KSG Agro S.A.

Capital/Financing Update • May 26, 2022

The Board of KSG Agro S.A. headquartered in Luxembourg("the Company") hereby informs that on May 23, 2022 the rating committeeof RA "Expert-Rating" made a decision to update a long-term creditrating of KSG Agro S.A. at the level ua_#1040;+ according to the nationalscale (the rating according to the Agency's international scale is atthe level _#1042;_#1042;_#1042;). The borrower or the particular debt instrument with suchrating is characterized by a high creditworthiness compared to otherUkrainian borrowers or debt instruments. The Agency updated the creditrating after the analysis of data of the consolidated statements of KSGAgro S.A for the 2021 year.According to theresults of the analysis, the following main conclusions have been drawn:1.Throughout the 2021 year the shareholders' equity of KSG Agro S.A. grewin 4,34 times and as at the beginning of the 2022 year amounted to USD23,33 mln. The key factor of the increase of this indicator was theCompany's profitable activity and the reduction of retained loss in thestructure of its shareholders' equity. The liabilities of KSG Agro S.A.for the 2021 year decreased by 16,44% down to USD 48,11 mln. Thedecrease in liabilities of KSG Agro S.A. was mainly due to selling threesubsidiary companies in May, 2021 and two subsidiary companies inSeptember, 2021. The corresponding movement of indicators resulted in anincrease in the ratio between shareholders' equity and liabilities ofKSG Agro S.A. by 39,15 p.p. up to 48,50% in the analyzed period.

2. In the structure of long-term liabilities of KSG AgroS.A. as of 31.12.2021, the predominant share was occupied by long-termloans. Short-term loans, obtained by KSG Agro S.A., decreased by 8,03%and amounted to USD 2,65 mln.3. Sales of theCompany's products in the analyzed period continued to increase. Thus,sales revenue for the 2021 year amounted to USD 30,75 mln, which by44,09% exceeded the indicator for the 2020 year. In its turn, net profitof KSG Agro S.A. according to the results of the 2021 year compared tothe 2020 year grew by USD 19 mln (almost 16 times) up to USD 20,27 mln.A considerable increase in the financial results of KSG Agro S.A.positively affected the Company's profitability indicators, whichreached very high values according to the results of 2021 year.4.Analysis of the consolidated financial statements of KSG Agro S.A.showed that EBITDA according to the results of the 2021 year compared tothe 2020 year grew more than in twice up to USD 12,28 mln., and theratio between EBITDA for the 2021 year and the volume of loans as of31.12.2021 grew up to 45,55%. The respective level of this indicatorshows a high level of the Company's solvency.Theagency notes that the financial statements of KSG Agro S.A. for the 2021year was compiled using judgments and estimates at the time before theRussian invasion of Ukraine, and did not take into account subsequentmilitary events. On the other hand, since the beginning of the Russianinvasion no hostilities have taken place in the immediate vicinity ofthe assets of the Company, so on the date of preparation and signing offinancial statements for the 2021 year, the management of KSG Agro S.A.did not expect a significant negative impact of the Russian invasion onthe economic activities on the Company.