Annual Grower and Adviser update August 2017 1 Managed by: - PowerPoint PPT Presentation

Managed by: RFM Almond Funds (AF06, AF07 & AF08) Annual Grower and Adviser update August 2017 1

Managed by: Disclaimer RFM AFSL 226701 as Responsible Entity (RE) for RFM Almond Fund 2006 (ARSN 117 859 391), RFM Almond Fund 2007 (ARSN 124 998 527) and RFM Almond Fund 2008 (ARSN 127 947 960), has prepared this presentation based on information available to it. Although all reasonable care has been taken to ensure that the facts stated and opinions given in this presentation are fair and accurate, the information provided in this presentation has not been independently verified. Accordingly, no representation or warranty, expressed or implied is made as to the fairness, accuracy, completeness or correctness of the information and opinions contained in this presentation. Whilst RFM has taken all reasonable care in producing the information in this presentation, subsequent changes in circumstances may occur at any time and may impact on the accuracy of the information. Neither RFM or its directors or employees guarantee the success of the Funds including any return received by Growers in the Funds. The information contained in this presentation is by way of general summary only and has been prepared without taking into account any person’s individual objectives, financial situation or needs. Before making any decision to invest a person should consider the appropriateness of the information to their individual objectives, financial situation and needs and if necessary seek advice from a suitably qualified professional. Cover image: RFM Management assessing almonds, Mooral almond orchard, Hillston, NSW, December 2016 2

Managed by: Agenda 1. Grower and Adviser update RFM presenters – FY17 harvest overview Andrea Lemmon Executive Manager, Funds Management – FY17 unaudited results – FY18 cash flow estimates Daryl Winter National Manager, – Industry update Almonds – Key projects & conclusion 2. Appendix James Powell Investor Relations & Distribution Manager – Almondco Riverina processing facility 3 3

1 Grower and Managed by: Adviser update Mooral almond orchard, Hillston, NSW, December 2016

Managed by: FY17 Harvest overview Yields were lower in 2016 following the substantial 2015 crop of 4.2+ tonnes/hectare (ha) Almond Fund 2006 2007 2008 Project year 9 8 7 2015 2015 yield - t/ha 4.18 4.34 4.28 FY16 almond price - ($/kg) $11.26 $11.27 $11.28 Project year 10 9 8 2016 2016 yield (for FY17 result) - t/ha 2.67 3.00 3.13 FY17 almond price - ($/kg) $7.44 $7.43 $7.40 Key observations for the FY17 crop and harvest: • – Biennial bearing nature of almonds resulted in a lower crop for all varieties – Yields also impacted by inclement weather during flowering and pollination 5

Managed by: FY17 Grower position (pre-adjustments) Lower yield (biennial bearing) has contributed to a negative cash flow for FY17 Almond Fund 2006 1 2007 1 2008 1 Harvest proceeds from 2016 crop $4,959.69 $4,806.87 $5,001.30 Interest revenue $32.33 $19.85 $18.86 Less: Management Fee ($216.03) ($228.72) ($228.72) Licence Fee ($1,480.86) ($1,322.97) ($1,322.96) Operating Costs (excl. GST) ($4,085.80) ($3,406.18) ($3,556.30) FY17 invoice per Grove (excl. GST) ($790.67) ($131.16) ($87.82) GST ($553.52) ($470.42) ($485.65) FY17 invoice per Grove (inc. GST) ($1,344.19) ($601.58) ($573.47) Note: 1. Figures are unaudited and therefore estimates only 6

Managed by: FY17 Grower adjusted position RFM will provide 12 month funding for the FY17 invoice, adjusting for GST refund. Growers will be in a neutral cash flow position, after receiving the GST refund Almond Fund 2006 1 2007 1 2008 1 Shortfall: FY17 total per Grove (inc. GST) ($1,344.19) ($601.58) ($573.47) Paid by: RFM (to provide 12 month funding) (excl. GST) ($790.67) ($131.16) ($87.82) RFM (to provide 12 month funding) (GST) ($79.07) ($13.12) ($8.78) Grower invoice for GST ($474.46) ($457.30) ($476.87) Grower position: Grower invoice for GST ($474.46) ($457.30) ($476.87) GST refund $474.46 $457.30 $476.87 Grower position after GST refund ($0) ($0) ($0) Note: 1. Figures are unaudited and therefore estimates only 7

