Investing in Agriculture

Profit from the next “Green Revolution”

By Coast Sullenger
Portfolio Manager

February - 2012
 Contents
2

I. Key drivers for the agri sector

 Evolution of prices
 Population growth and wealth effect
 Technology gains slowing
 Evolution of agri land

II. Investment universe—why equities?

 Equities vs. underlying agri commodities
 Active vs. passive approach
 Extracts of the universe
 Investment strategy

III. Investing in the green revolution

 The revival of farming
 Large scale farming: case study

Appendix
 3

I. Key drivers for the agri sector

 Food prices (nominal) 4

Nominal Food prices growing

 Long-term prices in real terms5

Food vs. base metals prices*

Note: *Adjusted for inflation

Source: NBF, Global Insight data
 Agri drivers: Population growth6

Tremendous growth in population, bn

Source: UN Population Forecast

 Agri drivers: « The wealth effect »7

Calorie supply per capita vs. GDP per capita

GDP growth in low income countries has a major impact on global food consumption

Source: FAOSTAT, IMF, Credit Suisse research, Feb-18, 2011

 Agri drivers: changing eating habits8

Pork consumption grew 5-fold since 1960s

… while population grew only 3 times

Source: USDA, Renaissance Capital

 Agri drivers: feeding the changing habits9

Corn consumption exceeded wheat

Demand for corn exceeded wheat consumption driven by 5-fold growth in pork and poultry
consumption since „60s, as well as by US ethanol industry growth

Source: USDA, Renaissance Capital

 Agri drivers: feeding the changing habits10

Corn consumption accelerated since 2000

 Agri drivers: China
11

China % in global corn consumption is growing

 STU ratios in pct
12

The lowest Corn STU since 1970s

• China has become a

net importer which
is a significant event
for the corn market!

• Biofuels is still an
issue with nearly 40%
of the US corn crop
diverted to fuel.
 STU ratios in pct
13

World Wheat market is balanced

• Two bumper crops in a
row have helped this ratio
to recover from below its
5-year average to approx.
26% STU

• However the general

trend shows production
struggling to meet
growing consumption

• Half of winter crops,

mainly wheat, in Eastern
Europe were damaged
due to drought in autumn
and severy winter
 STU ratios in pct
14

World Grain Stocks as days of consumption, 1960-2011

Source: USDA
 Technology gains slowing
15

Growth in world cereal yields is slowing

Global cereal yields grew 2.0% p.a. on average over the past 50 years but growth slowed to
1.3% pa over the past 10 years

Source: FAO, Credit Suisse research

 Agri drivers: slowing growth in productivity
16

Is productivity reaching its limits?

Sources: As of 17th September, 2010

Societe Generale
 Agri drivers: more land into production?
17

Area needed to meet demand for major

commodities in 2050

Source: FAO, SAGE, 2009

 Agri drivers: Farm land
18

Rate of growth in world arable land slowed to

zero on aggregate

Source: FAO, Credit Suisse, Feb-18, 2011

 Number of people per farmed ha growing
19

Arable land increased 7.6% since 1960 on 128%

population growth
 Less farm land avaliable per capita
20

World Grain Area Harvested per Person, 1950-2011, ha

Source: USDA
 Arable land distribution
21

Distribution of arable land across the world

mln ha % of total
Europe 94 6%
US 173 11%
LATAM 300 19%
Indonesia 38 2%
Russia 123 8%
Ukraine 33 2%
Sub-Saharan Africa 590 38%
Other 202 13%
World Total 1,554 100%
Source: Conab, Indonesian Ministry of Agriculture, USDA, FAO, Credit Suisse, McKinsey MGI, Seedrock
 Number of farmland deals growing
22

Total area of reported land deals*,

2001-2011, mn ha:

Other;
LATAM; 1.1
8.8
Over the past 10 years, land
acquisition deals totaling over 80 mn
ha have been reported. This is more
Asia; Total: than the total farmland of Britain,
19.3 79.9mn France, Germany and Italy combined.
In the near future USD100 bn is
estimated to be further invested in
farmland by various investment
Africa; groups.
50.7

Note: Preliminary estimate

Source: Oxfam, CIRAD, CDE at University of Bern, International Land Coalition
 Investment universe – why equities
23

II. Investment universe – why equities?

 Equities vs. underlying Ags
24

Invest in Agri equities - not physicals!

