Mhp Reg S Regulatory News (MHPC)

PRESS RELEASE

November 14, 2013, Kyiv, Ukraine

MHP S.A.

Unaudited Financial Results for the Third Quarter and

Nine Months Ended 30 September 2013

MHP S.A. ("MHP" or the "Company", LSE ticker: "MHPC"), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, today announces its unaudited results for the third quarter and the nine months ended 30 September 2013.

OPERATIONAL HIGHLIGHTS

Poultry and related operations

§ During the first nine months of 2013 ("9M 2013") all the Company's chicken production facilities continued to operate at full capacity.

§ At the end of the period the Vinnytsia poultry complex operates at full capacity on 7 rearing sites (out of 12).

§ The Company's share of industrially produced chicken in Ukraine in 9M 2013 remained around 50%.

§ During 9M 2013 MHP increased its overall production volumes by 18% to 346,940 tonnes (9M 2012: 295,000 tonnes) driven by an increase in production at the Vinnytsia poultry complex.

§ Chicken meat sales to external customers in 9M 2013 amounted 325,430 tonnes of poultry, which was 19% higher than in 9M 2012.

§ Despite the average chicken meat price in Q3 2013 remained almost at the same level as in Q2 2013, through the nine months of 2013 average chicken prices decreased by 6% to UAH 16.21 per kg of adjusted weight (excluding VAT) when compared to the nine months of 2012 as a result of stable price for fresh chicken in Ukraine and increased export share of total poultry sales volumes of the Company (frozen chicken meat).

§ During Q3 2013, the volume of exported chicken meat sales continued the growing dynamics of previous quarters, exploring new business opportunities in different business regions. This resulted in growth of export sales in 9M 2013 to 84,780 tonnes which is higher by almost 2.6 times of export sold in 9M 2012. The chicken meat export sales constituted 26% of total chicken sales of the Company.

§ In 9M 2013 MHP sold 175,260 tonnes of sunflower oil (9M 2012: 147,100 tonnes) at an average price US$ 1,097 per tonne, which remained almost at the same level as in 9M 2012, in line with international commodity market trends.

Grain growing

§ During the 9M 2013 the Company increased its land bank by 35,000 hectares in Ukraine and by 40,000 hectares in the Russian Federation.

§ In 2013 the Company is to harvest from around 290,000 hectares of land in grain growing operations and around 30,000 hectares of land in other agricultural operations.

§ The Company's 2013 harvest campaign is almost complete. MHP's crops yields are significantly higher than Ukraine's average and higher than last year.

§ Current MHP's corn yield is about 9.4 t/ha (according to preliminary estimates) compared to 7.6 t/ha in 2012. The corn harvest is on track and around 85% completed.

Other agriculture

§ Due to the product portfolio optimization, sausage and cooked meat production volumes decreased by 4% to 25,470 tonnes in 9M 2013 compared to 26,610 tonnes in 9M 2012.

§ The Company's market share of Ukraine's sausage and cooked meat products in Ukraine remained stable at around 10%.

FINANCIAL HIGHLIGHTS

Q3 2013 highlights

§ Revenue in 3Q 2013 comprised US$ 422 million which is 9% higher than compared to Q3 2012 as a result of higher volume of chicken meat sold.

§ EBITDA of US$ 123 million, decrease by 17% compared to Q3 2012, predominantly due to inflated poultry production cost, softening average poultry prices and lower prices for crops harvested in 2013.

§ Net income of US$ 60 million decreased by 46% compared to US$ 111 in Q3 2012 reflecting the reduction in EBITDA, higher depreciation related to new Vinnytsia poultry complex and increased finance costs. Finance costs increased as compared to 3Q 2012 due to increased interests expenses related to new Eurobond issued in April 2013 and decreased amount of finance costs eligible for capitalization - as a result of the Vinnytsia poultry complex gradually launch.

9M 2013 highlights

§ Revenue of US$ 1,078 million remained stable compared to 9M 2012 mostly as a result of higher volume of chicken meat sold which being offset by lower external grain sales..