Managed by: FY18 cash flow estimate RFM will deduct the FY17 shortfall which includes the RFM funding from the FY18 distribution Almond Fund 2006 2007 2008 2017 crop estimated yield - t/ha 3.74 3.92 3.77 Estimated almond price - ($/kg) $7.20 $7.20 $7.20 Cash flow estimates per Grove: Estimated harvest proceeds from 2017 crop $6,239.78 $5,647.70 $5,439.86 ($5,344.38) ($4,787.59) ($4,729.38) Budgeted operating expenses (excl. GST) FY18 invoice estimate per Grove (excl. GST) $895.40 $860.11 $710.48 Carried forward FY17 shortfall (excl. GST) ($790.67) ($131.16) ($87.82) FY18 invoice estimate per Grove including $104.73 $728.95 $622.66 shortfall GST ($613.50) ($491.88) ($481.72) GST refund $613.50 $491.88 $481.72 Estimated Grower FY18 position after GST refund $104.73 $728.95 $622.66 Note: 1. Figures are unaudited and therefore estimates only 8

Managed by: Timeline Growers are strongly encouraged to seek advice about claiming their GST refund. RFM is not a licensed taxation adviser GST reporting frequency Event Date and corresponding reporting date Invoices dispatched 11 September 2017 Monthly Quarterly Annual Latest payment date for first 21 October 28 October Tax return 2 30 September 2017 quarter GST reporting Final payment due date 31 October 2017 GST reporting date (assumes Grower is submitting an activity 28 October 2017 statement quarterly on a cash basis) 1 • For Growers who wish to change from an annual activity statement to quarterly, the Grower will need to contact the ATO on 132 861. The deadline to make changes is 28 October 2017 • The ATO generally process GST refunds reasonably promptly • RFM will contact defaulting Growers after the payment due date of 31 October 2017 as accounts must be maintained in good order for ongoing scheme participation • Reminder – You must pay your invoice in order to remain a scheme member. RFM is not funding the amount equivalent to the GST refund Notes: 1. The GST submission date reflects the deadline for submitting the activity statement under each reporting frequency. Depending on your situation, you may only be able to claim the GST refund back once the invoice has been paid. If so, the GST submission date may be the following reporting period based on your situation 2. The GST submission date for an annual return is the same date as the lodgment of your income tax return, or 28 February following the annual tax period 9 if you are not required to lodge an income tax return

Managed by: Industry update – production Australian almond production (2010-2020f) 1 Key statistics from the 2016 Australian season 1 2016 production of 82,333 tonnes • Australia produced 7.7% of the global crop to • remain the world’s second largest producer behind the USA (80% of world production) Orchard area planted to almonds increased by • 15.8% or 4,904 ha in 2016 to total 35,886 ha Almond production in the NSW Riverina Orchard plantings have doubled over the 2010-17 • period in the NSW Riverina 2 The NSW Riverina has grown to represent 15% of • 2016 orchard area planted to almonds (ha) 1 the national plantings and continues to expand 2 New Almondco hulling and shelling facility located • at Griffith to meet increased processing demand (see appendix for further information) Notes : 1. Source: Almond Insights (2016-17), Almond Board of Australia 2. Source: Various Almond Insights (2010-17), Almond Board of Australia 10

Managed by: Industry update – price and outlook Global almond price 1994-2014 (USD) 1 Californian almond industry In April 2017, the five year • drought in California lifted, with a deep snowpack and flooding rains in winter The initial USDA 2017 subjective • crop estimate for the US was 1 million tonnes (increase on 2016 crop by 3%) Outlook Indian and Chinese • consumption contributing to demand growth Almonds remain a possible • substitute product for walnuts, cashews and pistachios due to relative pricing Note : 1. Source: American Almond Board 11

Managed by: Industry update – price and outlook Almond price 2005 – 2017 (AUD) 1 Price Current prices remain at similar levels to 2016 prices • The 10 year average price is now $7.74/kg, on a domestic market pricing guide basis (see note) • Prices for 2016 crop will be between $7.40/kg and $7.44/kg • Note : 1. Data sourced from Almondco. Average almond price is calculated using the $US average price data for Nonpareil, Carmel and Price 23-25 almonds per ounce category almonds, converted into AUD Almond prices are based on the average monthly Landed Price (Import Parity). Prices are a "domestic" market pricing guide only and may not reflect actual market conditions. Exchange rate used is the average AUD v USD rates based on average FX rate from 15th day of each month to the 15th day of the next month 12