Investment offer

Name of the project and company information:

Project name: «Creation of a single complex for the production of biological and pharmaceutical production»

Project branch: pharmaceutical

Type of investor participation: New enterprise

Project location: 210602, Vitebsk city, Frunze avenue, 77

Anticipated start date of the project: 2012

Company’s full name (project partner /initiator): the joint stock company «BelVitunipharm»

Type of ownership: Private

Registration date: 21.04.2011

Authorized fund structure: state- 99 %, non-state entities- 0 %, foreign stakeholders- 0,013 %, other stakeholders- 0 %.

Current financial results (optional): Entry place

Project description (idea/preconditions, project stages and actual project status, expected results): The implementation of the investment project that set the industry, providing saturation of the domestic market effective drugs, manufactured in accordance with international standards of Good Manufacturing Practice (GMP)

Market characteristics of the planned production

Product description:

product name and description: veterinary drugs and money lekarstveenye

main consumers: wholesale and retail chains

availability of goods with similar product performance: RB on the market partly present analogues

prospective distribution channels (including geographical distribution): CIS countries, North Africa and the Middle East

Describtion of the current domestic market of the production planned:

market capacity: 950 U.S. $ million

government regulation (price controls, licensing, etc.): price are regulated by the state for certain medications, are licensed to the veterinary and pharmaceutical activities

other (please specify): Entry place

Key domestic market indicators of the production planned:

annual output of the sector (in current prices) Select in year

return on sales ( %): (in year)

average nominal monthly wages of the similar businesses: Select (in year)

the degree of concentration (the approximate aggregate market share of the top five players, %):

Competitive advantages of the project

Infrastructure available:

Railway lines and roads:

own railway branch (specify distance in km):

Belarusian Railway (specify distance in km): 7

republic-wide roads (specify distance in km): 15

other roads with improved surface (specify distance in km):

Communications availability:

power grid (voltage: 10000, distance in km: 0,01)

plumbing

gas pipeline

Land and production facilities:

land availability (area: 4,5, purpose: Entry place)

presence of structures (area: 33, purpose: production and administrative, short description: Entry place)

Other infrastructure

warehouses, logistics terminals (area: , description: Entry place)

possibility to expand production and install additional facilities

possibility to create the necessary infrastructure via state budgetary financing (description: Entry place)

other (specify): Entry place

Strategic advantages:

strong brand

profiled staff

supply chain of raw materials and components

distribution network

undesaturated market in Belarus for the production proposed

Common Free Market Zone entry

guaranteed volumes of orders (from Select)

use of local raw materials

availability of valid patents, licenses, permits:

other (specify):

Financing requirement

Total investment: 50 € million, including capital expenditures: 0 Select

Financing requirement for investor: 43 € million

Preliminary indicators of project efficiency

Sales revenue, without VAT (after reaching the estimated capacity: 52 € million;

Pay-back period: 5 years;

Dynamic pay-back period: 7 years;

Internal rate of return (IRR) 16.75 %;

Net present value (NPV). 2.4 € million

Discount rate: 10 %

Business plan/feasibility study availability: business plan

Annotations: Entry place

Contacts

Person responsible for the project (Name, position): Gobergrup Raisa, chief economist centralized accounting.

Telephone: work 80212425763; mobile 80293502101

Fax: 80212425763

E-mail oblzdrav@vitebsk.by

Website: http://med.vitebsk.by

Date of investment offer completion: 25.06.2014.