§ EBITDA of US$ 317 million, decrease by 17% compared to 9M 2012, predominantly due to inflated poultry production cost, softening average poultry prices and lower prices for crops harvested in 2013.

§ Net income of US$ 150 million decreased by 47% compared to US$ 281 million in 9M 2012 reflecting the reduction in EBITDA, higher depreciation related to new Vinnytsia poultry complex and increased finance costs. Finance costs increased as compared to 9M 2012 due to one-off transaction costs and increased interests expenses related to new Eurobond issued in April 2013, as well as due to decreased amount of finance costs eligible for capitaliation - as a result of the Vinnytsia poultry complex gradually launch.

COMMENTING ON THE RESULTS, YURIY KOSYUK, CHIEF EXECUTIVE OFFICER OF MHP, SAID:

"Despite challenging macroeconomic situation in Ukraine the Company continued to grow and develop its businesses by increasing our poultry production capacity and extending our land bank.

This year our poultry sales mostly grew due to the increased export trades exploring new markets across the regions. We are pleased with our progress with the EU export as the first delivery was fulfilled recently, in late October.

We gathered an excellent harvest this year from our land in Ukraine. But weaker grain prices which are in line with the world trends, drive us to lower 2013 financial results, than projected. However, lower priced crops harvested in 2013 will decrease poultry production cost in 2014, which, combined with increasing production of chicken meat and our recent acquisition of land in Russia and in Ukraine will be the core drivers to improve the Company's financial and operational results in 2014.

Our vertically integrated business model, strong market position, highly competitive cost base, investment in expansion programs and diversified export strategy is a sound platform for a strong performance in the financial year ahead and beyond."

- end -

MHP's management today will host a conference call for investors and analysts followed by a Q&A session. The dial-in details are:

A live webcast of the presentation will be available at:

https://webconnect.webex.com/webconnect/onstage/g.php?t=a&d=669612804

FINANCIAL OVERVIEW

[1] pps - percentage points

Q3 2013 Consolidated Financial Results

Consolidated revenue totaled US$ 422 million which is 9% higher than compared to US$ 389 million in Q3 2012, mostly due to higher chicken meat sales volumes which was partly offset by lower external grain sales amounted to US$ 49 million in 3Q 2013 compared to US$ 69 million in Q3 2012. Export sales comprised US$ 149 million or 35% of total revenue in Q3 2013 (US$ 139 million or 36% of total sales in Q3 2012).

EBITDA decreased by 17% to US$ 123 million (Q3 2012: US$ 149 million), with EBITDA margin reduced from 38% to 29%, due to the lower grain prices for crops harvested in 9M 2013, which are in line with market trends.

Net income constituted US$ 60 million, which is 46% less than US$ 111 million in Q3 2012. Net income margin decreased from 28% to 14% correspondingly. The main factors for the decline in net income are the same as for EBITDA, as well as higher depreciation related to new Vinnytsia poultry complex and increased financial costs. Finance costs increased as compared to 3Q 2012 due to increased interests expenses related to new Eurobond issued in April 2013 and decreased amount of finance costs eligible for capitalization - as a result of the Vinnytsia poultry complex gradually launch.

9M 2013 Consolidated Financial Results

Consolidated financial results in 9M 2013 had mostly the same dynamics as in Q3 2013. Revenue remained relatively stable at US$ 1,078 million (9M 2012: US$ 1,044 million) as the effect of higher chicken meat sales volumes effect was offset by significantly lower external grain sales. Despite significantly lower volumes of exported grains, total export sales comprised US$ 395 million or 37% of total revenue in 9M 2013 (US$ 342 million or 33% of total sales in 9M 2012) drived by higher chicken meat export volumes.

EBITDA decreased by 17% to US$ 317 million (9M 2012: US$ 379 million), with EBITDA margin declining to 29% (9M 2012: 36%), mainly due to lower profitability of the poultry and grain segments.

Net income in 9M 2013 was US$ 150 million, which is 47% less than in 9M 2012. Net income margin decreased from 27% to 14%, with the main drivers being the same as in Q3 2013 as well as due to one-off transaction costs related to new Eurobond issued in April 2013.

