1. Investment Case
On-going vertical integration to reduce production costs.
Investing in production efficiency.
Ready for raw cane sugar imports.
IPO plans.
2. Ukraine's Sugar Market
2.1 Market Capacity
Demand supported by stable domestic consumption
Industrial consumption outpaces the population's intake
Bioethanol as a potential demand driver
2.2 Players
Consolidation - the future of Ukraine's sugar industry
Large producers increase lobbying power
2.3 Industry Specifics: Seasonality
2.4 Regulation
New quota system to benefit large producers
Small players ousted from the market by sugar price floor
Tax and interest privileges in effect until 2010
Agricultural land expected to become tradable in 2009
Prohibitive import tariffs to stay
2.5 Playing by WTO Rules
Accession terms favorable for Ukraine
Sugar producers to partially switch to raw cane sugar feedstock
Inefficient beet producers will decrease beet supplies
2.6 Price & Volume Outlook
3. Company Overview
3.1 Strategy
Further vertical integration
Improving efficiency of sugar beet production
Energy saving measures
Product mix expansion
IPO plans
3.2 Profile
Business Development
Market share to double by 2010
Capacities ensure room for production growth
Raw cane sugar as an alternative feedstock
Land acquisition continues
Gas-saving technologies to be introduced starting from 2007
Customers to become more diversified
Bioethanol production to diversify business portfolio
3.3 Legal Structure
4. Financial Analysis
Sales
Profitability
Financial Debt
5. Risks
Major Risks Faced by Dakor
6. Valuation
Valuation Summary
Model Assumptions
7. Financial statements*