IDG AGRI an Unparalleled Timber and Agri- Business Opportunity in West Africa

IDG AGRI an unparalleled timber and Agri- business opportunity in west africa

Investor Presentation March 2014 IDG AGRI Pan-African Food & Fuel

Investment opportunity IDG overview Project description „The time has come for African agriculture. Southeast Asia has become crowded, competitive, and expensive for doing agribusiness, chipping away at profit margins. We see higher profit potential in Africa for exports – and for domestic sales.“

New foreign investor in Africa World Bank Report on Agribusiness Africa 2013

2 IDG AGRI Pan-African Food & Fuel The unique investment opportunity • IDG is building a formidable food & fuel leader out of Africa, creating one of the largest palm oil and sugarcane farms across West-Africa. • IDG established outstanding relationships with Presidents, key Ministries, local chiefs and landowners as prerequisite for a sustainable business operation. • IDG acquired more than 300.000 hectares of highly suitable lands in several west-african countries, with initial focus on Sierra Leone and Nigeria. • In Sierra Leone, IDG signed longterm lease concessions for min. 124.000 ha of superior land for palmoil/sugarcane farming and biofuel refinery. • Initial assessment by expert team also evidences rich existence of virgin forrests of Mahagony, African Redwood, African Teak (Iroko), Sapele and some Walnut and Teak. • Lands provide excellent infrastructure access through established main roads and are in proximity to large deep water ports. • Overwhelming local community support for the project. • Wood logging and export permits in Sierra Leone are secured.

• The unparalleled are size, the perfect climatic conditions, the high quality of the african soil and hardwood types, the strong access infrastructure, the easy export through near-by ports, the full legitimacy of the operations and the positive local community support confirm the unique business opportunity. • Strategic investors are offered the sales of 100% of IDG‘s timber extraction rights and/or a 50% stake in IDG‘s agri-business operations. 3 Our core business: Creating a leading IDG AGRI Pan-African Food & Fuel food & fuel player out of Africa

• Become a major global producer of sustainable palm oil and sugarcane 100N • Secure west-african territories as one of the world‘s last frontier for suitable farms (within +-70 of Equator) • Leverage the climatic advantages and large landbanks to diversify into Equator vegetable oils, sugar and bio-fuel • Unique country and product diversification as competitive advantage

0 • Use the geographical benefits to cost- 10 S efficiently serve the domestic and western markets • Advanced agricultural concepts to ensure superior eco-sustainability

4 IDG AGRI Pan-African Food & Fuel Our value business model

IDG AGRI

Establish Africa‘s best-run and greenest Support West-Africa in transforming into an agri food&fuel player agri powerhouse again

Produce Process Refine Oil Palm Green Food

Sugarcane Green Fuel

Transport & Store

• Diversify crops • Integrated, large-scale, low-cost value chain • Diversify products • Diversify regions • Best-in-class management partners • Diversify markets • Expand volumes • Realize scale and synergies • Expand volumes

Superior Sustainability

3600 Sustainable Farming 3600 Bio-Energy 3600 Engagement Innovation to stay ahead • Responsible land expansion • Biomass utilisation • Community Empowerment Fund • R&D Center • Meet/exceed RSPO principles • Waste Management • Smallholder Empowerment • Strategic Research partnerships • Low-Input Sustainable • Carbon credits • Bottom-to-Top communication • Technology partnerships 5 Agriculture IDG AGRI Pan-African Food & Fuel The challenge

• Exploding global demand for vegetable oils, sugar and biofuel creates massive supply gap and pushes prices up. • Consumption of palm oil and sugar expected to double over the next 10 years due to population growth and growing middle classes. This also drives massive need for wood for house construction. • Steep growth in Biofuel consumption as more countries introduce blending fuel legislation. Political instabilities in Crude Oil exporting countries drive search for alternatives. • Shortage of land in traditional palm oil and sugarcane markets, such as Malaysia, Indonesia and Brazil, drvien by protectionist policies, stop of illegal cultivation policies, environmental desasters and limited suitable land. • Weather phenomenon having an impact on supply as evidenced by the recent droughts in Brazil and California. • Banning of illegal farming and logging practises around the world.

6 The macro-economic commodity IDG AGRI Pan-African Food & Fuel drivers are well-known...

Per Capita Consumption

7 ...with cheap food and biofuel seen as IDG AGRI Pan-African Food & Fuel „Bygone Era“ by FAO and OECD

Higher consumption of crop foods...... leading to broad price increases to 2022

...and annual growth in output to slow...

8 Palm oil consumption projected to IDG AGRI Pan-African Food & Fuel double in next 10 years...

9 ...driven by its superior product IDG AGRI Pan-African Food & Fuel attributes and new markets

Most resource-efficient Exploding emerging Unique product Demand for biodiesel: oil crop markets demand: characteristics: • Continuously increasing • S u p e r i o r a r e a • Rising population • Trans-fat free use as low-cost productivity (1 ha palm especially in Africa and • No genetic modification feedstock for bio-diesel has productive output Asia possible with around 15-20% of of 15 ha of soya) • Strongly growing • Highest „flash point“ of total produce • L o w e s t - c o s t o i l : middle classes all edible oils • Further growth driven requires the least input • Strong urbanisation • Increasing use in food by more and more amount like fertilizers, changes eating habits (margarine, instant country mandates for fuel and pesticides • General catch-up on fat noodles, chocolate, bio-diesel and • G e n e r a t e s m o r e c o n s u m p t i o n f r o m processed foods) increasing energy prices employment per unit +-20kg to western • Consumer goods • Production expected to area than most other levels of +-55kg i n c l u d e s o a p s , grow by +4.5% p.a., large scale farming, detergents, cosmetics, doubling output to 41bn such as soybeans pharmaceuticals litres by 2022

Biodiesel production forecast (bn liters) 50

World Palm Oil Consumption By Type (mn t) 40 +90% RoW 30

20 RoW

10 EU/NA EU/NA

0 2012 2022

Source: OECD Agri Report 2013 10 World sugar production is growing IDG AGRI Pan-African Food & Fuel rapidly, driven by sugarcane output...

• World sugar production is now more than 170 mio tonnes p.a. • The growth comes primarily from sugarcane with Brazil & India being the leading producers • Key consumption drivers are increasing population & income and significant rise of ethanol production from sugarcane. • Brasil as largest sugarcane producer uses more than 50% of output for ethanol production.

Sugar production by country - 2011

11 ...as sugarcane is a key feedstock in the IDG AGRI Pan-African Food & Fuel booming biofuel/ethanol market...