POULTRY AND RELATED OPERATIONS

[1] pps - percentage points

Q3 2013 Poultry and related operations segment financial results

In Q3 2013, chicken meat sales volumes to external consumers on an adjusted weight basis increased by 29% to the level of 120,080 tonnes (Q3 2012: 93,200 tonnes) due to the increased production volumes at the Vinnytsia poultry complex.

During Q3 2013 the volume of chicken meat export sales continued the growing dynamics of previous quarters, exploring new business opportunities in different business regions. The chicken meat export sales in Q3 2013 comprised 30,000 tonnes of frozen chicken, which is more than twice higher compared to Q3 2012.

Average chicken meat sales prices per 1 kg of adjusted weight (excluding VAT) during Q3 2013 remained almost flat compared to Q2 2013, however decreased by 8% to UAH 16.12 compared to Q3 2012 as a result of increased export share as well as lower export sales price at the new markets.

Sunflower oil prices declined by 3% to US$ 1,057 (Q3 2012: US$ 1,084) in line with world trends.

Poultry segment revenue increased by 18% to US$ 328 million (Q3 2012: US$ 278 million) mainly due to increase in sales volumes of chicken meat and sunflower oil.

Gross profit totaled US$ 86 million and was relatively flat as compared to US$ 89 million in Q3 2012, as higher chicken meat sales volumes were offset by increased feed costs and lower average poultry prices. Correspondingly, gross profit margin decreased from 32% in Q3 2012 to 26% in Q3 2013.

Segment's EBITDA totaled US$ 98 million and slightly increased as compared to the same period in 2012 due to increased volume of chicken meat sold. In line with the gross profit margin dynamic, EBITDA margin decreased from 34% to 30%.

9M 2013 Poultry and related operations segment financial results

Chicken meat sales volumes to third parties on an adjusted-weight basis in 9M 2013 grew by 19% and amounted 325,430 tonnes compared to 274,800 tonnes in 9M 2012. The average chicken meat sales price decreased by 6% to UAH 16.21 per kg (9M 2012: UAH 17.29 per kg) mostly due to the increased share of export in total poultry sales. Average sunflower oil prices were relatively flat and constituted US$ 1,097 per tonne (9M 2012: US$ 1,100 per tonne).

During the third quarter of 2013 the volume of chicken meat export sales continued the growing dynamics of previous quarters, exploring new business opportunities in different business regions. This resulted in growth of export sales during 9M 2013 by approximately 2.6 times to 84,780 tonnes of frozen chicken meat compared to 32,000 tonnes in 9M 2012.

Growth of chicken meat and sunflower oil production volumes contributed to an increase in segment revenue by 12% to US$ 899 million from US$ 812 million during 9M 2012.

Poultry production costs increased by 13% during 9M 2013 compared to 9M 2012 mainly affected by higher cost of fodder due to higher grain prices and sunflower protein cost.

Gross profit totaled US$ 219 million, which is 18% lower than in 9M 2012, and gross profit margin decreased from 33% in 9M 2012 to 24% in 9M 2013. Gross profit decrease was mainly driven by the same factors as for 1H 2013 and was mainly attributable to the increased poultry production costs and decrease in chicken meat sales prices. Poultry production costs increased by inflated corn prices in late 2012 while chicken meat sales prices softened due to the increased share of export sales.

During 9M 2013 poultry segment EBITDA decreased by 11% to US$ 254 million (9M 2012: US$ 287 million). EBITDA margin declined to 28% comparing to 36% during 9M 2012.

GRAIN GROWING OPERATIONS

In 2013 the Company expects to harvest around 290,000 hectares of land in Ukraine in grain growing segment as well as 30,000 hectares of land in other agricultural operations. It is expected that contribution to the financial results of 2013 of the newly acquired grain growing business cultivating 40,000 hectares in the Russian Federation will be insignificant.

