Важные причины инвестировать в Украину именно сегодня от Horizon Capital Инвестиционный фонд Horizon Capital сделал презентацию, которая показывает возможности Украины и призывает инвестировать в Украину прямо сейчас. В Horizon Capital объясняют, какие перспективы есть у Украины, откуда они берутся, что нужно сделать в стране и какое будущее ее ожидает. В презентации кратко описаны также возможности и риски для инвестора, который отважится вложить деньги в Украину. В Horizon это называют "ground-floor investment opportunity". Кризис – это не только проблемы, но и новые возможности! Спасибо Horizon Capital за материалы. Важливі причини інвестувати в Україну саме сьогодні від Horizon Capital Інвестиційний фонд Horizon Capital зробив презентацію, яка показує можливості України та закликає інвестувати в Україну прямо зараз. У Horizon Capital пояснюють, які перспективи має Україна, звідки вони беруться, що потрібно зробити в країні та яке майбутнє її чекає. У презентації коротко описані також можливості та ризики для інвестора, який наважиться вкласти гроші в Україну. В Horizon це називають "ground-floor investment opportunity". Криза - це не тільки проблеми, але й нові можливості! Дякуємо за матеріали Horizon Capital. Ukraine 2015: A ground-floor opportunity at the EU’s frontier – Horizon Capital Horizon Capital has developed and shared a comprehensive, data-rich report entitled “Ukraine 2015: A ground-floor opportunity at the EU’s frontier”. The youngest, most pro-business government in the history of modern Ukraine is driving a bold structural reform agenda that is both the right thing to do for the country as well as the clear demand of an active, engaged civil society. From a business perspective, the lasting competitive advantages in export-focused sectors, such as IT, Agriculture, Food and others, open up exciting investment opportunities, made even more compelling by very attractive valuations. Thais is a brief version of the Horizon Capital presentation. http://horizoncapital.com.ua/sites/default/files/horizon_capital_press_release_july_24_2015_english.pdf

1. Ukraine 2015:
Brains, Hands and Grains
A ground-floor investment opportunity at the EU’s frontier
July 2015

2. Why would respected, seasoned investors like Rubinstein,
Soros or Branson be bullish about investing in Ukraine
when the “bears” are much louder and more numerous?
“…Next door to Russia there is a complicated place, but also more attractive – it
has a much better Finance Minister than anyone you can find in that part of the
world…
Ukraine is an extremely attractive place to invest and I would look at that place
as a place if you want to take some risk and you are investing in dollars, but
there aren’t that many people investing in Ukraine, so you’re probably going to
buy some things that are going to be relatively inexpensive”
- David Rubinstein, Carlyle Group
"I stand ready. There are concrete investment ideas, for example in agriculture
and infrastructure projects. I would put in $1 billion”
- George Soros, Soros Fund Management
"Personally, I think that Ukraine is a good place to invest. I'm hopeful that Virgin
would start doing business in Ukraine”
- Richard Branson, Virgin Group
Source: Reuters, Hromadske 2015
Invest in Ukraine?

3. The lost decades
1. A ground-floor opportunity now
2. Brains: #1 IT engineering force in CEE
3. Hands: lowest-cost manufacturing platform in Europe
4. Grains: the food basket of the world
5. Entry ticket: a 70% discount to … Greek valuations
The “bear” perspective on Ukraine is clear. The challenges faced
by the country are known and well-documented by analysts and
media throughout the world.
What is missing though, is a contrarian perspective, which, while
recognizing the challenges and risks, also gives a voice to the
compelling reasons to consider Ukraine today as an investment
destination.
To that end, this presentation makes a bullish case for Ukraine.
Each crisis opens up opportunities, and the latter is what we
have chosen to focus our attention upon.
For above all, what we see in 2015 in Ukraine is a historical,
ground-floor investment opportunity.

