Moringa’ | A Sustainable Agroforestry Fund Sustainable, Profitable Large Scale Agro Forestry Projects Working Conference ‘Boosting Investments in Sustainable Forestry, Forest Carbon and Ranewahle Energy” 5% ~ 7" September, Accra - Ghana September 2012 J] La compacnte BeNIAMINDE ROTHSCHILD {OUPE EDMOND DE ROTHSCHILDMoringa | in a nutshell snoningdend ree F i. Moringa is a sustainable agro-forestry fund with a target size of | €100m investing in large scale projects Geography: Latin America and Sub-Saharan Africa | Profitability of 10-12% net for investors based on strong fundamentals and long term market trends | High positive environmental impact projects Strong social benefits for surrounding populations, including through | out-grower programmes Core team boosted by two complementary partners: La Compagnie | Benjamin de Rothschild and ONF International A strong field presence and network | Awell defined pipeline of over 40 replicable projects | ATA facility to re-inforce the impact of the fund6 a logical approach. morngifins Moringa | agroforest " Agroforestry is the spatial or temporal combination of trees and crops or animals, with biological, social and economic synergies leading to higher productivity, reduced risks, a more stable income for local populations, and positive environmental impacts Bar 7 carols ofblenel tenons obs potty 4 pclae ‘Social benefits * Better use of water Envionmental pacts * Biological regulation of pests "= Tropica! agroforestry projects typically combine forestry activities (timber, industrial tree crops or fruit trees) with cattle, food crops, or niche export crops ‘cone Beinn Oe ROTHEEMLD | ONFBERHATIONAL | RING4 Agroforestry | long term market trends —_morinaifind aS = Profitability of 10-12% based on strong “ern. fundamentals, particularly long term growth in targeted markets: bRRtE = Farm product prices on the rise (FAO, 2021) = Astable and growing timber market: wood isthe only = mea - true renewable material (UNCTAD, 2011} as = Scarcity of available arable lands exacerbated by need to conserve forests (FAO, 2009) = A fossil fuel energy market that is under strain = New revenue sources boost project profitability: carbon credits (REDD#, voluntary markets) = High growth emerging markets with major ‘opportunities (Latin America, Sub-Saharan Africa) a= trek Bp FO peti, Oboe Oa Le Fe Tepe nro aon a a CF) Ppt Sah at ig en py Det, al po, oS) {COMPAGNIE BE DE RETHECIAD [ TEROUTONO HORNED. <. 4 Agroforestry | high environmental impact moringdind = Moringa encourages reforestation, biodiversity preservation, climate change, soil restoration, watershed protection, etc. Direvindirct consumption of tose based energies and rosction of enewsble energies amare Ne Greenhouse gasemissons carbon * Strong environmental credentials of projects act as risk mitigators. Covel of destruction / preservation J restoration of esoures: water, Soll and aw materia. Reduction => Increased profitability in the long term: agro-forestry synergies and additional musieroecry revenues (carbon credits, etc.) Inmpocten human health and toxic far the environment evel of destruction /preseration/ restoration oftodive!sy estuton {CONbAGNE Bakinan DE ROTHSENLD on WTEROATIONAL WEA 7 A4 Agroforestry | strong social benefits mmoringdlunt <= = Morgina projects provide strong social benefits to surrounding |" i eon populations Impact onthe people who are remunerated by he priect. = Additional revenues, schooling, health, etc. Relations wth populaions that are affected rety on Inarectiyby the project, | i igcton teal eon, aity "= Projects benefit from the presence Protection of supportive local populations cof communitesto mee their ‘economic needs na sustainable Impacton vlnerable grouns. ‘women youth, senor, ethnic minors, refuges, migrants forogners. Respecting commutes’ access twessential resources => Significantly stronger guarantee — against social & political risks = Reduction or elimination of fire hazard, vandalism, theft etc. E] espotation. 6 Agroforestry | Moringa E&S System matrix morngéie —_— = ~ - toch ofthe 30 rr othe Morigy E85 Systm matrits asesed on fe fv: © The project introduces state-of-the-art practices and techniques: = The project introduces practices and techniques that are better ‘than the baseline scenario = The project introduces practices and techniques that are ‘equivalent to the baseline scenario © The project introduces practices and techniques to improve Its impact, but the baseline scenaio is better © The project’s impact is unacceptable, which is an exclusion criteria (eg, Competition with human ar cattle food; soil degradation; flooding of land.) {i couPscie Benann DE ROTRSERLD OKF WTESBOTIONAL| NORWGA 7Moringa | invest in agroforestry moringdind = Sustainable production of agri and timber products is a key to successfully combating deforestation and climate changeStiety contention 4 profitable alternative to the . 5 ; wW Moringa | invest in agroforestry moringdlund * Agroforestry provides a sustainable and 4 Bee unsustainable land use scenarios that 32g toon onronstanonscnmnos EES g28 drive deforestation. = Compared to these scenarios, well designed and well managed agroforestry projects provice: = better risk mitigation in the short and tong run ® higher profitability in the Jong run {B Gonescie WOun be FOTN NF WTROUTICNBL MORN PROJECT KS LONG TERM PROJECT REVENUES her mioe orotic ae fi te6, : . : io Moringa | invest in agroforestry moringd nd — = Compared to conventional timber and agricultural projects, agroforestry delivers a better risk / return through a more intense land use at reduced costs, with a diversified income base over the investment period. ‘SHORT TERM REVENUES MIBDLE TERIA REVENUES {LONG TERM REVENUES OS yeas 5ldseus Diyere 3 Ws Increased exit value due to : ‘Moringe’s