IMCOMPANY (IMC): Update of strategic goals for 2016-2020 - raport 3

UNI - EN REPORT No3/2016

The Board of Directors of Industrial Milk Company S.A. (hereinafter "the Company") informs about updating of main strategic goals for 2016 – 2020.

The Company maintains the land bank expansion strategy for 2016-2020. According to this strategy the Company intends to increase land bank from 136.7 ths ha in 2016 year to 206.7 ths ha in 2020. The plans of the Company include growth of land bank to 156.7 ths ha in 2017 and 176.7 ths ha in 2019.

The Company has sufficient grain storage capacities in line with the above mentioned land bank expansion strategy till 2020. The Company doesn’t plan to increase grain storage capacities, but plans to reconstruct some of the Company’s silos with the aim to improve their efficiency and replacement of existing flat storage capacities with modern storage bins.

Simultaneously the Company intends to keep focus on growing of limited number of highly profitable export-oriented crops which are optimal for effective crop rotation and suitable for land and climate specifics (corn, wheat, soybean, sunflower). The Company plans to maintain corn as the main crop with the share in crop mix about 50%.