Sino Agro Food — Investor Presentation (April 2014)
28 slides from Sino Agro Food's investor presentation, Apr 29, 2014
Slide 1: Sino Agro Food Company Presentation Q2 2014
_— Sino Agro Food Sino Agro Food Company Presentation Q2 2014
Slide 2: Agenda
2. Company Overview jl 3. Financial Review a 4. Industry Overview i \ Appendix
Slide 3: Company overview
Company overview Vertically integrated seafood and beef producer in China Development, production and distribution of high quality seafood and beef Operates in high growth food segments seafood & beef due to China's rising middle class and the urbanized population’s demand for higher value and quali
Slide 4: History
History * Founded by Mr. Solomon Lee 2006 in Guangzhou, China 5-year plan initiated in 2010 focussing on recirculating aquaculture and beef cattle production * SIAF’s main role has shifted from an agribusiness technology and service provider to a producer and marketer of food products SS T_T) 2006 2
Slide 5: Sideways shareprice development during 2013
Sideways shareprice development during 2013 # million Share price (USS) shares traded 63 600 Free fioat mAvanza Pension 0.58 5.00 = Nordnet Pension 083 4,00 = Solomon Lee 0.48 3.00 = Nils-Erik Sandberg = Daniel Ritchey 0,43 2.00 = Anthony Soh 0.38 vcs olla dll t r Apr!3 Jun-13 AUg-13 Oct13 Decstd_Fe
Slide 6: Aquaculture operations
Aquaculture operations SIAF’s largest business division eae oe Rearing and distribution of aquatics including fish and prawns e Development of Recirculating Aquaculture System (RAS) farms — — together with local Chinese investors ud Fish f SIAF is the world’s largest operator and developer of RAS aq
Slide 7: Selection of SIAF's APRAS aquatic farms
Selection of SIAF’s APRAS aquatic farms Grow-out tanks, Fish Farm 1 (FF1) ps Grow-out tanks, Prawn Farm 1 Hatchery and Nursery grow-out, Prawn Farm 2 gino Agro Food
Slide 8: Cattle operations
Cattle operations Rearing of beef cattle, slaughter and meat processing mainly Qinghai province Vertically integrated from fertilizer and feedstock to value-added meat products Operating high-yield cattle operations in a rural region with outdated agriculture practices Livestock feed Beef cattle in
Slide 9: Cattle operations in Qinghai province
Cattle operations in Qinghai province Beef Cattle in SJAP's cattle houses Slaughter at SJAP slaughter and meat processing facility ‘Sino Agro Food
Slide 10: Financial highlights
Financial highlights S-year plan focusing on cattle and aquaculture as mmReverue mMMEBITDA EBITDA Margin 25 261 70% 62% 36%, 1440 18 10 718 2009 2010 201120122013, 2006 2007 200820102011, 2012__2013 Net Tangible Assets Ca Expenditure mmmCapex. —Capex / Sales 278 ms * 234% 141% 147% 36 37% 10/45 S| e
Slide 11: 1. SIAF at a glance 2. Corporate Strategy
1. SIAF at a glance 4 2. Corporate Strategy : 3. Financial Review ald 4. Industry Overview a 7/7 Appendix
Slide 12: Vertical integration in the food value chain
Vertical integration in the food value chain SIAF is vertically integrated from feed and breeding stock production to wholesale distribution of processed food products. Improved quality, product yield and margins Key to maintaining high food safety and quality assurance in an otherwise low-quality e
Slide 13: Partnering with Chinese joint venture investors in agribusiness projects
Partnering with Chinese joint venture investors in agribusiness projects Agribusiness projects are executed with Joint Venture Partners through Sino Foreign Joint Venture (SFUV) companies together with targeted local and regional Chinese investors The Chinese investor is responsible for procuring la
Slide 14: Corporate Strategy
1. SIAF at a glance 2. Corporate Strategy
Slide 15: Industry Overview
Industry Overview Economic outlook in China Agriculture in China® The market for aquatic and aquaculture in China The market for beef and meat in China “The OECD expects that China's real GDP will grow by 8.9% in 20140 “The strong growth in China has delivered major improvements in living standards
Slide 16: Economic Outlook in China
@ Economic Outlook in China China's real GDP growth estimated to 8.9% in 2014 with growth during next 10Y forecasted to average 8%") * China's economy is at present second only to that ofthe United States, having overtaken Japan’s role as number two in 2010 ~ China's real GDP estimated to grow by 8.
