Feast or Famine - money is cheap but no one will lend it…

F E A S T O R F A M I N E

Show me the money….

• Australia is suffering from a lack of alternative capital

• Regulation is challenging the traditional structure of finance in agriculture

• Royal Commission, APRA change, International Banking regime (Basel III & IV)

• Capital market or return opportunity sends a messageto the market of where capital needs to be directed

• The traditional sole finance relationship between a farmer/trader/asset operator and their bank is being challenged

Todays investment opportunity

is not ownership of assets

but rather finance to support

the farmer, the infrastructure provider

or trading house

"One thing I've learned from my short time trying to be a farmer is that our farmers have to be the bravest, most optimistic people in the world.”

Sara Henderson – The Strength in Us All• Running farms from Collins St. (let alone 5th Avenue) is

very difficult

• Traditionally offshore investors have been focused on land or hard asset acquisition

• The new credit environment is creating an alternative investment opportunity to support the agriculture sector and earn solid returns

• Investor capital is usually equity unlike banks that are 17 times leveraged allowing investors a more liberal risk taking perspective

F E A S T O R F A M I N E ?

Australia….?!

3

F E A S T O R F A M I N E ?

Types of Alternative Investments

• Financing of Inventory

• Financing of Farms

• Financing of Trade Flow

• Financing of Hard Asset & Infrastructure

• Provision of alternate Over the Counter risk management product

F E A S T O R F A M I N E ?

Specific Opportunities

• Farmers - Dairy Farm & Cattle lending

• Exporter accumulation - Grain trade flow financing

• Co-op funding - Irrigation/Power infrastructure

• Construction finance - Poultry shed financing

• Over the counter hedging - “hamburger swaps”

ContactLevel 18, 90 Collins StreetMelbourne, Victoria 3000 AustraliaPhone +61 3 8319 8111

Adrian RedlichChief Executive Officer

Adam DavisHead of Commodities

Contacts

Thankyou