabinsk

TambovPenza

Labinsk

Naro-Fominsk

Best in Class Distribution Network reaching a Well-diversified Customer Base

4

Company’s distribution network covers all Russian Federal Districts

Daily deliveries by a dedicated fleet of refrigerated trucks provide a significant competitive advantage

Warehouse network throughout European part of Russia

Strong relationship with independent distributors

Unique software system to ensure timeliness and quality of delivery

Company’s well developed distribution network is a key success factor and major barrier for entry

Meat Processing breakdown of sales by channel*, 2011

Poultry breakdown of sales by channel*, 2011

21%

14%

23%

22%

55%

Traditional Retail Modern Retail Wholesale

*Source: Company

13%

47%

40%

Traditional Retail Modern Retail Wholesale

2020

Vertically Integrated within the Segments

Prodo

Land and Grain

Fodder *** ()* **

Farm ownership

Pork/Poultry Breeding / /*** ()* / /** / / /

Meat Processing

Centralised distribution

Degree of vertical integration

5

35 44 4

Land and Grain Distribution

Quality control andcost optimisation

Fodder Pork and Poultry Processing

Quality andbiological safety

Lower dependence onimports and suppliers

Capture margins fromvalue-added products

Note: Degree of integration of different players based on Cherkizovo management judgment* Cattle activities ** Former Sadia operations *** Attributable to Pilgrim’s Pride acquisition

Fully Owned Farms as a Key Differentiating Factor

4 4

21

Vertically Integrated within the SegmentsAgricultural Land

5

Key facts Significant strategic benefits

28,212 ha Tambov Region – in ownership 14,615 ha in Lipetsk and 5,454 ha in Penza regions –

long-term lease 16,000 ha in Saratov region – 10,000 ha is in

ownership and 6,000 is in long-term lease Appr. 30,000 ha in Orel region – acquired as part of

Mosselprom Access to quality land – the “black earth” farming

region is considered one of the best land in the world

Conveniently located close to pork facilities Securing feedstock on a long-term basis at

controllable cost Option to use manure as highly efficient and natural

fertilizer Cropping is outsourced to NAPKO, a crop raising

company

Land is a strategic asset that provides a hedge against grain price increase

Access to landbank of approx. 100,000 ha

Opportunity to secure reliable feedstock

22

Well-invested Production Assets6

Low cost production assets enabling high profit margins

Moscow

56.0.10.8

121.3.

Lipetsk85.050.0 Tambov

25.0 Penza

83.070.5. Ulyanovsk

8.6

Annual production capacity

Meat processing (tpa)

Poultry (lwt) Pork (lwt)

Vologda

5.0

Bryansk71.0

Kaliningrad4.3

Incl. slaughter facilities.

tpa – ‘000 tons per annumswt – ‘000 slaughter weight tonneslwt – ‘000 live weight tonnes

Pork - greenfield acquisitions (lwt)

12.5

12.5

Greenfield pork facilities enable to achieve industry leading margins as efficiency indicators are 50-70% higher compared to old pork farms

State-of-art broiler and breeder farms and processing plants use finest breeds and latest technologies

Cherkizovo controls the quality for the customer throughout the production chain

Pork quality confirmed by “Ecological Product” certification

12.512.5

Voronezh

Pork - greenfield construction (lwt)

12.5

31.0Orel

12.5Kursk

12.0

Tula

22.0

0

6

12

18

24

2010 2011 2012 2013 2014 2015 2016

0

6

12

18

24

2012 2013 2014 2015 2016 2017 2018

23

050

100150200250

300350400450500

2011 2012

Poultry import quotas Pork import quotas1

Subsidized Not subsidized

Favourable Regulatory and Tax Environment7

Profit Tax Rate for Producers, %Debt Structure as of 2011Import quotas (000’ tonnes)

Effective cost of debt is 2% in 2011

Attractive returns on invested capital

Attractive tax rate for agricultural producers

Low effective Group tax rate Government considers

prolongation of the zero rate

Attractive Tax RegimeSubsidised Interest Rate RebateImport Quotas and Regulation

Opportunity for domestic producers

7%

Source: Official Statistics Source: Company reports Source: Official Statistics, MinFin

Poultry import – all imports are leg quarter parts, no bird in whole is allowed

Russia’s admission to WTO – pork quotas will remain at the level of 2012 until 2020 and poultry quotas - until 2020 and beyond. After 2020 duty on pork will be 25%

Duty on import of live pigs will decrease from 40% to 5% in the second half of 2012.