Biofuel world production by type (bn litres/year) Biofuels are at historical highs: Biofuel World Production (mn barrels/day) • Steep growth in biofuel consumption to appr 100bn l p.a. • Driven by high crude oil prices, mandates (in E.U. and U.S.) and flexi- fuel vehicles in Brazil • Additional biofuel incentives across the globe will accelerate growth further

Biofuel world production by region (mn barrels/day) Ethanol with 75% biofuel share: • US and Brazil with 90% global market share • Sugarcane and maize as key feedstock for Ethanol; account for 50% of Brazil‘s sugarcane, 40% of U.S. maize • Biodiesel is growing, initially driven by E.U. mandates; accounts for 15% of global vegetable oil usage and 65% in E.U

12 Source: 2012 BP Statistical Review of World Energy

Sugarcane will further grow the sugar IDG AGRI Pan-African Food & Fuel market as feedstock for food and biofuel

World sugar production (mio t) World sugarcane production (mio t) World biofuel production (bn l)

Developing RoW Food Biofuel Biodiesel Ethanol 250 2500 250

200 2000 200 +22% +17% +68% 150 1500 150

100 1000 100

50 500 50

0 0 0 2012 2022 2012 2022 2012 2022 Source: FAO/OECD Agri Report 2013

The sugar market grows ...driven by more sugarcane ...which jumps ethanol output steadily... for biofuel production... over the next years • Global sugar production to • Sugarcane production increases • World output of ethanol is increase by +2.1% p.a. up to >210 by +300mio tonnes to >2 bn forecast to jump 68% to 167 bn mio tonnes p.a. by 2022 tonnes p.a. liters, growing +4% p.a. • Developing countries extend their • Biofuel production is predicted to • This is mainly driven by the sugar consumption through a) use 29% of world sugarcane biofuels mandates in US and EU overproportional population output and Brazil‘s growing domestic growth, b) rising incomes and demand for flex-fuel vehicles changing diets, c) increased and US exports to fill its industrial usage of sugar avanced biofuel mandate

13 Palm oil has the highest geographic entry IDG AGRI Pan-African Food & Fuel barriers amongst soft tropical commodities

• Grows only in very narrow tropical band +-7° around equator and requires an evenly dispersed rainfall. • There are only 3 zones where palm oil cultivation is possible

Latin America West Africa Southeast Asia • +-900.000 planted hectares • +-1.100.000 planted hectares • +-12.000.000 planted hectares • <50.000 ha planted annually • +-25.000 ha planted annually • Very limited expansion space due to • No publicly listed companies • 5 listed companies with >US$1 bn geographical and environmental • Most of Brazil off-limited due to market cap restrictions environmental restrictions • >70 listed companies with >US$100 bn market cap • Controls >65% of global edible oil exports

14 West-Africa as the ideal agribusiness IDG AGRI Pan-African Food & Fuel platform in general....

1200 Projected value of food markets, Land availability for large and sustainable Sub-Saharan Africa (US$ bn) 1000 expansion: 800 • 60% of the world‘s areable land reserves lay in Africa +300% Urban (McKinsey) 600 • Cost of land lower vs rest of world v Rural • Large already cultivated available for sustainable 400

reactivation. 34% of world‘s palm oil areas are in Africa. 200

Favourable agro-climatic conditions: 0 2010 2030 • 0 In critical tropical belt +-7 around equator Source: World Bank Report on Agribusiness Africa 2013 • Oil palm indigenious to West Africa, grows naturally.

Large and growing local markets: • Strongest population growth worldwide • Strongly growing middle class (+60% in past decade) drives demand • Total food markets set to quadruple over the next 2 decades to 1.000 billion $, driven by urbanisation

Strong government support: • Identified agribusiness as key to country development • International agencies eager to support rural development, project financing, smallholder training, etc • Massive infrastructure build-up with roads, bridges, ports

...with unique advantages for Sierra IDG AGRI Pan-African Food & Fuel Leone...

Unrivaled land mass • Continuous landmass of more than 124tsd hectares signed • Mostly flat, easily accessible land

Great hardwoods and favourable climate

Supportive communities • Fully legitimate lease agreements with all local chiefdoms • All locals very supportive on timber operations • High willingness to provide motivated and cheap labor pool

Strong infrastructure • Good proximity to tarred national road system • Short distancy from deep-sea ports in Freetown and Lagos • Chinese companies building new road systems and 3rd largest african airport in Sierra Leone

Stable, investor-friendly government • Full support by President and core Ministries • All business and export permits signed • Stable, investor-friendly government

16 ...with a big and growing presence of IDG AGRI Pan-African Food & Fuel chinese and other key players

Agri-Business: • Sierra Leone China Agriculture Development Limited (SLECHAD) • Lease 150.000 hectares of land for Rubber and Rice. • Hainan Rubber Industrial Group with a stake in SLECHAD . • Addax, Bio Palm, Soccfin • Major players entering Edo/Nigeria as Olam, Dangote Group

Infrastructure: • China Railway Seventh Group doing all major road construction in Sierra Leone • China Railway International Company Limited doing the new International Airport

Resources: • American Mining • De Beers • Chevron

• ....

17 Foreign investments into Sierra Leone IDG AGRI Pan-African Food & Fuel are taking off...

18 ...with IDG being perfectly IDG AGRI Pan-African Food & Fuel positioned

Generated by CamScanner from intsig.com IDG AGRI Pan-African Food & Fuel

Investment opportunity IDG overview

Project description „Most African countries have a comparative advantage in agriculture. Africa has more than half of the world‘s agriculturally suitable yet unused land, and its impressive water resources have scarcely been tapped.... Private sector interest in African agribusiness is unprecedented.“

World Bank Report on Agribusiness Africa 2013

20 IDG AGRI Pan-African Food & Fuel Industrial Development Group

• One of the leading pan-african project investment boutiques • A pioneer in the development of black economic empowerment across Africa • Strategic advisor to various african Governments and Presidents • Founded in 2002 in South Africa • A group of companies with focus on petroleum, mining, technology, energy and agribusiness • A significant project footprint in Congo, Congo Brazzaville, Sierra Leone, Nigeria, South Africa, Lesotho, Botswana, Rwanda, Mozambique • Main offices in Johannesburg and New York

21 IDG AGRI Pan-African Food & Fuel A group of specialist companies

Assists in Black Economic Empowerment in South Africa, Empowerment and assists in market access across Africa

Undertakes financial advisory and general investment Financial Services banking services on behalf of companies and governments across the continent

Responsible for all mining, technology and energy related Resources projects in Africa. Manages partnerships with global petroleum companies

Develops and manages multi-use real estate, and leverages Real Estate its relationships with governbments throughout Africa to unlock new value in real estate