4. As USSR collapsed Ukraine
had a reasonably good starting point…
GDP per capita (PPP) in 1990, thousand USD
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
UkraineSlovakiaLatviaEstonia
GDP per capital growth (PPP), indexed scale, 1995=100
Poland
Source: World Bank

5. -0.2
A critical mass of active, tech-savvy civil
society=relentless scrutiny
Percent of population using internet, %
“Throughout this turbulent period, Ukrainian civil
society stepped up to the plate, playing a key role
in forming the new government’s policy priorities
and providing critical services to the public”
– USAID, 2015
“2014 saw the rise of self-
organized public and a strong
volunteer movement”
Civil Society Organization Index in 2014, 1-7 scale,
lower=stronger civil society
+0.1
Improvement vs. 2008
+0.4 0 +0.1
Source: Euromonitor, Internetlivestats, BBC, USAID
A ground-floor opportunity
Why this time is different and what makes
us optimistic about Ukrainian economy now.
A critical perspective: ground-floor starting point…

6. A critical mass of reformers and start
of structural reforms

7. Macro: stabilization package with IMF tempered
C/A deficit, UAH rate
Current account balance, USD billion
-2.3
-3.2
-6.0
-5.0
-1.5
-0.9
-1.3 -1.5
-0.5
0.8 0.7
-1.0
Hryvnia exchange rate, UAH per USD
11,8
13,0
16,2
26,5
21,1
Source: Dragon Capital, minfin.com.ua
Ukraine’s ranking in Ease of Doing Business, inversed scale
An ambitious deregulation program has been launched, with
over 70 initiatives, from scrapping a quarantine certificate for
grain transportation, to liberalizing the land market, to
simplifying the immigration rules for expats. Licensing for 26
business activities has been abolished and 16 regulations
scrapped.
The Ministry of Economy estimates the program to gene-rate
between $2.4 - $3.3 billion in savings for the business
community and dramatically improve Ukraine’s standing in the
World Bank’s Ease of Doing Business Rating.
Source: World Bank, Ministry of Economic Development and Trade of Ukrain

8. A critical mass of reformers and start
of structural reforms

9. Export champions – the growth engine
and safest bet on UA economy
The №1 IT engineering
force in CEE
1. Brains 2. HandsLowest-cost manufacturing
platform in Europe
3. GrainsLargest black-soil bank
in the world
Sustainable competitive advantages in IT, Manufacturing,
Agriculture to drive an exports-fueled rebound
Brains, Hands and Grains: three lasting, competitive advantages
Lviv 400km from Warsaw,
900km from Berlin
Manufacturing wages
$1.2/hour, 2x lower than
China
60% devaluation boosting
cost competitiveness
20x growth in IT exports
in 10 years
0% duty on most EU
exports
Share of EU exports from
20% to 35% in 5 years
Per capita exports of $1,540
still 3x lower than Poland
6.5% exports CAGR
between 2009-2014
Exports only 49% of GDP
vs 61% for CEE peers
Sources: Ukrstat, NBU, EU DCFTA text, World Bank, the Economist, China Statistical Yearbook, www.worldatlas.com

10. 1
9 Hungary
13 Ukraine
15 Belgium
26 United States
32 Poland
38 Italy
48 Romania
56 India
115 Philippines
1 US
8 UK
14 Germany
30 Hungary
32 Poland
41 Ukraine
42 Romania
48 Indonesia
49 Turkey
50 India
1 China
2 US
6 Ukraine
11 Romania
13 Netherlands
16 Germany
32 Czech
Republic
39 India
45 France
59 Belgium
1.Brains:
№1 CEE IT engineering force
Results at the
International
Math Olympiad,
global rank
United Kingdom
Good Country Index:
Science and
Technology parameters
reported to GDP, rank
Universitas 21,
university
research quality,
rank
Share of math, science and computing graduates, %
Source: goodcountry.org, Universitas 21
Source: International Mathematical Olympiad, Eurostat, Ukrstat 2014
Top math and science education, starting with primary school