Equities Physicals
 Total value of listed Ag universe < $500bn shows  Very liquid, but volatile
under-investment  Steep foward curves and high roll-over yields can
 Positive social contribution by financing agri depress gains
companies!  Negative social consequences as speculation may
 Good leverage to industry development and distort food prices
innovation  Risk of regulation in future due to social and other
 Leverage to growth in Ag prices issues

 Exposure to undervalued farm land  Cannot play consolidation in agri sector via futures

 Liquid and illiquid shares

 Exposure to strategic assets such as Potash

where production is limited (6 countries produce)
 Investment universe
25

Investment universe Company Name Sector Region MCap, Farming Assets,

$ mn ha
1 WILMAR INTERL LTD Palm Oil Indonesia 26,128 248,110
2 GOLDEN AGRI RESOUR Palm Oil Indonesia 7,257 448,900
3 BRF-BRASIL FOODS S Meat Brazil 17,883 n/a

• Up to 800 listed stocks in our

4 MARINE HARVEST ASA Fish Norway 1,957 Fish farming plants
5 CHAROEN POK FOODS Meat Thailand 8,802 n/a

current agri universe

6 COSAN LTD Sugar Brazil 3,939 437,698
7 INDOFOOD AGRI RE Palm Oil Malaysia 1,869 323,607
8 CHIQUITA BRANDS INTL INC Fruit United States 478 80,937
9 TYSON FOODS INC Meat United States 7,010 n/a
10 FRESH DEL MONTE PRODUCE Fruit United States 1,456 41,885
• Subsectors: 11
12
KERNEL HOLDING SA
ADECOAGRO S A
Diversified Farming
Diversified Farming
Ukraine
Argentina
1,811
1,118
185,000
295,000
13 DOLE FOOD CO INC NEW Fruit United States 888 12,950
14 SMITHFIELD FOODS INC Meat United States 3,786 n/a
- Harvesting & plantations 15
16
FIRST RESOURCES LT
CHINA MINZHONG FOO
Palm Oil
Other Plantations
Indonesia
China
2,092
500
120,830
3,908
- Food processing 17
18
MHP S.A.
TONGAAT-HULETT LTD
Diversified Farming
Sugar
Ukraine
Africa
1,503
1,411
280,000
274,000
- Timber 19
20
CHINA GREEN HLDGS
ASIAN CITRUS HLDGS
Diversified Farming
Fruit
China
China
342
705
6,180
6,800

- Fertilizers 21
22
ASIAN BAMBOO AG
SLC AGRICOLA SA
Other Plantations
Grains
China
Brazil
305
916
54,515
305,900

- Agri equipment 23
24
CHINA MODERN DAIRY
CERMAQ ASA
Dairy
Fish
China
Norway
1,281
1,331
n/a
Fish farming plants

- Water 25
26
NEW BRITAIN PALM O
SIPEF N.V.
Palm Oil
Other Plantations
United Kingdom
Indonesia
1,942
798
77,000
62,377

- Seed 27
28
ASTARTA HOLDING NV
BLACK EARTH FARMIN
Sugar
Grains
Ukraine
Russia
511
265
216,000
326,000

- Biofuel and other alternative energy

29 HORMEL FOODS CORP Meat United States 7,551 n/a
30 ILLOVO SUGAR Sugar Africa 1,571 n/a

- Agri retail and logistics

31 CRESUD S A C I F Y A Diversified Farming Argentina 669 473,369
32 SANDERSON FARMS INC Meat United States 1,125 n/a

- Sustainable agriculture
33 MORPOL ASA Fish Norway 299 Fish farming plants
34 LEROY SEAFOOD GROU Fish Norway 936 Fish farming plants
35 CAL MAINE FOODS INC Meat United States 933 n/a
36 AUSTRALIAN AGRIC Meat Australia 459 7,700,000
37 SEABOARD CORP Meat United States 2,406 24,281
…
As of 24th Feb 2012, Bloomberg, GAIA
 Extracts of Investment Universe
26

Most investors do not look beyond the large caps -

We see opportunities in small & mid-cap growth stocks!