Responsible for all agri-business related projects. Manages Agri lease agreements with Communities and manages global agriculture partners

22 IDG AGRI Pan-African Food & Fuel A rich and successful history

2002/2003 • Founded by Mxolisi Mbetse, former HSBC and UBS chairman and South African Government and President advisor • First engagement to secure oil block in Equatorial Guinea 2004/2005 • Awarded 30% share of petroleum Block Q in Equatorial Guinea • Granted mandate to bid for oil and diamond concessions in Central African Republic • Awarded part-share of iron ore concession in Gabon • Secures iron ore concession in the Republic of Congo • IDG Financial Services advises South African Airways on the first R1.3bn recapitalization 2006/2007 • IDG Empowerment purchases 26% of Myriad Medical • IDG Resources acquires Uranium/Coal Licenses in South Africa and Uranium/Gold in Botswana • Awarded copper prospecting licence in Zambia • IDG Real Estate is awarded tender to develop up to 3bn Rand property in Ekurhuleni Metro 2008/2009 • IDG Real Estate, as part of consortium, establishes Xihangu Realty Developers Ltd for property development fund for the municipality in excess of 20bn Rand • IDG Real Estate, as part of a consortium, selected as preferred bidder and property manager for Kgoro Retail complex at Johannesburg Sandton center with 7bn Rand construction value • IDG Resources commence validation drilling programme on its Coal and Uranium properties in South Africa • …

23 IDG AGRI Pan-African Food & Fuel A rich and successful history – ctd.

2008/2009 ctd. • Awarded diamond prospecting license for the Lemphane Kimberlite Pipe situated in Lesotho • Appointed by DRC Government as financial advisors to state owned diamond mining company • Awarded a methane gas concession on Lake Kivu, Rwanda to develop a Gas-to-Liquids plant • Appointed as DRC government advisor on government’s 49% stake sale in Congo Chine Telecom • IDG Financial Services advises/co-arranges 2nd recapitalisation of 1.56bn Rand for South African Airways 2010/2011 • Appointed as DRC government advisor on disposal of mothballed niobium mine • Appointed advisor on the South Africa government’s disposal of cocoa and palm oil farms • IDG Resources finalizes technical concept for 1200MW hydro-electric dam in DRC together with french energy company EDF • IDG Financial Services is co-advisor with JP Morgan on 70bn Rand unbundling of Telkom Limited • Becomes sole advisor to Telkom Media on acquisition of 49% stake in One Africa Television – Namibia 2012/2013 • IDG Resources completes drilling programme on its Coal and Uranium property in South Africa • IDG Real Estates completes technical design phase for Sandton Retail/Shopping complex • Signs wide-ranging national cooperation agreement with Minister of Agriculture in Nigeria for large- scale agri-business • Signs MoU with Nigerian State Government for large-scale palmoil- and sugarcane plantations incl biofuel generation • Signs landlease agreements with various chiefdoms in Sierra Leone for agri-business development • Starts technical feasibility for hydra dam concept in DRC • Awarded right for co-concession in oil blocks in Sierra Leone 24 IDG AGRI Pan-African Food & Fuel IDG chairman Mxolisi Mbetse

• Founder and Executive Group Chairman of Industrial Development Group Holdings • Former longstanding Chairman of UBS Corporate Finance and Country Director of HSBC in South Africa • Over 15 years experience as an investment banker • Member of the elite team around President Mandela to fight and abolish Apartheid and draft new after-apartheid policy structures • Headed the team advising Presidents Mandela and Mbeki on the sale of state assets from 1996 to 1999 and advised on the equity sale in Telkom, the incorporation of the Airports Company of SA, the sale of Sun Air and the equity sale of SA Airways. • Cofounder and founder President of the Association of Black Securities & Investment Professionals • Architect of the National Empowerment Fund • Senior advisor to Presidents and Ministers in Africa and South-East Asia

25 IDG AGRI Pan-African Food & Fuel IDG in the media

IDG to build hydro dam for Congo (TV interview)

IDG as strategic partner for hydro dam consortium

26 IDG AGRI Pan-African Food & Fuel IDG in the media

Mbetse with President Clinton during Global Dialog Forum

Mbetse as key-speaker for Rockefeller Foundation Agri-Summit

Mbetse with Nigeria Edo State Governor for Ethanol plant set-up

27 IDG AGRI Pan-African Food & Fuel IDG team on timber operations

Industrial Development Group Holdings (IDG) is the main project sponsor and 100% of IDG AGRI. IDG is a pan- African group of companies, active in many countries and diverse businesses, which include oil and gas, mining, natural resources and energy related industries. IDG is led by Mxolisi Mbetse, former Chairman of UBS Corporate Finance in South Africa and Swazi Tshabalala, former Chief Treasurer of Transnet. IDG has also roped in experienced agriculturalists from In Terra Veritas, an agricultural firm who will be responsible for detailing the overall agricultural strategy and implementing the Bio-Farming approach. Mxolisi Mbetse is the Executive Group Chairman of IDG. He was also the Chairman of UBS Corporate Finance in SA, a position he held since 2003. He previously worked as a director of HSBC. He has 11 years experience as an investment banker. Mxolisi headed the team advising government on the sale of state assets from 1996 to 1999 and advised on the equity sale in Telkom, the incorporation of the Airports Company of SA, the sale of Sun Air and the equity sale of SA Airways. He is a cofounder and founder President of the Association of Black Securities & Investment Professionals and an architect of the National Empowerment Fund. Dr. Andreas Gregori is Partner and shareholder in IDG. He has over 20 years experience in the business sector with focus on Sales, Marketing, Controlling. He held executive positions in global blue-chip companies, primarily in Consumer Goods, Retail and Telecommunications. For last 5 years, he acted as Chief Commercial Officer for large- scale, multi-billion $ business units. He has worked in Europe and US and lives now in South Africa. Andreas holds a Diploma from the TH Darmstadt and a PhD in Engineering from the TU Berlin. Hennie Saaiman has been in the agricultural sector for over 30 years. During the 1990’s Hennie’s farm operation expanded to the cultivation of babe vegetables. One of his farms obtained a pre-packing contract from Woolworths and became their biggest vegetables supplier at the time. A division dedicated to organic produce supplied Woolworths and other international chain stores such as Marks & Spencer in Britain, Sainsbury, Tesco and Albert Hein in Holland. In 2000, Hennie started a high care facility where grown produce was processed for Woolworths and Mark & Spencer. Hennie holds a Bcom degree from the University of Northwest, a Diploma in Farm Management from UNISA, and a Diploma in Biological Farming from Nutri-Tech Solutions in Australia. Edward Meiring has over 20 years farming experience. Edward achievements include introducing Iceberg Lettuce into the South African market in 1996. He started supplying Woolworths with fresh produce in 1994. He became Woolworth’s sole lettuce supply in winter from 1998 to 2007. Edward holds a BSc (Agric) Plant Production degree from the University of Pretoria and has attended several courses on sustainable and biological farming. 28 IDG AGRI Pan-African Food & Fuel

