Company Presentation April 2013
Agriterra is a rapidly growing London-listed pan- African agricultural company with established beef, cocoa production, fruit orchards and trading, maize farming and processing. 2 | AGRITERRA LIMITED | APRIL 2013
DISCLAIMER This presentation (‘the Presentation’) relating to Agriterra Limited (‘the Company’) does not constitute or form part of, and should not be construed as an offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for any securities in the Company in any jurisdiction. Neither this Presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on in any connection with or act as an inducement in relation to a decision to purchase or subscribe for or enter into any contract or make and other commitment whatsoever in relation to any such securities. In particular, details included in this Presentation are subject to updating, revision, further verification and amendment and refer to events as having occurred which have not occurred at the date of this Presentation but which are expected to happen in the future. This Presentation does not constitute a recommendation regarding the securities of the Company. The contents of this Presentation are confidential and may not be copied, distributed, published or reproduced in whole or in part, or disclosed or distributed by recipients to any other person. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this Presentation or on its completeness, accuracy or fairness. No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of their affiliates, respective directors, officers, employees, agents or advisers as to the accuracy, completeness, or fairness of the information or opinions contained in the Presentation and no responsibility or liability is accepted by any of them for any such information or opinions. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates or forecasts and nothing in this Presentation is or should be relied on as a promise or representation as to the future. This Presentation is exempt from the general restrictions in section 21 of the Financial Services and Markets Act 2000 ('FSMA') on the communication of invitations or inducements to engage in investment activity on the ground that it is only being made to or directed at persons who fall within the exemptions contained in Articles 19(1) and 49(2) respectively of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') and persons who are otherwise permitted by law to receive it (together 'relevant persons'). This Presentation must not be acted on or relied on by persons who are not otherwise permitted by law to receive it (together 'relevant persons'). Any recipient of this Presentation who is not a relevant person should immediately return this Presentation to the Company, not attend this Presentation and take no other action. The distribution of this Presentation in any other jurisdictions may be restricted by law and persons into whose possession this Presentation come should inform themselves about, and observe, and such restrictions. By attending this Presentation, you agree to be bound by the restrictions in this disclaimer. 3 | AGRITERRA LIMITED | APRIL 2013
OVERVIEW • AIM listed agricultural company in Africa with three key divisions: cattle ranching, cocoa trading and plantation development, maize farming & milling • Capitalising on the rapidly growing agricultural market in sub-Saharan Africa to become a leading food provider • Market capitalisation of $42 million underpinned by strong cash treasury: • US$28 million received 31 January 2013 from Marathon Oil for legacy oil assets in Ethiopia (+ an additional $10 million on commercial discovery) • Further $17.7 million due in compensation for legacy work undertaken in South Sudan • Highly experienced board with considerable knowledge in agriculture and logistics within sub-Saharan Africa 4 | AGRITERRA LIMITED | APRIL 2013
KEY DATA 10.08% 4.98% 3.77% Market AIM 3.77% 3.28% Ticker AGTA 77.39% Share Price 2.5p Shares in Issue 1,059,716,239 Beyond Africa Fund Limited Libra Fund LP Gartmore Investment Limited Oppenheimer Funds Inc Market capitalisation £26.5 million Directors Others NOMAD and Joint Broker Cantor Fitzgerald Europe Joint Broker MC Peat & Co. Auditors Baker Tilly Lawyers Salans 5 | AGRITERRA LIMITED | APRIL 2013
AFRICA IN NUMBERS US$85 US$2 5.5% 7 54 billion funding for trillion: Africa’s African infrastructure in Africa’s share of African 2010 sovereign collective global FDI states countries GDP (more projects among the than India) 35 African countries 10 fastest growing ahead of China on the EIU’s Democracy Index 3 of the top 5 economies 20% in the 1 fastest growing compound 35 African countries world investors into growth in billion 2010-15 new projects in FDI ahead of Russia on people Transparency Africa are projects International’s African 2007-11 Corruption Perception Index 6 | AGRITERRA LIMITED | APRIL 2013
THE AFRICAN GROWTH STORY 7 | AGRITERRA LIMITED | APRIL 2013
GROUP PRODUCT RANGE Mavonde and Cocoa buying and Maize farming, buying and Dombe ranches trading processing in Chimoio Vanduzi feedlot, abattoir Cocoa plantation Maize farming and processing and butchers development 8 | AGRITERRA LIMITED | APRIL 2013
MOZBIFE • Vertically integrated cattle ranching, feedlot and abattoir operations in Mozambique • Expansion into animal feed plant to supply own herd, local demand and export market • Current herd exceeding 5,450 head over 21,000 hectares with significant room for further expansion • Capitalising on the growing demand for beef in sub-Saharan Africa – Mozambique currently imports over 90% of its beef • Well positioned to service high demand international export markets • Targeting a total herd of 10,000 by 2015 9 | AGRITERRA LIMITED | APRIL 2013
MAVONDE STUD RANCH • 2,350 hectare Mavonde Stud Ranch stocked with ~1,000 Beefmaster cattle – prized for their top weight gaining ability and adaptability to hot climates • Breeding herd has achieved consistent pregnancy rates of over 80%, and the herd is further supplemented with additional Beefmasters purchased in South Africa • 48 billion litre dam completed with capacity to irrigate in excess of 4,000 hectares • With full irrigation, the head to hectare ratio at Mavonde will be able to be increased from 1.5 to 6 head per hectare 10 | AGRITERRA LIMITED | APRIL 2013
DOMBE RANCH • 15,000 hectare Dombe Ranch located in Central Mozambique • Investment currently focussed on infrastructure, i.e. construction of paddocks, roads, fencing, irrigation and staff head-quarters • Beefmaster breeding herd augmented with native cattle, such as Brahman – cross-breeding programme also create bloodline with good meat yields and high disease resistance • Current herd at Dombe of approximately 2,500 • DUAT granted from Mozambican Government extending lease until 2061 11 | AGRITERRA LIMITED | APRIL 2013
VANDUZI FEEDLOT • 20 pen line feedlot completed with capacity of up to 3,000 head • Slaughter dress out weights have been between 51% and 56% over three month period • Sales of 240 per month at an average price of US$1,150 per carcass has been achieved to date • Includes 1,050 hectares of land for crop plantation to produce feed for the feeding pens • Synergies with other Agriterra companies – bran by-product from nearby DECA maize processing facility is in part used as a feed supplement for the feedlot 12 | AGRITERRA LIMITED | APRIL 2013
ABATTOIR & RETAIL UNITS • 4,000 head per month capacity abattoir commenced operations in December 2012 • Throughput augmented using local steers from the community • Initial retail unit in Chimoio opened December 2012 and experiencing strong sales of $1,000 to $1,500 per day and increasing • Second retail unit in Tete opened February 2013 • Abattoir and retail units enable the group to increase margins achieved on beef operations, maximising the benefits from a full value chain and complete “field to fork” strategy 13 | AGRITERRA LIMITED | APRIL 2013
FRUIT PLANTATION • Diversification of product range through acquisition of 2,500 hectare Irmaos Ranch and Balasson Farm – encompasses a producing banana plantation, macadamia orchard and land capacity for cattle • 50 acre banana plantation producing initial weekly yields of approximately 7 tonnes – production anticipated to increase significantly with development of plantation • Macadamia orchard planted – commercial production targeted within 24 months • Significant expansion of banana plantations, macadamia orchard, and cattle pasture planned to maximise revenue generation • Farm located 25km north of Mavonde Stud Ranch and irrigated by bordering Nyadzonya river 14 | AGRITERRA LIMITED | APRIL 2013
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