Large caps Mid caps Small caps

 Investing in the green revolution
27

III. Investing in the green revolution

 Focus regions and segments
28

GAIA investment focus

Comparative Advantages
 Russia & CIS: Large scale grain farming, integration, processing, fertilizers

 Africa: Plantations, grain & fruits farming, infrastructure, processing

 Latin America: Large scale and Integrated farming, infrastructure, equipment

 US and Canada Global input companies, technology, equipment, trading

 China & East Asia Farming, fisheries, processing, proteins, distribution

Special focus on vertically

integrated farms & plantations

28
 Farming as the least capitalized subsector
29

Publicly listed companies in agri value chain

Farming is the least capitalized among agri subsectors although it accounts for
22% of the global agri value chain

Item Global agri value chain Market cap (%)

Suppliers 23 39
Farming 22 3
Processing 15 10
Logistics 14 9
Packing and distribution 26 35
Integrated n.a. 4
Total 100 100
Note: Global market capitalization is in US$ mln, n.a.= not applicable
Source: World Bank, Brookfield 2010, GAIA estimates
 Large scale farmers benefit from agri tech
30

Agri tech drives profitability of farmers

 Mini-till or no-till farming: reducing soil, water, and nutrient loss to negligible levels, decreasing
production costs through reduced machine use. SLC Agricola (Argentina, 300K ha) thanks to the use of no-
till technology exceeds the average Brazilian and US yields for cotton, soybeans and corn

 Precision farming/GPS navigation: precise application of costly fertilizers, control of the sowing process
over large land plots and highly efficient harvesting. Golden Agri Resources (operator of 450K ha of palm oil
plantations) uses GPS guided aerial fertilizing to cover the expansive plantations

 Innovation in plant protection, nutrition and seed varieties: higher yields using less water, land or
fertilizer; more diverse crops to meet different processors needs. In Africa, weeds and insects damage 25%
of crops every year. Hand weeding a one-hectare farm requires 200 hours of backbreaking labor

 New irrigation systems: precise use and application of water, higher yields, and multiple harvests per
year in some regions. Micro irrigation via drips or sprinklers can cut water use by up to 70%, depending on
the crop, soil and climate

 Silo bags: eliminate costly fixed storage systems and allow for on-site storage with no wastage or slippage.
AdecoAgro (South America, 300K ha) uses silo bags to have low-cost, scalable and flexible storage on the
field during harvest
 Vertical Integration
31

Vertical Integration: case of MHP, Ukraine biggest poultry producer

Source: MHP
 GAIA Research Highlights
32

SLC Agricola (SLCE3 BZ) - Latam/ Farming

 Exposure to LATAM farming through 306K ha

under modern harvesting
 A quality play on high grain and cotton prices.
SLC Agricola derives more than 50% of its profits
from cotton production, and some 30% from soy;
the balance is made up of corn, wheat, and coffee
 Good exposure to land price appreciation in
Brazil. July-2011 annual land price appraisal
report by Deloitte showed SLC’s land bank was
valued at R$1.76bn (+15% y/y adjusting for land
sales) SLC Agricola is an agricultural producer, focusing on cotton, soybean
and corn. It has production units strategically located in six Brazilian
 Trades with 28% discount to NAV states, totaling 306K hectares

 Liquid mid cap stock

 GAIA Research Highlights
33

AdecoAgro (AGRO US) - Latam/ Farming

 One of the largest public farmland owners and

operator in South America with approx. 300K ha
 Diversified business model
 96% self-sufficiency in own sugar beets, low-cost
sugar/ethanol producer
 Raised $314.3 mln through IPO in Jan-2011
 Solid shareholders support with Soros controlling
34% of the Company
 Trades with 36% discount to NAV
AdecoAgro is the largest public farmland holding with approx. 300K
ha in Argentina, Brazil and Uruguay. The Company has diversified
business model: farming crops (rice, corn, soy) and other
agricultural products, cattle and dairy operations, sugar, ethanol and
energy production and land transformation
 GAIA Research Highlights
34

