Russia Baltic Pork Invest AS

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1 Russia Baltic Pork Invest AS Probably the most efficient large scale pig producer in the world 16 th January 2014

2 Presentation Thomas Norgaard, 41 Farmer in Denmark since 1994 Chairman of RBPI in the period CEO of RBPI since 2012 Member of B2B Bonus Board member in B2B Bonus CEO of Bonus Baltic Invest AS who owns 682,211 shares in RBPI

3 RBPI best in class in the best of markets RBPI was founded in 2004 and established its first pig farm in Kaliningrad in 2007 In Kaliningrad, the farm houses 6,200 breeding sows of Danish origin (mainly Landrace and Large White hybrids) Full pig production of approximately 190,000 pigs p.a. is estimated to be reached in 2013 (160,000 pigs in 2012) The Company consistently outperforms peers in terms of efficiency and enjoys profit margins (EBITDA) of approx. 50 percent RBPI is expanding its operations to mainland Russia and is planning to establish an additional three pig farms in Nizhny Novgorod and Penza up until 2016 KALININGRAD SITE

4 Company Summary Modern and environmental based in Kaliningrad Qualified personnel Scandinavian experience and training Operating in accordance with Russian laws and European production principles High standards of integrity RBPI contributes to the development of the local economy, creating attractive and stable working places with 90% of our employees coming from the local community.

5 Organisation Management and administration is based in Kaliningrad Key operational management roles are held by Danish expatriates The Company s organisation is divided into five main areas of operations; pig production, grain production, construction, administration and sales Development Anders Jakobsen Personal assistent and Scand Finance Berit Aagaard Shareholders Chairman of Board CEO Thomas Nørgaard HR Yaroslava Vaytekute Niznhy Novgorod Pig Production and Logistic David Nielsen Grain Production and Service Linne Fromm- Christiansen Construction Per Holst Group Finance Olga Vereshchagina RBPI employs approx. 160 people; Pig production: 85 people (incl. 4 drivers and 5 employees in the feedfactory) Grain production: 30 people Service team: 24 people Administration: 18 people Sales Team: 2 People Construction: 8 people Group Sales Olga Koroleva

6 Existing operations - Kaliningrad GRAIN FEED PIGS RBPI controls approximately 10,000 ha of agricultural land including the relevant required equipment. RBPI takes manure from pig farm as fertilizer for crop production 5 km In-house feed factory ensures highest possible feed quality and tailor made feed mixes. There is different feed for every sub-unit to maximize the breeding process. In total there are seven different recipes produced from the grains harvested on the Company s own fields RBPI has a multi-site farm with 4 remote production areas: Boar and Sow units, Piglet and Fatteners sites with a total capacity of 6,200 sows corresponding to a productions capacity of 190,000 slaughter pigs per year Piglet site Fattener site Fodder factory Boar site (Quarantine) Sow site

7 Plant Production Control of whole production chain = quality Based on the Danish model Grain production control is important = high health standards and high weight gain Land is owned or secured on long term leases often with a right to purchase

8 State of the art equipment Feed Factory Production capacity of 12 tons of feed per hour Fodder consists of the grain, harvested from the Company fields with addition of proteins, milk products, vitamins and mineral premixes

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10 Pig Production High quality breeding pigs imported from Denmark The Danish pig farming industry is known for: Energy-saving technologies Environmental friendly production Humane attitude towards animals Resulting in tasty and healthy meat The pig farming is based on a four site concept: Boar farm, Sow farm, Piglet farm and Finisher farm

11 82 boars 6200 sows, each producing 33 slaughter pigs per year (outperforming peers) Pig Production 16 Live born/sow per birth cycle Automated feeding, heating, ventilation, manure removal European environmental Standards - centralized manure collection in closed lagoons with minimum emissions Long distances between the farms considerably reduce the risk of spreading deceases All pig production sites are equipped by the modern automatic production control and management systems

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13 Key Figures Efficiency November 2013 October 2013 September 2013 Weaned pr. year sow 33,5 32,4 31,3 Daily weight gain 7-30 kg Daily weight gain kg Year sows

14 Key Figures Income statement, NOK thousand Total revenues Operating expenses EBITDA ,9% ,8% EBIT Net financial items Net profit ,5% ,7% Balance sheet, NOK thousand Total assets Net debt Total equity Key figures Number of shares Total number of employees Average number of sows Total number of pigs sold Sold pigs per yearsow 28,0 29,0 Land, hectares Ratios Earnings per share (EPS), NOK 10,17 23,72 Return on assets (ROA) 7,1% 11,4% Return on equity (ROE) 14,8% 29,7%

15 Sales Department Russian meat/ poultry trading companies Meat processing plants Live pigs Half carcasses Slaughterhouses Retail chains

16 Farm Construction Specialist in design and permissions 8 persons Engineers Building with subcontractors Optaining permits Construction management

17 Pork market The pork consumption accounts for approximately 40% of total meat consumption on a global basis Global meat consumption as well as production is estimated to increase going forward A total 2.7 million tons of pork is forecasted to be consumed in Russia during 2012 The domestic meat industry is forecasted to produce a total of 2.0 million tons of pork in 2012 The Russian pork consumption is estimated to increase by approximately 30 % in total from 2010 to 2020 and 35 % per capita in the same period Industry Highlights Market drivers and competition The market for pork production in Russia is highly fragmented o o No producer accounts for more than 10% of the total production volume 500 There is a very small number of large production facilities Competition primarily consists of local producers o There are few companies that have the capacity to sell their products in the entire domestic market Indicators for the Russian pork market Consumption (LHA) 1,000 tons Total Production (LHA) 1,000 tons Per capita (RHA) kg The Russian market is characterised by a lack of local supply of fresh meat relative to consumption Several factors contribute to the development of the pork market including growing demand, product development, resource pressures, industry modernisation and trade restrictions

18 Market opportunities

19 Expansion strategy A winning concept set to grow RBPI has continuously evaluated expansion opportunities since early 2010 The Company has decided to expand operations into mainland Russia. As the Kaliningrad facility was established as a green field operation, the Company s management has gained extensive experience from that construction and ramp-up process The operations in Kaliningrad have proven very successful The Company will leverage on the Kaliningrad success going forward by multiplying the concept in mainland Russia Benefits from establishing operations in mainland Russia include access to low cost grain for feed By establishing the Kaliningrad site many valuable lessons were learned including: The availability of infrastructure The timeframe of obtaining construction permit, electricity, VAT refund, permit for exploitation etc The availability of grain and land for growing grain and utilization of the manure That the availability of an already skilled labour force is not crucial RBPI has established several potential sites in mainland Russia Kaliningrad Penza Nizhny Novgorod The successful concept in Kaliningrad will be implemented in other locations, driving growth

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22 Shareholders The shareholders in RBPI until the 9 th December 2013: The shareholders in RBPI after transaction 9 th December 2013: 28 % - CapMan Russian Fund (nominee account: HSBC Bank PLC) 25 % - Bonus Baltic Invest A/S 10 % - FSV Invest ApS (Svenningsen family) (nominee account: Danske Bank A/S) 35,2 % minority shareholders The founder of RBPI: 1,8 % - Knive Holding AS, Knut Langeteig 69,7 % - CPF Investment Ltd. 19 % - Bonus Baltic Invest A/S 11,3 % - 94 minority shareholders