WITH RESPECT TO PEOPLE AND LAND

Kyiv, April 17, 2015

IMC: about results of 2014 year

Despite the difficult political and economic conditions in Ukraine in 2014, IMC in 2014 achieved significant growth of key financial and operating indicators as compared with 2013 year.
The company achieved its updated financial forecast for 2014, reaching a Revenue growth of 20% compared with 2013 year up to USD 138.3 mln and EBITDA growth of 16% in comparison with 2013 year up to USD 57.4 mln.
Net cash flow from operating activities in 2014 amounted to USD 25.2 mln.
Due to the devaluation of the hryvnia in 2014 IMC received net foreign currency exchange loss to the amount of USD 73.5 mln. The main part of this loss (USD 72.2 mln) is non-cash loss attributable to the revaluation of the USD-debt of Ukrainian enterprises of IMC, which is held in accordance with the accounting requirements of IFRS. In fact IMC bears no losses associated with the presence of USD-debt at Ukrainian enterprises of the company, as IMC has export USD-revenue from sales of its products, which is used to repay and service the debt. In 2014 the export USD-revenue of IMC was 68% of the total revenue for the period.
Taking into account the above-mentioned net foreign currency exchange loss, in 2014 Net loss of IMC amounted to USD 47.3 mln. Excluding net foreign currency exchange loss, Net profit of IMC in 2014 amounted to USD 26.2 mln.
94% of revenue was obtained in crop farming segment. In 2014 IMC increased volume of sales in crop farming segment by 72% compared with 2013 to 648.7 ths tonnes. Primarily, the increase in sales was due to the growth of sales of main crop of IMC - corn. In particular, sales of corn rose 2.5 times to 505.6 ths tonnes. Significant growth of sales of grains and oilseeds was partially offset by lower prices for them by 7-20% compared with
2013 year. As a result, in value terms, sales growth in crop farming segment amounted to
28% to USD 129.7 mln.
In 2014, IMC increased production of grain and oilseeds by 27% to 706 ths tonnes, due to increased land bank under processing and growth of the yield of the main crops.
The company's sales in dairy farming segment in 2014 decreased by 30% to USD 7.9 mln, mainly due to the reduction of milk prices in dollar terms by 29% compared with 2013 year. The decline of milk prices in dollar terms was caused by the devaluation of hryvnia and by the ban on import of Ukrainian dairy products to Russia.
Milk production at IMC's farms in 2014 amounted to 22.5 ths tonnes, which is 5% lower than in 2013. A slight decrease in milk production was due to the implementation of the project
on the optimization of dairy herd and culling the least productive animals (12% of the cow livestock was culled). As a result of optimization, the average milk yield in the IMC increased by 2% compared with 2013 year to 5.4 tonnes per cow.

'Along with good operating and financial results in 2014, with the support of our partners and consultants (IFC, Ernst & Young), we managed to realize a very important projects on optimization of the organizational structure of the company, on improvement of the efficiency of business processes, projects on staff development and staff renewal, the project on development of the motivation system for the employees. We have formed the basis for the efficient operation activity of the company and company's future development and growth, '- said Alex Lissitsa, CEO of IMC.

For more information about IMC please visit our web-site: www.imcagro.com.ua

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