Investment opportunity

IDG overview „...Africa has great potential for expanding its food and agricultural exports. Almost all Project description successful cases of African agricultural exports involve commodities...that tend to be grown in restricted areas with specialised agro-climatic characteristics, which limits global supplies. ...African countries with relatively good land and water resources...should be able to tap booming markets in rice, maize, soybeans, sugar, palm oil, biofuel...and emerge as major exporters of these commodities on world markets.“

World Bank Report on Agribusiness Africa 2013

29 IDG lands for superior agri-business IDG AGRI Pan-African Food & Fuel and timber exploitation in Sierra Leone

Large deep sea port Main road to Freetown (150-200km)

Wood exploitation area Moyambi District 130-150tsd hectares

30 IDG lands Moyambi District IDG AGRI Pan-African Food & Fuel (124-150tsd ha)

Main road to Freetown 150km

High-density wood area Mid/high- density wood area

31 IDG AGRI Pan-African Food & Fuel Kongbora Chiefdom – 23tsd ha

32 IDG AGRI Pan-African Food & Fuel Kowa Chiefdom – 12.6tsd ha

33 IDG AGRI Pan-African Food & Fuel Ribbi Chiefdom – 29tsd ha

34 IDG AGRI Pan-African Food & Fuel Bagruwa Chiefdom – 16tsd ha

35 IDG AGRI Pan-African Food & Fuel Fakunya Chiefdom – 24tsd ha

36 IDG AGRI Pan-African Food & Fuel Dasse Chiefdom – 19tsd ha

37 IDG AGRI Pan-African Food & Fuel Kori Chiefdom – 34.8tsd ha

38 IDG AGRI Pan-African Food & Fuel Freetown Deep Sea Port

• Deep-Water Quay • Length: 722m • Draught: 9,5m • Full Container Storage Facility: 4800 TEU • Continuous Loading/Unloading • Operated by Bollore Africa Logistics

39 25 February 2013

25 February 2013 Malaysian Listed Sector 25 February 2013 This is a relatively mature sector with a focus on integrated palm oil operations A relatively mature Malaysian Listed Sector and diversification – often into property development. It should be noted sector Thishowever is a relatively that more mature than sector a thirdwith a of focus names on integrated are looking palm for oil operationsexpansion A relatively mature Malaysian Listed Sector andopportunities.With diversification the – oftenexception into of property Sime Darby, developme the Malaysiannt. It should operators be noted have sector not yet sought significant expansion opportunities beyond Indonesia. howeverThis is a relatively that more mature than sector a thirdwith a of focus names on integrated are looking palm for oil operationsexpansion A relatively mature opportunities.With the exception of Sime Darby, the Malaysian operators have Notionaland diversification returns on –EV/ha often range into from property just under developme 1% innt. the It case should of Kwantas be noted to Best per hectaresector not yet sought significant expansion opportunities beyond Indonesia. 10.4%however for that IOI. Perhaps more than not surprisingly, a third of IOI names has th aree highest looking EV/hafor expansion valuation returns within the opportunities.With the exception of Sime Darby, the Malaysian operators have Notionalwithin the returns sector onat EV/ha$45,035, range but fromat $22,395, just under Kwant 1%as in has the an case upper of Kwantas mid-range to Best per hectaresector not yet sought significant expansion opportunities beyond Indonesia. 10.4%valuation. for The IOI. range Perhaps of notEV/ha surprisingly, extends up IOI to has IOI’s th $e45k highest from EV/haa low of valuation $8,624 returns within the (Sarawak Plantation). 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Upper end returns, in association with upper end of sector Ofdevelopment the Malaysia interests listed entries, and others only 5 haveanything a singu fromlar focus othe r on agro-industrial Malaysia. 10 Significant non efficiencies likely suggest asset values have room for expansion. membersoperations of to thehealthcare group haveand automobile diversified operations,distribution. oFourf which entries 5 have have property refinery agri-diversification capacity and are developing branded downstream businesses. And four names developmentOf the Malaysia interests listed entries, and others only 5 haveanything a singu fromlar focus othe r on agro-industrial Malaysia. 10 Significant non also have established R&D facilities and in some cases include the sale of operationsmembers ofto thehealthcare grouprd haveand automobile diversified operations,distribution. oFourf which entries 5 have have propertyrefinery agri-diversification planting material to 3 parties. capacitydevelopment and are interests developing and branded others downstream anything frombusinesses. other And agro-industrial four names also have established R&D facilities and in some cases include the sale of Good palm oil players areoperations valued to healthcareAdj MktCap and automobile /with Adj EV / distributio n.Oil Four entries IDG have refineryAGRI Planted Mature rd FFB Countries of Malaysia MktCap Land Bank planting material to 3 Plantedparties. Planted ExtractionPan-African EBIT Margin Food & Fuel capacityHectares andHectares are developing branded downstreamYield businesses. And four namesOperation also have established Hectare R&D facilitiesHectare and in some Rate ca ses include the sale of $ m ha ha ha Adj MktCap$/ha / Adj$/ha EV / MT/ha Oil% % >20tsd US$ per planted Plantedhectare Mature rd FFB Countries of MalaysiaAl-Hadharah MktCap Land Bank planting material to 3 Plantedparties. Planted Extraction EBIT Margin 364 19,945 Hectares19,945 Hectares- 18,242 20,962 Yield20.4 - - OperationMalaysia Boustead Hectare Hectare Rate BLD Plantation $228 m 51,639ha 24,360ha ha- Adj 9,349MktCap$/ha / Adj10,696$/ha EV / MT/ha11.5 e Oil%- 5.2%% Malaysia Planted Mature FFB Countries of AlChinMalaysia-Hadharah Teck MktCap Land Bank Planted Planted Extraction EBIT Margin 364262 19,945- Hectares19,94519,374 Hectares13,602- 18,24213,547 20,9629,768 Yield20.4- - 29.4%- Malaysia,OperationMalaysia Indonesia BousteadPlantations Hectare Hectare Rate BLDFar East Plantation Holdings 228319$ m 51,639ha- 24,36019,592ha 15,049ha- 16,2889,349$/ha 10,69613,732$/ha MT/ha11.518.21 e 18.8%%- 27.1%5.2%% Malaysia