MHP (MHPC LI)- Ukraine/Poultry

 High consumer demand for poultry in Ukraine.
 Vertical integration with 280K ha of farmed land provides
self-sufficiency in corn and sunflower meal which results
in high EBITDA margin vs. peers
 The Company obtains USD revenues thanks to
exporting sunflower oil which is a hedge against UAH
devaluation
 New greenfield project in Vinnitsa region will double
meat processing capacities by 2015
 Strong 2011 results: operating at full capacity during LSE-listed MHP is the largest Ukrainian poultry producers with
approx. 50% of all chicken commercially produced in the
2011 the Company still managed to increase meat country. MHP is a vertically-integrated company managing
output by 7% due to more effective use of existing 280K ha in Vinnitsa, Poltava, Sumy, and Chernigiv regions. The
group grows its own grain to supply its fodder mills; produces
capacities. MHP’s average chicken price grew 10% YoY feed for its breeder and chicken farms. MHP undertakes the
and experienced a good harvest in 2011 with the output entire production cycle, from chicks to mature birds to finished
of grains and oilseeds growing by 88% YoY. product and its distribution with own fleet of trucks. The
company sells much of its product through a network of
 The stock fell some 37% YoY in 2011 on global equity franchised stores.
markets panic and rebounded 24% since beginning of
2012
 Integrated vs. pure processor
35

Vertical Integration: MHP vs. peers

Meat processing companies Tyson Brasil Foods MHP

(US) (LATAM) (Ukraine)
MCap, $ mm 5,561 17,965 1,499
Poultry processing capacity, mm heads/ week* 42.3 46.9 3.6
Sales CAGR 2009-12e, % 7% 8% 16%
EBITDA Margin, % 6% 13% 33%
NI Margin, % 2% 7% 19%
Farmland, ths ha No No 280
EV/EBITDA11e, x 3.6 9.2 5.7
P/E11e, x 7.4 15.8 6.3

*Note: Tyson and Brasil Foods are also big pork and beef processors vs.
MHP having small sausages and convenience food production
As of Feb-23, 2012
Source: Gaia, Bloomberg
 Sector & Geographic Allocations
36

MOO GWAF
2%
1% 11%
14%
4% Farming/Integrated
Chemicals Fertilizer
7% 40%
40%
Agriculture Processing
16% Machinery-Diversified Timber
12%
Food Agri Tech

Other Crop Protection

Cash
28% 25%

LATAM
1% 12% Ukraine
2%
25% 19% Russia
US 3%
Africa
38% Canada
4% USA
Singapore Canada
5% Singapore
6% Switzerland 15%
5% China
Malaysia
6% Norway
Other 7% Indonesia
10% UK
11% 13% 8%
9% Switzerland
Cash

As of 22nd Feb 2012, Bloomberg, GAIA

 Key indicators: GAIA vs. MOO
37

GAIA World Agri portfolio is:

Valuation Metrics GAIA
1. Cheaper on key valuation metrics MOO
for top 15 positions World Agri
Index
(Weighted Average) Fund
2. Liquid enough for investors
P/E 2012e 7.5x 13.5x
3. Diversified better geographically
EV/EBITDA 2012e 4.8x 9.1x

4. Positioned more to farming Sales CAGR

18% 12%
(2009-13e)

Net Debt/EBITDA 0.9x 1.2x

Beta 0.95 1.09

Mkt Cap $3.4bn $24.5bn

As of 9th Feb 2012, Bloomberg, GAIA

37
 The End
38

Thank you for your attention!