High EBITDA to Net Income conversion ratio

93%350

330

500

430

2011 2012

RUR 24,063.5 mln

0

18 20

0

6

12

18

24

2012 2013 2014 2015 2016 2017 2018

24

8%

4%

7%4%

8%9%

8%

5%6%6%7%

4% 4%5%

4%5%

EBITDA

margin 08

EBITDA

margin 09

EBITDA

margin 10

EBITDA

margin 11

Fleury Michon**** Atria****

Cherkizovo*** HKScan****

40%

37%

41%

4%

2%

13%

41%

8%

14%

9%

14%

5%

9%10%

6%

12%

EBITDA

margin 08

EBITDA

margin 09

EBITDA

margin 10

EBITDA

margin 11

Cherkizovo** China Yurun****

People's Foods**** Brazil Foods****

18%

26%

16%

21%

13%

6%

10%12%

7%

EBITDA

margin 08

EBITDA

margin 09

EBITDA

margin 10

EBITDA

margin 11

Cherkizovo* Brazil Foods****

24

Attractive Financial ProfileProfitability

8

Leading profitability indicators (EBITDA margin %)

Source: Company filings; operating income is assumed to be equivalent to EBIT for benchmarking purposesNote: Average excludes Cherkizovo

Poultry Pork Meat processing

Avg. 4%

Avg. 10%

Avg. 9%Avg. 6% Avg. 6%

*Poultry division **Pork division ***Meat processing ****Group margin

Avg. 8%

Avg. 5%

Avg. 10% Avg. 10%Avg. 6% Avg. 6% Avg. 4%

2525

Attractive Financial ProfileBest In Class Financial Performance

25

8

Significant Improvement in Financial Performance (RUB mln)

EBITDA Margin (%)Sales Growth

+20%

Net Income GrowthEBITDA Growth

+30%

+38%

17,042.3

20,992.7

28,991.4

32,330.717.8%

13.1%14.2%

11.5%

60.4%

20.4%

30.9%

6.8%

4.5%

16.7%

12.7%

5.6%

5.1%

8.2%

1,967.1

2,977.0

3,786.4

5,782.9

9.8%

44.4%

30.0%

28.0%

7.6%

876.1

1,575.1

1,941.3

3,789.1

Source: Broker estimates, Company filings (figures as per company’s fiscal year end),

Sales CAGR (2006-2011) EBITDA Margin 2011

EBITDA CAGR (2006-2011)Net Income CAGR (2006-2011)

36,085.1 18.4%

6,635.6

43,284.4

7,214.1

16.7%

4,385.6 4,344.2

2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011

2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011

37.7%

29.1%

15.4%

12.0%

(11.5%)

2626

Evgeny Mikhailov

Yury Dyachuk

Corporate GovernanceStrong Board of Directors

Igor BabaevChairman

30+ years of experience in the Russian meat industry

Sergey Mikhailov

• CEO and shareholder

• Head of Legal Department

• Head of Project Development and shareholder

MushegMamikonian

• Independent member

• President of Meat Union of Russia

• 20+ years of experience in the industry

Samuel B. Lipman

• Independent member

• American poultry expert

• 20+ years of experience in the poultry industry

9

Marcus Rhodes• Independent

member• Chairman of Audit

Committee• 20 years in audit• 2002-2008 - Audit

Partner, E&Y• Degrees from

Loughborough University and ICA, Great Britain

27

• 15 years in the industry

• 2000-2006 – First Deputy President for

Finance and Economics,

Cherkizovsky MPP• Prior to that – Finance and Economics Director

of Birulovsky Meat Processing Plant

• PhD in Economics from the Moscow Plekhanov Institute for National Economy


• Joined the Company in 2001 as Director for Marketing

• Prior to that, founder of aTelo telecommunications company, in Washington, DC

• BA from Georgetown University (Finance and Economics)