• Asian markets typically ChinFeldaAl-Hadharah Teck Global 5,293262364 424,99519,945- 323,58819,37419,945 13,602-- 13,54718,2428,620 20,9629,7689,775 18.320.4- 20.6%-- 29.4%8.9%- Malaysia,Malaysia Indonesia PlantationsVenturesBoustead Genting Malaysia (64.3%), value 1 hectare of FarBLD East Plantation Holdings 2,063319228 165,90151,639- 19,592 93,49724,360 15,049 62,011- 16,288 19,8109,349 13,732 18,43310,696 11.518.21 23.2 e 18.8% 20.4- % 27.1% 33.3%5.2% Malaysia FeldaPlantationsChin Teck Global Indonesia (35.7%) Hap Seng 5,293262 424,995- 323,58819,374 13,602- 13,5478,620 9,7759,768 18.3- 20.6%- 29.4%8.9% Malaysia, Indonesia VenturesPlantations 709 39,803 35,471 31,068 19,998 19,328 23.8 21.0% 16.7% Malaysia planted land between GentingPlantations Malaysia (64.3%), Far East Holdings 2,063319 165,901- 93,49719,592 62,01115,049 19,81016,288 18,43313,732 18.21 23.2 20.418.8%% 33.3%27.1% Malaysia PlantationsFelda Global IndonesiaMalaysia (54.4%), (35.7%) IJM Plantations 5,293 719 424,995 - 323,588 46,761 26,089- 15,3688,620 15,9999,775 218.35.7 20.6% 34.4%8.9% Malaysia, Indonesia Hap Seng Indonesia (45.6%) 18-20tsd US$ Ventures 709 39,803 35,471 31,068 19,998 19,328 23.8 21.0% 16.7% Malaysia PlantationsGenting 17.4% Malaysia (64.3%), 2,063 165,901 93,497 62,011 19,810 18,433 23.2 20.4% (group) 33.3% or Malaysia (54.4%),(94.4%), • 1 hectare of mature IOIIJMPlantations Corporation Plantations 10,430 719 180,000 - 157,752 46,761 138,892 26,089 40,002 15,368 45,035 15,999 23.2 25.7 20.6%21.0% 34.4% Indonesia (35.7%) Hap Seng 63.2% IndonesiaIndonesia (45.6%) (5.6%) 709 39,803 35,471 31,068 19,998 19,328 23.8 21.0% 16.7% Malaysia Plantations (plantation)17.4% land is valued up to (group) or Malaysia,Malaysia Indonesia(94.4%),(54.4%), IOIIJM Corporation Plantations 10,430 719 180,000 - 157,752 46,761 138,892 26,089 40,002 15,368 45,035 15,999 23.2 25.7 21.0% 20.6% 34.4% (Also has grain KL Kepong 7,090 251,325 192,424 152,829 15,660 15,711 21.3 21.7% 14.4%63.2% IndonesiaIndonesia (45.6%)(5.6%) 25-30tsd US$ (plantation)17.4% operation in West (group) or Malaysia,MalaysiaAustralia) Indonesia (94.4%), KwantasIOI Corporation 10,430 180,000 157,752 138,892 40,002 45,035 23.2 21.0% (Also has grain KL Kepong 7,090183 251,32526,933 192,42417,234 152,82916,452 10,613 15,660 22,395 15,711 20.3 21.3 21.7%20.4% 14.4%63.2%5.6% IndonesiaMalaysia (5.6%) • F o r p e r s p e c t i v e : Corporation (plantation) operation in West Sarawak Oil Palms 743 72,653 58,940 33,877 12,609 12,635 20.4 20.9% 15.3% Malaysia,Australia)Malaysia Indonesia KwantasSarawak (Also has grain PRESCO and OKOMU, KL Kepong 7,090183239 251,32526,93351,965 192,42417,23429,574 152,82916,45225,893 10,613 15,6608,090 22,395 15,78,62411 20.313.0 21.3 20.4%21.0% 21.7% 21.2% 14.4%5.6% Malaysia CorporationPlantation operation in West 12.5% Sarawak Oil Palms 743 72,653 58,940 33,877 12,609 12,635 20.4 20.9% 15.3% MalaysiaAustralia)Malaysia (60.2%), the largest Nigerian (group) or SarawakSimeKwantas Darby 17,845 878,797 522,489 472,156 17,794 19,252 20.6 21.8% Indonesia (39.4%), 239183 51,96526,933 29,57417,234 25,89316,452 10,6138,090 22,3958,624 13.020.3 21.0%20.4% 24.6%21.2%5.6% Malaysia PlantationCorporation Liberia (0.4%) palm oil companies with (plantation)12.5% Sarawak Oil Palms 743 72,653 58,940 33,877 12,609 12,635 20.4 20.9% 15.3% MalaysiaMalaysia (60.2%), TH Plantations 474 39,382 37,407 22,920 12,684 14,327 22.4 20.5% (group)23.9% or Malaysia SimeSarawak Darby 17,845 878,797 522,489 472,156 17,794 19,252 20.6 21.8% Indonesia (39.4%), Unico-Desa 239 51,965 29,574 25,893 8,090 8,624 13.0 21.0% 24.6%21.2% Malaysia appr 10tsd ha under Plantation 311 13,660 12,700 9,889 24,453 25,068 25.0 20.6% 18.4% Liberia Malaysia (0.4%) Plantations (plantation)12.5% Malaysia (60.2%), THUnited Plantations Malacca 474463 39,38224,134 37,40721,268 22,92015,253 12,68421,784 14,32719,346 218.32.4 20.5%20.8% (group)23.9%45.4% or Malaysia Sime Darby 17,845 878,797 522,489 472,156 17,794 19,252 20.6 21.8% Indonesia (39.4%), operations, are valued at UnicoUnited-Desa 24.6% Malaysia (80.6%), 1,765311 13,66050,725 12,70045,658 37,433 9,889 24,45336,104 25,06831,337 25.023.0 20.6%22.0% 36.4% 18.4% Liberia Malaysia (0.4%) Plantations (plantation) Indonesia (19.4%) 20-25tsd US$ per United TH Plantations Malacca 49,501463474 2,291,85724,13439,382 1,678,03421,26837,407 1,073,41315,25322,920 21,784 17,83412,684 19,346 18,90714,327 18.322.4 20.8%20.5% 45.4%23.9% Malaysia