 Appendix
39

Appendix items
 GWAF Valuation
40

GWAF Top 15 Valuation

GAIA WORLD AGRI FUND VALUATION TABLE

Company Price Mcap EV EV/S EV/EBITDA P/E

$ $ mn $ mn 2010 2011e 2012e 2013e 2010 2011e 2012e 2013e 2010 2011e 2012e 2013e
1 MHP 14.0 1,510 2,357 2.6 2.1 1.9 1.6 7.6 6.3 5.8 4.9 8.2 6.9 6.3 5.3
2 SLC Agricola 9.9 983 1,199 2.8 2.0 1.7 1.8 13.3 7.2 7.2 8.2 31.5 13.9 13.9 16.9
3 Americas Petrogas* 4.2 781 747 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
4 PhosAgro 10.5 3,891 3,964 1.6 1.2 1.2 1.1 5.9 3.2 3.7 3.8 11.2 5.3 6.0 7.1
5 Yara 44.9 12,918 12,823 1.1 0.9 0.9 0.9 7.0 4.7 5.4 5.6 12.5 7.5 8.5 8.6
6 Lonrho 0.2 261 312 1.7 1.1 0.6 0.5 30.9 9.7 5.0 3.6 n/a n/a 11.1 6.6
7 Mriya 6.0 636 731 2.5 2.4 2.1 1.5 4.6 4.7 4.1 3.0 4.4 5.7 4.9 3.3
8 Viterra 10.5 3,918 4,730 0.6 0.4 0.4 0.4 9.6 6.8 6.8 6.5 30.0 13.6 15.4 13.2
9 Olam International 2.2 5,324 10,308 1.4 0.9 0.7 0.6 25.0 16.1 12.9 10.8 29.2 18.9 15.9 12.6
10 Asian Bamboo 21.3 328 326 3.3 2.5 2.0 1.7 6.8 5.0 3.9 3.1 7.5 6.8 5.5 4.4
11 Mosaic 56.2 16,663 14,271 2.0 1.5 1.3 1.3 8.5 4.6 4.2 4.0 19.5 8.7 7.9 7.5
12 Sintal 1.7 55 71 2.2 1.5 0.8 0.8 5.5 3.0 2.3 2.3 5.5 3.1 2.2 2.2
13 Allana Potash* 0.8 170 117 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
14 Golden Agri Resources 0.6 7,636 7,918 2.7 1.6 1.6 1.5 13.3 8.0 7.7 7.1 21.5 12.3 11.8 10.8
15 Western Potash* 1.3 204 180 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Min 0.6 0.4 0.4 0.4 4.6 3.0 2.3 2.3 4.4 3.1 2.2 2.2
Max 3.3 2.5 2.1 1.8 30.9 16.1 12.9 10.8 31.5 18.9 15.9 16.9
Median 2.1 1.5 1.2 1.2 8.0 5.7 5.2 4.5 12.5 7.5 8.2 7.3
Average 2.0 1.5 1.3 1.1 11.5 6.6 5.8 5.2 16.5 9.3 9.1 8.2
Weighted Avg 1.7 1.3 1.1 1.0 9.3 5.4 4.8 4.4 12.4 7.1 7.5 6.9

Notes:
*Early stage companies; Americas Petrogas owns 80% of GrowMax Agri Corp. developing a potash fertilizer project in Peru
As of 9th Feb 2012, Bloomberg, GAIA
40
 GWAF Valuation
41

GWAF Top 15 Statistics

GAIA WORLD AGRI FUND VALUATION TABLE

Company Net Debt/ EBITDA Margin NI Margin Sales CAGR EBITDA CAGR NI CAGR Beta
EBITDA12e 2010 2011e 2012e 2013e 2010 2011e 2012e 2013e 2009-13e 2009-13e 2009-13e
1 MHP 2.1 34% 33% 34% 33% 20% 19% 20% 20% 20% 15% 16% 0.74
2 SLC Agricola 1.3 21% 27% 24% 22% 7% 12% 10% 9% 19% 35% 97% 0.84
3 Americas Petrogas* n/a n/a n/a n/a n/a n/a n/a 13% n/a n/a n/a n/a 1.49
4 PhosAgro 0.1 27% 37% 32% 30% 14% 22% 19% 16% 16% 22% 29% n/a
5 Yara -0.0 16% 20% 17% 17% 9% 12% 11% 11% 7% 28% 35% 0.96
6 Lonrho 0.8 6% 11% 13% 15% 0% 0% 5% 7% 44% n/a n/a 0.67
7 Mriya 0.5 53% 50% 51% 50% 49% 37% 37% 40% 26% 27% 24% 0.69
8 Viterra 1.2 6% 6% 6% 6% 2% 3% 2% 3% 15% 20% 21% 0.94
9 Olam International 6.2 6% 5% 6% 6% 2% 2% 2% 3% 29% 31% 33% 1.34
10 Asian Bamboo -0.0 49% 51% 50% 53% 44% 38% 36% 38% 25% 24% 18% 1.09
11 Mosaic -0.7 24% 32% 30% 31% 12% 20% 19% 20% 1% 6% 3% 1.22
12 Sintal 0.5 41% 49% 36% 36% 31% 37% 29% 29% 29% 27% 30% 0.46
13 Allana Potash* n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 1.85
14 Golden Agri Resources 0.3 21% 20% 21% 21% 12% 13% 13% 13% 26% 29% 34% 1.10
15 Western Potash* n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 1.70