• 2002-2004- Financial Analyst in General Mills Corporation, Canada

• Prior to that - Head of corporate finance

division of Cherkizovsky MPP

• BA from Finance Academy, Moscow;

MBA from York University, Canada

Dedicated Management Team

Arthur MinosyantsCOO

Arthur MinosyantsCOO

Sergey MikhailovCEO

Sergey MikhailovCEO Ludmila Mikhailova

CFO

Ludmila MikhailovaCFO

9

Appendix

2011 Consolidated Financial Statements

30

Key Consolidated Income Statement and Data

Operating Expenses

Sales

Cost of sales

Gross Profit

Gross Margin

EBITDA

EBITDA Margin

Operating Income

Operating Income Margin

Net Income

As % of Sales

1,188.2

864.4

27%

156.9

218.5

166.9

14%

144.4

12%

323.8

18%

1,472.9 1,103.6

25%

195.5

245.5

170.4

12%

147.8

10%

17%

369.3

Period, US$ mln 2010 2011

Impairment of assets - 3.4

31

Cash and Equivalents 28.2

77.6

219.7

98.7

424.2

1,142.4

Other Non-current Assets 116.1

1,258.5

1,682.7

88.2

Short-term Debt 214.1

Other current liabilities 56.0

Total current liabilities 358.3

Long-term debt 533.3

Other non-current liabilities 30.6

Total non-current liabilities 563.9

Shareholders’ equity 760.5

Total Liabilities and Shareholders’ Equity 1,682.7

Trade Accounts Receivable

Plant, Property and Equipment

Total Non-current Assets

Total Assets

Inventory

Other Current Assets

Total Current Assets

Trade Accounts Payable

Cherkizovo Group – Balance Sheet


68.2

81.3

135.0

467.7

937.6

66.7

1,004.3

1,471.9

73.3

182.5

50.6

306.4

465.9

29.6

495.5

670.1

1,471.9

183.2

32

Summary Consolidated Cashflow Statement

148.7

50.7

4.4

(37.5)

166.3

(170.6)

(42.3)

(212.9)

90.9

75.5

(0.6)

28.3

Net Income

Depreciation

Adjustments for Non-Cash Items

Change in Net Working CapitalNet Operating Cash Flow

Purchases of PP&E

Other Investing Cash FlowNet Investing Cash Flow

Proceeds from/(Repayment of) Debt

Net Financing Cash Flow

Exchange Rate DifferenceNet Increase in Cash and Equivalent

150.8

65.3

11.9

4.2

232.2

(211.9)

(2.1)

(214.0)

(29.2)

(59.0)

0.9

(39.9)


(15.4)Other financing Cash Flow (29.8)

33

Transformational Project – Elets Agroindustrial Park

New production – 125 000 tonnes of poultry, sellable-weight Investments into total project – 19.5 bln roubles (incl. VAT and working capital)

• Incubation site – 230 mln incubation eggs per year• 5 broiler sites for 280 broiler houses and 4 parent stock sites• Fodder plant – 90 tonnes of fodder per hour• Poultry slaughter and processing plant – 24 000 units per hour• Pig slaughter and processing plant – 650 units per hour• Transport and logistical infrastructure

Construction of state-of-the-art sites in one production area

• Est. Debt – 15,6 bln RUR• Est. Equity – 3,9 bln RUR• Est. Payback – 6,5 years• Cost of Debt – 0,22% • Debt maturity – 10 years

Estimated project parameters

2

Production volumes, 000, sellable-weight tonnes

20110

194 228 255 295 300 300194

310355

360 360

260

20

110

2

0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012E 2013E 2014E 2015E

Organic growth and Mosselprom Elets project

470

380357

Investments, mln RUR (excl. VAT) per unit

Broiler farm 115 thous. tonnes selleable weight 4441 38,7

Feed mill 558 thous, tonnes per year 4,1Elevators 462 thous. cubic m (grain)

Breeder farm 98,5 mln hatching eggs 2758 28,0Hatchery 230 mln eggs 847 3,7Slaughter plant 24 000 units per hour 113,1 3061 27,1Logistics 1169

TOTAL 14564

mln units per year

2288

POULTRY PROJECT

34

THANK YOU!

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