BXR in Africa

March 2013

BXR Group

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• Today the group has a diverse range of global interests and an established track record of accessing the international debt and equity capital markets for large and high profile transactions

Mining Oil & Gas Transport Agriculture Real Estate Other

•Viking Int’l

• BXR Group, headquartered in Amsterdam, Netherlands, is an international private investment group with a 15 year track record of superior investment performance across a variety of industry sectors

BXR – Existing OperationsBXR Group Introduction

Selected investments:

BXR AgroBXR Agro Introduction

• BXR Agro looks to acquire and develop agricultural properties as part of an expanding worldwide portfolio of land

• BXR Agro seeks to address the increasing demands of a growing global population through:

• Introduction of modern farming techniques

• Land development and soil correction

• Creation of efficient operations of scale

• The approach looks to be always sustainable and sensitive to the needs of local communities

On-going Development• BXR Agro continues to grow its portfolio over:

• Diverse regions: Latin America, Southern & Eastern Africa, and Eastern Europe

• A range of commodities: soybean, corn, sunflower, cotton and wheat as well as fruits and livestock

• BXR Agro partners with local and international farmers and investors in its efforts to establish an effective, considered and well-integrated supply chain to feed both growing and established markets

Current Investments

Description

12,000 Ha cotton, corn and soybean operation in Western Bahia, Brazil

60,000 Ha agricultural land transformation company in Argentina

A fruit producer in Malawi developing pulp processing capacity

28,000 Ha of oilseed and grain concessions in Mozambique.

BXR Agro – Existing Operations

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Malawi Mangoes: Agro-Processing InvestmentCase Study

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Malawi Mangoes – IntroductionCompany Background

• Malawi Mangoes is a fruit producer growing mangoes and bananas which has:

• Developed a 130 Ha plantation and nursery 7km from Lake Malawi

• Planted 50,000 mango and 100,000 banana plants

• In the nursery – 150,000 mango saplings, 60,000 banana plants

• Installed a hi-tech drip Jain irrigation system (the first of its kind in Malawi)

• Established a network of thousands of smallholders to supply high-value fruit

Recent Investment

• BXR became the majority shareholder in 2013

• Its investment will be used to:

• Irrigate and cultivate a further 1,000 Has of farmland

• Develop a substantial processing facility near Salima

Hopes for the Future

• Once complete, Malawi Mangoes hopes to sell long-life fruit pulp to international markets

• Potential customers include Pepsi, Coca Cola, and Innocent Smoothies

• Great potential to create a large number of jobs, boost the local economy and demonstrate the benefits of investment in Malawi

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Malawi Mangoes – Why Mangoes?Mangoes…

• Strongly growing global demand for certain mango strains

• Demand is being driven by growing popularity of :

• Smoothies and other fruit flavoured soft drinks

• Baby food products (often have fruit as a base)

• India, the world’s largest producer of mangoes, is forecast to become a net importer in the near future

And Bananas…

• Banana is a key component of most smoothies and common in baby food

• Whilst mango has only a 3-4 month harvest season, banana crops year round

Combining both:

• Demand increasing for both fruits in:

• Health-conscious developed markets

• Developing markets with emerging consumer class

• Growing both will enable Malawi Mangoes to run its processing facility and farm at optimum capacity year round

• Being able to supply customers with a diversified product offering is preferable

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A country with great potential:

• BXR Group is optimistic for the future of Malawi: once visited, never forgotten

• Excellent engagement by Malawi Mangoes with the Malawi Government and local businesses

• Malawi Mangoes represents another step in the development of BXR Group’s agricultural portfolio and African strategy

• Foreign Direct Investment in Malawi currently limited, but realisation of successful projects should encourage others and build up necessary momentum

• Major foreign exchange generation possible with more projects targeting foreign trade

• Important for Government to provide attractive fiscal environment for foreign investors and to make land available

Substantial improvements possible from investment:

• Large unemployed rural population eager for jobs

• Lake Malawi an exceptional fresh water resource, but needs investment in irrigation to establish certain agricultural operations

Climate:

• Mangoes are naturally well suited to the climate around Lake Malawi : ~4m mango trees

High fruit wastage currently:

• ~85% of the fruit is wasted each year

Malawi Mangoes – Why Malawi?

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Malawi Mangoes – Taking the Project ForwardProcessing capacity:

• Increased in-country processing facilities will be the answer

• Once processed and sealed in asceptic bags, fruit pulp can be kept for 12-18 months at ambient temperatures

• Opens up the opportunity to sell to international African, European and further overseas markets

• Malawi Mangoes is constructing a substantial processing facility near Salima

Grafting higher value mango strains:

• Local Malawian mango varieties are not much in demand for international markets

• Malawi has had success in grafting higher value strains such as Tommy Atkins onto local root stock

• Malawi Mangoes is now not only grafting its own new plantation, but mature trees belonging to local smallholders

Smallholder engagement:

• The grafted trees will fruit sooner thanks to their developed root systems

• Local smallholders have the opportunity to work with Malawi Mangoes to convert trees producing fruit with very limited value, to high value trees that can sell their fruit for processing

• Malawi Mangoes is working with thousands of local farmers to create real future income generating opportunities

New farm:

• To reach sufficient scale, Malawi Mangoes will need to develop a further 1,000 Ha

• The company continues to search for a suitable area then looks forward to taking the project through this next step

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Malawi Mangoes – Vision for the Future

Top class supplier:

• A key problem for fruit pulp consumers has been securing reliable supply

• Malawi Mangoes aims to excel in all aspects to attract customers

• By having its own farm to supply the processor, Malawi Mangoes will establish a reliable ethical supply chain

• The company already employs farming practices approved by the Rainforest Alliance

• It will source 20% of fruits from local smallholders

Great development possibilities:

• Malawi Mangoes is investigating the potential to introduce premium variety pineapples

• Other products could include dried banana chips, and mango strips (highly in demand in the local African markets as well as the Middle East and China)

A significant fruit pulp producer serving international markets and benefitting local communities:

• There are few to no precedents for such an operation in Malawi

• Malawi Mangoes will have to overcome infrastructure, transport and logistical difficulties

• Appropriate financing for working capital and further capex is less accessible

• Alongside foreign investment, it will take continuing local support from local smallholders to government bodies for Malawi Mangoes to succeed

• Malawi Mangoes is ready to face the challenges confident in the goals shared with Malawi

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The Fruits of Effective Investment

A $2,500 irrigation project

Transforming the lives of 700 families in Malawi

Irrigation project costing $2,500

Transforming the lives of 700 families in Malawi