11. …and feeds abundant technical
talent into the market
18%
27%
12%
12%
64% 44%
17%
6%
0%
20%
40%
60%
80%
100%
Business services
Other
100% IT outsourcing
Transportation
Breakdown of Ukrainian service exports, 2007-2014
Already the
№1
exports
category to
United States
Ukraine’s ranking in Ease of Doing Business, inversed scale
Source: Ukrainian Hi-Tech Initiative, Symphony-solutions, Gartner, Ukrstat
Engineering
Graduates
per annum in
European countries,
thousand students
Average
programmer
salary,
comparable
skills, thousand
USD per annum
Source: World Economic Forum, Forbes, 2014, IVC, www.business-standard.com

12. Samsung alone has over 1,000 engineers working on things like computer vision,
information security, artificial intelligence, natural language processing (NLP), human
computer interaction (HCI), computational intelligence and more
Over 100 global companies located
software R&D in Ukraine
125 India
123 Pakistan
117 Ukraine
112 Philippines
105 Romania
97 Hungary
96 Poland
58 China
21 United States
1 Switzerland
Cost of living, including rent,
global ranking (lower = cheaper)
Prices of selected items
in Kyiv, USD
250 One bedroom rent, month
14 Intercity train Kyiv-Lviv (500km)
12 Two courses in fancy restaurant
10 Dry-clean suit
5 Theater ticket
4 Haircut
3 Taxi trip
2 A bowl of borscht
1 Tomatoes, 1kg
0.5 Milk, 1L
Ukraine has among the lowest living expenses in the world
Source: numbeo.com

13. The beer and burgers are the
cheapest in the world too :)
6,3
5,2
2,6
1,8 1,7
7,5
4,8
3,7 1,9
21,1
Average price of a 330ml beer, USD
Price of a Big Mac, USD
6,2 4,5
4,3
1,2
Source: Wall Street Journal, The Economist Big Mac Index – February 2015
• 70% urban population, concentrated mainly in and around large cities
• 2.6 million student population with 640,000 graduates each year
Select Ukrainian cities by population, thousand people
Source: Ukrstat

14. Tech talent + cheap living + global outlook =
thriving tech ecosystem
IT outsourcing is one of the perennial growth
hope stories for Ukraine, drawing its inspiration
from the Soviet tradition of science teaching, and
the country’s plethora of scientific institutes that
used to churn out rocket scientists. Under market
conditions, the schools have switched to have
The huge IT outsourcing sector feeds increasing number of risk-taking tech talent, with a
cosmopolitan outlook, willing to strike on their own and launch globally-focused tech
startups. The low costs of living and progressive big-city culture, further add to a thriving
tech ecosystem
switched to producing programmers – an estimated
16,000 new IT specialists graduate each year
28
%
Drop in 2014
driven by large
Hrivnya
devaluation.
Growth in
national currency
continued to be
very strong
E-commerce sales in
Ukraine 2007-2014,
USD million
E-commerce posted 5.5x growth for the last 7 years…
Source: Euromonitor,
Horizon Capital

15. …and with plenty of upside ahead
to catch up with peers
…and with plenty of upside ahead to catch up with peers
20%
40%
60%
80%
100%
0% 20% 40% 60% 80% 100%
Germany
UK
Ukraine
France
Netherlands
Sweden
Italy
Poland
Spain
% of internet users shopping online
%ofinternetusersintotalpopulation
Only ~20% of Ukrainian
internet users shop
online (share doubled
over 2 years)
Percent of online
shoppers = 3x lower vs
Poland, Italy; 4x vs UK,
Germany
Share of ecommerce in
total retail is just above
2%, 3-6x lower vs
Western Europe
• Good education, a strong math and science legacy
• Feeding abundant tech talent to the market – largest IT
engineering force in CEE
• Which led to a thriving IT outsourcing business, up 20x during
last decade
• Tech talent increasingly turning to startups, beyond outsourcing
= increasing numbers of global software champions from Ukraine
Source: internetlivestats.com, Euromonitor

16. 2. Hands:
lowest-cost manufacturing platform in Europe
Hourly wages
in manufa-
cturing industry
in
select
countries, USD
Electricity
prices for
industrial
enterprise,
USD cent/
kWh
Workers per unit of gross
fixed capital stock in
manufacturing
Plenty of industries
remain very dependent
on labor cost
Source: icrier.org for Emerging Markets, India example