duration etal (GicaeagiiE BEN HG EE REASON [OaF HFT SRI ®Project Kassava| a project that meets these ’ requirements ~oringaiur * DRC: one of the largest country in Africa with a population among the poorest in the world. = Project Kassava is located at less than 200 km from the 12 million inhabitants capital city of Kinshasa * Deforestation is largely due to demand for fuel wood. Wood and charcoal are the only sources of energy for cooking = The savannah is burnt several times a year releasing heavy carbon emissions and Preventing forest from re-establishingProject Kassava moringal = The last forests and gallery forests are disappearing, threatening to provoke an even greater environmental disaster = The appalling poverty of the population might still get worse.Project Kassava moringa’ "A belgo-congolese entrepreneur / traditional chief has launched an agroforestry project combining an Acacia tree reforestation program with manioc farming on an area of 1200 ha of semi-arid savannah. * Acacia trees give the soil the Nutrients it requires; soil is progressively recovering its fertility allowing manioc to grow. * Acacia trees are processed into Bharcoal reducing the pressure on Natural forest that is rich in biodiversity; manioc is pracessed into flour for the Kinshasa market TiSGHLb OW WEN TONa (Project Kassava] a project that meets these requirements = Results: © These eroded, compacted unfertile savannah are progressively reforested, creating a carbon sink * Cornmunities living nearby obtain revenues, schooling and health care © The local population has learned the benefits of agro forestry and can see how to replicate the model ® Supply of manioc, a core component in the staple diet of the Jocal population is more readily available in Kinshasa = Charcoal from a sustainable source is being supplied to Kinshasa, reducing the pressure on natural forests = Local population is actively interested in attracting éxperienced agroforestry investorsFinancials Executive summary 7 Project Kassava smoringatind ‘Main assumptions Revenues breakdown SE EET — ” a owestmene year 203 28% Cig Soma Primaneisl ssunotons Saecnnueeenn Tourevenues —0yeors) e283 ” maar forod ‘tat Seen cS sox co ons] 7. enatoal —MManioe — Meaton Gedts mother nome ee stent ee oe. Fuel wood - Charcoat revenues breakdown = -Ga- nanan otacnen Prosctitt bye seats Nora a yron! 130% Moning Redes 5 aan ee for cent and cen ato aca Gicwctgts frtestinre a cucalipProject Kassava no Se ‘Project's cash flows (30 years, mn KUSD) Financials Cash flows ew ve = § 8 & BOHR =e a smimicasMtow tominuestment: MMU Cssilow fom Operations = Cutuatd CatMow le ait —peveo(cumlRghinle Capac pe er Right ae comments, “Investments are made in the eary years ofthe project te faance the planting of ees and maNiCe + The profitable production of manicc before canapy closure brings revenues to finance the plantalons in subsequent years 1 The capitalincastad i manly consumed in planting cots andthe developmert of industiah units or the production of manioe {year 0 and 1) and charcoal {year 6)oe 4 Moringa | Technical Assistance Facility moringatind * Moringa will incorporate a dedicated Technical Assistance Facility (target size 7 M€) in order to: = Strengthen projects in the pre-investment phase including introduction of environmental, social innovations (based on ONFI and local partner expertise} "= Strengthen projects in the investment phase (capacity building, re-inforcing R&D, formalization of accumulated experience) = Dissemination of state of the art technologies and experience * Support of out-grower programmesMoringa | an experienced team mmovingaend - - > + Extensive experience in busines, transaction and project development in unstable developing countries, negetating Vs, selling and making acquisitions of companies as intematinal direcor & the head of if Lubrfan’s Intemational division. + resident of FIA (inerafican Forest Industries Association) since 2006, a Federation which brings _fogether al professional associations in she forestry sector in the Congo Basin Region and West Afica Conta) + Chietrivate Equity Foe tthe African Development snk 09-11) * Response for European Investment Rank Fat Equity Portfolio in sub Saharan Arica (02-05) and | Europe ienewableEvergy (0603) + Member of founding team of Yennat Capital, an early stage Esropean / US VC investor (97-02) ‘Business Redesign Consultant and Project Engineer on African Agribusiness projects with CDC {UK} | Chacteredtngionse — — — _ Cay fou | | | en fuses evelopment st OF tera Dipateeed poe enc aden Ten | ortndar of ren segs ‘tor / Coit et 8 Young ual Asace and doy Sere) Fes anger at OF ‘vate Equity Fund Management Experience ee Deal structuring / modeling expesience Investor Relations and Reporting aoe4 Moringa| a strong platform moringdnd * International Subsidiary of ONF (French National Forestry Organization, created in 1231, 10Mha of forests, staff of 10,000) + Premier environmental finance house + Highly experienced in fund structuring and management Privileged relationships + TWemployees, aver 30in with industrials, financial fs ‘Africa and Latin America) institutions and Service areas Sustainable Development Finance ia forest management, Reforestation/Afforestation, Institutions * Seed investor in the fund Protected area management (to be approved by the and rural development, board of Directors of CBR} Carbon / fight against GHG, Bio-energy Sourcing capacities, plus technical expertise in forestry and agro-forestry through a service contract omni Seno iE ROTHSCHILD] OF BTERRATIONAL WORE *‘4 moringalund Disclaimer Le Compagnie Benjamin do Rothschil anc ONF inematons make no presentation regarding the aeer3cy, ello legally othe infermation nine nts document. 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