Min -0.7 6% 5% 6% 6% 0% 0% 2% 3% 1% 6% 3% 0.46

Max 6.2 53% 51% 51% 53% 49% 38% 37% 40% 44% 35% 97% 1.85
Median 0.5 23% 30% 27% 26% 12% 16% 13% 14% 22% 27% 29% 1.02
Average 1.0 25% 29% 27% 27% 17% 18% 17% 17% 21% 24% 31% 1.08
Weighted Avg 0.9 21% 24% 22% 22% 14% 15% 15% 14% 18% 18% 25% 0.95

Notes:
*Early stage companies; Americas Petrogas owns 80% of GrowMax Agri Corp. developing a potash fertilizer project in Peru
As of 9th Feb 2012, Bloomberg, GAIA
41
 MOO Valuation
42

MOO Top 15 Valuation

MOO VALUATION TABLE

Company Price Mcap EV EV/S EV/EBITDA P/E

$ $ $ 2010 2011e 2012e 2013e 2010 2011e 2012e 2013e 2010 2011e 2012e 2013e
1 Monsanto 77.3 41,409 39,954 3.8 3.5 3.1 15.8 13.3 11.3 10.2 30.9 26.6 21.9 18.9
2 Potash Corp 46.2 39,637 42,783 7.2 5.0 4.9 4.6 14.7 8.8 8.5 8.3 21.6 12.5 12.1 11.8
3 Deer 87.9 35,531 57,567 2.4 1.9 1.7 1.6 16.7 13.1 11.0 10.6 18.3 12.9 11.2 10.7
4 Syngenta 325.5 30,519 31,159 2.7 2.3 2.2 2.1 12.8 10.8 9.8 9.1 21.1 16.9 15.2 13.8
5 Wilmar 4.6 29,241 40,701 1.4 1.0 0.9 0.8 20.1 15.7 13.6 12.5 21.2 17.6 14.8 13.3
6 Archer-Daniels-Midland 30.8 20,345 26,820 0.4 0.3 0.3 0.3 8.1 6.9 8.1 7.0 11.1 9.3 11.8 10.3
7 Mosaic 56.2 16,663 14,271 2.0 1.5 1.3 1.3 8.5 4.6 4.2 4.0 19.5 8.7 7.9 7.5
8 Agrium 83.5 13,173 14,129 1.4 0.9 0.9 0.9 10.3 5.7 5.8 6.0 17.6 8.9 9.1 9.4
9 Yara 44.9 12,918 12,823 1.1 0.9 0.9 0.9 7.0 4.7 5.4 5.6 12.5 7.5 8.5 8.6
10 Brasil Foods 19.0 16,586 18,504 1.4 1.2 1.2 1.1 13.5 9.7 8.5 7.4 43.5 16.3 14.6 12.2
11 Kubota 9.7 12,422 15,315 1.3 1.2 1.2 1.1 10.3 9.0 9.0 8.4 18.5 16.2 16.2 14.1
12 CF Industries 187.4 12,254 12,846 3.2 2.1 2.2 2.4 10.0 4.2 4.4 5.3 25.3 7.8 8.2 10.4
13 IOI Corp 1.9 11,948 12,676 2.8 2.4 2.2 2.1 14.8 12.3 12.5 11.7 21.3 16.5 16.9 15.8
14 CNH Global 43.9 10,534 16,204 1.1 0.9 0.8 0.8 12.7 8.6 7.7 7.3 27.9 11.7 10.2 9.3
15 Kuala Lumpur 8.5 9,042 9,088 3.9 3.0 2.6 2.4 18.2 13.3 12.1 11.5 29.3 20.2 18.6 17.9

Min 0.4 0.3 0.3 0.3 7.0 4.2 4.2 4.0 11.1 7.5 7.9 7.5
Max 7.2 5.0 4.9 4.6 20.1 15.7 13.6 12.5 43.5 26.6 21.9 18.9
Median 2.0 1.5 1.3 1.2 12.8 9.0 8.5 8.3 21.2 12.9 12.1 11.8
Average 2.4 1.9 1.8 1.6 12.9 9.4 8.8 8.3 22.6 14.0 13.1 12.3
Weighted Avg 2.7 2.1 1.9 1.5 13.4 9.9 9.1 8.6 22.4 14.6 13.5 12.5