[1] for 2013 only land of grain growing segment, excluding recently acquired land in Russian Federation and excluding land in other agricultural segment; for 2012 only land of grain growing segment, excluding land in other agricultural segment;

 [2] including barley, rye, sugar beet and other and excluding land left fallow as part of crop rotation;

[3] preliminary data, harvesting campaign 2013 is ongoing, corn and soybean as of today is 85% and 95% completed, respectively.

[1] MHP yields are net weight, Ukraine - bunker weight;

[2] preliminary data, harvesting campaign 2013 is ongoing, corn and soybean as of today is 85% and 95% completed, respectively.

Segment revenue declined to US$ 59 million during 9M 2013, compared to US$ 126 million over a 9M 2012 period due to lower volumes of external grain sales in H1 2013 and decreased prices for crops harvested in 2013 which corresponded to market trends.

Decline in IAS 41 standard gains as well as in segment's gross profit reflected lower prices for crops harvested in 2013 compared to prices for crops harvested in 2012.

The Company's corn and soybean harvest campaigns are ongoing and as of today 85% and 95% is complete accordingly.Current yields are around 20% higher than last year despite challenging weather conditions in the time of harvesting campaign.

OTHER AGRICULTURAL OPERATIONS

[1]pps - percentage points

In Q3 2013 sales volumes of sausage and cooked meat products decreased by 7% to 9,360 tonnes compared to 10,100 tonnes in Q3 2012 due to continuing product mix optimization. The sales volume of meat processing products during 9M 2013 fell by 4% year-on-year to 25,470 tonnes. MHP's market share remained stable at about 10% of the Ukrainian meat processing market.

Average sausage and cooked meat prices increased by 8% in Q3 2013 (UAH 24.16 per kg in Q3 2013 compared to UAH 22.34 per kg in Q3 2012) and by 6% during 9M 2013 (UAH 23.34 per kg over a period 9M 2013 compared to UAH 22.02 per kg during 9M 2012).

The segment's revenue in Q3 2013 increased by 7% to US$ 46 million compared to US$ 43 million in Q3 2012 due to increased fruit sales. During 9M 2013 the revenue of other agricultural operations was slightly higher comparing to 9M 2012 and totaled US$120 million and US$ 116 million respectively.

Gross profit totaled US$ 7 million in Q3 2013 (Q3 2012: US$ 3 million) and US$ 14million during 9M 2013 (9M 2012: US$ 8 million). The segment's EBITDA increased to US$ 7 million in Q3 2013 compared to US$ 2 million in the same period of 2012 and correspondingly rose by 101% year-on-year to US$ 18 million during 9M 2013 (9M 2012: US$ 9 million) due to higher returns earned in meat processing and fruit operations. EBITDA margin increased to 15% which twice higher compared to 9M 2012.

CURRENT GROUP FINANCIAL POSITION, CASH FLOW AND LIQUIDITY

Cash flow from operations before working capital increased to US$ 118 million in Q3 2013 (Q3 2012: US$ 109 million) and amounted to US$ 247 million in 9M 2013 (9M 2012: US$ 296 million) mostly in line with EBITDA trend.

In 9M 2013 the US$ 11 million working capital decrease was majorly drived by 3Q 2013 trends and was attributable to the following:

§ decrease in inventories due to both, lower volume of purchased sunflower and at the lower price;

§ approximately nil VAT recoverable (9M 2012: US$ 42 million) as result of less intensive CAPEX;

Total CAPEX was US$ 108 million in Q3 2013 and US$ 226 million in 9M 2013, and mostly related to the Vinnytsia poultry complex as well as to the land expansion in the Russian Federation and in the Ukraine which added 75,000 hectares in total.

DEBT STRUCTURE

As of 30 September 2013, the Company's total debt was US$ 1,325 million, most of which was denominated in US Dollars. After the new Eurobond issued in April 2013 our debt structure improved significantly with share of Long Term Debt increased to 87% from 72% of total debt. The weighted average cost of debt now is about 8% with an average interest rate decreased by 0.50%.

About 70% of total debt is in Eurobonds, 25% of which matures in April 2015 and 75% in April 2020.