UnitedUnico-Desa Malaysia (80.6%), 1,765311 50,72513,660 45,65812,700 37,433 9,889 36,10424,453 31,33725,068 23.025.0 22.0%20.6% 36.4% 18.4% Malaysia6 Plantations Indonesia (19.4%) planted hectare at Lagos United Malacca 49,501463 2,291,85724,134 1,678,03421,268 1,073,41315,253 17,83421,784 18,90719,346 18.3 20.8% 45.4% Malaysia United Malaysia (80.6%), 1,765 50,725 45,658 37,433 36,104 31,337 23.0 22.0% 36.4% Stock exchange Plantations Indonesia6 (19.4%) 49,501 2,291,857 1,678,034 1,073,413 17,834 18,907

Source: Bloomberg Feb2013 40 Palm oil creates extraordinary IDG AGRI Pan-African Food & Fuel long-term value per hectare

Cost & revenue development per hectare – $ • Palm oil generates proven and 5000 3.000-3.500$/ha EBITDA for 20+ years

significant value over its 25 4000 years tree life cycle Maize Revenue • During the initial 3 years till 3000 CPO Revenue first harvest, a gross 2000 Overhead development investment of 1000 Maize Costs 5.000-5.500 $/ha is required Production • Maize as intercrop allows for 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10..25 Planting early and strong cash-flow of -1000 Infrastructure 700$/ha during development -2000 Development phase • As of Year 4, a hectare of 5.000-5.500$ha

palm trees delivers 3-5 tonnes -3000 Full maturity yield assumption: 22t FFB/ha, 22% OER, 5t CPO/ha of CPO with significant Development costs per hectare Production costs per CPO tonne margins with up to 3.500$/ha 5.000-5.500$/ha 250-290$/t p.a. for the next 20 years Land prepration Manure • With CPO production costs of Planting Harvest 250-290$/t and domestic Processing sales prices of 850+$/t, each Estate costs Overhead CPO tonne is highly profitable Mill Other

41 Structural cost advantages due to IDG AGRI Pan-African Food & Fuel location, scale and efficiency

Appr. -20% lower development cost vs East- ...and appr. -20% less production costs Asian benchmarks...

• CAPEX around 5.500$/ha for a newly planted • Annual production costs below 290$ per CPO hectar to maturity vs typically 7.000$+/ha in tonnes in the mid-run vs 300-350$ in Asia Asia • Comparable input materials costs due to • Lower land preparation costs due to lower purchasing scale and bio-farming methods labor of 3-5$/day vs 12-14$/day in East Asia • Significantly cheaper FFB collection due to • Lower land rental fees of around 5-30$/ha vs lower labor costs typically 500-3.000$ in Asia • Mill costs, including transportation, broadly in

• No/low land acquisition costs vs typically line due to efficient, high-capacity mills 3.000$/ha in Asia • G&A below 40$/ha through lean office overheads CAPEX/ha comparison vs upper-quartile indonesian producer- $ OPEX/CPO t/p.a. comparison vs upper-quartile indonesian producer- $ 8000 400

7000 350 Overhead 6000 Land Fee 300 Misc 5000 Estate Overhead 250 4000 200 Infrastructure Mill&Transportation 3000 150 2000 Agri Expense 100 Labor 1000 50 Preparation Input&Maintenance 0 0 Asia IDG AGRI Asia IDG AGRI 42 50tsd ha palm oil farm: operations IDG AGRI Pan-African Food & Fuel forecast and cash-flow summary

Unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Total mature palms hectares - - - 2.000 10.000 20.000 30.000 40.000 50.000 50.000 50.000

New palm planted hectares 2.000 8.000 10.000 10.000 10.000 10.000 - - - - -

FFB production tonnes - - - 7.000 44.000 131.000 290.000 502.000 750.000 968.000 1.136.000

Avg FFB yield tonnes/ha 0,0 0,0 0,0 3,5 4,4 6,6 9,7 12,6 15,0 19,4 22,7

CPO production tonnes 0 0 0 1.540 9.680 30.130 66.700 115.460 172.500 222.640 261.280

PKO production tonnes 0 0 0 128 804 2.395 5.301 9.177 13.710 17.695 20.766

CPO extraction rate % - - - 22% 22% 23% 23% 23% 23% 23% 23%

CPO Price $/tonne 900 900 900 900 900 900 900 900 900 900 900

Revenues Palm $m - - - 1.5 9.4 29.7 64.8 112.2 167.5 216.3 253.8

Opex $m (0.2) (0.2) (0.3) (0.6) (3.8) (9.8) (19.2) (31.3) (45.1) (55.8) (64.1)

G&A $m (3.0) (4.0) (5.0) (6.0) (7.0) (7.0) (7.0) (7.0) (7.0) (7.0) (7.0)

Taxes $m ------

Cash from operations $m (3.2) (4.2) (5.3) (5.1) (1.4) 12.9 38.6 73.9 115.4 153.5 182.7

Capex $m (23.9) (28.1) (34.2) (40.7) (42.0) (30.5) (21.5) (19.0) (14.0) (11.5) (1.5)

Free cash flow $m (26.9) (32.1) (39.2) (45.9) (43.4) (18.8) 17.0 54.8 101.4 141.9 181.2

Total mature maize hectares 2.000 10.000 20.000 28.000 30.000 30.000 20.000 10.000 - - -

Maize production tonnes 7.000 35.000 70.000 98.000 105.000 105.000 70.000 35.000 - - -

Maize price $/tonne 200 200 200 200 200 200 200 200 200 200 200

Revenues maize $m 1.4 7.0 14.0 19.6 21.0 21.0 14.0 7.0 - - -

Production costs $m (0.4) (2.0) (4.0) (5.6) (6.0) (6.0) (4.0) (2.0) - - -

Cash from intercrop $m 1.0 5.0 10.0 14.6 15.0 15.0 10.0 5.0 - - -

TOT. CASH FROM OPS $M (2.2) 0.8 4.7 9.5 13.6 27.9 48.6 78.9 115.4 153.3 182.7

TOTAL FREE CASH $m (25.9) (27.6) (30.4) (33.4) (35.9) (7.9) 21.8 52.0 90.5 128.2 165.1 43 CUM. CASH-FLOW $m (25.9) (53.5) (83.7) (117.1) (153.0) (160.9) (139.1) (87.1) 3.4 131.6 296.7 50tsd ha palm oil farm: expenses IDG AGRI Pan-African Food & Fuel overview

Unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Total mature palms hectares - - - 2.000 10.000 20.000 30.000 40.000 50.000 50.000 50.000

New planted hectares 2.000 8.000 10.000 10.000 10.000 10.000 - - - - -

FFB production tonnes - - - 7.000 44.000 131.000 290.000 502.000 750.000 968.000 1.136.000