17. Source: www.worldatlas.com, www.travelmath.com
Flight hours to select
cities from Kyiv
LvivWarsaw
390
Budapest
570
Berlin
930
Milan
1,560
London
1,990
KyivIstanbul
2
Berlin
2
London
3
NYC
10
Beijing
9
Dubai
5
In a world of tighter supply chains, faster product innovation cycles, Ukraine has a real chance to
emerge as a manufacturing and trading hub at the frontier of EU, Middle East and Asia. A case in
point, Western Ukraine emerged as home to a vibrant automotive spare-parts manufacturing cluster
“The production of
Ukrainian workers can
compete with the
European level in terms
of quality. There's a
new, highly-educated
generation of creative
people who want to see
their country strong. I'm
an optimist”
- Dietmar Kung,
Hugo Boss
Proven by top global brands who localized production in Ukraine
Kilometers distance
to select cities from Lviv
Ideally positioned to be a manufacturing
and trading platform

18. Exports to EU rising strongly, marking
fundamental shift in trade
Source: Ukrstat
38
35
38
34 34
27
27
2630
32
48
38
35
40
15
20
25
30
35
40
45
50
18
2008 2009 2010 2011 2012 2013 2014
1Q
20152007
Other countriesEuropeRussia & CIS
Exports split by destination, %
Moving away from over-reliance on Russian market as exports to Europe grow.
Signing of the DCFTA with the EU is expected to further accelerate the trend
• Demand for labor remains high, as many industries are still very
labor intensive
• Ukraine enjoys a very attractive location, at the intersection of the
EU, Middle East, Asia
• Signing of historical EU DCFTA to further boost attractiveness
• The manufacturing labor costs are very competitive, even
compared to China
• Cost, advantageous FTAs and proximity to large markets position
Ukraine as ideal manufacturing and trading platform

19. OilseedsWheat Coarse grains
Global demand, 1995-2024F,
million tons
Source: OECD1 2 3
Source: OECD
Ukraine: already an agro-powerhouse,
share of global market rising
OilseedsWheat Coarse grains1 2 3
Ukraine’s share of
globalexports by
commodity, %
3. Grains:
the food basket for the world

20. Ukraine: already an agro-powerhouse,
share of global market rising
№3 in corn
№8 in poultry
№1 in sunflower oil
№4 in barley №6 in wheat №7 in soybean
№2 in grains
World’s leading positions in a number of markets
Thriving agricultural exports to EU, Asia, CIS and Middle East
EU: $5.0 bn.
CIS: $2.6 bn.
Africa: $5.0 bn. Asia: $6.6 bn.
Source: Ministry of Agricultural Policy and Food

21. Source: HCA
Farming
Grain
trading
Value-added
agri
Agri
infrastructure
Valueadd
Grains ->
Poultry and Eggs ->
Farm Equipment example
Cost advantage in grains enabled growth of eggs and poultry
producers, which rely on grains for a large portion of costs.
Companies like MHP, Ovostar, Avangard have achieved global
leading positions in these market segments. Further up the
value chain, a thriving poultry and eggs industry, enabled growth
of farm-equipment manufacturers e.g. Texna, which
subsequently turned into global export champions, leveraging
their Ukraine base.
Industry moves up the value chain,
further increasing margins

22. • The Revolution of Dignity led to a paradigm shift in Ukrainian
society, politics and inevitably – the economy
• Young, technocratic government leading a bold, structural
reforms agenda
• Uncompromising, active, tech-savvy civil society warrants the
change is lasting = point of no return
• Sustainable competitive advantages in IT, Manufacturing,
Agriculture open up attractive investment opportunities
• Valuations are at historical lows = an ideal time to seize on the
potential upside
• Global demand for food keeps rising
• Ukraine is home to 1/3 of the most fertile soils on earth
• Soils, location and scale warrant a lasting cost advantage for
Ukrainian producers
• The room for upside is still large, as further technologization will
keep pushing the yields up
• As the industry matures, it moves up the value chain, boosts
profits, creating a thriving agricultural cluster