At the end of 9M 2013, MHP's cash and short-term bank deposits comprised US$ 180 million. Net debt decreased to US$ 1,145 million as of 30 September 30. Net Debt/EBITDA ratio at the end of the period was 2.83 (Eurobond covenant: 3) as a result of negative trends in LTM EBITDA.

As a hedge for currency risks, revenues from the export of sunflower oil, sunflower husks and chicken meat are denominated in US Dollars, fully covering debt service expenses. During 9M 2013 the Company received US$ 395 million from export sales of sunflower oil, chicken meat and grains compared to US$ 342 in the same period of 2012.

OUTLOOK

We will continue gradually increasing of production capacity at each site of the Vinnytsia poultry complex and by the end of 2013 two more rearing brigades will be launched in operations. Furthermore to finalize Phase 1 of the Vinnystia complex in 2014 final 3 brigades will become operation that will accelerate production of poultry by up to 20% year-on-year.

Despite challenging weather conditions at the beginning of autumn, the Company's 2013 harvest is much stronger than in 2012 and the harvesting campaign of corn is almost complete. Profitability of the grain growing segment though is expected to be lower than last year as a result of lower grain prices due to the sound harvest worldwide, which will be compensated in improved poultry production costs. It will have a positive effect in 2014 financial result in a poultry division as well as in overall Company's performance. .

Although overall financial results of 2013 are expected to be lower than previously projected, our increasing production both in crops (extended land bank) and in chicken meat (the Vinnytsia poultry complex) will enable us substantially increase MHP operational results and improve financial performance in 2014.

We are confident that we will be able to continue to implement our strategy and keep on delivering sound financial results as one of the leading agri-industrial companies in Ukraine.

- End -

NOTES TO EDITORS:

About MHP

MHP is the leading producer of poultry products in Ukraine with the greatest market share and highest brand recognition for its products. MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and grow out to processing, marketing, distribution and sales (including through MHP's franchise outlets). Vertical integration reduces MHP's dependence on suppliers and its exposure to increases in raw material prices. In addition to cost efficiency, vertical integration also allows MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale. To support its sales, MHP maintains a distribution network consisting of 11 distribution and logistical centres, within major Ukrainian cities. MHP uses its trucks for the distribution of its products, which Management believes reduces overall transportation costs and delivery times.

MHP also has a leading grain cultivation business growing corn to support the vertical integration of its chicken production and increasingly other grains, such as wheat and rape, for sale to third parties. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.

Since May 15, 2008, MHP has traded on the London Stock Exchange under the ticker symbol MHPC.

Forward-Looking Statements

This press release might contain forward-looking statements that refer to future events or forecast financial indicators for MHP S.A. Such statements do not guarantee that these are actions to be taken by MHP S.A. in the future, and estimates can be inaccurate and uncertain. Actual final indicators and results can considerably differ from those declared in any forward-looking statements. MHP S.A. does not intend to change these statements to reflect actual results.

MHP S.A. AND ITS SUBSIDIARIES

Interim condensed consolidated Financial Statements

For the nine-month period ended 30 September 2013

CONTENT

MANAGEMENT STATEMENT................................................................................................................ (a)

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2013

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME............................. 3

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION...................................... 4

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY...................................... 5

INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT......................................................... 7

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS................................. 9

1. Corporate information........................................................................................................................ 9

2. Changes in the group structure......................................................................................................... 10

3. Basis of preparation and accounting policies..................................................................................... 11

4. Segment information....................................................................................................................... 12

5. Profit for the period.......................................................................................................................... 13

6. Property, plant and equipment.......................................................................................................... 13

7. Long-term VAT recoverable, net........................................................................................................ 14

8. Inventories and agricultural produce.................................................................................................. 14

9. Biological assets............................................................................................................................ 14

10. Bank borrowings........................................................................................................................... 14

11. Bonds issued............................................................................................................................... 15

12. Related party balances and transactions........................................................................................ 16

13. Contingencies and contractual commitments.................................................................................. 17

14. Dividends..................................................................................................................................... 18

15. Risk management policy............................................................................................................... 18

16. Authorization of the interim condensed consolidated financial statements.......................................... 19

MANAGEMENT STATEMENT

To the best of our knowledge, the unaudited interim condensed consolidated financial statements prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" give a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole, and the management report include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that they face.