CPO production tonnes 0 0 0 1.540 9.680 30.130 66.700 115.460 172.500 222.640 261.280

Revenues $m - - - 1.5 9.4 29.7 64.8 112.2 167.5 216.3 253.8

Revenues per planted ha $/ha - - - 50 236 585 1.296 2.243 3.352 4.326 5.077

Mill $m (2.5) - - (2.5) (2.5) (10.0) (10.0) (12.5) (12.5) (10.0) -

Annual FFB capacity tonnes 0 50.000 50.000 50.000 100.000 150.000 350.000 550.000 800.000 1.050.000 1.250.000

Land preparation $m (12.0) (12.0) (12.0) (12.0) (12.0) ------

Nursery $m (0.9) (3.6) (4.5) (4.5) (4.5) (4.5) - - - - -

Upbringing $m (1.0) (5.0) (10.0) (14.0) (15.0) (15.0) (10.0) (5.0) - - -

Other $m (7.0) (7.0) (7.0) (7.0) (7.0) ------

Land costs $m (0.5) (0.5) (0.8) (0.8) (1.0) (1.0) (1.5) (1.5) (1.5) (1.5) (1.5)

CAPEX $m (23.9) (28.1) (34.2) (40.7) (42.0) (30.5) (21.5) (19.0) (14.0) (11.5) (1.5)

CAPEX per new hectare $/ha (Avg. 5.340 over full period)

Plantation $m (0.2) (0.2) (0.3) (0.3) (1.8) (3.6) (5.4) (7.2) (9.0) (9.0) (9.0)

Harvesting $m - - - (0.1) (0.3) (1.0) (2.2) (4.0) (6.1) (8.0) (9.6)

Milling $m - - - (0.2) (1.7) (5.2) (11.6) (20.0) (30.0) (38.7) (45.4)

OPEX $m (0.2) (0.2) (0.3) (0.6) (3.8) (9.8) (19.2) (31.3) (45.1) (55.8) (64.1)

OPEX per CPO tonne $/tonne - - - (415) (371) (303) (268) (251) (242) (232) (227)

OPEX per planted ha $/ha - - - (23) (97) (197) (386) (626) (903) (1.116) (1.283)

G&A $m (3.0) (4.0) (5.0) (6.0) (7.0) (7.0) (7.0) (7.0) (7.0) (7.0) (7.0)

G&A per CPO tonne $/tonne - - - (3.800) (723) (243) (105) (61) (41) (31) (27)

G&A per planted hectare $/ha (1.500) (400) (250) (200) (175) (140) (140) (140) (140) (140) (140)44 Sugarcane creates extraordinary IDG AGRI Pan-African Food & Fuel value per hectare

Cost & revenue development per hectare – $

• Sugarcane creates significant 10000 3.500-3.700$/ha EBITDA value shortly after planting. for next 10 year cycle Cane has a typical life-cycle of 8000

10 years and needs to be 6000 replanted then. Cane Revenue 4000 • A gross development Overhead investment of ca. 3.000$/ha 2000 Production Planting is required in Year 1 0 • As of Year 2, a hectare of Infrastructure sugarcane delivers 60-70t of -2000

cane with significant margins -4000 with up to 3.700$/ha p.a. for Development phase -6000 Full maturity yield projection: 70t cane/ha the next 8-9 years 2.800-3.000$ha • With cane production costs of Development costs per hectare Production costs per tonne +-3.000$/ha +-30$/t 30$/t and domestic sales Land Ratoon prices of 80+$/t, each cane prepration Mgmt Harvest tonne is highly profitable Planting Cane Transport Estate costs Overhead

Other Other

45 40tsd ha sugarcane farms: operations IDG AGRI Pan-African Food & Fuel forecast and cash-flow summary

Unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Total mature cane hectares 0 2.000 10.000 20.000 30.000 40.000 40.000 40.000 40.000 40.000 40.000

New cane planted hectares 2.000 8.000 10.000 10.000 10.000 0 0 0 0 0 0

Sugarcane production tonnes - 120.000 620.000 1.300.000 2.000.000 2.700.000 2.800.000 2.800.000 2.800.000 2.800.000 2.800.000

Avg cane yield tonnes/ha - 60 62 65 67 68 70 70 70 70 70

Sugar production tonnes ------

Sugarcane Price $/tonne 80 80 80 80 80 80 80 80 80 80 80

Revenues Sugarcane $m - 9.6 49.6 104.0 160.0 216.0 224.0 224.0 224.0 224.0 224.0

Opex $m (3.7) (18.7) (37.5) (56.4) (75.1) (75.1) (75.1) (75.1) (75.1) (75.1) (75.1)

G&A $m (3.0) (4.0) (5.0) (6.0) (7.0) (7.0) (7.0) (7.0) (7.0) (7.0) (7.0)

Taxes $m ------

Cash from operations $m (6.7) (13.1) 7.0 41.6 77.8 133.8 141.8 141.8 141.8 141.8 141.8

Capex $m (6.4) (24.2) (30.5) (30.5) (30.7) (1.0) (1.5) (1.5) (1.5) (4.7) (14.3)

Free cash flow $m (13.2) (37.4) (23.4) 11.1 47.1 132.8 140.3 140.3 140.3 137.1 127.5

Cum Cash Flow $m (13.2) (50.6) (74.1) (62.9) (15.8) 117.0 257.4 397.8 538.2 675.3 802.9

46 40tsd ha sugarcane farms: expenses IDG AGRI Pan-African Food & Fuel overview

Unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Total mature cane hectares - 2.000 10.000 20.000 30.00 40.000 40.000 40.000 40.000 40.000 40.000

New planted hectares 2.000 8.000 10.000 10.000 10.000 10.000 - - - - -

Sugarcane production tonnes - 120.000 620.000 1.300.000 2.000.000 2.700.000 2.800.000 2.800.000 2.800.000 2.800.000 2.800.000

Sugarcane Revenues $m - 9.6 49.6 104.0 160.0 216.0 224.0 224.0 224.0 224.0 224.0

Revenues per planted ha $/ha - 960 2.480 3.467 4.000 5.400 5.600 5.600 5.600 5.600 5.600

Cane planting $m (3.1) (12.4) (15.5) (15.5) (15.5) ------

Land preparation tonnes (2.0) (8.0) (10.0) (10.0) (10.0) ------

Land rehabilitation $m ------(3.2) (12.8)

Equioment $m (0.8) (3.3) (4.2) (4.2) (4.2) ------

Land costs $m (0.5) (0.5) (0.8) (0.8) (1.0) (1.0) (1.5) (1.5) (1.5) (1.5) (1.5)

