BXR in Africa March 2013

1. BXR in Africa March 2013

2. BXR Group BXR Group Introduction BXR – Existing Operations 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 • 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 Selected investments: Oil & Gas Transport Agriculture Real Estate Other Mining Viking Int’l

3. BXR Agro BXR Agro – Existing Operations • BXR 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

4. Malawi Mangoes: Agro-Processing Investment Case Study

5. Malawi Mangoes – Introduction • Company 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

6. 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

7. Malawi Mangoes – Why Malawi? • 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

8. Malawi Mangoes – Taking the Project Forward • Processing 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

9. 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

10. The Fruits of Effective Investment Irrigation project costing $2,500 Transforming the lives of 700 families in Malawi A $2,500 irrigation project Transforming the lives of 700 families in Malawi