Slide 17: Agriculture in China (1/2)
@ Agriculture in China (1/2) Government support to the agricultural sector indicates that policymakers are placing a renewed emphasis on the rural economy ‘Agriculture in Chinese economy “Chnaisthe wo’ largest agicuturl economy, itis th leading producer and consumer of many ‘grout commodties avon ae
Slide 18: Agriculture in China (2/2)
@ Agriculture in China (2/2) Higher incomes and urbanisation are leading to changing food preferences, including the demand for better quality and safer foods Expenditure on food "Food isthe largest clas of household expenditure forall Chinese income groups + Uren resents spend substantaly more on f
Slide 19: The Market for Aquatic and Aquaculture in China
@ The Market for Aquatic and Aquaculture in China * China is the world largest aquaculture producer with production accounting for ~70% of world total China has the wor’ agest aquate production ands marketshare has sen from 7% in 1961 toasty 20100" Aquaculture ‘ater Chins opened up othe ouside word
Slide 20: The Market for Meat and Beef in China
@ The Market for Meat and Beef in China China is the world’s largest producer and consumer of meat including pork, poultry and beef with a 27% market share Chinas te wort’ largest producer and consumer of mest cucing pork, poultry and bast wth 3.27% marketshare © 2011 at production aountes to 9 mili
Slide 21: Financial Review
1. SIAF at a glance 2. Corporate Strategy 3. Industry Overview
Slide 22: Income statement
Income statement Income statement * Significant revenue growth with maintained Us$m 20112012 2013 profitability Sales 51,9 138,6 261,4 -Rising COGS, increased production capacity COGS: (26,4) __ (68,2) __(158,6) and focus on high-growth food niche Grossiprond 25) an 0 02,6) segments SG&A (4,4) (6,6)
Slide 23: Balance sheet
Balance sheet Balance sheet * Prudent financing policy with very limited ussm 2011 2012-2013 i Current assets financial leverage ‘Cash and cash equivalents 1 8 1 - Equity ratio of 90% Inventories 4 - & Deposits and prepaid expenses 15 47 2 -ND/ EBITDA of 0,05x Accounts receivable 28 53 a2 Other curr
Slide 24: Cash flow statement
Cash flow statement Statement of cash flows * Increased goods production has improved uUssm 201120122013 operating cash flow generation very significantly Net Income at 63 o4 : Non-cash adjustments 2 3 3 since 2011 Operating CF before ANWC. 23 66 7 ANWG a2) ) . Operating CF 5 “484 * Operating cash f
Slide 25: Appendix
= 4 1. SIAF at a glance dee: ince Ow em 2 me’ paki et 3. ny Overview = ALGER 4. Financial Review oN ie = Appendix
Slide 26: Corporate governance
Corporate governance * Founder, CEO and chairman of the board, Solomon Lee °SEC reporting since 2011 *Contemplated NASDAQ listing with secondary listing on NASDAQ OMX Stockholm -Swedish investment group network with over 300 private and 20 corporate members » Sponsored private placements and ensuing
Slide 27: Board of directors and management
Board of directors and management Board of directors Solomon Lee George Yap Charman founder and CEO Independent rect, ‘leeaian otzen Chairet Adu Commitee "TBA Major in Accounting and Econemies rom Monach Unversity, Ausraia +48 years of business and project devoioprrert experence « Inlved in Buldng P
Slide 28: Q&A