CAPEX $m (6.4) (24.2) (30.5) (30.5) (30.7) (1.0) (1.5) (1.5) (1.5) (4.7) (14.3)

CAPEX per new hectare $/ha (Avg. 2.974 over full period)

Ratoon Management $m (1.0) (5.0) (10.0) (15.0) (20.0) (20.0) (20.0) (20.0) (20.0) (20.0) (20.0)

Harvesting $m (0.3) (1.5) (3.0) (4.5) (6.0) (6.0) (6.0) (6.0) (6.0) (6.0) (6.0)

Other direct costs $m (1.7) (8.5) (17.0) (25.5) (34.0) (34.0) (34.0) (34.0) (34.0) (34.0) (34.0)

Transport $m (0.7) (3.7) (7.5) (11.4) (15.1) (15.1) (15.1) (15.1) (15.1) (15.1) (15.1)

OPEX $m (3.7) (18.7) (37.5) (56.4) (75.1) (75.1) (75.1) (75.1) (75.1) (75.1) (75.1)

OPEX per planted ha $/ha (1.878) (1.878) (1.878) (1.878) (1.878) (1.878) (1.878) (1.878) (1.878) (1.878) (1.878)

OPEX per cane tonne $/tonne - (156.5) (60.5) (43.3) (37.5) (27.8) (26.8) (26.8) (26.8) (26.8) (26.8)

G&A $m (3.0) (4.0) (5.0) (6.0) (7.0) (7.0) (7.0) (7.0) (7.0) (7.0) (7.0)

G&A per planted hectare $/ha (1.500) (250) (225) (200) (175) (175) (175) (175) (175) (175) (175)

G&A per cane tonne $/tonne - (33.3) (8.0) (4.6) (3.5) (2.5) (2.5) (2.5) (2.5) (2.5) (2.5)

47 Opportunity 1: Sales of 100% of IDG‘s IDG AGRI Pan-African Food & Fuel sole interest in timber extraction rights

• As part of the sale, the investor would receive sole ownership of the IDG Lands timber extraction rightsin SL for 5 years. This covers all hard- and softwoods across the full 124.000 hectares. To reemphasize, the woods all come from natural forests. • IDG would remain the land lease holder of the IDG lands in order to establish and execute its agri-business operations and to ensure a sustainable business environment. • The investor would be asked to submit and agree a 5-year timber extraction plan with IDG in order to align the timber extraction timings with IDG’s agri-business roll-out schedule. • The investor would receive the rights to erect and maintain all necessary infrastructure required for a successful timber extraction such as storage facilities, equipment parks etc. • As part of its longterm lease commitments, IDG will support in ensuring the Community good-will and in the recruitment of a local labour workforce for the timber extraction. • The selling price for the fully legitimate 5-year timber extraction rights across 124.000 hectares is 120mio US$. This is based on the thorough qualitative and quantitative timber opportunity assement by IDG’s team of international experts. The price is based on an extrapolated average timber volume and the wide-spread existence of the key wood types Mahagony, African Redwood, African Teak (Iroko), Sapele and some Walnut and Teak. . 48 Opportunity 2: Sales of 50% stake in IDG AGRI Pan-African Food & Fuel IDG‘s agri-business operations

• As part of the sale, the investor would receive the exclusive rights to manage and monetize 50% of the IDG Lands in SL, i.e. 62.000 hectares. These rights include all future profits from any agri-business operations and all profits from any timber extraction on the demised lands. • The rights would be valid in accordance with the run-time of the land lease agreements with the Moyamba Chiefdoms, i.e. for 50 years starting as of January 2014. The rights are renewable at the end of the 50-year period for an additional 21 years. • The investor could acquire those rights through acquisition of 50% equity in IDG’s Sierra Leonean company „IDG Africa Sierra Leone Ltd“ or through IDG subleasing 50% of the IDG Lands to the investor. • The investor would be asked to submit and agree a 10-year agri-business and timber extraction plan with IDG in order to align the investor’s activities to IDG’s agri-business roll-out of industrial-scale palmoil, sugarcane and Ethanol production in the other part of the IDG Lands. • IDG would remain a strategic investor to ensure the implementation of the agreed Community measures and to secure the continued good-will and collaboration of both the Government and the Communities. • The selling price for the fully legitimate 50-year usage and monetization rights across 62.000 hectares is 410mio US$. This is based on the qualitative and quantitative agri-business opportunity assement by IDG’s team of international experts, coupled with the superior soil quality and agri-climatic conditions. 49 IDG AGRI Pan-African Food & Fuel Indicative valuation I

Valuation of Palm Oil: § Using the valuation schematic above: 62,000 hectares at USD6,000 per hectare values the palm oil project at USD372,000,000 currently. Once mature, this valuations triples to more than USD1bn. § Assuming planted 62,000 hectares of palm oil: This is expected to produce c.1,570,000 MT of crude palm oil p.a. at a yield of 22 tons/Ha Fresh Fruit Bunches (FFB) at maturity. § At average production of crude oil of 3.5 – 4.0 MT/Ha, this could represent a revenue stream in excess of USD360m per annum over a 20 year period. 50 IDG AGRI Pan-African Food & Fuel Indicative valuation II

Sugar Cane: Timber: § Sugarcane creates significant value shortly after § IDG has rights for industrial scale wood extraction planting. with the necessary export permits secured over the § Cane has a typical life-cycle of 10 years and needs to entire 124,000 hectares holding. be replanted then. § The IDG land contain massive virgin timber § Potential USD3,500-3,700/ha EBITDA for next 10 year properties comprised of highly valuable equatorial cycle. forest timber species such as Mahogany, African § As of Year 2, a hectare of sugarcane delivers 60-70t of Redwood, African Teak (Iroko), Sapele and Walnut. cane with significant margins with up to USD3.700/ha § The asking price of USD120m is based on a p.a. for the next 8-9 years conservative extrapolated average timber volume § With cane production costs of USD30/t and domestic and the existence of the wood types mentioned sales prices of USD80/t, each cane tonne is highly above. profitable § The actual market value for the wood far exceeds § Assuming a 40,000 planted sugar cane farm, with this estimate. production reaching 2,800,000 MT p.a., cumulative net cash flow over ten year cycle is over USD700m.

The sum of the parts of all 3 elements of the project on a conservative basis are higher than the entry price for the project providing a discount

to fair value which enables significant upside for incoming investor 51 IDG AGRI 37 Royce Road, 2194 Johannesburg, South Africa 45 Rockefeller Plaza, Suite 2000, 1011 NYC, USA

Phone: (+27) 72 640 5812 [email protected]