13 November 2013

On behalf of the Board:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoria Kapelyushnaya

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the nine-month period ended 30 September 2013

(in thousands of US dollars, unless otherwise indicated)

On behalf of the Board:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoria Kapelyushnaya

The accompanying notes on the pages 9 to 19 form an integral part of these interim condensed consolidated financial statements

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of 30 September 2013

(in thousands of US dollars, unless otherwise indicated)

On behalf of the Board:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoria Kapelyushnaya

The accompanying notes on the pages 9 to 19 form an integral part of these interim condensed consolidated financial statements

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the nine-month period ended 30 September 2013

(in thousands of US dollars, unless otherwise indicated)

On behalf of the Board:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoria Kapelyushnaya

The accompanying notes on the pages 9 to 19 form an integral part of these interim condensed consolidated financial statements

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the nine-month period ended 30 September 2012

(in thousands of US dollars, unless otherwise indicated)

On behalf of the Board:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoria Kapelyushnaya

The accompanying notes on the pages 9 to 19 form an integral part of these interim condensed consolidated financial statements

INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the nine-month period ended 30 September 2013

(in thousands of US dollars, unless otherwise indicated)

The accompanying notes on the pages 9 to 19 form an integral part of these interim condensed consolidated financial statements

INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT (continued)

for the nine-month period ended 30 September 2013

(in thousands of US dollars, unless otherwise indicated)

On behalf of the Board:

Chief Executive Officer Yuriy Kosyuk

Chief Financial Officer Viktoria Kapelyushnaya

The accompanying notes on the pages 9 to 19 form an integral part of these interim condensed consolidated financial statements

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

for the nine-month period ended 30 September 2013

(in thousands of US dollars, unless otherwise indicated)

1. Corporate information

MHP S.A. (the "Parent" or "MHP S.A."), a limited liability company (société anonyme) registered under the laws of Luxembourg, was formed on 30 May 2006. MHP S.A. was formed to serve as the ultimate holding company of PJSC "Myronivsky Hliboproduct" ("MHP") and its subsidiaries. Hereinafter, MHP S.A. and its subsidiaries are referred to as the "MHP S.A. Group" or the "Group". The registered address of MHP S.A. is 5, rue Guillaume Kroll, L-1882 Luxembourg.

The controlling shareholder of MHP S.A. is the Chief Executive Officer of MHP S.A. Mr. Yuriy Kosyuk ("Principal Shareholder"), who owns 100% of the shares of WTI Trading Limited ("WTI"), which is the immediate majority shareholder of MHP S.A.

The principal business activities of the Group are poultry and related operations, grain growing, as well as other agricultural operations (meat processing, cultivation and selling fruits and producing beef and meat products ready for consumption). The Group's poultry and related operations integrate all functions related to the production of chicken, including hatching, fodder manufacturing, raising chickens to marketable age ("grow-out"), processing and marketing of branded chilled products and include the production and sale of chicken products, sunflower oil, mixed fodder and convenience food products. Grain growing comprises the production and sale of grains.  Other agricultural operations comprise the production and sale of cooked meat, sausages, beef, milk, goose meat, foie gras, fruits and feed grains. During the nine-month period ended 30 September 2013 the Group employed about 30,854 people (31 December 2012: 27,800 people).

The Group has been undertaking a large-scale investment program to expand its poultry and related operations, and in May 2010 the Group commenced construction of the greenfield Vinnytsia poultry complex. As of 31 December 2012 the Group commissioned production facilities, which were completed to date, as well as started achieving a full production capacity. During the nine-month period ended 30 September 2013 construction works at Vinnytsia complex was performed as scheduled and the Group continues commissioning production facilities which were already completed.

The primary subsidiaries, the principal activities of the companies forming the Group and the Parent's effective ownership interest as of 30 September 2013 and 31 December 2012 were as follows: