BUILDING THE LARGEST DAIRY FARM IN EUROPE

Press Conference, 11 April 2012

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The single largest dairy farm in the EU to be built in

Estonia by Trigon Dairy Farming

Key Highlights

This farm aims to be one of the global leaders in

environmentally friendly large-scale dairy farming

The farm is planning to apply a cutting edge

integrated business model:

cereals, milk, biogas CHP, organic fertilizer, large-

scale fish and vegetables farming

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3

1

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Väätsa/Kaiu Development Plan

TDF will develop the single largest mega-farm in the EU with over 4,000 milking cows

• By combining and expanding Väätsa

and Kaiu farms we plan to create the single largest industrial scale dairy

farm in the EU

• Over 8,000 dairy animals (4,000 milking cows and 4,000 young-stock)

• Integrated dairy and crop farming with farmed land of over 6,000 ha

• Up to 80% self-sufficiency in animal

feed production from own farmland

• Over EUR 20 million in new

investments planned

• In 5 years, this farm alone is planned

to produce 48 million kg of milk every year (i.e. equal to 7% of Estonian

raw milk production)

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Environmental Sustainability

• Agriculture is one of the largest sectors

contributing to global warming

• Our on-farm biogas plant would capture methane gases to produce electricity, heat

and environmentally friendly organic fertilizer

• Globally unique large-scale integrated fish and

vegetables farming to fully utilize the heat

• The largest modern on-farm biogas

plant in the Nordic and Baltic region

• 3 MW biogas CHP plant planned in Väätsa/Kaiu

Full agricultural waste recycling through a modern biogas CHP technology

Source: Agentur für Erneuerbare Energien

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Example On-Farm Biogas Plant

So

urc

e:

Sch

au

man

n

500 kW plant in Gut Hülsenberg, Germany

Väätsa/ Kaiu plant to be six times larger

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Environmental & Social Responsibility

Our aim is to be among the global leaders in

environmentally sustainable large-scale milk production

Environment

Own feed production, selected use of seeds & fertilizers,

waste-to-power conversion, limited environmental impact

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Personnel

Each farm has a dedicated team of farming experts with

competitive compensation plans

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Animal Welfare

Housed farm systems have shown improved fertility, better

nutrition control and a general improvement in animal welfare (UK National Farmers Union)

2Technology

Our farms employ automated milking parlours and

computerized herd monitoring systems

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Source: Helsingborg

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TDF Today

A fast-growing industrial-scale milk producer

operating in Estonia and Russia with socially responsible farming methods

Karla

650 cows

Kaiu / Väätsa

2,300 cows Dobruchi

850 cows

• 4,000 milking cows

• 8,700 ha of farmland cultivated

• 28 million kg of annual high quality milk output

• Best cows producing up to 15,500 kg annually

2011 pro-forma results

• Revenue 13 mln EUR / EBITDA 3.3 mln EUR / Assets 35 mln EUR

• TDF goal is to expand its operations to ca. 11,000 milking cows over the next 3-4 years

• As previously announced TDF is in talks

with external equity investors about

increasing its share capital

As of April 2012

Source: Progressive Dairy Solutions

ESTONIA

LATVIA

RUSSIA

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Our Track Record: Kaiu Farm

• In 2006, we acquired an outdated Soviet-style collective farm which was in the bottom quartile for productivity

• Invested in farm modernization and automation

• Highly experienced team of dairy farmers

• Now produces the highest quality raw milk sold at above-market prices

• Aim to achieve yields of 12,000 kg

We have already built the 2nd most efficient large-scale dairy farm in Estonia

6,060

6,8607,220

8,440

9,430 9,530

5,000

6,000

7,000

8,000

9,000

10,000

11,000

2006 2007 2008 2009 2010 2011

+9% p.a.

10,4

00

9,5

30

9,5

00

14,0

00

13,3

00

13,3

00

11,8

00

13,5

00

12,5

00

6,000

8,000

10,000

12,000

14,000

Po

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Ka

iu

Tart

u

Ca

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a

Re

fet G

alil

Alm

ara

i

Al S

afi

Sp

ring G

rove

Cra

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airy

Estonia Israel S.Arabia U.S.

Further Yield Improvements AchievableProven Farm Turnaround Experience

Selected best-yielding large-scale farms (kg/cow)

Sources: PRIA, Public sources

Milk Yield (kg/cow)

+30-50%

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Global Dairy Trends

Global dairy demand will grow

25% by 20201Global supply imbalances are to

increase dairy trade by 15%2 Positive outlook for milk prices3

Source: OECD-FAO Agricultural Outlook 2011-2020

India46

China40

R of Asia19

S America

17

MENA13

N America

11

R of Africa

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Europe6

Dairy Demand Growth in 2010-20F (mln tonnes)

TOTAL GROWTH160 mln t

1995 2000 2005 2010 2015 202020

25

30

35

40

45

World Dairy Product Exports (mln tonnes of milk equivalents)

1990 1995 2000 2005 2010 2015 20200

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Whole Milk Powder Price (USD/t)