As of 9th Feb 2012, Bloomberg, GAIA

42
 Farming Valuation Charts
43

Current EV/ha under control, USD/ha

7,916
8,000

7,000

6,000

5,000

4,000
3,114
2,754 2,776
3,000 2,177 2,218
2,087 2,093
2,000 1,531
1,132 1,050 819
1,000 543 460 364

0
Mria
Trigon Agri

RosAgro
Agrogeneration
BEF

Sintal
MCB Agricole

Alpcot Agro

KSG Agro
Agroton
Astarta
MHP

Industrial Milk Co
Razgulay
Russian Grain

Notes:
1) Rose color - sugar producers
2) Green color- meat producer
3) Blue color - grain producers
As of 31st January, 2012
4) Mriya has exposure to sugar but sugar plants are not consolidated to the Holding; Sintal has small sugar exposure Companies, Bloomberg, GAIA,
 Farming Valuation Charts
44

Current EV/ha harvested

2011, USD/ha Land harvested in 2011, ths ha
9,000 MHP; 250

7,500

6,000

4,500

Mriya; 240 RosAgro; 349

Russian Grain; 57
3,000
Agrogeneration; 47 Astarta; 240 Razgulay; 338

KSG Agro; 53 Trigon Agri; 92

BEF; 231
1,500 Industrial Milk Co; 57
Agroton; 134 Alpcot Agro; 92
Sintal; 83
MCB Agricole; 83
0
0 50 100 150 200 250 300 350 400 450 500 550 600
Current Land Under Control, ths ha (lease and ownership)

Notes:
1) Rose color - sugar producers
2) Green color- meat producer
3) Blue color - grain producers As of 31st January, 2012
4) Bubble size is land harvested in 2011, ths ha Companies, Bloomberg, GAIA,
 Farming Valuation Charts
45

Current EV/storage
capacity, USD/t Grain Storage Capacities, ths tones
6400.0
MHP; 350

5400.0

4400.0
RosAgro; 285

3400.0

2400.0
KSG Agro; 55 Astarta; 360

Arogeneration; 75 Mriya; 410

1400.0
Russian Grain; 470 Trigon Agri; 322
Industrial Milk Co; 209 BEF; 465
Agroton; 235 Razgulay; 1,900
400.0
Alpcot Agro; 255 Sintal; 215

0 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 425 450 475 500 525 550 575 600 625
-600.0

Current Land Bank Under Control, ths ha (lease and ownership)

Notes:
1) Rose color - sugar producers
2) Green color - meat producer
3) Blue color - grain producers
As of 31st January, 2012
4) Bubble size - grain storage capacities, ths t Companies, Bloomberg, GAIA,
 Farming Valuation Charts
46

CIS LATAM

Median size, ha 179,000 Median size, ha 290,450

Median EV/ha 2,087 Median EV/ha 4,090

EV/ha, USD/ha EV/ha, USD/ha

Trigon Agri 1,132 Cosan Ltd 13,330
MHP 7,916 SLC Agricola 3,548
Astarta 2,754 Sao Martinho 14,268
BEF 1,050 Brasil Agro 1,924
MCB Agricole 543 Cresud 2,512
Russian Grain 2,177 Adecoagro 4,631
Mriya 3,114
Sintal 460
Razgulay 2,087
Alpcot Agro 364
Agrogeneration 2,093
Agroton 819
RosAgro 2,776
KSG Agro 2,218
Industrial Milk Co 1,531
As of 31st January, 2012
Companies, Bloomberg, GAIA,
 Equities vs. underlying Ags
47

Futures curves are in backwardation

Demonstrates the volatility and hurdles to physicals investing

 Agri land as an asset class
48

Land fundamentals

Source: Adecoagro
 Farming gaining momentum
49

Large scale farming gaining momentum:

recent movements

 AdecoAgro IPO: The largest farmland holding in South America with

approx. 300K ha raised $314.3 mln through IPO in Jan-2011

 RusAgro IPO: Leading diversified Russian agri producer with 355K ha of

land under management raised $330 mln through IPO in April-2011

 Ukrlandfarming planned IPO: Ukrainian non-public agri holding of

500K ha is preparing to IPO in 2012/2013